Porters Force for Competitive Advantage Essay Example | Topics and Well Written Essays - 3250 words - 7

Porters Force for Competitive Advantage - Essay Example A comparative analysis of the systems followed by businesses of various economies to gain edge is evaluated from Porter’s competitive advantage view. Â  The model’s approach to identify the cluster of small industries where their competence has a direct correlation with the performance of other businesses in the same economy, along with other factors, adds value chain to the process. The advantages can be from consumer-business relationship or local market context, giving it an edge over similar businesses in offshore markets. The various elements of the model is as in the figure below, that shows the business elements and suggests the underlying factors boosting the affectivity of the competence. Further, Rugman and Verbeke (1993) suggested that the factors affecting the competence are related with each other and existing market environment. The four distinct determinants of the model have great influence on the strengths of the business located therein. The vertical relationships of buyers’ intelligence and suppliers are correlated horizontally with technology, skills, distribution challenge etc. The use of the model in the process gives the overview of the industry in terms of competition in the industry. Pressman (1991) observed that the respective Government identifies these clusters to support and promote them as a source of economic growth. Factor Conditions: The position of a business as production capacity, skill manpower availability, infrastructure, legal frameworks etc aided by the government agencies determines the factor conditions. The conditions would determine the performance and ease of doing business in a particular economy.