Michael Porter developed a model that helps to identify countries or geographical regions where the conditions that Porter identified in his model are supportive of its being competitive on a global basis in a specific industry.
As an example, France had historically been a world leader in wine; Italy had been a world leader in shoes, and India is currently a world leader in software development. Each countryâ€s leadership was or is presently due to strong supporting conditions in the four key factors that Porter identified as critical to regional competitive success (
Below is a brief description of Porterâ€s Model and the four factors essential for National Competitive Advantage:
National Competitive Advantage-Michael Porter recognized that some counties or regions can be and are world leaders in a particular product or service, by having a world competitive advantage. His model identifies four factors that, working together, can result in a regional or world competitive advantage: 1. FACTOR CONDITIONS (skilled labor, land, capital, technology, know-how and infrastructure); 2. Local DEMAND CONDITIONS (strong local demand with sophisticated and demanding customers); 3. RELATED AND SUPPORTING INDUSTRIES (the extent to which companies†domestic suppliers and other complementary industries are developed and helpful.); 4. RIVALRY, STRATEGY, AND STRUCTURE OF DOMESTIC COMPETITORS (refers to how challenging it is to survive domestic competition).
In the United States, Silicon Valley in Northern California has been competitive on a global basis for the development of many of todayâ€s advanced technologies. Apple, Google, Facebook, Intel, HP, and Oracle are a few of the many successful technology companies located in Silicon Valley.
Analyze for each of the four key factors or conditions (Factor Conditions; Local Demand Conditions; Related and Supporting Industries; and Rivalry, Strategy, and Structure of Domestic Competitors) that support Silicon Valley in the US as a global leader in technology development. Give specifics and examples for each of the four factors. The analysis should answer the question: ‘why has Silicon Valley in the U.S. been a dominant world leader in technology development?”
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