Analyse the case study with reference to Michael Porter’s Theory :: Business and Management Studies

Analyse the case study with reference to Michael Porter’s Theory of Competitive Advantage and answer the following question: Does America have competitive advantage in the textile and garment industry? Analyse the case study with reference to Michael Porter’s Theory of Competitive Advantage and answer the following question: Does America have competitive advantage in the textile and garment industry? You answer must include the following elements: 1. A clear outline of Porter’s theory with supporting references. 20% 2. An analysis of the case study with reference to the 4 main elements of Porter’s Diamond. (N.B. You will not be able to comment on company structure, as the case study does not include information on this. You should, however, refer to factor conditions, demand conditions, firm rivalry and related and supporting industries.) 40% 3. An analysis of the case study with reference to Porter’s secondary points of chance and government actions. 20% 4. Your conclusion. 10 % The remaining 10 % will be for grammar, style, clarity, using the correct system of referencing (the Harvard System) etc. Literature: Michael E. Porter. The Competitive Advantage of Nations. Does America have competitive advantage in the textile and garment industry? For a country to have a competitive advantage, it is necessary to understand Michael Porter’s Theory of National Competitive Advantage. Michael Porter introduced a model that allows analysing why some nations are more competitive than others are, and why some industries within nations are more competitive than others are, in his book The Competitive Advantage of Nations. This model of determining factors of national advantage has become known as Porters Diamond. It suggests that the national home base of an organization plays an important role in shaping the extent to which it is likely to achieve advantage on a global scale. This home base provides basic factors, which support or hinder organizations from building advantages in global competition. Porter distinguishes four determinants: Factor Conditions The situation in a country regarding production factors, like skilled labour, infrastructure, etc., which are relevant for competition in particular industries. These factors can be grouped into human resources (qualification level, cost of labour, commitment etc.), material resources (natural resources, vegetation, space etc.), knowledge resources, capital resources, and infrastructure. They also include factors like quality of research on universities, deregulation of labor markets, or liquidity of national stock markets. These national factors often provide initial advantages, which are subsequently built upon. Each country has its own particular set of factor conditions; hence, in each country will develop those industries for which the particular set of factor conditions is