Professional Documents
Culture Documents
The approach looks at clusters of industries, where the competitiveness of one company is
related to the performance of other companies and other factors tied together in the value-added
chain, in customer-client relation, or in a local or regional contexts.[2] The Porter analysis was
made in two steps.[2] First, clusters of successful industries have been mapped in 10 important
trading nations.[2] In the second, the history of competition in particular industries is examined to
clarify the dynamic process by which competitive advantage was created.[2] The second step in
Porter's analysis deals with the dynamic process by which competitive advantage is created.
[2]
The basic method in these studies is historical analysis.[2]The phenomena that are analysed are
classified into six broad factors incorporated into the Porter diamond, which has become a key
tool for the analysis of competitiveness: