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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 country’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 Porter’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 today’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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