Porter’s factor conditions explaining Switzerland’s victory of America’s Cup sailing competition in 2005
Porter’s factor conditions for countries’ competitiveness are demand condition, related industries, firm’s strategy, and the level of rivalry. Australia has been challenged for the trophy and there was an increased demand for the country to produce results in the game. The country through several failures to lift the trophy had learned its weaknesses, and in 2005, it went to the games with polished strategies to face their rivals. This led to its victory.
Porter’s factor conditions in choosing locations for manufacturing
The location of a business affects the level of its competitiveness. When choosing a location, business people should analyze the level of demand for their products. It should be located in an area that has a high demand for its products.
Secondly, the level of rivalry and the influence of related industries influence the location of a business. Generally, a business should ensure that it is established in an area with minimal rivalry or an area in which it can face external rivalry. The existence of related businesses like suppliers also affects the location. Closeness to suppliers and distribution channels is required when establishing a business.