Vorarlberg is marked by the legacy of the traditional textile and clothing industry. In the last decades the industry in the region has faced increasingly fierce competition especially from Asian rivals which depleted the number of companies in the industry segment. Nevertheless, the regional industry has been more resilient than industries in other European regions. This study examines the competitiveness of the location for the textile and clothing industry using the diamond framework by Porter (1990). Furthermore, viable strategies from the regional firms were analyzed.
Table of Contents
1. Purpose of the Research
1.1 Introduction
1.2 Problem
1.3 Purpose
2. Theoretical Background
2.1 Defining competitiveness
2.2 Level of analysis
2.3 Concepts of competitiveness assessment
2.4 Choosing a suitable model
2.5 Revealed Comparative Advantage
2.6 Porter´s Diamond Model
2.6.1 Determinants and Variables
2.6.2 Relationship among the determinants
2.6.3 The determinants as a system
2.7 Competitive Strategy
2.7.1 The competitive environment
2.7.2 Generic Strategies
3. Methodology
3.1 Procedure
3.2 Theoretical framework
3.3 Propositions
3.4 Case study approach
3.5 Organizational framework
3.6 Data Collection
3.6.1 Competitive Assessment
3.6.2 Strategy Assessment
3.7 Data analysis
3.8 Sampling
3.9 Reliability and Validity
4. Results and Analysis
4.1 Diamond model
4.1.1 Factor Conditions
4.1.2 Related and Supporting Industry
4.1.3 Demand Conditions
4.1.4 Firm strategy, structure and rivalry
4.1.5 Government
4.2 Revealed comparative advantage
4.3 Strategy
5. Conclusion
Research Objectives and Themes
The primary research objective of this thesis is to perform a competitive assessment of the Vorarlberg region as a location for the textile and clothing industry. The study investigates the sources of competitiveness that enable the regional industry to succeed against intense international competition, while simultaneously identifying suitable strategic alignments for firms operating within this sector.
- Application of Porter’s Diamond Model to the Vorarlberg textile and clothing industry.
- Use of the Revealed Comparative Advantage (RCA) Index for quantitative validation.
- Analysis of the strategic alignment of regional firms using generic strategies.
- Evaluation of factor conditions, demand conditions, and related/supporting industries.
Excerpt from the Book
2.1 Defining competitiveness
Despite the fact that competitiveness has been addressed from numerous different perspectives (Kennedy, Harrison, Kalaitzandonakes, Peterson, & Rindfuss, 1997) no single definition has gained universal acceptance either among economist or among management theorists (Kancs & Kielyte, 2001). Frequently dismissed as irrelevant or unimportant by economists like Krugman (1994) who once called it “ a dangerous obsession” and, on the other hand, highlighted as the key to superior performance by companies, industries and economies (Porter M. , 1990) the concept of competitiveness remains an elusive one (Neary, 2006). The widespread use in academia and industry cannot hide the fact that researchers have failed to come up with a consensus concerning the meaning of competitiveness (Flanagan, Lu, Shen, & Jewell, 2007).
Nevertheless, competitiveness has become a fundamental force in the economic perspective of today. Across countries and regions there is an ambition to improve the competitiveness of nations, industry sectors and individual units (Ramoniene & Lanskoronskis, 2011) . In the literature the term “competitiveness” conveys a different meaning being applied to an individual company, sector or economic activity within a region or country (Balkyte & Tvaronavičiene, 2010).
On a company level, competitiveness is described as the ability to produce the right goods and services of the right quality, at the right time, at the right price. In essence, this means that customer needs are met more effectively and efficiently in one company than do other companies (Edmonds, 2000). According to Porter (1990) competitive advantage is the ability of a company to make products that provide more value to the customer compared to rival products and furthermore lead to higher sales and profits for the company. In general, competitiveness can be seen as the ability of an organization to compete successfully with its commercial rivals (Law, 2009) or “the ability of a firm to design, produce and or market superior to those offered by competitors, considering the price and non-price qualities” following the definition of (D'Cruz & Rugman, 1992).
Summary of Chapters
1. Purpose of the Research: This chapter introduces the historical background of the textile industry in Vorarlberg, outlines the industrial challenges faced, and defines the research questions regarding regional competitiveness and strategic alignment.
2. Theoretical Background: This section reviews existing literature on competitiveness theories, specifically focusing on neo-classical economics, industrial organization, and the strategic management approach, justifying the use of Porter’s Diamond Model.
3. Methodology: This chapter details the research design, which uses an industry-level case study approach to examine regional competitiveness and firm-level strategic alignments, and explains the methods of data collection and analysis.
4. Results and Analysis: This section presents the empirical findings based on the Diamond Model and RCA index, providing a detailed assessment of the four determinants and analyzing the strategies employed by seven selected firms.
5. Conclusion: The final chapter summarizes the research findings, confirming that advanced factor conditions and legacy knowledge provide a significant competitive advantage to the region, and discusses the implications for the strategic orientation of local firms.
Keywords
Competitiveness, Vorarlberg, Textile Industry, Clothing Industry, Porter’s Diamond Model, Revealed Comparative Advantage, Strategic Alignment, Generic Strategies, Niche Market, Industry Cluster, Regional Competitiveness, Innovation, Factor Conditions, Case Study, Industrial Performance.
Frequently Asked Questions
What is the core focus of this bachelor thesis?
The thesis focuses on assessing the competitive advantage of the Vorarlberg region as a location for the textile and clothing industry by analyzing specific industrial and environmental factors.
What are the primary thematic areas covered?
The study covers the theoretical definition of competitiveness, the application of Porter's Diamond Model to a regional context, the use of the Revealed Comparative Advantage (RCA) index, and the assessment of corporate strategies within the regional textile sector.
What is the central research question?
The research primarily aims to determine how competitive Vorarlberg is as a location for textile companies and whether specific strategy orientations can explain the success of regional firms in this industry.
Which scientific methodology is employed?
The author employs a qualitative and quantitative industry-level case study approach, utilizing secondary data, statistics, and semi-structured interviews with managers from selected firms.
What does the main body of the work address?
The main body examines the five determinants of the diamond framework—factor conditions, demand conditions, related and supporting industries, firm strategy/structure/rivalry, and government—and assesses the specific business strategies of seven firms.
Which keywords characterize the work?
Key terms include competitiveness, Vorarlberg, textile industry, Porter’s Diamond Model, strategic alignment, and industry clusters.
How does the author define a "successful" firm for the study's sample?
A firm is considered successful if it reported positive annual earnings in 2010 and demonstrated higher profitability than the industry average, as verified by both financial records and regional experts.
What role do "chance events" play according to Porter's model used here?
Chance events, such as technological discontinuities or major shifts in global markets, are acknowledged as factors that can alter competitive positioning and trigger necessary innovation, though they remain outside the direct control of firms or governments.
How is "Revealed Comparative Advantage" (RCA) used in the analysis?
The RCA index is used as a quantitative empirical measure to identify the degree to which Vorarlberg specializes in the export of textile products compared to reference nations, providing a validity check for the qualitative Diamond Model findings.
- Quote paper
- Manuel Galehr (Author), 2012, Competitive assessment of Vorarlberg as a location for the textile and clothing industry, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/263435
