Competitive assessment of Vorarlberg as a location for the textile and clothing industry

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

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.