Porter’s Theory of Competitive Advantage focuses on a nation's global competitiveness in an industry being dependent on innovations (Saylor Academy, n.d). The theory highlights the importance of four specific determinants: factorial, demand, upstream/downstream industries, and domestic competition. The tourism industry may be used to explain growth/development in the Caribbean using Porter’s theory. It suggests that with favorable factors and the improvement of these factors by government interference, competitive advantage can be created. Beautiful beaches and varieties of wildlife are present across the region. This chance of geographical position allowed governments to develop the tourism industry and specialize in ecotourism. Tourism businesses have adopted effective strategies to differentiate their products and increase demand from consumers, achieving growth. This can be attributed to all determinants in Porter’s theory. The views of Porter, Best and Lewis share similarities when considering economic development. Both ideologies portrayed a need to increase domestic demand of products/services to force businesses to innovate/expand overseas. They agreed that this need to increase demand within the domestic market can be done through government policies. The main difference is that Porter’s theory aligns with a global competitiveness while Lewis’ views align with a country becoming self sufficient and developing their domestic market. Please reply constructively to this paragraph.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Porter’s Theory of Competitive Advantage focuses on a nation's global competitiveness in an industry being dependent on innovations (Saylor Academy, n.d). The theory highlights the importance of four specific determinants: factorial, demand, upstream/downstream industries, and domestic competition.

The tourism industry may be used to explain growth/development in the Caribbean using Porter’s theory. It suggests that with favorable factors and the improvement of these factors by government interference, competitive advantage can be created. Beautiful beaches and varieties of wildlife are present across the region. This chance of geographical position allowed governments to develop the tourism industry and specialize in ecotourism. Tourism businesses have adopted effective strategies to differentiate their products and increase demand from consumers, achieving growth. This can be attributed to all determinants in Porter’s theory.

The views of Porter, Best and Lewis share similarities when considering economic development. Both ideologies portrayed a need to increase domestic demand of products/services to force businesses to innovate/expand overseas. They agreed that this need to increase demand within the domestic market can be done through government policies. The main difference is that Porter’s theory aligns with a global competitiveness while Lewis’ views align with a country becoming self sufficient and developing their domestic market.

Please reply constructively to this paragraph.

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