World Academy of Science, Engineering and Technology
Published July 5, 2015 | Version 10002168
Journal article Open

Competitive Advantage Challenges Affecting the Apparel Manufacturing Industry of South Africa (AMISA): Application of Porter's Factor Conditions

Description

This paper applied factor conditions from Porter's Diamond Model (1990) to understand the various challenges facing the AMISA. Factor conditions highlighted in Porter's model are grouped into two groups namely, basic and advance factors. Two AMISA associations representing over 10 000 employees were interviewed. The largest Clothing, Textiles and Leather (CTL) apparel retail group was also interviewed with a government department implementing the industrialization policy were interviewed. The paper points out that AMISA have basic factor conditions necessary for competitive advantage in the apparel industries. However advance factor creation has proven to be a challenge for AMISA, Higher Education Institutions (HEIs) and government. Poor infrastructural maintenance has contributed to high manufacturing costs and poor quick response technologies. The use of Porter's Factor Conditions as a tool to analyze the sector's competitive advantage challenges and opportunities has increased knowledge regarding factors that limit the AMISA's competitiveness. It is therefore argued that other studies on Porter's Diamond model factors like Demand conditions, Firm strategy, structure and rivalry and Related and supporting industries can be used to analyze the situation of the AMISA for the purposes of improving competitive advantage.

Files

10002168.pdf

Files (384.3 kB)

Name Size Download all
md5:020fc56a14bde53d6bfafebb60b8e619
384.3 kB Preview Download

Additional details

References

  • African trade, infrastructure key: Zuma. (Online), Available from: http://www.southafrica.info/africa/zuma-300112.htm#ixzz1nQrQcy00. (Accessed: 20/04/2013).
  • J. Barnes, A strategic assessment of the South African clothing sector. Presented at the Presidency/ComMark Sector Workshop on the 26th of November 2004. 2005.
  • L. Biyase, The Future Lies in Africa, Say SA's Builders. Sunday Time. 2011. Nov. 13.p:5
  • R. Burger, & R. Jafta, Affirmative action in South Africa: an empirical assessment of the impact on labour market outcomes. Centre for research on Inequality, human security and ethnicity. 2010.
  • Climate change: Africa's Catch – 22. Sunday Times, 2011. November. 13. p. 9.
  • B. Coka, 2013. Productivity and Transport. Sunday Times, October. 27:19.
  • S. Das, Quality Issues Related t Apparel Merchandising in South Africa. M.Sc. Thesis, Port Elizabeth, Nelson Mandela Metropolitan University. 2011.
  • K. Davie, Short Back and Sides, Please. Mail & guardian. 2012. Feb. 24. p.7.
  • Deliotte. Enhancing Manufacturing Competitive in South Africa. Deloitte Touche Tohmatsu Limited (DTTL) PTY LTD. 2013. [10] L. Donnelly, Patel Cracks the Whip. Mail & Guardian, 2012. February 17-23. p.2. [11] L. Donnelly, Call for Industrial Sector to Save Energy. Mail & Guardian, 2013. February 22-28.p.7. [12] FDI into Africa on the increase: survey (Online), Available from: http://www.southafrica.info/africa/fdi-250511b.htm#.VW_pi8-qqko. (Accessed: 20/09/2014). 2011. [13] Ibrahim Index of African Governance. Mail & guardian, 2011. October. 14-20.p.27. [14] B. Jin, "The Diamond Approach to the Competitiveness of Korea's Apparel Industry." Journal of Fashion Marketing and Management, 2006. 10 (2). pp.195-208. [15] B. Jin, & H. Moon, The Diamond Approach to the Competitiveness of Korea's Apparel Industry: Porter and Beyond. Journal of Fashion Marketing and Management, 2006. 10 (2). pp. 195-208. [16] R. Kaplinsky, & M. Morris, Trade Policy Reform and Competitive Response in Kwa-Zulu Natal Province, South Africa. Elsevier science LTD, 1999. 27 (4).pp. 717-737. [17] M. Knappe, Exporting Textiles & Clothing: What's the Cost for LDCs? International trade centre, International trade forum. 2005. 1. [18] E. K. Ko, D. Kincade, & J. R. Brown, Impact of Business Type upon the Adoption of Quick Response Technologies. International Journal of Operations & Production management, 2000. 20(9).pp.1093-1111. [19] D. Macfarlane, Education's political nettles. Mail & guardian, November, 2011. 18-24.p.43. [20] M. Mann, & S. Byun, Accessing Opportunities in Apparel Retail Sectors in India: Porter's Diamond approach. Journal of Fashion Marketing and Management, 2011. 15 (2).pp. 194-210. [21] T. Mashego, Malema is "Sinking FDI Ship". Sunday Times, October. 2011. 16.p.3. [22] S. Mbatha, Development of Competitive Advantage for Apparel Manufacturing Industries of South Africa. M-Tech Fashion. Dissertation. Pretoria. Tshwane University of Technology. 2014. [23] M. Mbeki, Architects of Poverty. Picador Africa Publishers. 2009. [24] A. Mcree, & N.L. Cassill, Sub-Saharan Africa: Potential production source for Textiles and Apparel? Journal of Textile and Apparel, Technology and Management. 2002. 2(3). [25] O. Miruka, No need to Throw in the Towel yet: The Case of the Revival of South African Textiles and Clothing Industry. Mediterranean Journal of Social sciences, 2014. 5(7).pp. 11-24. [26] Mo Ibrahim Foundation. 2011 Ibrahim Index of African Governance Summary. 2011. [27] P. Mohr, L. Fourie & Associates. Economics for South African Students, 4th Ed. Pretoria: Van Schaik Publishers. 2008. [28] M. Morris, & J. Barnes, The Challenges to Reversing the Decline of the Apparel Sector in South Africa. International Conference on Manufacturing-Led Growth for Employment and Equality in South Africa. Johannesburg, South Africa. 2014. [29] N. Nattrass, & J. Seekings, Job destruction in the South African Clothing industry: How an Unholy Alliance of Organised Labour, The State and Some Firms is Undermining Labour-Intensive Growth. Centre for social science research. 2013. P.323. [30] S. Ndlangisa, Economically Active Population Breakdown by Race and Gender (2010). City Press. August. 2011. 7.p.10. [31] S. Nip, Export Marketing Trend for Textile and Apparel Industry in South Africa. MBA Thesis. University of KwaZulu Natal: UKZN Press. 2004. [32] T. Oxford, Freighting South Africa's Future. Mail & Guardian, October. 2013. 4-10.p. 6. [33] M.E. Porter, Competitive Strategy. New York: The Free Press. 1990. [34] M.E. Porter, & C. H. Ketels, UK Competitiveness: Moving to the Next Stage. Economic & Social Research Council in May 2003. 2003. [35] J. Sey, Changes Could Smooth the Way. Mail & Guardian, October 2013. 4-10.p.1. [36] South Africa. Department of Trade and Industry. Industrial Policy Action Plan 2010/11 – 2013/14. Pretoria: Government Printer. 2010. [37] South Africa. Department of Trade and Industry. Industrial Policy Action Plan 2014/15 – 2016/17. Pretoria: Government Printer. 2014. [38] The Textile and Clothing Core Team. Textiles and Clothing Sector. 2005. [39] E. Van Der Merwe, Telkom mired in static. Mail & Guardian, October 2011. 14-20.p.16. [40] World Economic Forum. The Africa Competitiveness Report. (Online). http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Af rica%20Competitiveness%20Report%202009.pdf (Accessed: 26/03/2012). 2009. [41] World Economic Forum. The Africa Competitiveness Report. (Online). http://www.afdb.org/fileadmin/uploads/afdb/Documents/Publications/Af rica%20Competitiveness%20Report%202011.pdf (Accessed: 26/03/2012). 2011. [42] World Economic Forum. The Africa Competitiveness Report. (Online). http://www3.weforum.org/docs/WEF_Africa_Competitiveness_Report_ 2013.pdf (Accessed: 20/11/2013). 2013. [43] C. Yelland, Gigaba's Power-Station Stalemate. Mail & Guardian, July 2013. 12-18.p.16. [44] W. Yu, What Makes a Fashion Design Curriculum Successful? Institute of textiles and clothing Hong Kong Polytechnic University. 2013. pp.1- 11.