Part one of term paper
Competitive advantage is not created within a single firm alone. Efficiency in internal operations is essential but not necessarily sufficient to compete globally. Factors external to the business are increasingly important. Each firm is inherently part of a "cluster" of activities made up of firms along the value chain as well as related ...

Part two of term paper
... A cluster may include industries that share similar workforce, input, or infrastructure needs. In addition, a cluster may have more to do with the output of the “cluster” industries. Clusters may also be defined by complementary or interdependent industries: one may produce what another needs. It has been demonstrated throughout the world that strong clusters ensure sustainable competitive advantage and that this strength has managed to help countries improve drastically on their global com ...