Industrial Districts: Torquay

Question 1

What are the 4 (+2) key determinants of cluster theory?

Answer 1

Factor conditions
home demand
related and supporting industries
industry strategy, structure and rivalry
\+ chance
\+ government

Question 2

Define factor conditions and apply to Torquay

Answer 2

Specialized labour pool, specialized infrastructure, and sometimes selective disadvantages that drive innovation
- specialized labour pool, specialized infrastructure

Question 3

Define home demand and apply to Torquay

Answer 3

demanding local customers who push companies to innovate, especially if their tastes or needs anticipate global or local demand

Question 4

Define related and supporting industries and apply to Torquay

Answer 4

internationally competitive local supplier industries who create business infrastructure and spur innovation and spin-off industries
- exp: torquay companies creating surfboards lead to a spinoff of other companies emphasizing wetsuits or swim trunks

Question 5

Define Industry strategy structure and rivalry and apply to Torquay

Answer 5

structure, and rivalry, intense local rivalry among local industries that is more motivating than foreign competition, and a local ‘culture’ that influences individual industries’ attitudes toward innovation and competition

Question 6

What is Torquay’s brands dominance of surf-wear cluster attributed to?

Answer 6

• local knowledge, inter-organisational relationships, local supply chains, and retail successes could be translated to the world surf-gear market
• aligning their products highly successful and marketable surfers
• differentiated their products on the basis of style and image as well as function
• surfing was alternative rather than mainstream, and rebellious: marketed products as cool
• Obsessive innovators

Question 7

How did Torquay’s surfing culture contribute to the evolution of the surf cluster/ID?

Answer 7

• top surfing spot in world
• both locals and experts judged and tried new products
• pro competitions were there

Question 8

competitive advantages of clusters

Answer 8

1. they can increase the productivity of businesses based in the cluster location. (surrounded by network for required goods, info, employees, tech, etc)
2. produce conditions that lead to greater product development and innovation (peer pressure, competition, easier to identify customer needs)
3. lead to the formation of new business that further extends the cycle of productivity and innovation