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Abstract

Competitiveness is defined to include both comparative and competitive advantage. Three different methodologies are applied in the analysis of the flower industries of South Africa and Australia: "Determinants of competitive advantage" methodology of Michael Porter (1990) describes the factors influencing competitive advantage; "Revealed comparative advantage" states the relative importance of flower trade in each country; and the "Policy Analyses Matrix" calculates the comparative advantage of specific flower groups. Each method highlights different viewpoints and conclusions on international competitiveness. Based on the results of the three methodologies it is concluded that the South African flower industry is more competitive but also has a greater comparative advantage in the production of flowers than the Australian flower industry.

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