| Summary: | The research problem addressed in this study was to determine what the main factors are that contribute to the competitive advantage of the catalytic converter industry cluster in the Eastern Cape. To achieve this objective theoretical models of competitive advantage and literature of industry clustering were identified. For the models on competitive advantage, Porter’s diamond was used for national competitive advantage and Porter’s model on the competitive environment, which affects the competitive advantage of a region. Other theories on competitive advantage of cities and regions were identified, leading up to the theory on the cluster approach. The literature mentioned was broken down and analysed using literature, from knowledgeable people in the automotive industry in the Eastern Cape, identified during the study. A questionnaire was developed to test the degree to which the catalytic converter industry cluster in the Eastern Cape is in agreement with the literature study. The empirical study obtained a strong concurrence with the literature study on national competitive advantage and the theory of clusters. This resulted in a strategy for the catalytic converter industry cluster to sustain competitive advantage and remain globally competitive.
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