1. Demand Conditions: Market demand of a product in local market and foreign market.If the demand is more in the local market the company must focus on that product to develop a sustainable competitive advantage
2. Factor Conditions: A company has both natural and acquired resources.It can create its own factors like skilled labor,strong technological base,etc in order to develop its core competencies
3. Related and Supported Industries : If the local related industris are competitive it will force the company to innovate and be competitive and rapidly respond to changes in the external environment.
4. Firm's Strategy,Structure and Rivalry :
The culture of a country have an effect on the firm's strategy and structure.For instance certain countries have more family owned businesses than others which are more hierarchial.
Rivalry might help a company from being competitive.It helps a company to continuously compete with the others and continuously improve their value chain and thrive for innovation in products and processes.