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Since the classical economics, the model of competitive advantage at different levels (national, industry, firm) has been considered attentively by experts in economics and management. In recent years, one pivotal issue in the field of management has been the identification of competitive advantage sources and the breakthrough strategies for its preservation and development. The main purpose of this article is to explain one of the popular theories concerning the competitive advantage model, that is Porter’s model, to show whether it is applicable in a country like Iran, which possesses a highly dominant government-based economy, or not. Besides, if it requires any modification in its pattern, what form of modification should it comprise? In terms of methodology, thus, this may be deemed an applied developmental research. Primary data targeted was obtained by means of a quantitative survey using a questionnaire technique of data collection. The questionnaire survey took place in the period from 10/2010 to 6/2011 and a total of 109 firms (undertaking their activities in the territory of the Iran) were involved. The results of the study show that Porter’s model in both the upstream and the downstream forms must become developed and rectified. Ultimately, the most advantageous shape of the model for detecting the sources of competitive advantage in bottled drinking water industry is offered

Porter’s Competitive Advantage Model and its Application in Bottled Drinking Water in Iran