3.3.
Competitiveness Strategy
1 of 1
http://www.microlinks.org/print/6310
Published on USAID Microlinks (http://www.microlinks.org)
Home > 3.3. Competitiveness Strategy
3.3. Competitiveness Strategy
Introduction
A competitiveness strategy is a plan for moving the industry toward sustained growth. It represents a vision for how firms might collaborate to achieve growth,
rather than seeing one another simply as competitors. When designing a competitiveness strategy, practitioners need to involve stakeholders at all levels of a value
chain in developing 1) an end-market competitiveness plan that determines the industrys competitive advantage, 2) a commercial upgrading plan, and 3) a plan for
sustaining competitiveness. These elements rely on both information from the value chain analysis and active involvement by the private sector to create a focused
approach to improving and sustaining industry competitiveness.
Review basic information on competiveness strategy.
Developing an Industry Competitiveness Strategy: Tools and Examples
Once development professionals have selected and analyzed an industry, there is a broad range of tools available for them to use in developing a value chain
competitiveness strategy. These tools help practitioners, stakeholders and strategy developers identify the industrys competitive advantage, develop a commercial
upgrading strategy to make it more competitive and create a process to sustain its competitiveness. See a list of tools and project examples.
Recommended Good Practices and Lessons from the Field
Buy-in by stakeholders throughout the chain is criticala lack of ownership can sabotage the best of intentions and strategies.
Follow-up support by development partners, lead firms, government and/or others (e.g., local NGOs, trade associations, etc.) is critical to sustain momentum.
Look to the end market for the appropriate international standardsHACCP, ISO 9000, etc.to be included in microenterprise development program designs.
Use the adoption of product standards to build partnerships between producers, buyers and input suppliers.
Engage buyers and input suppliers in providing producers with embedded services to help them reduce the time and costs of upgrading.
Improve communications among MSEs to foster the adoption of new technologies and improved production processes by example.
Intermediary agents / traders can play a vital role in identifying and establishing relations with international buyers and in managing logistics.
Readily available, consistent access to supplies, finance and affordable services for product development and to information on the requirements of the
market can promote growth at many levels of a value chain.
A secure political environment encourages legitimate business, competitiveness and regional and international trade.
Export market buyer interest is closely tied to the ability of producers to meet three important requirements: quality, quantity and reliability.
If there is not enough inter-firm cooperation to develop a common vision, a focus on short-term results around quick win-win activities can create positive
reinforcement for collaboration.
It is critically important that industry leaders be able to anticipate and respond to changing market conditions quickly, efficiently and effectively.
Resources
Competitive Strategy: Techniques for Analyzing Industries and Competitors, Porter, Michael; The Free Press; 1989.
Learning from Global Buyers, Schmitz, Hubert; Peter Knorringa, IDS Working Paper #100; 1999.
Conversations, Steen, Cynthia, COP, EDEM Project.
Resources
Competitive Strategy: Techniques for Analyzing Industries and Competitors, Porter, Michael; The Free Press; 1989.
Learning from Global Buyers, Schmitz, Hubert; Peter Knorringa, IDS Working Paper #100; 1999.
Conversations, Steen, Cynthia, COP, EDEM Project.
COMMENTS (0)
5/27/2014 12:49 PM
