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Business enabling environment, with regards to infrastructure, policy and the socio-economic environment
Stakeholder commitment
Market growth, and market opportunities
An industry's growth potential is often the most important sub-criteria when assessing competitiveness potential because without growth competitiveness cannot be
sustained.
Similarly, when examining a value chain's impact potential, some sub-criteria to assess include the following:
* Employment
Income generation
MSE participation
MSE growth
Livelihood and security
The sub-criteria for cross-cutting issues will depend on the issues prioritized and the country context. Industry leadership includes the following:
Number of lead firms
Collaboration between lead firms
Willingness of lead firms to invest in increased competitiveness
Lead firms' commitment to MSE participation in the value chain
Data Analysis
Tables can be constructed to organize and rate the sub-criteria.
In addition, a number of tools can be used to assess an industry's competitiveness; each has its own strengths and weaknesses and varies in its complexity. View a
table summarizing and comparing the competitiveness assessment tools most often used to assess or determine proxies for an industry's competitiveness potential.
Two commonly used tools are provided below:
Porter's Five Forces
Boston Matrix
After the sub-criteria are assessed for each value chain, a ranking matrix is generally used to compile the information gathered, analyze the implications and
prioritize one or more value chains. A ranking matrix may use a low-medium-high scoring system for sub-criteria, or numeric scores may be assigned. Weights may
also be applied to distinguish among multiple criteria that are not all of equal importance. A cautionary note is that the matrix often suggests a level of quantitative
rigor for a decision-making process that is largely qualitative. See examples of ranking matrices.
Resources
Additional Value Chain Selection Resources
Footnotes
1. AMAP Value Chain Development in Conflict-Affected Environments Project
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5/27/2014 12:47 PM