Post on 24-Jun-2020
Honduran Apparel Manufacturers Association
National Value Added (In Millions of US$)
455 2541.1
Association
186 241.8 284.3390.1
455.2
400
600
30.9186
0
200
01989 1994 1995 1996 1997 1998 1999
30% 18% 37%Growth 502% 16.7% 18.9%
In five years Source: IDS
Value per Square meter of FabricPais 1999 Value/M2
Square Meters Value $$/M2Square Meters Value $$/M2Hong Kong 841 4256 5.06China 910 4307 4.73South America 157 730 4.65India 376 1525 4 06India 376 1525 4.06Guatemala 305 1233 4.04Korea 537 2103 3.92Thailand 386 1509 3.91Other CBI 87 334 3 84Other CBI 87 334 3.84Indonesia 441 1686 3.82Other Asean 531 2002 3.77Sri Lanka 337 1269 3.77Turkey 230 834 3 63Turkey 230 834 3.63Phillipines 506 1792 3.54Mexico 2307 7538 3.27Taiwan 637 1974 3.10Pakistan 237 733 3 09Pakistan 237 733 3.09Dominican Repub 858 2337 2.72Costa Rica 346 819 2.37Jamaica 148 345 2.33Honduras 943 2158 2 29Honduras 943 2158 2.29El Salvador 602 1329 2.21Bangladash 773 1676 2.17
Opportunity: Build Complex Exports Avoid Over-Relying on Basic FactorsRelying on Basic Factors
Sri Lanka Exports of Gems and Jewelry200
160
180jewellerydiamondsgems
100
120
140
60
80
100
20
40
Source: Sri Lanka Industry Statistics
01987 1988 1989 1990 1991 1992 1993 1994 1995 1996
STRATEGYProtectionQuality of firm level strategyReactive vs. ProactiveHi d l d
Company and strategiesThe quality of sustained commitment of capital
and resourcesIndustry cooperation
Hi-end vs. low-endPrice vs. DifferentiationDistribution channelsE-commerce
Industry cooperationThe level of domestic rivalryPossibility of new business formationThe nature of dialogue with laborFairness of local competition
Number of competing firmsCommodities vs. Specialized products
Fairness of local competitionParastatals and monopoliesLeadership characteristics
FactorsFactors DemandDemand
The ClusterThe ClusterGov't
Examples: Uganda Coffee, DR Cigars, Sri Lanka Rubber
Exports of Sri Lanka Rubber Products
120
140
100
60
80
40
0
20
Source: Sri Lanka National Statistics
01987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Rubber Rubber products
Edible FishFish and Fishmeal Exports for 1987, 1990, 1993 in $U.S.
Opportunity: Understand Competitive PositionEdible Fish
Japan ‘93Chile ‘93
Product Scope
Japan ‘87Norway ‘90-’93
Japan ‘90
Chile ‘90Perú ‘93 Fishmeal exports
DifferentiationLow cost Competitive Advantage
Standard Fishmeal Chile ‘87
Perú ‘87Perú ‘90
Fish exportsby country
While Peruvian manufacturers are very competitive within the fishmeal segment, other producers have increased total fish export volume by
DifferentiationLow cost Competitive Advantage
SOURCES: UNITED NATIONS TRADE STATISTICS; NATIONAL MARINE FISHERIES SERVICE; MANEDSSTATITIKK OVER UTENRIKSHANDELEN; MONITOR ANALYSIS
other producers have increased total fish export volume by migrating toward more edible fish production = $1 Billion in Total Fish Exports
CLUSTERStrategy, Strategy, StructureStructure& Rivalry& Rivalry
Gov't
FactorsFactors DemandDemand
Competitive and high quality supplier?Financial sector?Business services?Business services?Strong business associations?Strong ties with research institutions?Quality of private-public dialogueQuality of private-public dialogueQuality of education and training providers
Examples: Mongolian Cashmere, Leather, Sri Lanka Tea
The Borovetz DiamondI th h ?Is there a chance?
Strategy, Strategy, StructureStructure& Ri l& Ri l
Gov't
& Rivalry& Rivalry
Lack of understanding of competitive position
Vague Knowledge When and When Not to
Strong Paternalism
FactorsFactors DemandDemand
g gForward Integrate
Over-reliance on Snow and Landscape
Mixed Understanding of Customers
Defense of low price level
The ClusterThe Cluster
Small-Big Hostilityg yUnclear links to financeUnclear ownershipDubious relation with the government
Borovetz DEMAND
Strategy, Strategy, StructureStructure& Rivalry& Rivalry
Gov't+/- Undifferentiated local demand+ Large EU skier market+/- Many package ski tour operators
FactorsFactors
+/ Many package ski tour operators+ Many independent buyers
The ClusterThe Cluster
Borovetz FACTORSz
St tSt t Gov't
BASIC+Climate
Strategy, Strategy, StructureStructure& Rivalry& Rivalry
Gov t+ Snow, forest, slopes0 Location Proximity+ Close to historic, cultural sites? L b F
DemandDemand
? Labor Force
ADVANCEDOutdated ski infrastructure
The ClusterThe Cluster
– Outdated ski infrastructure– Knowledge – Research capability+,- Limited use of Internet,+/- Management skills
Borovetz CLUSTERStrategy, Strategy, StructureStructure& Rivalry& Rivalry
Gov't
FactorsFactors DemandDemand
- Poor hotel facilities- Contacts with tour operators- Collaboration with other diversionsCollaboration with other diversions - Heavy licensing and permit procedures- No effective industry organization
Borovetz STRATEGY- Reliance on low price tours- Single event package+ Good quality ski experience+ Good quality ski experience - No targeting of customer niches- Little knowledge of customer requirements
FactorsFactors DemandDemand
The ClusterThe ClusterGov't
Export of Sri Lankan Tea by Category
90%
100%
60%
70%
80%
40%
50%
60%TEA IN BULKTEA PACKETSINSTANT TEATEA BAGS
20%
30%
0%
10%
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
Source: Sri Lanka Industry Statistics
Dominican Republic Free ZonesExisting free trade zonesExisting free trade zones employ 2500+ information industry workersLocal private investors built and manage San Isidro Free Zone/TeleportZone/TeleportGovernment passed decree exempting San Isidro from telecomsIsidro from telecoms monopolyZone chosen by American Airlines as major offshoreAirlines as major offshore data processing/image processing siteOther Dominican Republic Teleservice Zones established by GTE, PIISA
Stephen Banya and Bancafe (Uganda)
GourmetGourmetCoffeeCoffee
Gov't
Best CoffeeBest CoffeeBest MachineryBest Machinery
Best PeopleBest People
Coffee Coffee HousesHouses
RoastersRoastersFarmersFarmers
pp
FarmersFarmers
Basis of CompetitivenessWorld: Capital Advanced Skills and TechnologyWorld: Capital Advanced Skills and TechnologyWorld: Capital, Advanced Skills, and TechnologyWorld: Capital, Advanced Skills, and Technology
DemandDemand
Global StandardsGlobal StandardsStrategy, Strategy, StructureStructure& Rivalry& Rivalry
The ClusterThe Cluster& a y& a y
FactorsFactors
Basic LaborBasic Labor
GlobalGlobal E-Commerce Projections
Estimates of Outsourcing Market
World Bank sees
Estimates of Outsourcing Market
World Bank sees developing countries able to compete for up tocompete for up to $120 billion in “long distance” telese i es aloneteleservices aloneBusiness services and software are at forefront of outsourcing growth
Indian Software ExportsIndian Software ExportsSoftware Technology Parks are now found in Bangalore Punefound in Bangalore, Pune, Bhubaneshwar, Thiruvananthapuram, Hyderabad, Noida (near Delhi), and Gandhinagar (near Ahmedabad).
All STP's are 100% export-oriented platforms that typically combine high speed telecommunications reliablespeed telecommunications, reliable power, and office space designed to meet the need of IT firms.
To minimize problems of red tape, STPs also help issue import certificates, software valuation, and attestation of export declarationexport declaration.
Source: NASSCOM, 1999
Macro Economic Environment:Much Reform Has Been Successfully Implemented
Monetary: Inflation Being TamedMonetary: Inflation Being TamedFiscal: Budget Deficits are NarrowingTrade: Tariffs Being LoweredTrade: Tariffs Being LoweredFor. Exch. Greater Convertibility
Yet Private Investment Often Slow to Respond--Where Are the Results??!