3.1.1. Competitiveness Assessment Tools
A Comparison of Competitiveness Assessment Tools
Tool | Description | Strengths | Weaknesses |
---|---|---|---|
Labor Adjusted to GNP | Contribution of GNP/percent of work force employed in sector | Quick measure of relative importance and potential employment effect | Does not measure competitiveness factors; does not directly consider global competitors; assesses past, not potential, importance of sectors |
Boston Matrix | Assesses local industry growth and market share against global market share | Relatively quick reasonable proxy for more detailed tools; assessment data can easily be collected for secondary sources | Does not directly address factors influencing competitiveness; assessment is based on historical data, not potential |
Porter's Five Forces and Porter's Diamond Framework | Based on five interacting factors critical for an industry to become and remain competitive | Assessment based on factors influencing industry competitiveness; assessment suggest location of driving constraints to industry competitiveness | Assessment is complicated and, where information is not readily available, it can take time to collect data; substantial analysis required before industry selection |
End Market Informants | Interviews with highest-value end-market buyers regarding future trends and their procurement strategies | End markets define the universe of market opportunities; global buyers are knowledgeable of the competition and factors and trends likely to influence the market--information that is critical to assessing competitiveness | Requires knowledge of the end-market buyers; this information is not available in-country; subjective |
Investor Road Maps | Maps opportunities, constraints and risks to investment with an emphasis on the business enabling environment, and the existence and quality of critical infrastructure and services | Complementary to value chain analysis, high level of detail on identified opportunities and constraints | Costly as an industry selection tool; does not consider industry efficiency resulting from vertical and horizontal coordination; does not consider global competition |