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5.3.1.2. Phase 1 Tools: Channels

Market Map The first step in understanding channels is to create a market map that tracks the flow of goods from either the producer or exporters all the way to the end consumer. The objective of this exercise is to highlight the full range of distribution options available to clients in the value chain and the relative importance (in terms of volume percentages) of the various channels.

5.5.1.1. Impact Assessment Primer 1

The private sector is the engine that drives economic growth. It is a large and growing segment of nearly all economies as well as the main source of the innovation and dynamism on which economic growth depends. Economic growth in turn is essential for reducing the prevalence of poverty in developing and transition countries. The poor benefit from economic growth in four distinct ways:

5.3.1.3. Phase 1 Tools: Customers

Boston Consulting Group Matrix Identifying the best market segments for a particular value chain is challenging, yet an absolutely critical step in formulating a competitiveness strategy. Ideally, value chain projects should start from the customer or market and move backward to configure the entire industry to serve and even anticipate the needs of chosen market segments.

5.5.1.3. Impact Assessment Primer 3

Introduction This contribution to the Impact Assessment Primer Series explores general issues relating to collecting and using data in impact assessments. Issues related to how data are gathered and used are addressed in sections on selecting variables, primary data collection, qualitative data collection, secondary data collection, and combining data sources.

5.5.1.4. Impact Assessment Primer 4

Introduction All private sector development (PSD) programs are based on a causal model showing the causal (or logical) links between program activities and expected outputs, outcomes and impacts. Stated in less technical terms, a causal model is akin to a roadmap showing how the PSD program gets from Point A (program activities) to Point Z (program impact). Underlying the links in the causal model is a set of theorized causal relationships that program designers believe to be true.

5.3.1.5. Phase 1 Tools: Choices

Shaded Grid Analysis As discussed above, the final result of end-market research is the ability to make choices about what market segments to pursue. At the end of Phase 1 for the Afghan DFN value chain, the team was looking for a clear choice on what one or two markets should be targeted for a full primary research effort. During the early months of the DFN engagement, stakeholders mentioned the following four markets as current or potentially interesting future markets to pursue: UK, Russia, India and the United Arab Emirates (UAE).

5.3.1.7. Phase 2 Tools: Competitors

"Spiderweb" Chart Another effective way to conduct competitor benchmarking is to ask about key attributes on a quantitative scale. An example from Ecuador tourism[1] is below. This output is the result of a series of quantitative survey questions that asked outbound tour operators (channel partners) to rank a set of competitor countries on attributes that are important in the sector. Spider Diagram Ecuadorian Tourism

5.3.1.8. Phase 2 Tools: Choices

Detailed SWOT Analysis The end result of all the data collection and analysis conducted during Phases 1 and 2 is to first make choices about what customer segments should be pursued and what the strategy should be to pursue them. One way to integrate the four Cs above into this analysis is with a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis. Context is used for the internal factors (SW), while Channels, Customers and Competitors are integrated into the external factors (OT).

5.3.2.1. Production Capacity Analysis

Introduction Cycle time analysis was used by the World Bank's Foreign Investment Advisory Service (FIAS) to look at constraints in the Ugandan coffee sector. The Ugandan government implemented a decentralization process that increased the number of bureaucratic procedures individual districts imposed and led to the implementation of levies on investments and shipments in and between the districts.

5.3.2.2. Benchmarking

The value chain benchmarking process is straightforward and generally includes the following steps:

5.3.1.4. Phase 1 Tools: Competitors

Boston Consulting Group Matrix - Exporters The TradeMap database can also be used to identify both global and regional competitors in different commodity groups. The output of the analysis is similar, but in this case, we are looking at exporters instead of importers of the product. As a first pass, this type of secondary analysis can paint a portrait of the relative size of the competitor (the size of the bubble), the basis of competition (low cost vs. differentiation), and the relative success of the country in global markets (annual growth rate).

5.5.2.1. IA Brazil

The USAID/Brazil Micro and Small Enterprise Trade-Led Growth Program is intended to demonstrate that targeted assistance to key small lead firms can open export markets and lead to increased sales. Because the lead firms selected for assistance involve large numbers of microenterprises, as suppliers of finished and semi-finished products, and hire low-income workers, the increased sales will benefit small microenterprises and the poor through expanded opportunities to supply goods and services tot he lead firms, increased employment, and income.

5.5.2.2. IA India

The Growth-oriented Micro-Enterprise Development (GMED) India Program is a three-year (extendable to a fourth-year) project with the goal of developing sustainable institutions and policies that will enable (MSEs) to grow into larger businesses and thus increase employment opportunities, thereby increasing employment opportunities in India.

5.5.2.4. IA Zambia

PROFIT Zambia is a five-year project that began in June 2005. It is funded at the level of $15 million, including $5 million for local grants. The Cooperative League of USA (CLUSA) implements the project with the Emerging Markets Group (EMG) and International Development Enterprises (IDE) as sub-contractors.

5.5.2.3. IA Kenya

The Kenya Business Development Services (BDS) Project and the Horticulture Development Centre (HDC) Project support USAID/Kenya’s strategic objective of increasing rural household incomes in Kenya. They seek to raise smallholder productivity, widen market outlets, facilitate vertical and horizontal linkages, and promote the sustainable development of business services for rural MSEs.

Finance Wiki

This wiki provides an overview of the role of finance in development and descriptions of financial interventions that exist to address constraints to mobilizing finance.