INDUSTRY PROFILE of TOP INDUSTRY SECTORS IN CAMARINES SUR

Proponent and Institution Name: MA. CRESILDA M. CANING Designation: Agency and Address: Central Bicol State University of Agriculture, Pili, Camarines Sur

Implementing Agencies Lead: CBSUA Collaborating Agencies: DTI Different LGUs MAO/DAR-CARP OTHER SUCs such as CSPC PSU

Rationale AN INDUSTRY IS a group of firms whose products have so many of the same attributes that they compete for the same buyers. The government has been encouraging entrep development in the country as a response to certain socio-econ problems such as unemployment, low productivity, poverty reduction

To do this, they identified OTOP which is patterned after the OVOP (Japan) AND OTOP (Thailand) DTI has been actively promoting the development of OTOP to promote indigenous knowledge, skills and businesses inherent in the area To be successful, OTOP players and their service providers need to take a proactive approach in positioning their products and their business in the marketplace.

Identify the competitive advantage of our major industries, particularly those involved in OTOP Increase the penetration of Philippine products and services

Objectives 1. Identify who the key players are 2. Determine the industry’s dominant economic traits 3. Identify the competitive forces at work 4. Identify the drivers of change in the industry 5. Evaluate the industry attractiveness in terms of its prospects for above-average profitability 6. Identify investment and development entry points

PROJECT 1: DISTRICT 1 OTOP BUSINESS PROFILES STUDY 1: FOOD-BASED STUDY 2: NON-FOOD OTOP PROJECT 2: DISTRICT 2 OTOP BUSINESS PROFILES PROJECT 3: DISTRICT 3 OTOP BUSINESS PROFILES PROJECT 4: DISTRICT 4OTOP BUSINESS PROFILES

Theoretical Framework industry Potential entrants sellerssubstitutesbuyers PORTER’S MODEL

Methodology Respondents; mSMEs involved in OTOP in the 26 municipalities of Cam Sur plus Naga City and Iriga City

Methodology Data collection: secondary and primary data, direct observation (triangulation), FGD Data Analysis: qualitative and quantitative,

Expected Output Profile of the different players in the industry Best Practices SWOT Analysis Support services availed and technology and training needs Handbook/manual/book on the best practices

Situation Analysis profiling Developing profile of their abilities, opportunities, assets and challenges.

Budget Php 1.3M

Sample QUESTIONs

What are the industry’s dominant economic traits? Market size Scope of competitive rivalry (local, regional, national, international or global) Market growth rate and where the industry is in the growth cycle Number of rivals and their relative sizes Number of buyers and their relative sizes

Prevalence of backward/forward linkage Ease of entry and exit Pace of technological change

Market growth Geographic scope Industry structure Scale economies Experience curve effects Capital requirements

What competitive forces are at work in the industry and how strong are they? Rivalry among competing sellers Threat of potential entry Competition from substitutes Power of suppliers Power of buyers/customers

Entry barriers Economies of scale Proprietary product differences Brand identity Switching costs Capital requirements Access to distribution Absolute cost advantages Government policy Expected retaliation

Determinants of supplier power Differentiation of inputs Switching costs of suppliers and firms in the industry Presence of substitute inputs Supplier concentration Importance of volume to supplier Cost relative to total purchases in the industry

Determinants of buyer power Bargaining leverage Price sensitivity

Determinants of substitution power Relative price performance of substitutes Switching costs Buyer propensity to substitute

Rivalry determinants Industry growth Fixed costs/value added Intermittent overcapacity Product differences Brand identity Switching costs Concentration and balance

Ideal competitive environment Suppliers and customers are in weak bargaining positions There are no good substitutes Entry barriers are relatively high Rivalry among present sellers is only moderate

What are the drivers of change in the industry and what impact will they have? Drivers of change: Changes in the long-term industry growth rate Changes in who buys the product and how they use it Product innovation Technological change Marketing innovation

Entry or exit of major firms Diffusion of technical know-how Increasing globalization of the industry Changes in cost and efficiency Emerging buyer preference for differentiated products Regulatory influences and government policy changes

What companies are in the strongest/weakest competitive positions? Strategic group analysis helps deepen management understanding of competitive rivalry; the closer strategic groups are to each other on the map, the stronger competitive rivalry among member firms tends to be strategic group. Strategic group consists of rival firms with similar competitive approaches and positions in the market

Who’s likely to make what competitive moves next? Identify competitor’s strategies Evaluate who the industry’s major players are going to be Predicting competitor’s next moves