Competitiveness and Industry/Sector Specific Projects

JAA is a leader in the field of competitiveness and cluster-based approaches to building competitiveness, and has worked in partnership with private enterprise, USAID, the World Bank, DFID and others to develop and implement flagship competitiveness programs worldwide. Competitiveness can be defined as sustained growth in productivity, and is most effectively measured by growth in value addition. Competitiveness is driven and affected by many factors that can be grouped under three major headings: macroeconomic conditions, microeconomic conditions, and the quality and execution of business strategy (Porter, 1990). As such, comprehensive competitiveness programs address two complementary and interrelated issues: the quality of business strategy and the business environment that facilitates strategy selection and implementation, and investment.

Macroeconomic conditions include fiscal, monetary, trade, and other broad and overarching policies that are a necessary but not sufficient cause for growth. Microeconomic conditions refer to elements such as tax codes, infrastructure, utilities, regulation, education, public administration, and many other factors influenced by both the private and public sectors that affect the day-to-day ability of businesses to compete. The quality of business strategy refers to the choices business leaders make about where and how to compete, which industries to be in, and how to position their companies. It also refers to their effectiveness in implementing their plans, their efficiency in managing their operations and their ability to achieve value added.

The Competitiveness Approach developed by JAA is comprehensive and aims to improve both the quality of business strategy and the environment within which firms compete. JAA’s programs are designed to improve all three of the key competitiveness components by working primarily with industry clusters or market segments, but also with business associations, government institutions, and public-private partnerships, as well as other influential institutions such as think tanks, management schools, press groups, reform commissions, and other stakeholders. To date, JAA has worked with more than 50 industry/business clusters including, amongst others, wood products, gems/jewelry, tea, coffee, coir, ceramics, rubber, tourism, information technology (IT), silk, spices, fish, apparel, horticulture, cut flowers, meat products and cashmere.

The JAA methodology helps business to identify its strategic opportunities; to identify the gaps between current strategies and desirable strategies; to develop strategic plans to achieve new opportunities; and to implement those plans. Simply put, the programs are designed to help firms and industries increase their ability to target and serve desirable customers and markets, add value to their products, increase their productivity and better meet the needs of existing and potential customers. Operating predominantly at the cluster, market sector or association levels, JAA’s approaches enable businesses in an industry or industry group to find and collaborate on their points of common interest, and to develop productive linkages within the industry while maintaining competition. It enables the industry to expand linkages with related industries and institutions and to create clusters that collaborate to achieve strategic objectives. Programs are designed to enable businesses to continually use innovative ideas and approaches in the development of their individual strategies and achievements.

A key element of the JAA Competitiveness Approach is the development of industry and cluster competitiveness. From its inception, JAA has worked with business and industry to develop and implement effective strategies for growth and restructuring. JAA is committed to helping countries achieve sustainable economic growth in ways that allow broad-based participation of citizens in the benefits of that growth. JAA’s approaches to business strategy are appropriate to interventions at many levels within sectors and within supply, value and market chains, and designed to function at many levels. JAA is also an industry leader in implementing cluster-based approaches to improved strategy.

A “cluster” is the collection of businesses and other organizations that must collaborate to enable a core industry to successfully produce and deliver a product or service. Business strategies at the cluster level are often multi-faceted, systematic plans of action designed to increase the overall viability of the cluster, and thereby the strength of the developing country’s economy. JAA’s approach to corporate/industry/cluster strategy focuses on the needs of the customer and market. JAA serves as a catalyst and facilitator in the process, as well as a source of information and expertise. In addition to improving industry, cluster and sector strategies, JAA assists top management of private enterprises in strategic planning, studying markets, conducting feasibility and competitiveness studies, identifying joint venture partners, analyzing financial scenarios and restructuring their organizations.

The JAA approach also helps the private sector to define and articulate its needs, and where these require government action, to effectively make well-considered and well-presented cases for change. The approach assists and encourages government and the public sector to revise policies, programs, systems and procedures so that they do not impede, but rather facilitate, business competitiveness. The approach helps business to focus on priority strategies and needs that will enable it to become globally competitive. JAA’s experience is that prioritization of business objectives and policy change on the basis of needs identified by industry clusters and business groups, and clearly advocated on the basis of facts and well-considered arguments, leads to positive policy change and a virtuous circle of increasing trust and common vision between public, private and civil stakeholders.

The JAA methodology also includes successful approaches to changing the mindsets of all levels of a country’s civil society with respect to the principles that are important for competitiveness and sustained economic growth. These involve changing the focus of public dialogue and media coverage of economic development so that the issues of competitiveness and economic development are correctly and effectively presented. Actions include training of media partners on the correct terminology and usage of language related to competitiveness and economic development; informing the public through media campaigns on the successes of the project in developing economic prosperity; providing clear and unbiased data and information; providing case histories and best practices; and influencing the dialogue process among all levels of business and government. By implementing this approach through various forums and media vehicles, it informs the public on the concepts of competitiveness, and the correct and effective use of the concepts, language and principles to affect the greatest acceptance and success of the methodology of competitiveness in economic development.

Please follow the link below to access examples of projects on which JAA’s work focused on Competitiveness and Industry/Sector Specific Projects.