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
 E-mail: tri_gel_ann@yahoo.com.au
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.
2.
3.
4.
5.
6.
Identify who the key players are
Determine the industry’s dominant economic traits
Identify the competitive forces at work
Identify the drivers of change in the industry
Evaluate the industry attractiveness in terms of its
prospects for above-average profitability
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
Potential
entrants
buyers
PORTER’S
MODEL
industry
substitutes
sellers
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