The competitiveness strategy directs design of implementation.
After listing down the identified constraints and opportunities from the previous sections, next is to narrow-down the key constraints that prevent existing and potential opportunities from being fully exploited.
Compile and review the results of analyses from the previous sections or steps and filled out templates to prepare in filling out the table below.
For this table, the objective is to formulate priority interventions needed to fulfill the competitiveness vision of the target commodity industry.
In filling out this table:
a. Identify key opportunities to improve competitiveness and/or increase market share per VC segment or aspect
b. Identify the key constraints hindering competitiveness improvement per VC segment or aspect
c. Provide brief description of the key constraints and opportunities
d. Determine who among the VC players are affected and the provinces covered
e. The answers under the column of "What to do?", is the intervention strategy that should consider the following:
● Directed towards addressing constraints (the VC project must be able to motivate stakeholders to collectively respond to constraints and opportunities)
● Facilitate win-win relations (transforming short-term and adversarial relations, into sustainable, mutually beneficial relations)
● Promote innovation and learnings (must promote continuous learning and dissemination of best practices, and help develop market- based incentives that will drive constant upgrading and maintain high level of competitiveness)
● Increase depth of impact (benefits should be long-term; increases in income are substantial enough to drive upgrading and keep effective relations)
f. In the column of "How to do it?" or designing interventions (key actions), here are several factors to consider:
● Project intensity (use the least amount of resources for the project's interventions. Harness the power of collaboration and buy-in when identifying roles of VC actors and other stakeholders in the VC project. High project spending veers the chain players away from developing sustainable, market-based solutions.)
● Smart Subsidies (reasonable funding support can be provided through: capacity building of service providers, promotion of the products and services of MSEs, and reforming the business enabling environment)
● Limited relations with stakeholders (always go back to the question, why specific relations between VC actors have not yet formed? The VC project must keep all interactions with VC players' time-bounded)
● Understanding knowledge flows (addressing poor flow of knowledge in the chain has a more sustainable impact on the value chain)
3. Intervention Prioritization Tool
Given limited resources, it is imperative to narrow down initial possible interventions into a short-list for further consideration.
4. Different prioritization tools or methods may be used in selecting the priority interventions such as pairwise ranking, comparison method, or by using a short-listing matrix.
Using short-listing matrix:
a. Create a shortlist of interventions under consideration.
b. Using this method, a matrix is completed which shows the relative rating of each interventions (e.g. high, medium, low) against the two selection criteria considered as most important.
c. The following selection criteria will be presented one on each axis of the matrix:
- Potential for Growth and Expansion of the Value Chain - the possibility of the proposed solution resulting in increased growth and expanded trade, investment, and/or competitiveness of the value chain (commodity/product line).
- Potential Number of Smallholder Farmers that would benefit or increase participation in the value chain - the increased number of smallholder farmers benefiting or participating in the value chain as a result of the proposed solution. This could also be a measure of outreach as well as potential employment opportunities.
d. Short-listed interventions should be numbered and pinned in the corresponding box in the matrix, as in the following example:
E. Interventions located in the High-High, High-Medium, or Medium-Medium box will be given priority, while interventions located in the shaded boxes (e.g., low/medium market demand and low/medium income potential) is considered less attractive than the other more higher-rated interventions, and would be given lower priority for further analysis.
5. The selected interventions will have to be validated through a consultation to get feedback on the viability of each. The consultation must bring out possible difficulties that may be encountered in the implementation of the suggested interventions.