Value Analysis

Value Chain Analysis

SEEP Network Annual General Meeting Pre-Event Workshop: Oct 25-26, 2004

Presented by: Frank Lusby and Henry Panlibuton Action for Enterprise (AFE)

Program Design Process

(1) Select Economic Sector (2) Analyze Sector (3) Identify Solutions/ Services (4) Market Assessment of Solutions /Services (5) Identify Program Interventions

Frameworks: • competitiveness • etc.

Frameworks: • subsector analysis • value chain analysis • etc.

Frameworks: • BDS Markets Analysis • commercial viability • etc.

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Presentation Outline

1. What is Value Chain Analysis? 2. How to gather Value Chain information? 3. Why is Value Chain Analysis important?

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Subsector and Value Chain Analysis

value chain analysis is complementary to subsector analysis provides additional analytical elements that can improve the program design process builds on the foundation of a subsector analysis framework

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Subsector and Value Chain Analysis

Services/Solutions to upgrade MSEs

Value Chain Analysis Subsector Analysis

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What is a Subsector?

Definition:

– range of activities required to bring a product or service to the final consumer – includes producers, processors, input suppliers, exporters, retailers, etc. – includes both vertical and horizontal linkages – can be defined by a particular finished product or service

• e.g. wood furniture, green beans for export, etc.

** the same definition can be applied to Value Chains

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Elements of Subsector Analysis

1) Understanding Product Markets and Market Trends 2) Relationships between Participants

– describes functions, participants, and relationships among participants

3) Identification of Constraints and...