YP

Background

1.1 Palestinian federation of industries (PFI)

The Palestinian Federation of Industries (PFI) is the national institution represents the Palestinian industrial sector through its federated associations. Founded in 1999 as a permanent private sector organization, PFI facilitates industrial development as the basis for economic performance. PFI’s representational role is to educate, advocate, and communicate the value of a developed, socially responsible and globally competitive industry, in addition to develop industrial effective policies that serve the industrial interests and contribute in the national economy improvement.

The industrial sectors represented in PFI: food industries, stone and marble, construction, metal and engineering, chemical, pharmaceutical, wood and furniture, leather, traditional and craft, paper, plastic, textile, Renewable energy industries, and the aluminum industry.

• Project Background

PFI, PalTrade, and PSC are partnering to implement the project titled “Creating a Competitive Edge of the Palestinian MSMEs in the Local and Potential Export Markets” in West Bank and Gaza. The Project aims to increase the capacity of MSMEs by targeting selected priority sectors/products to increase their market share locally and internationally and will focus on improving the competitiveness of a selected number of companies.

• Project profile

• Beneficiary’s background

35 MSMEs from the different industrial sectors in West bank and Gaza , The main sectors are : Food, Stone and Marble, paper , Metal, Cosmetics, Chemicals, Pharmaceuticals and Textile and Garment , see the Beneficiary’s list in annex 1 at the last page.

• Objectives of the study:

-The mapping study will help to identify opportunities that can be made available to companies in the local market by refining their products. In addition, the mapping will support the companies to design activities that can target these opportunities in the local market.

-The market study will identify industry products, which have strong opportunities to be marketed locally. It will seek to identify products, which have a high return on investment, and offer stable prices all year round. The study will put forward recommendations of industry products, which will bring significant increases to the sales of SMEs

• Scope of work:

• Examine the challenges and potential opportunities open to local market for selected products.

• Assess the access to raw materials needed to produce the goods.

• Assess quality and range of products, production times/capacity, workforce- including size and capacities, administration/management practices, inventory etc.

• To collect relevant secondary and primary data on identified value chains that will include opportunities and challenges, quantities, prices, core actors, including role of main marketing institutions.

• To map out the flow of demand and supply of value chain selected products (products can be grouped).

• To provide a detailed analysis of the market opportunities in the local market for the various products that can be maximized, including linkages with local markets key players, locations, quantities, main competitors, barriers to competitiveness, quality management.

• To recommend upgrading strategies for the at least three sector value chains, outlining future strategic interventions, policy and practice advocacy areas that can improve the competitiveness of the selected products.

• To obtain baseline information which could help to track progress towards the project outcomes and finally check the project impact.

• Analyze current market trends in terms of market demand and supply, price-scheduling mechanisms, market determinant factors, and government market regulatory and control mechanisms.

• A structured analysis of quantitative and qualitative data available for respective market;


• Analysis of the competitive environment and evaluation of the  positioning:

• Consumer behavior;


• Market segments and targets;


• Comparison of the  offer with that of its competitors, for the identified segments;


• Analysis of profitability by product

• Visualizing the current Business Model.


• Quick analysis of one product from each target company (see Annex I below ), what is the problem facing this product and recommendations about it

• Deliverables

• Illustrate the range of positions that a product can take in a market based on two dimensions that important to customers.


• Identify opportunities that can be made available to companies in the local market by refining their products.

• Identifying gaps with recommendations.

• Identifying products problems and recommendations.