This study focusses on reviewing apparel manufacturing eco-systems of Ethiopia, identifying missing inputs (weak points) of existing supply chain and assessing their impact on competitiveness of Ethiopian Apparel manufacturing firms.
Countries compete with each other to improve the standard of living and quality of life of their citizens, grow economically, attract foreign investments and tourists, maintain political stability and build their own brand image by using competitive advantage of their nations. Apart from favourable Macro environment (GDP, purchasing power, Economic freedom, easy of doing business, and political stability) low Production factors such as rawmaterials, related and supplying industries, electric cost and skilled and semiskilled manpower are the source of competitive advantage both to the countries and firms along the supply chain.
The textile and clothing industry have been one of the most dynamic and geographically mobile industries globally. The industry is made up of complex global production networks and due to the possibilities of minimizing the costs of production, many buying companies use suppliers located in developing countries and manufacturers of textile and clothing companies also relocate themselves in developing countries through foreign direct investment (FDI). Over recent years there has been an increasing amount of interest in Africa for investment as a continent with immense resources and potential. Ethiopia in particular has been singled out as a land of growth and investment opportunity.
Ethiopia grows some of the world‘s finest cotton and has a rich textile spinning and weaving history, yet its importance on a global scale remains insignificant. Having experienced average annual growth rate of 10.7% GDP growth consistently since 2006 and a stable political framework since 1995, it still remains largely, not yet used or taken advantage of it.
Although, favourable business environment is set by the government, there are ―missing inputs (weak points)‖ in existing supply chain which should be addressed. For example, in the case of garment manufacturing, trimming and accessories, packaging, certification bodies, spare part technology and machine maintenance companies and Ecommerce are missed along the supply chain.
Table of Contents
1. Chapter one: Background
1.1 Introduction
1.2 Summary of research approaches
1.3 Statement of the problem
2. Chapter two: Review of the literature
2.1 Theoretical Framework
2.1.1 Porter’s national Diamond model
2.1.2 Supply chain Management
3. Chapter Three: Research methodology
3.1 Research questions
3.2 Objectives
3.3 Methodology
3.4 Research Design
3.5 Data collection
3.6 Sampling methods and size
3.7 Significance of the study
3.8 Limitation and delimitation
3.8.1 Limitation
3.8.2 Delimitations
3.9 Organisation of the study
4. Chapter four: Research analysis and findings
4.1 Overview of Ethiopian Economic
4.1.1 Socio-political indicators
4.1.2 Trend of economic development
4.1.3 Foreign Direct investment trend
4.2 Business and legal environment
4.2.1 Political and regulatory environment
4.2.2 Trade policy and market access
4.2.3 Investment climate and incentives
4.2.4 Easy of doing business and economic freedom: Ethiopia
4.3 Global and Regional Market Trends in Textile and Apparel
4.3.1 Global Apparel: overview
4.3.2 Sub-Saharan Africa (SSA) Apparel Trade
4.4 Ethiopian garment industry: overview
4.4.1 Background
4.4.2 Trade performance of Ethiopian garment sector
4.4.3 Major Trade partners
4.4.4 Men‘s wear domestic market size and growth
4.4.5 Key Market Growth Drivers
4.4.6 Key Players in men‘s wears
4.5 Analysis of Ethiopian Garment manufacturing business environment
4.5.1 Factor conditions
4.5.2 Demand conditions
4.5.3 Related and supporting industry
4.5.4 Firms‘ strategy, structure and rivalry
4.5.5 Government and chance
4.6 Apparel supply chain structure in Ethiopia
4.7 Primary data analysis
4.7.1 General business environment and principal problems to garment industry
4.7.2 Supply chain issues and competitiveness
4.8 Findings
5. Chapter Five: Conclusion and Recommendation
5.1 Conclusion
5.2 Recommendation
5.2.1 Strategic recommendation
Research Objectives and Focus Areas
The primary objective of this research is to analyze the Ethiopian apparel manufacturing ecosystem by mapping its existing supply chain to identify critical weak points and assess their overall impact on the international competitiveness of local firms.
- Evaluating the macroeconomic and microeconomic business environment for garment manufacturing in Ethiopia.
- Analyzing the trade performance and competitiveness of the Ethiopian apparel sector compared to global and regional peers.
- Identifying and mapping the core components of the current apparel supply chain to isolate inefficiencies and missing inputs.
- Providing strategic recommendations to improve supply chain integration, product diversification, and overall productivity.
Excerpt from the Book
1.1 Introduction
Countries compete with each other to improve the standard of living and quality of life of their citizens, grow economically, attract foreign investments and tourists, maintain political stability and build their own brand image by using competitive advantage of their nations. Apart from favourable Macro environment (GDP, purchasing power, Economic freedom, easy of doing business, and political stability) low Production factors such as raw-materials, related and supplying industries, electric cost and skilled and semi-skilled manpower are the source of competitive advantage both to the countries and firms along the supply chain.
The textile and clothing industry have been one of the most dynamic and geographically mobile industries globally (Dicken, 2011). The industry is made up of complex global production networks and due to the possibilities of minimizing the costs of production, many buying companies use suppliers located in developing countries and manufacturers of textile and clothing companies also re-locate themselves in developing countries through foreign direct investment (FDI). Over recent years there has been an increasing amount of interest in Africa for investment as a continent with immense resources and potential. Ethiopia in particular has been singled out as a land of growth and investment opportunity.
Ethiopia grows some of the world‘s finest cotton and has a rich textile spinning and weaving history, yet its importance on a global scale remains insignificant. Having experienced average annual growth rate of 10.7% GDP growth consistently since 2006 and a stable political framework since 1995, it still remains largely not yet used or taken advantage of it.
With several government incentives in place, a priority given towards developing the textile and clothing industry across the supply chain, a viable business environment and duty free market access to both US and EU, Ethiopia is now beginning to attract international buyers and investors.
Summary of Chapters
1. Chapter one: Background: This chapter introduces the Ethiopian textile and apparel industry's current status and defines the research problem regarding the sector's competitiveness.
2. Chapter two: Review of the literature: This chapter provides a theoretical framework based on Porter's National Diamond Model and supply chain management concepts to analyze competitive advantage.
3. Chapter Three: Research methodology: This chapter details the qualitative and quantitative research methods used, including the data collection from selected garment firms.
4. Chapter four: Research analysis and findings: This chapter presents a comprehensive analysis of the Ethiopian economy, the apparel industry structure, and the supply chain, supported by data on trade performance and investment.
5. Chapter Five: Conclusion and Recommendation: This final chapter synthesizes the findings and offers strategic recommendations for government and industry stakeholders to enhance competitiveness.
Keywords
Apparel Manufacturing, Ethiopia, Supply Chain Management, Porter's Diamond Model, Competitiveness, Garment Industry, Foreign Direct Investment, Export Performance, Industrial Policy, Trade Policy, Textiles, Productivity, Infrastructure, Economic Development, Market Demand.
Frequently Asked Questions
What is the core focus of this research?
The research primarily investigates the Ethiopian apparel manufacturing ecosystem to identify specific "weak points" or "missing inputs" in the current supply chain that hinder the industry's competitiveness in international markets.
What are the central thematic areas covered in the study?
The study covers the macroeconomic business environment, the structural mapping of the local textile and apparel supply chain, an analysis of export performance, and an assessment of productivity and infrastructure constraints.
What is the primary objective of this work?
The main objective is to identify how gaps in the supply chain affect the industry's ability to compete globally and to provide evidence-based recommendations for stakeholders to improve overall competitiveness.
Which scientific methodology does the author employ?
The author uses an integrated theoretical approach combining Porter’s National Diamond Model—to analyze national competitive determinants—and supply chain analysis, supported by both qualitative and quantitative research using primary data from 15 garment firms and secondary statistical data.
What topics are discussed in the main body of the work?
The main body examines the Ethiopian economic context, the legal and regulatory environment for investors, global and regional market trends, specific trade statistics for garments, and detailed analyses of factor conditions and infrastructure gaps.
Which keywords best describe this study?
Key terms include Apparel Manufacturing, Supply Chain Management, Ethiopia, Competitiveness, Porter's Diamond Model, and Trade Performance.
How does the author evaluate the impact of infrastructure on the garment industry?
The author highlights that despite government investments, poor road networks, logistical hurdles at the port of Djibouti, and unreliable communication systems significantly increase lead times and production costs, creating a competitive disadvantage.
What role does the Ethiopian government play according to the research?
The research finds that while the government provides a conducive environment through incentives, tax schemes, and industrial park development, the actual implementation of these policies often suffers due to institutional immaturity and a lack of focus on strategic industry integration.
- Quote paper
- Nigussie Godana (Author), 2016, Identifying weak points of existing supply chain and their impact on competitiveness. A study of the Ethiopian apparel manufacturing eco-system, Munich, GRIN Verlag, https://www.grin.com/document/385920
