3.2.6. Value Chain Analysis Table

Value Chain Analysis Table

This exercise is best conducted on two levels: one with the value chain team and the other at the vetting workshop. Looking at the value chain through the framework lens helps us to identify:

• the best opportunities for growth and improved industry performance resulting from upgrading. Indications of these opportunities include positive market trends, favorable legislation, active actor groups, value chain “champions,” expanding service providers and "win-win" relationships
• systemic constraints that prevent those unrealized opportunities from being exploited. Obstacles include inadequate market intelligence, punative local regulations, underdeveloped supporting markets, low levels of entrepreneurial leadership and adversarial relationships
• the types of relationships that exist
• any gaps in the information gathered
• the set of stakeholders in the industry that will benefit from investments in upgrading. Involvement by this group will determine the success of an intervention. Alone, these stakeholders may not be in a position to drive change.
• the subset of the above group of stakeholders who have the incentives, skills, resources and power to help drive/make the needed investments to upgrade. This group will be the catalysts of change even though they need others in the chain to make it happen.

The table below can be considered a tool with which to analyze the collected information. For each factor in the left column affecting performance, list successively the opportunities, the constraints that prevent those opportunities from being seized, the factor’s potential for contributing to chain upgrading, and the quality of the relationship. Rather than using generic benchmarks as a basis for analysis, each factor should be analyzed in terms of its contribution to the upgrading of the value chain under consideration.