LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

3. Identification of competitive advantages of Tbilisi economy
3.1. Identification of city products
The first part of the assessment includes a list of products, services and goods
offered by companies and institutions in Tbilisi. In order to estimate their attractiveness the
following criteria have been chosen that are the most significant in the present situation of
Tbilisi:
• Market growth potential
• Product growth potential
• Job creation potential
• Tbilisi specific advantages.
While selecting these criteria we mainly focused on:
Market growth potential: The likeliness of the market to grow has the impact on future
opportunities for product development, geographical expansion and securing sufficient
income to make the industry self-sustainable. Investments in rising markets are promising in
terms of future growth of employment rates and of the number of developing companies
cooperating with the industry.
Product growth potential: Growth potential is one of the most critical factors in product
analysis since high-growth industries tend to yield higher profits, more workplaces and higher
wages. This is why it should be carefully analyzed, taking into particular consideration its
future perspectives, crucial resources and international market assessment.
Job creation potential: Market’s capability of creating high levels of employment in
short to medium term.
Tbilisi specific advantages: Tbilisi’s competitive advantages allowing the product
market to develop and contribute back to the city’s growth.
Over twenty products were evaluated. The final opinion was based on the number of
points assigned to an individual product. The products that were least attractive according to
a given criterion received zero points, medium attractiveness was rewarded with one point
and the high one – with two points.
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