LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

application of new technologies. The political situation in the country as well as its
economic situation are moderately attractive. Social indices indicate low attractiveness for
the cluster’s services, which probably results from the general economic situation of both
local residents and businesses. The financial cluster has received a general mark of 1.1
(the maximum mark is 2.0), which means that the cluster’s attractiveness and its growth
perspectives slightly exceed the medium level. It should be noted, however, that the
cluster is going to develop more dynamically when the local economy and the local
residents’ economic situation grow.
Education cluster
Table 3-3 Education cluster assessment of attractiveness
Indicators of Cluster
Attractiveness
Assessment of Attractiveness Weights
low (0) middle (1) high (2)
Score
I. Market Potential
45% 0.5
→ Market Potential X 15% 0.3
→ Output Growth X 10% 0.2
→ Average Wages and
employment X 20% 0
II. Market Structure
20% 0.3
→ Suppliers X 5% 0.1
→ Buyers X 5% 0.1
→ Substitute Products X 5% 0.1
→ Intensity of Rivalry X 5% 0.1
III. External Environment
35% 0.5
→Economic Conditions X 10% 0.1
→ Political situation X 5% 0.1
→ Technology X 5% 0
→ Societal Factors X 15% 0.3
IV. Total Score
100% 1.3
The education cluster demonstrates high growth potential due to the increased demand
for re-training services for adults and young people’s educational needs. Because of the
economic conditions in which local educational organisations operate the existing
education product has a medium growth potential. Over-supply of teachers as well as
low salaries do not provide favourable conditions for higher benefits and more
employment in the sector. The sector market structure and its environment are highly
attractive due to many customers, the shortage of alternatives, the political situation and
social expectations. Low marks concerning the cluster’s attractiveness result from the
employment and salary growth parameters, insufficient use of new technologies as well
as from low productivity. The constructed corporate city development plans should
particularly focus on the education cluster. With its good didactic and training facilities, a
market oriented offer and highly qualified stuff the cluster will obviously become one of the
fastest growing segments of local market. Its potential will be even more important as a
support to one of the main factors of the city competitiveness, i.e. the skilled workforce
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