LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

Industry cluster.
Table 3-6 Industry cluster assessment of attractiveness
Indicators of Cluster
Attractiveness
Assessment of Attractiveness Weights
low (0) middle (1) high (2)
Score
I. Market Potential
45% 0.3
→ Market Potential X 15% 0
→ Output Growth X 10% 0.1
→ Average Wages and
employment X 20% 0.2
II. Market Structure
20% 0
→ Suppliers X 5% 0
→ Buyers X 5% 0
→ Substitute Products X 5% 0
→ Intensity of Rivalry X 5% 0
III. External Environment
35% 0.4
→Economic Conditions X 10% 0
→ Political situation X 5% 0.1
→ Technology X 5% 0
→ Societal Factors X 15% 0.3
IV. Total Score
100% 0.7
The industry cluster has been marked as the least attractive. The old system left
businesses closely dependent on the Russian markets and carrying the burden of high
fixed costs. Consequently most of traditional industry companies closed down. Because
of growing productivity, that has resulted from the use of new technologies, and stronger
competition mainly of Asiatic countries the industrial sector is not very attractive. Apart
form highly rated political situation and social indices the other attractiveness parameters
of the cluster demonstrate low values. Therefore, it has been assessed well below the
average. The revitalisation of buildings and warehouses that used to belong to closeddown
production plants should become one of the priorities while creating the economic
development plan for Tbilisi. Also the workers who have been made redundant should be
re-trained and instructed how to find new jobs.
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