Value Chain Analysis of Ethiopian Leather Industrial Sector for Investment Opportunity

Birhane, Tsige (2009) Value Chain Analysis of Ethiopian Leather Industrial Sector for Investment Opportunity. Masters thesis, Addis Ababa.

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Abstract

This thesis applies value chain Analysis, approach to analyze problems, constrains and generates solutions throughout the Ethiopian leather and leather products industry. In spite of having comparative advantages such as large resource base in livestock population, readily available and inexpensive labor pool, gaining an international reputation for sheep and goat skins, and being considered as a priority sector by the government, the leather sector in Ethiopia does not transform to a fully fledged manufacturing stage with integrated leather and leather product industries. This is mainly due to poor link and cooperation between vital links in the value addition process and poor quality of hides and skins. Literature surveys, field visits to leather factories, data collection from relevant organizations, data analysis, and interview with experts in the leather sector are the methodologies used in this thesis. The concept of value chain analysis is used as a literature in the study which describes the activities within and around an organization, and relates them to an analysis of the competitive strength of the organization. The theoretical concept of VCA includes primary activities and the support activities. The results of this thesis are obtained through the qualitative and quantitative analysis of the Ethiopian leather industry. The main causes and defects that disrupt the growth of Ethiopian leather industry are found through a qualitative analysis in major components of the value chain which are: animal husbandry, slaughtering houses, raw trading, tanning, manufacturing and marketing. SWOT analysis including cause and effect diagram to trace the quality problem; the opportunity and profit margins to be obtained from higher value added products taking sheep skin as an example are analyzed. Additionally; foreword strategies are proposed with the following main ideas: improve quantity and quality of hides and skins entering to the supply chain, maintaining the quality of H&S until it reaches tanneries, upgrading in tanning and leather manufacturing, and expanding international market opportunities and promotion for investment in the Ethiopian leather and leather products sector. Finally conclusions and recommendations are drawn to alleviate and solve the problems of Ethiopian leather and leather products industry.

Item Type: Thesis (Masters)
Uncontrolled Keywords: Mechanical Engineering
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
T Technology > T Technology (General)
T Technology > TJ Mechanical engineering and machinery
Divisions: Africana
Depositing User: Andriamparany Edilbert RANOARIVONY
Date Deposited: 03 Jul 2018 07:32
Last Modified: 03 Jul 2018 07:32
URI: http://thesisbank.jhia.ac.ke/id/eprint/6452

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