SWOT Analysis:Handicrafts Industry

 

 

Strengths:
  • Large, diversified and potential market.
  • There is large product variety and range is available because of diversified culture.
  • It has strong, diversified and supportive retail infrastructure.
  • Diversified product range that service different market.
  • Cheap labor rates that result to competitive price.
  • Need low capital investment.
  • There is flexible production flexibility.
  • Low barriers of new entry.
Advantages and Critical Success Factors:

 

  • Easy creation and development of production centers.
  • There is no need for macro-investment.

  • Industry provides potential sources of employment.
  • Products are high value added, and handicrafts have various applications.
  • It is the potential source of foreign revenue because of higher export.

Weaknesses:

  • Lack of infrastructure and communication facilities.
  • Unawareness about international requirements and market.
  • Lack of co-ordination between government bodies and private players.
  • Inadequate information of new technology.
  • Inadequate information of current market trends.
  • Less interest of young people in craft industry.
  • Lack of skilled labor.
  • Still confined to rural areas and small cities and untapped market.
  • Lack of promotion of products.

Opportunities:

  • Rising demand for handicraft products in developed countries such as USA, Canada, Britain, France, Germany, Italy etc.
  • Developing fashion industry requires handicrafts products.
  • Development of sectors like Retail, Real Estate that offers great requirements of handicrafts products.
  • Development of domestic and international tourism sector.
  • e-Commerce and Internet are emerged as promissory distribution channels to market and sell the craft products.

Threats:

  • Competition in domestic market.
  • Balance between high demand and supply.
  • Quality products produced by competing countries like China, South Africa.
  • Better Trade terms offered by competing countries.
  • Increased and better technological support and RandD facility in competing countries.

Handicrafts Trade
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