Introduction and Background

PalTrade launched this component by developing and implementing an efficient methodology for gathering key market share data in West Bank and Gaza for two sectors /sub sectors of Footwear manufacturing and Dairy manufacturing as a pilot phase then the three sectors of Printing, Wearing Apparel, and Furniture manufacturing . These studies are done through the following sequence: identify sector boundaries, develop study methodology and approach for each sector, collect sector data on market share, analyze data, make strategic recommendations in collaboration with sector representatives, and present findings to stakeholders.

After presenting the methodology and findings of this stage to PalTrade and related stakeholders, an implementation guide was developed accordingly by the external consultant to build PalTrade's capacity in the market research for the local sectors. 

Goals and objectives

The objective of the Market Share Assessment (MSA) is to develop a tool to measure trends in market share of domestic sectors/sub-sectors in the West Bank and Gaza (WBG) market, aiming to identify expansion opportunities, challenges, and recommended activities for domestic enterprises and sector stakeholders.

With the goal of supporting the development of the Palestinian private sector, Domestic enterprises and sector organizations (sector stakeholders) are the primary audiences for the MSA’s, although some recommendations may be best pursued with the assistance of donors, government agencies, or others. The sub-sector stakeholders will use the MSA to obtain market information and recommendations to assist them in developing strategies to gain market share in the domestic market.

For more information, please contact Mr. Amjad Qasas aqasas@paltrade.org

The Paltrade Market Share Assessment (MSA) was developed to fill a need for improved availability and analysis of market information in Palestine. While some official information is available through government sources, it is often incomplete and difficult to obtain. Furthermore, this information is insufficiently included in strategic analyses of enterprise performance at the sub-sector level in the West Bank and Gaza (WBG).

The MSA was therefore developed as a Paltrade tool to measure trends in market size and market share of domestic enterprises, aiming to identify expansion challenges and opportunities and recommend specific activities for firms and sector stakeholders to improve their market share in the domestic market. The MSA relies on official data on production and trade published by the Palestinian Central Bureau of Statistics (PCBS) and the Ministry of National Economy (MoNE). This information is supplemented by a representative sample of producers as well as short surveys of retailers and importers in each sub-sector.

In the first three months of 2008 Paltrade launched the Market Share Assessment (MSA) by developing an efficient methodology and conducting two pilot assessments in the dairy and footwear sub-sectors. The methodology presents a strategy for: identifying and defining sub-sectors; integrating sub-sector stakeholders through industry working groups; identifying and obtaining existing data; filling data gaps through survey instruments; analyzing data; developing recommendations in close consultation with sub-sector working groups; integrating recommendations into the future planning of Paltrade activities; and presenting findings to sub-sector stakeholders.

Three additional sub-sectors—manufacture of furniture, printing, and garments—were analyzed by July 2008, building on the lessons learned during the pilot phase. MSA’s are designed to be updated on an annual or periodic basis in response to changes in priority sectors. Additional sectors will also be assessed in the coming months and years. 

The information obtained through the MSA includes:

·         Domestic market size and share

·         Recent sub-sector trends in sales, enterprises, employment

·         Capacity utilization in the sub-sector

·         Geographic distinctions in sales throughout WBG, Israel, and foreign markets

·         Competitive analysis of sub-sector capacity

·         Strengths, weaknesses, opportunities, and threats in the domestic market

·         Strategic recommendations to build domestic market share in the short term with a long term export orientation.