Analysis on Competitiveness of the Handicrafts Industry: A Case of Sri Lanka

Abstract

Sri Lanka is a country with rich culture, history and traditions background. It is one of the major producers of handicrafts in the world. Before the industrial development, the Handicrafts Industry in Sri Lanka was deemed as a potential economic advantage of the country (Everyculture 2012). And yet, this industry is still playing a major contributor to the development of national economy. Hence, this study strives to assess the competitiveness of Sri Lankan's Handicrafts Industry, using Porter's Diamond Analysis Model. Indeed, the factors conditions demand conditions, related and supporting activities, as well as firm's strategy, structure and rivalry were assessed and discussed critically. Apart of that, recommendations have also been provided and discussed in order to enhance the performance of the industry, in particular recommendations for the Indian government as well as to the handicrafts exporters.

Evolving Host Socio-Demographical Determinants Towards Himalayan Handicraft Industry

“…However, so far, the majority of the existing literature on handicraft tourism has focused on tourists handicraft buying motives (Altintzoglou et al, 2016;Chan et al, 2021;Dasgupta & Chandra, 2016;Militz et al, 2021;Nayak & Bhalla, 2016) or handicraft innovativeness and its market reach (Ferreira et al, 2019;Ghouse, 2012;Joshi & Dhar, 2020;Naidu et al, 2016;Oyekunle, 2018;Teo et al, 2020;Toops, 1993). We found a gap in the research on the factors that motivate(s) host community stakeholders to be in the handicraft industry.…”

“…In another attempt Teo et al, (2020) conducted their study aiming to examine the external environment that influence the handicraft industry, analyze the challenges faced by the industry and also made recommendations for future research into the handicraft design. To examine the external environment, the researchers employed the PEST analysis method which evaluates the political, economic, social and technological environment in which industry operates.…”