A case study of a successful cluster policy. Learnings for ... · PDF fileA case study of a...
Transcript of A case study of a successful cluster policy. Learnings for ... · PDF fileA case study of a...
A case study of a successful cluster policy. Learnings for the Icelandic geothermal cluster.
Emiliano DuchCEO of Competitiveness and Director of the Barcelona Clusters Summer School at IESEReykjavík, 16:55-17:25 November 1st 2010
Porter‟s model for local competitiveness
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Macroeconomic, Political, Legal and Social context
Microeconomic Competitiveness
Source: Michael Porter
Company operations
and strategy
State of cluster
development
Quality of business
environment
3
Macroeconomic, Political, Legal and Social context
Microeconomic Competitiveness
Source: Michael Porter
Company operations
and strategy
State of cluster
development
Quality of business
environment
Porter‟s model for local competitiveness
4
Macroeconomic, Political, Legal and Social context
Microeconomic Competitiveness
Source: Michael Porter
Company operations
and strategy
State of cluster
development
Quality of business
environment
Porter‟s model for local competitiveness
But, how do you improve your state of cluster development?
In the last 20 years hundreds of countries and regions have tried.
Can we learn anything from those experiences?
Example: Cluster development in the UK
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PRESS RELEASE: 24 March 2010 20:30
Department for Business, Innovation and Skills (National)
Minister for Business, Ian Lucas, tonight presented the
UK’s first-ever "Cluster Marks"- a new award recognising
the best of Britain’s manufacturing clusters and their
valuable contribution to the country’s economic growth.
….
Example: Cluster development in the UK
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The winners were chosen by an Independent Judging Panel, chaired by Ian Lucas and made up of representatives from industry and academia. Cluster Marks were awarded to the best four clusters out of 15 nominees from across Britain. …
XXXX was named Best Overall Cluster for its exceptional entrepreneurial dynamism, innovation, skills base and level of internationalisation.
Cluster Marks were also awarded to the North West Aerospace Cluster, North West Biomedical Cluster and the East of England Health & Life Sciences Cluster.
Example: Cluster development in the UK
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Who was the Best Overall Cluster ?
Example: Cluster development in the UK
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Representing the judging panel, Minister for Business, Ian Lucas said:
"It was not our intention to have an overall winner of this competition but the strength of support from the panel for the Humber Seafood Processing Cluster was so strong that we wanted to reflect this. So I‟m very pleased to name it „Best in Show‟ at these inaugural Cluster Mark Awards."
Yorkshire Forward‟s original “clusters”
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Yorkshire Forward‟s original “clusters”
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1.Advanced Engineering and Metals
2.Bioscience3.Chemicals4.Digital5.Food and Drink
Yorkshire Forward‟s original “clusters”
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1.Advanced Engineering and Metals
2.Bioscience3.Chemicals4.Digital5.Food and Drink
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No
ve
12
Young’s, Seachill , Sealord10,000120Seafood
Carlsberg, Theakstons, Black Sheep,
HB Clark
5,00031Beer
Major Companies: Cot t Beverages,
Benjamin Shaw , Nest le Waters
Pow w ow , Coca Cola
4,50018Water/Sof t Drinks
Major CompaniesJobsCompaniesSector
7Tea Limited data available
15Ice cream
Kw oks, King Asia, Mumtaz Food
Industries
1,50010Ethnic
Nest le, Dunhills (Haribo)7,00021Confect ionery
Del Monte, Axgro, Daniels Chilled
foods, Gordon Jopling
12,00042Fruit & Veg
2 Sisters Premier Division, F.W.
Farnsw orth, Farmers Boy, Grampian
Country Food
20,00068Meat & Poult ry
Young’s, Seachill, Sealord10,000120Seafood
Carlsberg, Theakstons, Black Sheep,
HB Clark
5,00031Beer
Major Companies: Cot t Beverages,
Benjamin Shaw , Nest le Waters
Pow w ow , Coca Cola
4,50018Water/Sof t Drinks
Major CompaniesJobsCompaniesSector
7Tea Limited data available
15Ice cream
Kw oks, King Asia, Mumtaz Food
Industries
1,50010Ethnic
Nest le, Dunhills (Haribo)7,00021Confect ionery
Del Monte, Axgro, Daniels Chilled
foods, Gordon Jopling
12,00042Fruit & Veg
2 Sisters Premier Division, F.W.
Farnsw orth, Farmers Boy, Grampian
Country Food
20,00068Meat & Poult ry
The original Food and Drink “cluster”
18
No
ve
13
The Humber seafood “sub-cluster”
24 August 20079
Storage
AJK, ACS&T, Keystore
Processors
Coldw ater
Glenrose
Northern Foods
Sealord
Smales
Young ’s Bluecrest
Bird ’s Eye Walls
Fish mongers
EquipmentNesco Weighing
Professional
services
Raw materials
suppliers
Fishgate
Grimsby Fish Market
overland
Other suppliers,
Direct Imports
Training &
research
inst itut ions
Grimsby College (HIFF)
University of Hull
Inst itut ions for
collaborat ion
Grimsby FMA, Hull Food
Alliance, Humber Forum,
Humber Seafood Group
Government
agencies
Local councils
Seaf ish Authority
Yorkshire Forw ard
Packaging
Retailers
ASDA
Morrison ’s
Food Services
Agents and
Merchants
Boyd Line
D.R. Seafoods
Logist icsHumberside Airport , Nor-Cargo, Samskip, Eimskip
The seafood industry in the Humber estuary processed 70% of the seafood eaten in the UK, fresh mostly imported from the North Atlantic
and frozen from all the world.
18
No
ve
14
The Humber seafood “sub-cluster”
24 August 20079
Storage
AJK, ACS&T, Keystore
Processors
Coldw ater
Glenrose
Northern Foods
Sealord
Smales
Young ’s Bluecrest
Bird ’s Eye Walls
Fish mongers
EquipmentNesco Weighing
Professional
services
Raw materials
suppliers
Fishgate
Grimsby Fish Market
overland
Other suppliers,
Direct Imports
Training &
research
inst itut ions
Grimsby College (HIFF)
University of Hull
Inst itut ions for
collaborat ion
Grimsby FMA, Hull Food
Alliance, Humber Forum,
Humber Seafood Group
Government
agencies
Local councils
Seaf ish Authority
Yorkshire Forw ard
Packaging
Retailers
ASDA
Morrison ’s
Food Services
Agents and
Merchants
Boyd Line
D.R. Seafoods
Logist icsHumberside Airport , Nor-Cargo, Samskip, Eimskip
The seafood industry in the Humber estuary processed 70% of the seafood eaten in the UK, fresh mostly imported from the North Atlantic
and frozen from all the world.
The Humber Seafood Group.The “Cluster organization”?
Defining a sustainable competitive advantage
Structuring actions to
build the new value chain
Setting the future
challenges
5-8 months
First meeting
Interviews with companies and
institutions
Second meeting
Benchmarking tripsBuyer interviews
Strategy meetings
Third meeting
Action lines task groups
Setting the strategy (the CRI)
How to do it?
Example: The Humber seafood
What How
1 Analyze why their margins were lower
5 forces industry analysis
2 Identify business with higher margins
Strategic segmentation
3 Learn from more advanced buyers
Advanced BPC and value chain
4 Build sustainable barriers to competition
Local cluster diamond
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Example: The Humber seafood
Margins squeezed by:Asian new entrantsEuropean industry overcapacityLow cost substitute protein
Weak postioning:Price sensitivityPowerful retailers concentrating furtherLimited suppliers
Attractiveness: FrozenHigh volume/low margin business
Margins Positioning
Example: The Humber seafood
What How
1 Analyze why their margins were lower
5 forces industry analysis
2 Identify business with higher margins
Strategic segmentation
3 Learn from more advanced buyers
Advanced BPC and value chain
4 Build sustainable barriers to competition
Local cluster diamond
18
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Example: The Humber seafood
Higher margins:Logistics act as barrier to entry“Local” competitionFew substitutes for healthy protein
Stronger positioning:Consumer demand for freshnessTraceability increases supplier partnering
Attractiveness: Fresh Ready MealsHigher margin large niche business
Margins Positioning
Example: The Humber seafood
What How
1 Analyze why their margins were lower
5 forces industry analysis
2 Identify business with higher margins
Strategic segmentation
3 Learn from more advanced buyers
Advanced BPC and value chain
4 Build sustainable barriers to competition
Local cluster diamond
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Identification of H-E-B, leading fresh retail chain in 2003!
Example: The Humber seafood
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Based in Houston, Texas“Retail Excellence Award” by “Supermarket News”, prestigious US food industry trade publication
Outstanding Seafood Departmentfast growing department in the retail chain for the last 8 years (10% per year)
Responsible: Mr Catanzarointernationally recognised: International Ground Fish Forum (Barcelona, Oct. 03)
Example: The Humber seafood
H-E-B, leader fresh food retail chain
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No
ve
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Wide selection: offering more than 120 species
HEB Seafood department
Flown freshdisplaying the catching place and the transport method
HEB Seafood department
18
No
ve
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Relevance of further prepared– Fresh, – Filleted, cleaned…– Breaded,– Coated,– Pre-cooked,– Ready-meal,– Ready to eat (take
away)
HEB Seafood department
18
No
ve
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Providing educational information...
HEB Seafood department
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... and offering in-store demontrations and cooking lessons
HEB Seafood department
Example: The Humber seafood
What How
1 Analyze why their margins were lower
5 forces industry analysis
2 Identify business with higher margins
Strategic segmentation
3 Learn from more advanced buyers
Advanced BPC and value chain
4 Build sustainable barriers to competition
Local cluster diamond
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Example: The Humber seafood
Inbound logistics:
Operations:
Product Development (R+D)
Outboun
d logistics:
Marketing and
sales:
Afsales:
General Administration
Procurement
Present Value Chain:
Frozen fish sold to large supermarkets according to their specs.
Example: The Humber seafood
Inbound logistics: Operations:
Product Development (R+D)
Outbound logistics:
Marketing and sales:
After s
General Administration
Procurement
Value Chain needed for the new strategy:
Fresh Ready meals developed for the UK and abroad
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HUMBER: READY MEAL DEVELOPMENT
ICELAND: FISHING AND PRIMARY PROCESSING
HOLLAND: PERISHABLE DISTRIBUTION
Example: The Humber seafood
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8000 producers
1500 wholesalers/exporters
AuctionsGrimsby Fishgate
Catching
Processing
Dutch flower cluster Proposed Humber Seafood Exchange
Example: The Humber seafood
Humber Seafood Exchange
Example: The Humber seafood
Inbound logistics:
Operations:
Product Development (R+D)
Outboun
d logistics:
Marketing and
sales:
Af sales:
General Administration
Procurement
Inbound logistics: Operations:
Product Development (R+D)
Outbound logistics:
Marketing and sales:
After sale service:
General Administration
Procurement
Air
po
rtfr
esh
hu
b
Seaf
oo
dEx
chan
ge
New
pro
du
ctd
evel
op
men
t
Market ?
Hull Logistics Institute
Example: Cluster development in the UK
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Seafood heroes scoop top awardFriday, March 26, 2010, 06:30
…
It beat off aerospace, biomedical, automotive and health and life sciences nominations from the North West, West Midlands and East Anglia.
At a gala ceremony at London's Lancaster House, leaders of the sector Wynne Griffiths CBE and Simon Dwyer picked up the award.
Example: Cluster development in the UK
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Grimsby is the major concentration of the Humber processers, having been left a fantastic legacy from the fishing industry, echoed on a smaller scale in Hull. That is now built on with a knowledge base that has seen supply chain infrastructure, sustainability and productivity reach best-in-class.
It has moved on from simply trading volumes to take in health and nutrition, shelf-life advancement and even by-product opportunities, with business working closely with Grimsby Institute and other key partners.
Scunthorpe InquirerFriday, March 26, 2010,
Changebusiness?
Not enough with cluster collaboration
How to do it?
First move up to better business, then collaborate
X
How to do it?
But, how?
How to do it?
X
ATTITUDE BELIEF BEHAVIOUR
t
MO
TIV
ATI
ON
By psichological group dynamic process at cluster level
How to do it?
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Defining a sustainable competitive advantage
Structuring actions to
build the new value chain
Setting the future
challenges
5-8 months
First meeting
Interviews with companies and
institutions
Second meeting
Benchmarking tripsBuyer interviews
Strategy meetings
Third meeting
Action lines task groups
Setting the strategy (the CRI)
How to do it?
How?
18/
11/
20
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Proven methodology codified and tested by local teams all over the world, in more than
200 cases along 18 years
The response from Europe
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The response from Europe
44
Thank you for listening!
[email protected]@competitiveness.com