Analyses of the Competitiveness of Forest Industry in the Republic of Macedonia

Abstract

Background and Purpose: This paper gives a thorough picture of the competitiveness characteristics of the Macedonian forest based industry for the period 1993 to 2006, from its independence to present times. The main purpose of this study is to analyze competitiveness of Macedonian forest industry and the factors that influences the creation and development of competitive advantages. Material and Methods: The study is based on theoretical tool of the Porter`s ''diamond'' model of the national competitiveness using four linked factors like: factor conditions, demand factor, firm’s strategy, rivalry and structure and the forth one, related and supported industries. The method used is case study which includes collection of quantitative data, gathered through documentation, archival records, academic literature, publications, journals and websites. Results and Conclusion: The analyzes has shown that the main strengths of Macedonian forest based industry are due to the existence of favorable factor conditions, as a cheap labor and energy cost-compared with region, good geographic location and relatively decent transport infrastructure. Weaknesses come from the lack of infrastructural investments (lack of capital), inappropriate management strategies, outdated machinery, low productivity and low value added products. To achieve better results industry should be organised in a better way and further investments in modern technologies and human resources are necessary.

Keywords

• forest industry
• competitiveness
• demand
• firm condition
• national market