20 MARKET POSITIONING: AFGHANISTANS POTENTIAL TRAJECTORY, AVOIDING THE MOVE TO THE MIDDLE India is moving to the middle of the market, competing on a
{"Image DocumentName": "MARKET POSITIONING: AFGHANISTAN\u2019S POTENTIAL TRAJECTORY, AVOIDING THE MOVE TO THE MIDDLE", "Image ImageDescription": "India is moving to the middle of the market, competing on a mix of design innovation & cost. Afghanistan is unlikely able to compete against India in these two areas in the near term. At the same time, China may be redrawing the cost axis of the productivity frontier. Excellent. Cost. Poor. Differentiation. Intense competition in the low-cost, low differentiation quadrant makes it unattractive. India. China. Afghanistan. Child labor: Became big issue for India in 1995, and now children are seldom used (though some may be in Jaipur). This is particularly true for tufting, which requires an adult to work the tool. Brand: Indians stressed Iran\u2019s brand as its key advantage (not the quality of Persian carpets). In this regard, India has an edge over China (more exotic). Institutional capacity: All Indian carpets go out with specifications on inputs, etc. Afghanistan cannot succeed in the near term with a cost-focused strategy. This requires it focus on differentiation as the basis of its competitive position. The Indian carpet industry is a dynamic and innovative competitor \u2013 many years ahead of Afghanistan. Competition is also further increasing with the introduction of good machine-made carpets from China, which may be pushing out the productivity frontier. The weak business environment in Afghanistan is less supportive of efficient production than many other countries, therefore cannot support a low cost strategy.1. This forces the strategic choice that the Afghan carpet industry can make, precluding businesses from pursuing a low-cost strategy as the base of their competitive advantage. 1. For example, according to the World Bank, Pakistan has ten times more road coverage than Afghanistan, and India has 30 times that number.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}