1. Direct technical assistance from the Project appears more market oriented and this isn’t contrary to best practice intervention.
JOBS provided initial technical assistance and skills training in coordination with multiple lead firms to develop of skilled shoe producers for the group. Since then, Apex and other lead firms have realized the benefit of strategic investment in providing embedded forms of BDS to cluster members through backward linkages, such as conducting market research , competitiveness strategy and stimulating supplier-provider links along the supply chain.
2.Direct technical assistance was un- justified in facilitating market linkages.
Facilitators apply a variety of demand- and supply-side interventions to overcome market inefficiencies and constraints. Direct service provision is typically left to BDS providers as a business transaction. The different approaches undertaken by the JOBS project. Under the Modhupur and Apex Footwear the JOBS Project applied direct technical assistance to the lead firms and producer organizations with producer group formation and producer-market linkages.
3.Apex Adelchi Footwear Limited (AAFL) has unfavorable market and operating environment.
2006 has been a very eventful year in Bangladesh and for AAFL, as they have had to face and counter a diverse set of market conditions. there was an artificial price hike, which remains unabated till today. Globally there has been also a price hike for raw cow skins due to increased demand and static or even diminishing supply, but the cost increase of Bangladeshi cow leather has been abnormal. It has impacted profitability,delivery and supply has also been very erratic.
4.An effect from the late arrival of export orders.
It reduced their lead times to turn around and produce the shoes for export, as delivery dates remained the same. This forced them to use air freight much more aggressively in importing required components and tools