Analysing the Competitiveness of Ghanaian Textile and Garment Industries Through Porter’s Five Forces Framework

Purpose: The study aimed to assess the competitiveness of specific sectors within the Ghanaian textile and apparel industries. The competitiveness of these industries was evaluated using Porter's Five Forces framework, which examines the threat of new entrants, the intensity of rivalry, the bargaining power of suppliers and buyers, and the threat of substitutes. Design/Methodology: Employing a qualitative approach with purposive sampling, this study focused on two pivotal textile and garment sectors. Structured interviews were conducted with industry stakeholders, and a thematic analysis was applied to the collected data to derive meaningful insights. Findings: The research uncovered a myriad of challenges faced by Ghana’s textiles and garments industries, stemming from both domestic and international sources. These challenges include the influx of imported second-hand clothing, the illegal smuggling of pirated textiles into the country, escalating production costs, outdated technologies, inconsistent government interventions, and the repercussions of a global economic recession. Collectively, these factors have rendered these industries, particularly the textile sector, less competitive in the marketplace. Practical application: Despite being a significant component of Ghana’s manufacturing sub-sector, the textiles and apparel industry lacks a dedicated policy framework. Therefore, the study’s findings offer crucial context regarding how prevailing challenges and opportunities affect the industry’s competitiveness, serving as valuable guidance for future policy-making decisions. Originality/Value: This framework seeks to boost investment in sectors such as apparel and textiles while promoting import substitution to leverage opportunities arising from the COVID-19 pandemic.