This research fo cuses on the economic analysis of an import substitute firm . It studies andrnanalyses the Tabor Ceramic Product Sharing Company (TCPSC). TCPSC is the only IS ceramicrnfirm found in Ethiopia. We examine the value chain and technical characteristics of the firm. Itrngenerates the domestic competitiveness index of the firm in the domestic market. It employs thernunit cost indicator method in measuring domestic competitiveness. The study normalizes therncompetitiveness index. It applies regression to determine the dynamics of the firm'srncompetitiveness, and employs OLS to analyze the impact of the major determinants of therndomestic competitiveness of the firm. It also determines the ceramic product concentration andrncompares the market share of the firm vis-a-vis imports to show the domestic competitiveness ofrnthe firm.