GLOBAL COMPETITIVENESS

AND STRATEGIES FOR SSIs

PRESENTED BY
DEBASISH ROUT MARY SUMITA BARA SITUN MOHANTY

WHAT IS COMPETITIVENESS?
Competitiveness of an organisation can be defined as its ability to sustain its longterm performance better than its competitors in the market. It can not be judged only by certain financial performance measures

FACTORS AFFECTING COMPETITIVENESS

INTERNAL FACTORS
EXTERNAL FACTORS INFLUENCES OF ENTREPRENEUR FIRMS LONG TERM PERFORMANCE

FRAMEWORK FOR COMPETITIVE ANALYSIS

ASSETS STRATEGY DEVELOPMENT PRESSURE AND CONSTRAINTS PROCESS COMPETITIVE PRIORITY

PERFORMANCE

THE GLOBAL COMPETITORS

TOTAL NUMBER OF SMES AVERAGE VALUE OF EXPORT PER COMPANY IN USD
6.74 million

SINGAPORE

9296

MALAYSIA

28,840

2.05 million

SOUTH KOREA

45000

2.9 million

INDIA

4000

2.6 Million

ASSETS OF INDIA

Abundance of natural resources

Extensive Industrial infrastructure Large pool of technical manpower

Highly capable entrepreneurs and managers

Low cost of labour

INDIAs COMPETITIVE ADVANTAGES

Same type of plant & machinery and technology Advantage of indigenous sources of raw materials at much cheaper rates Labour cost th or 1/5 th of the labour cost as compared to South East Asia, USA & Europe. World class engineers and managers

THE GREAT PARADOX

In spite of so many advantages, our SMEs are not able to compete on quality and cost with SMEs in other countries

WHY ? WHY?

CASE STUDY
SL Limited (SLL) - was established in 1985 in technical collaboration with Denso Corporation, Japan to manufacture automotive air-conditioning systems . Presently, SLL has about 70 % market share in India. Capability to manufacture compressors, condensers, heat exchangers and all the connecting elements that are required to complete the AC loop

Assets
Lower Cost than competitors. Growth conducive organisation culture. Relationship with suppliers and customers. Employees awareness and commitment for competitiveness. Higher Level of IT applications. Higher level of investment in R&D Technology, HRD and Marketing.

Pressures & Constraints

To reduce cost To reduce delivery time To improve quality To cater frequent changes in supply schedule. To increase range of products. To deliver in small lots Shortage of technical manpower Under utilisation of capacity Poor infrastructure for training Unreliable vendors Lack of quality consciousness Lack of support from customers Poor R&D infrastructure Poor financial position.

Competitive Priorities
Improvement in Product quality Effectiveness of value chain Reduction in Product cost Leaner organisation structure Timely delivery Labour productivity Flexibility in production system Total productive maintenance Vendor development Environment protection Human resource development. Employees welfare

REASONS FOR POOR COMPETITIVENESS

Lack of Interest by owners Production Marketing Material Management Equipment maintenance Quality Control Department Lack of Technical Discipline

STRATEGIES TO MEET THE GLOBAL COMPETITION

CLUSTER DEVELOPMENT APPROACH ACHIEVING BUSINESS EXCELLENCE DEVELOP CAPABILITIES GLOBAL NICHE STRATEGY BY-PASSING CO-OPERATION STRATEGY FLEXIBLE SPECIALISATION INSTITUTIONAL SUPPORT

CASE STUDY
THE KNITWEAR CLUSTER OF TIRUPPUR - a small town in the Southern state of Tamil Nadu. Tiruppurs producers clearly benefit from the availability of local cheap labour, the overall competitiveness of Tiruppurs knitwear sector is rooted in a localised tradition of cotton weaving and a production organisation system, based on sectoral clustering. The textiles sector accounts for the bulk of manufacturing employment in Tiruppur. Export to many foreign locations.

THANK YOU