The Global Competitiveness Report, first published in 1979, measures competitiveness of countries and economies.
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National Round Table on the Environment and the Economy (1992 Report) On November 4, 1991, the Foreign Policy Committee of the National Round Table on the Environment and the Economy hosted a co...
PRESENTED BY DEBASISH ROUT MARY SUMIT SUMI TA 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
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INTERNAL FACTORS
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EXTERNAL FACTORS
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INFLUENCES OF ENTREPRENEUR
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FIRM’S LONG TERM PERFORMANCE
FRAMEWORK FOR COMPETITIVE ANALYSIS COMPETITIVE PRIORITY
ASSETS STRATEGY DEVELOPMENT PRESSURE AND CONSTRAINTS
PROCESS
PERFORMANCE
THE GLOBAL COMPETITORS TOTAL NUMBER OF SME’S
AVERAGE VALUE OF EXPORT PER COMPANY IN USD
SINGAPORE
9296
6.74 million
MALAYSIA
28,840
2.05 million
SOUTH KOREA
45000
2.9 million
INDIA
4000
2.6 Million
ASSETS OF INDIA •
Abundance of natural resources
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Extensive Industrial infrastructure
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Large pool of technical manpower
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Highly capable entrepreneurs and managers
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Low cost of labour
INDIA’s COMPETITIVE
ADVANTAGES •
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Same type of plant & machinery and technology Advantage of indigenous sources of raw materials at much cheaper rates Labour cost ¼ 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 SME’s 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 . •
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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.
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Growth conducive organisation culture.
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Relationship with suppliers and customers.
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Employees’ awareness and commitment for competitiveness.
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Higher Level of IT applications.
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Higher level of investment in R&D Technology, HRD and Marketing.
Pressures & Constraints •
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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 •
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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
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Production
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Marketing
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Material Management
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Equipment maintenance
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Quality Control Department
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Lack of Technical Discipline
STRATEGIES TO MEET THE GLOBAL COMPETITION •
CLUSTER DEVELOPMENT APPROACH
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ACHIEVING BUSINESS EXCELLENCE
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DEVELOP CAPABILITIES
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GLOBAL NICHE STRATEGY
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BY-PASSING
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CO-OPERATION STRATEGY
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FLEXIBLE SPECIALISATION
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INSTITUTIONAL SUPPORT
CASE STUDY •
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THE KNITWEAR CLUSTER OF TIRUPPUR - a small town in the Southern state of Tamil Nadu. Tiruppur’s producers clearly benefit from the availability of local cheap labour, the overall competitiveness of Tiruppur’s 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.
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