GLOBA

L

AND
COMPETITIVENES
S

STRATEGIE
S

FOR

SSIs

PRESENTED
DEBASISH ROUT
BY
MARY SUMITA BARA
SITUN MOHANTY
WHAT IS COMPETITIVENESS?
Competitiveness of an organisation can

be defined as its ability to sustain its long-
term 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

PERFORMANCE

PROCESS
PRESSURE AND
CONSTRAINTS
STRATEGY
DEVELOPMENT

ASSETS

COMPETITIVE
PRIORITY
THE GLOBAL COMPETITORS
TOTAL NUMBER OF AVERAGE VALUE OF
SMES 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

e
ASSETS OF INDIA
Abundance of natural resources


Extensive Industrial infrastructur

Large pool of technical manpower

Highly capable entrepreneurs and managers

Low cost of labour

INDIAs COMPETITIVE
ADVANTAGES
Same type of plant

technology
& machinery

and

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



WHY ?
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?

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
knitwear sector is rooted in a localised tradition
Tiruppurs
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