a scenario that is turning highly competitive,
the name of the game is effective strategy formulation.
a company strategy is all about moving towards
the attainment of its vision and the means it
employs in order to get there. In order to determine
how one gets there, one needs to know where
one is at present, which involves examining
one's existing strengths, weaknesses, opportunities
and threats - what we commonly know as SWOT,
Strengths could be brand image, market network,
access to international markets, technology
in a certain area, etc. and weaknesses could
be for instance, the high turnover of manpower,
short life-cycle of products, new products in
the markets, competitors emerging in the market
due to low entry barriers, and so on.
strengths and weakness is easier said than done,
as one usually tends to be subjective in such
matters. In order to get a fair and objective
picture of one's strengths and weaknesses, the
best approach would be to benchmark one's own
position vis-à-vis others in the same
or in a similar industry. This benchmarking
exercise is recommended as a tool for understanding
one's relative strengths and weaknesses, rather
than for improving one's position with reference
to those one has benchmarked with.
thus understood one's strengths and weaknesses,
one should look at one's opportunities and threats
that are being posed at an accelerated pace
by the era of globalisation and liberalisation.
Government policy changes in India have thrown
open opportunities in the form of the freedom
to enter into joint ventures, the freedom to
set up projects overseas, access to international
clients etc. Opportunities have also been thrown
up by the media explosion; people are now aware
of and desire a variety of products and services
most people have recognised these opportunities,
new threats and challenges are thrown up in
the form of competition, with high quality products
produced at scales that are economic, and hence,
sold at lower prices. These threats will become
even more acute as protection barriers are continually
reduced, now that India, like many other countries
is a part of WTO.
a clear understanding of SWOT will enable the
how-to part of the strategy to emerge clearly.
And in order to implement the strategy, one
would have to develop specific action plans.
For instance, a company could follow a strategy
of entering foreign markets and setting up joint
ventures in other countries, just a multinationals
come to India. Joint ventures can be used to
pursue a defensive strategy - for upgradation
of quality with international forms, or an offensive
strategy - to capture lucrative shares in competitive
markets overseas and meet the competition on
their 'own turf'.