Innovation and development of high value chains

Innovation and development of high value chains

Earlier in this series, we said, we will address issues such as reducing the U.S. dollar on the domestic inflation and currency appreciation to reduce the negative profit impact of macroeconomic factors in the problem. We deal with some remedial measures to strengthen anti-rupiah and rising domestic inflation, the proposed short-term to medium term research.

Let us now look at the long-term strategic choice of some close attention. Before I speak, I quote Peter Drucker, famous marketing guru, who said: "Business has only two basic functions – innovation and marketing." Although the market has significant development in the Houdeluke time and technology, especially those with the World Wide Web are redefining the boundaries and scope of modern marketing, has a certain power statement.

As we said in previous articles, such as inflation and currency appreciation of the domestic macroeconomic factors, a threat to business survival concerns, if price competition. This may be because compared to China, Indian companies dedicated to true, the Indian manufacturing industry is certainly not the cheapest. Inflation and currency fluctuations in the economy of capitalism and democracy everyday phenomena, such as India. The point here is that smart companies should learn how to establish long-term strategy for each currency appreciation or inflation increase in security, profit need not be beaten.

In other words, if an enterprise's core competitiveness is price, then any fluctuation of price, affecting profits.

This is not to say that price competition is a crime. But to successfully do this, companies need a strong, well-functioning and efficient supply chain. Construction of this supply chain, for example, one of the world's largest retailer, Wal-Mart to have a learning curve, need economies of scale. But in today's world, to achieve this feat, the company needs in a command position, complete the challenge.

What is the solution? Reduce the reliance on price and operating margins from the frequent changes in command of major macro-economic factors, the bottom line. Here is, we believe that Drucker's recommendations can be useful.

To this point, we will focus on "innovation" from the view of sustainable competitive advantage. In addition, we will redefine the range of your target audience sales.

For smaller settings window, probably sustainable competitive advantage of innovative methods and direct their products, reasonable land prices. Innovation is not limited to the creation of new products, but also new ways of managing the business. Our approach in the Indian textile production that have:

Design expertise
Customer intimacy
Higher quality standards
The stability of the supply chain
In other competitive factors, such as design expertise, close customer relationships, higher quality standards, the stability of the supply chain far more than the price competition and challenges, because these are mainly related to the strategic and long-term senior management.

In our next article we will discuss each of these strategic choices and how to help companies can command a premium. Beware of this for the maintenance of India's textile manufacturing business insight space.