Contemporary business challenges - Strategies for global competitiveness

Abstract

Ever since the advent of business activity in the society centuries ago, profits and challenges have become natural concomitants of business. However, after the dawn of new economic policies in India since 1991, several new challenges emerged that have targeted and shook the very roots of even big business houses. As a befitting response, Indian business firms started devising strategies focused on competitive advantages that bestowed them an edge to emerge as globally competitive entities.In the light of the above, the present paper is designed with the purpose of analyzing the contemporary business challenges and the strategic responses of the companies for enhancing their global competitiveness.The paper is structured in three parts: The first part throws light upon the new emerging challenges faced by Indian business firms. The second part examines Porter's Diamond as a model for global competitiveness. The third part reviews four global strategies deployed by the companies venturing into the international trade.It is concluded that, contemporary challenges, though are formidable, can be successfully combated with a strong conviction on the part of top management. The desire of a company to achieve global competitiveness together with the sustained competitive advantages and core competencies built on cost and differentiation will make companies attain global competitiveness.