Business Strategy
1.0 Introduction
2.0 Liberalization and the context of business strategy
2.1 What is liberalization?
Liberalization refers to the relaxing of rules and regulations or policies of a government in a country. According to the scenario, in 1991, the Indian economy has been opened as a result of liberalization.
2.1.1 How did it affect the Indian automobile industry?
The Indian government continued to have a closed economy until 1991. By then Maruti Suzuki was the market leader of the automobile industry acquiring a market share of nearly 83.1%. But however the government decision of opening the economy in 1991 had significant affects on Indian automobile companies such as Maruti Suzuki.
The main affect was the entrance of foreign competitors that made the industry very competitive and the situation made it difficult for domestic companies such as Maruti to retain its market share, which is clearly reflected by the drop of market share from 83.1% to 60.8%. This will lead to decline in the growth of India’s automobile industry.
However there will be certain advantages on the Indian automobile industry such as the entering of resources from foreign countries which are cheaper than the resources in India. More access to technology will be another advantage to the Indian automobile companies from liberalization.
2.2 Defining the context of business strategy
The prime aim of a business strategy is to provide superior value, differentiation, and core competencies for an organization. (http://jobfunctions.bnet.com/abstract.aspx?docid=90501). Business strategy is a long term plan which adds value, differentiates and identifies key capabilities and capacities of an organization to make the best use of them.
2.3 Importance of Business Strategy
• The strategy shows a direction to the organization to reach company’s vision. • Gives an understanding about rapidly changing environment.
• Helps in
2.0 Liberalization and the context of business strategy
2.1 What is liberalization?
Liberalization refers to the relaxing of rules and regulations or policies of a government in a country. According to the scenario, in 1991, the Indian economy has been opened as a result of liberalization.
2.1.1 How did it affect the Indian automobile industry?
The Indian government continued to have a closed economy until 1991. By then Maruti Suzuki was the market leader of the automobile industry acquiring a market share of nearly 83.1%. But however the government decision of opening the economy in 1991 had significant affects on Indian automobile companies such as Maruti Suzuki.
The main affect was the entrance of foreign competitors that made the industry very competitive and the situation made it difficult for domestic companies such as Maruti to retain its market share, which is clearly reflected by the drop of market share from 83.1% to 60.8%. This will lead to decline in the growth of India’s automobile industry.
However there will be certain advantages on the Indian automobile industry such as the entering of resources from foreign countries which are cheaper than the resources in India. More access to technology will be another advantage to the Indian automobile companies from liberalization.
2.2 Defining the context of business strategy
The prime aim of a business strategy is to provide superior value, differentiation, and core competencies for an organization. (http://jobfunctions.bnet.com/abstract.aspx?docid=90501). Business strategy is a long term plan which adds value, differentiates and identifies key capabilities and capacities of an organization to make the best use of them.
2.3 Importance of Business Strategy
• The strategy shows a direction to the organization to reach company’s vision. • Gives an understanding about rapidly changing environment.
• Helps in