For an increasing number of industries, Indian business is reaching the point of having global advantages on all the four determinants identified by Michael Porter in 1990.
1. Favourable factor conditions with respect to natural resources, skills, capital and infrastructure;
2. demand conditions in domestic markets comparable to that overseas in terms of presence of global players, quality of products, and customer expectations;
3. presence of ancillary industries and supportive skills like finance, banking, and legal;
4. and intensity of competition and aspirations of looking beyond domestic markets.
The four determinants tend to have a bandwagon effect in a country on two counts - one, stoking aspirations among other players as the pioneers in an industry start operating overseas, and two, facilitating creation of suitable conditions in related industries.
Rajnish Karki
Indian Companies in Overseas Markets: Perspectives, Patterns, and Implications
Vikalpa, Oct-Dec 2004
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