The predominant patterns of competition in business market are based on cost and quality of products or services offered by different organisations. The companies from Japan, German, etc. are focused on quality while Chinese organisations are known for lowest cost producers. Therefore Indian MSMEs need to establish themselves in a different domain.
This new front is innovation based competition. The customer markets are actually segmented. Each segment size is not big enough for Chinese companies to customize their products. Even quality focused companies show less interest for these small segments. Therefore a latent potential exists for Indian companies to introduce innovative products for these segments. One mechanism to produce innovative products is to form virtual enterprises.
Virtual Enterprise is defined as a temporary collaboration
among compatible organizations and people connected by information &
communication technology to share
resources, risks, responsibilities, rewards through effective and efficient
solutions to fast changing business
opportunities.
For more details about virtual enterprise, contact the author. Chinmay Das
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