Once again, my post elaborates the reality of the wild side of Globalisation and the unethical business happening in the Asian countries due to the Price competition among its products with their competitive nations. The small scale industries in particular are the victims under such Global business solution models where the buying giants in the west are getting more precise and Sharp in attaining their Economies of Scale.
Rather saying this as the competitive world, I would say this as the intelligent world where the entire business is cornered only in terms of competitive prices among the producers and the rest of the business story is nullified. For example, QUALITY was the main success factor in the export business since 2005 where the Price factor comes next to the negotiation of Quality and Cycle time of Production. But the things had changed all in a moment and now arises the Price war between an Exporter in Asia and an Importer in the West. Due to the economic and Political policies among the leading nations in their GDPs, the asian manufacturers are in the game of death by fighting for the survival.
The businesses whose main focus was on quality once, now had shifted towards Price. But then if we analyse, this situation prevails only in Asia but nowhere in the world’s production houses. In the Europe and in the US markets, the business focus is still towards its Business Values and Quality and Differentiation of Products. The game has been changed in the other part of the world.
To tell you the story “ The business management books on [Competition management and gaining Competitive Advantage ] is proving useless to apply it to the asian markets due to the different ball game in the Export market and it s purpose is satisfied to the rest of the markets in the world.
The United Nations having a power to eradicate/levy the preferential agreements creates different market structures and new potential competitors in the world. It is not by letting them to win but making the others to lose. When the buying nations has the unity towards creating the GSPs(Generalized System of Preferences) codes towards the Producing nations, the competition being created among those producing nations obviously dislodges the unity among its peers politically and economically. It has turned out to the like the game of ‘Survival of the Fittest’. And it is practically impossible for these Exporting Asian Nations to unite as a single body in terms of preferential treatments and regimes.
As a result, the smartest supplier who once ruled the market with genuine products has to struggle to survive in the market due to such deliberate policies and agreements leading to the struggles in the International markets. Even though the enhancement of Product and R & D are becoming the tool to fight this issue over export business, the results weren’t convincing enough to sustain the future developments in the competition. Therefore a nation whose 55% of its GDP relying over the Exports goods has plummeted since last year in the International Market and now it is fighting to keep its product cheaper and not emphasizing Quality and Research.
This is not the end of the story. If such kind of International Practices prolongs, there will be the generation of new potential threats from the new entities who goal would be destroying the market’s game and rules for their own survival. Its been like in the world of forests by defending oneself against its cannibalistic neighbors. Once the united neighboring nations have now become the dislodged piece of a threat. This squeal is not just from the author but from everyone who is in the business experiencing the hard times which they are not responsible for the cause. Well, it would take sometime to gather unity prior to another major change in the market, an ethical design of systems are needed to carry the world forward with evenly distributed rights and claims towards the uncertainties.
Picture at the top - Extracted from the website of St. George's Student Union
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