Michael E Porter discovered a new theory that recommended going above comparative benefit to the competitive gain of a nation. It expressed a productive idea of competition that embraced compartmentalised markets, distinguished products/services, technology variations, and economics of scale. This new idea had gone past cost and justifies why companies from some nations are better than others at creating benefits based on quality, features, market reaction, speed and product improvement.
Because some of the factors of cost benefits, the Indian apparel sector provided relative gain for the low-end price point products. But it could not realise those benefits that could have supplied this sector the necessary competitive lead. A nation can maintain her successful high-income status only by racing with unique, discriminated products or services and that is what helps in creating the image for nation. It is the growing impact of the performance of organizations that promotes the brand image for a country. Moreover, distinguished, contemporary products are less responsive to price rises. Indian textile and apparel sectors were found to expand diversely when it could move its pricing southwards, either due to rise in government financial aids or driven by currency devaluation, which are neither extraordinary nor sustainable.
As far as the international economy remains comparatively open, countries will progressively involve highly focused performance in a worldwide production chain. With a view to choosing specific kinds of products and techniques of doing things, nations are inclined to promote capability in their companies and public institutions.
In the same fashion, with the intention of sourcing and production, creative design houses of Paris, New York and Italy joined hands with Indian apparel production companies having competitive benefit; this could prove profitable for both.
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