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Challenges Of Quality Based Competition For High Tech Product Market

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INTRODUCTION
The automotive industry in India is one of the largest automotive markets in the world, previously one of the fastest growing markets globally. It started out as a small venture in the 1940s but witnessed a rapid growth with the entry of some big manufacturers like Mahindra & Mahindra and Maruti in mid and late 1900s. In 2000, this industry became an important sector of the Indian economy and a major foreign exchange earner for the country.
The Shiv group was one of the largest industrial groups in India at this time established in the early 1900s. Having over 20 companies and a turnover of US $1 billion, they were market leaders in the sectors like tea, auto parts, electronics, finance, pharmaceuticals etc. In 2000, Shiv industry was going through a rough patch experiencing a steep fall in its earnings. The key reasons were its inability to cope up with the changing needs and competitive scenario due to internationalization of this market. The challenges of quality based competition in high-tech product market and price based competition in low-tech product market became a big concern for Shiv’s management.

PROBLEM STATEMENT AND POSSIBLE SOLUTIONS
PROBLEM 1
Globalization of automotive industry
Although Shiv industries excelled in automobile industries, but the changing global trends in this industry was a key concern for Shiv’s management. Due to internationalization of this market, the foreign auto manufacturers were rapidly replacing the local

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