The reality of India: folding constraints into business strategy

摘要

Driving growth in India requires a unique strategy. Traditionally, constraints have been perceived as entry barriers. But these same constraints may be looked at as opportunities to create a winning business model. With aging populations and slow economic growth in the developed countries, the future growth markets are likely to lie in countries like India and China. Tapping into this growth potential will require rethinking global strategy in terms of the unique opportunities that these countries offer. There is likely to be a first-mover advantage for companies that are able to tackle these challenges. This can help create a business with sustained returns over a long period of time.rnA constraint-driven strategy needs a deep understanding of the constraints that apply in developing, producing, and distributing products. The strategy will vary with whether the constraint binds the company or the customer. The innovation designed to overcome these constraints can be in products or processes or both. At a broad level, these strategies can be worked out for industry segments but each individual company may need to identify the specific constraints binding it and set its priorities accordingly.rnThe framework presented in this paper can be used to think beyond the obvious and create a parallel pipeline for innovations. Global product and process innovations do have applicability in the Indian market. However, merely replicating global products and processes in India will provide limited growth opportunities. The unique Indian context opens up opportunities for new product and process innovations looking through the lens of constraints.