Indian Firms Globally Superior than the Chinese

Bangalore: Indian companies out-perform their Chinese counterparts, when it comes to the international business sphere. According to a study done by the Indian Institute of Management, Ahmedabad (IIM-A), differentiation competitive strategies of Indian companies help them fare better than their Chinese counterparts reports Vinay Umarji of Business Standard. Chinese firms on the other hand employ low cost strategies.

The research is called 'International Competitive Strategy Choices: Comparing Firms in China and India.' It was worked upon by Rakesh Basant, faculty member of IIM-A, Xie-Lin Liu, Monica Plechero and Ping Lv. This study was based on an association among Indian, Swedish and Chinese researchers, in order to get an insight into the internationalization strategies of India and China, the two biggest emerging nations. Data for the study was collected from Pune and Beijing.

The research highlights, "When comparing the two countries, our main findings show that even though, in their respective domestic markets, Chinese firms seem to be more specialized in differentiation strategy than Indian firms, in the international market the proportion of Indian firms that are pursuing competitive strategies, and in particular differentiation strategy, is higher. This may partly be due to the fact that the Chinese domestic market is much larger than that of India and seems to be maturing faster."