Value Addition Strategy

Parthasarathi Banerjee

Chapter 5 in The Indian Software Industry, 2004, pp 133-170 from Palgrave Macmillan

Abstract: Abstract The Indian software dilemma has been elaborated in the previous chapter. An Indian firm needs to become large and use a strong marketing network to present its products in the global market through a forceful strategy. Such a firm must make strong commitments and substantial investments in durable assets, including manpower. However, if the firm invests in durability and makes strong commitments and, by doing so, grows large in the current market, it would possibly lose its ability to make fluid strategic moves, its asset liquidity, and strategic umbrella cover for its structure. Durability and commitments, especially for the competition in the current product markets, would demand from this incumbent firm that it grow structural knowledge wealth. Knowledge wealth is enhanced through vigorous acquisition of sticky information on both the current and potential structures of the competitors and transforming that sticky information into organizational knowledge wealth. This commitment to durability, products, current market and competition alone ensures that this firm can offer currently forceful strategic moves and acts. A strong commitment to the current competition, products and such like, however, severely limits ignorance (because ignorance is liquidity), which proves to be an asset to the speculative innovator and to the maker of an apparently insignificant yet potentially significant strategic move.

Keywords: Core Competency; Demand Management; Incumbent Firm; Strategic Knowledge; Structural Switching (search for similar items in EconPapers)
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-00104-6_5

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DOI: 10.1057/9780230001046_5

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