Global expansion through multi-market strategy: The case of textile industry

Abstract

An industry grows when it has the market to grow coupled with the necessary ingredients of material, labour and technology. All of the ingredients come at a price. In today's interconnected world these ingredients have changed the dynamics of the way industry structure evolves. The last century has shown that many industries have taken the path of globalization to expand their markets to grow. It was favoured by factors such as opening up of global markets and formation of World Trade Organization (WTO, in 1995). We have witnessed the good side of globalization so far, until 2007, before the world was grappled by financial crisis. Now every firm weighs the double-edged sword of globalization: Growth versus the risk of Interdependency and Interconnectedness. The present work is intended to explore the various facets involved in the evolution of an industry in a globalized, interdependent and interconnected economy. Through this study I bring out the reasons for globalization, factors affecting globalization, the regulations applicable in a global scenario, strategic steps to maximize India’s trade through multimarket expansion. The industry used to bring out the different facets of the work is the Indian textile industry.