Based on the application of Porter's Model for National Competitive Advantage to the state of Tamil Nadu, the author established four unique characteristics about India. These are: Tamil Nadu is India's southern gateway; Indian consumers are very price sensitive; Indians have links somehow everywhere; and India thrives on contrasts. These attributes were further distilled to arrive at three 'stones' that can pave improvements to the Indian passenger car industry, namely: 'Cornerstone', being the need to improve local propensity to earn; 'Stepping Stones', being the need to intensify engagements with regional groupings like the Indian Ocean Rim (IOR), South Asian Association for Regional Co-operation (SAARC), Bangladesh, India, Myanmar, Sri Lanka and Thailand Economic Co-operation (BIMSTEC) and the Association of South East Asian Nations (ASEAN); and 'Flintstone' being Tamil Nadu as an auto hub to ignite entrepreneurship and innovations within the Indian passenger car industry. In essence Porter's Theory on National Competitive Advantage states that prosperity depends on environment, not endowments. His Diamond Model helps identify the productive clusters that can support such wealth creation. This study bridges the gap between identification and implementation with an 'International Management Grid' that divides action agenda in accordance with structure, strategy, culture and control. This matrix is bounded by classification of items according to urgency and importance, whereby delegation, empowerment, tact and leadership would be emphasized accordingly. The central thesis of this study is that wealth creation can be initiated by a progressive location in a country through the cascading effects of a high growth industry. With faster physical and communication connectivity and increased global concerns for security and health, India's major challenge is to associate her passenger car industry with: Speed in sustaining human relationships; trendy yet affordable replacements instead of renewal repairs; and life-long learning for skills that ensure employment and employability. A permanent Exhibition Centre is recommended to especially showcase new developments in textiles, leather and security technologies for cars. In addition, a virtual Auto Centre of Excellence, managed as an internet platform based in Tamil Nadu, can help international members of the industry to upgrade and research on skills that ensure individual employment and employability through a life-long knowledge management and certification process. A unique post-sale advantage of cars made in India can be the guaranteed inspection after five years to replace or overhaul vehicle parts in franchise centres located throughout India and overseas. These franchises will help train Indian youths through an honour code of 3-in-1-youth mentorship scheme. Those who have benefited from working in these franchises would be obliged to mentor three other youths within five years after completion of their own mentorship. All these initiatives can start with Tamil Nadu because she is already an automotive manufacturing hub, a southern IT centre and an export gateway. This study has reviewed criticisms on Porter's Model, especially from Krugman, Dunning, Narula, Rugman and D'Cruz as well as Davis and Ellis. Although the model has been applied to developing economies like Korea, Venezuela, Turkey, Phillippines and even India, this study is different. None of the previous academic exercises using Porter's Model has an implementation format like the 'International Management Grid' as designed and developed by the author. The Delphi Research Technique in accordance with the Gordon and Helmer Method was adopted for 58 candidates and the results of fieldwork were found to be statistically significant at 0.05 level based on the non-parametric Chi-Squared Test of Independence. The ethical aspects in Porter's Model and the new business rhythm inside India after more privatization remain major unsolved issues of this study. / Thesis (PhDBusinessandManagement)--University of South Australia, 2004
| Identifer | oai:union.ndltd.org:ADTP/284323 |
| Date | January 2004 |
| Creators | Chow, Charles Hoi Hee |
| Source Sets | Australiasian Digital Theses Program |
| Language | English |
| Detected Language | English |
| Rights | copyright under review |
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