Q) What are the strategic options for firms operating in emerging and

growth stage industries? As the term implies new or emerging

industries refers to a kind of market or industry situation in the
early stages of development and typically with a small no of
players. The industry is characterized by any of the following:
New and unproven market
Proprietary technology
Lack of consensus regarding which of
several competing technologies will win out
Low entry barriers
Experience curve effects may permit
cost reductions as volume builds
Buyers are first-time users and marketing involves
inducing initial purchase and overcoming customer
concerns
First-generation products are expected to be rapidly
improved so buyers delay purchase until technology
matures
Possible difficulties in securing raw materials
Firms struggle to fund R&D, operations and build resource
capabilities for rapid growth.
Strategy Options for Competing in Emerging Industries:
For companies to be able to compete and stay in an emerging
market or industries the following options would be useful:
1. Win early race for industry leadership by employing a bold,
creative strategy.
2. Push hard to perfect technology, improve product quality,
and develop attractive performance features.
3. Consider merging with or acquiring another firm to
Gain added expertise
Pool resource strengths
4. When technological uncertainty clears and a dominant
technology emerges, try to capture any first-mover advantages
by moving quickly
5. Form strategic alliances with

 Companies having related technological expertise or

Key suppliers
6. Pursue new customers and user applications
7. Enter new geographical areas
8. Make it easy and cheap for first-time buyers to try product
9. Focus advertising emphasis on
Increasing frequency of use
Creating brand loyalty
10. Use price cuts to attract price-sensitive buyers
Strategic options for firms in growth stage
a) Drive down costs per unit to enable price reductions that
attract droves of new customers
b) Pursue rapid product innovation to
Set a companys product offering apart from rivals
Incorporate attributes to appeal to growing numbers of
customers
c) Gain access to additional distribution
channels and sales outlets
d) Expand a companys geographic coverage
e) Expand product line to add models/styles to appeal to a
wider range of buyers
Q) Analyze the current situation of corporate
governance in Indian industries
A company that has good corporate governance has a much
higher level of confidence amongst the shareholders associated
with that company. Active and independent directors contribute
towards a positive outlook of the company in the financial
market, positively influencing share prices. Corporate
Governance is one of the important criteria for foreign
institutional investors to decide on which company to invest in.
The corporate practices in India emphasize the functions of
audit and finances that have legal, moral and ethical
implications for the business and its impact on the
shareholders. The Indian Companies Act of 2013 introduced
innovative measures to appropriately balance legislative and

regulatory reforms for the growth of the enterprise and to

increase foreign investment, keeping in mind international
practices. The rules and regulations are measures that increase
the involvement of the shareholders in decision making and
introduce transparency in corporate governance, which
ultimately safeguards the interest of the society and
shareholders.