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Emotion has been at work since the DPP was written in 2005 and defines the defense offsets. Since then, each revision of the DPP has created waves of hope in Indian industry. However, the impact of the DPP (including revisions) on corporate finance in general and the Indian economy in general has yet to be firmly established.<br><br>The main objective of the policy is to establish the national defense industry and become self-sufficient by reducing imports, thus promoting the economy and employment. While some companies have taken advantage of early shippers, others have been caught up in meeting their customers' "low cost" expectations, resulting in the creation of red oceans and low depletion and long-term sustainable business.<br><br>It is time for these Indian companies trapped in the low-cost dilemma to set a long-term vision, precisely position themselves in the value chain, develop a core competition strategy with a Western counterpart, and plan their launch in global A&D. A market that enters the long-term benefits of universal growth and a much larger market compared to a market created only by defense offsets.<br><br>With my experience working in the global A&D sector, we recommend using the following framework to outline your strategy.<br>Positioning:<br>Proper positioning in the value chain is the first and most important characteristic of a successful strategy. Companies must have a good understanding of the global A&D markets, the structure, the geopolitical factors that affect the business (or may affect them in the future), the competition, and the common value/benefit associated with each position alternative. The main thing is to assess the breadth and depth of the market and not limit the study to a few prime contractors and Tier 1 clients.<br>
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Beyond off sets: From Low Cost Advantage To Global Market Entry Emotion has been at work since the DPP was written in 2005 and defines the defense offsets. Since then, each revision of the DPP has created waves of hope in Indian industry. However, the impact of the DPP (including revisions) on corporate finance in general and the Indian economy in general has yet to be firmly established. The main objective of the policy is to establish the national defense industry and become self-sufficient by reducing imports, thus promoting the economy and employment. While some companies have taken advantage of early shippers, others have been caught up in meeting their customers' "low cost" expectations, resulting in the creation of red oceans and low depletion and long-term sustainable business. It is time for these Indian companies trapped in the low-cost dilemma to set a long-term vision, precisely position themselves in the value chain, develop a core competition strategy with a Western counterpart, and plan their launch in global A&D. A market that enters the long-term benefits of universal growth and a much larger market compared to a market created only by defense offsets. With my experience working in the global A&D sector, we recommend using the following framework to outline your strategy. Positioning: Proper positioning in the value chain is the first and most important characteristic of a successful strategy. Companies must have a good understanding of the global A&D markets, the structure, the geopolitical factors that affect the business (or may affect them in the future), the competition, and the common value / benefit associated with each position alternative. The main thing is to assess the breadth and depth of the market and not limit the study to a few prime contractors and Tier 1 clients. Company Insights: All positioning alternatives should be evaluated with knowledge of the company, such as the company's history, experience, and capabilities. The identification of "capacity gaps" must be identified and corrected to address these gaps and plans resolved over time. The key is to evaluate the learning curve of the company (in the past) and plan its efficiency in the future considering the global competitive scenario. SolutionBuggy Page 1
Beyond off sets: From Low Cost Advantage To Global Market Entry Collaboration Management: Finding the right partner is the next critical element of strategy after positioning. It is important to understand the value that a foreign replica brings, but to evaluate the value proposition that the company offers to the potential foreign partner beyond the domestic business. Once the collaboration is established, it is necessary to define the shared strategic objectives, the review process and description of the performance management processes. Maintaining collaborative interfaces is critical for continuity and effectiveness over time. A strong collaborative management capacity will bring a sustainable competitive advantage to the company. Offset Strategy: Once the long-term goals and overall strategy are finalized, the company's compensation strategy can be established. Some questions to answer are: How do we use a foreign partner to gain an advantage over competitors in compensation transactions? What is the business plan to start the direction on the right track? What type of collaboration (strategic alliances / JV / M and A) fits in the context of government policy? The four-pillar framework above provides basic guidelines and detailed management tools for each aspect of the framework that can be developed and customized so that each company can formulate a successful strategy. We help start-ups to find the right aerospace consultant to develop the best strategy to target the MSME segment in the Aerospace and defense consulting. Learn more about the framework and see how companies have benefited from implementing it by registering on our platform at www.solutionbuggy.com. Company name: SolutionBuggy Email-Id: sales@solutionbuggy.com Mobile no: +916360553113 Website: https://www.solutionbuggy.com/sb/aerospace-consultant.html SolutionBuggy Page 2
