Question

How does microeconomics fit into this definition of Strategic Advocacy?

Answer 1

Let’s take an example of Textile Industry to see how micro factors decide a company/ industry’s dynamics in Strategy related to existing/ new products in context with Demand Vs. Supply.

• types of raw materials available in abundance or less quantity or moderate, where and how to source
• Government initiatives available to encourage exports and upgrade technology? If yes, what types, how much tax rebate you get?
• Low cost of labour- available ? or is it high in all or certain geographies?
• Strong presence across the entire value chain, from fiber to Garments Comparatively lower cost of operations- where is the cost of goods manufactured low in value chain?
• Better quality control- third party Audits available?
• Do you have Better access to updated technology?
• Easy availability of other resources like machine/ infra/ loan funding/ office space etc. is available?
• If Easy availability of industrial parks with state-of-art technology and many incentives from government is present in your geography?
• Do you have better regulatory policies in your industry to cater small scale or medium scale?