Capturing Market Opportunities in SriLanka
Sri Lankan Business Organizations most likely to use International Business Strategies in Capturing Market Opportunities in Sri Lanka
Overview
What are the international business strategies that Sri Lankan business organizations can use in capturing market opportunities in Sri Lanka? There is a need for Sri Lanka to formulate new and better global economic strategies. However, the strategy ought not just to be about economics that is dry but rather; be part of the more substantial strategic policy renewal by the country (Market Entry Strategy, 2017). What the country needs is a shift that is decisive with regards to the existing markets plus the issue of globalization.
However, the formulation is not that easy and straightforward but rather will be an immense challenge. On the positive side of this story, Sri Lanka is presented with a golden opportunity of ensuring that it achieves the potential that it has for a long time, reserved; as far as the UNP victory of June 1977 can be recalled. The other bit of the story, however, is that Sri Lankans have squandered such an opportunity, as long as the opportunities that existed before this is concerned (Market Entry Strategy, 2017).
Nature of the Strategies
What the actual reforms package for Sri Lanka ought to be made up of is a proper global economic strategy. In the strategy, however, the issue that needs more attention is macroeconomic stability. Further, the volatility of macroeconomics within the country is likely to derail attempts of achieving liberalization.
The issues of expenditure and taxation also require an urgent amendment as a way of preventing the increased accumulation of public debts; thereby making the financing of such debts far much sustainable. Another important issue is to ensure that the printing press is stopped instead of getting along with their work involving the funding government profligacy. Also, an overhaul with regards to local business regulation should be performed.
As a personal observation on International Business Strategies likely to be used by Sri Lankan Business Organizations to Capture Market Opportunities in Sri Lanka, licensing also should be radically simplified. Regarding reforms on education, skills and knowledge need to be upgraded. Since Sri Lanka happens to be a lower-middle-income country, they can’t be involved in market competition with labor that is cheap (Market Entry Strategy, 2017). The reforms are several; however, the most important ones have been highlighted here for this discussion.
The nature of these strategies
Turning to the nature of these strategies, they should have an overall objective of making Sri Lanka open to the global market economy. Such kinds of strategies need to be both realistic and ambitious with a timeframe of five to ten years (Global economic strategy, 2017). With regards to trade, the ratio of trade-to-GDP needs to be double by over one-hundred percent by the year 2020. Also, with regards to the existing export markets, both the EU and the U.S should be the most important export markets for the country with an export basket that is diversified. Moreover, the ratio of FDI-to-GDP needs to be double to about five percent by 2020.
This is because the country ought to be pocketing an annual sum of approximately $ 5 billion from inward investments. The country needs to be embedded in beyond garment GVCs. Such is however only attainable if the FDI and trade targets aforementioned are achieved. Regarding domestic competitiveness, the strategies should enable the attraction of FDI and international trade.
However, such a case will have to depend on the level of improvement of the climate of the local business while depending on investment policies and trade. Overall, the strategic watchword for the plan should be “keeping it simple.” The actual mantra for the same should be to deregulate beyond the possibility to expand individuals. Also, the rule for market actors should be to “have the basics right (Global economic strategy, 2017).
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References for further reading:
- Ra, S., Chin, B., & Liu, A. (2017). CHALLENGES AND OPPORTUNITIES FOR SKILLS DEVELOPMENT IN ASIA CHANGING SUPPLY, DEMAND, AND MISMATCHES. Retrieved from URL
- Sri Lanka. (2017). Sri Lanka: the emerging center point for investment in South Asia. Mfa.gov.lk. Retrieved from URL
- Business Times. (2017). Challenges for business in 2016 | The Sunday Times Sri Lanka. Sundaytimes.lk. Retrieved from URL
- Future in Sri Lanka. (2014). Markets of The Future in Sri Lanka. Euromonitor.com. Retrieved from URL
- Market Entry Strategy. (2017). Sri Lanka – Market Entry Strategy | export.gov. Export.gov. Retrieved from URL
- Global economic strategy. (2017). A new global economic strategy for Sri Lanka. Ft.lk. Retrieved 16 June 2017, from URL
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This article is written by:
Meghan is a freelance writer and a blogger.
