Strategic analysis of Somani Fabrics

World business has transformed from sellers' market to buyers' market. This has led to an increase in competition within the domestic market. Domestic companies are now looking for overseas markets for their survival and growth. Information and technology have played a very vital role in bringing the world closer. Access to foreign markets is virtually at the fingertips of producers. Domestic companies are increasingly using this technology to seek their access. Australia is one of the biggest users of information technology. The Australian economy is fairly stable. The opening up of the Australian economy and its economic growth have attracted many foreign companies. There are enormous opportunities in Australia which are yet to be tapped by Indian companies. Hence, Somani Fabrics has a fair chance to take advantage of the growing Australian market. The clothing export industry in India has shown an inspired growth and performance in a short span of time, reaching an export figure of 4.5 billion US$ during 1995-96 leaving all the other products far behind and by contributing over 16% of the national foreign exchange earnings. It is also credible that phenomenal export growth in this sector has been possible despite quota restrictions. However, such restriction would no longer be there beyond 2005. A golden opportunity exists for Indian garment industry to penetrate new markets. The study begins with an introduction identifying the purpose, benefits and scope of study etc. In the subsequent chapters, the study reviews theories relating to strategic management, internal and external environment analysis and theories relating to various tools for development of different strategies. With the help of SWOT analysis many strengths, weaknesses, opportunities and threats for Somani Fabrics are analysed. This information is used for the development of an appropriate strategy, which could eliminate these weaknesses and threats. TOWS matrix and SPACE Matrix generates several strategies for Somani Fabrics. Each of these strategies is evaluated for selection purposes. In conclusion, a strategy is recommended to Somani Fabrics. It is also recommended that Somani Fabrics should undertake future research before entering Australian market.