Transformational Strategies for Companies in Transitional Economies

Strategies employed by textile and clothing firms in transforming economies can help these firms to turnaround their fortunes. Trade liberalization instituted by the government has negatively affected the industry. This ushered in an influx of cheap Chinese goods, and smuggling of second hand goods into the country creating intense competition. The indigenization policy was also another limiting factor to investment as foreign investors are scared of investing in the country. Production runs are affected by the persistent power black outs. The government should play a leading role in coming up with a policy that encourages investment. There must be funding to the initiatives of textile and clothing sector, and that government should come up with restrictions to the influx of Chinese goods. The textile and clothing sector should produce items of varying qualities to match the Chinese products on price. The government and the textiles industry should come up with an output based pay structure so as to encourage production and also to cut down on the huge wage bill the industry has incurred due to low production runs.