Diagnostics of the Challenges and Potential Solutions to Improve Export Competitiveness in International Markets

Anotace: This research study has highlighted the key challenges of export competitiveness and puts forth viable solutions for improvements in the readymade garments (RMG) industry to improve market share internationally. Pakistan is a developing country, therefore, defining industry challenges and their possible resolutions have become a very important topic in the business environment of the nation. This article presents the results of a qualitative research study, with primary data collected through an open-ended questionnaire as well as with the interviews of 134 middle and senior marketing managers with 5 to 18 years’ experience. The respondents come from readymade garments production units located in Faisalabad, Pakistan. Porter’s Diamond theory was used with this research study to seek ways of gaining competitive advantages and improving export competitiveness in international markets. With focusing on the factor of conditions (basic and specialized resources), it is identified 100 percent of the responses highlighted the energy crisis as a severe challenge along with the other issues. As for demand conditions, 44 percent of responses highlighted the lack of their own brands. In firm strategy, structure and rivalry, 78 percent of responses identified that the international competition is a great challenge. In related and supporting industries, 70 percent of responses highlighted the lack of innovation, and 90 percent of responses agreed that government policies were key. This study has also sought to provide a number of resolutions to these issues, e.g. the government should develop employee training and development centres, research and development institutes, along with collaboration with financial institutions to obtain funding. This research study has important theoretical and practical implications for several types of industry managers, associations, as well as research and development institutions.