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He argues that due to the increased competition all around the globe, engineering as well as design cycles are getting increasingly short. For example, where industrial equipment manufacturers once had ten years to come up with a product, they must now come up with one every few years to keep up with the market. For them to do that, resource costs would go up, and that reinforces the need for strategic alliances. An article in Businessline (2001) states that there is a new kind of competition – a global one where firms not only need to compete with local rival products but also those by foreign firms...
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