Tirupur’s hosiery industry which was catering to the domestic market rose to become a major exporter to the global markets within a short span of 20 years. With the small size and limited investments, the industry could handle large volumes of exports mainly by outsourcing the different processes. After 2005 with the removal of Quota Restrictions (QR), Tirupur’s hosiery industry is facing many challenges but at the same time it has enough business opportunities to grow provided the industry appropriate business strategies to survive in the international market. Tirupur hosiery exporters were in the throes of an increasingly competitive environment after 2005. Though the exporters were confident that they will be able to export larger volumes, thanks to the removal of QR, they were diffident that their profitability will be eroded because of the competition. They were under pressure to look for methods to stay competitive and to maintain the profitability. Given the scenario that the infrastructure and other support activities are common for all the firms an individual firm at the best can carve out its superiority mainly in terms of use of technology, design capabilities and maintaining superior quality standards. These three put together will on the one hand enable the firm to maximize the cost, which will enhance the profitability of the firm. A firm has to increasingly focus on these three areas in future for enhancing its competitiveness.