Researches on strategic response of firms to environmental shifts have been conducted, mostly with respect to the private corporations and, predominantly in the North American and European Context. This apparent inclination of researchers for the private organizations is possibly to control for the overarching influence of the government – a sentiment nurtured by many researchers in strategic management and industrial organization economics. A few studies, especially in the United Kingdom, that did involve state owned enterprises found results that were not clear and concise. Researchers who endeavoured those studies reported that the lack of clarity, in the results, was due to ownership pattern and national contexts that influenced the strategic choices and which in turn influenced the responses of firms facing environmental shifts. Therefore firm’s strategic response, when influenced by ownership pattern and national context, is likely to yield results that would be different from those reported in the literature. This is a research gap and hence an opportunity that’s worth exploring. The present research fits into this gap and focuses on the strategic response of Indian (national context) state owned enterprises (ownership pattern) to environmental shifts.