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STRATEGIC
MANAGEMENT
INDUSTRY OVERVIEW
o Journey started in 1950
o 62 manufacturing plants are
operational,26 of them are
producing Tiles.
o 72.3% domestic demand
meet every year.
o Major Export market- UK,
USA, Germany, UAE,
Australia, Turkey, India
© Copyrights reserved by aladin_517
Requirements
1.Natural gas
2.Skilled labor
3.Techniqal skills
4.Equiments &
Machineries
5.Raw materials(China
clay,ball clay,fire
clay,quarter plaster of
paris)
6.Chemicals(Aluminium
hydro-oxide, zinc
oxide, liquid gold,
coloring items)
Supplier Base
Our Office
Bargaining power of Buyer
• Individual buyer in
domestic market does not
exercise bargaining power.
• Bargaining power of
international market is
reasonably high/strong.
• Moreover, due to the
increased production cost,
bargaining power of buyer
is not affected that much.
Export market
Threats of New Entrants: Barriers to Entry
• Existing companies offer wide
range of variety
• Capital requirement is high
• Distribution channels are
structured and monitored
• Low switching cost for low-
ceramics goods.
• Favorable Govt. policy
• Zero Expected retaliation
Threats of substitutes
• Availability of low-cost
substitutes is zero.
• Ceramic tiles is more popular
than mosaic in our country.
• Only 2% people use glass
flooring, epoxy flooring, marble
stone, wooden sheets as
substitutes.
Rivalry among competitors
• Equally balanced competitors.
• Industry growth- HIGH.
• High exit Barriers
• Strategic stakes- MODERATE
• Stiff Competition comes from foreign sources.
Analysing Segment Attractiveness
Supplier
▸ 100% raw
materials
needed for
production
▸ Diversified
supplier
base
weakens
bargaining
power.
Buyer
▸ Individual buyer
of local market
pay the posted
price.
▸ Due to
possesion of
cost
competitvenes
international
buyers
bargaining
power is not
strong enough.
New entrants
▸ High capital
needed
▸ Structured and
monitored
Distribution
channels.
▸ Low switching
cost
▸ Supportive
Govt. policy
Substitutes
▸ Ceramic tiles is
more popular
than mosaic in
urban, sub urban
area.
▸ Wooden flooring,
or tiles bamboo
flooring, ply
board, marble
stone can not
pose significant
threat in existing
company.
Rivalry
▸ Domestic
market is
weakly
competitive
▸ Equally
balanced
competitors
▸ High exit
barriers.
▸ High industry
growth
Market segment Attractiveness
Entry barriers
HIGH
Buyers
position
MODERATLY
STRONG
Threats of
Substitutes
LOW
Rivalry
LOW
Suppliers
position
MODERATLY
WEAK
Attractive
Segment
High Profit Potentiality
▸ Demand &supply Gap widening that taunts new entrants to the
industry.
▸ Due to the availability of Gas , cheap labor , new entrants are moving
towards this industry.
▸ Due to the rapid expansion and fast growth of the industry.
▸ Competitive threat at new entry is insignificant.
▸ Low income economy popularity of low cost substitutes.
Strategic Group Mapping Cont.
China-Bangla
Tilottoma
Euro-Bangla
RAK
AKIJ
GreatWall
Fu-Wang
MIR
STAR Ceramic
FARR
X-CERAMICS
High
Low
QUALITY
High LowPRICE
THANK YOU

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Five forces analysis of Ceramic industry of Bangladesh

  • 2. INDUSTRY OVERVIEW o Journey started in 1950 o 62 manufacturing plants are operational,26 of them are producing Tiles. o 72.3% domestic demand meet every year. o Major Export market- UK, USA, Germany, UAE, Australia, Turkey, India © Copyrights reserved by aladin_517
  • 3. Requirements 1.Natural gas 2.Skilled labor 3.Techniqal skills 4.Equiments & Machineries 5.Raw materials(China clay,ball clay,fire clay,quarter plaster of paris) 6.Chemicals(Aluminium hydro-oxide, zinc oxide, liquid gold, coloring items)
  • 5. Bargaining power of Buyer • Individual buyer in domestic market does not exercise bargaining power. • Bargaining power of international market is reasonably high/strong. • Moreover, due to the increased production cost, bargaining power of buyer is not affected that much.
  • 7. Threats of New Entrants: Barriers to Entry • Existing companies offer wide range of variety • Capital requirement is high • Distribution channels are structured and monitored • Low switching cost for low- ceramics goods. • Favorable Govt. policy • Zero Expected retaliation
  • 8. Threats of substitutes • Availability of low-cost substitutes is zero. • Ceramic tiles is more popular than mosaic in our country. • Only 2% people use glass flooring, epoxy flooring, marble stone, wooden sheets as substitutes.
  • 9. Rivalry among competitors • Equally balanced competitors. • Industry growth- HIGH. • High exit Barriers • Strategic stakes- MODERATE • Stiff Competition comes from foreign sources.
  • 10. Analysing Segment Attractiveness Supplier ▸ 100% raw materials needed for production ▸ Diversified supplier base weakens bargaining power. Buyer ▸ Individual buyer of local market pay the posted price. ▸ Due to possesion of cost competitvenes international buyers bargaining power is not strong enough. New entrants ▸ High capital needed ▸ Structured and monitored Distribution channels. ▸ Low switching cost ▸ Supportive Govt. policy Substitutes ▸ Ceramic tiles is more popular than mosaic in urban, sub urban area. ▸ Wooden flooring, or tiles bamboo flooring, ply board, marble stone can not pose significant threat in existing company. Rivalry ▸ Domestic market is weakly competitive ▸ Equally balanced competitors ▸ High exit barriers. ▸ High industry growth
  • 11. Market segment Attractiveness Entry barriers HIGH Buyers position MODERATLY STRONG Threats of Substitutes LOW Rivalry LOW Suppliers position MODERATLY WEAK Attractive Segment
  • 12. High Profit Potentiality ▸ Demand &supply Gap widening that taunts new entrants to the industry. ▸ Due to the availability of Gas , cheap labor , new entrants are moving towards this industry. ▸ Due to the rapid expansion and fast growth of the industry. ▸ Competitive threat at new entry is insignificant. ▸ Low income economy popularity of low cost substitutes.
  • 13. Strategic Group Mapping Cont. China-Bangla Tilottoma Euro-Bangla RAK AKIJ GreatWall Fu-Wang MIR STAR Ceramic FARR X-CERAMICS High Low QUALITY High LowPRICE