This website uses cookies to ensure you have the best experience. Learn more

Porter's Five Forces Essay

2197 words - 9 pages

The Porter's Five Forces Tool
The Porter's Five Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps to understand both the strength of any organization’s current competitive position, and the strength of a position that the organization considering moving into. With a clear understanding of where power lies, organizations can take fair advantage of a situation of strength, improve a situation of weakness, and avoid taking wrong steps. This makes it an important part of organization’s planning toolkit.
Conventionally, the tool is used to identify whether new products, services or businesses have the potential ...view middle of the document...

For the first time, the industry exported shirts (Mercury shirt) to the European market in 1965-66, which was produced from Karachi. In the latter, 9 exporting industries were available in 1977-78. The three largest industries in that time were Riaz Garments, Jewel Garments and Paris Garments. Among those, Riaz Garments was the most famous and oldest industry in that time.
“Desh Garments” is another pioneer of Bangladesh RMG sector. In 1979, Desh Garments started a joint project with South Korean company “Daiyuu”. At the same time, several garments were introduced such as-Stylecraft limited by Shamsur Rahman, Aristocraft Limitd by AM Subid Ali, Azim Group by Engineer Mohammad Fazlul Azim and Sunman Group by Major (Retd) Abdul Mannan.
By following the beginners of RMG sector, some others discreet and hard-working entrepreneurs started their RMG business in the country. From there, RMG sector of Bangladesh was developing day by day and not needed to look back. Though this sector had passed various critical stages through the path. In that time, we learned about child labour 1994 and in 1995 we made our garments industry free from child labour very successfully.
Present Situation of RMG Sector in Bangladesh
In RMG sector of Bangladesh, there are more than 5000 garment factories (private statistics) at the current time, employing more than 12 lack labors, where 85% of the labor force is women. But, according to BGMEA the number of garment factories in Bangladesh around 4000. Now, RMG industry is the country’s largest export earner with the value of over $24.49bn of exports in the last financial year. It’s a great news for us that, Bangladesh is clearly ahead from other South Asian suppliers in terms of capacity of the readymade garments industry.

Though, there are various types of garments are manufactured in Bangladesh, but all the readymade garments are classified into two broad categories, where one is woven products and another one is knitted products. Woven products include Shirts, Pants and Trousers. On the other hand, knitted products include T-Shirts, Polo Shirts, Undergarments, Socks, Stockings and Sweaters. Woven garments still dominate the export earnings of the country. From BGMEA website its seen that, Day by day knitted items production is increasing in considerable rate and now about 40% export earnings has achieved from knitted products.
Contribution of RMG Sector to the National Economy
The role RMG sector in Bangladesh economy is remarkable. It’s seen that, from the last decade, RMG sector contributes to the national economy in considerable rate. About 76% of total export earnings come from RMG sector. From a statistic it’s known that, in FY 2003-04 RMG sector of Bangladesh earned US$ 5,686.06 million, in FY 2004-05 the value was US$ 6,417.67.67 million, in FY 2005-06 the value was US$ 7900.80 million, in FY 2006-07 the value was US$ 9,211.23 million, in FY 2007-08 the value was US$ 10,699.80 million, in FY 2008-09 the...

Other Essays Like Porter's Five Forces

Digital Eco System Essay

906 words - 4 pages digital ecosystem initiative has two target groups: ICT: {draw:frame} Fig (4): Digital Eco – System Targets and Vision Porter's Model Of Competitive Forces & Analysis And Evaluation of Digital Eco-System According To Competitive Model Michael Porter's Competitive Forces Model. This model provides general view of firm’s competitors and its environment in comprehensive manner. Here are five competitive forces that shape the

Easyjet Case Study

2092 words - 9 pages EASYJETCASE STUDYContents:I. IntroductionQuestion OneII. T he business environment in the airline industry in 1994III. Evaluating attractiveness of the market using STEPIV. Analysis of the competitive environment through Porter's five forces in 1994V. STEP in 1998-1999VI. Analysis of the competitive environment through Porter's five forces in 1998-1999VII. Industry CycleVIII. Boston Consulting Group Strategic environments matrixEASYJETCASE

Case Study Stage 1

567 words - 3 pages Case Study, Stage 1: Business Environment Analysis Perform a detailed Porter's Five Forces analysis for your Hometown Deli, addressing each force in one or two sentences and defining the force, its impact on the Deli and your strategy or strategies for dealing with it.   • Since the customers have a wide array of options to select from The Hometown Deli's buyer power is high. Offering some type of loyalty customer rewards would help

Poters 5 Forces Application on Automobile Industry

5903 words - 24 pages Topic:        Apply the Porter's five forces model on Automobile Industry and analyse the attractiveness of the Industry for Investment purpose Evolution of Porter's Five Forces Model Five forces is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School in 1979. Michael Porter is a professor at Harvard Business School andis a leading authority on competitive strategy


926 words - 4 pages more comprehensive application of the framework of Porter’s Five Forces. Moreover, the report illustrates the application of SWOT, PESTEL and Value-Chain analytical frameworks and discusses Dell’s marketing strategy and company’s approach towards Corporate Social Responsibility (CSR). MICROSOFT PORTER'S FIVE FORCES ANALYSIS Threat of new entrants to the industry is insubstantial. This is because of the significant industry barriers that relate

Organic Food And Beverage

1589 words - 7 pages them. This market has a future of long-term growth and companies that are well organized and innovative will likely perform well. Foreign markets for organic food are even stronger, with reports showing that sales over the globe are expected to grow by a large margin each year to reach $100 billion in 2008.If we turn to Porter's Five Forces Model of Business Competition, we can see that Porter's model carefully evaluates the draw of a particular

Cheese Manufacturing Industry in the Us - Analysis by Variety, Production, Consumption, Cost and Competition

656 words - 3 pages and establishments Geographic concentration of establishments Key players & their market positions Brief player profiles >>Business overview >>Products & services >>Key financial indicators & operating metrics PORTER'S FIVE FORCES MODEL KEY MARKET RATIOS AND INDICATORS % share of value added by industry in GDP % share of value added by industry in the value added by the sector Producer price index Consumer

Industry Analysis

714 words - 3 pages The five forces in Industry analysis Porter five forces analysis is a framework to analyse the level of competition within an industry and business strategy development. Pullan (2013) asserts that these forces were developed by Michael Porter to derive five forces that determine the competitive intensity and therefore attractiveness of an Industry. These five forces are depicted below; Fig (i) A graphical representation of Porter's five

Kudler Fine Foods

945 words - 4 pages companies, has to contend with threats that influence their position in the industry. Porter's Five Forces model analyzes competitiveness and strategic planning to increase a company's competitive advantage. According to this model there are 5 major forces that influence a company's success or failure in an industry. They are the threat of entry of new competitors, the bargaining power of suppliers, the bargaining power of customers, the threat

Personal Accident and Health Insurance in Brazil - Analysis, Size, Share, Key Trends, Opportunities and Forecast to 2018

589 words - 3 pages The detailed competitive landscape in the personal accident and health insurance segment in Brazil Detailed regulatory policies of the Brazilian insurance industry A description of the personal accident and health reinsurance segment in Brazil Porter's Five Forces analysis of the personal accident and health insurance segment A benchmarking section on the Brazilian personal accident and health insurance segment in comparison with other

Starbucks Strategic Management

2131 words - 9 pages Starbucks in a better way Porter's five forces method is used. The five forces that detail in porters five forces are as follows: (Starbucks porter's five forces analysis 2012) 1. Rivalry among competitors 2. Bargaining power of buyers 3. Threats of substitutes 4. Bargaining power of suppliers 5. Threats of new entrants Starbucks has competitors like Costa, Mc Donald's, caribou coffee and other local coffee shops. As the

Related Papers

Porter's Five Forces Sports Good Store

465 words - 2 pages porter's five forces that it is not a very attractive industry to enter. The competion is high and survival rate is low. In Boston, there are more that 50 stores, making it harder for a new one to enter this field. The suppliers have a strong hold over the market with customers having their own brand preferences and loyalty.

Porter's Five Forces A Model For Industry Analysis

4042 words - 17 pages 12/6/2014 Porter's Five Forces  QuickMBA / Strategy / Porter's 5 Forces Porter's Five Forces A MODEL FOR INDUSTRY ANALYSIS The model of pure competition implies that risk­adjusted rates of return should be constant across firms and industries. However, numerous economic studies have affirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure. Michael

Porter's Five Forces Model Essay

1265 words - 6 pages Assignment 1 (Week 1) Nelida Wakefield American Military University Abstract Porter’s Five Forces Model is a holistic approach towards competitive strategy. The model provides a framework for the strategic direction of management teams that are seeking an edge over their competitors and additional factors that may undermine profits. The model displays the dynamics between the competitive rivals, buyer’s bargaining power, suppliers, new

Strategic Management Essay

596 words - 3 pages 01/31/2009 03:27 PM • no reads • no comments • Add to your reading list • Report Copyright 0 2007 Alan B. Eisner and Pauline Assenza. C378 Case 39:: Dippin' Dots Ice Cream varieties to co-branded packages and noveltIes. Most novelty ice... • Summary Of Porter's Five Forces strategic issues: Analyzing the pharmaceutical industry by Porters five forces we find the strategic issues in the pharmaceutical