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...