The readymade garment industry in bangladesh

Published Date: 23 Mar 2015

Bangladesh has emerged as an important supplier of quality readymade garments in the global market. The impressive growth of garment sector in Bangladesh in recent years has radically changed the new landscape of export composition of the country. We have recognized that new strategies and competitive realities demand new measurement systems. Now we are deeply engaged in defining and developing those systems for our companies.

Friends Garment is only as good as the promises it keeps. To exceed our customers expectations in quality fashions, delivery and cost through continuous improvement and customer dealings.

"Strategic capability means set of capacities, resources, and skills that create a long-term competitive advantage for an organisation. We have lots of resources. Such as Financial capability, low rate man power, skilled man power, big area".

We have strong inbound logistics -material inventory level, inward material quality, big warehouse. We are properly maintaining quality products, production control system, meeting deadlines and efficiently delivering finished products. Our team is fully capable of designing, sampling, costing, online and final inspection for all types of garments. We have strong marketing and sales department. Always analysing and trying to improve our business .We can take some strategic decision such as sales promotions and advertising ,alternative distribution channels, competency and motivation of sale force, increase organisations image of quality, brand loyalty of customers. We have warranty and guarantee policies as part of our customer satisfaction. We give our employee intense training in customer relation and service issues constantly trying to get customer feedback, so we can further improve our sales. We maintain good relations with union organization, to create a friendlier working atmosphere.

"The cost efficiency with which a product is produced is measure of the costs and provider burden relative to the output. Provider burden is a cost that happens to be born by the provider, but is a cost nevertheless".

We are improving manufacturing cost efficiency. In these times of rising costs, increasing competition and falling sales prices in the garments industry. It is of particular importance that productivity is maximised at the highest degree of economic efficiency .So we can take some decisions. Even modernised plants by themselves offer no guarantee for continuing competitiveness, unless the necessary production costs are thoroughly analysed, evaluated and reduced to an absolute minimum. There exists a belief in the industry that production costs can be effectively reduced by building faster and faster sewing machines. And increases in machine speeds have minute effects on the actual sewing time. So we can sell more products and sell lower prices from other companies. So customers can benefit from cost efficiency.

"A competitive advantage is an advantage over competitors gained by offering consumers greater vale, either by means of lower prices or by providing greater benefits and service that justifies higher prices.

Michael Porter identified two basic types of competitive advantage:

cost advantage

differentiation advantage

A competitive advantage exists when the firm is able to deliver the same benefits as competitors but at a lower cost (cost advantage), or deliver benefits that exceed those of competing products (differentiation advantage)".

Our organisation follows Michael Porter identified basic types of competitive advantage. We have four same strategy of competitive advantage.

First strategy is usually associated with charging a premium price for the product often to reflect the higher production costs and extra value added features provided for the consumer.

Secondly, the objective is to become the lowest cost produce in the industry. If the achieved selling price can at least equal the average for the market, then the lowest cost producer will enjoy the best profits.

Third strategy, the special customer needs of the segment mean that there are opportunities to provide products that are clearly different from competitors.

Fourthly, we seek a lower cost advantage in just on or small number of market segments. If the product will be basic perhaps a similar product to the higher priced and featured market leader, but acceptable to sufficient consumer. Definitely customer can take our product.

Two of the main reasons for the growth of this industry can be attributed to comparative advantage of cheap labour and tax free entrance of Bangladeshi garments to the American and European markets. We aim to achieve cost efficiency, without compromising our company. Reputation to slave labour is one of the third world countries.

"A starting point to analysing the industry is to look at competitive rivalry. This term describes the intensity of competition between existing companies in an industry If entry to an industry is easy then competitive rivalry will likely to be high".

In figure:

Rival Companies Over heads

Friends Garment LTD

Internet Material

Less over heads Offers

Warehouse Transportation

Storing Raw/Finished products Costs of Fuel

Moto: "In order to maximise profit, we aim to minimise cost without compromising on quality"

We would expect to influence competitive rivalry in our garments. There is little differentiation between the products sold between customers. This reduces customers brand loyalty. Our competitors are approximately the same size and same products sell same price. Also internet may increase rivalry by making price comparisons easer. If our competitors all have similar strategies. If market growth rate is low. Also when our capacity can exceed, in this case our company will fight to protect market share.

In order for any businesses to succeed especially in this current fierce competitive market. We aim to manufacture quality yet value for many products. All aspects considered, in order to maximise profit, we aim to minimise cost, without compromising on quality.