SWOT Analysis of Bangladesh Textile & RMG Industry

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Offline Subrata

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SWOT Analysis of Bangladesh Textile & RMG Industry
« on: October 27, 2011, 08:29:09 PM »
Strength:
•Advantage over China, Pakistan & India
•Adequate supply of labor force of both sexes, attributed with less attitudes problem (less absenteeism and, aptitude for learning, and loyal) and high morale
•Cheaper labor cost
•Low cost of captive power generation using gas as fuel
•GSP facility up to 2015 (renewed recently)

Weakness:
•Bangladesh produce mostly basic products- which are low cost items; the share of fashion products i.e., high value added product is very low.
•Bangladesh does not produce the basic raw materials (only a negligible quantity of cotton but no manufactured fiber) and as such has to depend totally on sensitive global market.
•Because of inadequate backward linkage, lead-time happens to be long, nearly 3 months.
•Public power supply is erratic.
•Bank interest rate is still high enough, particularly of private sector bank, for investment of export oriented high value project.
•HRD facility, productivity and quality support, testing and accreditation support, design support and compliances are yet to be enhanced.
•Cost of doing business is high because of under table money

Opportunity:
•Bangladesh has now a scope to go for more fashion oriented products deserving high price in the global market.
•With the help of further increase of productivity & quality and design support, Bangladesh can minimize cost and maximize profit and export value.
•Bangladesh, as a proven experienced RMG & Textile manufacturer, can expand share in the existing market (USA, EU, Australia, Canada, etc.) and can also explore opportunity in Japan & CIS countries.
•In the long run, Bangladesh has a scope to target huge populated country like China and India- where demand as well as cost of manufacturing will be wider.

Threat:
•Unless new strong market is explored in home or abroad, any non-cooperation from USA & EU may jeopardize the whole Bangladesh RMG export business and consequently the textile manufacturing.
•Sudden price hike of cotton and yarn in the global market may push Bangladesh to a very awkward situation to devastate the business.
•The type of labor and political anarchies of the recent days if prevails in the future, Bangladesh may lose the business in the way Sri Lanka has lost.
•Growing terrorism, or its false/amplified propaganda, is also a big threat.
•The poor political culture and violence is one of the most important threats.


In order to make further boom, Bangladesh has to create new capacities and modernize & balance the existing ones. Encouragement of FDI from ethnic Bengalis in foreign countries would be one of the best options for the needed financing in addition to the local banks' efforts. Power supply has to be ensured.
Bangladesh needs to develop capacities to provide the industries with a sustainable supply of resource personnel and support services in regard of research, design, testing & standardization, accreditation, compliances, etc.
Bangladesh has to improve the port efficiency further and gear up domestic transportation. Labor crisis, labor safety, social rights and gender issues have to be dealt with more efficacies. It is important that the buyers should have a preferred access to the country; starting from reception on arrival to facilities such as hotel/rest house, tourism and recreation should be improved.
« Last Edit: October 27, 2011, 08:43:20 PM by Subrata »

Offline fatima

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Re: SWOT Analysis of Bangladesh Textile & RMG Industry
« Reply #1 on: October 28, 2011, 04:32:13 PM »
very good post
Fatima Binta Satter Disha
Lecturer
Textile Engineering

Offline Subrata

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Re: SWOT Analysis of Bangladesh Textile & RMG Industry
« Reply #2 on: October 29, 2011, 11:17:40 AM »
Thank you........

Offline Tanvir Ahmed Chowdhury

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Re: SWOT Analysis of Bangladesh Textile & RMG Industry
« Reply #3 on: October 29, 2011, 12:27:47 PM »
Good analysis............:)
Tanvir Ahmed Chowdhury

Assistant Professor
Department of Textile Engineering
Faculty of Engineering
Daffodil International University

Offline Suha

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Re: SWOT Analysis of Bangladesh Textile & RMG Industry
« Reply #4 on: November 03, 2011, 08:26:56 AM »
Good post.
Engr. Md. Mahfuzur Rahman
Asst. Professor
Department of Textile Engineering
Daffodil International University

Offline Mostafa Zaman

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Re: SWOT Analysis of Bangladesh Textile & RMG Industry
« Reply #5 on: November 05, 2011, 02:40:53 AM »
Very informative and good analysis................