December 19, 2017
Prepared For
Professor Dr. Dr. A. K. M. Saiful Majid Maji d Director, Director, IBA-DU
Prepared By
Syed Bayzid Hasan
Md. Jahidul Islam
Jetan Bhattacharj
EMBA Batch 23: 25ZR1503006
EMBA Batch: 24, ID: ZR1601020
EMBA Batch: 24, ID: ZR1601029
A K M Mahmudul Hasan
Farhana Sharmin Mithi
Md Monir Hossain
EMBA Batch: 24, ID: ZR1601007
EMBA Batch: 25, IDRQ1602026
EMBA Batch: 26, IDZR1603018
Content Case Study on HATIL Furniture
Vision & Mission HATIL
PESTEL Analysis
SWOT Analysis
Porter’s Five Forces Analysis on HATIL Furniture
Strategic Group Analysis of HATIL Furniture
Industry Drivers
Five Generic Competitive Strategies
KSF (Key Success Factors) of HATIL
Overview of Bangladesh Furniture Industry Traditionally a cottage based industry Low labor cost-Competitive Advantage over other furniture exporters like China
By 2018 Bangladesh will earn export potential of crafts furniture accessories worth of USD 20 million along with furniture worth USD 60 million.
At present more than 45,000 enterprises and nearly 2.5 million un-skilled and semiskilled people are engaged in this sector.
Some top players of Bangladesh Furniture Industry-
HATIl,
Brothers
Furniture,
Bangladesh Furniture Export Trend 42.58 45
38.94 40
31
35
N O I L30 L I M $25 T R O P20 X E
27.14 21.38 19
15 10 5 0 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015
Overview- HATIL Journey of HATIL in Bangladesh
• Established in 1969 as a timber company & rebranded itself as a furniture producer in 1989
• Offering wide range of products including “Smart Fit” furniture Idea of SMART FIT which are space-saving furniture Furniture like wall cabinets, sofa cum bed, space saving bed
Resources
Footprint in Abroad
• The largest manufacturing plantsover 2000 employee- around 80 showrooms in Bangladesh • Pioneer in exporting furniture and its export coverage includes USA, Canada, Australia, Saudi Arabia, Kuwait, UAE, Thailand, Egypt, Russia
Vision & Mission – HATIL Furniture Vision
To earn the trust and respect of our customers in Bangladesh and abroad.
Mission
We innovate, develop, and introduce cost effective, space solved, and environment friendly furniture with technological advances.
Few EXCLUSIVE Facts of HATIL Manufacturing environmentfriendly furniture
Utilizing
“Just-inTime” manufacturing
Using environmentfriendly UV lacquer
Proud recipient of the HSBCDaily Star Climate Award Only FSC certified furniture manufacturer in Bangladesh
Operates single brand showrooms in Australia and Canada
•
P
E
S
Political
Economic
Social
Political
•
Economic
•
Growth
Instability
T
Environmental
Technology
SMART
•
FIT
Large
•
•
Furniture
Incentive
level and
to
cope
for
Living
up
with
exporters
Standard
Cash
Import
•
Cost
Policy and Tariff for Importers
Labor
•
Market Growth
•
Capacity •
Technologi
sourced
from •
•
•
Wood
Legal
FSC certified suppliers
production
Income
•
L
E
.
Using
environment-
friendly UV lacquer •
Using
com
busting
cally
scrap
wood
the trend
advanced
sawdust
to
Cultural
for
power
Factors
utilizing
manufacturing
and
generate
for
its
facilities.
KAIZEN •
Proud re cipient o f the HSBC-Daily
Star
Environ mental Law, Import and Export Policy, Patent and Design Act of 1911 etc.
S •
•
•
•
•
•
•
•
•
•
Wide range of products Innovative & Exclusive design A loyal customer base Environment positive attitude Skilled craftsmanship Use of advanced machineries for production Raw materials are imported from abroad, so it doesn’t affect the country’s environment Stable financial condition Prominent Brand value Office decoration facilities
O
W • •
•
•
•
•
•
Higher price than close competitors No opportunity for customization in the design Limited distribution channel Limited showrooms Marketing executives & Sales persons No clearance sales are conducted
•
•
•
•
•
•
Cost-efficient technology Reducing the price by maintaining profit Connection with famous artists & architectures Expanding business through providing Interior designing Growing customer base Exploring the Global market Approval of environmentalist organizations
T •
•
•
•
•
•
•
•
•
Increased popularity of . substitute products like - RFL plastics, board & Iron based furniture Downward pricing pressure Extreme competition High exit barrier Lack of Import barrier Oligopoly market where the other competitors like OTOBI, BROTHERS, NAVANA & AKHTER are dominating the market Compressed PLC Dependency on the imported Raw materials Supply insecurity
Strategic Group Analysis Total Number of Respondent in Google Review 300
279
273
250
200
150 117
114
100 69
34
34 17
0
Name Of the Showroom
Total Response Value
Total Number Of Respondent
Band 1
Akhtar
489.6
117
4.18
High
Band 1
Hatil
1120.4
273
4.10
High
Band 1
Hi Fashion
138.1
34
4.06
High
Band 1
Brothers
257.9
64
4.03
High
Band 1
Partex
277.7
69
4.02
High
Band 2
BD Furnitire Solution
47
10
4.70
Low
Band 2
Furniture Mela
36
8
4.50
Low
27
6
4.50
Low
Band 2 Athenas Furniture And Home Décor
64 51
50
Band
15
10
8
7
6
6
6
3
Quality Price
Band 2
Otobi
1121.2
279
4.02
Low
Band 3
Nadia
133.4
34
3.92
High
Band 3
Legacy
22.8
6
3.80
Mid
Band 3
Medalion Furniture
58.5
15
3.90
Low
Band 4
Zara
22.2
6
3.70
High
Band 4
Koncept
61.2
17
3.60
High
Band 5
Regal
424.3
114
3.72
Low
Band 5
Muntafi
158.1
51
3.10
Low
Band 5
Firniture Bari
18.9
7
2.70
Low
Porters Five Forces Model THREAT OF NEW ENTRY
SUPPLIER POWER
High
-Low
-Designs can be copied
-Red oak wood imported from North America
-Raw materials can be of different grades to copy --
-China ,France & USA are the major suppliers of this wood
No govt restriction for entering in the industry THREAT OF SUBSTITUTION
-Threat is HIGH -Increased usage of light furniture like plastic furniture &wrought iron products THREAT OF BUYER POWER
COMPETITIVE RIVALRY
-Very HIGH
-Major Brands OTOBI,BROTHERS,PARTEX,AKHTER ,NAVANA
-Increased distribution of competition
-Other players like Import based & local manufacturer
-Increased penetration of information technology
-Increased Social media presence of major players
-Online stores penetration
-Low switching cost
Strategic Group Mapping
e c i r P
Quality
Industry Driver INDUSTRY DRIVERS 1.
2.
HATIL’S RESPONSE
Preference for simple and
Hatil with the slogan “SLIM IS SMART” always opt for simple,
light-looking furniture
light-looking furniture with no or minimal ornamentation
Innovation
Hatil is very innovative not only in case of design but also in materials used and furniture color
3.
Growing middle class with
Hatil is catering need of the middle class with the strict budget by
tight budget
providing furniture with reasonable price and interest free installment facility
4.
Durability issues (Strength,
Hatil’s furnitures are guaranteed for durability and parasite proof
parasite proof) 5.
Online shopping
Hatil has a very useful website from where customer can choose
6.
Multifunctional foldable
In last Dhaka Intl. Trade Fair Hatil has introduced a wide range of
FIVE GENERIC COMPETITIVE STRATEGIES
Five Generic Competitive Strategies 1. Low-cost Provider Strategy Targeting:
•Price sensitive market- price conscious buyers •Segments with limited incomes •Extreme price competitive markets •Products are essentially the same Examples: Regal Furniture OTOBI
Five Generic Competitive Strategies 2. Broad Differentiation Strategy Targeting:
•A broad range of buyers •Value conscious consumers •Products and services stand apart in consumers’ minds •Customers looking for a unique value proposition •Premium price products Examples: Akhter Furniture Brothers Furniture
Five Generic Competitive Strategies 3/4. Market Focused Strategy - Cost and Niche
Targeting:
•Price conscious customers (similar to low cost provider strategy) •Well defined segments •Appealing to cultures and geographical preferences •Brand loyal customers •Appeal to broad market segments (low cost) •Wants and needs of narrow and unique market segment (niche) Examples: Various Non-Branded Shops providing customized furniture
Five Generic Competitive Strategies 5. Best cost provider strategy Targeting:
•Low cost, differentiation markets (a hybrid) •Broad markets and market niches (middle ground) •Value conscious buyers •Those who shy away from cheap, low-end products and expensive highend products •Willing to pay a fair price for functionality and performance •More for the money Examples: HATIL PARTEX
Key Success Factor (KSF) - HATIL Environment
-friendly UV Lacquer
Nation Wide Coverage
Consumer Centricity
Strong Brand Image Right Team Mix
KSF HATIL
Operational Excellence
Modern Design
VIDEO
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