strategic analysis of otobi ltd
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Faisal Islam---------------------BBA-04814963Ferdous Mokami--------------BBA-04814989Jahirul Islam Tushar----------BBA 04815123Humaira Chowdhury --------BBA 04814949Onika Saba ---------------------BBA 04814968
Group Members
Stamford University Bangladesh
Ferdous MokamiID BBA-04814989
Introduction Video descriptionCompany profilePositioningMarket challenger
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TOPICS NAME
Strategic Analysis of Otobi Ltd.
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Company Profile
Particulars OTOBI HATIL PERTEX
Established 1975 1966 1991
Annual production volume
6,600,000,000 2,500,000,000 1,500,000,000
Average market share
55% 25 15
Countries exported India, Middle East Canada, Australia, japan
India
Potential export destination
Africa, Canada, UK, USA
North America, and Europe
Mdle East, UK, USA
Total export 3.2 core 1.5 core 1.00 core
Target of total export
4.2 core 2.5 core 1.5core
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Market leader:Otbi is a leading position company in furniture industries, it creates a strong position at its successful competing with the other furniture organization of Bangladesh.
Managing brand is an essential task in every in every organization, otobi has successfully created their brand name and able to spread its wing internationally which is not only promising for otobi itself but also for local brand.
Market challenger for Otobi:The market challengers for otobi are Hatil, Navana,pertex, etc.
Positioning END
Faisal IslamID BBA-04814963
SWOT Analysis of OtobiFive Factor analysis
Strength: Weakness:
Skilled workforceDynamic leadershipWell facilitated production siteGood marketing force
Failure to follow JITPrice of product
Opportunities: Threats:
Growing market shareChanging cultureGrowing concern on forestationGrowing real state business
New competitors- Tanin, Akij pertex, Political unrestRestriction on use of plasticUse of rot iron
SWOT Analysis CONTINUE
D
Five factor model
Bargaining power of buyer
Threats of new entrants
Threats of substitute product
Bargaining power of supplier
Intensity of rivalry
Threats of substitute
Potential entrants
Buyer Supplier Intensity of rivalry
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Intensity of rivalry:The rivalry among the furniture firms is currently intense and growing. In the market Otobi has many competitor relatively equal size. Such as hatil, navana, pertex, brothers furniture, etc. Non brand furniture companies are also growing rapidly in the market.
Threat of substitute products:Recently RFL, Tanin, talukder group,bengal plastic produce consumer and commercial using furniture. The plastic furniture is now much popular among people for low cost.
Threats of potential entrants:Low barriers to entry keep the threat of new entrants high. Threat of new entrants for Otobi is high because any furniture company can entrants in the market any time with relatively low investment.
Five Factors ModelCONTINUE
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Five factors model
Bargaining power of the buyer:There have no option to bargain in Otobi furniture. Because otobi contain fixed price furniture.
Bargaining power of the supplier: Otobi mainly import raw materials from Indonesia, Japan and Malaysia. So there have low bargaining power of supplier over the world.
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Humaira Chowdhury ID BBA-04814949
Functional level strategy
Functional level strategy
Efficiency in otobi:Otobi have learned in their literacy survey how a company can achieve superior efficiency, that is, how it can reduce its cost.
Experienced worker: Otobi gives emphasis on the experienced worker and try to hold old employees in spite of required higher payment.
Economic scale:To achive economic scale otobi goes for a large volume of production together.
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To make the manufacturing process, recently Otobi has imported modern machineries from Germany.
Division of labor and specialization: Otobi has divided its labor force for various segments and goes for specialization; chair, table, kitchen cabinet, hospital furniture, office furniture etc.
Otobi does not leave out even single customer. They could established brand loyalty in thousands of customer
Functional level strategy CONTINUE
D
Functional level strategy
Otobi produce high quality world class furniture that’s why customer have a high perceived value for Otobi products in their mind.
Otobi could established a strong organizational commitment to achieve superior to beat the competitors in the quality aspects.
Otobi often challenging goals to its employee. Side by side adequate incentive are also arranged for meeting those goals.
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Otobi solicits the idea taken from the any level of worker. Any worker or employee of otobi are at liberty to talk about any idea which may improve the quality.
Functional level strategy EnD
Onika Saba ID BBA-04814968
Corporate level strategyHR policy
Corporate level strategy
The corporate level strategy of OTOBI is to concentrate on a single business. It competes successfully within the confines of a single business that is in the laminated furniture business.
OTOBI focuses its total managerial, financial, technical and physical resources and capabilities on competing successfully in a single area.
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Corporate level strategy
As it is a fast growing business, demand on its resources are very significant. Even after having the capability of diversification, OTOBI does not go for that. It sticks to its knitting that is it sticks to doing the furniture business, what it knows best.
OTOBI does not want to do any mistake of diversifying into areas about which it knows little and where its existing resources and capabilities add little value.
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HR Policy
The HR Policy at Otobi embraces the following key philosophies –
1. To recruit the best possible employees and to retain them through continuous development process. Otobi believes in holding old experienced workers and employees.
2. To create a learning environment where employees are beneficiaries and stakeholders are treated with respect. Performance Evaluation at Otobi is broadly and objectively planned, and monitored.
3. To promote a safe and healthy work environment with all kinds of modern facilities. All staffs must use prescribed safety tools and equipment's at work.
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Jahirul Islam TusharID BBA-04815123
Marketing Strategy LevelProduct line Positioning Branding PromotionReference
Marketing Level Strategy
Positioning: The positioning of Otobi Furniture is done based on the following:
QualityWarrantyAfter sales service Customer consultancy
Product Line:Otobi produce several types of furniture to compete with other furniture company.
01. Office Furniture 02. Household Furniture 03. Computer Furniture 04. Hospital Furniture 05. Decorative Items 06. Kitchen Cabinet 07. Special Built in Cabinet 08. Work Station 9. Interior Project 10. Official Stationeries
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Marketing Level Strategy
Branding:Integrity, commitment to the community, quality, professionalism, innovative and stylish furniture, conscious about environment and eco friendly, and characteristics which are all reflected in the company’s advertising, point of the sales displays, and customer service.
Otobi Furniture is also committed to acting honestly in its dealing with the customers, distribution partners, suppliers, and government institution and other multinational company.
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Marketing Level Strategy
Promotion:Otobi also has its own promotional activities to keep itself on the top of the people’s mind of Bangladesh. Otobi use both ATL (above the line: TV, Newspaper, Direct Selling) and BTL (Poster, Banner, Neon Sign) promotional strategies. But for a product like furniture “Above the Line” promotional strategies specially direct selling, are the main one.Banner, Paper ad, TV ad,
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Reference
http://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf
http://prnewsbd.com/1039/hatil-opens-outlet-in-canada/
http://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf
http://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf
http://www.integratedretailing.com/?p=131
http://www.furnituretoday.com/
http://www.answers.com/topic/furniture-stores
http://www.ikea.com/
http://www.ikea.com/gb/en
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