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Cement Industry in Bd Essay

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DETERMINING PORTER’S FIVE COMPETITIVE FORCES
OF CERAMIC INDUSTRY
Industry   structure   grows   out   of   a   set   of   economic   and   technical   characteristics
that   determine   the   strength   of   each   competitive   force   (Porter   2008).   An   industry’s
dominant economic features are   defined by such factors as market size and growth
rate,   number   of   rivals,   scope   of   competitive   rivalry,   number   of   buyers,   degree   of
product   differentiation,   product   innovation,   supply   or   demand   conditions,   pace   of
technological   change,   vertical   integration,   economies   of   scale   and   learning   or
experience   curve   effects   (Thompson   et   al.   2007).   Porter’s   model   is   based   on   the
insight that the competitive strategy of an incumbent or a company should be based
on   an   understanding   of   industry   structure   and   the   way   they   change   (Aliakbari   and
Tousi). In this section, the industry environment   of ceramic sector will analyzed by
five   recognized   competitive   forces   developed   by   Michael   E.   Porter   (Porter   1980).
This analysis presents a picture of industry’s growth situation and its attractiveness.
Jahan: Ceramic Industry of Bangladesh

1. Competitive Rivalry within the industry
The   ceramic   industry   of   Bangladesh   faces   stiff   competition   from   foreign
sources   like   Sri   Lanka,   China   and   Thailand   but   the   domestic   marketplace   is   yet
weakly   competitive.   Ceramic   manufacturers   like   Monno   Ceramic,   Shienpukur
Ceramic,   Standard   Ceramic,   FARR   Ceramic   and   Bengal   Fine   ceramic   are   still
leading,   especially   in   the   export   market,   and   have   been   recently   expanding   their
plant   to   further   improve   their   share   of   export   market.   All   other   ceramic
manufacturers are also increasing their production capacity following robust growth
in demand for ceramic wares. Due to the global recessionary impact and rising labor
cost,   the   developed   countries   are   placing   more   orders   to   low-cost...

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