Introduction

The report depicts the strategic analysis of RANGS Group which is done through BCG Matrix.
RANGS Group is one of the most well-known business houses in Bangladesh. From a journey that
began in 1979, RANGS Group has diversified from its beginnings as an Automobile distributor to
a multi-business and multi-discipline enterprise. With more than 30 years of business experience
in several industries including Automobile, Telecom, Pharmaceuticals, Real Estate etc. and the
success of over 50 companies are ample proof of dynamic leadership and progressiveness of
RANGS Group. They have a unique customer understanding through our ongoing, direct dialogue
with our customers.

RANGS is now an established name in Automobiles assembly and distribution, Public

Transportation, Real Estate and Construction development, Pharmaceuticals, Interior design,
telecommunication as well as FMCG manufacturing and distribution. The company which was
started with automobile has turned into a large corporation with the right choice of strategy, market
condition consideration and investments in subsidiaries. The report also shows their competencies
which has helped them achieving competitive advantage and having them the largest market share
in proportion to their competitors.

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BCG Matrix

BCG matrix (or growth-share matrix) is a corporate planning tool, which is used to portray firm’s
brand portfolio or SBUs on a quadrant along relative market share axis (horizontal axis) and speed
of market growth (vertical axis) axis.

Growth-share matrix is a business tool, which uses relative market share and industry growth rate
factors to evaluate the potential of business brand portfolio and suggest further investment
strategies.

Understanding the tool

BCG matrix is a framework created by Boston Consulting Group to evaluate the strategic position
of the business brand portfolio and it’s potential. The general purpose of the analysis is to help
understand, which brands the firm should invest in and which ones should be divested.

Relative market share: Higher corporate’s market share results in higher cash returns. This is
because a firm that produces more, benefits from higher economies of scale and experience curve,
which results in higher profits.

RMS: Business unit sale in this year/ Leading rival’s sale of this year

Market growth rate: High market growth rate means higher earnings and sometimes profits but it
also consumes lots of cash, which is used as investment to stimulate further growth. There are four
quadrants into which firm’s brands are classified.

MGR: (Individual sales of this year – individual sales of last year)/ individual sales of last year.

Dogs: Dogs hold low market share compared to competitors and operate in a slowly growing
market. In general, they are not worth investing in because they generate low or negative cash
returns.

Strategic choices: Retrenchment, divestiture, liquidation

Cash cows: Cash cows are the most profitable brands and should be “milked” to provide as much
cash as possible. The cash gained from “cows” should be invested into stars to support their further

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growth. According to growth-share matrix, corporates should not invest into cash cows to induce
growth but only to support them so they can maintain their current market share.

Strategic choices: Product development, diversification, divestiture, retrenchment

Stars: Stars operate in high growth industries and maintain high market share. Stars are both cash
generators and cash users. They are the primary units in which the company should invest its
money, because stars are expected to become cash cows and generate positive cash flows.

Strategic choices: Vertical integration, horizontal integration, market penetration, market

development, product development.

Figure 1: BCG Matrix

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Question marks: Question marks are the brands that require much closer consideration. They hold
low market share in fast growing markets consuming large amount of cash and incurring losses. It
has potential to gain market share and become a star, which would later become cash cow.

Strategic choices: Market penetration, market development, product development, divestiture

Using the tool

Although BCG analysis has lost its importance due to many limitations, it can still be a useful tool
if performed by following these steps:

 Step 1. Choosing the unit

 Step 2. Defining the market
 Step 3. Calculating relative market share
 Step 4. Finding out market growth rate
 Step 5. Drawing the circles on a matrix

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Business SBUs of Rangs Group

Automobiles

 Rancon Automobiles Limited

 Rancon Imports Limited
 Rancon Motor Bikes Limited
 Rancon Motors Limited
 Rancon S Ltd
 Rancon Service Center Limited
 Rangs Limited
 Rangs Motors Limited
 Rangs Workshop Limited

Electronics
 Rangs Industries Limited

Finance, Securities & Banking

 Bank Asia Limited

 Premium Securities Limited

Fisheries

 Sea Resources Group of Companies

Garments

 Rancon Sweaters Limited

ICT

 Ranks ITT Limited\

Insurance
 Reliance Insurance Limited

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Media & Publications
 Dainik Shokaler Khobor
 Publications Limited
 Media World Limited

Petrochemicals
 Gulf Oil Bangladesh Limited
 Ranks Energy Limited

Pharmaceuticals
 Rangs Pharmaceuticals Limited

Real Estate

 Rancon Engineering Limited

 Rangs Properties Limited
 Services, Maintenance & Security
 Rancon Services Limited
 Shield Security Services Limited

Telecom
 Ranks Telecom Limited

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Company overview of the selected SBUs

Rangs Electronics Limited

Company Overview

In 1984 Ranges Electronics Ltd. (REL) have established in Bangladesh. This private limited
company is registered under the company act of 1913 and incorporated in Bangladesh on 29th
March, 1984.REL is one of the most reputed organizations in Bangladesh. The company has
always been known as a pioneer in the field of consumer technology in Bangladesh. it holds the
top position in assembling, manufacturing, importing, exporting, repairing and marketing all sorts
of electronics goods. Some of its electronics goods include color television, black and white
television, HIFI system, radio cassette recorder, CD players, VCD and DVD players, VCPs, VCRs,
Digital cameras, Radios, Cordless telephone, batteries, walk mans. Some home appliances
products am refrigerator, deep fridge, washing machine, Micro ovens, Gas burners, gas ovens and
all sorts of kitchen appliances. Other supportive miscellaneous items are voltage stabilizer, fans,
air conditioners, different energy saving lights for better illumination. In 1986, the organization
started with only one 12” Black & White TV and one VCR of the SONY brand. Since then the
product line up of Rangs Electronics has increased to 350 different varieties of products (rancon,
2019).

REL is the only authorized license of SONY CORPORATION, TOKYO, JAPAN. This
organization is serving, marketing, assembling, and distributing Sony products all over Bangladesh
for the last 16 years. REL is also authorized distributor of world famous brands AIWA, FUJI,
ENGER, RANGS & ICHI BAN. Side by side it has developed its own brand name RANGS. The
company is also dealing with big projects in the fields of telecommunication, television broad
casting, transmitters, Lather radars, steel bridges and marine port infrastructure.

REL aim is to achieve business excellence by satisfying consumer expectation by serving quality
products of Sony. The company has an active network of 56 sales & service centers and more than
150 authorized dealers throughout the country. This distribution network enables REL to offer the
products and services to the consumer’s door to door. Most of the RANGS products carry a
warranty of one to five years. REL is committed to provide services to the consumers without

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sacrificing quality of their product. Each and every sales & service centers carry necessary spam
parts and Ill trained technicians to serve the consumers. Now ranges electronics is the biggest
distributing company of home appliances in Bangladesh occupying 35% of the total color TV
market sham and 15% only in home appliances.

Reliance Insurance Limited

Company Overview

Reliance Insurance Limited being incorporated on the 20th of March 1988, starts operation by
virtue of the Certificate of Commencement of Business” issued by Registrar of Joint Stock
Companies on the 22nd of March 1988. It obtains Certificate of Registration from Controller of
Insurance on the 7th of April 1988. Currently the company is regulated by Insurance Development
and Regulatory Authority (IDRA). Pioneering the industry Reliance Insurance Limited proudly
celebrated its Silver Jubilee in 2013. The mission of Reliance is to be one of the outstanding
amongst insurers in Asia by putting the customer at the heart of everything they do (reliance.,
2019). With an eye to ensuring peace of mind, Reliance aims at providing the customer with
tailored-made insurance solutions with innovation in products design, delivering attractive returns
to their shareholders, and becoming a caring organization for the next generation of talents. Several
consecutive awards from Institute of Personnel Management, Institute of Chartered Accountants
of Bangladesh, Institute of Cost and Management Accountants of Bangladesh and South Asian
Federation of Accountants are proudly in the silo of Reliance Insurance. Amidst the products File
insurance, marine, life, health, motor, cargo, engendering and overseas travel insurance are worth
mentioning.

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 Rangs Properties Limited

Company Overview

Rangs Properties Limited is a leading property developer of modern buildings that are the
representations of architecture at its best. Rangs Properties Limited has built luxurious apartments
and commercial complexes in many prime locations of the country (ifsworld, 2019). They do not
compromise when it comes to locations, selection of architects, technology, engineering, eco-
friendliness, construction materials, systematic monitoring and reliable aftersales service.
Complete Auto 'Computerized Diagnosis' for any vehicle and brand name. Among the services

 Quick 'Oil & Lubricant', ATF replacement and for all names and models.
 Brake and Suspension work for all names and models
 All Electric and Automatic Transmission related repair work.
 World class 'Paint Booth' combined with master painter and their high-tech gears to paint
 your vehicle to its original color & shinning. These are the services provided by them.

Rangs Pharmaceuticals

Company Overview

Rangs Pharmaceuticals began operations in 2003 and is now one of the fastest growing
pharmaceutical companies in Bangladesh. They are maintaining the highest of standards in the
production of pharmaceutical products in the most efficient and eco-friendly methods possible.

Equipped with the most modern and advanced facilities, Rangs wants to advance in the healthcare
industry as innovators and garner a solid reputation for high quality medicinal and healthcare
products.

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Rangs focuses on using the best production resources in the most efficient manner to meet the high
demand within the Bangladesh market. Their aim is to be a bigger fish within the pharmaceutical
industry and take a position as market leader.

BCG Matrix Analysis of SBUs

Star Rangs
Electronics,Reliance
Insurance -Question
Marks

Rangs Properties- Rangs pharmaceuticals-

Cash Cows Dogs

Figure 2: BCG Matrix Analysis

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Question Marks (Reliance Insurance)

1.Market growth rate is 60% 2. Market share is 4%

Because of low market share and high market growth rate, Rangs Electronics can be considered as
question mark of Rangs group.

Question Marks (Rangs Electronics)

1.Market growth rate is 15.66% 2. Market share is 3%.

As Rangs Electronics has high growth rate but relatively low market share, Rangs group need to
make decision regarding whether to invest more or less in Reliance Insurance.

Cash Cows (Rangs Properties)

1. 9% is growth rate per year,8% market share

Rangs Properties has low market growth and relatively good amount of market share which
produces lot of cash for the company. This is why Rangs properties is considered as the cash cow
of Rangs group.

Dogs (Rangs Pharmaceuticals)

1.Market share is approximately 1% 2. Growth rate is 9.76% per year.

Because of low market share and low market growth, Rangs pharmaceuticals is the dog of Rangs
Group.

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References
ifsworld. (2019, July 30). RANGS PROPERTIES SELECTS IFS APPLICATIONS. Retrieved
from ifsworld.com: https://www.ifsworld.com
rancon. (2019, July 30). Rankon values . Retrieved from rancon.com:
https://www.rancon.com.bd
rangsproperties. (2019, July 30). Corporate Information. Retrieved from rangsproperties.com:
http://rangsproperties.com
reliance. (2019, July 30). Company Profile . Retrieved from reliance.com:
https://reliance.com.bd

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 Annex

Table 1: Bangladesh Consumer Electronics Market Growth Forecast

Year TV Air Home Appliances

Refrigerator Conditioner
2018 414 549 165 251
2019 478 614 215 288
2020 543 680 271 328
2021 636 779 360 379
2022 699 878 392 425

Source: LCP Primary Research

Table 2: Bangladesh consumer electronics market share

Company Share
Walton 27%
Singer 7%
Minister 4%
LG 3%
Sony Rangs 3%
Vision 2%
Nova 2%
Transcom 2%
Others 50%

Source: Light Castle Primary Research

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 Table 3: Bangladesh Pharmaceuticals Market Share

Name Market Share %

Square 18.06
Incepta Pharma 10.25
Beximco 8.37
Opsonin Pharma 5.57
Renata 4.98
A.C.I. 4.42
Eskayef 4.4
Aristopharma 4.4
Healthcare Pharma 4.32
Acme 3.91
General 2.44
Radiant Pharma 2.15
Sanofi Bangladesh 2.05
Drug International 1.91
Popular Pharma 1.9
Unimed &Unihealth 1.74
Novo Nordisk 1.73
Novartis 1.26
Nuvista Pharma 1.18
Sun Pharma 1.17
Glaxosmithkline 1.12
Ibn Sina 1.07
Sandoz 1.05
Beacon Pharma 1.02
Orion Pharma Ltd. 1
Others 8.53

Source: IMS Health Report

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 Table 4: Growth trend in pharmaceuticals

Year Production (in BDT Mn)

2012 93,904
2013 97,589
2014 105,864
2015 119,548
2016 156,401

Source: IMS Health Report

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