BANGLADESH

COMPETITIVE ADVANTAGE IN TEXTILES

National Diamond
Factor Conditions
Demand Conditions
Related and Supporting Industries
Strategy, Structure and Rivalry
Factor Conditions
Overall, stakeholders agree that the workforce is the main asset of the country, provided that
more effort is put into increasing its productivity. Indeed, while productivity is seen as one of
the most important factors in making Bangladesh competitive, it is also cited as one of the
countrys top weaknesses.
The next top weaknesses mentioned by stakeholders are, in order of importance, poor
infrastructure (There is only one cargo train service per day between Dhaka and Chittagong
International retailer), long lead times, lack of backward linkages, poor working conditions,
and weak design and fashion details.
Real productivity is about 38-40% in Bangladesh, when it is 70% in China. The objective is to
increase it to 65-70% in Bangladesh.
Technology needs to be updated to go to more complicated products with more added value
we shy away from complicated products because we are not equipped in terms of technology
and educationR&D in production is zero, R&D in design is zero, R&D in management is zero.
We need some to improve productivity
Big need to improve productivity by training of managers, and then workersalso training in
engineering techniques and technology. It is not only training; it is the MINDSET thats
important.
Demand Conditions
Home demand for products: Medium-High
Degree of sophistication of buyers: Low-end, generic
clothing is accepted in society
Related and Supporting Industries
Highly vertically integrated industries
Most of the raw materials are sourced locally
Varying levels of automation has been implemented
Strategy, Structure and Rivalry
The domestic rivalry of firms: low
High level of mutual cooperation exists
Global Diamond
Factor Conditions
Demand Conditions
Related and Supporting Industries
Strategy, Structure and Rivalry
Factor Conditions
China is seen as the main player in the garment market,
with stakeholders mentioning low cost and high
productivity, strong government support, availability of
raw materials, and good infrastructure.
Demand Conditions
Global demand for products
Degree of sophistication of buyers
Related and Supporting Industries
Are supplier industries present?
Are these industries competitive?
Strategy, Structure and Rivalry
Global rivals
The conditions governing how companies are created,
organized and managed (PESTLE)
SWOT Analysis
Strengths

Weaknesses

Opportunities Threats
Points of Action for Bangladesh