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Footwear Industry of
Bangladesh
Presented by
Laboni Aktar Tarana; Roll: 14
Md. Touhidur Rahman; Roll: 39
IBA, MBA 52D
Leather Industry Exports (in million USD)
500
443.54
450 419.32 424.05
399.73
400
350 330.16 335.51
297.83 297.8
300
250 226.1
204.09 197.36
200 161.62
150
99.36
100
55.42
50 29.06
0
FY10 FY11 FY12 FY13 FY14(Jul-Apr)
500
419
400
336
298
300
204
200 183
159
123
95
100
0
2006 2007 2008 2009 2010 2011 2012 2013 2014
PESTLE Analysis of Leather and Footwear Export Industry
• Political unrest
Political Factors
• Poor enforcement of environmental laws and rules
• Cheap labor
Economic Factors • Poor infrastructure
• Unavailability and high cost of power supply
• Large population
Social Factors
• Change in buying patterns
• Tax policies
• Duty free facilities
Legal Factors
• Safety regulations
• Compliance issues
Strengths Weaknesses
Opportunities Threats
• Capital
• Substantial amount of capital required in near future
• Culture
• Increasing global competition
• Global Strategy - “Think Global, Act Global”
• Maintaining international qualities
• Capabilities
• The second best leathers in the world
• Low cost labor
• VRIN model – Valuable, Rare, Inimitable and Non-substitutable
Triple Triangle Framework/ Three Domain Framework (3/4)
• Customer
• Foreign customers
• Customers from USA, Japan, Canada, etc.
• Competitor
• Competition is high
• Collaborator
• Quality of raw materials, equipment and machineries
• Delivery process
Triple Triangle Framework/ Three Domain Framework (4/4)
• International Factors
• Increasing demand in international markets
• Expected shift from China and India
• Competition from countries like Myanmar
Thank You
Questions?