Ford In Bangladesh

1

Introduction

The main purpose of the report is to know the strategies that can be used by the
Multinational Companies in order to enter into the capital market of Bangladesh. The main
objective is to find out the reasons behind why Ford come in Bangladesh for their business
propose and what kind of strategies they had taken to enter in Bangladesh. The market analysis is
also a part of the objectives of the study. The govt. Rules and regulation of the industry is also be
part of the objective.
Background

Bangladesh is considered one of the least developed nations and has some of the worst
health and nutrition outcome data. The situation is due, in part, to its climactic and demographic
characteristics that have slowed economic growth. However, rapid population growth and
political antagonism have also contributed to this point.
Economic data reveals that the GDP is increasing steadily, with an average of 4.9% from
1990-1999 and 5.5% in 1999/2000. However, it is possible that some of these statistics
exaggerate economic improvements for the nation as a whole. In 1999, the services sector
contributed 52% of the GDP and employed 25.0% of the population, while the agricultural sector
accounted for 21% of the GDP and employed 57% of the population. In the past, unemployment
has been a huge problem and has been most directly impacted by the population growth rate but
now the Per Capita Income is also increasing day by day. Recent trends show a decline in
population growth rate that has been attributed to a successful family planning program and the
per capita income and Per Capita Income is also increasing.

Some list of multinational companies operating business in Bangladesh

Chevron (Petroleum Industry) Chevron is the largest producer of natural gas in
Bangladesh, supplying approximately 50 percent of the countrys natural gas consumption. It has
increased production tenfold in the last decade to meet the countrys ever-increasing demand for
natural gas.
Ford In Bangladesh
2

Grameenphone Ltd (Concern of Telenor, Telecommunication industry) Grameenphone
is the largest mobile provider in Bangladesh. The largest of six mobile operators in the country.
Grameenphone have 43.968 million mobile subscriptions. It is a joint venture enterprise between
Telenor and Grameen Telecom Corporation, a non-profit sister of the internationally acclaimed
microfinance organization and community development bank Grameen Bank.

Unilever Bangladesh (FMCG) Unilever started its journey in Bangladesh in 1964 with a
soap factory was set up at Chittagong. Unilever Bangladeshs have more than 10000 people
directly or indirectly related with working framework. Unilever Bangladesh Product categories
are: Household Care, Fabric Cleaning, Skin Cleansing, Skin Care, Oral Care, Hair Care, Personal
Grooming, Tea based Beverages.
Standard Chartered Bank (Banking I ndustry) Standard Chartered Bank is the largest
international bank in Bangladesh with 26 Branches, 57 ATMs and 7 Financial Kiosks;
employing over 1,300 people. Standard Chartered the only foreign bank in the country with
presence in 6 cities Dhaka, Chittagong, Khulna, Sylhet, Bogra and Narayanganj; including the
countrys only offshore banking units inside Dhaka Export Processing Zone (DEPZ) at Savar
and Chittagong Export Processing Zone (CEPZ).Standard Chartered has been operating in
Bangladesh for over a hundred years.
HSBC(Banking I ndustry) In Bangladesh, the HSBC Groups history dates back to 1996
when The Hongkong and Shanghai Banking Corporation (HSBC) Ltd opened its first branch.
Today, the HSBC Group offers a comprehensive range of financial services in Bangladesh
including commercial banking, consumer banking, payments and cash management, trade
services, treasury, and custody and clearing.
Citi NA (Citi Group, Banking I ndustry) Citibank N A a foreign private bank in
Bangladesh and Citi has established a strong presence in Bangladesh. It now has four branches,
four service outlets and employs more than 180 people. Citis clients in Bangladesh comprise
both public and private sector institutions.

Ford In Bangladesh
3

Siemens (Electronics) Siemens is one of the leading companies in the growing area of
electrical engineering and electronics sector in the world. Siemens is a German electrical giant
company and operating in 190 countries across the world. Siemens is creating leading-edge
innovations for better life, and driving profitability and corporate responsibility around the globe.
Siemens started his journey in Bangladesh in 1956. Siemens have contributed in Bangladeshs
major modernization and infrastructure development programs. Siemens have successful
concentrated in the power and energy sector of Bangladesh.
British American Tobacco (Cigarette) British American Tobacco Beginning their
journey 100 years back in Bangladesh and they have started their journey properly in
independent Bangladesh in 1972 that time the name of the company was Bangladesh Tobacco
Company Limited. In 1998, the Company changed its name and identity to British American
Tobacco Bangladesh Company Ltd. British American Tobacco Group, the worlds most
international tobacco group with brands sold in more than 180 markets across the world.

Nestle Bangladesh Nestl with headquarters in Vevey, Switzerland was founded in 1866
by Henri Nestl. Nestle is today the worlds leading nutrition, health and wellness Company.
Nestl Bangladesh Limited started its first commercial production in Bangladesh in 1994.Factory
of Nestl in Bangladesh situated at Sripur.500 people directly working in Nestle and indirectly
more than 1000.

Youngone(Garments I ndustry)
Youngone Padding (Cepz) Ltd office address:
Plot # 9-11, 18-20, Sector # 07, Chittagong Export Processing Zone
Chittagong, Bangladesh
Phone: +880-31-740466-67, 740184

Pragoti I ndustries Limited Pragoti Industries Limited is a Bangladeshi car assembling
and car parts manufacturing company headquartered in Chittagong with a manufacturing plant
in Agrabad. Founded in 1966, it is country's largest car assembling plant and it has assembled
and marketed more than 50,000 vehicles such as cars, Jeeps, Buses, Trucks, Pickups,
Ford In Bangladesh
4

Ambulances, Tractors of multiple models by importing CKD (Complete Knocked Down ) kits
from overseas.

Aftab Automobiles Ltd In 1981 the Company was converted into Public Limited
Company which is the lone largest assembler-cum-progressive manufacturer of Toyota & Hino
vehicles in the private sector of the country.The Company is mainly a vehicle assembler and
body fabricator. It has been successfully assembling TOYOTA & HINO vehicles for Bangladesh
market since 1982.


Company Overview

Ford Motor Company (Ford), incorporated on July 9, 1919, operates in the global
automotive industry. Ford operates in two sectors: Automotive and Financial Services. The
Company manufactures or distributes automobiles across six continents. Its automotive brands
include Ford and Lincoln. The Company's Automotive sector includes Ford North America, Ford
South America, Ford Europe, and Ford Asia Pacific Africa regions. During the year ended
December 31, 2012, the Company sold approximately 5,668,000 vehicles at wholesale
worldwide. Other Financial Services includes a range of businesses, including holding
companies and real estate. The Company and its subsidiaries are also engaged in other
businesses, including financing vehicles. Ford provides financial services through Ford Motor
Credit Company. Effective September 26, 2013, Ford Motor Co acquired Livio, a developer of
software.
The Ford Motor Company (also known as simply Ford) is an American multinational automaker
headquartered in Dearborn, Michigan, a suburb of Detroit. It was founded by Henry Ford and
incorporated on June 16, 1903. The company sells automobiles and commercial vehicles under
the Ford brand and luxury cars under the Lincoln brand. In the past it has also produced tractors
and automotive components. Ford owns small stakes in Mazda of Japan and Aston Martin of the
United Kingdom. It is listed on the New York Stock Exchange and is controlled by the Ford
Ford In Bangladesh
5

family, although they have minority ownership. It is described by Forbes as "the most important
industrial company in the history of the United States.
The Company sells vehicles to its dealerships for sale to fleet customers, including
commercial fleet customers, daily rental car companies, and governments. Ford also sells parts
and accessories, primarily to its dealerships (which in turn sells these products to retail
customers) and to authorized parts distributors (which in turn primarily sells these products to
retailers). Through its dealerships, it also offers extended service contracts to retail customers
The Company sells vehicles to its dealerships for sale to fleet customers, including commercial
fleet customers, daily rental car companies, and governments. Ford also sells parts and
accessories, primarily to its dealerships (which in turn sells these products to retail customers)
and to authorized parts distributors (which in turn primarily sells these products to retailers).
Through its dealerships, it also offers extended service contracts to retail customers.
Marque Country of origin Years used/owned Markets
Ford United States 1903 to present Global
Lincoln United States 1922 to present North America, Middle East
Mercury United States 1939 to 2011 North America
Edsel United States 1958 to 1960 North America
Merkur United States 1985 to 1989 North America
Jaguar United Kingdom 1989 to 2008 Global
Ford In Bangladesh
6


How Ford Enter Into Bangladesh

AG Automobiles Ltd. (AG Auto) was incorporated in August 2004 with a view to
rejuvenating the countrys transport sector. AG Auto took up projects to create awareness of
cleaner environment directly amongst the commercial vehicle owners. Long-term soft loan
financing was bundled to vehicle owners to make the switch from diesel to environment friendly
Compressed Natural Gas (CNG)
Commitment and performance led to getting attention from other world-renowned
automobile brands seeking to enter and penetrate the automobile market of Bangladesh.
Consequently, AG Auto received distributorship rights of Global Automobile Icon Ford Motor
Company.
Ford, the third largest automaker of the world with production of 6.553 million vehicles
in 2007, has partnered with AG Auto with the promise to bring new dimension in the
automobiles industry of the country.
AG Auto has constructed a state-of-the-art sales and service centre by incorporating the
Corporate Identity of Ford, and is committed to render the highest standards of customer
satisfaction.
Abdullahpur, Uttara, Dhaka - 1230, Bangladesh
Ph: 8911880, 9564033
Fax: 88-02-9564020
Aston Martin United Kingdom 1989 to 2007 Global
Volvo Sweden 1999 to 2010 Global
Land Rover United Kingdom 2000 to 2008 Global
Ford In Bangladesh
7

E-mail: ford@anwargroup.com
Web: anwargroup.com/ford

Why Ford Came into Bangladesh


Commercial relationship between Bangladesh and the United States will be further
enhanced as the world-renowned Ford Motors of America extended their business to the
country.The economic growth of Bangladesh will increase day by day for such reliable and
strong partner, Commerce Minister Lt. Col. (retd) Faruk Khan Monday said while inaugurating
the showroom and service centre of Ford Motors at Abdullahpur in the citys Uttara area. The
motor company will run its business in Bangladesh under the management of AG Automobiles
Limited of Anwar Group. Requesting the American company to develop their customer
service in the country, the minister also hoped that the Ford Motors would come forward in
social welfare activities, especially for the welfare of the labourers and the poor, according to
reports.
Motor Car Trends in Bangladesh
The trend and popularity of motor car is increasing day by day in Bangladesh.
Surprisingly, not only the young generation but also middle age even an increasing number of
older pupils are considering having a car. The trend is much higher in the capital Dhaka and
Chittagong. The most obvious reason behind that is, the amount of traffic in the roads.

Bangladeshi auto industry continued to grow in 2000, on target to breach 200,000 units of
brand new vehicles. Bangladeshi car buyers enjoyed a healthy slate of new models, with multiple
launches nearly every month of the year. The year was neatly bookended with the launch of an
American icon, and the return of a Japanese economy model.



Ford In Bangladesh
8

No of car importer in Bangladesh:

The number of car and car parts importer are increasing day by day and that is the
indicator that no of car user of Bangladesh is huge. So, where people can trust the importer and
their imported cars even most of the cars are imported from Japan those are mainly recondition
car. so why not ford, because ford has its own showroom in Bangladesh, where people can
choose their brand new car with high satisfaction. HSB Car's, Al-Marjuk Trading , Auto
Plus ,S.N. Motors ,Hoqu's Auto, Mile Stone and so many importer who imports car in
Bangladesh. So it's also an indicator that Bangladeshi people are love to use different model of
cars.
Rise of the sports cars:
Economy is all well and good, but we still need cars that teenagers can put up on their
bedroom walls, and adults can use as wallpaper for their computer screens. 2000 was the year of
the sports car, in one important way-affordability. Automakers brought out a gaggle of models
that are within reach of anyone in the market for an executive car. Because the young people are
becoming more fascinated with sports car now a days ,so for can serve them a list of sports car
those are worldwide popular.



Ford sports car: 2011 Ford Shelby GT350, 2011 Ford Mustang V6, Ford Mustang GT, 2011
Ford Fusion, Ford Shelby GT500, Ford Focus RS, Ford Fiesta ST500, Ford Shelby GT500KR,
Ford Interceptor Concept etc now we can see in Bangladesh road.



Ford In Bangladesh
9

Ford and Bangladesh Market For Car Business

A measure of the amount of sales or adoption of a product or service compared to the
total theoretical market for that product or service. The amount of sales or adoption can be an
individual company's sale or industry while the theoretical market can be the total population or
an estimate of total potential consumers for the product. In Bangladesh there are 154.7million
people in a country and the economic condition of Bangladesh is growing day by day so if now
approximately 10 million of those people have cars then the market penetration of cars would be
approximately 22%,which may be a good sign of growth for car makers. In general, the older the
offering or industry, the greater the market penetration.

Bank Car Loan Scheme In Bangladesh

Now a car is no longer luxury but necessity. Moreover, a car is more than a symbol of
prestige. All banks of Bangladesh offers you to materialize your dream of owning a car through
car loan facility.
Any Bangladeshi individual who has the means and capacity to repay bank loan ; In
specific terms, these could be salaried executives of multinational and middle to large size local
corporate, Government officials, Officials working in reputed NGOs (Non-Government
Organizations), international aid agencies & UN bodies, any tax paying businessmen of repute,
any employed / self-employed tax-paying individual having a reliable source of income. They
Can easily to get Auto Loan from Any Bangladeshi Bank.

Target Market& Customer

The organization like Ford motors is using Differentiated Strategy in their businesses.
This strategy is to targets two or more segments by developing marketing mix for each segment.
Ford Motor Company designed to appeal to many different types of consumers and to satisfy
many different needs in the form of economy cars, sports cars, luxury cars, station wagons, vans,
trucks, and so on. So, we can say that in Bangladesh ford target customer are everyone, Because
they provide all types of cars based on the customer needs.
Ford In Bangladesh
10







SWOT Analysis of Bangladesh for MNC business propose




















Strengths Weaknesses
Large presence of multinational
enterprises in electronics and automotive
sectors.

Poor quality education and inadequate
supply of skilled labour.
High competitiveness ranking. High competitiveness ranking
Relatively young population. Little entrepreneurship and venture
capital .

Opportunities Threats
High-technology exports. Competition from other Asian
economies.
Islamic banking and finance centre. Political instability.
High corruption. Impacts of regional and global economic
downturns.
Ford In Bangladesh
11

conclusion:

Requesting the American company to develop their customer service in the country, the
minister also hoped that the Ford Motors would come forward in social welfare activities,
especially for the welfare of the labourers and the poor, according to reports. Commercial
relationship between Bangladesh and the United States will be further enhanced as the world-
renowned Ford Motors of America extended their business to the country.
Ford is known the world over for reliable, affordable automobiles that suit the varying lifestyles
of the modern world. From the Model T, the car that first brought driving to the masses, to more
recent favourites like Focus, Mustang and Explorer, Ford vehicles have been among the worlds
most popular cars and trucks While value for money has always been a top priority in developing
Ford vehicles, that concern has never compromised quality or the pursuit of quality solutions.
Ford has always focused on consumers real-life requirements from smaller cars for modern
cities , to smarter cars for the ever-changing environment AG Automobiles Ltd. (AG Auto) a
concern of ANWAR GROUP, was incorporated in August 2004 with a view to rejuvenating the
countrys transport sector. AG Auto took up projects to create awareness of cleaner environment
directly amongst the commercial vehicle owners. Long-term soft loan financing was bundled to
vehicle owners to make the switch from diesel to environment friendly Compressed Natural Gas
(CNG). Commitment and performance led to getting attention from other world-renowned
automobile brands seeking to enter and penetrate the automobile market of Bangladesh.
Consequently, AG Auto received distributorship rights of Global Automobile Icon Ford Motor
Company. Ford, the third largest automaker of the world with production of 6.553 million
vehicles in 2007, has partnered with AG Auto with the promise to bring new dimension in the
automobiles industry of the country. AG Auto has constructed a state-of-the-art sales and service
centre by incorporating the Corporate Identity of Ford, and is committed to render the highest
standards of customer satisfaction.





Ford In Bangladesh
12

References:

www.anwargroup.net/html/s_automobiles.asp
www.asiapacific.ford.com
www.ford.com
www.fordfoundation.org
www.wikipedia.com