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Prepared for:
DR. Ataur Rahman
Faculty Member
Prepared by:
Falil Mohiuddin Galib
Student ID: 19G10002
MBA Program
Department of Business Administration
13 Problems finding
14 Recommendation
15 Conclusion
Executive Summary
Partex board: Raw material of this board is cheeps of solid timber. It is made high technological
machineries.
Wooden furniture: The wooden furniture is made by Furnitex board which is attached with the
veneer. The whole frame of the product is wood and the body is made by Furnitex board besides
many wooden furniture are made by traditional way which is made by pure wood.
This report is divided into three parts, the introduction part, organization part and conclusion. The
introduction part discusses origin of the report, history, Vision, Mission, Values, etc. the
organizational part describes the corporate structure of Partex Furniture Indus. Ltd. and the
Conclusion part discussed over all findings, recommendation.
Introduction:
a. Origin of the report: this report is requirement for the partial fulfillment of my MBA
program course Principles of Marketing (CC-506)
b. History: Partex Furniture is a leading manufacturing furniture, brought revolutionary
changes in the furniture market in our country since its start 2000 and owned by Mr. Aziz
Al Kaiser. First it had started in a small scale, but today Partex Furniture is fully equipped
with latest technologies.
c. Scope: Partex Furniture is a world class furniture providing company, has a big functioning
network of its business in our country and other country. It has several Gallery and
Branches. I have tried to cover about marketing strategy of Partex Furniture.
d. Limitations: For the want of the proper data and reliable resources I cannot include the
financial information in this report.
e. Data collection methodology: I have collect the information from the Secondary data, such
as: Companies journal, brochure, articles, websites and Monipuripara Gallery.
VISION
We are the leading furniture solution provider in Bangladesh achieving our business vision through
growth in market reach, increasing operation size, international distribution, total service and
consistent branding activities by the being most customer focused & Innovative, cost effective &
efficient, environmentally responsible & quality concerned company in the business.
MISSION
VALUES
We believe our success depends on our customers. Thus, our primary value is fulfillment of our
customer's needs. Our manner of achieving this success is to include value for money, different
price ranged functional products, complete solutions, free technical consultancy services, after
sales support, efficient delivery, and above all quality products that exceeds expectations. We
believe in providing our customers new and innovative products with international standards to
match with the changing lifestyle of today.
We believe our competitive nature thoroughly ensured as when we provide highest quality
products in the most perceived prices. We are committed to our value in relationship with our
stakeholders where our core product is associated with efficient and reliable services.
We believe in maintaining, operating our business in such a manner so that it is sustainable for the
future. We want to combine economic use of wood and create wood substitute products for our
furnishing needs and constantly devote our production, research & development to remain
environmentally responsible. We are committed to find new methods and technologies to improve
our services. We believe excellence is our only standard for all our approaches.
Segmentation, Targeting & Positioning (STP) of Partex
Furniture:
Segmentation:
Positioning:
Positioning or Market Share: Per year:
It is clear that Partex Furniture is in the second position in the Furniture market of Bangladesh.
Summary of
Marketing strategies
Pricing
Strategy
Distribution
Promotion
Marketing Mix
4P’s 4C’s
Product Customer solution
Place Convenience
Promotion communication
Because of vertical integration, Partex enjoys some competitive advantage compared to its
competitors.
Partex has invested Tk.100 crore in the furniture industry and this huge investment acts as an
entry barrier to its potential new entrant.
Partex will also be able to realize Economies of scope since they are fully integrated in the
furniture industry i.e. from producing raw materials to distributing them.
Thus the two SBUs in the furniture industry: one is timber based furniture and the other is panel
based furniture.
Interestingly enough the generic strategy for Partex is not ‘Cost Leadership and Differentiation’
rather it is differentiation (not pure differentiation) backed up by absolute cost advantage. The
result is Premium price charged for products similar to the competitors and obtaining lower cost
than pure differentiators and higher levels of profits than firms pursuing only one of the generic
strategies.
Research and development: Depends mainly on customer feedback for new product development
and communicates this to other functional areas, such as production.
Production: Concentrating on reaping most benefits out of panel based furniture due to low lead-
time, automation and sound vertical integration. At the same time, inefficiencies in timber-based
furniture are attempted to be countered with high design and craftsmanship quality and doing batch
processing to minimize costs.
Global level strategies:
It is not planning to put any manufacturing set up in the host country. Partex will manufacture its
products exclusively in the home country. As Partex’s current targeted foreign market is UAE it
has low pressures for Cost Reductions. Pressures for Local Responsiveness are low as well.
Corporate Structure
Strengths Weaknesses
Corporate Culture
Strengths Weaknesses
Strengths Weaknesses
Strengths Weaknesses
advantage
Capacity planning possible in panel
based furniture
own supply channel ensures smooth
flow of RM
labour and technical teams ensure
Human Resource
Strengths Weaknesses
Consistent with missions, as These policies are not stated clearly only
employment is generated merely implied
Training provided in a regular basis
Opportunities Threats
Intensity of Rivalry
Due to the size of Partex, the business Brand image pioneered by Hatil and
can expect lower intensity of rivalry Otobi – Partex not the pioneer
Currently in an oligopoly Timber based furniture industry is in
mature stage
possibility for being highly High capital investment leading to high
consolidated in the future due to its exit barriers
size, investment and integration
The brand furniture is growing
differentiated
No prominent labour union leading to
barriers
The group is not so dependent in the
Chairman being the member of the The market is a free market and open to
Parliament can forecast regulatory any new entrants.
changes better than competitors.
The current differentiation strategy of
Partex strong enough to bar both new
and existing competition.
Partex gauges expected retaliation
Threat of substitutes
Close substitutes are not performing in
the same market segment
Business-Level Strategy
Principal Issues
Partex’s Strategic managers plan of action for using the company's resources and distinctive
competencies to gain a competitive advantage over its rivals in the local market is based mostly
on its cost advantage over the competitors. At the heart of the generic business-level strategy for
the company lie the choices concerning product differentiation, market segmentation, and
distinctive competency. These issues of Business level strategy formulation according to Partex
are discussed below:
The differentiation of furniture according to the need:
The study on Partex’s product offerings connote that the company follows two different strategies
for both Panel-based (Knockdown) furniture and Timber-based furniture. These current strategies
are as below:
Office furnishing.
Kitchen furnishing with customization.
Home furnishing for ‘lower middle’ class.
CURRENT STRATEGY:
Always tries to pursue new product development focusing on quality, design and customer
needs, providing feedback to both customers and specialized functions, in order to expand their
market.
RECOMMENDATION:
Enhance aggressive marketing through consistent pricing perceptions within customers, having
more outlets, and pursuing other media to promote
Corporate Strategy
Current Strategy
Partex has vertically integrated into the furniture industry. Partex had the upper hand in producing
the particle board which is the raw material to produce furniture and they used to supply this
particle board to other furniture-making companies to produce furniture. But the corporate
managers decided that they could vertically integrate into the furniture industry since they would
be producing their own raw material. They also came up with an innovative idea of making use
of the unused part of the log which they use for making particle boards. Partex also has a
widespread distribution network which it can use for the furniture as well.
It may be added that Partex has vertically integrated in other businesses as well apart from the
furniture industry. For example, under Complex-II Partex had Danish Condensed Milk (BD) Ltd.,
Danish Food Products, Danish Milk Mills Ltd. Then Partex vertically integrated and came up
with Danish Distribution Network Ltd.
Because of vertical integration, Partex enjoys some competitive advantage compared to its
competitors.
Partex has invested Tk.100 crore in the furniture industry and this huge investment acts as an
entry barrier to its potential new entrant.
Partex will also be able to realize Economies of scope since they are fully integrated in the
furniture industry i.e. from producing raw materials to distributing them.
SBUs
They have two SBUs in the furniture industry: one is timber based furniture and the other is panel
based furniture
Timber Based: This SBU is considered as a Question Mark since the relative market share is
low, but there is tremendous potential for growth in this industry. This SBU needs a lot of cash
injection which Partex has already done and plans to do the same in future.
Panel Based: This is considered to be a Cash Cow. They have a high market share and they are
generating positive cash flow for Partex.
Partex is finding it very difficult to integrate all their businesses in the industry. In addition, Partex
has a very complex structure. Thus their bureaucratic cost is very high.
Recommended Strategy
Partex should change its current organization structure and make it more simple so that their
bureaucratic cost can be lowered which will give them a competitive advantage.
Problems Finding:
Recommendation:
1. After Sales Service: After Sales Service should be provided at all the
Show-room. It will save time and effort of the people.
2. Design of some Furniture: Some product design of the company are very
traditional. There are so many product similar to our design are now
available to our competitor.
3. Drop out slow moving product:
4. More Advertising: To increase the sales advertising on Print media,
Electronic media should be increase.
5. Dealer increasing: Dealer should be available in all district. Then I have to
find out according to the market potentiality for more than one dealer in
the same market.
6. Marketing Plan for Slow Moving Product: Plan for slow moving product
such as; Hospital furniture.
7. More Tanning for the officer Level: At present more training is needed
about the salesmanship. Market research for find out the target market,
dealing product knowledge, product development, marketing product etc.
for the salesman and sales personnel.
8. Marketing Research: Market research for each brand has to be done for
getting the clear picture for product positioning against the competitor
products and finding out furniture.
9. Budget: The budget will be required to upgrade as its targeted future.
Conclusion:
It is impossible to have a clear-cut idea of a big company within a short time. But according to
my observation this company is suffering from a tremendous problem in following areas, which
are the main obstacle for the company optimum growth:
Company is in developing stage. Gradually it is trying to figure out its system fall and week corner.
In spite of many problems, it is the pioneer in furniture industry in our country. Hope it will be a
systemic and standard organization.