Macro-Environmental Analysis

PESTLE Analysis

Mini groceries food items are going to be launching in Bangladesh for the first time. Mini groceries food
items have brought standardization to the middle and lower class shopping experience. They're ready to
leverage their brand names to make trust in consumers and attract more customers within the process.
As these mini groceries markets are more relatable to the age old Mudir Dokans, they are available off
as more relatable to the consumer base. Moreover, the increasing income of the lower class has created
potential for more growth within the retail market.

Political Factors:
Currently, Bangladesh is enduring an unstable political situation and with a fear of severe political
unrest in upcoming days. Though, the government is encouraging new investment formally, the
investors aren't getting confidence for investment in current political situation of the country. If this
situation persists for extended time, both production and sales might fall in groceries food item industry.

Economic Factors:
Our economic development couldn't flourished due to political and lots of constraints .In this 21st
century our economic development goes on not rapidly but gradually. But unemployment, cheap rate
of wages and high rate of inflation are the most reasons behind our slow economic process. Due to this
slow economic problem we are trying to packaging some mini groceries items to reach the local
customer demand.

Social Factors:
Sociocultural factors prevailing in Bangladesh are in favor of development of mini groceries industry.
Few years back, the rural and suburban consumers preferred custom made mini packaging. But, new a
days, aside urban consumers, rural and suburban consumers also prefer readymade brand mini pack
groceries items.

Technological Factors:

Bangladesh’s technological scene is changing radically; especially with the launch of the Bangabandhu
Satellite the future is filled with possibilities (The Daily Star, 2018). This may have a big impact on
marketing for businesses, something that mini groceries food can make good use of. Whether it’s the
digital billboards, or social media, or mobile marketing, a big portion of target groups are often reached
through existing information technology in Bangladesh. The COVID-19 pandemic has been a game
changer for the retail space because it has forced shops to shut down and other people to remain inside.
The mini groceries items have taken this opportunity to leave their marks in the online grocery segment
by opening digital grocery services. Although these services have just gained popularity, they need been
around for quite a while.

Legal Factors
Legal factors are important for any business entering a replacement country. With its controversies
regarding labor practices, Mini groceries will need to pay concentrate to Bangladesh’s consumer rights
and labor laws and practices (Daily Sun, 2017).

Environmental Factors:

Environmental factors influencing the mini groceries food industry largely stem from weather. The
weather can for instance influence the growth and harvest of crops, fruit and vegetables or possibly
destroy them. This will cause issues with the supply chain which successively would influence pricing
within the mini groceries retailer, making these foods more costly for consumers. Favorable weather for
the growth of crops also will have an impact on pricing within the groceries markets. If there's
abundance and provide is higher than demand prices in groceries markets are going to be reduced on
these foods.

Micro-Environmental Analysis

Porter’s Five Forces

Competitive Rivalry:
The intensity of competitive rivalry within the food and grocery retail industry is extremely high. The
groceries market in Bangladesh is somewhat saturated and that is why mini groceries will face high
rivalry. The rivalry is high due to large number of shops and retail stores compete in the same industry
targeting similar market. Mini groceries will compete with many local brands like Pran, Boshundhara,
Fresh etc. in Bangladesh. They're stable within the market. Moreover, they need captured a big amount
of market share. Secondly, low switching cost of buyers is one more reason to make high rivalry. When it
involves to groceries industry, buyers prefer to buy what is trending and they wish to choose for special
offers, like after Eid discounts. Buyers can switch to other brands at any time, which increases rivalry.
We believe that our brand images are going be our competitive advantage.

Threat of New Entrants

Since it's easy for a firm to enter the groceries food industry in Bangladesh, threats of new entrants are
going to be high. Moreover, there are other reasons for high threat of new entrants like low switching
cost of buyers, high access to necessary inputs, low found out cost and absence of government created
barriers in this industry. However, we believe our unique and quality products will make us stable within
the market.

Threat of Substitutes:

Threats of substitutes are going to be high because the demand of the products offered by mini
groceries can be affected by the price change of substitute brands. Since customers and consumers have
many alternatives, they will easily switch to other premium brands. Other groceries store and local
brands also can be our substitutes. We believe that we will minimize this threat by offering uniqueness
and top-notch quality.

Bargaining Power of Buyers

Bangladeshi groceries food items has many international and local brands. So, people have more
substitute brands for bargaining. The switching cost for buyers is low due to the existence of other
substitute products and brands. Especially local brands have given high bargaining power to the buyers.
Additionally, nowadays buyers hold a lot of knowledge about hygienic groceries food items like rice,
flour, sugar, oil etc. To conclude, bargaining power of buyers are going to be high.
Bargaining Power of Suppliers:

The bargaining power of suppliers is fairly low. It should be noted that the suppliers are inclined towards
major food and grocery retailers. Hence, the position of the retailers is further strengthened and
negotiations are positive in order to get the lowest possible price from the suppliers.

SWOT analysis:

Strengths:

•We offer multiple category of product line with mini packaging items.

•We have enough sources to supply

•We offer at friendly environment

•Home delivery

•Skilled and committed employee

•Every kind of consumer items in a floor

Weakness:

•Many alternatives are exists

•comparatively high cost

•Unavailability of store and shop.

•New generation habituated to purchase anything from store and super shop rather from usual bazaar.

•Change in life style

•Increase number of outlets in potential areas

•Good profit professionals

Opportunities:

•Unavailability of super shop.

•New generation habituated to purchase anything from super shop rather from usual bazaar.
•Change in life style

•Increase number of outlets in potential areas

•Good profit professionals

Threats:

•Political Instability

•Financial instability

•Transportation problem

•Power shortage that increase our cost

•Established local market