Answer to the Question No 1

Companies differ from one another in the industry in the way how they set their products in the
market. Some factors affect the settings of the product like pricing policy, distribution channel,
market segments, and quality of products, advertising policy and promotional activity. For these
differences in the industries, it is possible to observe groups of companies in which each
company follows a strategy that is similar to that pursued by other companies in the groups, but
different from the strategy pursued by companies in other groups. These different groups of
companies are known as strategic groups.

Pharmaceutical Industry is a very big industry in Bangladesh. A similar kind of figure is drawn
based on the figure from the text book.

Figure 1 Strategic Groups in the Pharmaceuticals Industry of Bangladesh

BEXIMCO and Square have more than 500 types of medicine related products where small
pharmaceuticals companies like Ad din and Momtaz have around 30 and 3 medicine related
products.
Both Beximco and Square not only selling their products locally but also they are exporting their
products. Ad din is selling their products through their local sister concerns or mother
organizations which are usually hospitals or public health care organizations mainly where
Momtaz is selling their pharmaceuticals products in several village or sub-urban areas.

Both Beximco and Square invests a huge portion of their earnings in R&D and more production
facilities so that they can produce more types of medicines. Both of them has got FDA approval
(Food and Drug Administration, US). Addin and Momtaz do not have that much international
approvals which can reassure their standard of quality.

Both Beximco and Square have their huge Production factories for which they have reached or
can easily reach economies of scale. But for Momtaz and Ad din, they don’t have adequate
 facility wise as well as size wise production facilities. They even cannot grab instant business
opportunities like Beximco or Square.

Mobility barriers are the factors that hamper the ability of firms to enter or exit in an industry.
It also hampers the firms to move from one segment of an industry to another. Mobility barriers
is a term that includes barriers to entry, barriers to exit, and barriers to intra-industry changes in
market position. Apart from the above mentioned Mobility Barriers for Ad din and Momtaz
pharmaceuticals are given below-

1. Less Marketing Representatives and workforce

2. Less Vertical Integration
3. Less Political and Local Influence
4. Lack of properly trained Pharma executives or scientists in Bangladesh
5. Threat of unwanted overtaking by giants like Beximco and Square

Due lack of any competitive advantages these small pharma companies cannot or will not be able to
grab better market shares also.
 Answer to the Question No 2

Corporate-Level Strategy refers to the top management’s method or strategy for administering and
directing the entire concern. These are based on the company’s business environment and internal
capabilities.

The purpose of corporate level strategy is to increase long term profitability. Decisions are complex and
affects the entire organization in this strategy but these decisions are taken based cost benefit analysis
and organization’s ability to maintain administrative and bureaucratic works.

BEXIMCO group can be a proper example like the text book’s Sony’s Web of Corporate-Level
Strategy. If we see the subsidiaries of Beximco we will understand it more properly. They are-

 Beximco Jute Division

 Beximco Pharma
 Beximco Synthetics Ltd.
 Bangladesh Export Import Co. Ltd. – Textiles & Apparel Division
 Shinepukur Ceramics
 Beximco Petroleum Ltd.
 Beximco Power Company Ltd.
 Beximco Engineering Limited
 Bangladesh Export Import Co. Ltd. – Marine Foods Division
 Bangladesh Export Import Co. Ltd. – IT Division
 Bangladesh Online
 IFIC Bank
 Yellow
 The Independent
 Independent Television
 Akash DTH
  Bangladesh Export Import Co. Ltd. – Real Estate Division
 Beximco Computers Ltd.
 Dhaka Dynamites
 Bextrade Limited
 Beximco Securities Limited
 Beximco Communications Ltd. (DTH)
 Westin Hotels (Bangladesh)
 Shinepukur Cricket Club

Figure 2 BEXIMCO.s web of Corporate Level Strategy

Bangladesh Export Import Company Limited is the full name of BEXIMCO, it shows their main target
is export and import. Beximco has bought Shinepukur ceramics as they knew that it will be a very good
related diversification. Another main thing is that day by day Ceramic export is growing in Bangladesh.
Currently it is third biggest exporting product from Bangladesh also. Also it helps them to control the
share market also. They also provide raw materials to Shinepukur ceramics.

Beximco opened Yellow as their local as well as international brand where they can sell their premium
export quality clothing related products also. They have gone closer to their end users so that they can
get that extra margin of profit that their buyers get for selling Beximco made RMG products.

For proper administrative and operations purpose, a proper IT and internet based department or support
is required by any business. Beximco launched their own network and IT solution based business BOL
way long ago for they are not only getting profits also getting proper services for their own purposes.

Beximco has made an unrelated diversification by launching their own Akash DTH which is a dish
company for televisions. Within a very few days it has captured a huge market share also due to good
marketing and customer service throughout Bangladesh.
Beximco is a very large company which have more than 60000 employees globally. With better global
business connections and higher powers in terms of porter’s five forces model along with local political
and administrative support they have become one of the successful business group not only in
Bangladesh but also globally.
 Answer to the Question No 3
Business Canvas Model talks about the overall business idea at a glance. A basic Business model
canvas is given blow for Daraz Bangladesh-

2.1 Business Model CANVAS

Key Partners: Key Activities: Key Resources:
> Materials Suppliers, > Creating market place where > Computers,
> Local Businesses buyers and sellers can meet > Human Resource
> IT Specialist > Logistic support for product > Brand Value
> Online Shops pickup and delivery > Own Delivery SBU
> Logistic Companies > Warehouses where
> Authorized selling Partners they can store products
> Alibaba group > Free pickup points (
zero delivery charge)

Value Proposition: Customer Relationship:

Hassle free, quick, and trust worthy online shopping > Information service
> Customer Service Department,
> Emergency Service
> Customer Representative (of stalls in the fairs)
> Seasonal Promotional Offers for Customers,

Channels: Customer Segments:

> Office  people who use internet
> Website  people who uses Facebook
> Application  People who can order through app or website
> Stalls in the Fairs  People who are more discount focused
> Facebook Page
> Ecommerce website
Cost Structure: Investment Needed 50 lacs taka Revenue Streams:
> Salaries & Wages
Takes commission from the sellers
> Equipment cost

> Rental Cost

Takes extra charge for feature products
> Website Cost

> Security Cost Delivery service charge

> Advertisement Cost

> Utilities fee

> App maintenance Cost

Based on the current pandemic situation the opportunities for Daraz are-

 People are now buying more products from online

 People are now available more on online
 Bargaining power of sellers and suppliers have reduced due to lack of sales
 Bargaining power of buyers of has reduced due to lack of availability of the products

Based on the current pandemic situation the threats for Daraz are-

 Less availability of products as many sellers or suppliers cannot run their business operations
 Threat of substitutes has increased as many businesses are going online in order to survive or
to adapt. Even some sellers and suppliers are going online
 Rivalry among competitors has increased as everyone is going for the opportunities
 Lack of human resources
 Lack of previous video or live related programs
 Delivery related problems due to lock down
 Delivery persons may got infected while doing their works
Daraz has already changed their business model slightly as now merchants can sell their product
through daraz without providing them any commission. Also they providing some credit
facilities also.

Also Daraz has launched new gaming option to get discounts from their APPs also in order to
engage their buyers.
Daraz is also working with Alibaba foundation to provide medical products in hospitals also.

Daraz is also doing virtual office from home in order to get services from their employess.

Daraz is already doing great job in order to adapt in this present pandemic situation. My only
suggestion will they should not offer any bad products or merchants to its customers as currently
many of their products are very low quality for which they are losing their reputation.

References

https://www.facebook.com/Ad-din-Pharmaceuticals-Ltd-248333181876874/

https://beximcopharma.com/

https://www.squarepharma.com.bd/
https://medex.com.bd/

https://www.daraz.com.bd/