Cement Industry in Bd

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DETERMINING PORTER’S FIVE COMPETITIVE FORCES OF CERAMIC INDUSTRY Industry structure grows out of a set of economic and technical characteristics that determine the strength of each competitive force (Porter 2008). An industry’s dominant economic features are defined by such factors as market size and growth rate, number of rivals, scope of competitive rivalry, number of buyers, degree of product differentiation, product innovation, supply or demand conditions, pace of technological change, vertical integration, economies of scale and learning or experience curve effects (Thompson et al. 2007). Porter’s model is based on the insight that the competitive strategy of an incumbent or a company should be based on an understanding of industry structure and the way they change (Aliakbari and Tousi). In this section, the industry environment of ceramic sector will analyzed by five recognized competitive forces developed by Michael E. Porter (Porter 1980). This analysis presents a picture of industry’s growth situation and its attractiveness. Jahan: Ceramic Industry of Bangladesh 1. Competitive Rivalry within the industry The ceramic industry of Bangladesh faces stiff competition from foreign sources like Sri Lanka, China and Thailand but the domestic marketplace is yet weakly competitive. Ceramic manufacturers like Monno Ceramic, Shienpukur Ceramic, Standard Ceramic, FARR Ceramic and Bengal Fine ceramic are still leading, especially in the export market, and have been recently expanding their plant to further improve their share of export market. All other ceramic manufacturers are also increasing their production capacity following robust growth in demand for ceramic wares. Due to the global recessionary
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