Assignment of Marketing Management (Mkt 302)
Name- Farhan Alam
Submitted to Mohammed Sohel Isam
Square ventured into the business of textiles during 1997 with the opening of its first unit with an estimated investment of $20 million. Then it went into further expansion with the opening of its unit 2 in the year 1998 with an estimated cost of $13.50 million. The target market of Square textiles is the export oriented readymade garments. SQUARE Textile has over 12 years of experience in yarn spinning. The industry is one of the largest producers of knitting & weaving yarns in Bangladesh. Today it has one of the most sophisticated vertically integrated set-ups by which we are producing 90,000 kg of yarns every day. We are recognized by our valued customers through quality products with committed services Current market situation:
Square Textiles Ltd. is a rapidly expanding Company. After starting its journey in 1998 it has already doubled the net turnover by the year of 2006. All the units of the factory enjoy higher use of machinery that is imported from Germany, Switzerland, Italy & Japan. As a result, it can maintain a smooth rate of production. Well trained human recourses are strengths of the company. The company has created sustainable cost advantage over rivals with regard to same product or service. For instance Research and Development cost for Square is low and it is also lower then that of 2008 which decreased by 62%. Also Selling and Distribution cost has decreased by 3% when sales in 2009 has increased by 20%. This shows that they have certain advantages over cost. Also it can be seen that inventory has increased by 106% and accounts payable by 119% which indicates that they have strong bargaining power with their supplier. Hence, they will be able to procure at a low cost in the future and so gain cost advantage over their rivals. All this also explains that they will have an efficient production. Bextex on the other...
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