Bangladesh S Readymade Garments Factory
Industry Analysis.
Free market.
Five Forces Analysis.
1. Competitive rivalry between existing players.
2. Bargaining power of suppliers.
3. Bargaining power of customers.
4. Threat of new Entrants.
5. Threat of substitutes.
The southern Asian country of Bangladesh, bordered by India and Burma, has a population of approximately 164 million people. The Bangladesh economy has grown an average of six percent a year over the last two decades. The readymade garments (RMG) industry contributes to the Bangladesh economy in a distinctive manner. The last 20 years witnessed remarkable growth in this sector, which is also the largest exporting industry in Bangladesh. The industry plays a significant role in terms of employment. Nearly two million workers are directly and more than ten million workers are indirectly associated with the industry. In addition to its economic contribution, the expansion of RMG industry has caused noticeable changes by bringing more than 1.12 million women into the workforce. Hence it is quite apparent that this sector has played a massive role in the economic development of the country. Evan the GDP of (RMG) are growing up every year, in 1991 to 2005 the GDP was just only about 4 to 5 percent, but in 2013 it has reached 13 percent of GDP which is highly remarkable. The total export of Bangladesh is 22.90 billion US dollars of which 17.90 billion is from RMG sector that is equivalent to 78 percent of the total export earnings of the country.
One of the key advantages of the (RMG) industry is its cheap labor cost, Evan though the labors are very hard worker and highly professional. The factory provides a job opportunity for about 4million people about 70 percent are women who are mostly come from rural area. But there are lots of problem going on in the garments factory, in the recent years due to conflicts between the employers and the employees which are primarily concerned with salary and other benefits. Major accidents are also
Free market.
Five Forces Analysis.
1. Competitive rivalry between existing players.
2. Bargaining power of suppliers.
3. Bargaining power of customers.
4. Threat of new Entrants.
5. Threat of substitutes.
The southern Asian country of Bangladesh, bordered by India and Burma, has a population of approximately 164 million people. The Bangladesh economy has grown an average of six percent a year over the last two decades. The readymade garments (RMG) industry contributes to the Bangladesh economy in a distinctive manner. The last 20 years witnessed remarkable growth in this sector, which is also the largest exporting industry in Bangladesh. The industry plays a significant role in terms of employment. Nearly two million workers are directly and more than ten million workers are indirectly associated with the industry. In addition to its economic contribution, the expansion of RMG industry has caused noticeable changes by bringing more than 1.12 million women into the workforce. Hence it is quite apparent that this sector has played a massive role in the economic development of the country. Evan the GDP of (RMG) are growing up every year, in 1991 to 2005 the GDP was just only about 4 to 5 percent, but in 2013 it has reached 13 percent of GDP which is highly remarkable. The total export of Bangladesh is 22.90 billion US dollars of which 17.90 billion is from RMG sector that is equivalent to 78 percent of the total export earnings of the country.
One of the key advantages of the (RMG) industry is its cheap labor cost, Evan though the labors are very hard worker and highly professional. The factory provides a job opportunity for about 4million people about 70 percent are women who are mostly come from rural area. But there are lots of problem going on in the garments factory, in the recent years due to conflicts between the employers and the employees which are primarily concerned with salary and other benefits. Major accidents are also
References: Bangladeshi readymade garments industry. (14, Oct, 2014). www.helpme.com/ Bangladeshi readymade garments industry.com Ahamed, F. (2011). Working conditions in the Bangladesh Readymade Garments Industry. Bangla news, p. 12. Siddiqi, H. (2004). The readymade garment industry of Bangladesh. The university press limit.