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A Developing Strategic Analysis Orient Photoworld: Prepared By: Sagar Islam ID-2012121007 HND Business Intake 7
A Developing Strategic Analysis Orient Photoworld: Prepared By: Sagar Islam ID-2012121007 HND Business Intake 7
OF
Orient Photoworld
Prepared By:
Sagar Islam
ID-2012121007
HND Business Intake 7
Prepared For:
Mr. Ashiqur Rahman Bhuiyan
Head & Faculty
School of Business
BAC
Dhaka, Bangladesh
Orient Photoworld.
Now memories remain with us even we die so to store some memory now a days we use
camera,which is art of light now a days.Dslr cameras are now most popular among
photographers mainly nikon and canon.New series of every nikon and canon are ariving at
international market at regular basis for which dealers are realy confused to match with
international market.We the amature photographer goes after low budget DSLR camera and
lenses.Their are two types of sensors within a dslr camera-FX and DX format,two types of
lenses single focal length and variable focal length.Flora is only the authorised dealer of
nikon camera,other then that there are also many more camera dealers,but not all of them
provide rent and few days delivery.Orient Cameras & Photos provide rent of
lenses,cameras,flashes and necessary accessories.Its location is at Plaza A.R. shop no 407
and maintained by Mahfuz bhai,all products are brought from thailand.We have got people
who travells thailand frequently so they provide us with all things which we need if
ordered.Our product category are Lowerpro, Fotopile, Nikon, Canon, Marumi, Nissin, Yongnuo
etc.We try our best to serve our customer with best product at a reasonable price in current
market.
PORTERS FIVE FORCE- It examine the business domain or industry within which an
org operate and identify the business pressures that may be brought to bear upon that
organisation. Michael Porter devides the potencial sourse of pressures within the industry
into five categories- new entrance, competitors, buyers, suppliers, substitutes.
Buyers Power- As no of camera shops in dhaka is increasing burgaining power of buyers is
high as we totally depend on buyers. Many customers goes for low budget but want better
quality products, such as in shops in paltan people dont have faith in them as they mostly
provide refurnished product,second hand product. They might seem fresh without expert
hand no one can understand about it. They provide 1 year waranty of their own but its not
the rule, so for this reason people dont go after those shops. With advanced technology of
communication customers are aware of grey market, so it sometimes become difficult for us
to convience them. But as we provide intact product our customer of aged 18-35years trust
us. Few months back flora cant provide necessary products to customers as for them it take
time for shipment from (singapore, thailand) to bangladesh through ship. In (August
November 15) their was a rush of orders in Orient as we provide products of nikon and
canon 2 days of order and advanced money payment. All our shipment is done by people
close known to us who frequently travels to (singapore, thailand). So overall buying power is
huge and even a difference in money amount can create a big difference.Flora is losing
some of their customers for not having essential equipments in time when a customer need,
also price variance from us as we maintain our daily price list .We provide nikon products at
a reasonable price then high price in flora.
Suppliers power: For most of camera businessman Thailand is the perfect destination as its
the hub of world camera for about 20years (refurnised,brand new, second hand) all are
reachable for everyone at a reasonable business price. So it takes time but is easy for us to
make decision from where to buy as every option is available there from 1000shops.So
supply chain is also strong to meet the demand of customner needs. We maintain a good
relation with few shops at fotofile. Flora get their products direct from Thailand, Japan nikon
international manufcturer.So overall supply power is strong.
Competitiors- Now comes the real choice of customers to buy from, flora is the only
authorised dealer of nikon. So two mind setup comes within our customers, will we go for
flora authorised dealer (high price produstcs) or Orient, Camera world with less price then
flora limited better products. So it really depends on person to person fluctuating in their
decision. So loyality of customers is not reliable.
Substitutes- first party such as nikon and canon we also have third party(temron,sigma
etc)lense, flash producer, so substitutes products are available. Reliabilty is the big issue in
daling with customers so its their choice if they want to buy 3 rd party lense for nikon or
canon body with half of the 1st party lense price. So availability of substitue product is high.
New entrance- its easy for any1 to enter into this camera business with huge budget,but the
main object which is very difficult to control is price of the products, reliability, availability of
camera gadgets on time and maintaining relation with customers. So its hard and high risk
in this business.
Porters Five Forces Analysis delivers a message where the business should look into
survival. There are two ways/sets that the organization can choose for itself in order to attain
survival. The first set is by playing defensive, cutting down costs wherever possible and not
put to much money into additional investments. The other way would be to aggressively
market its products through professionals if necessary, cut down costs as far operations are
concerned and also smoothen the functions of overall operations by hiring skilled and
capable staff.
SWOT Analysis- It is used to consolidate the results from the external and internal
business environment analysis. It stands for Strength , Weakness, Oppurtunity, Threat.
Strength Its location is very vital for our business at dhanmondi, we are providing
canon,nikon,third party products,cleaning kit,bagpack,side back, flashes, tripods etc. Those
who cant afford to buy a lense provide rent for those person,has got strong connection with
photojournalist, fashion photographe.r, studio etc. try to give our customers products at less
price than flora limited.
Weakness- we are not the authorised dealer of nikon and canon, for which most of our
customers hesitate to take decision if they will buy products from us or not, if the product is
second hand,refurnished or not which comes into their mind,lack of marketing proficiency.
Oppurtunity We can bring different kind of filters, renowned 3rd party lense,flashes, get
available stock of necessary products when flora ltd or any other camera shops cant provide
photographers with.In this recission time we stocked nikon and canon products where flora
didnt have that stock of products which their customer neded. In that time we provided
products to those customer and made a good relation.
Threats If the government imposes taxes on those business we are doing then we might
lose proportion of our profit,if any other shop comes who gives better price product then us
and attract more customers with their package then we might lose our own customers.
After analysing SWOT the difference we get from flora is that we need to brand ourself in the
present market making a tag line that we deliver better product, waranty service whenever
is needed. So that no can point finger on us that we provide refernished,second hand
product to our customers.
Exisitng
New
Market Penetration
Development
Products
Product
New
Market Development
which we dont do which increases the marketing of its brand wholely in bangladesh, for
which its sales increases which makes us backfooted in many way.
Horizintal Integration The achievement of additional business at the same level of value
chain is reffered as horizintal intergration.It can be achieved by internal and external
expansion through merge and acquisition of firms offering similar products and
services.Benefits soughts by firms that horizontally integrates*economies of scale- Achieved by selling same produsts more,for example geographic
expansions.
*economies of scope- achieved by sharing resources
common to different products.
*increased market
power.
To beat flora limited we can merge with camera zone and camera world to take the share of
the market as a whole.We can merge with pathsala institue providing their students with
camera gears whichever they need. This will increase our sale, advertisement among young
photographers.
Vertical Inegration - Backward and forward integration are types of vertical integration. A
company that expands backward on the production path has backward integration, while a
company that expands forward on the production path is forward integrated.A company
manufacturing different products in one banner to achieve one goal of success. Such as
Flora limited doing business of laptop,printers,monitors (of different company),nikon
camera.This which we dont do.
Liquidition - The conversion of assets into cash. Just as a company may liquidate an entire
subsidiary by selling it to another firm, so too may an investor liquidate by selling a
particular type of security.The selling of assets and the paying of liabilities in anticipation of
going out of business. We are not in a state to liquidating our businesss
Identifying Stakeholders
The possible list of Orion Photoworld stakeholders*Boss manager staffs - print media banks government interest group journalist
Photo studio fashion designer researchers - the community.
GSM Matrixs :
A grand strategy matrix can help you plan a strategy for your small business. This matrix
has become the standard for businesses small and large. Develop a grand strategy matrix
by examining your ability to grow rapidly or slowly while evaluating your competitive
strengths and weaknesses.The four Quadrants as follows: Strong Competitive Position, Weak
Competitive Position, Slow Market Growth, Rapid Market Growth.
Quadrants 1. This quadrant is meant for companies that are in strong competitive position
and rouring with market growth. The companies have an excellent strategic position and
should focus on current markets and product and its development strategy. With resources
they can also expand in backward, forward, or horizontal integration. Companies in this
quadrant can afford to exploit external opportunities and enhance their financial muscle .
Suppose we are dealing with single product line up imean only cameras so we must divert
our production in another to avoid rish as our products are slender. In this case Flora is doing
good in diverting their production.
Quadrants 2. Companies in this quadrant of the GSSM have weak competitive position in a
fast growing market. Companies here are in growing market but they are competing
ineffectively. An intensive and effective strategy must be adopted. Companies can adapt to
horizontal integration. If they cannot have a suitable strategy, then bankruptcy of some
divisions can be considered. As a last resort, liquidation can be considered and another
business can be acquired.We can go for liquidatin as our position in the market is not stable
as market price of our products fluctuate if we want to liquidify our resources then we might
have to bear loss which we cant cover at long term basis.
Quadrants 3. Here companies are in a slow growth industry with weak competition. Drastic
changes are required. The management must change its philosophy and new approaches to
governance are the need. Overall revamping at a cost may be warranted. Strategic asset
reduction, retrenchment may be the best option. Diversifying by shifting the resources may
be another option. Final option could be divestiture or liquidation.
Quadrants 4. the companies are in strong competitive position, but in a slow growth
industry.Companies must look for promising growth areas and to exploit opportunities in the
growing markets as they have the strength. These companies have limited requirement of
funds for internal growth and enjoy high cash flow due to a strong competitive position.
They can look for related or unrelated diversification with cash flow and funds; they can also
look for joint ventures.
products as we dont have any parmanent address after merging with camera world and
camera zone. The budgets to setup everything from service center to photostudio.Posibility
of creating customer care centre which wiil get us accessible to our weakness
For Flora finding recruitment for their service center as they are not active at the moment,
exploring a re-negotiona with their shareholders about their pricing method. Finding holes in
other diversified business such as laptop,monitor,nikon bag, printer businness, so that they
dont lose their mnarket position from this products while concentrating on nikon business
only. They can seperately build a administrative panel whose task will be only to look for
camera business,so that they dont have to give more time to this particular business.
Developing their skills in handling cameras in service centre,recruiting more employers who
are proficient in this particular area,training them from authorised service centre in thailand,
singapore and japan.
References