Report on Repwoop IT

Group A
(Section 18)
Fall 2019

Submitted to
Syed Javed Iqbal
Course Instructor
Department of Management
North South University

Submitted by
Md. Nazmul Fahad 1631682030
Fariha Fairooz Ramisa 1530405630
Ramisa Maliha Urbi 1610060030
Irtifa Rahman 1521710030
Umme Habiba 1631132630
Md.Khairul Basher Sujon 1330149030
Letter of Transmittal

Syed Javed Iqbal

Course Instructor of Management 489
Department of Management
North South University
18th December, 2019

Sir,
With due respect, we are delighted to submit the attached report about Repwoop IT, one of the
emerging information technology based company of Bangladesh. This report consists substantial
analysis on Repwoop It and its’ strategic management procedures. In preparing this report, we
have followed your guideline and as per your instruction, we have added some further information.
From this report, we have learned how to apply management strategies into real life and it has
created a very strong basis for our knowledge.
We sincerely hope, this report will be able to satisfy you and we also hope we could serve you as
per your expectation. If you have any question, after going through the report, please let us know.

Sincerely
Md. Nazmul Fahad
Ramisa Maliha Urbi
Md.Khairul Basher Sujon
Irtifa Rahman
Umme Habiba
Fariha Fairooz Ramisa
Acknowledgement

Firstly we would like to thank the almighty. We are also grateful to our course instructor, Syed

Javed Iqbal for providing us immense support whenever we needed. His valuable suggestions have

always provided us motivation to go deep inside a concept and understand further more. Finally

we would like to show our gratitude to our institution North South University for providing us an

opportunity to complete a course like this which covered all the basic concepts of strategic

management.
Executive summery

Repwoop IT is an IT firm having expertise on affiliate marketing, software prototyping, custom

software development, making and maintaining of web page, enterprise application integration

and testing. They are part of IT industry which is in its growth stage. After evaluation competitive

forces it is found out that the company faces high risk of new entrant, high competition as the

bargaining power of customer and threat of substitutes both are high. The distinctive competency

of the firm is their expertise on affiliate marketing. After conduction the financial analysis, we

found out that the company possess good liquidity position. It also has favorable net profit, asset

and equity turnover. Based on the analysis, our suggested corporate level strategy is strategic

outsourcing, expansion and diversification. The suggested business level strategy is broad low cost

strategy. And suggested functional level strategy is to emphasize heavily in R&D and employee

development. For technology, the suggested strategy is to use up to date platforms. Finally for

global expansion, the recommended strategy is global standardization. Repwoop IT currently

follows personal control system and the ongoing culture suits this strategy as well.
Table of Contents
About Repwoop IT ......................................................................................................................................... 2
Internal Analysis ............................................................................................................................................ 3
Resources ................................................................................................................................................... 3
Capabilities ................................................................................................................................................. 3
External Analysis ........................................................................................................................................... 4
Industry Identification................................................................................................................................. 4
Competitive Forces Analysis ...................................................................................................................... 4
Industry Life Cycle Analysis ........................................................................................................................... 5
PESTLE Analysis ........................................................................................................................................... 6
SWOT Analysis.............................................................................................................................................. 8
Strengths: ................................................................................................................................................... 8
Weaknesses ................................................................................................................................................ 8
Opportunities: ............................................................................................................................................. 9
Threats: ...................................................................................................................................................... 9
Business Definition of Repwoop IT .............................................................................................................. 10
Distinctive Competency & Competitive Advantage ...................................................................................... 10
Current Business Model ............................................................................................................................... 11
Financial Performance .................................................................................................................................. 14
Recommendations ........................................................................................................................................ 18
Corporate Level Strategy .............................................................................................................................. 19
Foreign Market ......................................................................................................................................... 19
Bangladeshi Market .................................................................................................................................. 20
Business Level Strategy ................................................................................................................................ 21
Functional Strategies .................................................................................................................................... 22
Technological Strategies: .............................................................................................................................. 23
Corporate Governance .................................................................................................................................. 23
Strategic Control System .............................................................................................................................. 24
Company Culture ......................................................................................................................................... 24
Global Strategy............................................................................................................................................. 24
Ethical Value Proposition ............................................................................................................................. 25
References .................................................................................................................................................... 26
 About Repwoop IT

Repwoop IT is an IT firm of located in Dhaka, Bangladesh. It is operating since June 2017. The Owner of this

firm is Md.Khairul Basher Sujon. At the start of his BBA, Mr. Sujon got an offer from Mozilla for being a

Brand Ambassador. He got the offer because he was able to prove his expertise to the Mozilla team. Then

Mozilla made him one of its Bangladeshi ambassadors. After acquiring that position, he worked for the

company and promoted Open Web. After some years of experience, he thought that he needs to open an IT

firm which has good expertise in affiliate marketing. Then he reached and got some suggestions from his seniors

from Mozilla and started the IT business. Thus Repwoop IT was born. Mr. Sujon first ran the business in online.

Then, he acquired an office in Kuril Chourasta and now he runs his business there with his ‘perfect team’. This

firm provides technology consulting, software prototyping, custom software development, making website for

clients, maintain customer’s webpage and website, Enterprise application integration and testing, maintenance

and support to clients.

Repwoop IT is planning to expand business outside Dhaka and open some branches throughout the Bangladesh.

They have already some investors who helped them by investing some money. They are seeking Govt. Fund

from Startup Bangladesh.

When Repwoop started their business, they have no clients because they are new in this industry. But the owner

of the firm had good amount of experiences, he promoted his business by digital marketing. After this

campaign, the firm earned many responses from clients.

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 Internal Analysis

Resources

Trade License: REPWOOP’s. Trade License fall under intangible resources. They license content, trademarks,

technology, and other intellectual property from partners.

Acquired Users: The Company has declared that approximately more than 500 customers throughout the world

who take services from this company. And they have some websites where more than 50 lac people visits

monthly.

Acquired Technology: They use latest technology to provide and ensure their customers’ wants and demands.

Database: Repwoop has successfully created a large information database accumulated from offering services

to their customers and continuously upgrading their websites and developing new things from time to time.

Capital: As of 2019, they have more than 30 lacs of capital in total.

Capabilities

 Repwoop has more than 100 workers around the world. It empowers decent variety in its working staff

wherein singular abilities, imagination, imaginativeness, training, cooperation, joint effort with others,

hands-on approach towards issues, authority, etc is well liked. These workers are well prepared and

competent enough to bring anticipated outcomes for the organization.

 Repwoop's R&D division is loaded up with imaginative and proficient representatives who consistently

work next to each other with the showcasing division to draw out the best things their purchasers needs.

 Repwoop IT in recent years has raised substantially more cash than they are spending.

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 External Analysis

Industry Identification

Repwoop is a growing IT firm in Bangladesh. This company belongs to IT industry. The company offers many

services like logo design, web development, digital marketing, etc. They internally do Amazon Affiliate

Marketing. They have a news blog where many international news posted there. All of these are functions of

IT personnel. Their main competitors are TigerIT Bangladesh LTD., Datasoft Systems BD ltd, Magnito Digital

Limited, Newscred.

Competitive Forces Analysis

For competitive forces analysis, we have used Porter’s Five Forces model to draw a clear picture of the degree

of competitiveness in the industry. They are:

Risk of Entry by Potential Competitors: Threat of entry in the industry is high. With ever-evolving affiliate

marketing and IT firm, it’s comparatively easier to create new and unique IT firm. Thus, there is little barrier

to entry.

Threat of Substitutes: IT industry is highly competitive. Due to lack of protecting from the law, not a single

feature can be distinctive to a company for long. Different contenders are continually replicating the best

highlights from their rivals and attempting to turn into the best substitute. Along these lines, the danger of

substitutes is considerably high in this industry.

Industry Rivalry: IT firm’s work activities are all about creating a platform that brings all the people of the

world under the same roof and giving opportunity to the businesses to do their promotions online and making

websites, logo etc. Organizations will in general search for a less expensive medium with nearly higher reach

to advance their items and administrations. At whatever point one of contenders attempt to get a bit of leeway

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over others, others will in general take that equivalent way in a flash and gives no space for that organization

to use that. Along these lines, industry competition is high.

The bargaining Power of Suppliers: Providers of servers, storage, power, software, data center and office

equipment, technology etc. represent suppliers for social media industry. Supply is an issue in terms of

knowledge and experience which faces bottleneck. As this industry is already seen as highly competitive and

risky, losing market share due to the inability of the provider will be exorbitant for the organizations. Since

there are very few trustworthy innovative firms sufficiently proficient to give such assistance, there might be a

moderate measure of haggling power from the providers.

The bargaining Power of Customers: As there is increasing threat of substitutes available that provides almost

similar kind of services to the customers and switching cost for the consumers is low, bargaining power of the

customers tends to be high.

Industry Life Cycle Analysis

Based on our analysis, IT industry is currently at the growth stage for the following reasons:

 Demand for websites, logo, digital marketing, affiliate sites is increasing at an increasing rate.

 Rivalry between existing companies are getting intense. Companies like TigerIT Bangladesh LTD.,

Datasoft Systems BD ltd, Magnito Digital Limited, Newscred. Etc. are fighting hard to take away

market from its competitors.

 Price is becoming cheaper

 Any one learning the basics can enter the industry

 New entrants quickly get clients as the demand is rising

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 PESTLE Analysis

Political: The political stability of the majority of markets Bangladesh creates opportunities for Repwoop to

increase its investments and corresponding performance. For example, the company can improve its sales and

marketing investments in Bangladesh to achieve a corresponding increase in revenues. On the other hand, the

increasing governmental support for automation presents opportunities for Repwoop to increase its computer

technology sales via private clients. This external factor is significant, considering large-scale service purchases

involving governmental organizations. Moreover, increasing international trade agreements develop a remote

or macro-environment that supports an increase in Repwoop’s global sales. Through this external factor, the

company benefits from easier business deals in overseas markets. However, increasing international trade

agreements are also a threat against Repwoop.

Economic: Repwoop benefits from the considerable economic stability of the majority of developed countries.

For example, the company can expect stable performance in these markets. Repwoop also has potential boosts

in sales revenues in high-growth developing countries. This opportunity translates to steady growth in

Repwoops’ global sales. Moreover, the economic external factor of the overall global rise of middle class

disposable income creates opportunities for the company for higher revenues. This condition is so because

middle-class customers are among the most significant sources of revenues for Repwoop.

Social: The stable attitudes about leisure present opportunities for Repwoop to develop services that can satisfy

customers’ leisure preferences. For example, the company can increase its investment in innovating It services

for this purpose. In addition, increasing cultural diversity is a potential threat against Repwoop in terms of

service-customer mismatch in the remote or macro-environment. For instance, customer satisfaction could

decrease as the company’s products satisfy only the biggest cultural groups. Nonetheless, Repwoop has an

opportunity to improve its goods and services to address this issue. On the other hand, the stable demand for

high quality customer service creates opportunities for the company to improve its customer support activities.
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Technology: Repwoop IT can improve its performance through rapid innovation of its mobile devices. This

opportunity is based on the rapid adoption of and rising demand for mobile technology. However, this

technological external factor is also a threat that facilitates competition against Repwoop. More technology

based firms could exploit such opportunity to enter the market. On the other hand, the increasing volume of

online transactions provides opportunities for Repwoop to develop more services that support secure online

transaction processing. However, such increasing volume of online transactions threatens the company in terms

of a corresponding increase of cybercrime attacks, which is one of the threats identified in Repwoop’s SWOT

Analysis. Moreover, the company has an opportunity to grow through products that enable businesses to

automate more of their processes.

Environmental: Based on the increasing preference for green products, Repwoop IT has the opportunity to

enhance its sustainability standing. For example, the company can develop more environmentally friendly

services, and increase the use of green type of service in its business operations. In relation, Repwoop’s efforts

to improve its sustainability directly addresses the opportunity based on the increasing focus of societies on

business sustainability.

Legal: The legal external factor is also a threat that could impose additional challenges for the company. On

the other hand, the improving patent laws facilitate Repwoop’s global growth by gradually reducing issues,

such as computer software piracy. The company also has an opportunity to enhance its products to help client

organizations reduce their consumption of energy through more energy-efficient computing technologies.

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 SWOT Analysis

Strengths:

 Strong connection with Mozilla and Google.

 As Repwoop IT has enough free cash flow that means they have enough money in hand to expand their

projects and products.

 Throughout the years Repwoop has put resources into building a solid brand portfolio. The SWOT

examination of Repwoop just underlines this reality. This brand portfolio can be to a great degree helpful

if the association needs to venture into new item classes.

 Repwoop is putting enormous assets in preparing and improvement of its representatives bringing about

a workforce that isn't just very gifted yet in addition inspired to accomplish more.

 It has constructed mastery at entering new markets and making achievement of them. The development

has helped the association to fabricate new income stream and expand the monetary cycle hazard in the

business sectors it works in

Weaknesses

 Financial planning is not done properly and efficiently. The current asset ratio and liquid asset ratios

indicate that the organization can utilize the money more proficiently than what it is doing currently.

 Given the size of extension and diverse geologies the organization is wanting to venture into, necessities

to put more cash in innovation to incorporate the procedures no matter how you look at it. At the present

time the interest in advances isn't at standard with the vision of the organization.

 Comparing to its competitors, the company has higher attrition rate and lack of development and

training program compare to competitors.

 This weakness in the product demand forecasting leads the company to miss the opportunities of a

product. That’s why their day’s inventory is higher compare to their competitor.

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 Opportunities:

 The product they are developing in the market has very successful record.

 The new technological innovations give a chance to expand the current business as well as provide

efficiency in tasks

 Growth of the mobile advertising market has increased substantially over the past few years.

 Late boost in IT help seekers belonging older demography

 Advertisers looking for more personal mediums to reach their target market and Repwoop’s way of

reaching consumers fits the code.

 Consumer’s expenditure online has increased significantly.

Threats:

 Moderate threat of new entrant

 They generate almost all of their revenue from advertising. The inability to draw in new advertisers, the

loss of advertisers, or a cutback in how much they can expend, could seriously harm our business.

 Their business is highly competitive which is expected to intensify as the time advances. If they can’t

maintain or improve their market share, their business will suffer.

 Repwoop IT depends on mobile operating systems, hardware, networks, regulations, and standards that

is out of their control. Changes in their products or to those operating systems, hardware, networks,

regulations, or standards may substantially harm their user growth, retention, and engagement.

 Products are imitable. Existing and potential competitors tend to copy each other’s product to take away

the competitive advantage from others.

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 Business Definition of Repwoop IT

Customer Group
•Any person seeking IT based
expertise

Customer Needs
Distinctive
•People who wants to
Competencies buy products from
•One of the market Amazon and also
leaders in Affiliate wants to host or
Marketing maintain websites,
logo, etc.

Distinctive Competency & Competitive Advantage

Distinctive competence is a set of features that separates a company from others. It can cover a variety of fields

including marketing technology manufacturing, etc. Distinctive competency gives the company an advantage

over others, so it's worth implementing those features that rivals consider hard to develop. If management is

effective in their efforts to increase their organization's performance, reliability, creativity and consumer

sensitivity, they may reduce the company's cost structure or adequately distinguish the product offering, which

may therefore form the foundation for a competitive advantage.

TigerIT Bangladesh Ltd., Datasoft Systems BD Ltd., Magnito Digital Ltd., Newscred are some of the rivals of

Repwoop IT. The most valuable competitive advantage of Repwoop IT is that they focus on “Affiliate

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Marketing” more which separates them from their competitors. Repwoop has come out from the traditional

marketing through affiliate marketing and it is their distinctive competency. Affiliate marketing is a

promotional strategy based on the performance that benefits affiliate partners to generate the intended response.

Such activities may include site visits, a lead form implementation and processed sales. This marketing strategy

can be an extremely effective, low-risk way to expand Repwoop IT’s traditional bandwidth. This strategy is

helping Repwoop IT to increase their customers through lifting their reputation in the market. And because of

that they are far ahead their rivals.

Current Business Model

KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER

PROPOSITION RELATIONSHIPS SEGMENTS

 Mozilla  Selling the  Commitment  Customer Geographic:

 Google Amazon to quality Service Worldwide
 Individual products by  Inventing &  Review and
Investors affiliate reinventing Feedback Demographic:
marketing new things System Gender- Male and
 Making logo, based on  Social Media Female.
animation technology Age-15 to 50.
video, and other Income Level:
website factors Middle and
 Branding any  Works for Upper-Middle
type of customer’s Class.
company or wants & Education: at least
organization demands minimum
or institutions educated people.

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 by S.E.O.,
S.M.M
 Digital
marketing.

KEY RESOURCE CHANNELS

 IT specialist  Communication
 Website media
 Computer  Website
 Blog sites  SNS (Social
 User based Networking
partners Sites)

COST STRUCTURE REVENUE STREAMS

 Maintenance of IT infrastructure  Search Engine Optimization (S.E.E)

 Research & Development  Social Media Marketing (S.M.M)
 Salaries of Employees  Digital marketing
 Office Rent

1. Key Activities

Repwoop IT’s plans of action involve in selling the Amazon products by affiliate marketing. They also create

logo, animation video and website. Their activities include branding any type of company or organization or

institutions by Search Engine Optimization (S.E.O) and Social Media Marketing (S.M.M). They are involved

in digital marketing as well.

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 2. Key Partners

Repwoop IT’s main two key partners are Mozilla and Google. Besides, individual investors are also included

in their key partners.

3. Value Proposition

Repwoop IT offers various essential incentives.

They ensure quality service to the customers. They are into inventing and reinventing new things based on

technology and other factors related to IT. They are continuously working to meet customers’ wants and

demands.

4. Key Resources

Repwoop IT’s primary assets include IT specialists, website, computer, blog sites and other user based partners.

5. Customer Segments

Repwoop IT focuses on the customers from anywhere in the world. Their target market is Middle and Upper-

Middle class people. Both male and female are benefitted from their service.

6. Channels

Repwoop IT’s main channel for customers of the service is their website. The organization also offers through

its web-based social networking pages and web based showcasing (show promoting and web index advertising).

7. Customer Relationships

Repwoop IT’s client relationship is basically of a self-benefit, automated nature. Customers use the

administration through the primary stage while having constrained collaboration with representatives. The

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organization’s site gives answers to regularly or frequently made inquiries. All things considered, there is an

individual help segment as e-mail bolster, to enable more accurate feedback on services.

8. Cost Structure

Their cost-driven structure, intends to limit costs through deliberate automation and low-value incentives. The

greatest cost drivers are maintenance of IT infrastructure, research and development, salaries of employees and

office rent.

9. Revenue

Repwoop IT has three income streams: Search Engine Optimization (SEO), Social Media Marketing (S.M.M.)

and Digital Marketing.

Financial Performance

Despite being a startup company, Repwoop IT’s overall financial performance is quite impressive and they are

in a constant growth of gains. They report their financial conditions on a half yearly basis. Although they faced

a considerable loss in last half of 2017 and first half of 2018, they started making profit from the last half of

2018. Till now they are going strong and keeping up their constant growth of profit.

The financial statements of Repwoop IT are as follows:

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 Income Statement
(June-Dec) (Jan-May) (June-Dec) (Jan-May) (June-Dec)
2017 2018 2018 2019 2019
General 150000 250000 450000 800000 1100000
Revenue
Service Sales 30000 120000 150000 650000 750000
Revenue
TOTAL 180000 370000 600000 1450000 1850000
REVENUE
Salaries 270000 270000 270000 900000 750000
Employee Extra 30000 30000 30000 90000 75000
Benefit
Rent 150000 150000 150000 150000 125000
Electricity 10000 12000 15000 30000 25000
Advertising 30000 15000 20000 50000 70000
Others 15000 10000 18000 25000 30000
TOTAL 505000 487000 503000 1245000 1075000
EXPENSES
NET -325000 -117000 97000 205000 775000
INCOME/LOSS

Balance Sheet
(June-Dec) (Jan-May) (June-Dec) (Jan-May) (June-Dec)
2017 2018 2018 2019 2019
Assets
Current
Assets:
Cash 700000 500000 200000 500000 600000
Investments 0 0 1000000 0 0
from
Investors
Accounts 0 50000 100000 250000 350000
Receivables
TOTAL 700000 550000 1300000 750000 950000
CURRENT
ASSETS
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Property,
Plant &
Equipment
Computer 100000 0 500000 0 0
Table & Chair 50000 0 30000 0 0
Others 0 0 50000 0 0
TOTAL 150000 0 580000 0 0
PROPERTY,
PLANT &
EQUIPMENT
TOTAL 850000 550000 1880000 750000 950000
ASSETS
Liabilities
Current
Liabilities:
Accounts 0 0 1000000 700000 500000
Payable
TOTAL 0 0 1000000 700000 500000
CURRENT
LIABILITIES
TOTAL 0 0 1000000 700000 500000
LIABILITIES
Equity
Owner’s 850000 550000 880000 50000 450000
Equity
TOTAL 850000 550000 1880000 750000 950000
LIABILITIES
& OWNER’S
EQUITY

Performance Analysis
(June-Dec) (Jan-May) (June-Dec) (Jan-May) (June-Dec)
2017 2018 2018 2019 2019
Current 1.3 1.07 1.9
Ratio
Net Profit -10.83 -0.98 0.65 0.32 1.03
Margin
Debt Ratio 0 0 0.53 0.93 0.53
Asset 0.21 0.67 0.32 1.93 1.95
Turnover

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 Equity 1 1 2.14 15 2.11
Multiplier
ROE -2.29% -0.66% 0.44% 9.15% 4.25%
ROA -0.38% -0.21% 0.05% 0.27% 0.82%

From the above table, we can notice that Repwoop IT’s current ratio is more than one in all last three reporting

date. It indicates that they have enough liquid assets to cover their short term liabilities.

On the other hand, they had negative net profit margin in last half of 2017 and first half of 2018 respectively.

However, their net profit margin increased eventually after that. It means they are generating enough profit

from their service and their operating costs are being controlled.

In the last half of 2017 and first half of 2018, Repwoop IT did not have any liabilities. Hence their Debt Ratio

was 0. Their debt ratio is less than one in all last three reporting date. It shows that they own more assets than

liabilities and can meet their obligations by selling their assets if necessary.

Their Asset Turnover ratio shows that they are using their assets efficiently. Although they could not use their

assets efficiently according to first three reporting date.

Their high financial leverage ratio indicates that they are in a risky position.

Their ROE shows that they could not use the shareholders’ equity properly according to first three reporting

date. However, they used the shareholders’ equity most effectively in the first half of 2019.

Besides, their ROA indicates that they are gradually using their assets efficiently.

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DuPont Analysis

ROE = Net Profit Margin*Asset Turnover Ratio*Equity Multiplier

= -10.83*0.21*1

= -2.29%

Recommendations

After analyzing the sections of previous parts, the following recommendations can be given to Repwoop IT:

 Repwoop IT already is the representative of google and Mozilla in Bangladesh which is a very tough

title to acquire in the first place. Repwoop can bank on this opportunity and thus must promote them as

the ambassador of Mozilla and representative of Google.

 Repwoop has expertise in affiliate marketing to an extent that they are one of the few reliable and big

affiliate marketers in Bangladesh. As a result Repwoop can concentrate more on affiliate marketing

since it’s a bit difficult to imitate affiliate marketing compared to web development and hosting. If

Repwoop can build a strong hold in Bangladesh in affiliate marketing through promotion and volume

of services, they can create a sort of dominant position in market. As Bangladeshi ecommerce sector is

growing day by day, there is no doubt in that the demand for affiliate marketing will grow. So the

potential loses in other areas of business can be leveraged by affiliate marketing only.

 Another recommendation could be about rewarding employees. Repwoop can introduce reward based

culture within the company where every employee will get rewarded by bringing in more customers.

Thus the profitability will increase as there is little or no additional fixed asset required for each added

customer.

 Then Repwoop must improve the recording procedure of financial data. Previous financial reports

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 omitted day to day small sized expenditures. It should be changed in order to have a more accurate look

at the company financials.

 They can open small offices in the center of other big cities such as Chittagong, Barisal, Khulna, Comilla

etc. in order to reach the more remote customer base of those areas. Otherwise someone else will

capitalize that opportunity which will make the competition and sustainability tough.

 Repwoop must focus on mobile application development since it is one of the most emerging sections

of IT industry.

 Repwoop IT must invest heavily in employee training thus making them more efficient. As a result

there will be less employee needed to perform a task which will decrease operating expenses.

Corporate Level Strategy

Repwoop IT focuses on consultancy on software prototyping and development, making and maintaining of

websites and webpages, enterprise application integration and testing as well as maintenance of those

applications. So it can be said that the firm is versatile in terms of rendered services. Aside from Bangladeshi

market Repwoop IT has been providing their services to countries that of North America and Europe. So we

divided the corporate strategies in two main sections. One which we believe appropriate for the foreign market.

And the other one is for Bangladeshi market. All of which is targeted toward the year 2020-2025.

Foreign Market

As we know that Bangladesh is one of the cheapest sources of labor force. And there’s no exception in IT

sector. The single biggest attraction for foreign clients is the extremely cheap labor. According to one of the

emerging outsourcing corporations in the world, Accelerance, average hourly rate for software development

and maintenance in Bangladesh is 26 to 37 dollars which is even lower than the likes of India and Vietnam

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which are renowned for cheap IT labor force. As a result Bangladesh is facing a huge growth in its outsourcing

industry. Many companies most notably IBM, Sony and Fujitsu outsource a big number of software developers

and IT professionals from Bangladesh. Repwoop too is the service provider of Mozilla and Google. So

leveraging this opportunity Repwoop is considering to form partnerships with other foreign corporations

seeking cheap sources such as EBay, Amazon, Alibaba, Facebook. Basically Repwoop will provide IT services

at a favorable cost. This strategy doesn’t require a big amount of capital. As a result it’ll be generating a turnover

from day one.

Bangladeshi Market

In Bangladesh there is approximately a total of 80000 IT professionals. Most of which are offering services at

a cheap price. So it’s difficult to differentiate based on price. As a result we believe that the firm’s best interest

will be held by adopting a combination of expansion and diversification strategy.

Why expansion: Since Repwoop is an IT firm, there is little scope for vertical integration. Beside the IT

companies in Bangladesh are in a constant competitive pressure. One interesting trend about IT sector is that

clients usually maintain a long term commitment with their initial service provider. In order to have a good

market share, Repwoop should attract and thus build a strong customer base. But one caveat is the number of

IT professionals working under Repwoop. As the company doesn’t have sufficient number of personnel to

reach mass, it can form a strategic outsourcing with local IT individuals. Basically Repwoop will take orders

and hand the orders to those individuals. The overall profit will be split.

Why diversification: Repwoop is considering to open an e-commerce site in January 2020. The site will be

selling commodities and will be centered on Bangladesh. Bangladesh has a population of approximately 169

million. So it is very much possible to bank upon this huge population and generate revenue based on volume

of sales. The recent success of e-commerce portals like Daraz, Chaldal, Evaly indicates the potential the online

chains have over brick and mortar stores. Everyday more people are leaning towards online stores. Since
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Repwoop has expertise in creating and hosting web, it won’t be a difficult task for them to host their own e-

commerce site.

Why not stability and retrenchment: If we look at the financial statements of Repwoop IT, it can be seen

that Repwoop sustained a growth in its profit. So there is no need to retrench current model. On the other hand,

there is huge potential to get more foreign and local customers by adopting aforementioned strategies. In

addition, there is little scope for making lose since the tasks that Repwoop performs don’t require huge

investments on fixed assets. So stability strategy will only suffocate the ambitions of the firm as well as future

revenues.

Business Level Strategy

For business level strategy, Repwoop must consider broad low cost strategy. This strategy is about serving to

a wider customer base at a cheaper cost exactly what Repwoop currently does and what it wishes to do in future.

If we look at the recommendations made in the corporate level, it can be seen that Repwoop wants to expand

its operations through strategic outsourcing and credible commitment. Since it is very easy to gain expertise on

web development and hosting, there is very little opportunity for differentiation. Rather it is more profitable to

base business model on volume of sales (or service provided in this case). As Repwoop serves more and more

customer, it will eventually gain economies of scale.

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 Functional Strategies

Research and Development:

As this is new company they have to constantly conduct intensive R&D in order to understand the upcoming

global and national demands so that they can meet the needs of the customers and survive in the market. Based

on the research they can develop the existing products or come up with new innovative products. This will help

them capture and serve both the local and foreign market.

Marketing Department

The marketing team should focus on attracting more market shares. They should focus on building the brand

image and building loyal customer base. They can come up with various marketing tools for segmenting and

positioning in the customers mind. Attract customers with handsome promotional offers, advertisements in

order to stand out in this competitive market.

Human Resource

In order to obtain the corporate strategies, Repwoop IT will require efficient and innovative employees to work

for them. The HR team had to hire skillful and innovative team of designers and engineers to work on behalf

of them to meet the customers’ demands.

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 Technological Strategies:

Technological strategy must include usage of software and applications that yields the best and smoothest

outcome. Even if the licenses are a bit expensive than others, Repwoop must follow this idea as most of the

customers wants bug less experience. Then Repwoop can take measure against cyber securities. Till now

Repwoop has not faced any cyber security issue but as we all know there are many loopholes to break security,

thus they need to keep on updating security features so that clients confidential information don’t get exploited.

Then Repwoop must use up to date equipment such as capable computers that can do the rendering and

developing task within a considerable amount of time. Finally Repwoop can develop a web hub for taking

customers’ orders through online so that they can reach a wider audience. Both the proposal and payment can

be integrated into that hub.

Corporate Governance

Being a small company Repwoop’s corporate governance is rather simple. The governance is based on simple

rules and regulations which are rendered to employees before joining the company. There is one owner and

nothing such as board of directors. Though the company earned profits in last few years, it wants to expand in

both national and international market. As a result it’s vital to open branches and appoint branch manager in

those. Branch managers will be under the direction of the owner itself. So Repwoop needs one simple tweak in

corporate governance that is too include branch managers if they want to expand. And if Repwoop opt for the

ecommerce business, then they must make that a different division and employ a new set of management team

under that with different corporate governance.

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 Strategic Control System

In order for a company to effectively understand whether their existing strategies and are operating as

envisioned, strategic control systems are tools which assist managers to inspect and evaluate them. In the case

of Repwoop it is recommended to opt for a combination of personal control and output control strategies. Most

of the functions of Repwoop is done under the direct supervision of the owner himself. So direct contact with

employee aka personal control is very much possible since it will help him control each of the employee by

himself thus giving him better room for judging his workforce. On the other hand if Repwoop do expand to

other districts of Bangladesh, The owner need to send a different team to that location. In that case, that team

need to be given an objective or goal to fulfil in those particular area. For this output control is required.

Company Culture

Repwoop comprises of highly efficient IT professionals who has advanced expertise in few sectors. So it can

be said that the work force is more than capable. And according to the owner, he never faced any burden.

Whenever there is an order, the employees are there to serve. So it can be said that the current organizational

culture is adequate for implementing aforementioned strategies.

Global Strategy

The recommended global strategy for Repwoop is global standardization. Their service is basically same across

the globe. Even though different client seeks help for different sites or different type of web development the

basic procedure is same regardless of the design. So it has to follow global standardization strategy. In addition

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one of the biggest selling point of Repwoop across world is its cheap price and global standardization is the

cheapest way to enter foreign market.

Ethical Value Proposition

Since Repwoop is an IT based company it deals with sensitive information of the client. So they must ensure

the confidentiality of data breach. If it’s detected immediate action should be taken. Then they must have a

penalty policy for those employees that are misusing their expertise in information technology.

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 References

Deutsche Welle. (n.d.). Bangladesh emerging as a new IT hub in South Asia: DW: 14.05.2019. Retrieved from
https://www.dw.com/en/bangladesh-emerging-as-a-new-it-hub-in-south-asia/a-48728439.

Repwoop. (n.d.). Retrieved from https://www.facebook.com/Repwoop/.

Gilbert, A. (n.d.). Offshore Software Development in Bangladesh. Retrieved from

https://www.accelerance.com/blog/offshore-software-development-in-bangladesh.

Information technology in Bangladesh. (2019, April 12). Retrieved from

https://en.wikipedia.org/wiki/Information_technology_in_Bangladesh.

Affiliate Marketing in 2019: What It Is How Beginners Can Start. (2019, October 7). Retrieved from
https://www.bigcommerce.com/blog/affiliate-marketing/.

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 Appendix

Mission
We are Innovative: We search for creative thoughts and innovation. We learn and show signs of improvement

every single day.

We are accomplice: We help one another. We regard one another. We cooperate and share our thoughts, vision

and mission to give the best to the world – class services and administrations and coordination solution for the

clients in the field of Software Products and administration, SMS arrangements and Customized Application

arrangements, IT related all problem and so on.

Vision
To build up a worldwide IT company with accentuation on quality, demonstrable skill, dependability and

administration and make delegates for the future world in IT sector.

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