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Business Analysis
Fiza Aslam
L1F17BSAF0074
Afia Javed
L1F17BSAF0075
Huma Javaid
L1F17BSAF0055
 Section: B
Assignment# 2
Submission:
5 April’20
th

Evaluate national competitive position of Pakistan

for forward sports (Sialkot based company that is
main manufacturer of soccer balls)
Porter’s Diamond Model:
Porter ‘s Diamond model helps in understanding the function of bunches in competition and enables a
authorities to estimate how an industry can go competitor on a planetary degree.

Factor Conditions:
It includes the availability of raw materials and suitable infrastructure.

A company’s factor condition commonly understood as the amount of land ,capital ,technology, labor
and entrepreneurship that a country possesses and can exploit for manufacturing.

Sialkot has an important position in Pakistan in context of Sports Goods manufacturing, as this industry
is concentrated by far in the city of Sialkot, however there are some production units in other towns of
the country. Further the government is alive to the necessity of improvement in quality and export of
quality Sports Goods to foreign countries therefore it has established the Pakistan Sports Good
Cooperative Exports Corporation Limited (PSGCECL). Which performs number of specific functions in
respect to the production of quality Sports Goods and their exports promotions. The exporting trend
kept on multiplying until Sialkot became the premier supplier of hand stitched Soccer Balls to FIFA World
Cups, thereby the major international sporting brands also selected Sialkot as the preferable outsourcing
destination. Additionally, Sialkot is internationally known as a producer of good quality products like
soccer balls, Gloves, Sportswear etc.

Labor:
It is known as the hub of sports goods industry and full of high labor intensive industry. Complemented
by the availability of skilled labor working in allied sectors in wood, metal, leather etc.

Raw material:
Lastly, the abundant supply of raw material due to its proximity to the foothills of Himalaya, known as
the best place to grow trees in producing best and 800 tanneries in the country actively engaged in
producing best quality leather of cow, buffalo, sheep and goat skin needed for making cricket bats,
hockey sticks and soccer balls. The infrastructure of Sialkot really suits sports goods industry as well in
terms of knowledge and communication which should be developed can’t be accessed naturally.

Technology:
Pakistan needs to adopt new technologies to compete with other countries

Infrastructure:
Infrastructure needs to be enhanced harmonizing to modern demands. Inadequate infrastructure has
remained a very troublesome issue for this industry.

Demand Conditions:
It includes the goods and services must be demanded at home and here the international success starts.

Demand conditions in the home market can help companies create a competitive advantage, when
sophisticated home market buyers pressure firms to innovate faster and to create more advanced
products then those of competitors.

It includes the market segmentation of home market. You can only compete with other country in a
same field or segment. Sophisticate buyer knows what he exactly wants. In a competitive environment
when there is sophisticated buyer it is very hard to retain and satisfy such customer.

It also includes position within the product lifecycle in home market. If your company is in a country in
which your product is on maturity stage, then you can go internationally in some other country market
and then you have a competitive advantage because of the market share and knowledge of the buyer
and knowledge of making product in your country.

Demand patterns:
Most of the industries’ consumers of sports goods are between 15-35 to years of age. Older consumers
tend to purchase local brands, younger ones are highly devoted name brand recognition and trend
following.

Items purchased:
Cricket bats, hockey sticks, basketball shoes and soccer balls etc.

Consumers:
The purchases are not in large volumes furthermore the industry sets and creates the fads and
determines what is “hot”

Buyer countries include:

 Indonesia
 Hong Kong
 Thailand
 Vietnam
 USA
 European countries
 Korea

Related and Supporting Industries:

These allow easy access to components and knowledge sharing.

For many firms the presence of related and supporting industries is of critical importance to the growth
of the industry. A critical concept here is that national competitive strengths tend to the associative with
cluster of industries.

Suppliers:
Since there are few companies so the bargaining power of suppliers is medium to high. The product is
unique and the switching cots are high. Presently, Pakistan is competing Taiwan and Korea, the industry
is tilting towards mechanization and the use of modern equipment.

Supporting industries include:

 Plastic industry
 Leather industry
 Paint industry
 Textile industry
 Rubber industry

Diversification of sports goods:

The following new sports items can be manufactured through the existing sports manufacturing facilities
at Sialkot.

 Cycle sports products: Industries involve composite material units, shoe factories,
engineering, clothing and rubber units, swimming sports product industries involve plastic
rubbers and clothing units.
 Water sports industries: Involves rubber, clothing and shoes units
 Snow sports industries: involves composite material, clothing and shoes industries
Firm strategy, Structure and Rivalry:
if the home market is very competitive a company is more likely to become world class.

 The way in which companies are created, set goals and managed is important to success but the
presence of intense rivalry in the home base is also important it creates pressure to innovate to
upgrade competitiveness.
 Foreign companies are becoming more reluctant to do business with Pakistani manufacturers,
because of the negative effects on production schedules related to political and social unrest.
 The industries tilting towards use of mechanization and use of modern equipment’s which has
resulted in tougher competition for manufacturers and exporters of sports goods of Sialkot that
is continues to compete in the global market with out a fully mechanized industry, relying
mostly on old and traditional production techniques.
 Local production is not at a good pace, so as a proportion of the total sports apparel industry,
local production plays an increasingly minor role.

There is a strong competition with China, India and Japan. International trade names like NIKE, Adidas
etc. are acquiring their merchandises made from these states because of inexpensive labor and natural
stuffs at that place. China specially is a large menace to the industry.