Md.

Shamim Shorif
ID.1310127030
Sub: MGT 489

Company Overview:
Eastern Housing Limited (hereinafter referred to as EHL), a concern of Islam Group of
Industries, is the oldest and largest company in the real estate industry of Bangladesh. It was
made in 1964 as a private restricted organization to decrease the lodging issues in Dhaka. The
trademark of EHL is Apan Thhikana Gore Dey, which can be meant Makes Your Own Home.
The organization started its tasks with basic exchange of land and a short time later has become
occupied with buying land, building up the equivalent for urban lodging and offering to the
individuals of various salary gatherings. It was one of the main organizations to give low cost
lodging to the occupants of Bangladesh by executing a venture of building 700 houses on 910
sections of land (3.68 sq. km) of land in a prime area in Dhaka. The major core values of the
organization are uprightness, responsibility and transparency.

SWOT Analysis:
Strength

1. Company reputation and goodwill.

2. A good number of multi-tasking employees.

3. Strong and competitive customer channel network of the top management

4. Positive ‘word of mouth’ marketing

5. EHL measure its flat size excluding then community space , such as garage , mosque etc.

Weakness

1. Nepotism of the top management

2. Inside trading by the top management

3. Strong competition among the existing players of the industry

4. Poor flat installment collection strategy

Opportunity

1. Regulatory environment favoring private sector development

2. Increasing purchasing power of people

3. Good purchasing power of target customer group

4. Open market economy , recent housing policy etc. may favor sustainable growth of
housing Industry

5. Increasing trend in international business

Threats

1. Lack of land

2. Increased price of industrial materials

3. Frequent changes of inhabitation rule of Rajuk

4. National and Global political unrest

EHL management shift upper and upper middle class in 2009. According to the company, both
upper and upper-middleclass customers are more lucrative than middle-class customers due to
the higher profit margin of high-end products and second-time purchasing opportunity of the
customers.

Their company strategy is good but according to UNDP research if we divided our population by
their income group we can see Only 10% people are in top income group 50% are in middle
class and rest 40% in the bottom. So EHL is leaving the 50% market to catch 10% . EHL
strategy is Focus Differentiation Strategy. As a result they are losing a big amount of market
share.
The following table will give us an idea about Dhaka city income group:
Source: UNDP Study

Although EHL has no operation in Chittagong and Sylhet where according to world bank Sylhet
and Chittagong has more middle class people and less poor people than Dhaka. The following
graphs will give us an idea about these areas:
Source:  World Bank’s recent poverty assessment

So after analyzing this scenario I will suggest the Broad Differentiation Strategy.

Broad Differentiation Strategy:

Attempting to separate various methods of conveying organization items from contenders that
will engage a more extensive scope of clients. As now we are planning to tap in a mass market so
we have to some specific strategies. My suggested strategies are:

1. Include the Middle class customers: In Bangladesh 50% people belong to

the middle class. In past days EHL had most of the market share in real estate business.
So we need to go back in the mid-range product line. EHL have the brand image and
setup by with they can easily tap in middle class customer area. Our GDP is increasing
and the purchase power of the middle class people is also increasing. So EHL need to
go that segment.

2. Include the Chittagong and Sylhet: EHL needs to include Chittagong and
Sylhet as their new business place as they are also growing and government are
planning to decentralize the Dhaka city. As it is very much populated country.

3. Customized product: As EHL is making another’s home they need to consider

the individual choice and test it will be applicable for both upper and mid-range
customers. As it’s a lifelong investment everyone will desire a customized property
according to their choice.

4. Allow intermediaries/ third parties for sealing: When EHL will allow
the third parties or any intermediary to sale their property that time they will gain more
 customers because in Bangladeshi context intermediaries are holding very strong
position. EHL will allow Intermediaries for 2-3 years in that time EHL will get a huge
mid-range customer and after 3 years the existing customers will give EHL more
customers with their word of mouth.

5. Strong online/digital marketing: Now a day most of the people follow the
trend so they use smart phones even the television are also smart. So EHL need to do
social media marketing as well as digital marketing to attract more customers.
Facebook marketing, Email marketing is now essential for the new customers. They
also go for the TV advertisement as we are planning to tap in Chittagong and Sylhet

6. Increase after sales service: EHL currently doing many customer oriented
work but they can include more like

o If anyone wants to sale their existing EHL flat they can contact with EHL and
EHL can buy back in a discounted price.
o EHL can arrange a yearly customer gathering to make customer more loyal to
them
o EHL can send new years greetings and souvenir of EHL to the customers
o EHL can offer a lucrative discount for their existing customers on their next
buying.

7. COVID-19 discount offer: As the pandemic is affecting all the people of all
classes so EHL can offer a lucrative discount offer top gain new customers.

Functional Strategy
It’s about securing competitive advantage by lowering cost and differentiation. It focuses on
improving every activities of a value chain in a company by superior quality, innovation,
efficiency and customer responsiveness. As each and every department in interlinked when it
comes real estate companies. It is very important for every department to be efficient. If I start
with the

Production: Good quality supplies in low price can be game changer for EHL. They have to
find out the quality and quantity needs from the material Management and look for companies
who can provide those in long term. Making a long term deal with the supplier not only lower
the overall cost but will also ensure the availability of those supplies.

Customer service: If your customer is satisfied with our service they will not only come
back to you but also refer you to their friends and relatives. So in the real estate business it is
very important to retain customer. I also suggest EHL to contract every customer once a year to
ask them whether they have any problem or not. That means service after sells.

Marketing and sales: I suggest them to share commissions to the marketer and sales
people. It will be motivated them to increase sales. Proper training for employees how to handle
customer. If EHL go for international housing fair they must be connected with international
companies and in this fair if they bring big projects they will regain their crown of the real estate
which builds biggest structure.

Evaluation & Conclusion:

The management should keep eyes on every department through HR department because the
whole company is going to face a structural change because the customer base is expanding, new
marketing plan will need to execute. Overall if any of the department fails to do their job the
strategy will no work. As EHL is an established and big company if any new employee needed
that time they should take decision immediately to fill the vacancy and make an uninterrupted
working environment.