SWOT Analysis of BSRM

The internal and external analysis is an important part of strategic analysis or modeling of any
company. The SWOT analysis of BSRM will elaborate the strength & weakness of, and
opportunities & threats for BSRM steel, Bangladesh. The strength and weakness of BSRM will be
part of the internal analysis, and opportunities and threats will be part of the external analysis.
These are used to explain and analyze its capabilities, strategies, and competitive advantages.

Strength Weakness

 Leader of the Market

 High Competitive skills  High-Interest Rates Reduces Profit
 Strong Marketing Lineup  Power Crises
 Strong Products Distribution Channel
 Latest Technology & Equipment

Opportunities Threats
 Market Dominance  New competitors
 International Scope  Economic crisis
 Increased demand For the Products  Growing Competition
 Organizational Goal  Labor Unions

Strength

BSRM is the leader of the market and holds 12 % of the market share. It has been providing
quality production consistently for the past years. So has been grown to a reputed company and
also achieved great competitive skills. Now, it’s able to face strong competition. It has strong
distribution channel all over the country. It has appointed more than 300 dealers. Also, they have
sales depot in different districts of Bangladesh.
Weakness

BSRM had taken a huge amount of loan from different banks, so, most of the profit goes to the
interest payment. Bangladesh has long-term power crisis, and its increasing day by day. As the
company is a heavy industry, thus it needs a huge supply of electricity. The demand remains
unfulfilled most of the time and company cannot reach to its ideal production.

Opportunities

The market share of BSRM is 12% or more. And so, there is potentiality that they may capture
more market share in near future. They are increasing the production from 375,000 Metric Tons
to 500,000 Metric tons. Along with the increasing production, they can start exporting steel
abroad. As a market leader, their main goals are to providing a safe and quality product. If they
do that, they will be able to capture more market in future and dominate.

Threat

In recent days, some new companies have started their steel production. Among them, Abul
Khayer Steel is a reputed one and promised to keep good quality. They are planning to produce
800,000 Metric Tons of steel per year. Moreover, each of the big steel producers of Bangladesh
wishes to enhance their production capabilities. If they reach their target production capacity,
they will capture more market shares. So competition will also increase in the home country.
Also, the power crisis in the manufacturing sector’s increasing gradually, and thus declining
production.