INDEPENDENT UNIVERSITY BANGLADESH

Course Title: International Business

Course Code: INB 301
Autumn 2021
Section : 04
Submitted to: Mehadi Mansur
Submission Date: 11th December, 2021

Group Report on Walton

Team Achievers
Name I’D
Samiul Hoque Sami 2022129
Sanzida jarin sonia 2022167
Nuzhat Tabassum 1920270
Sumona Chowdhury 1911181
Tanvir Ahmed 1911195
 LETTER OF TRANSMITTAL

December 11, 2021

Mehadi Mansur
School of Business
Independent University, Bangladesh
Subject: Report on Export plan of Walton Refrigerator.
Dear Sir,
We would like to express our gratitude towards you for giving us this wonderful opportunity
to work on this report. It was truly a tremendous experience as we got to explore ideas, gather
knowledge and express our vision. The assigned task gave us the privilege to learn deeply
about the things that are crucial for exporting a business. We provided all relevant
information and we believe and hope that our plan will provide a clear idea about our
business.
While preparing the report, we all have given our best to assemble needed information. We
enjoyed working on this report and hope you will find it innovative.
Sincerely,
Team Achievers.

Acknowledgement
We had to take the support and guidance of our esteemed faculty, who deserves our greatest
gratitude, in conducting our research. The completion of this mission gives us a lot of
satisfaction. It will improve our realistic understanding of the making of plans of exporting
business. We would like to express our gratitude to the Lecturer of the Independent
University of Bangladesh, Mehadi Mansur sir, for giving us a solid guideline for the mission
during different consultation processes.Thank you.
 Executive Summary
Walton is a high-tech industry and electronics company of Bangladesh. The business started
since 1977 and in early 2008, WHIL started manufacturing of refrigerator, freezer, air
conditioner, compressor and other electronic suppliance which led it to become one of the
most successful and leading businesses of our country. Due to such tremendous growth in
the home country, Walton decided to start the mission of exporting its products worldwide.
This is report is based on the possibility of how Walton refrigerators, freezers and beverage
coolers can be exported to Indonesia, Vietnam and Sri Lanka. In this report we have deeply
analyzed the economic, political, legal and socio-cultural data of these countries. We have
also done market research and discussed the Psycho-Demographic segment of these
countries. After doing the comparative analysis, we have strategized and proposed which
country will be the best suitable for Walton to be able to export its refrigerators, freezers and
beverage coolers.

Introduction
One of the most profitable ways of expanding a business is exporting. Although it comes with
risk but also reduces dependency on local market.
Along with developing new ideas and learning new management practices, exporting also
provides us the opportunity to learn new marketing techniques and allows us to compete
globally which in return enhances our understanding of the business further. This additionally
increases the ability of the company to compete in the domestic market and makes it can
become more efficient and increase productivity. Companies by exporting can also have
preferable growth possibilities, extremely skilled and productive staff and easily to adapt
technology and best practice techniques faster.
For this assignment, we have chosen Walton company for exporting their refrigerators,
freezers and beverage coolers.
 Company Description

Walton is a high-tech industry and electronics company of Bangladesh. Primarily Walton was
founded by S. M Nurul Alam Rezvi in 1977 as a mere trading company which later on broke
into one of the leading business conglomerates of Bangladesh.
Walton High-Tech Industries Limited is an association of Walton Group. It commenced its
operation in manufacturing refrigerator in 2008 and by 2015, it produced 80% of the
refrigerators sold in Bangladesh. With a workforce of more than 20000+, in total 22
production bases, under 680+ acres of factory area and 5,000,000 sft. of working space,
Walton has established a milestone as the highest exporting Bangladeshi enterprise. In the
year 2018-19, Walton as experienced 89% growth in revenue bringing it to TK 5,177.32 crore.
Keeping the vision of aspiring to be a bold leader among the top 5 global E&E brands in mind,
Walton has penetrated into 20 countries including India, Nepal, Bhutan, Myanmar, Maldives,
UAE, Qatar, Nigeria and West Africa. Over the last few years, Walton has become a giant
professional manufacturer in the relevant industry and has gained high reputation in terms
of its unbeatable capability for producing Electrical and Electronics goods in the most
competitive way in aspect of quality, cost, design and innovation.

About Product

Refrigerators, Freezers and Beverage Coolers: Walton manufactures world-class

refrigerators, freezers and beverage coolers with 100% copper condensers and high-quality
compressors at its modernized and completely automatic plant, which is one of the largest in
South Asia. Using the latest technology that ensures longer cooling system, less energy
consumption and exact moisture for maintain food value, their refrigerators and freezers are
manufactured. Walton has recently adapted to the world-class nanotechnology and
incorporated it in producing their refrigerators, freezers and beverage coolers which helps to
keep food fresh and intact for longer period of time. They also use silver nano particles during
manufacturing their refrigerator which helps keep food free from many harmful bacteria and
undesirable odors. Along with all the considerable health factors, Walton also works hard in
developing new and modern eye-catching designs for their products. They constantly
challenge themselves for developing innovative designs and models and surpassing the limits
of creativity which than creates the ultimate ground for competition. While doing so, they
also keep their customers in mind. Hence, they made sure to make spare parts, including
doors that are changeable, available everywhere in the country. Walton currently
manufactures 600,000 units of refrigerators and freezers annually and with their new
production line, they are hoping to increase the number to 800,000 units. In the near future,
Walton plans to manufacture non-frost and luxurious refrigerators which meets the
international standards. They are doing this keeping the taste and demand of customers of
developed countries in mind. Walton brand of refrigerators, freezers and beverage coolers
has successfully hold on to the first position by having 70-75% market share in Bangladesh,
by producing 1.4 million refrigerators and freezers annually.

Words of Walton on their world-class products

Direct Cool Refrigerator

WALTON Direct Cool Refrigerators are equipped with 100% copper condensers and Nano
technology to take care of your evolving needs and at the same time, maintain the quality of
the food that you preserve. Our simple and contemporary designs will surely complement
your lifestyle.
Non-Frost Refrigerator
Stylish and efficient, WALTON Non-Frost Refrigerator adds style to any kitchen and offers a
host of interior features that save you space and energy. It helps keep the food you love,
fresher for longer time intervals. With Intelligent Inverter Technology and Nano technology,
it is a guarantee that you can store your food and retain the quality without any worries.

Freezer
Add a sophisticated and energy-efficient touch to your kitchen with WALTON Freezer. Keep
your food frozen and preserved without any hassle. It is a unified blend between art and
technology. Equipped with 100% copper condensers & Nano technology, the freezers are
built with features that are unrivaled and designed for durability, giving you the freedom to
store and reserve all the food that you want

Beverage Cooler
Whether the purpose is for commercial use or personal use, WALTON Beverage Cooler allows
you to keep a variety of drinks ready and cool constantly. You can use them either indoors or
outdoors. Designed to operate at peak performance, yet maintaining its energy efficiency so
you can store the beverages without any worries.
 Indonesia

Economic system
Indonesia is a developing country. It is the 16th largest economy in the world by nominal GDP
and the 7th largest in terms of GDP (PPP). The government spends only 23.5% on their GDP and
they have a revenue of $92.62 billion & their expenses are about $98.88 billion. Indonesia has
crude oil and natural gas reserves, and it ranks eighth in terms of gas exports. Indonesia has
made significant development GDP growth to 6.1%. This country earns a GDP growth of 14.4%
from agriculture, 48.1% from industry, and 37.5% from the service sector. $67.3 billion.
Indonesia imports like machinery, fuels, chemicals, equipment, and foodstuff from other
countries like Bangladesh, China, Malaysia, Japan, US, Thailand, South Korea and Singapore.
Political system

The country's political system is democratic. The president & vice president are elected by parlia
ment. Is declared a republic, and its rules & regulations are based on Roman-
Dutch law. After five years, the president and vice president are elected.

Demographic
According to the national census, the population of Indonesia in 2020 was 270.20 million.
The average annual population growth rate was more than 1.1%.
Indonesian is the official language, Javanese (jawa) is the primary language, with over 30% of
population speaking it. Indonesia ranks fourth by population.

Legal System

Indonesia has no common law.

Rather, Indonesia pursues a civil law system that is influenced by
customary law and Roman Dutch law. Indonesia's legal system mainly consists of
three branches. Our product is a refrigerator so it is legal there.

Socio-culture
 Indonesia is a home to a wide range of cultural practices & products.
They have a low masculinity system and a high-power distance. In Indonesia, there are six
different religions. More than 90% of Indonesians speak Bahasa Indonesia as their first language.
Indonesians are a traditional people. They adore performing arts, historical roots, customs &
beliefs.

Geographic Factors
The country’s geographical location is very interesting because it was had thousands of islands.
It is located between Indian & Pacific Oceans
It is a hot and humid country, but the weather is mild and moist which is ideal
for our product, which is a refrigerator.

Market analysis

Refrigerators were imported from nearly 30 countries over the past five years,
mostly they import from China and Thailand combined account for more than
80% of the total imports. The import of refrigerators has grown (CAGR) of 8.3%
from 2014 to 2018 moreover Indonesia has a fast-emerging economy with the
increase of imports. So, it will be easier to capture the market with a trend.
Indonesia has strong cooperation with the ASEAN community. Indonesia has a
large population which means a domestic market of potential customers.

Imports from country 2014 2015 2016 2017

2018
Thailand 99,500 102,000 95,600 95,600 98,000

China 28,900 37,000 73,600 73,600 73,500

Vietnam - - 23,300 23,300 23,200
Rep. of Korea 12,000 6,420 1,150 1,150 1,300 Eco
Japan 2,400 3,270 2,000 2,000 2,370 no
my
Others Counties 6,100 1,520 6,540 6,540 6,270
of
Total 149,000 150,000 202,000 202,000 205,000
Vietnam
The economy of Vietnam is a blended communist oriented market economy, which is the 37th-
biggest on the world as estimated by ostensible GDP (Gross domestic product) and 23rd-biggest
on the world as estimated by purchasing power parity (PPP) in 2020. Vietnam is an member
from the Asia-Pacific Economic Corporation , the association of Southeast Asian Nations and the
World Trade Organisation.

Vietnam's economic freedom score is 61.7, making its economy the 90th freest in the 2021 List.
Its general score has expanded by 2.9 focuses, essentially in light of an improvement in monetary
wellbeing. Vietnam is positioned seventeenth among 40 nations in the Asia–Pacific Region, and
its general score is over the regional and world averages .

politics of Vietnam

The politics of Vietnam are characterized by communist republic structure which is eventually
constrained by a solitary party. The Prime Minister of Vietnam is the head of state, and the Head
of the state of Vietnam is the head of government, both of these are discrete from the Overall
Secretary of the Communist Party of Vietnam who drives the Communist Party of Vietnam and
is top of the Politburo.
Executive power is practiced by the government and the President of Vietnam. Administrative
power is vested in the National Assembly of Vietnam (Vietnamese: Quốc hội Việt Nam). The
Legal executive is autonomous of the leader. The parliament embraced the current Constitution
of Vietnam, its fifth, on 28 November 2013.

Demographics of Vietnam

Vietnam is the fifteenth most densely populated country in the world and is among the nations
with themost noteworthy populace thickness. The population is,nonetheless, not equitably
distributes across the country. The Red River Delta and the MekongRiver Delta have the highest
populated area ,generally due to comfortable conditions for significant financial exercises like
agribusiness and fisheries

After the Doi Moi financial change during the 1980s, a heavy urbanisation further built up these
spaces as the most populated metropolitan habitats in Vietnam.

Vietnamese Culture

Vietnamese Culture is one of the most ancient culture in the world which has gone through
changes very nearly four millennia. People said Vietnam culture has mostly influenced by
Chinese culture yet there is a study shows Culture of Vietnam has its own characters and has
equal improvement to Chinese culture. Along the historical backdrop of Vietnam from the
Tradition of Trieu, Dinh, Ly, Tran and Le. In the essentially same time with Chinese line of Han,
Duong, Tong, Nguyen.

Some major Traditions & Customs in Vietnam are :

 Ancestor Worship.

 Burning votive paper.

 Animist beliefs.

 God of Wealth Worship in business.

 Visiting the pagoda by the beginning of year.

 Lunar New Year reunion

Lunar New Year (Tet Nguyen Dan) Lunar New Year, or Tet, is known as the most important
festival and holiday in Vietnam.
 Objective and Benefit of export in Sri Lanka

Walton Electronics products are well-known in Bangladesh, and the company has a strong brand.
No other electronic company has ever served a product category with such high quality and
diversity. Walton's domestic sales are very strong, and the company has a large market share.
Walton Company, on the other hand, to be successful on the international stage, it was necessary
to go global. In recent years, the Walton Company has made several acquisitions. Many
countries have distribution networks. In order to export consumer goods in Sri Lanka, For
Walton, the electronic category will be a good business opportunity. There are numerous
excellent options available. Refrigerators are exported to Sri Lanka for a variety of reasons (or
benefits). The following are some of them:

Increasing profit:
Exporting is one way to increase a company's sales potential by expanding the "pie" it earns.
Otherwise, businesses try to profit solely from their local market. Walton is a large company
with a strong market image, and it is doing extremely well. In the domestic market, there is a lot
of business. Walton's export business in Sri Lanka is expected to grow. Extending the firm's
market base to other countries increases demand and, as a result, profitability.

Reducing Risks:
It is risky being certain to the domestic market alone. Export sales to a spread of diverse foreign
markets can help reduce the chance that the corporate is also exposed to due to fluctuations in
local (and foreign) business cycles. If Walton company export their products in state, it'll be a
change to reducing risk because Sri Lankan rate is high.

Economies of Scale:
Exporting allows you to learn from pure economies of scale with products that are more "Global"
in scope and have a wider range of acceptance round the world. Walton are able to do economies
of scale and spread costs over a bigger area if they increase their export production and sales.
lower average unit costs and increase overall profit competitiveness
Cultural sensitivity:
The bilateral relations between the People's Republic of Bangladesh and the Democratic
Socialist Republic of Sri Lanka are referred to as Bangladesh-Sri Lanka relations. Due to trade
and investment, relations have been generally friendly. Many Sri Lankans live in Bangladesh.
Medical students use cricket to communicate with one another in a friendly manner. Since before
the subcontinent's inception, the two South Asian nations have had a historical relationship. The
British colonization of Sri Lanka's first king is mentioned in the Pali literature. He was said to
have ancestors from the Vanga Kingdom, which is now Bangladesh, according to the chronicles.
The Buddhists of Bangladesh gave several strands of hair to Sri Lanka. Poya Day is a Buddhist
public holiday in Japan that honors those who have been identified as Buddha's descendants. Sri
Lanka is a country in South Asia.

Sri Lanka Culture and Society

 Language In Sri Lanka

 Sinhala (also known as Sinhalese or Singhalese) is the mother tongue of Sri

Lanka's biggest ethnic group, the Sinhalese. It is part of the Indo-Aryan family
of Indo-European languages.

Religion
 Buddhism and Hinduism are the two predominant religions in Sri Lanka, and
both have significant political, cultural, and social ramifications.

 In general, Buddhists believe that people reincarnate and experience multiple

lives.They learn lessons in each and should strive to improve their behavior in
each life till they attain.
 Religion has an impact on business both directly and indirectly. Fatalism, or the
belief that a greater power is in charge, is the most prevalent belief. As a result,
while making decisions, etc., people will turn to religion.
 Vietnam

With an economic value of $ 80.591 billion and a per capita value of approximately $11,068,996,
Sri Lanka has seen strong growth rates for most of the country over the past few years. The Sri
Lankan economy far outperformed the region and achieved strong annual growth of 4,444 at
6.4%. GDP per capita exceeds South Asian countries by 4,444. Since the end of the 30-year civil
war, Sri Lanka has focused on the long-term challenges of strategic and structural development
with the aim of transitioning to a country of the upper middle class. For Walton, this is a good
opportunity to export their products to Sri Lanka. Recently, Walton has sales networks in
countries such as India, Nepal, Bhutan, Myanmar, Maldives, United Arab Emirates, Qatar,
Nigeria and West Africa. Looking at Sri Lanka's economic strategy in detail, if Walton can do
business properly and enter the Sri Lanka market, there is a good chance that it will do business.

GDP US$ 80.591 Billion (World bank)

GDP growth rate 4.1%

GDP per capita 4100.00 USD

GDP by sector Agriculture 12.8%, industry 29.2%, services

58%

Inflation (CPI) 4.42%

Population Below poverty line 4.1%

Ginny coefficient 36.4 %

Labor force 8,319,680

Labor force by occupation Agriculture 32%, industry 26.3%, services

41%

Unemployment rate 4.3%

GDP (purchasing power parity)

Strategy
Global Standardization Strategy has indeed been chosen. The capacity to employ standard
marketing across borders is the broad definition of global standardization. To put it another way,
it's a company's or business's capacity to employ the same marketing plan from one country to
the next.Following that, as well as across cultures. When a product's attractiveness is essentially
the same all across the world.Global standardization is a useful instrument in the world. Price
reductions are common with this method.We don't need to modify our product because it's a
refrigerator. However, in order to stay up with the times,It is possible to lower the market price.
Cost reduction is important in global strategy, as is local responsiveness.is very low. This is why
we have selected this course of action. Exporting is our default entry mode.

Conclusion
Walton is one of Bangladesh's most powerful conglomerates. Despite having its share of
competitors and struggles, the corporation has surpassed hundreds of milestones in its own
country and now seeks to conquer the rest of the world. By 2025, Walton plans to be present in
practically every industry.country all across the world Walton, like any other corporation, had
had its ups and downs, but they had persevered.Never failed to have a solid core, which is to
provide the greatest service to their customers. AndIt has reached this incredible level thanks to
the headsets worn by every single employee of the organization.
References
● https://waltonbd.com/
● https://en.wikipedia.org/wiki/Walton_Group
● https://en.wikipedia.org/wiki/Indonesia
● https://www.britannica.com/place/Indonesia
● https://en.wikipedia.org/wiki/Vietnam
● http://countrystudies.us/vietnam/33.htm
● https://www.commisceo-global.com/resources/country
guides/sri-lanka-guide
● https://colombo.embassy.qa/en/sri-lanka/economy-and
investments