Background of the Walton:

Walton is a Bangladeshi group of electronics companies. Sister concerns of Walton Group are
Walton Hi-tech Industries Ltd., Walton Micro tech Industries Ltd., Walton Digitech industries
Ltd. Walton Plaza, Dream Park International, Walton Corporation & Walton Chemical
Industries Ltd. etc. In 1977 the company was founded under the Name of RB Group. At that
time, they used to import CRT televisions only after some years they started the import of
Refrigerators from China. In 2007, Walton set up its own assembly/production plant in Gazipur
to manufacture TV, Refrigerators, AC and Motorbikes. After successful trial production
Walton Hi-Tech Industries Ltd., one of the top companies in the Walton Group, started its
commercial production and assembling with sales activities next year (2008). The company
made its debut in 2008 as the Walton Group by starting refrigerator parts import and
assembling and finally started manufacturing refrigerators in the year 2012. Now Walton is
producing electronics, computers, motor vehicles, telecommunications, and
Chemical products. It is the first Bangladeshi brand to launch mobile phones in the market as
their own production & the first fridge compressor manufacturing company in Bangladesh
since 2017. And now it become the market leader in the Bangladeshi refrigerator and
electronics market.
Creating the uncontested Market Space:
Before the launching of Walton, brands like Singer, Former Butterfly group (Now ECO+)
Konka, TCL were offering electronic products in Bangladesh at affordable prices by importing
the products from several countries. However, Walton quickly established itself in this market
through their high-quality products with affordable Pricing. Now, several other competitor
brands like Eco Plus, My One, Electra, Vision, Minister, and Jamuna Electronics have come to
the market, but Walton is strongly holding its leading position in the market. In addition to
Walton’s marketing network, they own more than 400 showrooms (Plaza) across the country.
Besides, Walton’s products are being sold in more than 17 thousand outlets across the country.
In addition, the company has more than 76 service points across the country to provide after-
sales service to the customers. ‘Walton Service Management System’ is the only ISO-certified
service center in Bangladesh. More than two and a half thousand engineers and technicians are
providing their services to these service centers. Walton is making environmentally friendly
products through its innovation and technological progress. The whole manufacturing process
uses CFC-free gas, and even refrigerators and air conditioners are also made with eco-friendly
materials. Just like product design and development, Walton’s Research and Development
team is conducting research to make eco-friendly product packaging and manufacturing as
well. The company currently has more than 30 thousand employees. Walton also has a 75%
market share in refrigerators, 50% in televisions, and 20% in AC. Currently, this company is
exporting its product to forty-two countries around the world. Walton Home Appliances
currently has a total of 377 models, with a production capacity of 2.7 million units. In
compressor production, Walton is ranked 8th in Asia and 15th in the world. All of these are
made by Walton as the uncontested Market Leader in the electronics Market in Bangladesh.
Making Competencies Irrelevant:
Low-cost Better Quality, Product & Service Availability, Better communication & product
variety, affordable price, and services in budget and aggressive sales & marketing policy is
making their position strong in the market. All of these makes the Competencies irrelevant with
the other competitors in the electronics industry of Bangladesh.
Create & Capture the New Demand:
Before 2010 low-income people couldn't think about the ownership of a refrigerator. In the
Rural Area it was out of mind that a fridge (Freezer/Refrigerator) could be available in that
area. When electricity was not so available in rural areas and load shedding was the daily
regular issue, Walton thought about the Frost Fridge in cheap rate, which can keep the food
fresh for more than 12 hours. In the rural and urban area, Walton has started the product selling
in EMI (Kisti) without any credit card and that affects the market to capture the root level
market. This market and demand creating is tough for the other competitors.
Walton is Breaking the Value/cost Trade off and align the whole system of company's activities
in pursuit of differentiation and low cost:
In Bangladesh there are 2 types of electronics market:
1. White Market (Selling Own Brand Products by own Production or assembling)
2. Grey Market (Selling Own Brand Products but production from other company)
In the fiscal year 2020-2021 in the white market Walton has sold 2,200,000+ refrigerators &
Freezers. At that time Walton’s factory produced 3,500,000 units of refrigerators and freezers.
In 2019, Walton made an agreement with Hyundai Electronics, where Walton will supply
100,000 units of refrigerators and 20,000 residential air-conditioners. And in the covid-19
situation when the trading and international import was hampered the Walton entered the Grey
Market and sold a bulk quantity of Refrigerators, Freezers, Residential ACs and lots of
Compressors for the local other Brands. To achieve Walton's mission of "Walton at every
home," the company established various specialized support units both inside and outside of
Bangladesh. Government tax incentives in Bangladesh had boosted Walton's cost
competitiveness, but how else could Walton compete with other international brands to achieve
its goals and become a household name worldwide? We know bulk production reduced the
cost of Production and as the local entrepreneur Walton got the huge exemption of VAT &
TAX. Wherever the Walton is leading the electronics market share (74%+ Refrigerators, 50%+
TV, and 35%+ AC) here their production capacity is huge and it's not only quite tough but also
almost impossible to bit them in cost and value also for their multiple capture in Sales and VAT
Tax Redemption.
 References:

1. Walton Group. (n.d.). About Walton. https://waltonbd.com/about

2. Strategy. (2020, June 4). Blue Ocean: Walton: Building a Global Brand Through
Internationalization Blue Ocean Strategy Analysis. EMBA Pro for Executive MBA
Professionals. https://embapro.com/frontpage/blueoceananalysis/8308-walton-walton-
s

3. Chowdhury, S. A. (2015, October 2). Walton: Made in Bangladesh. The Daily Star.
https://www.thedailystar.net/business/walton-made-bangladesh-150850

4. Strategy. (2020b, June 4). Marketing Strategy: Walton: Building a Global Brand
Through Internationalization Case Study Solution. EMBA Pro for Executive MBA
Professionals. https://embapro.com/frontpage/marketingstrategyanalysis/8308-
walton-walton-s

5. Anik, A. M. (2021, September 9). History and Rise of Walton: Bangladesh’s Leading
Electronics and Tech Giant. Business Inspection BD.
https://businessinspection.com.bd/history-and-rise-of-walton-bangladeshs-leading-
electronics-and-tech-giant/

6. Strategy. (2020b, June 4). Blue Ocean: Walton: Building a Global Brand Through
Internationalization Blue Ocean Strategy Analysis. EMBA Pro for Executive MBA
Professionals. https://embapro.com/frontpage/blueoceananalysis/8308-walton-walton-
s

Submitted By:
1. D.M Mahboob Alam (ID:221001806)
2. Saharia Azmi Chowdhury (ID:221003006)
3. Sourav Palit (ID:221002906)