A Developing Strategic Analysis OF Orient Photoworld

Prepared By: Sagar Islam ID-2012121007 HND Business Intake 7

Prepared For: Mr. Ashiqur Rahman Bhuiyan Head & Faculty School of Business BAC
Dhaka, Bangladesh

Orient Photoworld.
Now memories remain with us even we die so to store some memory now a days we use camera,which is art of light now a days.Dslr cameras are now most popular among photographers mainly nikon and canon.New series of every nikon and canon are ariving at international market at regular basis for which dealers are realy confused to match with international market.We the amature photographer goes after low budget DSLR camera and lenses.Their are two types of sensors within a dslr camera-FX and DX format,two types of lenses single focal length and variable focal length.Flora is only the authorised dealer of nikon camera,other then that there are also many more camera dealers,but not all of them provide rent and few days delivery.Orient Cameras & Photos provide rent of lenses,cameras,flashes and necessary accessories.Its location is at Plaza A.R. shop no 407 and maintained by Mahfuz bhai,all products are brought from thailand.We have got people who travells thailand frequently so they provide us with all things which we need if ordered.Our product category are Lowerpro, Fotopile, Nikon, Canon, Marumi, Nissin, Yongnuo etc.We try our best to serve our customer with best product at a reasonable price in current market.

Externel Business Environment

PESTEL Analysis: there are several similar approaches used to investigate the global business environment within which an organisation operates. The most commonly used approaches to external environment analysis :

PESTEL It mainly stands for (political,economical,social,technology,ecology,legal),for about 1year our countrys

economical condition was not so good, was in a situation of recession so it took time to cover it up. Tax was imposed heavily on electronic devices so most of the camera shop owner cautiously brought products from thailand, singapore and china.Most of them try to evade tax as we cant make much profit out of it,legal system in bangladesh is very weak so some business man take advantage of it. In society now a days everyone seeks to bring new camera which boost our business in some way.Flora limited is the sole authorised dealer of nikon,but with international market they cant match their price as they have to go through all legal procedure.For this we (Orient photoworld) get the advantage and can bring their customers to us.Nikon and Canon cameras are eco friendly, meet the demand of rising technology within camera world.

PORTERS FIVE FORCE- It examine the business domain or industry within which an org operate and identify
the business pressures that may be brought to bear upon that organisation. Michael Porter devides the potencial sourse of pressures within the industry into five categories- new entrance, competitors, buyers, suppliers, substitutes. Buyers Power- As no of camera shops in dhaka is increasing burgaining power of buyers is high as we totally depend on buyers. Many customers goes for low budget but want better quality products, such as in shops in paltan people dont have faith in them as they mostly provide refurnished product,second hand product. They might seem fresh without expert hand no one can understand about it. They provide 1 year waranty of their own but its not the rule, so for this reason people dont go after those shops. With advanced technology of communication customers are aware of grey market, so it sometimes become difficult for us to convience them. But as we provide intact product our customer of aged 18-35years trust us. Few months back flora cant provide necessary products to customers as for them it take time for shipment from (singapore, thailand) to bangladesh through ship. In (August November 15) their was a rush of orders in Orient as we provide products of nikon and canon 2 days of order and advanced money payment. All our shipment is done by people close known to us who frequently travels to (singapore, thailand). So overall buying power is huge and even a difference in money amount can create a big difference.Flora is losing some of their customers for not having essential equipments in time

when a customer need, also price variance from us as we maintain our daily price list .We provide nikon products at a reasonable price then high price in flora. Suppliers power: For most of camera businessman Thailand is the perfect destination as its the hub of world camera for about 20years (refurnised,brand new, second hand) all are reachable for everyone at a reasonable business price. So it takes time but is easy for us to make decision from where to buy as every option is available there from 1000shops.So supply chain is also strong to meet the demand of customner needs. We maintain a good relation with few shops at fotofile. Flora get their products direct from Thailand, Japan nikon international manufcturer.So overall supply power is strong. Competitiors- Now comes the real choice of customers to buy from, flora is the only authorised dealer of nikon. So two mind setup comes within our customers, will we go for flora authorised dealer (high price produstcs) or Orient, Camera world with less price then flora limited better products. So it really depends on person to person fluctuating in their decision. So loyality of customers is not reliable. Substitutes- first party such as nikon and canon we also have third party(temron,sigmaetc)lense, flash producer, so substitutes products are available. Reliabilty is the big issue in daling with customers so its their rd st choice if they want to buy 3 party lense for nikon or canon body with half of the 1 party lense price. So availability of substitue product is high. New entrance- its easy for any1 to enter into this camera business with huge budget,but the main object which is very difficult to control is price of the products, reliability, availability of camera gadgets on time and maintaining relation with customers. So its hard and high risk in this business. Porters Five Forces Analysis delivers a message where the business should look into survival. There are two ways/sets that the organization can choose for itself in order to attain survival. The first set is by playing defensive, cutting down costs wherever possible and not put to much money into additional investments. The other way would be to aggressively market its products through professionals if necessary, cut down costs as far operations are concerned and also smoothen the functions of overall operations by hiring skilled and capable staff.

SWOT Analysis- It is used to consolidate the results from the external and internal business environment
analysis. It stands for Strength , Weakness, Oppurtunity, Threat. Strength Its location is very vital for our business at dhanmondi, we are providing canon,nikon,third party products,cleaning kit,bagpack,side back, flashes, tripods etc. Those who cant afford to buy a lense provide rent for those person,has got strong connection with photojournalist, fashion photographe.r, studio etc. try to give our customers products at less price than flora limited. Weakness- we are not the authorised dealer of nikon and canon, for which most of our customers hesitate to take decision if they will buy products from us or not, if the product is second hand,refurnished or not which comes into their mind,lack of marketing proficiency. Oppurtunity We can bring different kind of filters, renowned 3 party lense,flashes, get available stock of necessary products when flora ltd or any other camera shops cant provide photographers with.In this recission time we stocked nikon and canon products where flora didnt have that stock of products which their customer neded. In that time we provided products to those customer and made a good relation. Threats If the government imposes taxes on those business we are doing then we might lose proportion of our profit,if any other shop comes who gives better price product then us and attract more customers with their package then we might lose our own customers.
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After analysing SWOT the difference we get from flora is that we need to brand ourself in the present market making a tag line that we deliver better product, waranty service whenever is needed. So that no can point finger on us that we provide refernished,second hand product to our customers.

Ansoffs Matrixs Analysis :

Markets Existing New Exisitng

Products

New Product Development

Market Penetration

Market Development

Diversification

It provides a set of strategic alternatives that may be considered by organisations when difining their business strategy. Market Penetration- this situation is where existing markets are targeted for greater penetration by existing products. In this approach the organisation decides to continue with their exisitng products and markets but to adopts tactics such as additional promotions, increased sale efforts or rivised pricing approaches in order to generate increased market share. Here we can bring new offer such as revising our prise,make new offer which is done in Western and other eastern country. Suppose while buying nikon d7000 you will get a bag,free memory card. None of the shop owners in bangladesh gives this offer. Market Development - In this situation the organisation adopts a strategy of exploring other markets for its products.It means targeting new markets at other districts of banglsdeah which flora does covering its market at other distrits in bangladesh. This is what we lacks from Flora ltd as our base in only in dhaka for which our reputatioin is not so bright as Flora Ltd. Product development It involves developing of new products, services and targeting existing markets. Another approach to it would be to add further, related features to existing products and services. Frankly speaking we cant compete with flora in a whole but can give additional attachment to our products such as eid package, christmas package.we can ourself make a package and open it for the market. Suppose- Nikon d5100, 35mm 1.8g lense prime, lowepro bag, if u buy this product you will get extra memory card, cleaning kit,pouce and free maintainance service. Diversification the most redical strategic is to develop new products or services and target new markets. This is a risky strategy to adopt, since it does not use existing experties and leverage the current customer base. Flora does business with computer, printer etc which we dont do which increases the marketing of its brand wholely in bangladesh, for which its sales increases which makes us backfooted in many way. Horizintal Integration The achievement of additional business at the same level of value chain is reffered as horizintal intergration.It can be achieved by internal and external expansion through merge and acquisition of firms offering similar products and services.Benefits soughts by firms that horizontally integrates*economies of scale- Achieved by selling same produsts more,for example geographic expansions. *economies of scope- achieved by sharing resources common to different products. *increased market power.

To beat flora limited we can merge with camera zone and camera world to take the share of the market as a whole.We can merge with pathsala institue providing their students with camera gears whichever they need. This will increase our sale, advertisement among young photographers. Vertical Inegration - Backward and forward integration are types of vertical integration. A company that expands backward on the production path has backward integration, while a company that expands forward on the production path is forward integrated.A company manufacturing different products in one banner to achieve one goal of success. Such as Flora limited doing business of laptop,printers,monitors (of different company),nikon camera.This which we dont do. Liquidition - The conversion of assets into cash. Just as a company may liquidate an entire subsidiary by selling it to another firm, so too may an investor liquidate by selling a particular type of security.The selling of assets and the paying of liabilities in anticipation of going out of business. We are not in a state to liquidating our businesss

Stakeholder Analysis: A stakeholder analysis is a technique you can use to identify and assess the
importance of key people, groups of people, or institutions that may significantly influence the success of your activity or project.The type of stakeholders we have are photograhers of different institution,film industry, students of different institue who studies about photography,photo studio such as photohut, photojournalist, fashion designer. To reach our goal of making everyone feel the touch of camera we have to communicate with our stakeholder and understand their condition if they have changed or not in any way. It helps to anticipate the kind of influence, positive or negative, these groups will have on your initiative,develop strategies to get the most effective support possible for your initiative and reduce any obstacles to successful implementation of your program. The benefits of using a stakeholder-based approach are that: *We can use the opinions of the most powerful stakeholders to shape our projects at an early stage. The input they will give will help us to improve our service for them. *By communicating with stakeholders early and frequently, we can ensure that they fully understand what we are doing and understand the benefits of our project this means they can support you actively when necessary. *we can predict what our customers reaction will be to our project, and set up the plan in such a way which wins their heart and buy more products from us .

Identifying Stakeholders
The possible list of Orion Photoworld stakeholders*Boss manager staffs - print media banks government interest group journalist Photo studio fashion designer researchers - the community.

Prioritizing Our Stakeholders

If we dont make difference between our stakeholders then we wont know whom to give importance for which it will be benificial for our project. Here is a graph which can help us to distinguish between our stakeholders

Lets see who falls in which group of above A Significant importance with significant influence Students of Pathsala, teachers of pathsala, photojournalist, photohut, employers in my shop. This are the stockholders whom we have to satisfy their needs and maintain a regular communication as by their referances more people will come to our shop. B,C,D this includes who just visit our shops for information, ordinary people purchasing camera, community of dhanmondi, trade union of photography, government for taxation and other international related issues.

GSM Matrixs :
A grand strategy matrix can help you plan a strategy for your small business. This matrix has become the standard for businesses small and large. Develop a grand strategy matrix by examining your ability to grow rapidly or slowly while evaluating your competitive strengths and weaknesses.The four Quadrants as follows: Strong Competitive Position, Weak Competitive Position, Slow Market Growth, Rapid Market Growth. Quadrants 1. This quadrant is meant for companies that are in strong competitive position and rouring with market growth. The companies have an excellent strategic position and should focus on current markets and product and its development strategy. With resources they can also expand in backward, forward, or horizontal integration. Companies in this quadrant can afford to exploit external opportunities and enhance their financial muscle. Suppose we are dealing with single product line up imean only cameras so we must divert our production in another to avoid rish as our products are slender. In this case Flora is doing good in diverting their production. Quadrants 2. Companies in this quadrant of the GSSM have weak competitive position in a fast growing market. Companies here are in growing market but they are competing ineffectively. An intensive and effective strategy must be adopted. Companies can adapt to horizontal integration. If they cannot have a suitable strategy, then bankruptcy of some divisions can be considered. As a last resort, liquidation can be considered and another

business can be acquired.We can go for liquidatin as our position in the market is not stable as market price of our products fluctuate if we want to liquidify our resources then we might have to bear loss which we cant cover at long term basis. Quadrants 3. Here companies are in a slow growth industry with weak competition. Drastic changes are required. The management must change its philosophy and new approaches to governance are the need. Overall revamping at a cost may be warranted. Strategic asset reduction, retrenchment may be the best option. Diversifying by shifting the resources may be another option. Final option could be divestiture or liquidation. Quadrants 4. the companies are in strong competitive position, but in a slow growth industry .Companies must look for promising growth areas and to exploit opportunities in the growing markets as they have the strength. These companies have limited requirement of funds for internal growth and enjoy high cash flow due to a strong competitive position. They can look for related or unrelated diversification with cash flow and funds; they can also look for joint ventures.

By reading everything we Orion photoworld place us at 2 quadrants as we dont have brand image such as flora though we sale more products then flora keep in mind we sale nikon and canon camera and different lenses , third party products. As everyone knows they are authorised dealer of nikon and gained trust of many photographer. To increase our sales we can release our products at package system.Liquidation is not an option for us as price of camera products varies from day to day, also its demands.if new camera or lenses are introduced in the market then the price of some older things decreases. We can go for horizontal integration with other shops just like us such as camera world or camera zone which will strenghten out motivation and goal of reaching everyone a dslr camera at reasonable price thenn flora limited. Flora has got more products to sell then which I have mentioned above many times. Flora is offering service centre only for nikon cameras where we can offer for every dslr cameras. It totally depends upon our chairman Here is a list how we maintain our cost ragarding to flora limited only for nikon cameras.

Role & Responsibilities for Orient Photoworld & Flora Ltd

Finding new alternative of other business which will suit our current business,allocation of funds from where we will get the support to run our future planning. Making everyone who are involved with us known about our future planning and feed back of their thoughts as without them we cant implant our planing ang strategy. Recruitment of more employers who have got more experience in field of photography.review the protocols , objectives, policies, meeting with other delegatesn with whom we are about to merge our business with. Their ability to withstand our goal to achieve,what proportion of shares they want to provide to run our merging business the time to take to make it success. Developing our communicatioin skills with our shareholders at regular basis informing them about out products which we lack from flora ltd. Notifing the society of our merging with c amera world and camera zone. Finding a fix address where everyone can come to buy their products as we dont have any parmanent address after merging with camera world and camera zone. The budgets to setup everything from service center to photostudio.Posibility of creating customer care centre which wiil get us accessible to our weakness For Flora finding recruitment for their service center as they are not active at the moment, exploring a renegotiona with their shareholders about their pricing method. Finding holes in other diversified business such as laptop,monitor,nikon bag, printer businness, so that they dont lose their mnarket position from this products while concentrating on nikon business only. They can seperately build a administrative panel whose task will be only to look for camera business,so that they dont have to give more time to this particular business. Deve loping their skills in handling cameras in service centre,recruiting more employers who are proficient in this particular area,training them from authorised service centre in thailand, singapore and japan.

Resource Requirements to Implement the New Strategy (Market Penetration)

In case of merging we may need cash, so if cant manage money personally we can go for bank loan. To setup with new office 3000000tk will be needed, wherever we give our office we need to give advance payment. Make sure whatever revenue we are getting to reserve it, development with bundles of products which will attract more customers. Look for sales offer in christmas, winter and summer in thailand, singapore, china, creating better communication with those people with whom we do business outside our country. More 6000000tk will be needed to setup small office to maintain export of our products from thailand, singapore and china, explore the opportunity to hire an advertisement firm to devise and implement which may need more 600000tk. Revising our old contacts who didnt maintain contacts with us, sourting out our problems for which they did never came to our shops again. What more facilities we can give to them so that they come to our shop again. Locate external and internal funds for financing the related activities which must maintained by Mahfuz bhai. Contacts with local photostudios to bring advance studio which we are planning to do. For this we need more 1800000tk and consults from other merging groups. More stuffs needed for maintaing service center in that case we need more 500000tk. Make new contracts with our existing suppliers outside of our country.

Time priod to achieve all this by Orient photoworld.

From Jan to March we need time to allocate all available funds from bankloan to personal investment. Then April to September we need to alocate our address, maintain our customers list old and new ones, within this period we need to inform everyone about our new address. If we get proper funding then have to contact our suppliers for products we need to bring, make recruitment of proficiened workers. From October to september of next month we will need time to setup service center for our customers and studio for amature photographers. So this

is a long process to maintian if we can gor through this steps we will achieve our goal and gain more market share from flora Ltd.

References

Whatever information is given by orient based on international market which we get by anylising different sites in net which reflects internatinal market price .here are some link given WWW.degitelrev.com www.ebay.com www.filefoto.com www.camerapricebuster.com www.bhphotovideo.com www.ginichi.com www.mapcamera.com Here are those sites which help us to analise the market of camera and its acessories, set us prices in bangladesh whoever wants to buy any camera products and plan our strategy following this sites.