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CHAPTER-ONE

INTRODUCTION
1.1 Introductory Background
The word SWOT stands for Strength, Weakness, Opportunity and Threat. By this
information, it is clear that SWOT analysis is a technique which is utilized to understand the
strengths and weaknesses and for identifying the available opportunities and the possible
threats. So, this technical analysis helps organization in developing a strong and effective
business strategy focusing on all the business strengths and weaknesses as well as the
opportunities and threats present in the market place. It is an organized framework and basic,
straightforward model for businesss greatest strengths, weakness, opportunities, and threats.
It serves as one of the most important tool in HRM for business development. An effective
SWOT proves to be a psychology of success for the organization. Some people say that
SWOT analysis was devised by Albert S Humphrey.
The mechanism of SWOT analysis is to take information from an environmental analysis and
then making its separation on the basis of internal (strengths and weaknesses) and external
issues (opportunities and threats). Once this procedure is over, the analysis tells what the
factors responsible in objective accomplishments are and what restrictions are and how to
overcome those restrictions in order to achieve the desired results.
While doing SWOT analysis, the strengths and weaknesses of the organization must be kept
realistic. SWOT analysis has to be very simple and short avoiding any type of over analysis
and complexity. The information which will be available with help of the analysis will be
beneficial for the organization in order to match the firm resources and capabilities to the
competitive environment.

1.2 Background of the Study


This report analyses the SWOT analysis of the Aarong. Aarong is one of the most renowned
fashion enterprises in our country. This report has covered almost all the strategies of Aarong
for marketing its product. It also includes a brief profile of the enterprise. To know the
strategy of the enterprise it also includes the product categories and the distribution channel
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of the enterprise. The objective of this report is to identify and analyze SWOT analysis of
Aarong. I have used from different sources of data. The data has been collected through oral
conversation. The limitations to get the proper information were Time barriers, Intension to
not disclose the information, Rules and regulation etc.
The vision of the company is to remain as the benchmark in the fashion industry. Being an
innovative and creative enterprise, consistently delivering world-class products ensuring best
consumer satisfaction through continuous value added services provided by highly
professional and committed team.
The main product sources of Aarong is-AAF (Ayesha Abed Foundation) and the independent
producers. Aarong produces more than 100 product line. All these products are highly
fashionable. Their products are basically two types-Textile and Non-Textile. Now Aarong is
going to expand its market all over the world through e-commerce. Its clearly indicated that
Aarong is in the leading position among all other competitors in the fashion industry.
At present the company holds 65% market share where as the rest of 35% market share holds
by the other multi-national and local companies. The majors participants of the fashion
industry are- Grameen, Krafts, Anjans, Rong, Banglar Mela, Anna mela etc.

1.3 Origin of the Report


The term paper is a basic requirement for the MBA program. The proposed topic is A Study
on SWOT Analysis of a Particular Company. The topic is assigned by Mohammad
Mohashen Reja, Associate Professor, Department of Accounting, Victoria Govt. College,
Comilla.

1.4 Objectives of the Report


The main objective of this report is to find the strength, weakness, opportunity & threats of
Aarong. I will try to find out what are the approaches are taken by Aarong to establish the
strategies as an enterprise. Another objective is to know how Aarong operates its marketing
work through the CRM (customer relationship management).
The objectives of the study are as follows:

Broad Objective
The report will cover the following broad areas
1.
2.
3.
4.
5.
6.
7.

Current scenario of handicraft based retail industry of Bangladesh


Know the mission, vision, objectives and values of Aarong
Evaluate the business model of Aarong
Identify the competitive business strategies of Aarong.
Analyze the balance scorecard of Aarong.
Identify the key success factor of Aarong as a social enterprise.
Identify the strategic group and market position of Aarong compare to the strategic

group.
8. Macro environment analysis (PESTEL)
Specific Objectives
1. To have an overview on performance of Aarong as enterprise and as one of the best
retail industry in Bangladesh.
2. To evaluate the business strategies that Aarong follows to establish its mission, vision,
objectives and values. Another objective is to know the customer satisfaction
indicators and its result.

CHAPTER-TWO
CONCEPTUAL ISSUE
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2.1 Overview of SWOT Analysis


A SWOT analysis just one of the tools available to managers and organizations to provide a
framework to help understand and analysis its market position or markets where it sells its
products. SWOT can also be used to look at processes and product (or service) ranges it
offers.
SWOT as we know stands for the Strengths and Weaknesses, Opportunities and Threats
which the organization perceives. Strengths and weaknesses consider the internal
(controllable) factors and Opportunities and Threats are external from the organization and to
a greater or lesser extent are not controllable. They are the environment or context in which
the organization operates.
Using the data gathered in the SWOT process, this information can be prioritized and
a judgment made as to the likelihood and impact on the organization and its business. SWOT
is a tool to help structure the data collection to aid the decision making process. SWOT
is actually an audit tool, rather than an analysis tool.
Much like the saying How do you eat an elephant one bite at a time, a SWOT can be
approached in much the same way: Much like good practice brainstorming, the best way is
for any individual involved in the SWOT to work on their own and to brainstorm Strengths,
Weaknesses, Opportunities & Threats (use of the PRIMO-F & PESTLE frameworks can
help). Then after researching on the internet, company accounts, industry reports etc add
more factors.
When this is done then a group activity should take each of the factors identified under
Strengths, Weaknesses, Opportunities & Threats build a complete table. When this is done
groups should look at each part of the table (S, W, O or T) and priorities factors based on
the likelihood and severity of impact (risk assess).

2.2 Literature Review


The study is to diagnosis the key success factor of Aarong being a social enterprise having
competition with commercial local and international lifestyle retail brands. This study will
also help to learn about managing the countrys biggest backward linkage for handicraft
product production through rural artisans and under privileged producers group. The study
will indicate the prospects and challenges of handicraft-based retail sector to promote arts and
crafts products. Also it is to diagnosis the technical, financial, operational, creative and
organizational competitiveness to produce large number of production, including the
identification and targeting of potential markets. Also it will help to learn how the
competitiveness being defined here as entrepreneurship, productivity, innovation and
investment that produce tangible benefits such as job, good wages, livelihoods, high living
standard in both urban and rural areas through organized retailing.
Analytics and findings on growth, opportunities, challenges and operational competencies of
Aarong being lifestyle retail chain from business and social point of view. Prospect of Aarong
along with this retail sector has significant impact on artisans livelihood and also impact on
enhancing lifestyle of urban middle, upper middle and higher income customers

CHAPTER-THREE
DATABASE
3.1 Scope of the Study
The scope of the study includes the swot analysis of Aarong. In this report I have focused on
all the qualitative factors which include profiles of Aarong. Aarong and all sister concerns, all
basic terms of strengths, weakness, opportunities & threats etc. I have also included the ways
how a company can manage their product. I have also analyzed the current position of
Aarong.

3.2 Methods of Collecting Data


Methods of collecting data mean the methods by which way the data have been collected.
Primary data are collected through face to face conversation basis and secondary data are
collected from different articles and annual report of Aarong. On this study most of data are
collected from secondary sources.
Primary Sources of Data are collected by

Interviewing the Finance and Accounts Manager of Aarong.

Interviewing all executives under Finance Department.

Informal conversation with other stuff.

Secondary Sources of Data are collected by

Annual Report of Aarong.

Manuals and Articles collected from Management Department Aarong.

Relevant articles and journals available in the web site of Aarong.

3.3 Limitations of the Study


The main limitations of the study are as follows:
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Lack of adequate knowledge about current position of any organization.

Sufficient records, publications, facts and figures are not available. These constraints
narrowed the scope of the real analysis.

For the reason of confidentiality, some useful information cannot be expressed in this
report.

Lack of available information about financial analysis of Aarong.

Unavailability of sufficient written documents as required making a comprehensive


study.

In many cases up to date information are not published.

Because of the unwillingness of the busy key persons, necessary data collection
became hard.

Lack of experiences has acted as constraints in the way of meticulous exploration on


the topic.

Lack of available time to prepare such a large report.

CHAPTER- FOUR
FINDINGS OF THE STUDY
4.1 Elements of SWOT Analysis
The SWOT Analysis is a strategic planning tool that stands for: strengths, weaknesses,
opportunities, and threats. The SWOT analysis is essential to understanding the many
different risk and rewards of any investment. Analyst, investors, students and professionals or
all types can use a SWOT analysis to categorically break down a project or businesses'
strengths, weaknesses, opportunities, and threats.

There are above mentioned four elements of SWOT analysis (acronym). The basic purpose of
conducting a SWOT analysis is to find out the positive forces and strengths and all the
possible potential problems which are to be eliminated. So while conducting a SWOT
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analysis, one must be careful about using the medium, the format or the layout for the
communication of these issues. I have given some samples for the analysis. One can mention
the internal and external side by side. Then participants are to be asked the easy questions
mentioned accordingly:
There is one more way:

Strengths
Internally generated long term advantage in the industry; Strength gives a company a long
term advantage over its rivals. Examples include: great brand name or economies of scale.
Weaknesses
A long term / fundamental business concern that are internally generated. A weakness is
something that causes issues for the underlying business, which take considerable time and
effort to fix and are internally generated or controlled. SWOT examples include: ineffective
corporate culture, inefficient tax system, etc.
Opportunities
External conditions that is helpful to a company. SWOT examples include: organic food's
popularity, low energy prices etc.
Threats
External conditions those are harmful to companys performance. SWOT examples include
an uncertain economy, housing reforms, and a closed economy.
With the help of this analysis a large number of information is collected which is based on the
internal and external factors. Sometimes, much of the collected data and information doesnt
have significant relevance. SWOT analysis categories the internal aspects as strengths and
weaknesses and external as opportunities and weaknesses. So there are two types of analysis
here, internal and external analysis.

Internal analysis includes the study of potentials and weaknesses of internal environment. It
includes following factors:

Organization structure, culture and image


Access to natural resources
Key staff
Operational efficiency and capacity
Brand awareness
Market share
Financial resources
Trade secrets

These are listed as the strengths and weaknesses of the organization.


External analysis includes the following factors:

Market trends
Customers, competitors, suppliers and partners
Social changes and new technologies
Economic and regulatory environment

This type of structured and organized SWOT analysis serves many purposes for the
organizations. Some important utilization are as follows:
1. Problem solving
2. Planning
3. Product and competitor evaluation
4. Personal Development
5. Decision making
6. Workshop sessions
7. Brainstorm meetings
Each report has a full SWOT analysis, which users can edit and improve. Additionally, the
industry analysis and investor portfolios are an aggregate of each individual company SWOT
analysis. Essentially, Wiki Wealth uses the SWOT analysis to understand each type of
investment.

4.2 Procedure of conducting a SWOT Analysis


SWOT analysis tool is used to find out the internal strengths and weaknesses in the business
and external opportunities and threats. This information is used to plan the business for goal
accomplishments. Follow the steps listed below for conducting a SWOT analysis:
1. Objective of SWOT Analysis
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Before starting the analysis, there should be a clear objective. For example, it can be done to
decide if organization should make any change in the product or services.
2. Research
Before doing the analysis, one must conduct some research on the areas which can influence
the environment such as business and market. To know about the competitors, market
research needs to be conducted. To find out about the strengths and weaknesses, talk to the
staff, clients, partners etc.
3. Know the business strengths
While conducting the analysis, every possible and potential strength should be known. Such
as employees, resources, financial resources, business location, cost and competitive
advantages.
4. Know the business weakness
The business weakness what can invite disadvantages to the business should be known. Like
lack of staff, clients, business location away from market, declination in market share etc.
These weaknesses should be addressed in the layout of the analysis.
5. Potential Opportunities
List the possible external opportunities like introduction of new technology, training and
coaching programs, government and administration change.
6. Potential Threats
The external factors which are responsible for any possible threat or problem to the business
like unemployment, increasing interest rates and competition etc.
These are listed information will help in developing a strategy to address the issues in the
SWOT analysis. With help of this one can find out that how to utilize the strengths for getting
benefits from the available opportunities, how to utilize to overcome the threats, how to
improve weakness and how to minimize the weakness for business objective
accomplishments.

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How to Improve of SWOT Analysis


Wiki Wealth uses the SWOT template to improve the qualitative analysis for each investment
research report. When a company's strengths are greater than their weaknesses, then a
company is better able to compete with other companies in their industry. When the number
of strengths and weaknesses are the same, then they cross each other out. When weakness
dominates strengths, then the company has many internally generated problems they need to
fix. A large number of weaknesses are bad for any investment. Wiki Wealth uses a number of
criteria to forecast the qualitative analysis conclusion for a company. If weakness or threats
dominate strengths and opportunities, then the target investment will not look favorable to
investors.
How to Improve SWOT Analysis Ideas
Many visitors contribute their thoughts and ideas to the SWOT template. Wiki Wealth
reviews each statement to improve upon what our visitors input. All it takes is a good title and
Wiki Wealth analyst will be able to create an entire paragraph of information that relates that
statement to the rest of the analysis.
For example, one statement for Starbucks read: Good Coffee, Yum Yum. Wiki Wealth analyst
saw this statement as a reflection of Starbucks' brand value, brewing recipes, coffee bean
sources, etc. reasons why Starbucks makes great coffee. Wiki Wealth will improve any
SWOT statement, so try it out. Help improve the SWOT analysis so we can all benefit from a
free SWOT analysis.
Value Investing Importance of the SWOT Analysis
The quality and quantity of statements has a direct impact on stock research ratings, and thus,
company investments. A professional analysis cost a minimum of $150. Wiki Wealths
SWOT analysis is free and open to improve and edit. This wiki allows easy edits of
information and content by anyone. All users edits are monitored and review by Wiki Wealth
professionals.
Acronym, Common Misspellings, and Alternative Names
Common misspellings include SWOT analysis, analyze, analysis, and analyses. The SWOT
analysis also goes by the term SWOT (threats, opportunities, weaknesses, strengths) Matrix.

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4.3 Overview of Aarong


Aarong is an enterprise of BRAC (Building Resources across Community) and its a CSR
based handicraft company established in 1978. Aarong means village fair Today; Aarong
reach has spread beyond Manikganj to the rest of the country. At present Aarong is operating
through 9 domestic outlets and one franchised outlet in London wear handloom terracotta
retail chains Bangladeshi patterns paid for. Aarong has more than 488 products in their
outlets. They have grown into a thriving international enterprise showcasing ethnic to
beautiful crafts from silks, cotton, Endi to, bamboo, jute and much more. From a single shop,
Aarong has grown into one of Bangladesh's biggest , with Twelve outlets spread across the
major metropolitan areas of the country - in Dhaka, Chittagong, Khulna, Sylhet and Comilla,
Narayangonj and one in London, UK. Aarong embraces and nurtures a diverse representation
of 65,000 artisans, 85% of whom are women.
Aarong also plays the role of protector and promoter of traditional products and designs. It
houses an extensive design library where remnants of our rich craft heritage, such as
Nakshikatha art and Jamdani , have been widely researched and archived for present as well
as future use. Aarong was born out of a need to ensure that the penniless silk farmers of
Manikganj were their goods upon delivery, so that they could feed their families. The women
Aarong employs are among the countries most disadvantaged. Through Aarong they have
been offered a way out of destitution and degradation where before they had none.
Today, Aarongs reach has spread beyond Manikganj to the rest of the country. It has grown
into a thriving international enterprise showcasing ethnic wear to beautiful crafts from silks,
handloom cotton, endi to terracotta, bamboo, jute and much more. From a single shop,
Aarong has grown into one of Bangladeshs biggest retail chains, with eight stores spread
across the major metropolitan areas of the country in Dhaka, Chittagong, Khulna and Shylet
and one in London, UK.

A Fair Trade Organization


Aarong symbolizes fairness in the global village. The organization has identified three basic
constraints for gainful employment of the low income and marginalized people in the rural
areas: lack of working capital, marketing support and opportunity for skills development. In
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order to bridge these gaps, Aarong provides a wide range of services to its workers and
suppliers:

Spot payment on product delivery to encourage efficiency and productivity


Reach out to producers in remote areas to ensure fair value for their efforts
Marketing communication and information for artisans
Advances against purchase orders where necessary
Training & Education in skills development to raise product quality and marketability
Product Design and Support in Product Development
Quality Control to increase producer awareness of the importance of quality

These values reflect fair trade principles which have been developed by registered Fair Trade
Organizations. Fair Trade is a trading partnership, based on dialogue, transparency and
respect that seek greater equity in international trade. It contributes to sustainable
development by offering better trading conditions to, and securing the rights of, marginalized
producers and workers especially in the South (IFAT).
BRAC and Aarong
The women Aarong employs are among the countries most disadvantaged. Through Aarong
they have been offered a way out of destitution and degradation where before they had none.
And the benefits that they receive extend well beyond simply the wages they earn for their
products, since every single woman who works in Aarong-owned production facilities is also
a beneficiary of BRACs multifaceted development programmes.
As a support entity of BRAC, a significant portion of Aarongs earnings go directly into
financing the NGOs development programmes in healthcare, education as well as economic
and social development.

4.4 Industry life cycle of Aarong


A pioneer in the country's craft industry, Aarong's unique product designs have brought
consumer attention back to crafts and materials indigenous to Bangladesh, as its designers
blend the traditional with the contemporary in a way that continues to win consumer appeal.
Its success revolutionized trends and virtually created the market that has now been taken up
by countless other boutiques and brands. Aarong caters to this growing urban consumer base
through outlets in every major city in the country.

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Their discerning style and high-quality craftsmanship make every Aarong product unique and
demand for them has been consistently rising due to Aarong's focus on innovation, quality,
value-based pricing and superior in-store customer service. All these elements, backed by a
robust distribution network and strong supply chain, have made Aarong a true household
brand in Bangladesh.
Just as Bangladeshis living abroad look to Aarong for products that connect them to their
heritage, the Aarong experience is an essential part of any trip to Bangladesh by foreign
visitors - a phenomenon chronicled in the "Lonely Planet" guide to Bangladesh. Aarong
products are not only the gift items of choice for every occasion for local and expatriate
Bangladeshis but also the quintessential cultural mementos for these visitors.
Aarong's growing presence outside Bangladesh - through fair-trade networks in Europe as
well as a retail franchise in London - continues to broaden the market for Bangladeshi craft
globally.

Figure 2: Industry life cycle of Aarong

4.5 Values of Aarong


Innovation
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BRAC-Aarong has been an innovator in the creation of opportunities for the poor to lift
themselves out of poverty. We value creativity in programme design and strive to display
global leadership in groundbreaking development initiatives.
Integrity
BRAC-Aarong value of transparency and accountability in all professional work with clear
policies and procedures while displaying the most level of honesty in our financial dealings.
We hold these to be the most essential elements of our work ethic.
Inclusiveness
BRAC-Aarong are committed to engaging, supporting and recognizing the value of all
members of society, regardless of race, religion, gender, nationality, ethnicity, age, physical or
mental ability, socioeconomic status and geography.
Effectiveness
BRAC-Aarong value efficiency and excellence in all our work, constantly challenging
ourselves to perform better, to meet and exceed programme targets, and to improve and
deepen the impact of our interventions.
Artisans
Holding steadfast to its original mission, Aarong today supports the lives and livelihoods of
nearly sixty five thousand rural artisans and handicraft producers, 85% of them are women.
More than forty thousand of these women work directly for Aarong in its 13 production
centers in Baniachong, Gorpara, Jamalpur, Jessore, Kushtia, Manikganj, Rajbari, Sherpur,
and Pabna, Pollobi, Kurigram, Nilphamary, Jhenaidah and 653 subcentres spread across
Bangladesh.
Twenty five thousand independent cooperative groups and traditional family-based artisans
also market their crafts through Aarong. Potters, Brass Workers, Jewellers, Jute workers,
Basket Weavers, Handloom Weavers, Silk Weavers, Wood Carvers, Leather workers and
various artisans with specialized skills from all over the country come to Aarong for
marketing and support services.

4.6 Current Scenario of Aarong


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Today, Aarong has grown into a thriving enterprise showcasing ethnic wear to beautiful crafts
from hand-woven silks, cotton, endi to terracotta, bamboo, jute, brass, leather and much
more. From a small initiative to protect the interest of a rural community, Aarong has grown
into one of Bangladesh's biggest retail chains, with 13 stores spread across the major
metropolitan areas of the country - in Dhaka, Chittagong, Comilla, Sylhet, Narayangonj and
Khulna. To compliment brick and mortar operations, an e-commerce website has launched to
reach global markets.
The brands reach has spread throughout the country as it operates 13 AAF centers (with
nearly 638 production and sub centers) and works with over a 800 artisan groups and
entrepreneurs while ensuring the livelihood of over 65,000 artisans and their families (80% of
whom are women), thus directly benefiting 320,000 people. In addition, through the profits it
generates and redistributes through BRACs development programs, Aarong benefits
hundreds of thousands more people as well as provides a service to consumers.
The brand generates a strong emotional connection and loyalty while bringing people
together to showcase the best that Bangladeshs highly skilled artisans have to offer. In
addition to Aarongs strong brand awareness and presence as the leading fashion house in
Bangladesh, a key point of differentiation is the department store level product range and
destination location status. Aarong is a one-stop shopping location from clothing to
household items, gifts and fashion accessories to childrens toys. Aarong outlets have unique
and convenient features such as parking areas and in-store cafes to round out the shopping
experience.

4.7 Characteristics of handicraft-based Retail Industry


Retail Industry: Small to huge store
The spectrum of Retail Industry is quite wide in nature. Retail serves consumers through a
small grocery store to a huge departmental store. Retail Industry is heavily dependent on
consumer spending. During economic slow-down consumer spending decreases and it poses
threat to the Retail industry. Consumers confidence is one of the key drivers of the industry.
Decline in Small Stores

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It is observed that small independently owned stores are gradually losing their foothold in the
market place. These stores are generally called Mom and Pop stores and they offer limited
merchandise to the consumer. These stores are facing stiff competition from the large fashion
house or superstores and in this process they are closing down their shutters. In many
locations the arrival of a superstore has forced nearby independents out of business. It is also
true that many small independent outlets still thrive by knowing their customers better and
providing them with more personalized service.
Internet and E-Commerce
Internet, the ubiquitous medium has opened a new avenue in front of the Retailers. It has
offered an opportunity to the consumers to shop from the home. As it stands today overall
Retail sales through internet may not be that significant but gradually it is gaining popularity
amongst consumers.
Repositioning of fashion houses
The appeal of big fashion house is in the wane and they are trying to reposition themselves.
They are repositioning their product lines to survive in this highly competitive market. For
example, a departmental store which is supplying general merchandise to the consumer is
changing them to a giant apparel store.
Rise in Discount stores
Discount stores offer money back guarantee, everyday low price etc. to lure customers. They
also provide floor help and easy access to the merchandise to facilitate the consumer. Aarong
comes under this category of Retail house. They give seasonal discounts in their retail house
or in other organization of BRAC.
Category Killers
There are Retailers who actually concentrate on one particular product category and grab a
lions share of that market and outperform their competitors. They are called Category
Killers. The handicraft based retail houses in Bangladesh follow these features. Like Rang
concentrates on colors of their product, Shada-Kalo symbolizes the black and white
combination of their product and Aarong categorize their product according to tradition and
culture of the country.
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These are the examples of such Retailers who have grabbed a major market share in that
product category and they have forced a reduction in the number of players in that product
segment. This is also a distinct trend observed in the current Retail market.
Demographic Changes
Retail industry is impacted by the demographic changes. As a result of this change taste of
the consumer is undergoing a change and it creates a demand for certain products. Worldwide
Retailers are keeping a close watch on this change and they are trying to realign themselves
with this change.
Mergers and Acquisitions
Retailers who want to dominate the market place have adopted the strategy of mergers and
acquisitions. This is also one of the distinct trends in Global Retail Industry today. Instead of
achieving an organic growth Retailers can grow significantly with the help of mergers and
acquisitions. This helps them to occupy more shelf space in the market place. As the volume
increases they are establishing better control over their suppliers and they are reducing the
procurement cost and in that way they are boosting their profitability.

Aarong Production Centre


The Ayesha Abed Foundation (AAF) is an organization that aims to provide avenues for
employment and income generation for underprivileged rural women. It is an enclave for
women, formed to uplift them economically, through their work as producers, and also
socially, through their development into entrepreneurs. The Foundation provides an
appropriate working environment, financial and technical assistance, and training to develop
the womens skills in various crafts.
The Foundation was established to commemorate the memory and work of late Mrs. Ayesha
Abed, a co-worker and wife of the Founder and Chairperson of BRAC. The work that is done
in the Foundation is a testament to her commitment to the issues of education, training and
employment opportunities for disadvantaged women. It was she who in 1976 initiated all the
present major activities of AAF in Manikgonj.

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The AAF aims to work with the most underprivileged women in the society. These women
are often the most neglected and are in need of much assistance and support. The AAF plays
the role of a facilitator. The women are placed in an enabling environment, with other women
of similar socio-economic backgrounds. They are trained and then given the opportunity to
generate income. One of the major challenges that these women have to face is that they are
marginalized and they, on their own, have no way of becoming part of the economic system.
This is where the AAF steps in, helping such marginalized women out of their peripheral
existence in society, and giving them the opportunity to become involved in sustainable
enterprise.
The AAF is closely interrelated with other programs, especially BRAC Development
Program (BDP) and Aarong. The women workers of the AAF come from the BDP organized
Village Organizations. Working at the AAF thus gives the women access to other BRAC
programs. All of the AAFs finished products are sold through Aarong, which additionally
provides designs, raw materials and financial support to the AAF. Since AAF supplies
exclusively to Aarong, it is treated as Aarong Production Centers.
Goals

Empowering destitute rural women by providing opportunities for employment and


income generation.

Ensuring commercial success of the enterprise of women producers.

Reviving traditional skills of rural artisans.

Services

Free Medical check-up including free eye treatment, eye-glasses and treatment costs
for severe illnesses

Advance wage payments for employees in need

Day care services

Workers retirement fund

WOMENS PRODUCTS

Traditional

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Western

Nightwear

Shawls/Scarves

Shoes

Bags

Fabrics

MENS PRODUCTS

Traditional

Executive Shirts

Maanja

Fotua

Short Kurta

T-shirts

Stoles/Shawls

Sandals

CHILDRENS PRODUCTS

Clothes

Toys

Books

Shoes

TEXTILE PRODUCTS

Bed

Table

Living

Kitchen

Kids

Rugs
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Fabrics

JEWELRY PRODUCTS

Gold (see Gold)

Silver

Pearl

LEATHER PRODUCTS

Shoes

Bags/Wallets

Belts

Boxes

Photo Frames

Office

BAMBOO/LEAF PRODUCTS
Living

Boxes

Photo Frames

Dry Decorative

CD Racks

Floor Mats

Dining

Mats

Napkin Holder

Trays

Place Mats

Coasters

TERRACOTTA PRODUCTS
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Decorative
Dining

Bowls and Platters

Dining ware

Glasses/Mugs

Hot Plates

Pitchers

4.8 SWOT Analysis of Aarong


SWOT analysis is a powerful technique for understanding organizations Strength &
Weakness and looking for the Opportunities & Threats it may face. Used in a business
context it helps organization carve a sustainable niche in a market. This analysis is mainly
based on an imaginary situation.
Strength
Aarong is a very reputed organization. They are now capturing 68% of total handicraft
market share in Bangladesh. Its a local brand and now exporting their products outside of the
country. Aarong has good reputation for fine quality products. It has a strong management
team who are continuously giving their great effort to make it a successful one. Another
important fact is that, Aarong has almost Zero production damage rate which reduces their
cost. They are innovative and always bring some new product in the market which meets
customer requirement and expectations. The organization is a respected employer that values
its workforce.
Weakness
Aarong has a reputation for new product development and creativity. However, they remain
vulnerable to the possibility that their producer may not be able to produce product timely
due to their inability. The collection channel of the organization is not that much structured so
that they can get the products from the producer on time and it may create problem for them
in future. If any producer is not able to make the product on time due to some personnel
problem then the company will also not be able to deliver their product on time.
This is a big problem and it happens most of the time on delivery. Aarong charges higher
price relatively than their other competitors as a result sometime customers lose their interest
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to by product from them. Its sales force or sales girls within the outlet are not properly trained
up. Sometimes they make customers disappointed by their attitude and customer doesnt feel
good to buy from there. Sometimes they suffer for financial problem, although its a rare
situation.
Opportunities
Aarong is very good at capturing the advantage of opportunities. It can go for new
distribution channel like it can make some joint venture with some other small Boutique and
sales its products in more places. Through that it can capture more market share in the
handicraft industry in Bangladesh. Aarong can expand its business globally. New market for
handicraft such as Europe and America are beginning to emerge.
People are now trendier about local events & functions like Pahela Falgun, Pahela Baisakh,
Victory day, Independence Day etc and they buy new and special products for these events.
Aarong can make new products to sell in those special occasions. According to the season
change, people are also changing their preference in buying products and considering this
scenario Aarong can produce products on the basis of seasonal variations.
Threats
Aarong doesnt have any big competitors right now. But they have some small competitors
like KayKraft, Anjans, Deshal, Jattra, Khubsurti, Rina Latif, OZ, Rang and some other
Boutiques established at Banani 11, who are taking their 32% customer and increasing in a
slow rate. Aarong always face price wars with their competitors. Its competitors have some
superior products like OGs Panjabi shape, Khubsurtis design of Salwar kamiz, Rangs
Sharis color, which is decreasing Aarongs market share as well as sales. But now they are
repositioning their Brand to compete with them.

4.09 Strategic Business Analysis of Aarong


Aarong has strong marketing team who are engaged with lot of work and activities under the
direction of head of marketing of Aarong. From the inception of Aarong they are engaged
with very thoughtful marketing and advertising to attract customers. Their dedicated
marketing team always tries to exhibit Aarong as the best brand in Bangladesh. The

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marketing team always prepared all kind of marketing materials like leaflet, brochure, annual
report and other kind of communication materials for Aarong outlets and for external use.
The main responsibility of Aarong marketing team is organizing photo shoot for product as
well for model. This is very important for Aarong and through this Aarong can communicate
with the customer. The photo shoot itself has a process in Aarong and it involves high level
engagement to get the right work. All kind of communication channel like billboard, website,
social media, electronic marketing are managed by the marketing department of Aarong. The
marketing department also has to liaise with other fashion house and maintain a warm
relationship with everybody. Aarong marketing team has carry out different consumer and
product survey in different places and makes report on that.
According to the market survey of marketing team of Aarong the retail department change
their product or service or introduce new product into the market. Actually to get the market
trend and idea Aarong depends on the activity of marketing team. All kind of marketing
materials are also archived in marketing department and they further use it if necessary.
Publicity and advertising two important matters are totally controlled by the marketing
department and by this marketing department became the heart of the Aarong.
We think about Aarong we always believe that they are the truly local brand of Bangladesh
and they maintain the superior product quality and have very rich in collection and designs. It
is the marketing department who are actually behind the scene to achieve this big
achievement. Manage customer relationship is one of the biggest thing for Aarong marketing
and they have to also retain this customer and convert it to sales as after the day sales is the
biggest thing and which can show the sign of doing good or bad.

4.10 Qualitative Differentiation Strategy


Qualitative differentiation strategy is characterized by the creation of a product/service which
will be perceived as unique by the customers. This is achieved through design or brand
image, superior technology, great customer service or diversified distribution network. This
strategy does not allow for ignoring the incurred costs, but they are not the primary strategic
objective. Aarong introduced different features in men and women wears like taaga, Jamdani
Sari, Khaki Punjabi, Pakistani Luann and such product.

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Qualitative differentiation is a viable strategy for achieving above than average returns
because it creates a defensible position for coping with competitive forces. Differentiation
provides protection from competitors in a sense that consumer brand loyalty makes the firm
less sensitive to changes in price. This increases the profit margin and avoids the need for
setting up a low-cost position in the market. Consumer loyalty and competitors need to fight
the uniqueness of the firm provide entry barriers to potential entrants.
Focus strategy
This strategy focuses on specific groups of customers, a segment of a product line or
geographic markets. The goal is to apply one the two strategies above, but by focusing on
serving specifically targeted areas or niche markets. The strategy rests on the assumption that
the firm is in a better position to serve a narrow, strategically vital area of the market. As a
result, the firm achieves qualitative differentiation through better solutions for the needs of
specific targeted areas, or lower costs in serving these areas. Aarong also differentiates its
market in all segments like men, women, children, foreigners and all generation people.
Cost leadership strategy
Aarong is a firm that chose the cost leadership strategy aims to lower its production costs by
implementing cost reduction through experience, constant cost control, cost reduction in the
areas of research and development, advertising, promotion, etc. Having relatively lower costs
than competitors becomes the goal of the strategy, although quality of services and other
areas must not be ignored.
Aarong concentrates its quality and features, and follow the promotional Activities like
sponsors on fashion shows, online advertisement, exhibitions to retain its market position in
the industry. In the twentieth century firms have realized the cost leadership strategy through
mass production, mass distribution and economies of scale (experience curve). In the twentyfirst century, however, the focus of managers switches to lean production, restructuring of
the organization and outsourcing. Companies are therefore engaged only in those activities
which bring them distinct cost advantages, and the rest is being outsourced.
Competitors Analysis of Aarong

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Competitor analysis in marketing is an assessment of the strengths and weaknesses of current


and potential competitors. This analysis provides both an offensive and defensive strategic
context through which to identify opportunities and threats. Competitor profiling coalesces all
of the relevant sources of competitor analysis into one framework in the support of efficient
and effective strategy formulation, implementation, monitoring and adjustment.
Aarong has its own version of the competitive analysis and its function is clear: to line up
your product with other products and show where yours falls short and where yours is
superior. Each industry brings a different spin to this old favorite and user experience design
has its own set of criteria by which to judge competitors.
From the above diagram it is seen that Aarong has competitive advantage over its competitors
on almost every factors. Only few companies have ability to chase some sort of advantage
like Aarong. Such as Rina Latifs product features, qualities and innovativeness, Kay-Kraft
and Anjans supplier, Rangs color and Khubsoortis cost.

CHAPTER-FIVE
CONCLUSION
5.1 Observations
From the beginning, Aarong is a fair trade organization dedicated to bring about positive
changes in the lives of disadvantaged artisans and underprivileged rural women by reviving
and promoting their skills and craft. Reaching out to weavers, potters, brass workers,
jewelers, jute workers, basket weavers, wood carvers, leather workers and more, Aarong
embraces and nurtures a diverse representation of 65,000 artisans, 85% of whom are women.
Today, Aarong has become the foundation upon which independent cooperative groups and
family-based artisans market their craft, in an effort to position the nations handicraft
industry on a world platform of appreciation and acknowledgement.
As a support entity of BRAC, a significant portion of Aarong earnings go directly into
financing the NGOs development programs in healthcare, education as well as economic and
social development. Aarong symbolizes fairness in the global village. The organization has
identified three basic constraints for gainful employment of the low income and marginalized
people in the rural areas: lack of working capital, marketing support and opportunity for skills
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development. In order to bridge these gaps, Aarong provides a wide range of services to its
workers and suppliers:

Spot payment on product delivery to encourage efficiency and productivity

Reach out to producers in remote areas to ensure fair value for their efforts

Marketing communication and information for artisans

Advances against purchase orders where necessary

Training & Education in skills development to raise product quality and marketability

Product Design and Support in Product Development

Quality Control to increase producer awareness of the importance of quality

5.2 Recommendations
Last of all I want to say that, I feel very proud that to did internship program in Aarong centre. As my
own personal view the Aarong marketing team is very much active, dedicated toward work, very
innovative with marketing staff. The marketing team always tries to adopt a new strategy so that they
established that, they are unique compare the other local brands strategy. Aarong discovers different

needs and groups in the market place, target those needs and groups that it can satisfy in the
superior way and then position its offerings, so that the target market recognize the
enterprises distinctive offerings and image. Aarong is constantly working to improve its
products quality through comparative study and customer feedback in order to maintain
competitive edge. However, finally in this report there are some suggestions and
recommendations for making better strategy and removing lacking. In these situations I
recommend some to go ahead in fashion sector:
1. Government should mostly contribute in this sector.
2. Establish fashion institute.
3. Arrange fashion competition in between the country.
4. Invite foreigner; etc.

Bibliography
References
1. The Balanced Scorecard: Translating Strategy into Action (Hardcover) by Robert S.
Kaplan (shelved 3 times as strategic-management)
2. Strategic management ( Hardcore) by John A. Pearce II (shelved 2 times as strategicmanagement)
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Websites
1.
2.
3.
4.
5.
6.
7.
8.

www.aarong.com/bd
www.assaignmentpoint.com
www.studymore.com
www.studyline.com
www.scibd.com
www.assignment_help.com
www.slideshare.com
Businessnewsbd24.com

Search Engine
1. www.google.com
2. www.ask.com
3. www.bing .com

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