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Introduction
A business is market oriented when its culture is systematically and entirely committed to
the continuous creation of superior customer value. Market orientation always commences
from the information made by virtue of customers, competitors and market. Based on such
information the company performs coordinated actions, to create superior customer value.
Market orientation is the extent to which customer focus is implemented in key
organizational leverages. A market-oriented organization RBL recognizes the importance
of understanding its competition as well as the customer: The key questions of RBL
management are which competitors, and what technologies, and whether target customers
perceive them as alternate satisfiers. The key to become a market-oriented and customer-
oriented company is to understand the market and develop MDS. All of these deeply need
the information concerning customer, competitor and market. Hence, the whole information
can be observed from business view as:
• Determining how to deliver superior customer value
• Taking action to provide value to the customer
The measurement of MDS used two instruments, namely: Balanced score card (to measure
customer, learning and growth) and Internal Business Process (includes measuring financial
performance). In order to become a market-oriented company, such company must be
involved and has full support to the entire work. This means, the company must monitor
rapidly the changes against the customer's needs and desires. Such as determining the
impact of the changes to the customer's satisfaction, improve product innovation, and
implement strategy that could develop superiority of the company in order to compete.
Rahimafrooz
Rahimafrooz is one of the respected and reputed business houses in Bangladesh. It has just
crossed 50 years of operation. Rahimafrooz has endured turbulences of the last 50 years and
has been able to transform itself from a small trading company into a leading diversified
business house. This is, indeed, a milestone, which Rahimafrooz has achieved with trust,
support and dedication of all stakeholders, past and present, most importantly, its
customers. Rahimafrooz began its operation as a trading company in 1954. Today
Rahimafrooz has diversified in many areas from storage power solution to automotive
aftermarket to retailing.
Rahimafrooz operates in three broad domains: automotive after market, power and energy,
and retail chain. It sells tyres, batteries, lubricants, emergency power products, diesel as
well as gas generators, lighting products, electrical accessories, solar systems, energy
solutions using compressed natural gas, and power rectifiers. The Group also runs 'Agora'
the first retail chain in Bangladesh. The Group’s portfolio includes international tyre brands
Dunlop and Kenda, and its own brand RZ Tyre. Rahimafrooz is the exclusive franchisee of
the full range of world’s leading lubricant brand Castrol in Bangladesh.
Through Rahimafrooz IPS, UPS and Voltage Stabiliser, the Company enjoys clear
leadership of the emergency power products market. The Company brings to Bangladesh
leading gas and diesel generator brands – Pramac as well as Mitsubishi. It also markets
home and industrial lighting products from General Electric USA (GE) and electrical
accessories from Hager France. Rahimafrooz’s Renewable Energy division has been
providing Solar solutions in collaboration with British Petroleum (BP). The Company, in
recognition of its solar efforts, received the McGraw-Hill Platt Global Energy Award in
2004 and the Global Ashden Award in 2006. Rahimafrooz also offers comprehensive
solution provider for CNG refuelling, conversion, conversion centres, and maintenance.
Rahimafrooz is also endeavouring into tyre retread, besides manufacturing and marketing
emery cloths and abrasive papers. In a joint venture, the Group has enterprised into the first
ever fibre optical commercial networking backbone in Bangladesh in the form of Metronet
Bangladesh Ltd. (MBL).
Rahimafrooz, in 2001, made a breakthrough in the urban lifestyles by launching the first
retail chain in the country – Agora. One of the SBUs of Rahiamfrooz Group, Rahimafrooz
Renewable Energy Ltd. distributes solar home systems to underdeveloped rural regions of
Bangladesh. For that, the company received the Ashden Award for Sustainable
Energy in 2006. The Group has strengthened its market leadership at home while reaching
out to international markets. Ranging from automotive after market products, energy and
power solutions, to a world class retail chain – the committed team at Rahimafrooz is
determined to ensure best in class quality standards and living the Group’s four core values
• Integrity,
• Excellence,
• Customer Delight and
• Innovation.
VISION
Be an enterprising Group of Taka 2,000 crore by the year 2010 with a diversified business
portfolio focused on dynamic growth, excellence, innovation, customer delight in enriching
our world.
QUALITY POLICY
Rahimafrooz as a team are totally committed to customer delight through intelligent effort
and continuous improvement.
ASPIRATION
To be the most admired and trusted organization through excelling in everything
Rahimafrooz do, following ethical business practices and adding value to stakeholders.
VALUES
• Integrity in all their dealings
• Excellence in everything they do
• Total commitment to customer satisfaction
• Thinking ahead and taking new initiatives
TEAM
Rahimafrooz foster en environment of learning and reward, taking pride in who they are
and what they do.
OUR COMMUNITY
Rahimafrooz strongly believes that doing good business means being good corporate
citizen. The company always takes pride in serving the stakeholders and community in
multifaceted ways.
Environment
Environment Management System (EMS): They have taken comprehensive measures to
protect environment, complying not only to local requirements but also with ISO 14001.
01. Rahimafrooz Batteries Produces all kinds of automotive and industrial batteries
Limited and one of the largest battery manufacturers in the
SAARC region; exports batteries in more than 19
countries
02. Rahimafrooz Distribution Maintains nationwide distribution network with more
Limited than 400 outlets covering entire Bangladesh; distributes
mainly automotive and appliance battery, tyre, IPS, UPS
and lubricants.
03. Rahimafrooz Superstores Emerges as leading chain superstore in Bangladesh,
Limited mainly covering Dhaka Metropolitan City area; carries
more than 25,000 varieties of product.
04. Rahimafrooz CNG Limited Involves in setting up CNG stations; facilitates
establishing CNG conversion centers; converts
automobiles into CNG and provides technical solution
and support.
05. Rahimafrooz Energy Provides uninterrupted and clean power and a fast
Services Limited growing power services company; establishes with
objective to meet country's growing demand for power
06. Excel Retread Limited Retreads all types of tyres from cars to buses/trucks; one
of the leading tyre retread centers
Others
Brands
The company has been serving this market for the past fifty years by introducing innovative
products. Rahimafrooz Batteries Limited (RBL) is one of the key players in South Asia in
its field and one of the largest battery manufacturers in the SAARC region; With undisputed
market leadership at home, exports batteries in more than 35 countries in Asia, Middle East,
Africa & South America. The Company has embarked upon an aggressive growth plan that
includes becoming a significant global player in the international battery market.
Vision 2010:
To be one of the top two storage power companies in SAARC by the year 2010
Brands
• Lucas
• Optus
• Rahimafrooz
• Spark
• Volta
Plant Capacity:
Rahimafrooz has state of the art manufacturing plant. It is equipped with all latest
technologies with complete air treatment and lead-recycling management. RBL produces
different types of batteries to meet the local and international market. Its capacity in
Automotive Battery is 660,000 (N50) units per annum and Industrial Battery is 41 million
AH/annum. By the end of 2008 production capacity of Industrial Battery will be increase to
120 Million AH. All the products are manufactured under strict quality control and ensured
by international certifications.
Collaboration Agreements
It has different technical collaboration agreements with Lucas Battery Company, U.K,
Technical support Group (TSG), Hawker Batteries, UK, Invensys, UK, Hawker Batteries,
UK, Eltek – Norway, AEES – France to ensure the quality of battery.
SBU's Contribution to Group Sales
9%
6% 27%
Battery
18% Contribution
40%
Rahimafrooz Batterie s Rahimafrooz Distribution
Rahimafrooz Superstores Rahimafrooz Energy Se rvices
Other Units
Battery Production
Battery Production
4%
9%
85%
2%
Sales of Battery
Sales of Battery
45%
55%
Market Overview
Automobile Battery is primarily responsible for electrical energy to the electric motor and
the ignition system of an automobile. They are mainly the lead-acid accumulators and are
known to provide a potential difference of 12.6 Volts. Mostly these Automobile Batteries
do not require any form of maintenance much unlike other car accessories. The competitive
nature of the automobile industry has prompted the companies to take up new and
innovative marketing strategies to thwart the competition. As consumers demand ever more
sophisticated and feature-loaded vehicles, the global automotive industry faces growing
challenges to balance these expectations with space constraints and weight concerns. Every
component receives scrutiny to determine if it can be made smaller and lighter to promote
fuel efficiency and performance and help fit more content into the available space. In
addition, vehicle manufacturers and suppliers must increasingly consider environmental
concerns such as recyclability, as well as overall performance. Electrical loads in vehicles
today are growing every year resulting in consequent increases in cable harness, power
distribution box, relay, and switch ratings, as well as costs.
In the context of saturated local market, hunger for growth and creating new avenues RBL
entered into the phase of export as the pioneer in 1992. Since then it has been expanding its
export market with an export volume growth of 80% annually. So far RBL has exported
more than one million units. RBL’s first importer was Chloride, Singapore. In 1994 RBL
started exporting to Pakistan and at the same time provided technical assistance to set up a
battery factory in Pakistan. The export continued till the factory became operational in
1997. In 1997 RBL started exporting to India. Within very short period it had organized an
extensive marketing network covering the entire country having 8 distributors and 450
dealers. By 1997 it covered all the SAARC countries except Maldives. RBL is exporting to
18 countries among which India, Sirlanka, Singapore, Nepal, Bhutan, Thailand, UAE,
Kuwait, Lebanon, Afghanistan, Madagascar are regular importing countries.
RBL is continuing its journey of export with excellence through stringent Quality Control,
Quality Management & Environment Management System. All the companies as a part of
their marketing strategy offers a range of vehicles in all the segment to make sure that the
customer is driving one of their vehicles only..
Market Size
The total Indian battery market is estimated at close to Tk. 170 crores. Out of this the
industrial battery market is estimated at around Tk. 60 crores which includes the VRLA
(valve regulated lead acid) battery market, which is estimated at around Tk. 50crores in the
current year. The power and UPS industries are other key user segments. The automotive
battery business is estimated at around Tk. 100 crores. Conclusive industry data on
SARRC is not available. To best estimate, the market share of the SAARC is about 35%
for automobile batteries and around 25% for industrial batteries.
Product Overview
Rahimafrooz markets three major brands of automotive batteries: LUCAS, VOLTA and
SPARK. All the batteries are produced under strict quality controlled plant of the
Rahimafrooz Batteries Ltd. It has introduced new brand SPARK for the taxi cab. This
specially designed to take the load and frequency of the taxi cab.
Lucas Automotive Dry Charge Battery:
• 12 Volt Battery
• German Drive Range
• Heavy Duty Range
• 6 Volt Batteries
• Lucas PCM
• Deep Cycle
• Electric Car Battery
• IPB Battery
• Standby Stationary
• Traction
• Long life
• Minimum maintenance
• Low internal resistance
Special Features:
• Excellent cycling ability provides high reliability and exceptionally long life
• Large electrolyte reservoir means high tolerance to water loss and minimal
maintenance.
• High charging efficiency
• Low self discharge, dry pre-charged plates
• Robust, clear case and rugged construction ensures mechanical durability
The quality, dependability, reliability and long service life of thicker Flat Plate deep cycle
batteries are the result of balanced design of the plates, separators and incorporation of
latest technical developments in lead acid battery technology.
Strategic Targeting
The target market is a group of customers to whom the company aims its marketing effort.
The target market of the RBL is automobile users and industries like telecommunication,
power station, railway system, electric vehicle, forklift, ship, buoy lighting and solar power
system and household for IPS and UPS battery. Targeting broad groups of buyers within a
specific product/market, such as automobiles. Consider, for example, the global market for
automobiles. In 2003 the sales of the Chevrolet Impala model were 1.5 million units; in
2005 Carolla best-selling model had sales of about 300,000 units. y considering auto mobile
markets, RBL segmented their market and develop products like Locus. The fragmentation
of needs and wants in markets is creating subgroups of buyers within the total market, each
displaying different customer satisfaction requirements. Such differentiation provides an
opportunity for businesses to design product offerings to meet the needs of customers in
different market segments.
Targeting all people and also organizations in a market is not a typical strategy for RBL.
Instead, many target one or more segments within the total market. Deciding what people
(or organizations) to target is a critically important strategic decision. Rahimafrooz Batteries
Limited introduced a latest technology battery ‘Volta Maintenance Free Battery’
manufactured at the company’s own plant by using lead and calcium in the expanded metal
technology. The products range are –– NS40ZL for 1300 to 1500 CC vehicles, NS60L for
1500 to 2000 CC vehicles, N50Z for 2000 to 2500 CC vehicles, NS70 for 2500 to 3000 CC
vehicles and NX 120-7 for 3000 to 3500 CC vehicles. The price ranges between Tk 3769.71
and Tk 7109.06, depending on the type of the battery. The customers need not wait for acid
addition while purchasing this battery. This high quality products and services are important
influences on customer satisfaction of RBL. Continuous improvement of existing products
and the introduction of new products facilitate RBL to gaining sustainable competitive
advantage in the market. The market place will demand customized products and immediate
delivery. These force managers to make swift product design and marketing decisions.
Strengths:
• Excellent cycling ability
• high reliability and exceptionally long life
• Large electrolyte reservoir
• high tolerance to water loss and minimal maintenance
• High charging efficiency
• Low self discharge, dry pre-charged plates
• High rate of discharge performance
• High resistance to adverse mechanical and electrical condition
Weaknesses:
• Expensive than other competitors’ brand
• Low self discharge
Opportunities:
• Evolution into a "Plug-in Hybrid" with higher capacity batteries and a drive train
designed to operate for extended periods in electric-only mode.
• spread into other market sectors
• Increasing awareness of environmental issues likely to keep demand high.
• licensing of technology to other manufacturers
Threats:
• Increasing Global Competition
• Low price batteries offered by China
• Increasing raw materials price
• Anti-dumping
• Pressures of environment groups
Competitor Analysis
RBL is market leadership in automotive batteries in Bangladesh. Present RBL owes 73%
market share in batteries market. Their most profitable product’s is Locus and Volta.
Besides RBL, there are 10 other competitors who are serving same markets and only
capturing a minimum market share in Bangladesh.
Battery Market Share (%)
1%1% 5%
3%
2%
7%
3%
4%
74%
Strategic Policies
Innovative: RBL always find creative means to achieve their desired results, while
building on the experiences of others.
Leaders: RBL aggressively in the forefront of economic development for thir target
markets; others will use their success to measure own.
Renewals and Growth: RBL focus our efforts and incorporate values into actions that
contribute to a positive, effective and sustainable economic transformation in the Region.
Enterprising People: RBL find, embrace and support the efforts of customers,
suppliers and employees who are motivated to undertake new or risky paths that result in
personal and company growth.
Enterprising Businesses: RBL attract and engage companies willing to change and
take risk to achieve sustainable growth, thereby providing increased employment and
wealth to the Region.
The Region: RBL will serve the broad geographic area rather than Bangladesh.
Market Driven: RBL listens carefully to customers, suppliers, end users and
employees in order to ensure superior quality products in the market.
Action Oriented: RBL will always have a sense of urgency in addressing important
matters.
Results Focused: RBL allocates resources on the basis of expected Mission impact.
Learn and Grow: RBL ensure that cross-functional teams and dedicated employee
provide superior customer and maintenance services along with their core products like
battery which help them to continuous growth of the company and close to customers to
learn their needs
Achieve: RBL set realistic expectations that can be accomplished both individually and
by the team, and hold ourselves accountable for our results. We will recognize and celebrate
our success and regard failures as learning opportunities.
“Open Communication”: RBL keep people informed listen to them carefully and
encourage everyone else to do the same.
Customers: RBL is vigilant in their efforts to advance the best interest of the people
who seek their products and services and delivers outstanding services with high quality
products
“Integrity”: We will be reliable, honest and honorable; people we deal with may count
on our word being good and our commitments being met.
Strategies
1. Build a support system that will enable the successful execution of resources to innovate
superior products.
2. Develop production process based on the strategic plan implementation requirements;
3. Develop cross-functional team to support implementation of the strategic plan.
4. Develop a performance measures tool
5. Ensure their employee have the training, experience and tools to carry out their
responsibilities; fine tune the organizational structure to be sure it fits strategy at all times;
outline clear reporting relationships; develop clear internal job descriptions including
performance expectations.
6. Develop a process for continual feedback on progress from the market and periodic
assessment and revision of their marketing strategy and plans.
Set the planning horizon RBL established a five year time frame for the plan.
Survey the environment RBL identified the major and minor political, economic,
technological and social factors which can influence our success.
Evaluate the competition RBL identified the important competitors and assessed their
strengths, weaknesses and game plans.
Evaluate ourselves RBL took a good look at our own strengths, weaknesses, culture
and values. We outlined the expectations of our employers, and owners also.
Define the mission Considering the environment and the competition, RBL own
limitation and capabilities, we developed a mission statement which defines what kind of
organization we want to be, and how we want to achieve our target
Set strategic policies RBL established policies and decision rules which further define
and delineate our mission, and which provide guidelines for always operating in harmony
with our mission.
Develop Strategies RBL devised general courses of action to accomplish our objectives
in a timely manner.
Prepare action plans RBL developed a number of specific and detailed action plans
with timelines and accountability in order to enable us to carry out our strategies and meet
our objectives.
How RBL Become Market Leader?
To become leader and customer oriented organization, Rahimafrooz Batteries
Limited (RBL) if following the philosophy:
Integrity
Honest, fair and impartial to all. – e. g. Delivering on promises to external and internal
customers.
Excellence
Self discipline, personal responsibility, overall commitment e.g. (a) Taking personal
responsibility for delivering the results as planned. e.g. (b) Finding and implementing new
or improved solution.
2. RESULT ORIENTED
3. TEAM BUILDER
Empathic, Compassionate. e.g. (a) Receptive to ideas, complaints, feedback of others and
adding positive suggestions (b) Actively coaching team members for their development.
4. RECEPTIVE TO CHANGE
E.g. deriving maximum benefit from the new style of supportive training programs rather
than the previous directive style of training.
5. VISIONARY
Recognizing the qualities & skills required to aspire to the company’s vision e.g.
Constantly benchmarking themselves to fulfill aspirations.
6. ENTREPRENEURIAL
Proactive, risk-taking, Self-starter, innovative, confident e.g. Constantly strive to improve
knowledge of company & work area, using this to make good, innovative and proactive
decisions.
Rahimafrooz Batteries Limited (RBL) pursues a model which drives them to the market
orientation. This model is illustrted below:
Strategic deployment
Internal integration
Knowledge management
Customer focus Market Orientation
Organizational infrastructure
Customer interface
Organizational culture
RBL follows a model consists of six dimensions representing key organizational leverages -
through which customer focus is implemented. Market (customer) orientation is therefore
not a separate dimension, but is reflected in all organizational leverages. The first dimension
of the model is strategic deployment. Discrete strategic leverage is important organization-
wide orientation of RBL because it concerns top management factors (barriers), the strategy
building process and necessary resources. RBL considers strategic deployment as a first
leverage. Through this leverage, market orientation should be manifested as a visible senior
management commitment, as the presence of it in the RBL’s mission, as alignment with
business strategy and as provision of adequate resources.
The second dimension of the model is internal integration leverage. RBL focus focus on
internal environment and intra-functional coordination. Under this dimension, RBL
coordinated utilization of company (capital and human) resources and full departmental
alignment and balancing internal orientation with external. Internal integration leverage is
implemented in RBL through activities leading to efficient and satisfied employees such as
training, internal communications, empowering, motivating, rewarding, but also through
internal quality management and efficient inter-departmental cooperation.
The third dimension of the model is market knowledge management. RBL emphasis on
information handling (analysis, generating, disseminating) and additional activities like
interpretation and use of marketing knowledge. RBL more focused on learning as a form of
information generating where all important information for marketing decisionsand also
balanced metrics of market performance.
The fifth distinctive dimension of the model is customer interface design. AS a market
oriented organization, RBL always close contacts with customers.They believes that the
importance of the interaction with the customers also lies in the fact that a customer’s value
is largely produced during their interaction with employees, other customers and
organizational systems. Therefore, frontline communication and interaction points with
customers should be managed as a coherent whole. As market orientation is concerned with
sources of customer value, customer interface design should therefore be one of its key
leverages. Customer interface is a relatively independent organizational entity and it
requires distinctive management emphasis and operationalized as the extent of
customization, fulfilment of expectations, management of emotional, social, technological
and environmental elements of interaction, but also through long term, relationship
impacting activities.
Finally, organizational culture is the sixth dimension of the success of RBL. Organizational
culture is an important factor of driving RBL as an market oriented organization in this field
which encompasses tangible elements such as behaviours and artefacts, and intangible
elements, such as values, beliefs and norms. Customer orientation as a set of beliefs which
puts customer interests first. RBL focuses greatly on customer needs information which are
more deeply rooted values and beliefs that are likely to support customer focus and
permeate the RBL.
CUSTOMER FOCUS
RBL are focusing on customers. Getting closer to the customer, Rahimafrooz associates
directly with distributors, retailers and also buyers to know what drives customer
satisfaction, identify customer needs, and use those needs to target markets where the
business can achieve a sustainable and significant competitive advantage in this field. RBL
understands customers’ preferences and requirement and offering superior value products.
RBL develops a centralized Customer Feedback & Query (CFQ) CELL. “Total
commitment to customer satisfaction” is one of their values. Listening to what customers
say in a continual systematic way is a key tool to comprehend their needs and requirements
and to satisfy them achieving excellence in their products and services accordingly.
All individuals of Rahimafrooz Group interact with customers and members of the
public everyday and do hear, receive, or learn about their comments, complaints, views, etc
on the products, services, and dealings of the company.
A systematic and organized way of managing these feedbacks and queries will surely
strengthen their total commitment to customer satisfaction.
Customer Satisfaction and RBL
Rahimafrooz Batteries Limited is customer-driven firms who are constantly monitoring and
analyzing customer satisfaction. A key objective is identifying the product/service attributes
that influence customer satisfaction. Rahimafrooz Batteries Limited successfully competed
with others global competitors in Asia by designing durable and quality batteries to meet
specific users' requirements. Rahimafrooz targets specific customer groups. The company is
very service oriented and quick to respond to customer needs.
INFORMATION ACQUISITION
We consider RBL as a market-oriented company because it completely understands its
markets and the people buy its products or services. Gaining these-
RBL is gathering proactive information and analysis and they have a wealth of
information is available in company records, information systems, and employees.
A key part of information acquisition, RBL is learning from experience where they
encourage open-minded inquiry, widespread information dissemination, and the use of
mutually informed managers’ visions about the current market and how it is likely to
change in the future.
COMPETITOR INTELLIGENCE
A market-oriented organization RBL recognizes the importance of understanding its
competition as well as the customer.
The key questions of RBL management are which competitors, and what technologies,
and whether target customers perceive them as alternate satisfiers.
RBL believe superior value requires that the seller identify and understand the principal
competitors’ short-term strengths and weaknesses and long term capabilities and strategies
which make the RBL market leader in the market.
CROSS-FUNCTIONAL COORDINATION
RBL is getting all business functions effectively to work together to provide superior
customer value. They are successful in removing the walls between business functions—
marketing talks with manufacturing and finance.
RBL build a Cross-functional teamwork guides the entire organization toward providing
superior customer value. RBL are focusing on improving internal efficiencies.
RBL has set in motion the process of assessing their current business processes using an
"Integrated Business Planning" model called MRPII. This is expected to coordinate and
bring continuous improvement and alignment between sales, marketing, manufacturing,
business planning, forecasting, financial planning, and HR planning.
RBL pursues an approach named THE DEEP DIVING APPROACH which continually
swimming around looking for new clients, customers, solutions, best practices, they could
work within the group and gradually built it up.
RBL can choose to build up a Rahimafrooz Group wide community of like-minded
marketing individuals. By continually benchmarking and evaluating themselves, RBL
create a group of intensely committed and steadfast marketers.The objectives are:
• Exchange Knowledge of Best practices
• Complement the Strategic Planning Process
• Cultivating the Group wide Marketers' community
• Having the Common purpose, aligned goal
• Create an identity and sense of bonding
• Interact Online and offline
RBL makes an effective cross-functional team which help the management to take
decision and also making facilitates diagnosis and coordinated action.
To introduce a new battery all business functions of RBL work together toward a
common purpose. For this, RBL is making major changes in the culture, processes, and
structure of the traditional pyramid-type organization. For example, RBL has been
strengthened with a new management team, and new outlet planning is underway.
One strategic policy of RBL is Open Communication where RBL keep people informed
listen to them carefully and encourage everyone else to do the same.
RBL are focusing on people development. RBL introduced the Balanced Scorecard
(BSc), a strategic management tool developed by Kaplan & Norton to adapt this model to
sustain their future growth. It is a tool to monitor and measure Strategic Initiative
implementation encompassing four essential perspectives:-
• Financial,
• Customer,
• Internal Process, and
• People.
RBL already have identified their Strategies, Objectives and Measures consistent with
Vision 2010. At the same time they developed an appropriate BSc Dashboard software in-
house.
A number of senior level promotions have been approved. A group-wide and SBU
specific training and development plan has been finalized for the next 6 months. A group-
wide salary and benefits review is being done, and the Board Compensation Committee
review that in the coming months which give an important competitive advantage in
providing superior customer value and achieving superior performance.
Core Competence
Core competencies are the most significant value-creating skills within the corporation and
key areas of expertise which are distinctive to the company and critical to the company's
long term growth. RBL's core competencies are they are offering better quality and durable
batteries than competitors in the Bangladesh and also other countries like India.
Sustainable Competitive Advantage
Sustainable competitive advantage allows the maintenance and improvement of the
enterprise's competitive position in the market. It is an advantage that enables business to
survive against its competition over a long period of time. The opportunity for Rahimafrooz
to sustain its competitive advantage is determined by its capabilities of two kinds –
distinctive capabilities and reproducible capabilities - and their unique combination to
create superior customer value. They are focusing on strengthening our core business. New
investments in core businesses include RBL's expansion of capacity. RBL is investing in
expansion of its nationwide distribution network. To make UBC (used battery collection) a
success, greater teamwork is working among the concerned SBUs and the
dealers/distributors which give a competitive advantage. RBL are focusing on improving
financial management. For this, they introduced the Balanced Scorecard to measure
financial performace and ascertain optimal mechanisms for a group procurement policy,
potentially leading to centralized procurement. The Rahimafrooz Financial Leadership
Team (FLT) is attempting to cut operating costs by 20% against budget with the same top
line target by eliminating unnecessary expenses.
RBL are focusing on improving internal efficiencies. They have set in motion the process
of assessing their current business processes using an "Integrated Business Planning" model
called MRPII. This is expected to coordinate and bring continuous improvement and
alignment between sales, marketing, manufacturing, business planning, forecasting,
financial planning, and HR planning. Recently, RBL kicked off the group-wide QMS
process to build process focus both at RBL and at all SBUs. Various IT system
enhancements are being planned by GITC.
DISTINCTIVE CAPABILITIES
The ‘resource-based view of the firm’ has seen an increased emphasis on competing on
‘capabilities’, both tangible and intangible. ‘Capabilities’ have been defined as: complex
bundles of skills and collective learning, exercised through organizational processes that
ensure superior coordination of functional activities. Distinctive capabilities are the basis of
company’s competitive advantage. According to the new resource-based view of the
company, sustainable competitive advantage is achieved by continuously developing
existing and creating new resources and capabilities in response to rapidly changing market
conditions. Among these resources and capabilities, knowledge represents the most
important value-creating asset. Distinctive capabilities of RBL are:
Recourses
Capabilities
Strong Brands
Rahimafrooz is a strong brand in our business arena. They are also able to establish separate
brands for products like Lucas. Under Rahimafrooz corporate umbrella, they already
establish some other SBU’s successful like Rahimafrooz CNG Ltd.
Financial Capabilities
RBL are focusing on improving financial management. The Rahimafrooz Financial
Leadership Team (FLT) is attempting to cut operating costs by 20% against budget with the
same top line target by eliminating unnecessary expenses. They have financial resources by
which they are entering new markets, expanding their business and acquiring new
technologies. Rahimafrooz Group achieves and sustains continuous growth for more than 6
years - at a "natural" rate of 26% per annum.
Marketing Capabilities
Rahimafrooz has own distribution networks named Rahimafrooz Distribution Limited (RDL)
involves in the marketing and distribution of a wide range of products through its nation-
wide distribution network. RDL markets three major brands of automotive batteries:
LUCAS, VOLTA, VOLTA MF (Maintenance Free) and SPARK in Bangladesh. The strong
distribution networks make the RBL market leader in this market.
Organizational Culture:
RBL is emphasizing on improving their corporate governance to sustain our Group's
continued focus on group health and group growth. For this, they separate Management
from Ownership. All individuals of Rahimafrooz Group interact with customers and
members of the public everyday and do hear, receive, or learn about their comments,
complaints, views, etc on the products, services, and dealings of the company and they
discuss within the company and managing these feedbacks and queries surely strengthen
their total commitment to customer satisfaction. Now with a combination of leadership at
various levels, employees drive and dynamism, managing change successfully, good
corporate governance and with Vision 2010 focus they achieve growth at the higher rate of
40% plus this year.
The search for new areas of customer value underpins the RBL into a profitable $ 20
million business operating 420 outlets in Bangladesh and SAARC Region by creating a new
batteries for users as why they can able to charge high prices for its batteries. The company
has created and dominated a new area of customer value. Achieving superior customer
value requires superior understanding of what creates value for customers.
customer value proposition to a definable market in order to exist. RBL is delivering value
proposition contains the essential elements of Features in the battery, Advantage like igh
tolerance to water loss and minimal maintenance ,Benefit like maintenance supports, Brand
Image and Offering include competitive price, communication, distribution outlets etc. This
is a reference to a specific important feature of the offer, the advantage as compared to the
competition, and the benefit to the customer. The Rahimafrooz corporate brand images and
product brand image like Locus convey feeling, and typically depict a lifestyle to
customers.
4. Encouraging a strategic unity between the organization and its external stakeholders by
involving customers and suppliers in organization practices.
CONCLUSION
Achieving successful implementation is a continuing challenge to the executives
responsible for executing strategies and to the scholars seeking to understand
implementation processes. The changing characteristics of the market-driven era will
undoubtedly affect strategy formulation and its execution. To achieve the sustainable
competitive advantage and market oriented, Rahimafrooz has enterprised into the first ever
fibre optical commercial networking backbone in Bangladesh in the form of Metronet
Bangladesh Ltd. (MBL). To sustain in home country Bangladesh and also international
market, market orientation is necessary for Rahimafrooz to make a competitive posion in
the market, build brand and also satisfying customers by delivering superior value.
So from the study we can tell that Rahimafrooz Batteries Limited is practising market
driven strategies which make the RBL market-oriented organization and achieve a
sustainable competitve advantage through acquiring distinctive capabilities in this business
arena. Rahimafrooz began its operation as a trading company in 1954. Today Rahimafrooz
has diversified in many areas from storage power solution to automotive aftermarket to
retailing. By deliveing superior value according to cutomer requirements and preference,
RBL is now the market leader and making profit and arrived as reputed business house not
only in Bangladesh but also in South Asia region. They achieved todays position through
long experience and learning. RBL monitor their level of commitment and orientation to
serve customers’ needs and their strategy for competitive advantage is based on
understanding of customer needs. RBL target customers and customer groups where they
have, or can develop a competitive advantage. The top management of RBL regularly
discusses competitors’ strengths and strategies. They communicate information about their
successful and unsuccessful customer experiences across all business functions. All of RBL
business functions are integrated in serving the needs of their target markets. All of their
managers understand how everyone in the company can contribute to creating customer
value. Finall it is articulted that RBL is becoiming market oriented and following some
market driven strategies to gather sustainable competitive advantage in automutive after
market.