Escolar Documentos
Profissional Documentos
Cultura Documentos
Furniture was established in the mid 80's making it one of Bangladesh's oldest and most
experienced wooden furniture manufacturers.
Founded by Mr. Rahman, Hatil Furniture has developed into a major player not only in Bangladesh but
internationally as well. Hatil specializes mostly in wooden furniture and has become an exclusive supplier to many
international brand name hotels in Bangladesh and abroad.
With a massive yearly turnover Hatil is sure to reach even what seemed impossible before heights, and will be sure
to become a household name in many other international brand name hotels in the following years.
M Corporation USA Ltd. having merged with Hatil as a strategic partner has become a professional office furniture
group enterprise which integrates the design, development, manufacturing and marketing of high grade hotel
furniture. M Corporation USA Ltd. and Hatil strive to develop and manufacture modern design furniture, closely
following the latest trends in international hotel furniture and expanding the design concept beyond the traditional.
M Corporation USA Ltd. and Hatil are renowned for the design, development, manufacturing and sales of top
quality and durable case goods and upholstered furniture.
Over the years we have developed and upheld successful working relationships with purchasing companies,
designing firms and hotel companies. Our clientele includes top brand hotels such as Starwood, Carlson, Marriot,
IHG and Hilton group, amongst countless other well-known brand hotels.
The merger between Hatil and M Corporation USA Ltd. combines many years of experience on both sides of the
hotel industry into a strong corporate and profitable venture.
Our Products:
Closets
Beds
Chairs
Sofas
Tables
Desks
Hatil is a famous furniture manufacturing brand in Bangladesh. It is playing a very
important role in contemporary furniture market of Bangladesh. It has wide varieties of
exclusive contemporary designs of furniture. The name of the registered company of
Hatil is HATIL Complex Limited. It was founded in 1989 by late Habibur Rahman. It is a
private limited company limited by shares. Its factory is located in Mulimtek,
Ziranibazar, BKSP, Savar, Dhaka, Bangladesh.
The area of the factory is about 5 Acre. It is managing director is Mr. Selim H. Rahman.
Its main business is furniture manufacturing, retailing, and export. Some of the part of
Hatil furniture is jointly operated by Global Factory Limited (Denmark – Bangladesh
Joint Venture).
Their vision is to earn the trust and respect of their customers in Bangladesh and abroad.
Their mission is to innovate, develop and introduce cost effective, space solved and
environment friendly furniture with technological advances.
Their brand name in the whole world is HATIL and their tagline is “Slim is SMART”.
Hatil furniture manufacturing company has 18 Nos. outlets in Dhaka City and about 35
nos. outlets in other city of Bangladesh.
Hatil furniture manufacturing company is exporting to Germany, Netherland, Ukraine,
Switzerland, Sweden, Denmark, Singapore, Thailand, India, Japan etc. countries.
Hatil is mostly producing Home furniture, Office furniture, Hotel furniture, Hospital
furniture, Interior decorations, Doors, Smoke Solutions etc.
Hatil uses only one timber for its all furniture manufacturing and it is North American
Red Oak Timber. These Red Oak timbers are imported from North America. They are
keeping domestic forest safe from environment pollution. They produce their products in
3 colors only. They are Natural, Dark & Antique color. Their natural colored product is
popular most. Most of their products are knocking down.
They apply PU Lacquer as well as UV lacquer for their furniture’s finishing. They mostly
use Sayerlack Brand, Itlay Lacquer chemical mainly. They are environment friendly.
People of Bangladesh are fan of Hatil Furniture. They have captured a big share of
Wooden Furniture in Bangladeshi market. Their main competitors are OTOBI and
Partex Furniture. Right now they are in the 2nd position in Bangldesh in Furniture
manufacturing and selling business.
Introduction:
Origin of the report: this report is development as a course of the MBA program. When I have
presented my report to my supervisor, he will authorize my report. This report is written by me
under the supervisor Md. Shahin Ahamed Chowdhury.
Problem and Purpose: My corporate purpose is state that to succeed the problems and pattern
statement of Partex Furniture. But the whole information about Partex Furniture as like what is
working system how is its management system and etc. are not clearly given on its website.
History: Partex Furniture is a leading manufacturing furniture, brought revolutionary changes in
the furniture market in our country since its start 2000 and owned by Mr. Aziz Al Kaiser. First it
had started in a small scale, but today Partex Furniture is fully equipped with latest technologies.
Scope: Partex Furniture is a world class furniture providing company, has a big functioning
network of its business in our country and other country. It has several Gallery and Branches. I
have tried to cover about marketing strategy of Partex Furniture.
Limitations: For the want of the proper data and reliable resources I can not include the financial
information in this report.
Sources and Methods of collect: I have collect the information from the Secondary data, such as:
Companies journal, brochure, articles, websites and Monipuripara Gallery.
How to started:
A combination of special imported laminated board, stainless steel accessories and high standard
plywood offers the best quality and cost effective substitute for natural timber for custom-made
innovative, modern and stylish furniture. PARTEX Furniture produces a diversity of products
maximizing the use of timber-substitutes as well as products of solid timber. Within a short span
of time laminated board furniture has been able to claim a sizable portion of the market. This is a
commitment of PARTEX GROUP to use eco-friendly materials, as much as possible. Currently,
we are providing an ever-increasing range of products to meet the greater than ever demand of
furniture for households, offices and educational institutions.
VISION
We are the leading furniture solution provider in Bangladesh achieving our business vision
through growth in market reach, increasing operation size, international distribution, total service
and consistent branding activities by the being most customer focused & Innovative, cost
effective & efficient, environmentally responsible & quality concerned company in the business.
MISSION
We believe our success depends on our customers. Thus, our primary value is fulfillment of our
customer's needs. Our manner of achieving this success is to include value for money, different
price ranged functional products, complete solutions, free technical consultancy services, after
sales support, efficient delivery, and above all quality products that exceeds expectations. We
believe in providing our customers new and innovative products with international standards to
match with the changing lifestyle of today.
We believe our competitive nature thoroughly ensured as when we provide highest quality
products in the most perceived prices. We are committed to our value in relationship with our
stakeholders where our core product is associated with efficient and reliable services.
INTEGRITY
We are committed to conduct our business in such a way that demonstrates highest ethical
standards. We believe integrity is our imperative utility to succeed in what we do.
Targeting: The Sky is not the limit for Furniture Market but expectation is within limits.
Therefore, our imagination soars beyond conventional barriers. We share or destiny with our
beloved motherland. We want to serve her in the greater quest for national uplift. Partex Group is
committed to the prosperity of Bangladesh. Our enterprises play a positive role in alleviating
poverty and generating employment an important objective of our country. This has been
possibly through continuous customer support and loyalty which we are proud. We endeavor to
reach our products and services at the client's doorstep through a network of sales and
distribution outlets. Human resources is our key asset, who translate the group's objectives into
realistic performance. We are committed to have the best people and train them to get the best
from them. Ours is a free market economy, where private sector plays a key role in establishing
an industrial base. We believe in new ideas and technology which the road to the future. We
shall travel this road hand in hand with our customers and our employees to seek and find
prosperity for the Group and the country. We are the leading furniture solution provider in
Bangladesh achieving our business vision through growth in market reach, increasing operation
size, international distribution, total service and consistent branding activities by the being most
customers focused & Innovative, cost effective & efficient, environmentally responsible &
quality concerned company in the business. To be the most consumer-focused, competitive,
efficient, innovative, and environmentally responsible and quality concerned leading market
oriented furniture manufacturer, sales and distributor of Bangladesh.
It is clear that Partex Furniture is in the second position in the Furniture market of Bangladesh.
Summary of
Marketing strategies
Corporate-Level strategy
Partex has vertically integrated both into the Panel-based and timber-based furniture industry
because of their strength in raw material supply.
Because of vertical integration, Partex enjoys some competitive advantage compared to its
competitors.
Partex has invested Tk.100 crore in the furniture industry and this huge investment acts as an
entry barrier to its potential new entrant.
Partex will also be able to realize Economies of scope since they are fully integrated in the
furniture industry i.e. from producing raw materials to distributing them.
Thus the two SBUs in the furniture industry: one is timber based furniture and the other is panel
based furniture
Business-level Strategy:
Interestingly enough the generic strategy for Partex is not ‘Cost Leadership and Differentiation’
rather it is differentiation (not pure differentiation) backed up by absolute cost advantage. The
result is Premium price charged for products similar to the competitors and obtaining lower cost
than pure differentiators and higher levels of profits than firms pursuing only one of the generic
strategies.
Functional-Level Strategies
1. MARKETING
Always tries to pursue new product development focusing on quality, design and customer
needs, providing feedback to both customers and specialized functions, in order to expand their
market.
3. PRODUCTION
Concentrating on reaping most benefits out of panel based furniture due to low lead-time,
automation and sound vertical integration. At the same time, inefficiencies in timber-based
furniture are attempted to be countered with high design and craftsmanship quality and doing
batch processing to minimize costs.
Global-Level Strategies
It is not planning to put any manufacturing set up in the host country. Partex will manufacture its
products exclusively in the home country. As Partex’s current targeted foreign market is UAE it
has low pressures for Cost Reductions.
Pressures for Local Responsiveness are low as well.
Corporate Structure
Strengths Weaknesses
Top level Decision Making with vast Complex structure- difficult to understand
information seeking from low level
managers (take inputs)
Centralized DM
Poor understanding of the structure by the
mid level managers
Present structure hampers successful growth
in the future
Corporate Culture
Strengths Weaknesses
Consistent culture Family Owned business concept very
prominent
Emphasis on quality, craftsmanship and Promotion only up to a certain position,
design and integrity is maintained about which may be de-motivating to the
this employees. Short corporate ladder
Customers are not refused, with a certain
Marketing
Strengths Weaknesses
Technologically advanced in terms of Research is mainly observational and
developing new products participatory
Cost and quality can be controlled as they
Operations
Strengths Weaknesses
capability to produce imported RM for initial research suggested that there is
panel-based furniture currently imported demand in this business but partex did not
plan its entry to take advantage of its full
potential.
BMRE Programs and plans merely implied and not
clearly stated
automated system for CKD approach current situation is not consistent with
missions, objective etc.
vertical integration gives competitive
advantage
Capacity planning possible in panel based
furniture
own supply channel ensures smooth flow of
RM
labour and technical teams ensure quality
and design
forecasting can be done in relation to the demand fluctuations have been taken as a
followng factors about the demand cycles problem factor preventing capacity
planning
Human Resource
Strengths Weaknesses
consistent with missions, as employment is These policies are not stated clearly only
generated merely implied
Training provided in a regular basis
Opportunities Threats
Intensity of Rivalry
Due to the size of Partex, the business can Brand image pioneered by Hatil and Otobi –
expect lower intensity of rivalry Partex not the pioneer
Currently in an oligopoly Timber based furniture industry is in mature
stage
possibility for being highly consolidated in High capital investement leading to high
the future due to its size, investment and exit barriers
integration
The brand furniture is growing
Demand is increasing every year by 15%.
differentiated
No prominent labour union leading to low
exit barriers
Layoff cost is low leading to low exit
barriers
The group is not so dependent in the
Advantage over economies of scale and Economies of scale and experience curve
experience curve effects in panel based effects are not present in timber based
furniture furniture
High capital requirements for entry
Chairman being the member of the The market is a free market and open to any
Parliament can forecast regulatory changes new entrants.
better than competitors.
The current differentiation strategy of Partex
strong enough to bar both new and existing
competition.
Partex gauges expected retaliation
Threat of substitutes
Close substitutes are not performing in the
same market segment
Business-Level Strategy
Principal Issues
Partex’s Strategic managers plan of action for using the company's resources and distinctive
competencies to gain a competitive advantage over its rivals in the local market is based mostly
on its cost advantage over the competitors. At the heart of the generic business-level strategy for
the company lie the choices concerning product differentiation, market segmentation, and
distinctive competency. These issues of Business level strategy formulation according to Partex
are discussed below:
The differentiation of furniture according to the need:
The study on Partex’s product offerings connote that the company follows two different
strategies for both Panel-based (Knockdown) furniture and Timber-based furniture. These
current strategies are as below:
Current Product Differentiation Issues:
Types of Furniture Issues for product differentiation
Panel-based This type of furniture is targeted to satisfy special
category of needs: office furnishing, kitchen and home
appliance, lower middle class home furnishing by
offering low-priced products.
However, selected customization of these products is
also offered allowing minor differentiation for upper
middle to higher economic classes in the local market.
Timber This type of furniture offers uniqueness through the
product’s appeal to the consumers’ psychological needs: Recom
such as brand image and perception of Partex furniture mended
being high-end product. Differe
ntiation Issue:
The capacity and the market forces suggest that the current strategy is sufficient for Partex to
continue in the industry.
The Segmentation of the furniture market:
Partex management grouped their consumer in terms of the income-based classification and
preferences. The segmentation is unusually large and looks apparently unrealistic to allow Partex
to gain competitive advantage. However, due to the nature of the business of two types of
furniture, the target group is bound to be relatively larger. The current segmentation strategy is
followed for both panel and timber based furniture market.
Current Segmentation Issue:
The current segmentation strategy of Partex for both of its product line: Panel-based and timber-
based is a broad range – ‘Lower middle’ class to the ‘upper upper’ class of the economic division
of the Bangladeshi market.
Recommended Segmentation Strategy:
Types of Furniture Issues for segmentation
Panel-based ‘Lower middle’ to ‘Upper upper’ class as panel based
furniture consumer can be targeted for:
Office furnishing.
1. MARKETING
Marketing & efficiency Pursuing quality, customer needs and design research
Showroom situated at a poor location
TV media not yet utilized
Only one outlet as of now
Pricing strategy inconsistent with stated objectives and actual
implementation
CURRENT STRATEGY:
Always tries to pursue new product development focusing on quality, design and customer
needs, providing feedback to both customers and specialized functions, in order to expand their
market.
RECOMMENDATION:
Enhance aggressive marketing through consistent pricing perceptions within customers, having
more outlets, and pursuing other media to promote
Demand forecast
R&D and quality Product design based on what is wanted by customers – not based
on manufacturing ease
R&D and innovation Develops new products but process innovations low
Cooperation with other functions done
Develop products that are needed by consumers but focusing mainly on manufacturing ease and
process innovation.
3. PRODUCTION
Production & efficiency Flexible manufacturing already done for Panel-based furniture
No optimal capacity allocation done for timber based furniture
Presence of vertical integration (having own supplier and distributor)
enables efficiency
Production & quality Long production runs for panel based furniture – making it difficult to
judge source of defects
Production & customer Customization done but not always with flexible manufacturing
responsiveness Response time good for panel based furniture b/c lead time low
Response time bad for timber based furniture b/c lead time high
CURRENT STRATEGY:
Concentrating on reaping most benefits out of panel based furniture due to low lead-time,
automation and sound vertical integration. At the same time, inefficiencies in timber-based
furniture are attempted to be countered with high design and craftsmanship quality and doing
batch processing to minimize costs.
RECOMMENDATION:
While concentrating on efficiency the company needs to create task forces to enable flexible
manufacturing for timber based furniture.
Corporate Strategy
Current Strategy
Partex has vertically integrated into the furniture industry. Partex had the upper hand in
producing the particle board which is the raw material to produce furniture and they used to
supply this particle board to other furniture-making companies to produce furniture. But the
corporate managers decided that they could vertically integrate into the furniture industry since
they would be producing their own raw material. They also came up with an innovative idea of
making use of the unused part of the log which they use for making particle boards. Partex also
has a widespread distribution network which it can use for the furniture as well.
It may be added that Partex has vertically integrated in other businesses as well apart from the
furniture industry. For example, under Complex-II Partex had Danish Condensed Milk (BD)
Ltd., Danish Food Products, Danish Milk Mills Ltd. Then Partex vertically integrated and
came up with Danish Distribution Network Ltd.
Because of vertical integration, Partex enjoys some competitive advantage compared to its
competitors.
Partex has invested Tk.100 crore in the furniture industry and this huge investment acts as an
entry barrier to its potential new entrant.
Partex will also be able to realize Economies of scope since they are fully integrated in the
furniture industry i.e. from producing raw materials to distributing them.
SBUs
They have two SBUs in the furniture industry: one is timber based furniture and the other is
panel based furniture
Timber Based: This SBU is considered as a Question Mark since the relative market share is
low, but there is tremendous potential for growth in this industry. This SBU needs a lot of cash
injection which Partex has already done and plans to do the same in future.
Panel Based: This is considered to be a Cash Cow. They have a high market share and they
are generating positive cash flow for Partex.
Partex is finding it very difficult to integrate all their businesses in the industry. In addition,
Partex has a very complex structure. Thus their bureaucratic cost is very high.
Recommended Strategy
Partex should change its current organization structure and make it more simple so that their
bureaucratic cost can be lowered which will give them a competitive advantage.
Current Situation:
At present Partex furniture is targeting UAE as their foreign market.
Cost of establishing manufacturing operations in foreign country is being avoided.
Manufacturing only in home country will enable the company to realize substantial
economies of scale with added global sales volume (experience- curve cost economies
and location economies).
Moreover, Bangladesh being the home country Partex has the advantage of cheap labor
and cheap raw materials (in terms of scrap wood and jute stalk).
Recommendations:
Should calculate regarding the pros and cons that will be associated with trade barriers of
the foreign (host) country.
The company should also carefully verify the transportation costs associated with exporting, and
then compare it with possible profit gains.
Buyer Power
The buyer is the next person downstream in the channel of distribution. Thus the buyer for the
subject firm in our case was previously the manufacturer (e.g. OTOBI) while now it is the
wholesaler and the final consumer.
The factors that increase a buyer's power are the mirror image of those that increase a supplier's
power. Thus buyers have enhanced power:
When they are concentrated and buy in volume. These conditions give buyers power over small,
fragmented suppliers. However, in Partex’s case their Major buyer was OTOBI at a certain level.
Now, as Partex is going vertically integrated the buyers’ power is getting reduced as no
individual buyer is the prime consumer for the subject company’s product.
However furniture buyers can integrate backward if suppliers cannot offer satisfactory prices.
Examples: often consumers chose designs of furniture from galleries and produce them through
individual Wood craftsmen.
Socio-cultural: Society's traditions, values, attitudes, beliefs, tastes, and patterns of behavior,
and how they are changing effects the operation of any business. Partex is no exception in this
regard. A few variables in General environment is provided below:
preferences
decline
Problems Finding:
Recommendation:
1. After Sales Service: After Sales Service should be provided at all the
Show-room. It will save time and effort of the people.
2. Design of some Furniture: Some product design of the company are very
traditional. There are so many product similar to our design are now
available to our competitor.
3. Drop out slow moving product:
4. More Advertising: To increase the sales advertising on Print media,
Electronic media should be increase.
5. Dealer increasing: Dealer should be available in all district. Then I have to
find out according to the market potentiality for more than one dealer in
the same market.
6. Marketing Plan for Slow Moving Product: Plan for slow moving product
such as; Hospital furniture.
7. More Tanning for the officer Level: At present more training is needed
about the salesmanship. Market research for find out the target market,
dealing product knowledge, product development, marketing product etc.
for the salesman and sales personnel.
8. Marketing Research: Market research for each brand has to be done for
getting the clear picture for product positioning against the competitor
products and finding out furniture.
9. Budget: The budget will be required to upgrade as its targeted future.
Conclusion:
It is impossible to have a clear-cut idea of a big company within a short time. But according to
my observation this company is suffering from a tremendous problem in following areas, which
are the main obstacle for the company optimum growth:
Company is in developing stage. Gradually it is trying to figure out its system fall and week
corner. In spite of many problems, it is the pioneer in furniture industry in our country. Hope it
will be a systemic and standard organization.