Strategic Analysis of Otobi Ltd.

1. to our presentation

2. Faisal Islam---------------------BBA-04814963
Ferdous Mokami--------------BBA-04814989
Jahirul Islam Tushar----------BBA 04815123
Humaira Chowdhury --------BBA 04814949
Onika Saba ---------------------BBA 04814968
Group Members

3. Ferdous Mokami
ID BBA-04814989
Introduction
Video description
Company profile
Positioning
Market challenger

5. TOPICS NAME
Strategic Analysis of Otobi
Ltd.

6. Company Profile
Particulars OTOBI HATIL PERTEX
Established 1975 1966 1991
Annual production
volume
6,600,000,000 2,500,000,000 1,500,000,000
Average market
share
55% 25 15
Countries exported India, Middle East Canada, Australia,
japan
India
Potential export
destination
Africa, Canada,
UK, USA
North America,
and Europe
Mdle East, UK,
USA
Total export 3.2 core 1.5 core 1.00 core
Target of total
export
4.2 core 2.5 core 1.5core

7. Market leader:
Otbi is a leading position company in
furniture industries, it creates a strong
position at its successful competing
with the other furniture organization of
Bangladesh.
Managing brand is an essential task in every in every organization, otobi has successfully
created their brand name and able to spread its wing internationally which is not only
promising for otobi itself but also for local brand.
Market challenger for Otobi:
The market challengers for otobi are
Hatil, Navana,pertex, etc.
Positioning

8. Faisal Islam
ID BBA-04814963
SWOT Analysis of
Otobi
Five Factor analysis

9. Strength: Weakness:
Skilled workforce
Dynamic leadership
Well facilitated production site
Good marketing force
Failure to follow JIT
Price of product
Opportunities: Threats:
Growing market share
Changing culture
Growing concern on forestation
Growing real state business
New competitors- Tanin, Akij pertex,
Political unrest
Restriction on use of plastic
Use of rot iron
SWOT Analysis

10. Five factor model
Bargaining power of buyer
Threats of new entrants
Threats of substitute product Bargaining power of supplier
Intensity of rivalry
Threats of
substitute
Potential
entrants
Buyer Supplier
Intensity of rivalry

11. Intensity of rivalry:
The rivalry among the furniture firms is
currently intense and growing. In the market
Otobi has many competitor relatively equal
size. Such as hatil, navana, pertex, brothers
furniture, etc. Non brand furniture companies
are also growing rapidly in the market.
Threat of substitute products:
Recently RFL, Tanin, talukder
group,bengal plastic produce consumer
and commercial using furniture. The
plastic furniture is now much popular
among people for low cost.
Threats of potential entrants:
Low barriers to entry keep the threat of
new entrants high. Threat of new
entrants for Otobi is high because any
furniture company can entrants in the
market any time with relatively low
investment.
Five Factors Model

12. Five factors model
Bargaining power of the buyer:
There have no option to bargain in Otobi
furniture. Because otobi contain fixed price
furniture.
Bargaining power of the supplier:
Otobi mainly import raw materials
from Indonesia, Japan and Malaysia.
So there have low bargaining power
of supplier over the world.

13. Humaira Chowdhury
ID BBA-04814949
Functional level strategy

14. Functional level strategy
Efficiency in otobi:
Otobi have learned in their literacy
survey how a company can achieve
superior efficiency, that is, how it can
reduce its cost.
Experienced worker: Otobi gives
emphasis on the experienced
worker and try to hold old
employees in spite of required
higher payment.
Economic scale:
To achive economic scale otobi
goes for a large volume of
production together.

15. To make the manufacturing process, recently Otobi has imported modern
machineries from Germany.
Division of labor and specialization: Otobi
has divided its labor force for various
segments and goes for specialization; chair,
table, kitchen cabinet, hospital furniture,
office furniture etc.
Otobi does not leave out even single customer.
They could established brand loyalty in
thousands of customer
Functional level strategy

16. Functional level strategy
Otobi produce high quality world class
furniture that’s why customer have a
high perceived value for Otobi products
in their mind.
Otobi could established a strong
organizational commitment to
achieve superior to beat the
competitors in the quality aspects.
Otobi often challenging goals to its
employee. Side by side adequate
incentive are also arranged for meeting
those goals.

17. Otobi solicits the idea taken
from the any level of worker.
Any worker or employee of otobi
are at liberty to talk about any
idea which may improve the
quality.
Functional level strategy

18. Onika Saba
ID BBA-04814968
Corporate level strategy
HR policy

19. Corporate level strategy
The corporate level strategy of OTOBI is
to concentrate on a single business. It
competes successfully within the confines
of a single business that is in the
laminated furniture business.
OTOBI focuses its total managerial, financial, technical and physical resources
and capabilities on competing successfully in a single area.

20. Corporate level strategy
As it is a fast growing business, demand on
its resources are very significant. Even after
having the capability of diversification,
OTOBI does not go for that. It sticks to its
knitting that is it sticks to doing the furniture
business, what it knows best.
OTOBI does not want to do any mistake
of diversifying into areas about which it
knows little and where its existing
resources and capabilities add little value.

21. HR Policy
The HR Policy at Otobi embraces the following key philosophies –
1. To recruit the best possible employees and to retain them through
continuous development process. Otobi believes in holding old experienced
workers and employees.
2. To create a learning environment where employees are beneficiaries and
stakeholders are treated with respect. Performance Evaluation at Otobi
is broadly and objectively planned, and monitored.
3. To promote a safe and healthy work environment with all kinds of
modern facilities. All staffs must use prescribed safety tools
and equipment's at work.

22. Jahirul Islam Tushar
ID BBA-04815123
Marketing Strategy Level
Product line
Positioning
Branding
Promotion
Reference

23. Marketing Level Strategy
Positioning:
The positioning of Otobi Furniture is done based on the following:
 Quality
Warranty
After sales service
 Customer consultancy
Product Line:
Otobi produce several types of furniture to compete with other furniture
company.
01. Office Furniture 02. Household Furniture
03. Computer Furniture 04. Hospital Furniture
05. Decorative Items 06. Kitchen Cabinet
07. Special Built in Cabinet 08. Work Station
9. Interior Project 10. Official Stationeries

24. Marketing Level Strategy
Branding:
Integrity, commitment to the community, quality, professionalism, innovative
and stylish furniture, conscious about environment and eco friendly, and
characteristics which are all reflected in the company’s advertising, point of
the sales displays, and customer service.
Otobi Furniture is also committed to acting honestly in its dealing with the
customers, distribution partners, suppliers, and government institution and
other multinational company.

25. Marketing Level Strategy
Promotion:
Otobi also has its own promotional activities to keep itself on the top of the
people’s mind of Bangladesh.
Otobi use both ATL (above the line: TV, Newspaper, Direct Selling) and BTL
(Poster, Banner, Neon Sign) promotional strategies. But for a product like
furniture “Above the Line” promotional strategies specially direct selling, are the
main one.Banner, Paper ad, TV ad,

26. Reference
http://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf
http://prnewsbd.com/1039/hatil-opens-outlet-in-canada/
http://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf
http://www.bangladeshconsulatela.com/docs/Booklet_bfidexpo-2012.pdf
http://www.integratedretailing.com/?p=131
http://www.furnituretoday.com/
http://www.answers.com/topic/furniture-stores
http://www.ikea.com/
http://www.ikea.com/gb/en