Acquiring the vital competitiveness
Sunday, 15 July 2007
Abdus Subhan
MARKET studies or research to establish demand pattern of products are essential preconditions for the establishment of industries. Private sector can initiate their own such research. The government can also play a valuable role in this regard by collecting and disseminating such information. But cases are noted in Bangladesh where entrepreneurs rush to invest in a particular sector to produce in excess of demand. This is the outcome of lack of market research on their part or the inability of the relevant government departments to supply data on the demand situation. This renders many industries in such a sector not viable even in the short term.
Before a product is launched, a lot of pre-launch activities should go into its designing, innovation in relation to products from rival producers --specially foreign ones-- and adding of new features to create customer appeal. Even packaging of a local product can cause more attraction for it in relation to its imported or smuggled versions. But industries in Bangladesh, in varying degrees, are still seen lagging behind in many cases in following these standard procedures to remain competitive in the market. Thus, it is no surprise that the local industries in many cases go down in the competition vis-a-vis foreign products that seem to offer greater advantages to customers in terms of price, quality or innovative features.
Even in the areas of marketing there are scientific promotional policies to be followed. There are many companies in Bangladesh that start off without feeling the need of having an adequate marketing plan in the first place. For such enterprises, the maintenance of a properly staffed and equipped marketing department is, thus, of secondary importance. Ensuring of product quality or quality control also figures poorly in the operation of some enterprises. But success in businesses these days, aiming for either the local or the international market, involves having streamlined policies and sufficient capacities for new product development, market research, quality control and sound marketing plans.
The Bangladeshi entrepreneurs do need to give very serious thoughts to these issues in order to remain competitive and flourish in business on a sustainable basis. This will also facilitate making investments worthwhile for generating the expected returns and promoting accelerated economic growth.
MARKET studies or research to establish demand pattern of products are essential preconditions for the establishment of industries. Private sector can initiate their own such research. The government can also play a valuable role in this regard by collecting and disseminating such information. But cases are noted in Bangladesh where entrepreneurs rush to invest in a particular sector to produce in excess of demand. This is the outcome of lack of market research on their part or the inability of the relevant government departments to supply data on the demand situation. This renders many industries in such a sector not viable even in the short term.
Before a product is launched, a lot of pre-launch activities should go into its designing, innovation in relation to products from rival producers --specially foreign ones-- and adding of new features to create customer appeal. Even packaging of a local product can cause more attraction for it in relation to its imported or smuggled versions. But industries in Bangladesh, in varying degrees, are still seen lagging behind in many cases in following these standard procedures to remain competitive in the market. Thus, it is no surprise that the local industries in many cases go down in the competition vis-a-vis foreign products that seem to offer greater advantages to customers in terms of price, quality or innovative features.
Even in the areas of marketing there are scientific promotional policies to be followed. There are many companies in Bangladesh that start off without feeling the need of having an adequate marketing plan in the first place. For such enterprises, the maintenance of a properly staffed and equipped marketing department is, thus, of secondary importance. Ensuring of product quality or quality control also figures poorly in the operation of some enterprises. But success in businesses these days, aiming for either the local or the international market, involves having streamlined policies and sufficient capacities for new product development, market research, quality control and sound marketing plans.
The Bangladeshi entrepreneurs do need to give very serious thoughts to these issues in order to remain competitive and flourish in business on a sustainable basis. This will also facilitate making investments worthwhile for generating the expected returns and promoting accelerated economic growth.