Strategy For EHL
Strategy For EHL
Strategy For EHL
Shamim Shorif
ID.1310127030
Sub: MGT 489
Company Overview:
Eastern Housing Limited (hereinafter referred to as EHL), a concern of Islam Group of
Industries, is the oldest and largest company in the real estate industry of Bangladesh. It was
made in 1964 as a private restricted organization to decrease the lodging issues in Dhaka. The
trademark of EHL is Apan Thhikana Gore Dey, which can be meant Makes Your Own Home.
The organization started its tasks with basic exchange of land and a short time later has become
occupied with buying land, building up the equivalent for urban lodging and offering to the
individuals of various salary gatherings. It was one of the main organizations to give low cost
lodging to the occupants of Bangladesh by executing a venture of building 700 houses on 910
sections of land (3.68 sq. km) of land in a prime area in Dhaka. The major core values of the
organization are uprightness, responsibility and transparency.
SWOT Analysis:
Strength
Weakness
Opportunity
4. Open market economy , recent housing policy etc. may favor sustainable growth of
housing Industry
Threats
1. Lack of land
Their company strategy is good but according to UNDP research if we divided our population by
their income group we can see Only 10% people are in top income group 50% are in middle
class and rest 40% in the bottom. So EHL is leaving the 50% market to catch 10% . EHL
strategy is Focus Differentiation Strategy. As a result they are losing a big amount of market
share.
The following table will give us an idea about Dhaka city income group:
Source: UNDP Study
Although EHL has no operation in Chittagong and Sylhet where according to world bank Sylhet
and Chittagong has more middle class people and less poor people than Dhaka. The following
graphs will give us an idea about these areas:
Source: World Bank’s recent poverty assessment
So after analyzing this scenario I will suggest the Broad Differentiation Strategy.
2. Include the Chittagong and Sylhet: EHL needs to include Chittagong and
Sylhet as their new business place as they are also growing and government are
planning to decentralize the Dhaka city. As it is very much populated country.
4. Allow intermediaries/ third parties for sealing: When EHL will allow
the third parties or any intermediary to sale their property that time they will gain more
customers because in Bangladeshi context intermediaries are holding very strong
position. EHL will allow Intermediaries for 2-3 years in that time EHL will get a huge
mid-range customer and after 3 years the existing customers will give EHL more
customers with their word of mouth.
5. Strong online/digital marketing: Now a day most of the people follow the
trend so they use smart phones even the television are also smart. So EHL need to do
social media marketing as well as digital marketing to attract more customers.
Facebook marketing, Email marketing is now essential for the new customers. They
also go for the TV advertisement as we are planning to tap in Chittagong and Sylhet
6. Increase after sales service: EHL currently doing many customer oriented
work but they can include more like
o If anyone wants to sale their existing EHL flat they can contact with EHL and
EHL can buy back in a discounted price.
o EHL can arrange a yearly customer gathering to make customer more loyal to
them
o EHL can send new years greetings and souvenir of EHL to the customers
o EHL can offer a lucrative discount for their existing customers on their next
buying.
7. COVID-19 discount offer: As the pandemic is affecting all the people of all
classes so EHL can offer a lucrative discount offer top gain new customers.
Functional Strategy
It’s about securing competitive advantage by lowering cost and differentiation. It focuses on
improving every activities of a value chain in a company by superior quality, innovation,
efficiency and customer responsiveness. As each and every department in interlinked when it
comes real estate companies. It is very important for every department to be efficient. If I start
with the
Production: Good quality supplies in low price can be game changer for EHL. They have to
find out the quality and quantity needs from the material Management and look for companies
who can provide those in long term. Making a long term deal with the supplier not only lower
the overall cost but will also ensure the availability of those supplies.
Customer service: If your customer is satisfied with our service they will not only come
back to you but also refer you to their friends and relatives. So in the real estate business it is
very important to retain customer. I also suggest EHL to contract every customer once a year to
ask them whether they have any problem or not. That means service after sells.
Marketing and sales: I suggest them to share commissions to the marketer and sales
people. It will be motivated them to increase sales. Proper training for employees how to handle
customer. If EHL go for international housing fair they must be connected with international
companies and in this fair if they bring big projects they will regain their crown of the real estate
which builds biggest structure.