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    Rana Plaza

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    Rahul Jain
    This document summarizes the impact of globalization on stakeholders in Bangladesh in the context of the country's expanding export industry. For industry, globalization has led to heavy specialization in low-cost clothing exports but limited flexibility. For workers, it provides reliable income but also dehumanizing conditions. Scrutiny has improved safety. For local markets, low prices face threats from nearshoring. The government faces pressure to maintain competitiveness while enforcing ethical practices, as incidents like Rana Plaza have damaged the country's image.

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    Rana Plaza

    Uploaded by

    Rahul Jain
    17 views2 pages
    This document summarizes the impact of globalization on stakeholders in Bangladesh in the context of the country's expanding export industry. For industry, globalization has led to heavy specialization in low-cost clothing exports but limited flexibility. For workers, it provides reliable income but also dehumanizing conditions. Scrutiny has improved safety. For local markets, low prices face threats from nearshoring. The government faces pressure to maintain competitiveness while enforcing ethical practices, as incidents like Rana Plaza have damaged the country's image.

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    This document summarizes the impact of globalization on stakeholders in Bangladesh in the context of the country's expanding export industry. For industry, globalization has led to heavy specialization in low-cost clothing exports but limited flexibility. For workers, it provides reliable income but also dehumanizing conditions. Scrutiny has improved safety. For local markets, low prices face threats from nearshoring. The government faces pressure to maintain competitiveness while enforcing ethical practices, as incidents like Rana Plaza have damaged the country's image.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    17 views2 pages

    Rana Plaza

    Uploaded by

    Rahul Jain
    This document summarizes the impact of globalization on stakeholders in Bangladesh in the context of the country's expanding export industry. For industry, globalization has led to heavy specialization in low-cost clothing exports but limited flexibility. For workers, it provides reliable income but also dehumanizing conditions. Scrutiny has improved safety. For local markets, low prices face threats from nearshoring. The government faces pressure to maintain competitiveness while enforcing ethical practices, as incidents like Rana Plaza have damaged the country's image.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    AOL Assessment

    Principles of Marketing

    Manan Khanna
    BJ22022

    Q1. You would draw from the case " Rana Plaza" that firms in Bangladesh have been aggressively
    pursuing global opportunities. Briefly describe the country's expansion strategies and how the
    policymakers are using their competitive advantage.

    Exports from Bangladesh achieved a total value of $15.74 billion in the quarter between July and
    October of 20211. Bangladesh is currently the leading exporter in a number of sectors, including
    ready-made clothing, jute, leather goods, and tea, with clothes accounting for 83% of all exports in
    the period 2019–202.

    Since achieving independence from Pakistan in 1971, Bangladesh has made a concerted effort to
    boost exports. Its competitive advantages have included abundant jute and cotton output and
    inexpensive labor. Currently, China is the only nation that exports more RMGs (Ready Made
    Garments) than this nation. Among its principal customers are the EU and the US. One of the key
    reasons Bangladesh has been able to sustain a constant flow of exports and gain the competitive edge
    is because of low labor costs and the availability of trained labor.
    The global expansion of Bangladeshi businesses has been significantly aided by the Bangladeshi
    government. They have put in place pro-industry trade measures, like getting rid of the MFA's quota
    system, which helped the Bangladeshi clothing market reach $21 billion in 20123. Bangladesh has
    been able to win contracts internationally because to trade agreements with the US and EU.

    Since the Tajrin Fashion fire and the Rana Plaza catastrophe, enhanced worker safety measures have
    contributed to regaining the confidence of international importers. A steady supply of energy sources,
    including water, power, and gas, has also greatly aided in the smooth production of exports.
    Bangladesh has a competitive advantage because of its ability to produce large numbers, keep open
    lines of communication with its customers, and deliver goods on schedule. Relationship marketing
    has been used by the apparel and textile industries to encourage repeat business by creating loyalty
    incentive programs with firms4. Their advertising efforts are confined to magazine advertisements
    and hosting trade exhibits for buyers because they primarily operate in business-to-business trade.

    1
    The Business Standard - https://www.tbsnews.net/economy/record-exports-bring-home-new-hopes-347143
    2
    BGMEA Sustainability Report 2020
    3
    Case text
    4
    Researchgate -
    https://www.researchgate.net/publication/305736906_Internationalisation_of_Bangladeshi_Companies
    Q2. Analyze the impact of globalization on the stakeholders in the context of Bangladesh.

    Industry

    The consequences of globalization for industry are complex. The industrialists have a chance to
    practice their craft, but it has come at a heavy opportunity cost. The export-heavy industry is
    dependent on maintaining its low-cost production, and it is unable to switch to other types of
    production or other products due to the high barrier to entry and exit. This has led to a highly
    specialized industry with little room for creativity and improvisation. This should be a positive
    direction to travel since there are no new disruptors seeking to destroy the clothing sector's current
    business model.

    Workers

    Although the notorious sweatshops and horrible working conditions generally dehumanize the
    workforce, it gives them a reliable source of income. It can be criticized for how it operates, but it
    also deserves praise for the benefits that have resulted from this system. Regular employment in this
    less resourced, intensively populated nation. Any change in direction will result in an increase in
    manufacturing costs, which will have a detrimental impact on employment. It is a vicious cycle that
    seems to have no end and must be followed in order to survive. Also, under the scrutiny of the world
    at large, there has been a prime shift in focus on health and safety of the workers which has made the
    industry more people friendly and competitive.

    Local Markets

    There is fierce competition to offer goods at the most affordable price due to consumers looking for
    suppliers in developing countries and the proliferation of companies around the nation. Another threat
    to competitiveness is from the nearshoring trend; any price increase on the part of the vendors will
    encourage the customers to look for new sourcing possibilities closer to home in Latin America. This
    suggests that any increase in marginal cost brought on by particular compliances may have a
    detrimental effect on the entire sector. Due to more readily available cheap labor and lower
    compliance, Vietnam is about to surpass Bangladesh in terms of exports of clothing.

    Government

    In order to position the country as a major export hub for ready made garments, the government has
    faced increasing pressures to enforce ethical manufacturing practices along with ensuring the
    competitive advantage remains with Bangladesh. Incidents like the Rana Plaza incident forced the
    government to take a different look at things in light of adverse global publicity.

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