Assignment on Swot Analysis of Aarong Bangladesh

Plant Accessories
SWOT analysis is a powerful technique for understanding organizations Strength &
Weakness and looking for the Opportunities & Threats it may face. Used in a business
context it helps organization carve a sustainable niche in a market. This analysis is mainly
based on an imaginary situation.SWOT Analysis of Aarong
Strength
Aarong is a very reputed organization. They are now capturing 68% of total handicraft
market share in Bangladesh. Its a local brand and now exporting their products outside of the
country. Aarong has good reputation for fine quality products. It has a strong management
team who are continuously giving their great effort to make it a successful one. Another
important fact is that, Aarong has almost Zero production damage rate which reduces their
cost. They are innovative and always bring some new product in the market which meets
customer requirement and expectations. The organization is a respected employer that values
its workforce.
Weakness
Aarong has a reputation for new product development and creativity. However, they remain
vulnerable to the possibility that their producer may not be able to produce product timely
due to their inability. The collection channel of the organization is not that much structured so
that they can get the products from the producer on time and it may create problem for them
in future. If any producer is not able to make the product on time due to some personnel
problem then the company will also not be able to deliver their product on time. This is a big
problem and it happens most of the time on delivery. Aarong charges higher price relatively
than their other competitors as a result some times customers lose their interest to by product
from them. Its sales force or sales girls within the outlet are not properly trained up.
Sometimes they make customers disappointed by their attitude and customer doesnt feel
good to buy from there. Sometimes they suffer for financial problem, although its a rare
situation.
Opportunities
Aarong is very good at capturing the advantage of opportunities. It can go for new
distribution channel like it can make some joint venture with some other small Boutique and
sales its products in more places. Through that it can capture more market share in the
handicraft industry in Bangladesh. Aarong can expand its business globally. New market for
handicraft such as Europe and America are beginning to emerge. People are now trendier
about local events & functions like Pahela Falgun, Pahela Baisakh, Victory day,
Independence Day etc and they buy new and special products for these events. Aarong can
make new products to sell in those special occasions. According to the season change, people
are also changing their preference in buying products and considering this scenario Aarong
can produce products on the basis of seasonal variations.

Threats
Aarong doesnt have any big competitors right now. But they have some small competitors
like KayKraft, Anjans, Deshal, Jattra, Khubsurti, Rina Latif, OZ, Rang and some other
Boutiques established at Banani 11, who are taking their 32% customer and increasing in a
slow rate. Aarong always face price wars with their competitors. Its competitors have some
superior products like OGs Panjabi shape, Khubsurtis design of Salwar kamiz Rangs
Sharis color, which is decreasing Aarongs market share as well as sales. But now they are
repositioning their Brand to compete with them.
Competitors Analysis of Aarong
Competitor analysis in marketing is an assessment of the strengths and weaknesses of
current and potential competitors. This analysis provides both an offensive and defensive
strategic context through which to identify opportunities and threats. Competitor profiling
coalesces all of the relevant sources of competitor analysis into one framework in the support
of efficient and effective strategy formulation, implementation, monitoring and adjustment.
Aarong has its own version of the competitive analysis and its function is clear: to line
up your product with other products and show where yours falls short and where yours is
superior. Each industry brings a different spin to this old favorite and user experience design
has its own set of criteria by which to judge competitors.
From the above diagram it is seen that Aarong has competitive advantage over its competitors
on almost every factors. Only few companies have ability to chase some sort of advantage
like Aarong. Such as Rina Latifs product features, qualities and innovativeness, Kay-Kraft
and Anjans supplier, Rangs color and Khubsoortis cost.
Conclusion & Recommendations
Established in 1978, Aarong is a fair trade organisation dedicated to bring about positive
changes in the lives of disadvantaged artisans and underprivileged rural women by reviving
and promoting their skills and craft. Reaching out to weavers, potters, brass workers,
jewellers, jute workers, basket weavers, wood carvers, leather workers and more, Aarong
embraces and nurtures a diverse representation of 65,000 artisans, 85% of whom are women.
Today, Aarong has become the foundation upon which independent cooperative groups and
family-based artisans market their craft, in an effort to position the nations handicraft
industry on a world platform of appreciation and acknowledgement.
In these situation I recommend some to go ahead in fashion sector:
Government should mostly contribute in this sector.
Establish fashion institute .
Arrange fashion competition in between the country.

Invite foreigner; etc.

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SWOT analysis is a powerful technique for understanding organizations Strength &

Weakness and looking for the Opportunities & Threats it may face. Used in a business
context it helps organization carve a sustainable niche in a market. This analysis is mainly
based on an imaginary situation.
Strength
Aarong is a very reputed organization. They are now capturing 68% of total handicraft
market share in Bangladesh. Its a local brand and now exporting their products outside of the
country. Aarong has good reputation for fine quality products. It has a strong management
team who are continuously giving their great effort to make it a successful one. Another
important fact is that, Aarong has almost Zero production damage rate which reduces their
cost. They are innovative and always bring some new product in the market which meets
customer requirement and expectations. The organization is a respected employer that values
its workforce.
Weakness
Aarong has a reputation for new product development and creativity. However, they remain
vulnerable to the possibility that their producer may not be able to produce product timely
due to their inability. The collection channel of the organization is not that much structured so
that they can get the products from the producer on time and it may create problem for them
in future. If any producer is not able to make the product on time due to some personnel
problem then the company will also not be able to deliver their product on time. This is a big
problem and it happens most of the time on delivery. Aarong charges higher price relatively
than their other competitors as a result sometimes customers lose their interest to by product
from them. Its sales force or sales girls within the outlet are not properly trained up.
Sometimes they make customers disappointed by their attitude and customer doesnt feel
good to buy from there. Sometimes they suffer for financial problem, although its a rare
situation.
Opportunities
Aarong is very good at capturing the advantage of opportunities. It can go for new
distribution channel like it can make some joint venture with some other small Boutique and
sales its products in more places. Through that it can capture more market share in the
handicraft industry in Bangladesh. Aarong can expand its business globally. New market for
handicraft such as Europe and America are beginning to emerge. People are now trendier
about local events & functions like Pahela Falgun, Pahela Baisakh, Victory day,
Independence Day etc and they buy new and special products for these events. Aarong can
make new products to sell in those special occasions. According to the season change, people

are also changing their preference in buying products and considering this scenario Aarong
can produce products on the basis of seasonal variations.
Threats
Aarong doesnt have any big competitors right now. But they have some small competitors
like KayKraft, Anjans, Deshal, Jattra, Khubsurti, Rina Latif, OZ, Rang and some other
Boutiques established at Banani 11, who are taking their 32% customer and increasing in a
slow rate. Aarong always face price wars with their competitors. Its competitors have some
superior products like OGs Panjabi shape, Khubsurtis design of Salwar kamiz Rangs
Sharis color, which is decreasing Aarongs market share as well as sales. But now they are
repositioning their Brand to compete with them.