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Assignment on

“Chaldal Business Development Plan”

Unit No. – 32 Unit Title: Business Strategy

Submitted to Anika Zaman Tasneem Business School Lecturer BAC International Study Center

Submitted by Mollah Mobasshir Royhan HND in Business 2016421002 BAC International Study Center

Submission date December 5, 2016

Letter of Transmittal: 13th November, 2016 Anika Zaman Tasneem Lecturer Business School BAC International Study Centre Subject: Submission of Assignment on Chaldal Business Development

Honorable Madam, It is my great pleasure to submit the assignment report titled “Chaldal Business Development Plan” as per requirement of HND program of BAC International Study Center. I have completed analyzing Chaldal as a business development manager.

The HND program has given me the opportunity to learn about different strategic aspects of any organization. Before facing the real economic world, I have gathered a pre idea about the business strategy of organizations. I have tried to exert all things that I gathered through working with the group. Both the primary and secondary data have been used to prepare this report.

I have acquired the valuable experiences through this HND under supervision of you. I would like to thank you and the BAC for giving me the opportunity to complete my HND program and for helping me to prepare the report.

Sincerely Yours, ……………………………. Mollah Mobasshir Royhan HND Program 2016 (Last Semester) Roll No: 2016421002 Department of Business BAC International Study Center

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Acknowledgement:

I would like to thank all the persons from the bottom of my heart who have helped me in making this assignment. Without them it would have been impossible and tough for me to complete.

I am very thankful to Kashfiya Afrin, Lecturer, BAC International Study Center & Anika Zaman Tasneem, Lecturer, BAC International Study Center for guiding me to the basics of how to write a report and how to arrange it accordingly. Also, I would like to show my gratitude to my friends, who have directly or indirectly helped me to complete my report.

Last but not the least, thanks to Allah and my family for supporting me.

Thanking You, ……………………………. Mollah Mobasshir Royhan

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Table of content:

Content

Page

Letter of Transmittal------------------------------------------------------------------------

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Acknowledgement--------------------------------------------------------------------------

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Executive Summary-------------------------------------------------------------------------

1

Introduction----------------------------------------------------------------------------------

2

Company Profile-----------------------------------------------------------------------------

3

Porter’s Five Forces-------------------------------------------------------------------------

4 to 6

Ansoff’s Matrix------------------------------------------------------------------------------

6 to 7

Conclusion-----------------------------------------------------------------------------------

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Bibliography---------------------------------------------------------------------------------

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Figure

Ansoff’s Matrix------------------------------------------------------------------------------

Page

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Executive Summary: Chaldal is one of the leading e-commerce grocery service provider across Dhaka, Bangladesh. This report is made to know about the position and strength it holds as of now.

Going through the report, all the key points about who are the strength for Chaldal and how Chaldal can improve their business staying as e-commerce. All the major strategy that might help the organization is also discussed.

In these assignment, suggestions about some strategies are spoken off. Chaldal may, take supply upon their hand, make pricing of goods cheaper, decrease delivery time. The best suggestion for Chaldal will be to expand their business.

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Introduction: This report is done on an e-commerce business organization known as Chaldal. They are grocery service provider. In this report, two things were strategized to find out how, the company, Chaldal could improve on their business and where the strength lies in position and competition wise. The two strategies that were used are:

A. Porter’s Five Forces: The five forces include competition, supplier strength, customer power, the potential for new companies joining the industry, and the threat of substitute products.

B. Ansoff’s Matrix: A strategic planning tool that helps to provide a framework to executives, senior managers, and marketers devise strategies for future development.

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Company Profile: Chaldal.com is an online shop located in Dhaka, Bangladesh. It is a service rooted on the thinking that shopping for necessities should not be a problem. At Chaldal, it is believed that time is valuable to our fellow Dhaka residents, and that they should not have to waste hours in traffic, bad weather and wait in line just to buy basic necessities like eggs! This is why Chaldal delivers everything needed right at your door-step and at no or less additional cost. Chaldal is a work in progress, and they hope to get better over time. They are firm believers in using technology to improve Bangladesh society, and we will continue to invest all their effort in pushing the boundaries of technology in this country.

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Porter’s Five Forces: Porter’s five forces is a very powerful tool to figure out where the true strength lies for the organization. This is helpful because it will help Chaldal to understand both the strength of your current competitive position and the strength of a position Chaldal is considering moving into.

1. Supplier Power: Chaldal has a very huge source of suppliers in their arsenal. They sometimes have products which cannot be found in normal retail shops or supermarket. Chaldal holds their own inventory and dispatches according to buyers need. They also get their supplies in daily basis. Suppliers power is high. Without supply and correct price Chaldal will crumble. Supplier will have the power to bargain for price and if does not come to an agreeable term with Chaldal, supplier will move on to distribute their product elsewhere. Chaldal does not only require consumer goods, many other retail shops are also in line with Chaldal. Chaldal should buy it from the source and make a supply for their own. Chaldal can also use their own private transportation to get their supply working. Very early morning gather supply and by 10am start their distribution.

2. Buyer Power: As an e-commerce business, Chaldal holds a very large customer range as it is in the worldwide-web. It gives access to many types and categories of citizen’s. it can also be said that Chaldal holds a very significant control over buyers because they ensure that, the price they are offering is less than from the retail shop buyers usually buy it from. Plus, they get a home delivery for free if they order above 200 takas. Buyer power is low but will have a choice and type of product to choose from. As an ecommerce business, Chaldal does not give buyers the right to bargain for price. Nor does the buyer have the right to check the product quality or expire date. Chaldal may give links of other shops with their shop, so that it helps buyer to know that, low price is always ensured by Chaldal. When dispatching order, Chaldal should also make sure that product must have at least 3 months of expire date.

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3. Competitive Rivalry: There are very less e-commerce supermarkets in Bangladesh. Meena Bazar and Agora has recently introduced themselves in the market but is lacking the quality and product pricing for buyers. Therefore, suppliers have less power and Chaldal is holding a massive strength over this e-commerce business. Competitive rivalry is low as there are no solid grounded e-commerce supermarket in Bangladesh yet, rather than Chaldal. Few physical supermarket companies are trying to come to e-commerce but people do like to buy it from their physical shops rather than website. Chaldal should not build over confidence by thinking they are the only one in this business line. They should maintain a good moral value with their customers. Build some dedicated customers and do a survey with them for improvements.

4. Threat of Substitution: People can always go to local bazaar and buy the grocery. In society, local bazaars are dirty and pricing is very fluctuated. So, buyers might get carried away by thinking Chaldal is best for grocery shopping as price and quality is very sustainable. The possibility for threat of substitution is moderate because now a day many supermarkets with local bazaar are growing around the local colonies. People don’t need to go much far away to buy grocery or vegetables or fruits or meat or fish. Chaldal should decrease their delivery time and freshness of the product as sometimes, people also do fail to get fresh product from any local bazaar.

5. Threat of New Entry: Chaldal is upgrading and expanding its range as we speak but new competitors like Shwapno might have an advantage over Chaldal. Shwapno has physical supermarket and is in the supermarket business before Chaldal. Still Chaldal holds a super strong foundation in the e-commerce business. Company’s trying to enter e-commerce business will have a pretty easy way. There will be less barriers as people are very use to internet now and have the idea of how to buy from internet. People are sophisticated and have good understanding about how to sell in the internet. Moreover, this platform will give a huge customer line of interest for any new comer.

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Chaldal should upgrade as time passes. Build more small warehouses where there is large sell. This will help Chaldal to satisfy customers by reducing delivery time and customers will look for other e-commerce market when there is Chaldal.

Ansoff’s Matrix: Strategic marketing planning instrument that links a firm's marketing strategy with its wideranging strategic direction and presents four substitute growth strategies as a table (matrix).

These strategies are to be looked for while developing Chaldal: 1. Market penetration: by pushing existing items in their present market sections. 2. Market development: by developing new markets for the current items. 3. Product development: by developing new items for the current markets. 4. Diversification: by developing new items for new markets.

Fig 1: Ansoff’s Matrix

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Chaldal has areas where they can use Ansoff’s Matrix to simply build their empire in a more solid ground. Here are some ways:

a) Market Penetration: Pricing is the only thing that will give them the market penetration. Chaldal should look for ways to reduce price and give the best quality for product possible. Plus, Chaldal can also give offer that they give in TV advertisement right away, so that people are aware of the upgrades that Chaldal has to offer.

b) Product development: Chaldal has many products and categories, foreign and local, common and uncommon. What Chaldal does not have that much are electrical goods. They can first set off by buying it from shops and selling them (without holding an inventory). They can also start will small products like, mobile phones, chargers, mouse of a computer, and so on. When they see, they have got a good base line building up, Chaldal may invest in this field and start a new category in their business line of work.

c) Market development: Chaldal does not supply to some parts of Old Town in Dhaka and also does not do business outside Dhaka. What they can do is, expand their business to states after Dhaka and make their brand more widely spread with their business. They should also cover the full Dhaka by now and cover the areas there is still no Chaldal.

d) Diversification: Chaldal does not have any diversification strategy to follow for development.

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Conclusion: After completing the report, I can say that Chaldal is doing a good business in Dhaka, Bangladesh but has no wish to expand to other states. They also didn’t even cover the whole Dhaka city yet, where as they stated their business in 2013. Chaldal is also not looking forward for upgrading. In the above, I have discussed ways Chaldal can improve their business. As a matter of fact, Chaldal is also doing very well so far and hope they tend to do so and keep some upgrade in mind.

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Bibliography: Chaldal (no date) About us. Available at: https://www.chaldal.com/t/AboutUs (Accessed: 1 December 2016).

David, F.R. (2006) Strategic management: Concepts and cases. 11th Edition. United States: Pearson/Prentice Hall.

Johnson, G., Whittington, R. and Scholes, K. (2014) Fundamentals of strategy pack. Harlow, United Kingdom: Pearson Education.

Mind Tools (no date) Porter’s Five forces: Assessing the balance of power in a business situation.

Available

at:

https://www.mindtools.com/pages/article/newTMC_08.htm

(Accessed: 1 December 2016).

Mind Tools (no date) The Ansoff matrix: Understanding the risks of different options. Available at: https://www.mindtools.com/pages/article/newTMC_90.htm (Accessed: 1 December 2016).

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