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Kohinoor Chemical Company (Bangladesh) Limited: Industry & Strategy Analysis of
Kohinoor Chemical Company (Bangladesh) Limited: Industry & Strategy Analysis of
Of
Kohinoor Chemical Company (Bangladesh) Limited
In the old days, when people went to abroad, they were given shopping lists that contained a
whole range of toiletries: soaps, shampoos, conditioners, face washes, creams, etc. In those
days the local toiletries market was not advanced enough to meet all the demands of the
people. But in the last decade things have changed drastically for the toiletries industry in
Bangladesh.
The switching cost between brands is very low here. This is also responsible for the
extreme competition.
I think, “Bargaining Power of Suppliers” is the most critical factor for the
profitability of the industry.
As raw materials are imported from abroad, the suppliers have great influence on the
industry. The price of raw materials are determined by the suppliers solely. Changes
in the price of raw materials impacts drastically on the price of the finished products.
Exchange rates, import tariff, import quota also have influence on the raw materials
price.
All of these efforts will help to retain the profitability of the industry.