Managerial Report on

WALTON
DATE:05 th april,2017

Submitted to,
Rahnuma Sanjana(RSj)
Lecturer,
North South University
COURSE:MGT 210

Name ID
MALIHA MAHZABIN 1620417030
MD GOLAM SHAHRIAR 1620797030
NAZIA TASNEEM 1530154630
WASIF SAZZAD 1620118030
ASIF IMRAN 1620175030
MOHAIMINUL ISLAM ANAS 1620983030
Section: 23
 Letter of Transmittal
5TH April, 2017
Rahnuma Sanjana(RSj)
Lecturer
Department of Management
North South University
Dhaka
Subject: Application of handing over our report on ‘WALTON’

Respected Faculty,
With due respect, we, the students of section 23 have made a report on‘WALTON’ under the
course MGT 210.
Though we are in learning curve, this report has enabled us to gain knowledge about company
management. It was an extremely challenging and interesting experience. Thank you for your
supportive consideration for formulating an idea. Without your inspiration, this. project would
have been an incomplete one.
.
Finally, we would be thankful once again if you kindly give your advice on our effort.

Sincerely Yours.
 Acknowledgement
We have taken efforts in this report. However, it would not have been possible without the
help of many individuals. We would like to thank those who have contributed to it a lot.
Unfortunately, the list of expression of thanks, no matter how extensive is always incomplete
and inadequate. This acknowledgement is no exception.
At first, we would like to thank Almighty Allah for giving us the strength and perseverance to
complete this project. Thanks must go to the group members, whose tireless patience for
creative work, and long hours made the project possible under the pressure of knocking
deadline.
We are greatly thankful to our honorable faculty Ms.Rahnuma Sanjana who guided us
throughout this process, without her counseling this report could not have been possible and
well organized. And finally, we are indebted to Walton executives who supported us and shared
so much information with us.
 Executive Summary
The electronics and electrical sector of Bangladesh has conceded through different huddles & obstacles
and now has reached a stage where it can compete with all its competitors in price and quality as well as
assortment. In this scenario, ‘Walton Company’ started a new era at the industrial level of Bangladesh.

An organization’s success relies upon some important elements and they are skilled employees at
different organizational levels, good relationship at different level workers, quick response to market
change, better IT facilities, better financial standing and a strong management team.

Here, we’ve discussed about the SWOT Analysis with internal and external analysis, BCG Matrix
showing their Stars, cash Cows, Dogs and Question mark products of
Walton Company. We also discussed about what strategy they should take
to remain competitive in the market. Another important thing we talked about is Porter’s five
forces model. Finally we have discussed about the locating of this company outside the country.

After all discussions we can say that this company has those qualities mentioned above . Today
they have high growth rate, high market share with loyal customers and faithful employees.
Most importantly, ‘Walton Company’ has a strong management system, Strong custom
relationship, Goodwill and competitive advantages over competitors.
We tried our best to implement all the knowledge that we gained throughout the semester and use
management tools to analyze the organization.
 Table of Contents
Short Description of the Company………………………………………………………………………………………………………….7

SWOT Analysis………………………………………………………………………………………………………………………………………8
INternal strategy analysis

External strategy analysis

BCG Matrix………………………………………………………………………………………………………………………………………9

Porter’s Five Forces Model of Walton......................................................................................................11

APPLYING COMPETITIVE STRATEGY..........................................................................................................12

Walton at every home -“Leader in cost’’..................................................................................................12

A short price comparison of Walton products with other companies.....................................12

Locating to other
country…………………………………………………………………………………………………………………………13

Reason…………………………………………………………………………………………………………… 13
Conclusion………………………………………………………………………………………………………13
Bibliography……………………………………………………………………………………………………. 14
Appendix………………………………………………………………………………………………………….15
Short Description Of The Company

Walton is a Hi-Tech Industry in Bangladesh. Here is a short description

Type: Private Limited Company
Industry: Conglomerate
Founded: 1977
Headquarters: Jiban Bima Bhaban (Level-3), Dhaka, Bangladesh
Key People: S.M Nurul Alam Rezvi (Chairman)
Products:
Consumers Electronics, Automobile,Mobile Phone, Home Applicances
Number of
Employees: 16000+

Slogan: Made in Bangladesh

 SWOT Analysis
Internal Strategic Analysis:
STRENGTH (what the company is good at)

Walton has maintained the largest market share in electronic sector in Bangladesh. Walton provides
service all over the country and has specific service points as well as retail sales outlets. Walton has been
maintaining the customer satisfaction since very beginning and providing quality products at a low price.

Weakness: (where company is lacking)

The lacking of skilled workforce in technical sectors and skilled manpower in marketing sector is very
much visible. For this reason Walton can’t monitor the market position properly. Again, the accessories
used in the new product aren’t easily collectable and available. Moreover, smartphone’s quality of
Walton is a bit low than other companies especially considering the battery life, ram & camera.

External Strategic Analysis:

Opportunities: (What Walton can use to make them better?)

Bangladeshi people are very much patriotic. In that sense Walton already achieved customer attraction
as a local brand. Another opportunity is getting skilled people isn’t so much expensive in Bangladesh. So,
Walton can easily expand the opportunity and get more skilled people for research and development.

Threats:

Currently, in Bangladesh there are too many foreign products available in market. Also they’re providing
same types of products which don’t differentiate anything. In that sense Walton doesn’t provide quality
after sale service. The political instability has also an impact on market. If they fail to fulfill the public
demand with proper quality, the sale will reduce to a large extent.
 BCG MATRIX

In Bangladesh the electronic market is ever rising and has a variety of products. Walton has taken a
major place in the electronic appliances market with its various types of products.

Evaluation of products of Walton BD by BCG matrix:

 FREEZE
 TELEVISONS
 AC
 MOBILE PHONES  RICE COOKER
 BLENDER  FAN
 OVEN

 WASHING MACHINE  MOTOR CYCLE

Product Name SBTU Market Relative

Growth rate Market Share
Freeze, LED STAR 90% 95%
TV, AC,
Blender,
Mobile Phone
Washing Cash Cow 55% 70%
Machine
Rice Cooker, Question 50% 45%
Oven, FAN Mark
Motor Cycle Dog 25% 40%

Walton’s products Market Study

 STARS: (The most important Product)

According to market research we have enrolled TV, freeze, Ac, mobile phone and blenders as the most
important product of Walton electronics.

The basic reason of being important products is the high market share and growth. The countrywide
Walton’s market grew higher and higher for these products over year. At present the Television sets,
AC, Freeze has the high market demand in hotels, hospitals, bus counters because of their low pricing
and high quality.

Freeze the first local electronic product and its cost is lower than the other outdoor brands. Again, most
of the housewives are more likely to buy Blenders for the reasonable price. So Walton has successfully
captured the market for these tools.

 CASH COW:
As given at the matrix Walton’s cash cow product is Washing machine. The reason being cash cow is it
has high market share but very low growth rate as now competitive companies like singer and whirlpool
has the higher impact on growth and market share .

 QUESTION MARK:
Microwave Oven & rice cookers which are making the company’s managers confused as the have few
market share and average growth rate in market to their competitors both indoor as well as outdoor
companies. So managers are at dilemma whether to invest on these products or selling them off as dog
products.

 DOG: (THE WEAKEST PRODUCT)

According to the market research we enlisted the “Motorcycle” as a Dog and the weakest
product. The reason is its market share and growth rate both are low. The selling of Motorcycle
is gradually declining. So as we can see it has a little market share and zero growth rate
compared to their competitors. So Walton has decided to sell it off.
 Porter’s Five Forces Model of Walton
WALTON has always been a renowned and competing brand of Bangladesh. Walton always has the
strive to win and its strategies has always been to offer best quality products at lower prices. Walton’s
most competing products are their electronics products.

A model of Porter’s five forces are shown below-

 Threats of new entrance (HIGH)

Threats of new entrance are very high because electronic products are evolving and new technologies
are being discovered. So, new brands are more likely to form and foreign brands may also enter
Bangladesh.

 Threats of substitute (HIGH)

Threats of substitutes are very high because there are many other brands present in Bangladesh with
the same offerings as Walton. For example- Sony, Samsung, Toshiba, sharp, vision etc.

 Bargaining power of buyers (LOW)

Bargaining power of buyers is Low because Walton product’s prices are preset so buyers cannot bargain
for lowering the prices.

 Bargaining power of suppliers (MEDIUM TO HIGH)

Bargaining power of suppliers is Medium to High as Walton have many suppliers from different areas
and there are many suppliers available in market place. So different suppliers have different bargaining
powers.

 Intensity of rivalry among current competitors(HIGH)

Intensity of rivalry among current competitors is very High as there are many other brands who are
offering same quality products as Walton at same prices.
 APPLYING COMPETITIVE STRATEGY

What strategy should Walton take?

After analyzing the SWOT, BCG matrix and porter’s five forces of ‘Walton BD’ we strongly suggest that
Walton should take “Cost Leadership Strategy”

Walton at every home -“Leader in cost’’

How & why Cost Leadership Strategy is effective for Walton?
The present competing environment Walton provides quality products at very low price. No other
company can give a product with this feature at same price like Walton does. In the parameter of SEC
(Social Economic Class) the majority of people in Bangladesh are B (middle class) and C1 (Lower middle
class). Their average income is very low and limited that they can’t afford to buy electronic products
easily. So, “Walton” is the only company who meets customer’s demand at lowest possible cost.

Demand for pricy smartphones and electronic tools, mainly in developing country like ours is slow. So
for the demand for less expensive “Walton” product is booming.

A short price comparison of Walton products with other companies

Products WALTON LG SONY

Refrigerator (10 ft.) 26,200 BDT 35000 BDT 92OOO BDT
TV (29 color TV) 18500 BDT 28350 BDT 26350 BDT

In all two products in which we have done market research, it is evident that Walton is providing the
customers with the least expensive product. It is vital for Walton as price is the only tool where they’ve a
superior advantage over other brands.

Since its target market is middle-income people, the price of their product is comparatively lower than
those of competitors. So, “Cost Leadership Strategy” helps the company greatly in a price sensitive
consumer market.
 In which country we do prefer to take Walton….
Walton receives “International Standardization Certification- ISO” for quality management system.
Demand of Walton products is now growing in different countries of the world apart. Currently Walton
exports its products to 20 different countries of the world with this success we can easily establish a
permanent branch to another country.

As the international marketing wing of Walton has already strengthened so we can enter the market of
southern ASIA. We primarily want to set up some outlets at BHUTAN & NEPAL.

WHY DO WE PREFER TO TAKE PLACE WALTON IN THESE COUNTRIES:

Our main reason to establish the business over these countries because the brand ‘Walton’ already has
been awarded for the excellence in home appliance in BHUTAN & NEPAL and we export the machineries
to these countries. So it becomes easier for Walton to capture the market share as a known brand.
Again, our labor and manufacturing cost is low than other country. Moreover, BHUTAN & NEPAL is also
developing country like ours. So Walton can easily meet the customer’s satisfaction at the lowest rate as
well as a quality product.

So, spreading the whole business in BHUTAN & NEPAL will increase the revenue.

Conclusion

The company has been running its business with good reputation since
1977.Establishment of Walton to manufacture Refrigerator & Freezer, Air conditioner
and motorcycle and so on in Bangladesh is a milestone in the path of success and
reputation of the brand WALTON. For Bangladesh, Walton has become a company to be
proud of in the export arena. Walton has truly redefined Bangladesh from being a
consumer country to a product country for home applicances.
 Bibliography

Book: Principles of Management Eleventh Edition.

Primary research
WALTON SHOWROOM (JOMUNA FUTURE PARK BOSUNDHORA, DHAKA)

Secondary research from Internet.

Accessories. (n.d.). Retrieved December 11, 2016, from Waltonbd.com:
http://www.waltonbd.com/index.php?route=product/catagory&path=24_189
Appendix