Assignment 1

Analyzing the strategically relevant factors for

bKash Limited
Course Name: International Strategic Management
Course No: EIB-516/531
Date of submission: 29th Octbober,2020

Submitted To:
Dr. Chowdhury Saima Ferdous
Professor
Department of International Business
University Of Dhaka

Submitted by:

Name ID
Zannatul Ferdous Sharmin 801413088
Farhana Akter 801723068
Joyanta paul 801724066
Md. Ibrahim Asif 801827032
1. Define the industry you have chosen?

I have Chosen bKash which is belongs to the industry of mobile banking or mobile financial
service. It is a part of country’s financial system and the industry aims to enable 115.627 million
individual to enjoy some of the banking services such as payment, fund transfer etc from their
mobile phone. Bangladesh Bank is the sole regulatory body and this industry is closely linked to
the banking industry of Bangladesh. However, innovative and sophisticated process of the service
has added a new dimension in financial service. Hence, it has created a new industry in
Bangladesh.

2. Identify the competitors?

This mobile financing industry is growing very fast . Now bKash and DBBL mobile banking
dominated the market. This two are covering the market very fast beside this they are try to include
their market share before more computation. The mobile financing industry there are some banks
who are offering mobile banking those are Nagad, United Commercial Bank, Trust bank, Islami
Bank Bangladesh Ltd,.They are all very much potential competitors in this industry.

3. Define the sectors in which your company is working?

bKash limited is working in many diversified secotor like transfer money from one to another,
Credit card bill payment, utility bill payment, Mobile recharge, Zakat and Donation collection on
behalf of respective institutions. Insurance premium collection, Loan disbursement and others
Government assisted disbursement directly to mass people are the main working sectors of bKash
limited.
4. Define the PESTELE?

PASTLE represents political, economic, social, technological, legal and ecological and is utilized
for business and vital arranging, promoting arranging, hierarchical change, business and
administration advancement.

Political: political elements positively affect the industry. Political steadiness is uncommon in
Bangladesh inward questions between ideological groups consistently make a tension on the
economy.

Financial aspects: Financial aspects factor positively affect industry as the current economy of
Bangladesh is being unstable. Dispute being a nation with political flimsiness, helpless foundation,
debasement and moderate execution of financial aspects changes.

Social: BKash versatile budgetary assistance essential characteristics can help the unbanked
conquer obstructions and receive the rewards of money related help.

Technological: Mechanical elements are applicable to developments in innovation that may

influence the tasks of the business and the market valuably or unhelpfully.

Lawful: These variables have both outer and inside sides. there are sure laws that influence the
business climate in a specific nation while there are sure arrangements that ventures keep up for
themselves.

5. Strategically relevant factors that has an impact on bKash

Political Factors that Impact bKash:-

Threat of Terrorist Attacks –

We believe in the world of post 9/11, corporations such as Bkash Mfs have to live with operating
under the shadow of a terrorist attack. The prudent policy should be to take insurance and other
types of hedging instruments to mitigate the losses occurring because of the terrorist attacks.

Economic Factors that Impact bKash:

Financial Market Structure and Availability of Capital at Reasonable Rates –

The quantitative easing policy of Federal Reserve has led to liquidity flooding all across the global
financial markets. Bkash Mfs can borrow cheaply under such circumstances. But this strategy
entails risks when interest rate will go up.

Price Fluctuations in both Local and International Markets –

Compare to the level of quantitative easing in last decade the prices of Bkash Mfs products and
prices of overall products have remained sticky in the US market. Bkash Mfs should consider the
fact that at deficit levels of United States in an emerging economy can lead to rampant inflation
and serious risks of currency depreciation.

Inflation Rate –

The inflation rate can impact the demand of Bkash Mfs products. Higher inflation may require
Bkash Mfs to continuously increase prices in line of inflation which could lead to lower levels
brand loyalty and constant endeavors to manage costs. Cost Based Pricing could be a bad strategy
under such conditions.

GDP Trend & Rate of Economic Growth –

The higher GDP growth rate signals growing demand in the economy. Bkash Mfs can leverage
this trend by expanding its product range and targeting new customers. One way to start is by
closely mapping the changes in – consumer buying behavior and emerging value proposition.

Level of Household Income and Savings Rate –

Increasing consumption and stagnant household income in United States had led to credit binge
consumption. It has decimated the culture of savings as people don’t have enough to save. Bkash
Mfs needs to be careful about building marketing strategy that is dependent on “Purchase on
Credit” consumer behavior.
Work Force Productivity –

Work force productivity in US has grown by 25-30 % in last two decades even though the salaries
are not reflecting those gains. It can enable Bkash Mfs to hire skilled workforce at competitive
salaries.

-Social Factors that Impact-BKash:-Immigration Policies and Level of Immigration – What are
the immigration policies of the country, what is the level of immigration, and in which sectors
immigration is encouraged. This will enable the Bkash Mfs to determine – if required can it hire
talent globally to work in that particular market.

-Attitude towards Health & Safety – The attitude towards health and safety is often reflected in the
quality of the products and cost structures of manufacturing processes. Bkash Mfs has stringent
norms for health and safety norms so in emerging economies it may have to compete with players
who don’t have high cost structures that of Bkash Mfs.

- Gender Composition in Labor Market Bkash Mfs can use gender composition of labor market to
understand the level of liberal nature of the society, women rights, and women’s say in matter of
societal issues and consumption decisions. The gender composition of labor market is a good
indicator of disposal income of household, priorities of the households, and related needs.

- Attitude towards Leisure – Bkash Mfs should conduct an ethnographic research to understand
both attitude towards leisure activities and choice of leisure activities. Experience economy is one
of the fastest growing segments both among millennials and among baby-boomers.

-Birth Rate – Birth rate is also a good indicator of future demand. USA has avoided the European
Union style stagnant economy on the back of slightly higher birth rate and higher level of
immigration.

-Attitude towards Authority – Various cultures in different part of the world have different attitude
towards authority. In Asia authority is respected while in west it is something to rebel against.
Bkash Mfs should carefully analyze the attitude towards authority before launching a marketing
campaign for its products and services.
-Attitude towards Savings – The culture of saving in US and China is totally different where
savings rate in China is around 30% , it is well below 15% in United States. This culture of
consumption and savings impact both type of consumption and magnitude of consumption.

- Education Level in Society – Education level of the society impacts both the quality of jobs and
level of income. High level of education often results in better jobs, higher income and higher
spending on complex and aspirational products.

Technological Factors that Impact bKash: Financial Technology Innovation for Emerging
Markets

- Intellectual Property Rights and Patents Protection – Before entering new market Bkash Mfs
should focus on the environment for intellectual property rights.

-Research and Development Investment Levels – If there is high level of investment in technology
development sector then there are high chances of building a self sustaining ecosystem that drives
innovation. Bkash Mfs can leverage such a situation to hire the best people in business.

-Acceptance of Mobile Payments and Fintech Services – One of the areas where US are lacking
behind China is Mobile Payments. Bkash Mfs should assess what are preferred choice of mobile
payments in local economy and chose the business model based on it.

-E-Commerce & Related Infrastructure Development – As E-Commerce is critical for Bkash Mfs
business model. It should evaluate the e-commerce infrastructure, technology infrastructure etc
before entering a new market.

-Transparency & Digital Drive – Bkash Mfs can use digitalization of various processes to
overcome corruption in the local economy.

-Empowerment of Supply Chain Partners – Bkash Mfs should analyze areas where technology can
empower supply chain partners. This can help Bkash Mfs to bring in more transparency and make
supply chain more flexible.
-Cost of Production and Trends – Bkash Mfs should assess - What are the cost of production trends
in the economy and level of automatization. We at EMBA Pro believe that in near future the sector
most disrupted by technological innovation is manufacturing and production.

-Preparedness for 5G Related Infrastructure – Countries across the world are trying to prepare
themselves to install 5G infrastructure. Bkash Mfs should assess to what level the local market is
prepared to roll out the 5G connectivity.

Environmental Factors that Impact bKash:

-Level of Consumer Activism Regarding Environmental Concerns – Bkash Mfs needs to know the
level of consumer activism regarding environmental concerns is. It will help Bkash Mfs in b-oth
developing environmentally friendly products and thwarting PR stumble blocks.

- Influence and Effectiveness of Environmental Agencies – The role of environment standards

enforcement agencies is critical in safeguarding norms. But often in emerging countries these
agencies delay the process as a tactic to extract bribes. Bkash Mfs should be aware of presence of
such practices in a country.

-Influence of Climate Change – How climate change will impact Bkash Mfs business model and
supply chain. For example if the supply chain is not flexible it can lead to bottlenecks if shipments
from one part of the world are delayed because of sudden climate shift.

-Environmental Standards and Regulations both at National & Local Levels – Often the
environment policy at national and local level can be different. This can help Bkash Mfs in
numerous decisions such as plant location, product development, and pricing strategy.

-Paris Climate Agreement and Commitment of National Government under the Agreement – What
are the commitments of the country under the Paris Agreement and what is the general level of
consensus regarding Paris Climate Agreement in the country. For example Trump not standing by
US commitments created an environment of uncertainty.
Reference:

1.Tawfiq,Mohammad, (2017) The Bkash Banking Company And Summary Of It'S Marketing
Strategy[Online].Available at: https://www.studocu.com/row/document/university-of-
dhaka/fundamental-of-marketing/mandatory-assignments/the-bkash-banking-company-and-
summary-of-its-marketing-strategy/1944525/view Accessed: 29 Oct 2020)

2. Ishtiaq Mahmood, Marleen Dieleman, Narmin Tartila (2018), "bKash: Financial Technology
Innovation for Emerging Markets Harvard Business Review Case Study.