Bangladesh University of Professionals (BUP)

Faculty of Business Studies (FBS)

A TERM PAPER
ON
“Business Model of Speedos Line Automobiles..”
Course Name: Strategic Management
Code: MGT 8503

Submitted to

Major General Alauddin M A Wadud ( Retd.)

Professor ( Adjunct)
Faculty of Business Studies
Bangladesh University of Professionals (BUP)

Submitted by

Name Roll No
Md. Nahid 19020067
Md. Nayeem 19020069
T S M Nasim Imran 19020051
Md. Hafizul Alam 19020031
Shaheen Md Rafsun 19020061
Sanjida binte nasir 19020065
Section: A
Session: Jan 2019
Program: MBA (Professional)

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 LETTER OF TRANSMITTAL

August 25, 2020

Major General Alauddin M A Wadud ( Retd.)
Professor ( Adjunct)
Faculty of Business Studies
Bangladesh University of Professionals

Subject: Submission of term paper

Sir,
With due respect, We would like to inform you that, it’s an honor and great privilege for us to
be able to submit this term paper titled “Business Model of Speedos Line Automobiles.”
which was assigned to us as a prerequisite for the completion of our “Strategic Management”
course. We are truly grateful to you for giving us this topic for our term paper and it is a
pleasure for us to present this term paper under your kind supervision. This term paper is a
result of our best efforts. However, should your kind honor come across any unintentional
flaws then it would be our pleasure to answer for any clarification as your kind honor deem
necessary. In the circumstances stated above, we would truly appreciate if your honor is kind
enough to accept this term paper and oblige thereby. For this act of kindness, we shall remain
ever grateful to you.

Sincerely Yours,
Md.Nahid
Md.Nayeem
T S M Nasim Imran

Md. Hafizul Alam

Shaheen Md Rafsun

Sanjida binte nasir

Section: A, Session: Jan 19 MBA (Professional), BUP

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 DECLARATION

We hereby declare that the work has been done by ourselves and no portion of the work contained in this
term paper has been submitted in support of any application for any other degree or qualification of this or
any other university or institute of learning.

__________________
Md.Nahid

_________________________
Md.Nayeem

___ _____________________
T S M Nasim Imran

_________________________
Md. Hafizul Alam

_________________
Shaheen Md Rafsun

____________
Sanjida binte nasir

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 ACKNOWLEDGMENT

At first, we are very grateful to Almighty Allah for giving us the strength and knowledge to complete
this term paper.

For the completion of this report searching for websites, articles and related documents were
required. However, it was Honorable Professor (adjunct) Major General Alauddin M A Wadud
( Retd.) who played the important role by giving us an insight about the paper. We express our
profound indebtedness and gratitude to him, for his valuable advice that helped immensely in
preparing this paper. It would have been impossible to complete this term paper without his kind and
valuable guidelines.

Last but not the least we are also thankful to our fellow course mates, who helped us a lot to prepare
this paper.

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 Executive summary

This paper is made for the Term paper as required by Major General Alauddin M A Wadud ( Retd.). The
report is consisted of three major parts- company overview, Core Strategy and value chain analysis.

Speedos Line Automobiles to be one of the largest and renowned automotive industry. Its a sister
concern company of MIC group that is also renowned company in Bangladesh.. These are Highly
acceptable in our country. The mission of the SLA is giving quality full product and give after sales
service and the vision is become a one the leading automobile company in Bangladesh. SLA has
many strength because it’s a sister concern ltd of MIC group. Speedos Line Automobiles is
following differentiation strategy. A company that competes by offering unique products that are
widely valued by customers is following a differentiation strategy, product differences might come
from exceptionally high quality, extra ordinary service, innovative design, technological capability or
an unusually positive brand image.

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Content

s
Chapter 1: Company Profile Of MIC (Mirpur Innovative INC)....................................................9
1.1: About MIC:...............................................................................................................................10
1.2: Our Mission statement:.............................................................................................................11
1.3 : Our Vision Statement:..............................................................................................................12
1.4 : Objectives of this report:..........................................................................................................12
1.5: Goal:..........................................................................................................................................12
Chapter 2: Entering Into new business ‘Best Six’...........................................................................13
2.1 Automobile Industry:.................................................................................................................14
2.2 Our new industry ventures and name:........................................................................................15
2.3 New business target customers and their values........................................................................16
2.4 Workflow from industry to clients and vice versa:....................................................................18
2.5 Why MIC needs to Invest in Automobile business:...................................................................19
Chapter 3: Strategic Analysis...........................................................................................................21
3.1 Business environment................................................................................................................22
3.1.1 Internal environment...............................................................................................................23
3.1.2 External environment..............................................................................................................23
3.2 SWOT Analysis.........................................................................................................................24
3.3 Growth Strategy:........................................................................................................................26
3.4 Ansoff Growth Matrix................................................................................................................27
3.5 Market Penetration (Primary Strategy.......................................................................................29
Chapter 4 : Company Overview.......................................................................................................32
4.1 Background..............................................................................................................................33
4.2 The industry overview of "Speedos Line automobiles".............................................................33
4.3 A brief view of our business model on 'Speedos Line automobiles’:........................................34
4.4 Our Industrial statement:............................................................................................................35
4.5 Future Plans & Innovation over Rivals:.....................................................................................35
4.6 Marketing Strategies :................................................................................................................37
4.6.2 Market segmentation, Product Features and Benefits :...........................................................37
4.6.3 Product Differentiations :........................................................................................................39
4.6.4 Pricing :...................................................................................................................................39
4.6.5 Promotion :..............................................................................................................................40
4.7 Service process of Speedos Line Automobile:...........................................................................41
Chapter 5: Recommendation and Conclusion.................................................................................43

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 5.1 Recommendation and Conclusion..............................................................................................44

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Chapter 1: Company Profile Of MIC
(Mirpur Innovative INC)

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1.1: About MIC:

In today’s fast-moving environment, new trends are emerging fast. Digitalization and servitization
are two major global trends and can be identified in most, if not all, industries. Digitalization
concerns the integration of digital technologies into everyday life. MIC Innovation drives the modern
enterprise. Entrepreneurial leaders of successful firms thrive on capturing and capitalizing on the
opportunities created by new technologies, new markets, and new ways of doing business. But our
successfully promoting an innovative business culture within our organization? To stay relevant in
today’s dynamic marketplace, complacency is not an option. Companies must continually seek ways
to ideate, innovate, and push through new ideas from concept to implementation in order to remain
competitive. The MIC Innovative Organization is a fresh take on corporate innovation that prepares
managers and leaders to embrace the challenges and opportunities of creating a truly ambidextrous
enterprise one that is capable of both entrepreneurial opportunity development and excellent
execution. The program provides the frameworks and tools for executives to capitalize on the trends
and opportunities of today’s rapid innovation cycles. The program empowers us to be a
transformative leader by designing our own personal innovation glide-path.

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Chairperson of MIC

The Chairman of MIC ( Mirpur Innovative INC), which is a multinational renowned

company situated in Mirpur-12, is Major General (Retired) Prof. Alauddin M A
Wadud, BP. Being a self driven chairman he holds this position nearly 12 years.
Besides that holding this challenging position for so many years , his another identity
is Professor of 'Master of Business Administration' (MBA) degree program in one of
the most reputed universities named 'Bangladesh University Of Professionals' (BUP).

1.2: Our Mission statement:

The mission of MIC is to innovate not only our products but also how we service and communicate
to our shareholders. We intend to provide transparency to ensure products are appropriately valued
and traded in the market, and offer a diversified selection of investment strategies to facilitate what
we believe to be true diversification for our customers. and for which we offer our customers a very
special personalized after sales-service with absolute and non-compromising ‘‘QUALITY’’ with
‘‘CONFIDENCE’’.

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1.3 : Our Vision Statement:

“Make commerce better for everyone so business can focus on what they do best: building and
selling their products.”

1.4 : Objectives of this report:

 To study the business model of Speedo Line Automobiles.

 To dive deep into the brand-new venture as mentioned in the case study.

 To observe and analyze the competition in the market.

 To develop a new business model based on available information.

 To point out the obstacles and predict the what’s next.

 Recommendations for the company to adopt so that they can have better strategies for their new
venture.

1.5: Goal:

As one of the largest private automobile company in Bangladesh Speedo Line has a goal. Their goal
is 'To be the No. 1 in the transport sector of the Country.  That’s why they are working for and
delivering high efficiency Car all over the Bangladesh.

Speedo Line Automobile company in Bangladesh has a goal. Their goal is 'To be the No. 1 in the
transport sector of the Country.  That’s why they are working for and delivering high efficiency Car
all over the Bangladesh.

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Chapter 2: Entering Into new business
‘Best Six’

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2.1 Automobile Industry:

Automobile is a wheeled motor vehicle used for transportation. Most definitions of cars say that they
run primarily on roads, seat one to eight people, have four tires, and mainly transport people rather
than goods.

Cars came into global use during the 20th century, and develops economies depend on them. The
year 1886 is regarded as the birth year of the modern car when German inventor Karl Benz patented
his Benz Paent –MotorWagen. Cars became widely available in the early 20th century. One of the
first cars accessible to the masses was the 1908 Model T, an American car manufactured by the Ford
Motor Company. Cars were rapidly adopted in the US, where they replaced animal- carriges and
carts, but took much longer to be accepted in Western Europe and other parts of the world.

In November 1881, French inventor Gustave Trouvé demonstrated the first working (three-

wheeled) car powered by electricity at the, international exposition of electricity. Although several
other German engineers (including Gottlieb Daimler, Wilhelm Maybach, Karl Benz and Siegfried
Marcus) were working on the problem at about the same time generally is acknowledged as the
inventor of the modern car.

In 1879, Benz was granted a patent for his first engine, which had been designed in 1878. Many of
his other inventions made the use of the internal combustion engine feasible for powering a
vehicle. His first Motorwagen was built in 1885 in Mannheim, Germany. He was awarded the patent
for its invention as of his application on 29 January 1886 (under the auspices of his major
company, Benz & Cie., which was founded in 1883). Benz began promotion of the vehicle on 3 July
1886, and about 25 Benz vehicles were sold between 1888 and 1893, when his first four-wheeler
was introduced along with a cheaper model. They also were powered with four-stroke engines of
his own design. Emile Roger of France, already producing Benz engines under license, now added
the Benz car to his line of products. Because France was more open to the early cars, initially more
were built and sold in France through Roger than Benz sold in Germany. In August 1888 Bertha
Benz, the wife of Karl Benz, undertook the first road trip by car, to prove the road-worthiness of her
husband's invention.

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The automotive industry began in the 1860s with hundreds of manufacturers that pioneered
the horseless-carriage. For many decades, the United States led the world in total automobile
production. In 1929, before the great depression, the world had 32,028,500 automobiles in use,
and the U.S. automobile industry produced over 90% of them. At that time the U.S. had one car per
4.87 persons. After World War 2, the U.S. produced about 75 percent of world's auto production. In
1980, the U.S. was overtaken by Japan and then became world's leader again in 1994. In 2006,
Japan narrowly passed the U.S. in production and held this rank until 2009, when China took the top
spot with 13.8 million units. With 19.3 million units manufactured in 2012, China almost doubled
the U.S. production, with 10.3 million units, while Japan was in third place with 9.9 million
units. From 1970 (140 models) over 1998 (260 models) to 2012 (684 models), the number of
automobile models in the U.S. has grown exponentially.

Cars have controls for driving, parking, passenger comfort, and a variety of lights. Over the decades,
additional features and controls have been added to vehicles, making them progressively more
complex, but also more reliable and easier to operate. These include rear-reversing cameras, air
condition, system, an. Most cars in use in the 2010s are propelled by a, fueled by
the combination of fossil fuel. Eclectic Cars, which were invented early in the history, became
commercially available in the 2000s and are predicted to cost less to buy than gasoline cars before
2025. The transition from fossil fuels to electric cars features prominently in most climate change
mitigation scenarios.

The personal benefits include on-demand transportation, mobility, independence, and

convenience. The societal benefits include economic benefits, such as job and wealth creation from
automobile industry, transportation provision, societal well-being from leisure and travel
opportunities, and revenue generation from the taxes. People's ability to move flexibly from place
to place has far-reaching implications for the nature of societies. There are around 1 billion cars in
use worldwide. The numbers are increasing rapidly, especially in china, japan and other new
industriazed country.

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 2.2 Our new industry ventures and name:

Our new Industry Ventures will establish by Mirpur Innovative Inc. Our new Venture
Company (speedo line automobile sister concern of MIC. The Fund focuses on investments in
automobile business specializing in the development of customer’s services for the automobile
industry.

2.3 New business target customers and their values

A target market is a specific group of people you have decided to target with your products or
services. It could be a large market or a niche market. This group also includes specific customers to
whom a company directs its marketing efforts. A target market is one part of the total market for a
good or service. The auto mobile company to establish their individual brand images and build up
their personalities in the minds of consumers. To target these various audiences, car manufacturers
market their products in specific ways, catering to the emotions, desires, and needs of the typical
consumer.

Part of the success of selling a good or service is knowing to whom it will appeal and who will
ultimately buy it. That's why businesses spend a lot of time and money to define and monitor its
target market. That's because not all products and services are meant for every consumer, who are
generally cautious with their money. As a business person it is very important to know our target
market. Below we are going to discuss some of the target customer market for our automobile
company.

 Just getting around

 Family needs
 I’ve made it
 Environmentally aware
 Second family car

Just getting around

Consumers in this particular market segment view cars as having a functional benefit only. They do
not perceive cars to be status symbols and do not see the value in paying extra for quality inclusions,
a bigger motor, or other surplus options. In their mind, a car simply is a transportation device they

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get you from point A to point B. These consumers are highly interested in lower priced cars that
represent good value for money. Usually they attracted smaller vehicles without many additional
options. They generally quite price sensitive and attracted to special deals

Family needs

This market segment consists of an established family with children still in the household. Therefore,
they need a larger, more comfortable car to move their family.

They attracted to product features that benefit their family needs – such as, larger seating, drink
holders, entertainment units. Safety is also another important factor, as is reliability, and a brand of
car that is acceptable to the whole family.

I’ve made it

As suggested by the segment name, this particular group of consumers is primarily interested in the
social status benefits of a particular car brand. It is important to them that they communicate their
career or business success (or role in an organization) by purchasing a more expensive car. This
group of consumers is attracted to brands of car that are considered high status and are more
interested in brands that have social recognition benefits, rather than the particular features of the car.

Environmentally aware

An emerging market segment consists of consumers who take environmental factors into account in
their purchase decision of a vehicle. They are concerned with the impact that their car has on the
natural environment. This is the market that is more attracted to hybrid or electric cars, or smaller
cars with a lower level of fuel consumption. It is important that the brand of car has a reputation for
being environmentally concerned

Second family car

Second family car segment is a subset of the family needs market segment. This is for families with
both parents working, or with teenagers who are now driving. They have similar needs to the other
family segment, but because this is a second car primarily for shorter travel, they are less interested
in the comfort features. They are typically seeking a lower-priced alternative for a larger vehicle,
without the added extras of options like entertainment units.

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Core Values

 Honesty and Integrity: We believe that all decisions are to be made with integrity.
Leadership is setting good examples for others to follow, expecting as much from yourself as
from others.
 Individual Responsibility and Accountability: We believe we are responsible to satisfy the
needs of our customers for all our products and services. Individual accountability for our
own performance and for the quality of our products will demonstrate to our customers we
are enthusiastic about them and really care.

 Cooperation and Communication: Close mutual support of one another is a fundamental

tenant of ours. We value open communication and encourage new ideas, realizing that
teamwork produces a better employee work environment and enthusiastic customers and
suppliers.

 The Value of Our People: We have nothing of greater value than our people. We respect the
uniqueness of every individual and believe that such an attitude will build a team of
confident, creative members possessing a high degree of initiative, self-respect and self-
discipline.

2.4 Workflow from industry to clients and vice versa:

Management involves coordinating & overseeing the work activities of others so that organizational
goals can be accomplished efficiently and effectively.

Planning

Management has established the following goal for its organization. “Maintaining a global
viewpoint, we are dedicated to supplying products of the highest quality, yet at a reasonable price for
worldwide customer satisfaction.” company develops flexible plans, where they anticipate possible
problems and solutions to those problems. It involves it’s staff in different types of planning. 1.
Product Planning 2. Business Planning .It develops many plans and then carries out extensive
brainstorming sessions where they first set objectives and discuss ways to achieve those objectives.

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Production preparation

Support technology which creates production within manufacturing process. Seek quality and
efficiency To create quality vehicles ,high-level production preparation is required. A worker-
friendly production line of high quality and low cost for high-mix low-volume manufacturing can be
achieved by applying the following to the production line press dies to realize aesthetic designs
created by the design division, and assembly jigs and welding/painting robots to precisely realize
body frames. Technological skills are needed to develop production lines that are constantly evolving
along with the evolution of vehicles. Comprehensively considering all the processes for the
production of well finished vehicles, we are devoted to equipment planning and production-line
organization to develop efficient production lines.

Production

To establish advanced skills backed by individual worker's wisdom and experience as manufacturing
technology, not only the production sites but also the development and production preparation work
as an integral whole, implementing kaizen by utilizing workers' wisdom and ingenuity to find the
best way to produce quality vehicles skillfully and quickly at reasonable cost.

Marketing

Visualization also plays an important role in helping to reduce resources needed for promoting new
vehicles. Photorealistic computer-generated images can be used for print and video marketing, even
before a vehicle is produced. Marketing teams can choose from any number of astonishing settings
for those images—a beach, a forest, a cityscape, and more. They no longer need to coordinate
expensive and hassle-ridden physical photo shoots that require prototype vehicles to be secreted
around the world to exotic locations. Instead, they can visualize and promote more configurations of
the vehicle in a variety of settings, quickly and cost-effectively—and without compromising design
security.

Sales

More and more customers are going online to research and purchase automobiles. An online
Customizable configurator that utilizes visualization can be an extremely effective tool for closing
the online deal. Whether your customer is at the dealer or sitting in a home office, visualization has
the power to give customers an actual photorealistic image of exactly the vehicle they want to buy.

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Utilizing the same engineered data as marketing departments, sales offices can use a powerful.
visualization solution to let customers see their preferred configurations, complete with custom
colors and interiors. They can get creative and try different combinations to help ensure customers
order.

2.5 Why MIC needs to Invest in Automobile business:

Market share

The market share of brand new cars, sports utility vehicles and microbuses in Bangladesh has
increased from 10% to 20% in a decade, which is expected to grow up to 50% within the next five
years. Brand new cars are racing past reconditioned vehicles to take a lead in market dominance in
Bangladesh's growing automobile market. Industry insiders say the share of brand new cars, sports
utility vehicles (SUVs) and microbuses – in the automobile market – has increased from around 10
percent to 20 percent in a decade. For long, the reconditioned vehicle were the first choice of car
buyers looking for affordable vehicles.

Sale of brand new cars grew by slightly more than 58 percent in that time period. Car marketers'
compiled data suggest, out of every 100 cars sold now, 19 are brand new. In 2016, the number was
12. A modified import policy has also help narrow down the gap in prices between brand new cars
and reconditioned ones – from Japan's famous auction market for used cars. A shift in consumer
behavior is another factor behind the changing face of the automobile market, according to sellers.

Stability

After the 2008 recession, there were many slowdowns and layoffs, including within the automotive
industry. This meant that like many industries it was a risky place to work. However, there have been
many changes since then and currently the automotive industry is thriving, providing a very secure
environment to work within. So being or moving into the industry now is the perfect time, especially
if building a career is on your mind. Many job roles are getting increasingly high demand, none more
so than as a Technician, especially within the capital.

Technology

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The automotive industry sits right at the forefront of technological advancements, with a constant
search for fresh ideas. Companies are not shy to invest huge amounts of money into the research and
development of new technologies. There are few sectors that provide so much opportunity to be
involved in exciting new technological developments. This ranges from creating new manufacturing
techniques much like Speedo line are investing into, all the way to the design of hybrid and
autonomous cars. The interesting thing about new technology advancements is it will affect all
working within the dealership, for the better. Workshop staff are provided with more efficient
equipment. Whilst front of house staff get the exciting challenge of thinking of new techniques to
sell future autonomous cars- adding a new layer to the job.

Chapter 3: Strategic Analysis

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3.1 Business environment

Business and Environment are the two separate words which comprise the term Business
Environment. The human actions which are done for earning profits like production, goods sales or
purchase means word Business in the economic sense. The word Environment means the
surrounding aspects. So the conditions which are uncontrollable in nature like economical, social,
legal, institutional or political and the organisation functioning affects are defined as business
environment. The business environment consists of two parts which are internal and external
environment.

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3.1.1 Internal environment

The internal environment of the organisation is the basic element of the company. The organisation
construction and society like human relation, procedure and polices, staff experience and skills are
the vital rudiments of the internal structure. Some of the examples of this environment are:-

Aftab’s having strong supplier relationships, well-organized distribution system; well experienced
inventory specialists are the Just in time illustration of the internal environment.

Aftab superb importing system having outstanding material and register control system which makes
it sure that mechanized levels are highly trusted and admire by the customers to convene their
requirement and demand by supplying the parts proceeding to the assembly.

3.1.2 External environment

The organisation external environment influences all the trade actions of the company. The firm’s
external environment is influenced by factors like political, technological, legal and social.
Furthermore the external environment divided into two environment macro mad micro.

Micro environment: – The ability of marketing management of the corporation is exaggerated by

the decision outside the marketing to have successful communication and transactions with the
customers. The forces of the company which are affected by the micro environment are top level
management, other departments like finance, accounting, research and development, manufacturing,
suppliers and purchaser, channel partners and customers, competitors and finally the public.

Macro environment: – Changes occurring in the macro environment were recognised by the Aftab
Automobile. As the business and global car manufacturing procedures were changing they realised that
modification has to operate in state of the changes where the company can take full benefit of producing
the globe first hybrid vehicle Toyota Prius.

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3.2 SWOT Analysis

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Strength
MIC launch its product with the Brand name of Speedo Line. They have solid sophisticated brand
reputation according to consumer perceptions. Most of the consumer associated MIC with concrete
reputation and good brand Being a well reputation. Speedo Line has strong financial support for
carrying out marketing approaches. It’s a better advantage of MIC.

 Well organization structure, management and skilled and expert human resources are strength of
SLA.. They have maintained the right combination of talent, theoretical knowledge and practical
experience.

      The biggest infrastructure facilities are strength of Battery.

      Present excellent quality product also another strength of Battery.

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Weakness
1. Labor Crisis – the efficient labor crisis in Bangladesh is a major weakness for the
automobile industries in Bangladesh. This also applies for Speedo Line Limited as well.
2. Traffic Concern - As the traffic is currently one of the major concerns of Dhaka, many
people especially the young generation prefers motorbikes as the best option of private
transportation.

Opportunity
1. Foreign Investment - Many foreign investors have nominated Bangladesh as a country of
safe investment. Butno car industry has been established. This is a huge opportunity for SLA
Automobiles to increase its production line in the country.
2. Increasing Demand - Since the population of this country is increasing day by day, the
demand for automotive is also increasing as well. At the same time the number of middle
class families with more disposable income is increasing. This is also another opportunity for
Speedo Line Automobiles.
3. Going ‘Green’ – the attitude of public towards green technology i.e. environmentally
friendly is positive and its growing day by day. Speedo Line Automobiles can look into this
matter and develop opportunities here.

Threat
1. Competitors – the number of competitors is on the rise in the automobile sector in
Bangladesh. This is a major threat towards the advancement of Speedo Line Automobiles
Ltd.
2. Government – the rules and regulations posed by the government is not so inspiring for the
automobile industry.
3. Tax - The ever increasing Tax rate is also anther threat.
4. Political Unrest – the recent political unrest not only creates threat to the automobile
industry but to almost all industries in Bangladesh.
5. Increasing Price – the inflation rate of raw materials is also a major threat

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3.3 Growth Strategy:
Speedo Line automobile Ltd. Is a vehicles assembling industry beside this they expansion their business
manufacturing battery ,CNG station, Car painting that are related to their assembling business. on the other
hand Speedo Line is diversified industry of MIC group. So they follow the related diversification growth
strategy.

Why and How SLA follow diversification strategy:

 It’s a diversified industry of MIC group

 Expanding related product merging with Automobile company
 Manufacturing Battery, car paint and other small parts for assembling cars that is
diversified related to growth.
 They have electronic items for expanding business merging with other competitor

Analysis above this matter we came to know that Speedo Line automobile Ltd follow diversification
growth strategy.

Why not others:

Concentrate growth strategy focusing on a a primary product line.SLA not only assembling primary
product as cars,buses but also they are producing battery, car paint that are not related concentrate growth
strategy .

Vertical growth strategy means become a self suppliers .but SLAL never sell their product directly to
their customer .they are just importing cars paurse and or whole car or bus and sell those items through
different distributor in Bangladesh as Mitsuka,Need for spped etc

Competitive strategy

Speedo Line Automobiles Limited, a sister concern of MIC Group, is a famous organization in automobile
marketing in Bangladesh.Aftab Automobiles is following differentiation strategy.A company that
competes by offering unique products that are widely valued by customers is following a differentiation
strategy, product differences might come from exceptionally high quality, extra ordinary service,
innovative design, technological capability or an unusually positive brand image.

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WHY:

To build a strong product range across categories, continuously improve its operational effectiveness,
aggressively expand its access to customers and continue to invest in brand building activities. Speedo
Line automobiles are following differentiation strategy.

HOW:

In that Speedo Line automobiles has introduced environmental friendly (CNG driven) model Car for the
first time in Bangladesh to provide highest luxury in the road.Which is an unique product and highly
valued by customers too.Speedo Line Automobiles Limited has also recently introduced 'Best 6' model
which is the most luxurious transport in the country which is highly valued for customers too.

The Car Body Building Unit of the Company has also been modernized by introducing high-tech
equipments. In the Body Building Unit, fully automatic machineries has been imported from Italy and has
been converted into Automated Paint Booth, where vehicles including RM-2 (New model) Cars are being
painted with fully automation ensuing international quality.

By above discussion we can see that Speedo Line Automobiles compete by offering unique product like
Best 6 model Car,exceptionally high quality product like ' and by introducing high-tech equipments and
innovative design.Those are widely valuted by customers. So we can say that Speedo Line Automobiles is
following differentiation strategy.

3.4 Ansoff Growth Matrix

The Ansoff Matrix, also called the Product/Market Expansion Grid, is a tool used by firms to analyze
and plan their strategies for growth. The matrix shows four strategies that can be used to help a firm

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grow and also analyzes the risk associated with each strategy.

The four strategies of the Ansoff Matrix are:

Market Penetration: This focuses on increasing sales of existing products to an existing market.

Product Development: Focuses on introducing new products to an existing market.

Market Development: This strategy focuses on entering a new market using existing products.

Diversification: Focuses on entering a new market with the introduction of new products.

 
Of the four strategies, market penetration is the least risky, while diversification is the riskiest.

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3.5 Market Penetration (Primary Strategy)

Market penetration involves encouraging sales growth within the current customer base. It includes

the activities used to increase the market share by focusing on an existing product in the existing market.
Market penetration is the primary intensive growth strategy adopted by MIC Group to accomplish the
growth objectives. In a market penetration strategy, the firm uses its products in the existing market. In
other words, a firm is aiming to increase its market share with a market penetration strategy.

The market penetration strategy can be executed in a number of ways:

Decreasing prices to attract new customers

Increasing promotion and distribution efforts

Acquiring a competitor in the same marketplace

Product Development (Secondary Strategy)

Product development is the second intensive growth strategy of Ansoff growth matrix. Speedo Line uses
it as a secondary strategy to achieve growth objectives. This strategy involves the development of new
products or modification in the current product lines to make them new to current customer base. Growth-
seeking firms like Speedo Line adopt this strategy when they found limited growth opportunities in the
current market with the current product line. During the last few years, the intensified competition has
induced Speedo Line to bring new products to targeted market segments. Targeting existing customers
with new products requires comparatively less time, resources and efforts as the company leverage the
already developed brand awareness and customer loyalty. In a product development strategy, the firm
develops a new product to cater to the existing market. The move typically involves extensive research and
development and expansion of the company’s product range. The product development strategy is
employed when firms have a strong understanding of their current market and are able to provide
innovative solutions to meet the needs of the existing market.

This strategy, too, may be implemented in a number of ways:

1. Investing in R&D to develop new products to cater to the existing market

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 2. Acquiring a competitor’s product and merging resources to create a new product that better meets
the need of the existing market
3. Forming strategic partnerships with other firms to gain access to each partner’s distribution
channels or brand

Market Development (Supporting Strategy)

Market development is the third intensive growth strategy of Ansoff growth matrix. The main

objective of this strategy is to explore and enter new markets. In a market development strategy, the firm
enters a new market with its existing product(s). In this context, expanding into new markets may mean
expanding into new geographic regions, customer segments, etc. The market development strategy is most
successful if (1) the firm owns proprietary technology that it can leverage into new markets, (2) potential
consumers in the new market are profitable (i.e., they possess disposable income), and (3) consumer
behavior in the new markets does not deviate too far from that of consumers in the existing markets.

The market development strategy may involve one of the following approaches:

1. Catering to a different customer segment

2. Entering into a new domestic market (expanding regionally)
3. Entering into a foreign market (expanding internationally)

Diversification (Supporting Strategy)

Diversification is the fourth intensive growth strategy of the Ansoff matrix. This strategy involves entering
new markets with new products. The diversification strategy is further divided into related diversification
and unrelated diversification.In a diversification strategy, the firm enters a new market with a new product.
Although such a strategy is the riskiest, as both market and product development are required, the risk can
be mitigated somewhat through related diversification. Also, the diversification strategy may offer the
greatest potential for increased revenues, as it opens up an entirely new revenue stream for the company –
accesses consumer spending dollars in a market that the company did not previously have any access to.

There are two types of diversification a firm can employ:

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1. Related diversification: There are potential synergies to be realized between the existing business and
the new product/market.

2. Unrelated diversification: There are no potential synergies to be realized between the existing business
and the new product/market.

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Chapter 4 : Company Overview

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4.1 Background
Speedos Line Automobiles has been emerged to open a new era for automobile development in
Bangladesh. Seeing the measurable condition of comparatively low income segmented people in
Bangladesh in case of transportation, they were planning since January, 2020 to open a
automobile business which will be very supportive for at least mid income range people to
purchase their dream car. So from February 2020 they started to find out the necessary
requirements to establish automobile in Bangladesh. They thought initially to start with the
manufacturing of Car. So after that they started to find out proper place, necessary materials and
skill people to continue their project . Then after SWOT analysis, and other necessary
calculations they was determined that they would start their official journey from the early
January,2021.

4.2 The industry overview of "Speedos Line automobiles" :

The team members who are actually planning for this automobile, have an extensive business
background, including over 6 years of experience developing a variety of businesses. Mr. Hafizul
Alam (Junior Executive Of MIC Company) received his B.B.A in Marketing, and currently is
continuing his M.B.A in HRM. In fact, all the members who are actually trying to work on this
industry development project are highly dynamic and educated,experienced people who are
currently working as Junior executive in MIC Company. And all of them are candidates of MBA
program at the Bangladesh University Of Professionals. All the team members are working to
establish Speedos Line automobiles keeping in mind the industry challenge.

Automotive industry, all those companies and activities involved in the manufacture of motor
vehicles, including most components, such as engines and bodies, but excluding tires, batteries,
and fuel. The industry’s principal products are passenger automobiles and light trucks, including
pickups, vans, and sport utility vehicles. Commercial vehicles (i.e., delivery trucks and large
transport trucks, often called semis), though important to the industry, are secondary. 

Currently Speedos Line automobiles is searching for the investment towards their big project.
They have planned for car building and re building machines to buy. Beside necessary light and
heavy tools are in need. The arranging to create the foundation for the arrange may be
a combination of essential and auxiliary inquire about, upon which
the promoting methodologies are built. Discourses were held with
a assortment of people included with other comparative Industry to create the up and
coming arrange, investigating the showcase possibility, and competitive circumstance.

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From luxury sport utility vehicles (SUVs) to small compact sedans, to meet the country’s
demands for automobiles, Bangladesh has always been dependent on imported vehicles. Being
one of the most densely populated cities in the world and with high potential to be enlisted as a
smart city, the capital Dhaka naturally projected surging demands for motorized vehicles.
With increasing government procurement and growing middle-class society, the automotive
parts market was compounding at an annual growth rate of 10 to 12 percent in 2019. The rising
purchasing power of people enables them to afford passenger cars and avoid low quality public
transport. Moreover, the emergence of ride-sharing platforms including Uber, Pathao and others
are also contributing to the increasing demand. This calls for actions to develop an automotive
manufacturing industry within the country which will reduce import-reliance and strengthen the
local industry by generating employment for many.

Organogram:

4.3 A brief view of our business model on 'Speedos Line automobiles’:

Name: Speedo Lines Automobile
Short Name: Speedo Lines
Filtered by Stars: ****
Location: Secotr: 3, Plot:6, Uttara, Dhaka-1230.

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Ideal Geographical Area: The site is located at Uttara in Bangladesh. It is bestowed with 4
landscape building, a gymnasium in west side and food corner in its East side. We would do it
within 8 acres of land.(Mouza No. 121)

Motto: Make your journey comfortable, secured and joyful.

Targeted customer: Middle class to upper class.
Company Business Plan : This trade arrangement serves to detail the course, vision and 
arrange to accomplish our goal of giving prevailing, comprehensive administrations. 
Our setting priorities are: Focus thought and setting targets, identify and 
assess long-term growth, monitor and organize success, benchmarks for evaluating victory.

Some of our Exceptional facilities are:

Electronic Design, engine Assembly & Test Managers, design producing, customize design for
buyers etc.

4.4 Our Industrial statement:

Mission:
Mission of the Speedos Line automobiles is ‘Quality comes first, quality is inevitable” and that
is, for which we offer our customers a very special personalized after sales-service with absolute
and non-compromising ‘‘QUALITY’’ with ‘‘CONFIDENCE’’.
Vision:
1. Adapting to change.
2. Producing high efficiency cars and heavy vehicles.
3. Sustainable development of auto industries.
4. In future, targeting to produce heavy vehicle.
5. A target to make electrical autos.
Goal: Their goal is “To be best automobile producer in the country.” 

4.5 Future Plans & Innovation over Rivals:

Manufacturing vehicles is not that easy as it may sound. They not only have to design vehicles
but also have to match the market needs. Numerous car manufacturing vehicles are in this race.
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The demand for cars is increasing all around the globe. The experts working on Speedos line
automobile’s future plans will have to put all efforts possible. It is so to increase sales and reach
the set target.
The automakers are working on hybrid and plug-in hybrid models as well. According to industry
knowledge, the count of electric vehicles will still be less than hybrid cars. Vehicles are not the
only focus for the company. They also want to increase global sales in hybrid vehicles. The
company will design and manufacture electric vehicles as per the market demands. But the game
will still be on the hybrid and plug-in hybrid cars. Moreover they have also target tom produce
heavy vehicles.
Short-term Plan: Speedos Line autos will expand its business to 10 districts by the end of 2023.
At present they are operating in Dhaka and Chittagong only. But in near future they will expand
to the big cities like Khulna, Cox bazar, Sylhet etc.

Long Term plan:

Business expansion: Exapnsion target is to 40 districts of Bangladesh by the year of 2030.
Market development information: Continuous market development through enough man power
and technology support. Beside they have a target to add heavy vehicles and electric cars in their
list.

Innovation:

In today’s world, where ingenious ways of using tech and the cloud are being revealed on an
almost daily basis, the progress in the automobile industry is upgrading
Here are some advancements the world is thankful for that make the auto industry synonymous
with innovation:

1. Teen Driver Technology:

Fussing over handing out the keys to your teenager, let some crafty tech ease dilemma. Many
cars these days come with built-in teen driving limitations that will send alerts to him/her if the
car goes over a certain speed,

2. Connected Mobile Apps:

Here's another example of how smartphones have transformed everything, including how we
communicate with our cars. Most car makers today render a connected smartphone app, some of
which are better than others. The most rational ones are which let you lock and unlock doors,
check the status of fuel and tire pressure, and even start the car remotely to let the engine warm
up on cold winter mornings.

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3. Rear Cross-Traffic Alert:
Most low-speed-but pricey car crashes happen its Parking lots! Most people find it difficult to
back out of a parking spot, even with a rear-view backup camera, which is why rear-cross traffic
alert is expedient.

4.6 Marketing Strategies :

The automobile will be positioned as 4 star. It is with the view to offering best service within
affordable cost and act as multi spectrum. Their detailed strategies have been described:

4.6.2 Market segmentation, Product Features and Benefits :

Market segmentation is the research that determines how one organization divides its customers
or cohort into smaller groups based on characteristics such as, age, income, personality traits or
behavior. 

The uniqueness of a product or service can set it apart from the competition. Features can
communicate the capability of a product or service. But features are only valuable if customers
see those particular features as valuable. Company wants products or services with features
which customers perceive as valuable benefits. By highlighting benefits in marketing and sales
efforts, Speedos Automobiles will increase your sales and profits.
Our automobile will give warranty period for 4 years(including parts) for all type cars.

1. For low mid level we introduce ‘Speed King’ car. (Annual income range of people: 3 to 5
lacs) . It is of following features:

Maximum power 109ps

Fuel Consumption 13 - 13km/L

Drive Type AWD/FR

Engine Capacity 1,495cc

Number of Seats 5

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2. For mid level user we introduce ‘Best 6” car. (Annual income range of people: 6 to 8 lacs) It
is of following features:

Maximum power 109 - 158ps

Fuel Consumption 20 kmpl

Drive Type AWD/FF

Engine Capacity 1,496 - 1,998cc

Number of Seats 5

And additionally it is with built in GPS tracker feature. It is our most wanted product because of
its affordable price range with enough facility and torque speed.

3. For high level user we introduce ‘Next Gear’ car. (Annual income range of people: 9lacs to
up). It is of following features:

“Next Gear”
City Mileage9.8
kmplFuel TypePetrol
Engine Displacement (cc)1794
Max Power (bhp@rpm)125@6,000 (PS@rpm)
Max Torque (nm@rpm)16.1@4,200 (kgm@rpm)
Seating Capacity 5 Seating Capacity5
TransmissionTypeManual
Boot Space (Litres)430
Fuel Tank Capacity 30kmpl

It is the fastest and a product for upper income segmented people. And it is too much stylish.

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4.6.3 Product Differentiations :

Speedos Line automobile uses both differentiation and low cost as generic strategies to try and
gain a competitive advantage over their competitors in the automotive industry. 
Identifing a specific target:
The automobile target market is vast and target with its specific products for different products.
From Mid range to high we have something for everyone.
Defining the Speedos Line product market: The market scope that we use is a broad one that
encompasses nearly every type of customer that is in the market to purchase an automobile.
The Speedos Line automobile understands the customer needs hence the different products in
terms of cost and low maintenance, reliable and safe and concern for the environment. The brand
is very innovative thinking outside the box.

4.6.4 Pricing :
The automobile will target middle to upper class. The average car rate would be range initially
from BDT 1000000 to BDT 2500000 . In addition, there will be attractive rates to encourage
customers to buy the car from us. If anyone wants to purchase car with installment facility we
will provide it through Islami Bank Bangladesh Ltd(Installment no. depends on customer’s
profile). We will keep of 3 categories iconic car “Speed king” for BDT 1000000, “Best 6” for
BDT 1500000. Then our another car is ‘Next Gear’ which will be for BDT 2500000.

a. Speed king(Price BDT 1000000):

Maximum power 109ps

Fuel Consumption 13 - 13km/L

Drive Type AWD/FR

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 Engine Capacity 1,495cc

Number of Seats 5

b. “Best 6” (Price BDT 1500000):

Maximum power 109 - 158ps

Fuel Consumption 20 kmpl

Drive Type AWD/FF

Engine Capacity 1,496 - 1,998cc

Number of Seats 5

c. “Next Gear” ( BDT 2500000)

City Mileage9.8
kmplFuel TypePetrol
Engine Displacement (cc)1794
Max Power (bhp@rpm)125@6,000 (PS@rpm)
Max Torque (nm@rpm)16.1@4,200 (kgm@rpm)
Seating Capacity 5 Seating Capacity5
TransmissionTypeManual
Boot Space (Litres)430
Fuel Tank Capacity 30kmpl

4.6.5 Promotion :

When it comes to advancing  automobile company , we don’t ought to spend a part of cash to

form a huge impact. Without assist ado, here are a few cheap publicizing thoughts to assist our
construction to  trade and develop our brand.

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a. optimizing online presence:

Using strategic keywords will help with SEO, and creating a dynamic social media presence is a
great way to engage with current customers and boost your brand. Fortunately, there are lots of
cheap or free tools that can help one to achieve these goals without breaking the bank.

b. Leveraging existing technology:

Using the technology , like phone system, is a cost-effective way to advertise our automotive
business. Many car dealerships and auto shops are finding that custom on hold messages allow
them to educate their customers about current programs while they wait, and they offer the added
benefit of keeping callers on the line longer. 

c. Getting noticed:
Prioritize our marketing budget on license plate holders, air fresheners, sunshades, and other
promotional products that will give our or automotive added exposure.

d. Creating local presence:

Active involvement in local events will pay off in increased brand recognition, and we may even
be able to take advantage of a few tax write-offs.  

e. Rewarding referals and reviews:

Whether we will hand out gift cards, give service credit, or hold a monthly drawing. When we
reward our happy customers for referrals we’re able to create more happy customers.

f. Becoming an industry thought leader:

When it comes to automotive advertising flashy commercials and graphic newspaper ads are a
thing of the past. If we really want to promote our company, establishing long term strategies and
creating a dynamic presence online, over the phone and in the community is the most effective
and affordable way to boost the brand.

4.7 Service process of Speedos Line Automobile:

When Speedos Line Automobile is due for major service, using the latest technology,
techniques, and equipment, our team of highly trained technicians has the expertise to take care
of whatever is demanded. If our company requires air conditioning service, we'll keep you cool.
Need battery, ignition, or starter service,we can get you recharged. We offer coolant system
service, electrical system maintenance, exhaust repair, transmission service, and much more.

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The automobile will provide key services to purchase a car. Our sales [erson would be for 9
hours in a day.(11am to 8pm). They will serve the customers and help them to purchase their
desired car and suggest them accordingly.Then if anyone is interested then they would provide
them payment system. Initially we are supporting cash,credit card payment. If anyone wants to
take loan(based on meeting some criteria) then we will offer them to take this loan through
Islami bank Bnagladesh Ltd. Or Standard Chartered Bank Ltd. Beside any one can purchase car
from website: www.speedoslineautomobile.com. Beside they can get our facebook page fb:
speedoslineauto.

Beside, We will keep the system of test drive for the interested customer.

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Chapter 5: Recommendation and
Conclusion

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5.1 Recommendation and Conclusion

Automotive sector is one of the important sectors in Bangladesh because in the recent year
demand of luxury car and bus are increasing .In this sector Speedo Line Automobile industry Ltd
take highest place in the Bangladesh. They always trying to give customer high quality service
that’s why they are importing branded parts from Japan and assembling those car in the
Bangladesh. It will be one of the largest automotive industries in Bangladesh. Although in
Bangladesh investment in automotive sector is lucrative and need lot of capital to start a business
here.Growth rate is high so profit maximization is easy for Speedo Line Automobile ltd.
Speedo Line in the automotive industry have many challenges ahead of them but also many
opportunities. The whole industry is changing fast and a new business network is expected to
emerge with new roles. Speedo Line in the automotive industry need to adapt to the new way of
selling mobility as well as to the new business network and decide what role or roles to take.
They also need to adapt to a more service-based business model since the indications of the
future way of selling mobility points in that direction. Simultaneously, the old business model
will continue to be relevant and parallel business models will be necessary.
To sum up and answer the main question of what success factors for a future business model are,
key elements in a future business model for Speedo Line in the automotive industry will depend
much on what role in the business network they decide to take. However, the success factors of a
service-based business model can be applied independent of choice of role as long as the Speedo
Line is moving from offering products towards a service-based offer. This paper builds on
predictions of future mobility solutions and so does the conclusions concerning what role to take
and the implications it will have on the business model. Success factors for an Speedo Line in the
automotive industry when offering service-based business models have been identified as well as
key elements in a business model. A suggestion for further research is to complement the
findings presented in this thesis by quantifying the economic impact different roles in the
network have as well as to update the suggested recommendations based on future development
of the industry. Additionally, a deeper analysis of each role and what would be required to take
the roles should beinvestigated.

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Again, as the target audiences of the automobile are not same at a time. Some are offering for the
platinum and some are for the economical. So, it will be a great opportunity for us if we can
successfully attract our targeted customers into us.

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