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Table of Contents
Abstract: ....................................................................................................................................................... 2
Introduction:................................................................................................................................................. 3
Objective of the study: ................................................................................................................................. 4
Literature Review ......................................................................................................................................... 5
Methodology: ............................................................................................................................................... 6
Secondary Sources: ................................................................................................................................... 6
Organizational overview: ............................................................................................................................. 7
Major Findings: ............................................................................................................................................. 9
Limitations of the study: .............................................................................................................................. 9
Recommendations: ...................................................................................................................................... 9
Conclusions: ................................................................................................................................................ 10
References: ................................................................................................................................................. 11
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Abstract:

Innovation does not take place if organizations are not dynamic, which means if they can’t change with
the time. It is not self-generating or self-sustaining. Successful innovation requires leadership to establish
organizational capacity to generate ideas and to ensure prompt and effective service. Innovation is very
important to remain in the competition in this globalized environment. This article is all about the
innovative initiative’s barriers faced by Walton a Bangladeshi company. I have tired to find out all the
barriers that Walton faces. The reasons the company has to innovate so that it can compete with their
competitor and remain in the competition. The barriers they face as they are operating their business in
Bangladesh which is a developing country and the reasons behind those barriers. The article contains a
small description about the selected company. The limitations of the company and solutions of these
innovation problems are also mentioned here.
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Introduction:

The international environment is becoming more competitive, innovative and demanding. The reason
behind this is globalization. Because of globalization customer demand newer types of product everyday
everywhere. To be able to benefit from this increasingly globalized environment innovation is must. As
Bangladesh is a developing country it has many barriers that hinders the innovation activities of many
sectors those are operating in our country. These barriers can lead to a vicious cycle, from which
Bangladesh has not yet emerged. I have chosen Walton for my study. Walton faces some barriers in their
operations and productions. These barriers are: sociopolitical instability, corruption, weak economies,
imperfect markets, poor infrastructure, deficient management and technical skills, inadequate public
education facilities, and limited government initiatives in support of innovation. They are improving their
skills and innovation capabilities. They need to follow innovative approaches in various sectors.
Innovations can lead to new institutions outside the country, change the relationship between levels of
government and within government departments. Some incentives may be introduced to meet certain
targets or objectives, to improve the services provided by the company to its customers. The innovation
initiatives will strengthen the country’s economic growth as innovation in must now-a-days. They address
various socioeconomic and political problems that affect the government and the people, and design their
organization in a manner so that it can achieve the best value. The strength of developing the company
and their customer base strongly depends on their ability to generate and integrate innovations.
Innovation in most important to compete in the globalize environment but achieving this innovation is
not that easy. They need to introduce innovative activities, strategies, policies to improve their
organization structure, activities, product, process, human resource. Studies found about innovation or
technologies of Walton are limited. This study focuses on various challenges to Walton’s innovation and
suggests strategies for overcoming them.
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Objective of the study:

• Discussing about Bangladesh one of the largest organization Walton group.

• Knowing about the technology they use in their production and operation.
• knowing the innovation activities Walton are conducting to meet the need of
their customers and to attract a large pool of customers.
• The challenges and obstacle they are facing in their innovative actions.
• Discussion about how they are overcoming those challenge.
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Literature Review:

Walton is one of the giants of Hi-Tech industries in Bangladesh. It produces different types of electronic
and electrical items such as multi-staged refrigerators, air conditioners, freezers, televisions,
smartphones, automobiles, and home appliances. Walton’s improvement in technology made electronics
cheaper, it has also increased quality of production. It has tried to bring innovation in this sector because
innovation is the most important factor for achieving the highest growth. Without innovation the
company will come to stand still. To achieve the highest growth Walton has push the boundaries of
innovation. Walton has innovated their product in a way that they have achieve the 1 no. place in Home
Appliance Brand in our country. It has captured the market share of existing foreign brand. They have a
variety of product line to meet the need of the customers. Innovating the best design best product Walton
has turned people’s creative imagination into reality and turned them into technologies that are one step
further the previous ones. Innovation is also important for achieving competitive advantage. Without
innovation it cannot compete with their competitors and cannot achieve profitability. Innovation has
helped Walton to reach the no.1.

But there are a lot of limitations that Walton has to face in the way of their innovative initiatives.
As Bangladesh is a developing country it has many limitations in innovation, so Walton as a Bangladeshi
company faces a lot of barriers in barriers in their innovation. The people working here are not that much
trained, so they lack a skill manpower. As the human resources do not have the proper skill, they are not
able to undertake innovative task. Most of the people’s incomes are low in our country so they cannot
afford the high value product. Sometimes this is one of the reasons that discourages the innovation that
require a high degree of investment. Bangladesh political environment plays a significant role as a barrier
to the companies’ innovation. Increasing pressure from the competitors are also considered as a
limitation. Sociopolitical instability, corruption, weak economies, imperfect markets, poor infrastructure,
deficient management and technical skills, inadequate public education facilities, and limited government
initiatives in support of innovation are also the limitations for the company. They have to try to overcome
these limitations to some extent so that they can able to bring innovation in their business.

To overcome these barriers fast of all the company has to employee skilled works. As our countries
political conditions doesn’t remain stable the company has to design its work in a way so that it can work
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well in this kind of environment. It should innovate those kinds of things that doesn’t require a lot of
investment and they are also in the budget of the people of our country.

Methodology:

The term ‘methodology’ means an “analysis of and rationale for the particular method or methods used.
For this study secondary approach is applied.

Secondary Sources:

I have elaborated the different types of secondary sources that I have used to collect information for my
article. Sources of secondary information can be defined as follow:

• Annual Report

• External Sources

• Books and Newspaper

• Website

• Internal Information
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Organizational overview:

Walton is a conglomerate based in Kaliakair, Bangladesh. It comprises numerous subsidiaries and affiliated
businesses, most of them united under the Walton brand. The subsidiaries include Walton Motors, Walton
Mobile, Walton Electronics and Walton Hi-Tech Industries. Walton produces electronics, motor vehicles,
and telecommunications products. Walton Group of Industries was founded by S.M Nurul Alam Rezvi in
1977 as a trading company. Over the next three decades the group diversified into steel, textiles,
electronics and automobiles. Walton entered into the steel industry in late 1970s and the electronics and
automobiles in early 2000s; these areas would drive its subsequent growth. Since the 2000s Walton has
expanded towards electronics and automobiles and these became its most important sources of income.
Walton is the latest multinational electrical, electronics, automobiles and other appliances brand with one
of the largest well-equipped R & D facilities in the world carried out its production through different
subsidiaries under the banner of Walton group headquarters in Bangladesh. Walton had entered into
electronics business in 1977 with manufacturing of electrical and electronic items and gradually expanded
its operation in many other electronics fields that provide the foundation for nearly every aspect of
modern life. The key secret behind the success of Walton lays its variation of production capacity and
customized orientation of new product as per the demand of customer. World class machineries like
Thermoforming, Channel Extrusion, ABS/HIPS Sheet Extrusion, Magnetic Strip Extrusion, PP Hollow Sheet
Extrusion, VMC, 5 axis VMC, Ultrasonic Welding, Injection Molding, Styrofoam Making, Hi Speed Power
Press, Fin Press, Corrugation, SMT pick and place, SPG printing machine, AOI machine, Tamura wave solder
machine, Auto insertion machine are being used for the production of high quality products of Walton.
Along the way, Walton has earned domestic and global recognition for its experience and proven track
record in a variety of electronics fields. Walton is the pioneer of developing state of the art designs and
modern technology having leading market share specializing in Multi-Stored Refrigerators, Freezers, Air
Conditioners, LED/ LCD televisions, Motorcycles, Smart Phones and Home Appliances. WALTON has
established a milestone as the highest exporting Bangladeshi enterprise in the field of electronics, with a
universal presence in over 20 countries and by 2020 the presence of Walton will be ensured almost every
country in the world. Walton's Innovation is dedicated to building a more advanced society through the
fusion of sophisticated technologies having the capacity of 3.00 million refrigerator, 0.30 million Air
conditioner, 0.15 million Motorcycle and 1.5 million Television per annum respectively. The entire Walton
Group having more than 21,000 direct & indirect employees are working together to overcome the
challenges to go top most market and meet customer demands throughout the world by implementing
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its unique Social Innovation globally. The retail organs of Walton run through more than 4000 plazas,
exclusive distributors and dealers. Walton has more than 57 modern and well equipped after sales service
points along with ISO certified central service point. It enables to address the issues customer face from
a common point of view to develop solutions that combine the required products. Walton has achieved
many international & national awards and recognitions like some recent prestigious and best business
awards are: The Golden Globe Tiger Award 2015 in the category of Excellence & Leadership Brand, DHL-
Daily Star Bangladesh 15th Business Award 2014 for Best Enterprise in Bangladesh, Asia Best Employer
Brand Awards in 2015, Six times 1st Prize for Highest VAT Payer at DITF-2015, 2014, 2013, 2012, 2011 &
2010 respectively, Second Prize for Premier Pavilion Category at DITF-2015, Best Refrigerator Brand
Award-2014, Best Television Brand Award-2014, Best Local Brand Award-2014, 1st Prize for Premier
Pavilion Category at DITF-2014, The Global Brand excellence Award in 2014 for brand excellence in
consumer electronics, 1st Prize for Premier Pavilion Category at DITF-2013, Best Sponsor Award-2012,
Creative Media Ltd. BABISAS Award-2012, Best Brand (Refrigerator) Award-2011, 2nd Prize for Premier
Pavilion Category at DITF-2011, 2nd Prize for Premier Pavilion Category at DITF-2010, 1st Prize for Premier
Pavilion Category at DITF-2009, 1st Prize for Premier Pavilion Category at CITF-2005. Walton has been
maintaining 100% compliances since its inception and certified ISO 14001:2004 Refrigerators & Air
Conditioner Division, ISO 9001:2008 Refrigerators & Air Conditioner Division and OHSAS 18001:2007
Certificate for successfully adopting sound occupational health and safety management systems, efficient
staff management, minimizing the risk of accidents and achieving adequate corporate reputation ensuring
the standard of products and combining the above to minimize the production cost. Our strategic
philanthropy and corporate social responsibility (CSR) efforts are aligned to our key businesses and focus
mainly on sports and culture, technology and the environment with a particular emphasis on innovation
in each of those areas. As a global leader in the consumer electronics industries, Walton is fully committed
to responsible corporate citizenship and environmental stewardship through its products, its programs,
its practices and its people.
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Major Findings:

❖ There are limitations on the organization’s creative activities, they can’t achieve economies of
scale as the company has not expanded to other major potential international markets.
❖ Walton produces a wide variety of products.
❖ The product of Walton fails to capture the high-income group because they made their product
to reach the middle-income people
❖ They are bringing more variety in their product line.
❖ Their employees are highly skilled.

Limitations of the study:

In spite of my utmost efforts there are a few limitations in this report which are namely:

❖ Due to confidentiality issues I could not go through all the raw innovation report and so I could
present a few on this report.
❖ My observations and recommendations may turn out to be inappropriate.
❖ The preserved data of WALTON about their innovations and the barriers faced by then are not
well organized.

Recommendations:

❖ They should train their employees so that they are able to do innovative activities.
❖ They should develop their products in a way so that they can caption the high-income group.
❖ They should also provide variety of product to capture the highest value.
❖ Try to develop an environment which helps to overcome the barriers in their initiatives to
innovations.
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Conclusions:

Walton Group of Industries was founded by S.M Nurul Alam Rizvi in 1977 as a trading company. Over the
next three decades the group diversified into steel, textiles, electronics and automobiles. Walton entered
into the steel industry in late 1970s and the electronics and automobiles in early 2000s; these areas would
drive its subsequent growth. Since the 2000s Walton has expanded towards electronics and automobiles
and these became its most important sources of income. Walton is one of the highest taxpayers in
Bangladesh and has a strong impact on the country's economy. Walton is the one of the largest companies
of Bangladesh. It is the largest manufacturer of household refrigerator having maximum market share in
Bangladesh. Walton received the Best Taxpayer Award at the 2015 Dhaka International Trade Fair (DITF)
for the seventh time. It was awarded for its export revenues. Walton received awards at the 2013 Dhaka
International Trade Fair (DITF), including one for paying the most taxes. Walton faces sociopolitical
instability, corruption, weak economies, imperfect markets, poor infrastructure, deficient management
and technical skills, inadequate public education facilities, and limited government initiatives in support
of innovation. Because of globalization innovation is must, without innovation business can’t remain in
the competition. As Walton is no.1 company of our country still they face a lot of barriers as they are
conducting in Bangladesh which is the developing country. They are trying their best to overcome these
obstacles and to some extent they have done this. They hire the skilled labor and they should try to
produce product that is capable of capturing the high-income group. After having all of this limitation and
barriers to innovate Walton is one of the best companies of our country, which has captured a large
market.
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References:

https://en.wikipedia.org/wiki/Walton_Group

http://dspace.bracu.ac.bd/xmlui/bitstream/handle/10361/7755/13104004_BBA.pdf?sequence=1&isAllo
wed=y

https://swotbangla.wordpress.com/2016/06/22/swot-analysis-of-walton-bd/

http://www.risingbd.com/english/Walton_Bangladesh_A_Brief_History/743

http://dspace.bracu.ac.bd/xmlui/bitstream/handle/10361/7755/13104004_BBA.pdf?sequence=1&isAllo
wed=y