Business Communication (BUS251) Sec:18

Research Project:
Part-1 Industry Analysis

Submitted to
Ms. Hamida Mosharraf Moniea (HMM1)
Lecturer, Department of Management

Submitted by: Group-1

S.M.Aowsaful Bari 1812970630

Tahsin Rahman Ruponty 2121439630

Anas Ahmed 2131393630

Tahmid Jahangir 2211038630

Syed Tahsin Anjum 2211082030

Tahera Arobi Mahi Chowdhury 2211156030

Fabiha Mahjabin Aisharja 2211936030

Submitted On: March 20,2023

 MODERN AGE
ARCHITECTURE LTD.
 Mission and Vision of
Modern Edge Architecture

Tagline
Where dreams come to life

Mission
At Modern Edge, our goal is to provide top-notch client-focused service through
authentic architectural practice, commitment and professionalism. We work vigorously
every day to bring the dreams of our clients into reality. We measure our success through
our client’s satisfaction.

Vision
We are eager to make the tomorrow’s world better with the power of planning and
designing. We are integrally minded with inspiring designs, climatically responsible and
hi-tech driven.
 Industry Analysis
Portfolio of Modern Edge includes various architectural which includes mind-blowing holiday homes
with customized furniture, cut-edge factory structures, inspiring facilities, warmth filled religious places
etc. Our designs are are inspired from the personalities of customers, amazing expression of crisp lines,
planes and volumes. The services we provide are: Architectural design, Structural design, Soil testing,
Building construction, Project Masterplan, Project management, 3D visualization & Animation, Interior
design, Water fountain design, Digital land survey, Rajuk plan approval, and Duplex house design.
Industry buildings, Commercial Buildings, Landscape design, Tourism Development, Residential,
Apartments, and Real Estate.

1. Competition in the industry

Architecture has been depending on word-of-mouth for so many years. But with new market and
technologies, Modern Edge Architecture Ltd. has arrived to take the top position in architectural industry.
Being a new company, we have to put our best service in front to offer newness in architecture, even after
having huge competitions in this field while attracting middle-class to upper-class Dhaka residents. Our
market rivals are
 Design Associates
 Nakshabid
 NPDL (Next Plan Development Ltd)
 Sthapati Associates Ltd.
 Evangel Architects
 Studio 16 Architects
 Shellmark Limited
There are other companies that serves similar services but they are not directly our rivals but our
substitution as people do depend on them as options. Japan Taguchi Construction Co.Limited, a join
venture of Taguchi Holdings Pte Ltd, Singapore, and Bangladeshi local partners can be our main
substitute in Bashundhara area. . It provides top-class construction methods from Japan.
Strength:

1. Highly dedicated team of professionals.

2. Innovatively designed apartments
3. Commitment.
Weakness:

1. There are other giant companies that already are market leaders and people do know
about them.
2. They only provide Japanese techniques.

Opportunities:

1. In the upcoming years, they can build trust through their work.
2. People may tend to use Japanese technology.

Threats:

1. Might not be able to compete with the existing market.

2. Potential of new entrants into the industry

In the architectural industry in Dhaka, the threat of new entrants is moderate to high due to the following
reasons:

 Low Barrier to Entry:

The architectural industry in Dhaka has a low barrier to entry, as anyone with sufficient capital and
expertise can establish a new architectural firm. The initial investment required for starting an
architectural firm is relatively low compared to other industries, and there are no legal restrictions or
licenses required to operate.

 Established Reputation of Existing Players:

Although there is a low barrier to entry, the existing players in the market have established a reputation
and experience in the local market. Their established reputation and experience make it difficult for new
entrants to gain market share and attract clients. New firms need to differentiate themselves and offer
unique and innovative services to compete with established players.

 Access to Skilled Labor:

Access to skilled labor is an essential component of an architectural firm's success, and it can be difficult
for new entrants to attract and retain skilled labor due to the limited pool of skilled labor in the market.
Established firms have an advantage in this regard as they have already established relationships with
skilled labor and have a reputation for providing quality work.

 Access to Capital:

Access to capital is crucial for the success of any business, and it can be difficult for new entrants to
secure funding from investors or financial institutions. Established have an advantage in this regard, as
they have already established relationships with investors.
3. Power of suppliers
 Raw materials:
The raw materials used by an architectural firm can include items such as steel, cement, tiles etc.. In
Dhaka, there are many suppliers of these materials, which mean that the bargaining power of each
individual supplier is relatively low. Moreover, the raw materials are not unique and can be sourced from
multiple suppliers. Therefore, there are several options to choose from when it comes to raw material
suppliers, and it can negotiate better prices by shopping around.

 Cement Industry in Bangladesh-

In order to provide the best service, Modern Edge Architecture Ltd. does not compromise the quality of
our work. For architecture firms, cement is also a crucial material. Bangladesh has many cement
companies such as Holcim, Crown, Seven Rings, Shah Cement, King Brand Cement etc. The quality of
Holcim Cement Company made us choose it among these. LafargeHolcim business was first established
in Bangladesh at the end of the 1990s.
Strength of Holcim -

All shares of Holcim Bangladesh Limited have been acquired by LafargeHolcim Bangladesh for BDT
5,047.82 million. Through this purchase, LafargeHolcim Bangladesh has significantly increased its
manufacturing capacity. In addition, this firm is home to the only clinker-producing facility in
Bangladesh, as well as four grinding units across the country. As the largest cement factory in
Bangladesh, it has also invested the most money.

Weakness of Holcim-

LafargeHolcim Bangladesh's power plant needs a certain amount of natural gas to operate; a 2018 study
alleges that Jalalabad Gas Transmission and Distribution Systems Ltd (JGTDSL) tried to raise the price.
As a matter of record, LHBL receives approximately 16 million cubic feet (435,129 cubic meters) of
natural gas per day under a long-term fixed-price contract with Jalalabad Gas Company. This judgment
will increase factory expenses and gas prices, resulting in the firm suffering. The rate of tariff increases is
one of LHBL's limitations.

Opportunities of Holcim –

With a diverse product line and diverse services, LafargeHolcim Bangladesh is a leading building
material company. Furthermore, they can tailor items to meet the needs of customers.

Threat of Holcim-

Holcim has local and foreign competitors in Bangladesh who are expanding business and giving
affordable purchase.
  Steel Company in Bangladesh –

Bangladesh has many steel companies such as BSRM, RRM Steels SCRM, RSRM etc. BSRM
(Bangladesh Steels Re-Rolling Mills Ltd. has been chosen as our steel supplier because of its superior
quality and reputation.As one of Bangladesh's top steel producers, BSRM has established a reputation for
excellence. There is a lot of recognition for their BSRM Xtreme Bar product. As a result of their
aggressive approach, BSRM has established a strong brand in the steel business. The construction of
national infrastructure and landmarks has only been possible with BSRM steel products. Several projects
were constructed with BSRM materials, including the Padma Bridge, Rooppur Nuclear Power Plant,
Hatirjheel Project, Zillur Rahman Flyover, Mayor Hanif Flyover, and Shah Amanat Bridge. To certify the
reliability and durability of its products, BSRM has introduced the most advanced technology available in
Europe.

Strength of BSRM-

 Value given to integrity, team work and pride.

  Good connection between employees and their customers
 Logic and knowledge applied in decision-making process

Weakness of BSRM-

 Reduced agility due to rigid structure

 Tiles Company in Bangladesh –

Due to the premium quality and product offered by RAK, we have chosen them as our partner for tiles
and ceramics. Besides being a multinational tile manufacturer, it is also based in Bangladesh. It is a UAE-
based business. A joint venture between the UAE and Bangladesh, RAK Ceramics (BD) Ltd, has been
operating since 1998. A leading provider of ceramic living solutions, this company is one of the best in
the industry. Morbi has been the site of a joint venture factory run by RAK Ceramics since 2017.
Moreover, since the beginning of 2018, a greenfield factory has been operating in North India. This is the
only ISO-certified company in Bangladesh.
  Technology:

In the modern age of architecture, technology plays a vital role in the design, construction, and project
management process. For instance, technology solutions like Building Information Modeling (BIM) and
Computer-Aided Design (CAD) software are widely used by architectural firms. The bargaining power of
technology suppliers in this case is dependent on the level of customization required and the cost
involved. Since technology suppliers tend to be specialized, the bargaining power of individual suppliers
may be high in some cases. However, "Modern Age" can leverage its reputation and relationships with
suppliers to negotiate favorable terms, such as lower costs, timely delivery, and better customer support.

 Skilled Labour:

Skilled labor is an essential component of an architectural firm's supply chain, including draftsmen,
engineers, architects, and other skilled personnel. The bargaining power of skilled labor suppliers is
moderate to high, as there is a limited pool of skilled labor available in the market, and competition for
them is intense. Therefore, Modern Age needs to maintain good relationships with skilled labor suppliers
to attract and retain the best talent in the industry.

In conclusion, while the bargaining power of suppliers of raw materials for Modern Age is relatively low,
the bargaining power of technology and skilled labor suppliers is moderate to high. Therefore, the
Modern Age needs to maintain good relationships with all of its suppliers, monitor prices and quality, and
ensure a reliable supply chain to remain competitive in the architectural industry in Dhaka.
4. Bargaining Power of Buyers

In the architectural industry in Dhaka, the bargaining power of buyers is moderate to high due to the
following reasons:

 Number of Buyers:
The architecture industry is rapidly growing, and there is an increasing demand for architectural services
among the residents of Dhaka. However, there are also many architectural firms in the market that
compete for the same pool of buyers. Therefore, the bargaining power of buyers for Modern Edge is
moderate.

 Size and Concentration of Buyers:

In the case of Modern Edge, the majority of their buyers are large organizations such as real estate
developers and government institutions that require large-scale architectural projects. These buyers have
significant bargaining power as they have the financial resources to negotiate and can make up a
significant portion of Modern Edge's revenue. Therefore, the bargaining power of buyers is high.

 Switching Costs:
In the architecture industry, switching costs are high as architectural projects require significant
investments, and buyers often have long-term relationships with architectural firms. This makes it
difficult for buyers to switch to other firms easily. Therefore, the bargaining power of buyers is low.

 Availability of Substitutes:
In the architectural industry, substitutes are limited, and buyers are unlikely to find architectural firms that
can offer the same quality and expertise as Modern Edge. This makes it difficult for buyers to negotiate
prices or other terms. Therefore, the bargaining power of buyers is low.

 Information Access:
In today's digital age, buyers have easy access to information about architectural firms, their services, and
their pricing structures. This has increased their bargaining power as they can compare prices and quality
between firms. Therefore, the bargaining power of buyers for Modern Edge is high.
5. Threat of substitute products

The threat of substitution is relatively low to high for the following reasons:

 Availability of Substitute Service

The availability of substitute services is relatively low since architectural firms offer a unique
combination of services that cannot be easily replaced as there are a few like Design Associates,
Nakshabid, Next Plan Development Ltd. (NPDL), Sthapati Associates Ltd., Evangel Architect, etc.
However, some substitute services could include DYI home improvement, which may be cheaper but lack
the expertise and sophistication of professional architectural services.

 Buyer Switching Costs

The switching costs are relatively low as the architectural services do not involve long-term
commitments, and clients can switch firms without much difficulty. However, the reputation of the firm
and the expertise of its team could be a deterrent for clients switching to another architectural firm.

 Relative Price-Performance
The relative price-performance of substitute products or services is a critical factor that influences the
threat of substitution. The firm's services are highly specialized and often customized to meet the client's
needs, making them less price-sensitive. However, the firm must ensure that its services provide better
value for money than its competitors to keep its clients from switching to substitute services.

 Perceived Level of Differentiation

The perceived level of differentiation between the firm's services and substitute services is another factor
that affects the threat of substitution. Tthe firm's services are highly specialized and tailored to meet the
client's specific needs. This level of customization creates a high perceived level of differentiation
between the firm's services and substitute services, making it difficult for substitutes to compete.