Examination of Porter's Five Forces Model on Companies in Three Industries of

Bangladesh: Comprehensive Analysis on Companies' Internal and External Factors

Pharmaceuticals Industry

1. Square Pharmaceuticals Ltd.

- Threat of New Entrants: High due to significant capital investment and stringent regulatory
requirements.
- Bargaining Power of Suppliers: Moderate as the company can leverage its scale to negotiate
better terms.
- Bargaining Power of Buyers: Moderate with significant influence from healthcare providers
and distributors.
- Threat of Substitutes: Low given the specific nature of pharmaceutical products.
- Industry Rivalry: High due to the presence of numerous local and international players.

2. Beximco Pharmaceuticals Ltd.

- Threat of New Entrants: High, similar to Square Pharmaceuticals.
- Bargaining Power of Suppliers: Moderate with a diversified supplier base.
- Bargaining Power of Buyers: Moderate but increasing due to health insurance growth.
- Threat of Substitutes: Low given the focus on specialized medicines.
- Industry Rivalry: High with intense competition on pricing and innovation.

3. ACI Limited (Pharmaceuticals Division)

- Threat of New Entrants: High due to regulatory hurdles and required capital.
- Bargaining Power of Suppliers: Moderate though influenced by the availability of raw
materials.
 - Bargaining Power of Buyers: Moderate especially in over-the-counter medicines.
- Threat of Substitutes: Low with specific medical formulations hard to replace.
- **Industry Rivalry**: High with competition in generic drug manufacturing.

4. Renata Limited
- Threat of New Entrants: High owing to regulatory and financial barriers.
- Bargaining Power of Suppliers: Moderate as the company sources from multiple suppliers.
- Bargaining Power of Buyers: Moderate with significant influence from retail pharmacies.
- Threat of Substitutes: Low due to specialized product offerings.
- Industry Rivalry: High particularly in the animal health segment.

5. Eskayef Pharmaceuticals Ltd.

- Threat of New Entrants: High consistent with industry standards.
- Bargaining Power of Suppliers: Moderate benefiting from economies of scale.
- Bargaining Power of Buyers: Moderate with considerable influence from large distributors.
- Threat of Substitutes: Low due to the nature of pharmaceutical products.
- Industry Rivalry: High driven by innovation and marketing efforts.

6. Incepta Pharmaceuticals Ltd.

- Threat of New Entrants: High due to capital and regulatory barriers.
- Bargaining Power of Suppliers: Moderate with strategic partnerships mitigating supplier
power.
- Bargaining Power of Buyers: Moderate with growing influence from hospitals and clinics.
- Threat of Substitutes: Low with a focus on high-quality formulations.
- Industry Rivalry: High with competition in both domestic and international markets.

Cement Industry
1. HeidelbergCement Bangladesh Ltd.
- Threat of New Entrants: Low due to high capital requirements and economies of scale.
- Bargaining Power of Suppliers: Low as raw materials like limestone are abundant.
- Bargaining Power of Buyers: High as buyers can switch between brands easily.
- Threat of Substitutes: Low with few alternatives to cement in construction.
- Industry Rivalry: High due to numerous competitors and price competition.

2. LafargeHolcim Bangladesh Ltd.

- Threat of New Entrants: Low given the significant investment needed.
- Bargaining Power of Suppliers: Low similar to HeidelbergCement.
- Bargaining Power of Buyers: High due to minimal differentiation between products.
- Threat of Substitutes: Low as concrete is a critical construction material.
- Industry Rivalry: High with fierce competition on price and distribution.

3. Meghna Cement Mills Ltd.

- Threat of New Entrants: Low because of substantial initial investments.
- Bargaining Power of Suppliers: Low with numerous suppliers of raw materials.
- Bargaining Power of Buyers: High with buyers having significant choices.
- Threat of Substitutes: Low as substitutes for cement are limited.
- Industry Rivalry: High due to the large number of players in the market.

4. Premier Cement Mills Ltd.

- Threat of New Entrants: Low owing to high capital and operational costs.
- Bargaining Power of Suppliers: Low similar to other cement companies.
- Bargaining Power of Buyers: High with buyers having strong negotiating power.
- Threat of Substitutes: Low given the critical nature of cement.
 - Industry Rivalry: High driven by price wars and capacity expansions.

5. Shah Cement Industries Ltd.

- Threat of New Entrants: Low due to high barriers to entry.
- Bargaining Power of Suppliers: Low as raw materials are readily available.
- Bargaining Power of Buyers: High with strong buyer influence.
- Threat of Substitutes: Low given the essential role of cement.
- Industry Rivalry: High with intense competition on cost efficiency and distribution networks.

6. Confidence Cement Ltd.

- Threat of New Entrants: Low due to high investment and regulatory requirements.
- Bargaining Power of Suppliers: Low with abundant raw materials.
- Bargaining Power of Buyers: High with buyers demanding high-quality products at
competitive prices.
- Threat of Substitutes: Low with limited alternatives to cement.
- Industry Rivalry: High with competition on product quality and distribution capabilities.

Textile Industry

1. Beximco Textile Ltd.

- Threat of New Entrants: Moderate with significant investment and brand establishment
required.
- Bargaining Power of Suppliers: Moderate with multiple suppliers for raw materials.
- Bargaining Power of Buyers: High due to large buyers like retail chains.
- Threat of Substitutes: Moderate as alternative fabrics and materials are available.
- Industry Rivalry: High with competition on cost, quality, and delivery times.

2. Square Textiles Ltd.

 - Threat of New Entrants: Moderate considering the initial capital and expertise required.
- Bargaining Power of Suppliers: Moderate with dependence on cotton suppliers.
- Bargaining Power of Buyers: High with significant influence from large fashion brands.
- Threat of Substitutes: Moderate with synthetic fibers as alternatives.
- Industry Rivalry: High with intense competition in international markets.

3. DBL Group
- Threat of New Entrants: Moderate due to substantial investment and operational know-how.
- Bargaining Power of Suppliers: Moderate reliant on raw material prices.
- Bargaining Power of Buyers: High with major retailers exerting strong influence.
- Threat of Substitutes: Moderate as technological advancements offer new materials.
- Industry Rivalry: High driven by cost efficiency and compliance with international standards.

4. Envoy Textiles Ltd.

- Threat of New Entrants: Moderate given the capital-intensive nature of the business.
- Bargaining Power of Suppliers: Moderate with variable cotton prices impacting costs.
- Bargaining Power of Buyers: High with buyers demanding high-quality and sustainable
products.
- Threat of Substitutes: Moderate as the market shifts towards sustainable materials.
- Industry Rivalry: High with competition on innovation and sustainability practices.

5. Epyllion Group
- Threat of New Entrants: Moderate considering the investment and expertise required.
- Bargaining Power of Suppliers: Moderate influenced by global cotton market prices.
- Bargaining Power of Buyers: High with buyers pushing for lower prices and better quality.
- Threat of Substitutes: Moderate as alternatives to traditional textiles grow.
- Industry Rivalry: High with pressure to maintain low costs and high standards.
6. Ha-Meem Group
- Threat of New Entrants: Moderate due to the significant capital and brand recognition
needed.
- Bargaining Power of Suppliers: Moderate with fluctuating raw material costs.
- Bargaining Power of Buyers: High as global brands demand high-quality products at
competitive prices.
- Threat of Substitutes: Moderate with advancements in alternative materials.
- Industry Rivalry: High driven by the need for innovation and maintaining international
standards.