Monno Ceramic Industries Limited

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We are Group-10

SL. NO. NAME ID

01 Md. Abul Kalam Azad B-120203023

02 Md. Abu Sayed B-120203026

03 Mithun Kumer B-120203041

04 Mohammad Mehadi Hasan B-120203097

05 Mahmudul Hassan B-120203102


GROUP-10
Monno Ceramic Industries Limited
Monno Ceramic Industries Limited was incorporated in
Bangladesh on 21st April, 1981 as a Public Limited Company
under The Companies Act, 1913. The Company went for
public issue of shares in 1985 and its shares are listed with the
Dhaka Stock Exchange Limited & Chittagong Stock Exchange
Limited since 1983 and 1995 respectively.
The Company owns and operates modern ceramic wares
factory and produces high quality Porcelain and Bone China
tableware’s products and sells them in the local as well as in
foreign markets.
SWOT Analysis of Monno Ceramic Ltd.
Strengths
Strong brand name, with 35 years of experience.
Modern machinery with Spray Color facilities.
Strong distribution network, Have own show room
and retail shops in most cities in Bangladesh, also
in other 13 countries.
SWOT Analysis of Monno Ceramic Ltd.
Weaknesses
Narrow product lines, only produce table wares.
 Giving too much effort on export, making loss on
national market, They lost 25% market share to
shinepukur ceramic in recent year.
SWOT Analysis of Monno Ceramic Ltd.
Opportunities
Ceramic industries shifting from developed
countries.
Continuous rise of middle income groups.
Apply brand name capital in tiles and sanitary
wares.
SWOT Analysis of Monno Ceramic Ltd.
Threats
Emergence of low cost substitute products like
Melamine wares, Aluminum wares, Steel kitchen
wares, Glass wares and Plastic wares.
Increasing of bargaining power of Buyers.
Government embargo on cutting hills.
Porter's five forces diagram
ANALYSIS OF CERAMIC INDUSTRY
Bargaining power of Buyers: Moderately Low.
 Number of buyers in local and international market is high
for ceramic table wares.
 Buyer purchases table wares product in low volume.
 Buyer is not price sensitive, because ceramic table wares like
porcelain, ivory china, bone china are produced in different
style and design in different ceramic companies. If one buyer
like a design and style of one company , he will not go for
another companies product.
ANALYSIS OF CERAMIC INDUSTRY
Bargaining power of Suppliers: Moderately High.
 Ceramic raw materials (china clay, ball clay, fire clay and
aluminum)suppliers are concentrated compared to buyers.
 The cost of switching from one supplier’s product to another
supplier’s product – are high.
 Suppliers can easily forward integrate or produce ceramic
table wares.
 Supplier’s raw materials is highly differentiated.
ANALYSIS OF CERAMIC INDUSTRY
Rivalry among existing firms: Moderate.
Number of competitors is high.
Ceramic table wares company can not exit easily, as initial
investment in plant and machinery is high. Plant and
equipment is highly specialized, these assets cannot easily be
sold to other buyers in another industry.
Ceramic industry is growing approximate 29%, and the
monetary value is approximate US $20 billion plus and growing
rapidly. (Daily Ittefaq)
Although the number of competitor is high but for its rapid
growth, we think the rivalry is at moderate level.
ANALYSIS OF CERAMIC INDUSTRY
Threat of new entrants: Moderately low.
 Scale economics is present as producing higher products in
ceramic industry reduce the production cost.
 Accessing distribution channel is difficult for new entrants,
as this industry highly dependent in exports.
 Capital requirements for making plant is high, as required
500 crore initial investment.
 Proprietary technology is an issue. Because every firms
making their own patent on design and style to
differentiate themselves from other firms.
ANALYSIS OF CERAMIC INDUSTRY
Threat of substitute products: High.
 Different kind of substitute products for ceramic tableware
such as melamine wares, aluminum wares, steel kitchen
wares, glass wares and plastic wares are raising.
 Substitute product price is comparatively low, which may
reduce the revenue of ceramic industry.
ANALYSIS OF CERAMIC INDUSTRY
Bargaining power Bargaining power Rivalry among
of Buyers: of Suppliers: existing firms:
Moderately Low Moderately High Moderate

Industry
Profitability:
Moderately
High
Threat of new Threat of
entrants: substitute
Moderately low products: High
ANALYSIS OF CERAMIC INDUSTRY

Bangladesh, being a gas rich, low-labor cost economy and


having advanced ‘bone china’ technology, is perfectly
positioned to produce and export ceramic goods.
After analyzing porter’s five competitive forces, we see
though threat of substitute product and bargaining power
of suppliers is high, but the industry is still moderately
highly profitable for its high growth.

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