Porter's five forces analysis on the IT

industry in Bangladesh
TAZZINA AFROZE HASSAN ID: 16201025
PARISA MEHERA ID: 16201027
MUNSHI TAHMINUL ISLAM ID: 16201003
LAMIA TAHSIN ID: 16201020
RITHY KASFIYA ID: 16201042
AFIYA RAHMAN ID: 16201029
Introduction: Porter’s Five Forces
Threat of New Entrants by Potential
Competitors: Bangladesh IT Industry

 Threat of new entrants refers to the threat new

competitors pose to existing competitors in an
industry.
 For example, cable TV companies have
recently emerged as potential competitors to
traditional phone companies.
Important barriers to entry include:

 Economies of Scale
 Customer Switching Costs
 Government Regulation
Competitive Rivalry

 Industry rivalry or rivalry among existing

firms is one of Porter’s five forces used to
determine the intensity of competition in an
industry.
Rivalry among Established Companies:
Bangladesh IT Industry

 Industry Competitive Structure

 Industry Demand
 Exit Barriers

Domestic Sales Growth of IT industry

The Power of Buyers

 The Bargaining Power of Buyers, refers to the

pressure that customers can put on businesses
to get them to provide higher quality products,
better customer service, and lower prices.
The Bargaining Power of Buyers: Bangladesh
IT Industry

 According to BASIS, there are 1000+ firms

competing in the industry but Bangladesh
exported 68% of its total IT products to USA .
 Here the industry also depends upon USA
buyers to purchase their products.
 Switching possibility for Bangladeshi IT
product buyers is also high.
Bargaining Power of Suppliers

 The Bargaining Power of Suppliers is the

mirror image of the bargaining power of
buyers and refers to the pressure that suppliers
can put on companies by raising their prices,
lowering their quality, or reducing the
availability of their products.
The Bargaining Power of Suppliers:
Bangladesh IT Industry

 Difficulties in measuring the bargaining

power.
 Unavailability of suppliers data.
 Less important for being a service based
industry.
The Threat of Substitute Products

 It is the extent to which alternative

products or services may replace
or diminish the need for existing
products or services.
Substitute Products: Bangladesh IT Industry

 Mainly service based.

 Having close substitutes.
 Existing threats of substitution in firm-level.
 But considering the industry-level, threat of
substitution is very low.
Top IT Companies In Bangladesh:

 TigerIT Bangladesh Ltd.

 Leadsoft Bangladesh Ltd.
 REVE System
 Datasoft System Bangladesh Ltd.
 Brain Station 23
Summary of Bangladesh IT Industry Analysis by
Porter‘s Five Forces Model
Conclusion:

 In our opinion IT industry are going so fast. If our industry want to lead the race then we
must deal with the new idea and strong destitution channel. Many companies in
Bangladesh are left the race because they can not aware about the threat of substitutes and
threat of potential entrants.