The swot analysis of garments industry in Bangladesh are as follows:
Table of Contents
Strength
- More than 30 years of history and experience of garment manufacturing.
- Large labor force still comparatively expensive compared to competitors
- Strong backward linkage in knit sector
- Resilient and ambitious young entrepreneurs
- Huge production capacity
- Highest number of green industries and a positive sustainability image
- Explicit positive change management practices in the factories
- Improved worker-management relationship
- Support of government as a major export sector.
Weakness
- Low productivity
- Weak technology management
- Low level of skills and capabilities specially in mid-level management
- Weak backward linkage in woven sector
- Longer change over time from style to style compared to competitors
- Weak industrial engineering, longer lead time
- Excessive defects and more reworks, weak quality management
- Poor transportation and logistics facility
- Sub-standard port facility
- High tax rate
- High energy price
- Market and product knowledge gap
Opportunities
- More order flow from China due to changes in global business dynamics
- Improved image and confidence of foreign buyers
- More practice of sustainable solutions
- More emphasize on cost control
- Huge growth in denim sector
- More practice of product development and expanding value-added services
- Export flow toward non-traditional markets
- Increase in the availability of local technology and consulting service-providing agents
Threats
- Over-dependency on foreign raw material
- Very low profit margin on basic items
- No or very little investment in non-cotton-based fiber and fabric industries
- Energy crisis and price hike
- High worker wage in relation to skill level
- Rapid technological growth in competing countries
- Sub-standard education and training facilities
- Little or no research and development
- No proper road map for sustainable development technological change
- Low FDI and local investment due to bureaucratic and lingering problems
