Swot_Analysis

SWOT ANALYSIS OF AARONG SWOT analysis is a powerful technique for understanding organizations Strength & Weakness and looking for the Opportunities & Threats it may face. Used in a business context it helps organization carve a sustainable niche in a market. This analysis is mainly based on an imaginary situation. A little bit about Aarong Established in 1978, Aarong is a fair trade organization dedicated to bring about positive changes in the lives of disadvantaged artisans and underprivileged rural women by reviving and promoting their skills and craft. Reaching out to weavers, potters, brass workers, jewelers, jute workers, basket weavers, wood carvers, leather workers and more, Aarong embraces and nurtures a diverse representation of 65,000 artisans, 85% of whom are women. Today, Aarong has become the foundation upon which independent cooperative groups and family-based artisans market their craft, in an effort to position the nation’s handicraft industry on a world platform of appreciation and acknowledgement. • Strength Aarong is a very reputed organization. Currently capturing 68% of total handicraft market share in Bangladesh, they stand as the leading producers of local crafts. It is a local brand that is now spreading their territory by exporting their products outside of the country. Aarong maintained a good reputation for fine quality products. It has a strong management team who are continuously giving their best effort to continue their image a successful one. Another important fact, which makes them stand out from others, is that, Aarong has almost “Zero” production damage rate, which allows them to maintain a low cost. They are innovative and are always bring some new product in the market that meets customer requirement and expectations. The organization is a respected employer that values its workforce. • Weakness Aarong has a reputation for new product development and creativity. However, they remain vulnerable to the possibility that their producer may not be able to produce goods on timely manner due to their inability of high scale production. The collection channel of the organization is not well structured which leads them to uncertainty of collection of products from the producer on time, creating hindrances for them in the upcoming market. Since most of the products of Aarong are handmade, personal calamities also effects drastically on production, which disables the company to deliver their product on time to the consumers. This stands as one of the biggest disadvantages for Aarong as these occurs on most instances on the time of delivery. Aarong charges relatively high prices for their products than their competitors, resulting loss of consumers whose financial level fluctuates from time to time. Aarong’s sales force, conservatively consists of sales girls within their outlet lack appropriate necessary to attain their goals. Sometimes their unprofessional attitude leads customers to unsatisfaction and switch to other local brands. This also leads to minor financial problems, but very rarely. • Opportunities Aarong proved to have an excellent aptitude at capturing the advantage of opportunities. They have opportunities to involve them in new distribution channels joint venture with some other small Boutique and more sales point. This will lead to capturing more market share of handicraft industry in Bangladesh. Aarong also has the adequacy to globalize its business ventures. New market place for handicraft such as Europe and America are beginning to evolve drastically. Hand made products are now the latest trend in the local fashion industry. Local events & functions like Pahela Falgun, Pahela Baisakh, Victory day, Independence Day etc creates a huge demand for handicraft and with proper marketing skills Aarong can launch new products especially for these occasions. Alongside the season change, changes in people’s preferences also occur. So does necessity. Based on this idea, Aarong can increase seasonal products to attract the local consumers at all season. • Threats Though it stands as one of the oldest organization in Bangladesh’s handicraft industry, even today Aarong does not have any big competitors in the country. Existence of some small competitors like KayKraft, Anjans, Deshal, Jattra, Khubsurti, OZ, Rang etc are there alongside other small Boutiques. These brands and stores combined are capturing 32% of the local consumers and are increasing in a slow rate. This growth rate may stand as a threat for Aarong for the near future. They will always face price wars from their competitors. Its competitors have some superior products in the fashion field at a much lower cost. Price along with rising of new advertising and marketing firms in Bangladesh are increasing the popularity of the smaller brands, decreasing Aarong’s market share as well as sales. However, repositioning of the Brand as a major weapon, Aarong is ready to battle. Aarong has also successfully found a niche in the retail fashion space. Prior to the establishment of Aarong’s retail outlets, shopping for quality textile products was either through the backstreets of local markets or in up-market boutiques inside hotels. It is the closest shopping experience to a department store in Bangladesh, offering a range of products ranging from clothing, shoes, jewelleries and accessories to furniture and home wares. So, although the brand’s marketing includes billboard advertising and fashion shows within the country, it is really the elements of convenience, range and quality of product, combined with a strong national identity, that have effectively become its marketing tools. The value of Aarong to the creative industries in Bangladesh is not only economic. The success of the retail brand has inspired consumer interest in indigenous Bangladeshi design through blending the traditional with the contemporary in a manner that has won instant consumer appeal. Aarong’s product designs focus on the diverse types and textures of crafts and patterns that have been passed along from generation to generation among weavers and artisans in craft hubs around the country. Aarong also plays a role in protecting and promoting traditional Bangladeshi products and designs through its extensive design library where remnants of the country’s rich craft heritage, such as Nakshikantha art and Jamdani patterns, have been widely researched and archived.