Impact of Macro Environmental Factors on Garments Industry That Drives Export in Bangladesh

Open access

Abstract

It goes without saying that Garments industry of Bangladesh has drawn a special attention to the mass people in the world because of being both cost leader and quality leader at the same time. The purpose of this research paper is to analyze the garments industry in Bangladesh which is going to be an emerging tiger in the world economy. It also aims to assess the impact of macro-environmental factors affecting the industry by PESTEL analysis. Again, five forces model has been analyzed to assess the impacts of competitive external factors on the Garments industry in Bangladesh. Furthermore, Garments sector competitive responses to the primary issues affecting the industry have been evaluated here. It also outlines the primary external influences to which this industry is subject. In this case, SWOT analysis has been conducted to assess the competitive position of this industry in comparison with the global perspective. The study suggests that total export is highly correlated with the exports of garments. It also finds that there is severe lacking in the safety and security compliance, wages and compensations and code of conduct of the current organizations. Moreover, GSP facility withdrawn can impact severely on the ready made garments of Bangladesh to compete with price in the international market with China, India and Vietnam etc. The ready made garments sector of Bangladesh is enjoying cost leadership as a source of completive advantage because of cheap labor. Finally, the study would like to recommend for further improvement of garment sector in Bangladesh.

Ahmed, M. l and Hossain, M. S(2006) “Future prospects of Bangladesh’s Ready-made Garments Industry and The Supportive Policy Regime”, Policy Note Series: PN 0702. Policy Analysis Unit (PAU). Research Department, Bangladesh Bank, Dhaka, Bangladesh.

Ahmed, J., and Hossain, T., (2009) Industrial Safety in the readymade garment sector: A developing country perspective, Sri Lankan Journal of Management, Vol. 14, No. 1, pp.( 2-12)

Ahmed, F: (2012) Improving social compliance in Bangladesh Ready-made Garments Industry, La Trobe University, Australia BBS. (2014) Statistical Year Book of Bangladesh; Bangladesh Bureau of Statistics, Ministry of Planning, Government of The People’s Republic of Bangladesh.

Bhuiyan, M.Z.A. (2012) Present Status of Garment of Workers in Bangladesh: An analysis, IOSR, Journals of Business and Management, Vol. 3, No. 5, pp. 21-43

Bhuiyan, M. I., (2013) Reasonable Wages for workers to eliminate unrest of Bangladesh’s RMG sectors, Bangladesh Development Research Working Paper Series Report no. 17, Dhaka

Bhattacharya, D., M. Rahman and A. Raihan, (2002) Contribution of the RMG sector to the Bangladesh Economy, CPD Occasional Series, Paper No. 50.

BGMEA (2016) [Online] Available from: http://www.bgmea.com.bd[Accessed April 2016]

Clark, C. & Kanter, S. (2011) Violence in the RMG Industry in Bangladesh, International Connections: Labor Standards Issue, Center for International and Competitive Studies (CICS), University if Michigan, Vol. 3, No. 1, pp. 2-11

Dasgupta, S. (2002) Attitude towards trade unions in Bangladesh, Brazil, Hungary and Tanzania. Journal Article on International Labor Review, Volume 14(1)

Gonzales, M.H. (2012) The Readymade Garments industry in Bangladesh: A Means to reducing Gender based social exclusion of Women? Journal of International Women’s Studies, 11 (1); pp. (142-178)

Haider, M. Z. 2012. “Competitiveness of Bangladesh Ready-made Garment in Major International Markets”. Asia-Pacific Trade and Investment Review.Vol. 3, No. 1, June

Hossan, C.G., Rahman, Sarker., MAR & Afroze, R. (2012) Recent unrest in the RMG sector in Bangladesh: Is this an outcome of poor labor practices? International Journal of Business Management, Vo. 7 No. 3, pp. 201-217

Kamal, M. Hossin, S. and Billah , M (2010) Labor unrest and Bangladesh Labor Act-2006, A study on Ready Made Garments Factories in Gazipur, Journal of Business and Technology, Dhaka

Kibria, A.M..B.G., Martin, S., Sharmin, R., (2016) Impact of GSP Cut: The case of RMG sector in Bangladesh, Journal of Social Sciences, Vol. 6, No. 1, pp. (1-11)

Mottaleb, A.K. and T. Sonobe. (2011) An inquiry into the rapid growth of the Garment Industry in Bangladesh’’. GRIPS Discussion Paper

Muhammad, A. (2011) Wealth and Deprivation: Readymade Garment industry in Bangladesh, Ecoomic and Political weekly, Vol. XLVI (34), pp. 19-26 Porter, M.E. (2004) Competitive Strategy, Boston: Free press

Quddus, M. and Rashid, S. (2000) Entrepreneur and Economic Development: The remarkable story of Garments exports from Bangladesh, Journal of Bangladesh Studies, 2000, Vol, 2(1), The University Press Limited, Dhaka, Bangladesh

Rahman, M. Bhattachayia, D. and Moazzem, K. G. (2007), “CPD Study in Bangladesh’s Apparel Sector on Post-MFA Period: A Benchmarking Study on the Ongoing Restructuring Process”, Centre For Policy Dialogue (CPD) Bangladesh.

Siddiqi, Hafiz G. A. (2004) The Readymade Garment Industry of Bangladesh, Dhaka, The University Press Limited.

Telegraph (2014) [Online] Available from: http://www.telegraph.co.uk/news/worldnews/asia/bangladesh/9701826/Bangladesh-factory-fire-kills-111-garment-workers.html [Accessed April 08, 2016]

Journal Information

Metrics

All Time Past Year Past 30 Days
Abstract Views 0 0 0
Full Text Views 362 362 112
PDF Downloads 99 99 47