Subaru in Bangladesh
Kevin Sessions
Internship Company: Subaru
Country: Bangladesh
1
Subaru in Bangladesh
Subaru has been successful in the Bangladesh market
Subaru Bangladesh has been introducing new cars into the market
Its models in Bangladesh target 10% of the overall market share
“Since 2012, the industry has been growing at 8% on average†(ICE Business Times, 2019).
Since 2012, Subaru has made successful steps in Bangladesh by introducing new car models. Each time, it targets a new market segment, and its goal is to capture 10% of the market share. According to the ICE Business Times (2019), Subaru has been growing in Bangladesh at the rate of 8%. The automotive industry in Bangladesh is growing, making it a potential market for Subaru.
2
Micro Environment
Actors
Stakeholders
Employees, customers, stockholders, partners, and managers may have conflicting interests.
The public
Local publics, Government, print and electronic media are key players in the operation of Subaru in Bangladesh
Employees, customers, stockholders, and the managers in the different branches of Subaru greatly influence the company’s success. Subaru has to ensure the satisfaction of these stakeholders to achieve effectiveness in the market. The public also plays a massive role in the success of Subaru. The government, local populace, and the media are watching the business practices of Subaru. The company has to understand the power and interests of each of the parties and satisfy them.
3
Micro (Cont.)
Forces
Changes in consumer behavior
With the growth in technology, consumer demands are changing
Competitors
Competitors such as Ford Motors are utilizing technology to innovate superior products
According to Mansur (2021), the automotive industry in Bangladesh is expanding at a high rate, and with the availability of different car models, consumer behavior and demands are changing. This calls for Subaru to update its products. Competitors are also utilizing technology and innovation to roll out new car models that are superior and unique. This is affecting the sales of Subaru.
4
The Macro Environment
Actors
Culture
Bangladesh is more cultural than democratic, and Subaru has to abide by the cultural norms of the country.
Political/Law
Political factors include land and business laws that govern the operations of Subaru in Bangladesh.
In Bangladesh, cultural norms such as decent dressing must be upheld. Therefore, Subaru must observe all these norms and ensures they are kept. For instance, it cannot use indecently dressed individuals in its advertisements. Subaru has to comply with laws such as the customer Act, the Company Act, and other business laws in terms of politics and law. Corporate social responsibility is also essential to uphold in Bangladesh.
5
Macro (cont.)
Forces
Globalization
The world is becoming a global village, and this is making it easy for Subaru to sell its cars globally.
Technology
Technology is growing at a high rate and Subaru is innovating to meet customer demand and increase sales.
Subaru’s Bangladesh branch is growing due to the ability to supply its car models worldwide due to Subaru’s Bangladesh branch is growing due to the ability to supply its car models worldwide due to globalization. The company is advertising through social media platforms and its website to reach a wider audience. It is also taking advantage of technological growth to innovate and introduce new car models that meet customer demands. . The company is advertising through social media platforms and its website to reach out to a wider audience. It is also taking advantage of the growth in technology to innovate and introduce new car models that meet customer demands.
6
Summary
The automotive industry is expanding in Bangladesh
Subaru is growing at a rate of 8% in average.
Globalization, technology, customers, and competition among the factors influencing the operations of Subaru.
Subaru’s venture into the Bangladesh market followed the growth and expansion of the Bangladesh automotive industry. However, Subaru has to watch competitors like Ford Motors, who are also present in that industry, while meeting the needs of its customers and other stakeholders. The company can utilize technology and the high rate of globalization to produce more car models and get them to the consumer.
7
References
ICE Business Times (2019). Reyad Hasnain, Managing Director, SUBARU Bangladesh. Retrieved from https://ibtbd.net/reyad-hasnain-managing-director-subaru-bangladesh/
Mansur, H. (2021). Automobile sector development in Bangladesh: Challenges and Prospects. Policy Insights. Retrieved from https://policyinsightsonline.com/2021/01/automobile-sector-development-in-bangladesh-challenges-and-prospects/
