Bangladesh University of
Business & Technology (BUBT)
report OnCompetitive environment
On
BUBT
Mr. Monirul Hasan Masum
Asst Professor
Dept. of Marketing
BUBT
Date of submission: 25.05.2014
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Group Details
Group no.-1
Intake- 27th
name
id
Khadiza tasnim mouli
11122101497
Arifa akhter
11122101505
Sakib bin siraj
11122101516
Sumaiya hasan
11122101517
md. farhan khnodker
11122101529
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Table of contents
Subject
Page no.
1. Executive summary
4
2. Structural analysis of
competitive forces
3. LEPESTC Analysis
5-6
4. SWOT Analysis
9-12
5. CONCLUSION
13
6. References
13
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7-9
Executive summary
Keeping ahead involves continuous hard work to enhance the reputation of the
brand, coupled with product innovation based on detailed market research that
indicates how to please customers.
Bangladesh University of Business & Technology (BUBT) is responding
positively by giving the proper education and increasing levels of competition. The
University has been established to provide education with unique quality relevant
to the needs of the modern society. Today, many people live busy lives and place
great importance on convenience when getting the good, cultured & right
education.
While analyzing the competitors, the main competitors should be the local
universities which are situated in Mirpur. But in Mirpur there is not so much
university. BUBT has the greatest market share in Mirpur. Mirpur’s people are
very familiar with it.
The main competitor:
The main competitors of BUBT are those universities which are situated around it.
Those are Prime university
 Manarat international university
 Green University
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Structural analysis of competitive forces
The five forces model of analysis was developed by Michael Porter to analyze the
competitive environment in which a product or company works.
BUBT also follows the five forces model.
 Bargaining power of Buyers- BUBT is made of one type of buyer and that
is the students. They pay money to the BUBT and buy the knowledge for
prosper in their future life. Students can get admitted here with the cost
which is less than the other private universities. Moreover, BUBT provides a
lot of facilities with the education. The service provided by BUBT is unique.
They focus on not only the cost but also the quality of buyers. Overall the
bargaining power of buyers has an extremely low threat in BUBT.
 Bargaining Power of Suppliers- Next comes the bargaining power of the
suppliers. In this case the major suppliers are the teachers. In BUBT the
inputs are extremely standardized. Currently BUBT is trying to make their
students more ecofriendly.
BUBT cannot easily switch suppliers. Most students have long term contracts with
their suppliers. Overall the bargaining power of suppliers has a low threat as well.
 Threat of New Entrants-Threat of new entrants is another major aspect of
the five forces. This aspect has a low threat for BUBT. There are two aspects
that do however raise the threat level. First, there are extremely low
switching costs. Second, there are no politics involved.
Even with these two aspects BUBT still has a very low threat overall. Students
have large cost advantage.
 Threat of Substitutes-After looking at the threat of entry it is important to
also consider the threat of substitutes. BUBT has a medium substitute risk
level. There are so many private universities. Students can choose other form
of universities to acquire knowledge for prospering in life. There is however
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a cost to switch. Some means that education in private university is costly.
Sometimes students search for high quality education which rises the risk.
 Rivalry among Existing people-The last area of the five forces is the
rivalry among existing people.
The rivalry in BUBT is very intense for many reasons. BUBT is currently very
strict. It seems to be in the mature stage of the education cycle. The number of
competitors stays the same in the long run and it doesn’t seem to be under or over
capacitated. The fixed costs are extremely high in BUBT. The students involved
are highly complex which also heightens the competition. The strongest forces in
BUBT are the competition of existing students and the power of suppliers. The
rivalry of existing people is high and will push out any university that doesn't have
enough capital. Suppliers are strong forces because instruments inside BUBT are
so costly. If the suppliers changed the credit terms by even a small amount it could
mean a significant loss for the firm. On the other hand the other forces involved
seem to have a weak threat. It is costly and time consuming to enter the market
which lowers the risk of entry. Buyers have a weak force because of the low
switching costs and substitutes are weak because they are usually too costly.
The profit in BUBT is high because for most people admitting in necessary. It is
not a trend which makes this industry profitable for the long term. Universities that
are more profitable are in a better position because they usually have more students
and a larger variety of teaching which provides further convenience for the
students.
After looking at the Five Forces Model BUBT should make dealing with the
competition on their main priority. The other areas in the model seem to have an
overall low threat so existing firms don’t have to focus on those areas as much in
their business strategy.
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LEPESTC Analysis
1) Legal: legal are those factors which can affect how a company operates, its
cost and the demand for its products. BUBT follows several law to control
the university  Consumer law: BUBT’s students are considered as consumers. Here
for students there are many committees to provide opportunities for
students which are controlled by their own observances.
Honorable Proctor monitors all this affairs personally.
 Employment law: Teachers & all employee of BUBT are considered
as an employee. For employees there are many committees to monitor
all their opportunities & problems which are controlled by their own
authority.
 Health and safety law: BUBT follows The Bangladesh Labor Act,
2006 for all employees.
2) Economic: Economics analysis has major impacts on how businesses operate
and make decisions. BUBT is an educational institution, so that no economic
environment.
3) Political: Political analysis that is basically to what degree the government
intervenes in the economy. BUBT is full free from smoking & politics. Here
there is no Political environment.
4) Environmental:
Environmental
analysis includes the ecological and
environmental aspects such as weather,
climate, and climate change which may
especially affect the internal factors such
as students, teachers etc.
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BUBT is situated in Mirpur, we know Mirpur is a residential area. So the
educational institution is not available here. Most of the universities are
situated in commercial area. As BUBT is not situated in commercial area, so
it not as famous likes other. Actually it has a different kind of reputation
than others. It has to advertise a lot because it is not in commercial area. And
one another thing is as it is situated in Mirpur. People of other area are
unknown of it. It is the main barrier of BUBT.
5) Socio-Cultural: Social analysis includes the culture aspects and includes the
health consciousness, population growth rate, age distribution, career attitudes
and emphasis on safety. Attitudes, norms, cultures etc. in social factors affect
the demand for the students of BUBT and how BUBT operates.
 BUBT celebrates Pahela Boishakh every year.
 BUBT arranges many internal game competitions like, chess, carom,
etc. & gives prizes to winner.
 BUBT has also debating club for debate participator, Photography
club, which has recently performed exhibitions in permanent campus,
IT club which arrangements gaming contest that is not available in
other university in Mirpur.
 BUBT also participate in clamon indoor cricket 2013 & 2014, and in
2013 & 2014 they played better than other university in Mirpur.
6) Technology: Technology analysis is to technological aspects such as
automation, technology incentives and the rate of technological change. They
can determine barriers to entry minimum efficient production level and
influence outsourcing decisions.
 BUBT has 2 campuses which are covered
by Wi-Fi.
 BUBT has 2 computer labs which are
including more than 50 computers each.
 Each room contains multimedia & AC.
 BUBT’s results are published in the
official page of BUBT. The page of
BUBT is www.bubt.edu.bd.com
 BUBT has a website which is full of
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facilities of students demanded.
 Teachers submit the mark sheet through the website of BUBT.
7) Competitive forces: A competitive analysis is a critical part of company
marketing plan. With this evaluation, they can establish what makes the
product or service unit and therefore what attributes you play up in order to
attract a target market.
 All the Private Universities are considered as a competitor of
BUBT. But mainly Green University, Prime University & Manarat
International University are the main competitors of BUBT on the
basis of locational environment.
 Here Green University is the most competitive force of BUBT
because of their media advertisement.
SWOT Analysis
SWOT analysis is very essential elements for any organization. In any company’s
project analysis, the most important part is the SWOT analysis. The SWOT
analysis consists of two parts.
1. Internal Analysis.
2. External Analysis.
Internal analysis refers to the internal situations that are prevailing and their
impacts. They usually come along with the strengths & weaknesses. If it is within
the company then they will fall under these two categories. BUBT has also some
strengths & weaknesses.
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a) Strengths:
1. Brand Name: Any company’s first work is to establish their company name
& their brand name in the market. Bangladesh University of Business &
Technology (BUBT) has already been able to create popularity within young
generation especially within people in Mirpur. It is popular because of its
various items& its quality. The most popular items on the list are wellcultured behavior. Its success is the result of the students’ attitude &
behavior.
2. Respectable market: BUBT has captured almost 60 percent market share in
Mirpur area. It is good for the university because every university tries to
capture most of the market shares. That’s why; they are one of the largest
universities in Bangladesh.
3. Customer satisfaction: It always tries to give the high quality education to
its students, which helps for the students’ satisfaction because every
university’s main & common strategy is students’ satisfaction. BUBT
follows it by giving students with high quality education & other cocurricular activities.
4. Customer’s repetitive response: BUBT has a great support from its
students & the neighborhood college Dhaka Commerce College from the
very beginning. Its customers or students give repetitive response by
admitting here.
5. Plant & machineries: The University is fully automated. They don’t have
any manual working process regarding manufacturing products. Since they
are conscious about quality & hygiene, therefore their all machineries have
imported from well manufacturing company.
6. Competitive cost: The cost of the education is affordable. For completing
the honors courses its cost is totally reasonable for the people. It also gives
the students waiver according to their result. And for this middle class
people can admit their children in private university. BUBT makes them
capable to admit the middle class children in private university & get proper
knowledge which will help them to shine in future life.
7. Ingredients: There are essentially some elements in BUBT. Like-students,
multi-media projects, air- condition, chair, table, etc.
8. Experienced Management: It is a university where all the experienced
teacher & well quality tools are managed.
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9. Huge Skilled Work Force: All the personnel of the university like from the
Vice-chancellor to the peons are skillful, potential & hard working. They are
very active in their performance.
10.Promotional activities: For promotional activities they usually use the
media’s like TV, newspaper, poster etc. They also provide some signboards
on the street for advertising purpose.
b) Weaknesses
1. Traditional Distribution channel: BUBT believes in traditional
distribution channel to reach to the final destination. They have some rules
& regulations for the students to develop their qualifications.
2. Not proper financial projection: BUBT one of the drawbacks is, it did
not follow any exact financial projection or allocations of resources comply
with the real market situation. As a result, in the first three or four of
operations it realized some net loss.
External analysis on the other hand refers to the environments that are relevant to
the business directly or indirectly. They come under opportunities & threats.
c) Opportunities
1. Better economy: Day by day, world economy is growing up, which leads to
increase the per capita income as well as people’s choice has been changing
as well. Though at present, Bangladesh’s per capita income is very low but if
it changes with world economy then people will look for quality education
then it will be helpful to BUBT.
2. Brand expansion: BUBT is one of the very recognized & profitable
Universities in Bangladesh. If they are also able to recognize their students
by the quality, features & facility to people then very soon it will be able to
expand its brand name to the other. It is a great opportunity for them.
3. Expansion of market: If the people of Bangladesh become to know about
BUBT, then it will be able to expand the market share.
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4. Reduction of cost: BUBT tries to help the middle class people to get
admission in a private university & acquire knowledge of honors level. So it
reduces the cost of study in different sources.
5. Priority of Culture: BUBT is always sincere to adapt the culture of our
country. In that perspective, they have some rules & regulations for the
students to maintain the culture.
d) Threats:
1. Competitor: Manu reputed universities have already made huge market
in Bangladesh. In addition to that, each university is the competitor of one
another. In that case, BUBT has also so many competitors.
2. Culture: Culture can be a great threat to BUBT, because BUBT is firstly
introduced with considering about Bangladeshi culture, religion & taste of
people.
3. Government regulations: Since Bangladesh is a poor country and they
are unable to give proper education to all of the children overall the
country. For continuing a private university, government gives some rules
and restrictions to the universities.
4. Political factors: Bangladesh is totally a political country. Consequently,
the universities are involved with many politicians.
5. Other threats: Bangladesh has a poor economy, its technological
backwardness, its remoteness, its landlocked geographic location, and its
vulnerability to natural disaster all these things hampers the university
environment.
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CONCLUSION
As the world is moving towards globalization, the aspects of international trade are
increasing immensely. Free flow of information and communication has enabled
the passage of global business, to make at a faster and smother pace. Today there
are so many private universities in Bangladesh. These are so readily available these
days. Also the world has broadened its market and people have become more
change expecting. They do not resist to new cultures fiercely. In our case, BUBT a
successful university operating in Bangladesh has got the opportunity to get into
Bangladesh.
References
1. http://www.cgma.org/Resources/Tools/essential-tools/Pages/porters-fiveforces.aspx
2. http://www.valuebasedmanagement.net/methods_porter_five_forces.html
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