Still now Chittagong port of the country is not properly reorganised so that shipment time period can be reduced. Further Mongla port of the country is not utilised properly for which it becomes almost ineffective.
Market size in Bangladesh is too small as in economic terms though the total numbers of population are too large, as the purchasing power of the large majority of the population is minimal and around one -third of the total population is outside the market. Only those firms, which have competitiveness, may survive with the economies of scale. In this case we can consider the diamond theory of Porter. Porter (1990) in his diamond theory describes four attributes to achieve competitive advantage for local firms. These are: factor endowments; demand conditions; related and supporting industries; and firm's strategy, structure and rivalry.
A news item publishes in The Holiday (May 20, 2005) shows that Bangladesh's earnings from export of readymade apparels and knitwear rose to $5.6 billion in FY2003-04 from $4.9 billion in the year before. This healthy rise in exports during the previous fiscal year took place despite lower exports to the United States.
The export prospects for knitwear products from Bangladesh now appear brighter than that of apparels because of the knitwear industry's good production and value-addition base compared to the garment sector. Value addition in knitwear has been estimated at around 60-70 per cent while in theapparel sector it has been variously estimated at between 25 and 35 per cent.
marketing@alchempro.com
