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Pran Group

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Submitted By amanullah
Words 744
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Agricultural Marketing Co. Ltd (PRAN GROUP) was established in 1980. PRAN stands for Programme for Rural Advancement Nationally. Now they are the largest processors of fruits & vegetables in Bangladesh. The Group comprises of 10 companies. The head offices are located at Dhaka with production facilities around the country.
AMCL (PRAN) Group ("The company") belongs to Food and Beverage Industry. The food and beverage industry faces the insatiable demands of retail consumers. To meet their constantly evolving requests the industry must continually update existing product lines as well as new products to be identified as the next craze.
The profit potential of each of the industries in which the firm is competing is important because the profitability of various industry differs systematically and predictably over time. The average profitability of an industry is highly influenced by the “5 forces”. • Competitive Force 1: Rivalry among Existing Firms:
The average level of profitability is primarily influenced by the nature of rivalry among existing firms in the industry. The competitors of the industry are fighting intensely to grab their market share.
Industry Growth Rate - Industry is growing rapidly as the consumers both in rural and urban areas are becoming habituated more and more gradually on processed food than home made food items.
Concentration and Balance of Competitions - The number of firms in the industry is large. As there is no unique dominant firm or several equal sized players to dominate the market, price competition is severe.
Degree of Differentiation and Switching Cost – Products are almost identical and switching cost of consumers is insignificant.
The ratio of Fixed to Variable costs: The ratio of Fixed to Variable costs in this industry is very high. So firms have an incentive to reduce prices to utilize installed capacity. •

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