COST LEADERSHIP OF BEXIMCO TEXTILES:

Beximco group of companies is one of the largest conglomerates of Bangladesh which started its
journey in 1970. The group has evolved from being primarily a commodities trading company to
a leading, diversified group since the early days, with a presence in industry sectors that account
for nearly 75% of Bangladesh’s GDP.

Beximco have great association with their suppliers who are supplying quality raw materials to
them which is making them with higher possibilities of improving yield. Because of the high
number of suppliers accessible, they can deal about the cost of the raw material. So, they have a
competitive edge over their rivals about getting the raw materials at lower cost. Additionally, as
Beximco is a reputed group in Bangladesh the suppliers need to have great association with them
also. So, they give them the raw materials at lower costs by having a less overall revenue which
they don't give to alternate clients.

Beximco is now investing to come up with their own supply chain team who will supply them
raw materials and distributor team who will distribute their own products. As a result, they will
get good quality of raw material and will not have to pay any higher cost for it. In short, they
don’t have to worry about quality and cost. Furthermore, as they will distribute their own
products, they will be able to cut extra charges of distribution cost. Besides they will be able to
utilize their knowledge regarding market segment and consumer demand. Thus, they will be able
to meet the consumer demand by fairly distributing their products. Moreover, they will get the
idea of real consumption rate of their products among different districts. It will eventually help
them to understand their consumers taste and boost their sales.

Competitive advantage is very important to sustain in industry for longer period of times for any
organization or company. The competitive advantage of Beximco Textile Limited is their quality
products at the same time they try to charge as low price as possible. That is why it is well
known even to the foreign buyers as well.

The Beximco Textile Limited has targeted broad market as market segment. For that reason, they
are providing the products at lower cost. Bangladeshi garments are renowned worldwide for
cheap labor cost. Among all the competitors Beximco has established itself in a way so that they
can provide their valuable consumers higher quality product but at lower price.
Beximco Textile Limited has nineteen lines of productions. All these lines are utilized at their
highest level. Therefore, they have reached their higher level of production. However,
Bangladesh will get more foreign contracts if they improve safety issues. Thus, if Beximco
invest in more products line they will be able to earn more profit which will enable them to avoid
chasm.

To ensure the quality Beximco Textile Limited check the quality at the end of the production.
However, they might check the standard after every step, but which will increase their cost. As
they need their own staple supplier and skillful workers, so checking the standard after the
assembly is cost effective for them.

In Bangladesh there are 5400 garment factories. All of these are producing goods at lower price
and offering it to consumers at lower price. Among all these Beximco Textile Limited has better
brand image. Moreover, getting raw materials from their own supplier at lower price is an
incentive for them than competitors. Their major competitors are Square Textile, Hamim Group
and Sharmin Textile Limited etc.

Beximco usually sells to their customers at cheaper rate, but their customer’s like- Levis, H&M
charges higher price when they are selling by their own. So, basically the famous branded shops
are buying from Beximco at lower rate and again sell it at higher rate- as they're making more
profit and due their strategy the buying houses are more emphasizing on them rather than their
competitor like Square Textiles Ltd.
Beximco basically does the business to guarantee the business trade. Their customers are brands
that are world famous, which suggests quality are often a requirement to take care of . However,
those brands sell the products at higher price since they need the upper manufacturer image.
Also, once they place their order, they could require higher quality at less price. Ensuring higher
quality at lowest price is not possible but you'll be able to give slightly lower price versus
competitors. Beximco is specialized within the cloth manufacturing for them to charge but their
competitors and since of that their value proposition is more for a smaller amount. Beximco
Textile Limited features a lot of suppliers in their hands. So, they can bargain with them for their
suppliers. Thus, they can reduce their cost from the very addition of the production. The
Beximco Textile Limited provides the upper quality materials from other supplier at low tag.
Their workforce is competent, effective and efficient. And so, they do less mistake during the
time of the production. Because rates of the mistakes are less therefore the speed of the rejection
are often less. If the speed of rejection rises, the value of the assembly rises. On the opposite
hand the speed of rejection decreases, the value of the assembly also decreases. Thus, the
Beximco Textile Limited produces good quality product at lower prices because of their
customer. As their cost of production is low for them to charge lower price to their customer. As
they typically are providing the good quality products at low cost than their competitors there're
providing more for a smaller amount value.