Assignment no 2

Business policy and strategy

Group members:
BBA-7
Hadiya Alam BBHM-S18-032
AbdulRehman Zafar BBHM-S18-022

Part 1: Introduction and History of the allocated industry and company.

Introduction and History:
Dawlance is one of the largest companies in Pakistan engages in appliance business. It started
business with refrigerator manufacturing in 1980. Now it is well-known and famous name in
home appliance industry with vast range including refrigerator, deep freezer, washing
machines, small appliances, air conditioners, televisions etc. Dawlance has a prominent and
significant market share in Pakistan because it provides its consumers the benefits of modern
lifestyle and world-class innovative products, unmatched national wide customer support, a
vast dealer network and after sales services throughout the country. The other key players in
the Pakistan industry beside Dawlance are LG, Haier, Waves, PEL and Orient.
Dawlance is a subsidiary of a Turkish company named as Arcelik. It is based in Karachi, it
was acquired by Istanbul-based Arcelik in [Link] products Dawlance manufactures are
refrigerators, air conditioners, microwave appliances, water dispensers, washing machines
and deep freezers. Through these effectively working of three sites Dawlance earned profit of
$220.6 million in 2015 by serving in Pakistan and some middle east countries. Company
operates thirty seven control units along with 750 plus franchises in whole country. With this
successful marketing strategies and effective functional decisions, Dawlance has very fine
growth of business.

Part 2: PEST Analysis and conclusion on industry attractiveness.

PEST Analysis
Political
Political condition now a days of Pakistan is not going well day by day blame games among
Politician make a great room for uncertainty. The internal and external security challenges
and Covid-19 trigger the challenges which directly affect the revenues of government and
that is try to fulfill by companies such as day by day tax hikes ,Inflation rate and unstable
government policies are directly effecting Dawlance and other companies .Here it is
important to mention that Dawlance is Turkish company and most of the parts are imported
from there but due to corona virus the ban on imports by Government directly affect business
of Dawlance.
Economic:
It is estimated that Pakistan Retail Market is around $ 260 Billion .Pakistan is a consumer
base country .Demand of home Appliances product although increase exponentially
.Dawlance also analyze the economic factor of Pakistan and target customer ranging from
middle class to upper class. It is worth to mention here that industry sector contributes 18.3 %
in Pakistan GDP and Dawlance being market leader contributes a large sum in GDP of
country.
Social:
Most of the People lives in rural areas which is great opportunity .Most of them do not know
about home appliance products so it is important to aware them from these products by ads
and such mediums .Moreover by customizing the products according to demand and culture
of customers can easily accept the Products which affect their lives socially and improve their
living conditions.
Technology:
Dawlance should focus on modern technologies. They should transfer of their technology to
Pakistan which makes less there operations as well as their cost. If they adopt the term
Economies of scale then it will help them to remain dominant leader in the market and tackles
down other emerging players.
Part 3: Industry scanning using the Porter’s five force model and conclude on prevailing
competition level.

Porter 5 forces model:

1. Rivalry among existing compaction:
The biggest rivals of Dawlance is/are Orient and Haier.
These two are also the most selling home appliance’s company in Pakistan.
These companies are fighting back to back with each other to be the top one in the
market and secure the largest share in market.
2. Bargaining power of buyers:
Dawlance is an old brand. It’s been working for 30 to 40 years and mostly selling
appliance for long time and have customer loyalty with it. But if its customer demand
new style, features, variety of colors, size and shape, which Dawlance is lacking now,
and their competitors provide their consumer these things then the customer will have
the bargaining power. Therefore Dawlance now is currently targeting new wed
 couples and launching new products with different colors and modern technology so
they can have the bargaining power over customers.
3. Bargaining power of suppliers:
Dawlance is an international company and it is situated in Turkey. Most of its
manufacturing are done there and then they shipped it to Pakistan for assembly and
distribution. Their material came from different other countries like Japan and China.
If their suppliers decided to sell the material to their home countries’ company than it
will be give the bargaining power to their suppliers.
4. Threat to new entry:
Dawlance is in market from way to long that’s why it’s Brand reputation is great and
it’s in top in the market, but it does not mean a new entry cannot straddle it. If a new
company came with good price or reasonable price with great technology like
automatic washing machine, or new features of iron, or different variety of
refrigerators with instant cooling power or more it can damage Dawlance’s sales.
5. Threat of substitute product:
If Orient and Haier or any other of Dawlance competitors introduce the different
range of price than Dawlance or introduce the modern technology than it will be a
threat to Dawlance.
Part 4:Make a list of 15 opportunities and threats present in the industry emerging out of
PEST Analysis and Porter’s Five Force Model in relation to allocated company.
Opportunities and threats:
1. Large amount to people in ruler areas who wash cloths with hands.
2. Demonstrating features to customer can help them understand and they may want to but
it.
3. Middle class people want product in their income range
4. New generation wants new features, style and colors of products.
5. By improving their services they can tackle more market.
6. Use of latest technology.
7. Manufacture in Pakistan to provide labor in our country and make work efficient.
8. Prices higher than competitors.
9. Law and order situation can affect the company.
10. Political involvement in company matters also weakens the company.
11. New entry can be a threat. Chines companies with better technology and less price.
12. Shipment can be delayed due to present condition.
13. Due to COVID-19 customers are not buying more products.
14. Less use of technology can be a trouble.
15. The expansion in market.
Part 5:Make EFE Matrix of the company and interpret its result.
EFE (External Factor Evaluation) matrix
Key external factors Weight Rating Weighted score
Opportunities
1. Large amount to people in ruler areas who wash cloths
 with hands.
2. Demonstrating features to customer can help them
understand and they may want to but it.
3. Middle class people want product in their income
range.
4. New generation wants new features, style and colors of
products.
5. By improving their services they can tackle more
market.
6. Use of latest technology.
7. Manufacture in Pakistan to provide labor in our country
and make work efficient.
Total

Key external factors Weight Rating Weighted score

Threats
8. Prices higher than competitors.
9. Law and order situation can affect the company.
10. Political involvement in company matters also weakens
the company.
11. New entry can be a threat. Chines companies with
better technology and less price
12. Shipment can be delayed due to present condition.
13. Due to COVID-19 customers are not buying more
products.
14. Less use of technology can be a trouble.
15. The expansion in market.
Total

Part 6:Identify and make a list of (Critical Success Factors) CSF’s of the industry.
Critical Success Factor:
Understanding user needs:
Dawlance is one of the early movers in home appliance industry. Dawlance clearly
understand Pakistani consumer and make a different positioning among them .They are early
mover to introduce their product with famous Chefs such as Mehboob and Gulzar .They have
more now more than 100 microwave oven models which offers different operations as per
user need e.g.: air fryer microwave oven which fry food and ensure crispy perfection using
just one drop of oil. Another important example is value added Chemical free mosquito
repellent split air conditioners, low voltage series of refrigerator which can run at 135 volts
.These innovative and customer problem solving approach make Dawlance reliable and steps
ahead in the league.
Marketing and Awareness:
 Dawlance take the first mover advantage and now it is sustaining the title of being the No.1
brand in home appliances of Pakistan. Due to rapid technology change and competition .we
make sure that people know about our product .For that we use insights from across the globe
.To overcome challenges of consumer demand and make different consumer behavior tactics
framework that people when ever think about home appliance our name came first and try to
make a sustainable relations through our customer support.
Agility and R&D:
Dawlance is frequently updating its product portfolio and bringing innovation in its product
portfolio which made it No.1 brand in home appliances in Pakistan. In Dawlance the R&D
and Marketing team work closely to technically test before the launch of the product .The
strong market research and real time data help them to take decision to make sure that meets
with the customer needs. Most of the innovative solutions are tested before 12 to 18 months
before the launching in the market.
Part 7:Identify company’s major competitors and make CPM.
Competitive profile matrix (CPM)

Dawlance PEL Orient

Critical success factor Weight Rating Score Rating Score Rating Score
Advertisement
Product Quality
Price competitiveness
Customer loyalty
Modern technology
Market share
Global expansion
Research and development
Total

Part 8:Do an internal analysis with the help of VRIO framework, and Value Chain Analysis.

VRIO Key Issues

Value First Mover Advantage ,Customer Support, Data Analyst to make decisions
Rarity There are number of companies which are copying the strategy to penetrate in the
market .but Directly no one is dominating except Dawlance in the market.
Imitability Yes companies which are lacking because of financing they face difficulty in the
market and among them 80% companies shut down in there early days.
Organization Yes there may be some procedures or strategies which can affect the sources such as if
company policy to target onlythe conventional marketing (TV, Billboardsetc.)that lead
there sakes downward in current situation where as if use hybrid approach they can
easily boost their sales.

VROI Frame work

 Resource V R I O
Infrastructure
R&D Skills
Manufacturing
Facility
Employee
Compensation
Quality Product
Accessibility
Corporate
Social
Responsibility
Buying Power

Research and
Development
Customer
Relationship
Renowned
Brand
Agility

Part 9:Make a list of 15 Strengths and weaknesses.

Strengths and weakness:
1. The company has a good name in the market.
2. It is also one of the leading company of Pakistan,
3. Better product durability.
4. Reliable and long lasting products.
5. Has sixteen distribution center in whole country.
6. Appliances are affordable and easy to use.
7. Customer satisfaction is their number one priority.
8. Company is losing money due to extra labors and manual work.
9. It is based on turkey so it may be costly.
10. Due to COVID-19 the shipment can be delayed.
11. Few retail outlets.
12. No complain outlets.
13. Average technical skills.
14. Workers not being completely satisfied.
15. Less advance technology then multinational organizations.

Part 10:Make IFE Matrix of the company and interpret its result.

Internal Factors Evaluation

Weight Rating Weighted score
Strengths
1. The company has a good name in the market.
2. It is also one of the leading company of Pakistan,
3. Better product durability
4. Reliable and long lasting products.
5. Has sixteen distribution center in whole country.
6. Appliances are affordable and easy to use.
7. Customer satisfaction is their number one priority.
Total

Internal Factors Evaluation

Weight Rating Weighted score
Weakness
8. Company is losing money due to extra labors and manual work.
9. It is based on turkey so it may be costly.
10. Due to COVID-19 the shipment can be delayed.
11. Few retail outlets.
12. No complain outlets.
13. Average technical skills.
14. Workers not being completely satisfied.
15. Less advance technology then multinational organizations.
Total