Competitor Analysis

Square Pharmaceuticals
Square pharmaceutical is now the most leading company in Bangladesh since 1985 and is now on its way
to becoming a high-performance global player. Today it has achieved a state of mind among consumers.
This company has founded in 1985 and since then with hard work and dedication among employees and
top management, it has reached the position where every pharmaceutical company wants to reach.
Square went public in&66& and is currently listed on the Dhaka Stock exchange and 8hittagong Stock
exchange. Square pharmaceuticals Ltd., the flagship company, is holding the strong leadership position in
the pharmaceutical industry of Bangladesh. According to a June 2011 Business Monitor International
(BMI) report, Bangladesh had a domestic pharma market worth BDT 59,330.7 million in 2010(US$ 858
million, Islamic Dinars 550.6 million – a unit of the Islamic Development Bank.) Most significantly, the
growth rate and investment environment has been deemed highly attractive.

While there is fierce competition in the industry, the previous sections show that the market naturally
belongs to a few strong players, whereas smaller portions of the market are squabbled over by smaller
companies. Among those smaller companies are Rangs, Navana and Gaco who are characterized by a
narrow product line and inferior product quality. Following them is the group consisting of more high-
quality offerings which include ACI and SK+F but this group lacks variety in the product line. The final group
consists of Square, Incepta, Acme and Beximco; they are the more close and real competitors of Square
pharmaceuticals as each company challenges the other with an equitable quality and product line
offering.

Fig: Strategic group mapping of the pharmaceutical industry in Bangladesh

Square Hospitals
Currently the 57th largest economy in the world, Bangladesh has been making significant socio-economic
developments in recent years. GDP has been growing at an average rate of 6-7% over the past decade.
However, despite improving healthcare indicators such as decline in mortality rates and increase in
average life expectancy, the health sector of the country is yet to reach its full potential. Total healthcare
expenditure stands at only 3.7% of total GDP of the economy. In the private sector, providers can be
grouped into two main categories. First, the organized private sector (both for-profit and nonprofit) which
includes qualified practitioners of different systems of medicine. Second, the private informal sector,
which consists of providers practicing in rural areas not having any formal qualifications such as untrained
allopaths, homeopaths, kobiraj. Along with private clinics and hospitals, the number of diagnostic centers
in the private sector is growing. In 2012, approximately 5,122 laboratories and other diagnostic centers
were registered with the Ministry of Health and Family Welfare (MOHFW, 2012). In the private for-profit
sector, there are some large diagnostic centers in the cities (Lab Aid, Ibn Sina, Popular and Medinova)
providing laboratory and specialized radiological tests. Some of these facilities maintain a high standard.
In the nonprofit private sector, there are centers like the International Centre for Diarrheal Diseases and
Research, Bangladesh (ICDDR,B), which has a modern laboratory providing research facilities and extends
laboratory services to the general community. Moreover, in Bangladesh there are a number of
professional organizations who address the rights of medical professionals at different levels, such as the
Bangladesh Medical Association (BMA), Bangladesh Private Medical Practitioners Association (BPMPA),
Public Health Association of Bangladesh, Bangladesh Pediatric Society and the Nephrology Society of
Bangladesh.

The strategic group mapping above suggests that Square Hospitals belong to the leading group of
companies in the industry which consist of competitors such as Apollo, United and BSH. Competition
within this group is more appropriate as it differs from other market players with distinctions in high
quality and high variety of service offerings. Government clinics and other smaller competitors have
shown to belong to another similarly characterized group with mediocre quality and variety. A similar
group categorizes the highly homogenous services of diagnostic centers and specialized hospitals such as
Labaid and Ibn Sina. The last group that has been deemed to be the least qualified is the small private
clinics led by individual or a few doctors.
 Fig: Strategic group mapping of the healthcare industry in Bangladesh

Square Toiletries
In Bangladesh the cosmetics and toiletries market is around 4000 corers BDT and the Unilever Bangladesh
captures almost 50% of it. The local companies also give it good run for money. The major players of local
markets are Square toiletries ltd., Kohinoor chemicals ltd, Keya cosmetics limited, Mousumi industries
limited and Aromatic cosmetics limited etc. Unilever capture more than 40% of the market share. Square,
Kohinoor, and Keya have 18%, 20%, 13% of share respectably.

Locally produced toiletries now play a significant role in a sector that has been dominated by imports in
the past. Most of the products in this sector are common consumer goods which have a large demand in
the domestic market. Imports of cosmetics and toiletries are targeted mostly to the middle and high-end
segments of the market. Most of the local customers are quite happy with the domestic products as long
as product performance is satisfactory and the price is reasonable. While most of the manufacturers focus
primarily on meeting the demands of the local market, some firms have started exporting cosmetics and
toiletries products from Bangladesh. Most local manufacturers focus on the middle-to-low price market
segments. The production figures of major toiletries firms over a five-year period suggest that all the major
firms have experienced steady growth. Although the toiletries industry consists of a large number of firms,
the top seven firms possess 95 percent of the market share for toilet soap, laundry soap and detergent.
 Fig: Strategic group mapping of the cosmetic and toiletries industry in Bangladesh

The figure above shows that Unilever alone can be characterized to be the sole proprietor of a vast variety
of products that offer superior quality. Square belongs with Keya and Kohinoor to a group that has a much
lesser range that Unilever and the quality perceived for these products is also significantly lesser but
medium in scale. Brands such as Cute, Delta and Kollol are perceived as low-end poor-quality products
that do not have much of a selection to offer to consumers. Therefore, Square Toiletries can find its more
apt competitors to be the likes of Keya and Kohinoor.

Square Textiles
Only a few years back, the textile sector in Bangladesh lagged behind but the current scenario is
different. In recent years, a mentionable figure of money has been invested in this industry. Government
is also encouraging this sector by making some favorable policies and minimizing the regulations, so that
this sector can be fostered and grown Among the domestic companies Square is one of the leading one.
The other potential competitors are Padma Textiles, Shamim Textile etc. Competition is now severed after
2005, that is, during the post multifiber agreement period. World market is now Quota free at this current
time. So, Bangladesh is now competing with countries like Sri Lanka, China, Pakistan, Vietnam etc.
 Fig: Strategic group mapping of the textiles industry in Bangladesh

While industry leaders such as Shamim and Padma textiles are benefitted by an expanded and superior
line of qualities, their competition is separate and distinct in the industry. The lesser tier of Square and
Mother textiles is almost similar but have fallen short mostly on quality rather than product line; the
competition here is also contained and limited to Mother in the short run. The lowest tier of companies
consists of those with the lesser performance in the market due to poorer quality and lesser sales due to
unavailable variations in the product line. Therefore, without significant changes in quality and product
line variation, Sqaure Textiles’ competition is limited to Mother Textiles.