Interesting Facts about Bangladeshi Diversified Jute Products Industry

There are two major reasons for reviewing the literature; first, it is a preliminary search that helps to generate and refine the research ideas, and second, it is part of the research project proper. By critically reviewing the literature,the awareness and knowledge of the subject is enhanced and it will help to further clarify the research questions [Saunders et al., 2003].

Next, literature will be sought on the subject of export promotion and internationalization, to retrieve theories and models that can support the research and give it a scientific basis to work from. Also, it could be useful to look at internationalization and export programs from developing countries that have already been conducted, because looking at similar research can reveal relevant information that can be useful to the current research.

Opportunities and Threats of the European Market for Diversified Jute Products
The literature in this part will focus on the characteristics of the sector. Root (1994) developed a framework with factors that influence the choice of the entry mode. This theory is supported by Porter’s five forces framework [Johnson & Scholes 2002] and the PESTEL framework [Johnson & Scholes 2002]. Through secondary data, knowledge is obtained about the market and its opportunities and threats. Institutions like the Dutch Foreign Trade Agency (EVD), and the Dutch Centre for the Promotion of Imports form Developing Countries (CBI) are consulted to gather secondary data.

Strengths and Weaknesses of the Bangladeshi Diversified Jute Products Industry
Together with the literature that deals withthe value chain, a list of measurable parameters and fields of interest are determined. These parameters are the basis for a questionnaire. Interviews are held, based on the questionnaire, with producers of Jute Diversified Products (JDPs). The objective was to get insights into the products, problems and difficulties of exporters, marketing and competition in the Bangladeshi JDP industry. This primary data is important to obtain knowledge of the market and its stakeholders. Another aspect here is to look at the competitiveness of the Bangladeshi JDP industry. What is the competitiveness of the Bangladeshi jute industry compared to, for example, the Indian jute industry?

Promising Market Opportunities in Europe for the Bangladeshi Diversified Jute Products Industry
The concept that is used is the combination from the strengths and weaknesses of the (Bangladeshi) JDP industry with the opportunities and threats of the (European) market in a SWOT analysis. From the confrontation matrix that derives from the SWOT analysis, market opportunities are formulated.

Export Potential of the Bangladeshi JDP Industry with Respect to the Market Opportunities Identified
Seringhaus and Rosson (1991) developed a framework that outlines company needs within export development and promotion. Theories of export promotion and internationalization of the firm are supporting theories within this part of the research. Goal is to determine what is present in the market, which capabilities are there, which capabilities are needed, and what is lacking in the market to take advantage of the opportunities that are identified. From this assessment it becomes clear what the export potential is, and how the different markets of Bangladesh and Europe could be linked.

PROGRESS Activities to Develop the Bangladeshi Diversified Jute Products Industry
Taken into account the results from the research and the market opportunities that are identified possible interventions for PROGRESS are developed. Relevant theories are those of market matching, and export development and promotion.The interventions should be developed according to the Business Development Services (BDS) market system approach which PROGRESS applies.

History of Jute in Bangladesh

Bangladesh is a developing country from south East Asia with lots of potential sectors in it. There are plenty of emerging sectors in Bangladesh, of which some are being utilized properly right now and some still in their ancient shapes due to lack of infrastructural and financial problems. 

However, among couple of sectors that are being greatly utilized currently in Bangladesh, Jute industry is one of them. In fact, around 1.5 million people in Bangladesh are now living by this huge jute industry. Hence, jute is one of the main sources of foreign exchange earner and the contribution of this jute industry is really huge, even before Bangladesh inception in 1971. You might be overwhelmed knowing that almost 80% of world’s jute was produced in Bangladesh in the 1950s and 1960s. But unfortunately because of certain unavoidable problems and emergence of substitutes, jute market started to collapse. As a result, jute industry covered only 5% of total exports from Bangladesh in 2000. And this 5% reached to 3% in 2004, even though the demand of jute was gradually increasing at that time. 

Such decline in jute exports in Bangladesh grabbed attention of responsible persons and authorities and they took crucial and effective steps to make this industry alive again. In effect of their dedicated efforts, small and medium enterprises (SME’s) were encouraged and motivated to step ahead and invest in jute industry of Bangladesh.

This strategy worked great at that time as more and more businessmen and investors step ahead to help retain this potential jute industry in its previous condition. Good news is that now there are lots of world class jute bag manufacturers and exporters available in Bangladesh who are manufacturing and exporting numerous kinds of jute products like jute bags, jute rope, jute tape, jute twine, etc. around the world.

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