Exploring the potential of Bangladesh Ready-Made Garments to the global market
A research project is something that researchers undertake in order to find out things in a systematic way, thereby increasing their knowledge (Saunders et al., 2009). Two phrases are important in this definition of the research project: ‘systematic way’ and ‘find out things’. According to Ghauri and Gronhaug (2005), ‘systematic’ suggests that research is based on logical relationships and not just beliefs. This means the research project involves an explanation of the methods used to collect the data, argues why the results obtained are meaningful, and explains any limitations that are associated with them. On the other hand, as Ghauri and Gronhaug (2005) notes, ‘to find out thins’ suggests there are a multiplicity of possible purposes for a research project. These may include describing, explaining, understanding, criticizing and analyzing. It also suggests that the researcher has a clear purpose or set of ‘things’ that the researcher wants to find out, such as the answer to a question or number of questions.
This report conducts a research project on a particular research area based on Bangladesh’s ready-made garments industry and its global market position.
2.0 Research Area and Research Questions
2.1 Research Area:
Exploring the potential of Bangladesh ready-made garments to the global market
2.2 Research question:
- What is the infrastructural condition of Bangladesh’s ready-made garments industry?
- What is the position of Bangladesh’s ready-made garments in the global market?
- Are Bangladesh’s ready-made garments industry-ready enough to attract more foreign investors?
- Can foreign investors invest in Bangladesh’s ready-made garments industry?
3.0 Explanation of research question with its aim, scope and intended research approach
According to a report by World Bank (2013), China is number one where Bangladesh is second for ready-made garments export to global markets. However, after the introduction of the China Plus-One Policy by advanced nations the export in China has been declining. On the other hand, Bangladesh’s garment industry has been growing up dramatically despite the world economic crisis of 2009 (World Bank, 2013). The key reasons are Bangladesh can make garments products at cheap prices due to low labor cost, low raw material cost, duty-free access of garments products, etc. In consequence, the investors are now deeply thinking to take this advantage of the Bangladesh garment industry following the China Plus-One Policy.
However, the recent deadly incidents including garment factory collapse and fire in a garment factory in 2013, political violations and unrests, labor strikes and labor violations, etc in Bangladesh garment industry has brought global attention giving pressure to foreign investors including the US and EU to respond by using their financial weight to enact change. These issues have made conscious both foreign investors and Bangladesh garments manufacturers.
The researcher believes this study will be helpful not only for the Bangladesh garment industry but also for foreign investors. On one side, the Bangladesh garment sector will get proper guidelines on how to improve the industry and attract more foreign investment. On another side, the investors will be able to make the right decision to invest in the Bangladesh garment industry in comparison with China.
Bangladesh has shown incredible success in its ready-made garment sector over the last two decades (OSHE, 2012). The dependence on the Bangladesh garment industry has been growing dramatically from only 48 garments factories in 1983 (Statistical Year Book of Bangladesh, 2008) to over 5000 garments factories now (BGEMA, 2013). It has surpassed the most positive expectations including economic and social development exporting its huge amount of garments products at cheap prices over the world (AMRC, 2012). According to IMF world economic outlook database (2010), in comparison with China, Bangladesh has been able to make the sure low cost of production with its low wages overheads in its ready-made garments sector. It also ensures and certifies the infrastructural facilities.
These opportunities might attract the eyes of foreign investors to invest in Bangladesh (Tour to Bangladesh.com, 2012). On the other hand, given the risk of investing in China disclosed by the SARS pandemic (2009), foreign investors from advanced western countries including the US and EU have carried out a “China-plus-one” policy of relocating their production facilities, investment and operating headquarters in South-Asian countries other than China. It has stimulated a fad to foreign investors to invest their capital in the Bangladesh garment industry (Taipei Times, 2012). As a result, it is time for Bangladesh to assess the capability of its ready-made garments industry to attract more foreign direct investment offering an alternative to China.
1.2 Aim and objectives of the research
The focus of this research is to investigate the market position of the garments industry of Bangladesh to recommend strategies for Bangladesh garments manufacturers to improve their exports and attract a significant amount of foreign direct investment (FDI)
- To review the current literature on micro and macro-environmental analysis to determine suitable models for the application to the garments industry in Bangladesh.
- To critically evaluate the market position of the Bangladesh garments industry using the PESTLE framework and Porter’s Five Force Model.
- To compare and contrast the position of the Bangladesh ready-made garments industry with its competitors mainly China, using the technique of SWOT analysis.
- To recommend key strategies to Bangladesh garments manufacturers to exploit the opportunities for improved foreign direct investment (FDI)
1.3 Research approaches
Saunders, Lewis and Thornhill (2008) say that the deductive approach is preferred for issues on which there is a wealth of literature. In consequence, the deductive approach has been applied to study the external issues of the Bangladesh garments industry which have a wealth of literature and from which a theoretical framework has been defined and a hypothesis has been created, and then tested based upon the quantitative and statistical data.
Adopted from Trochim (2008)
Figure 3.4: Deductive approach applied in the
On the other hand, according to Saunders, Lewis and Thornhill’s (2008) suggestions, the inductive approach has been applied to study internal issues of Bangladesh garments sectors because the issues are new and there is little literature. A theory that has been built up through this approach relies on rich and qualitative data through observation, interviews, samplings and surveys.
Adopted from Trochim (2008)
Figure 3.5: Inductive approach applied in the study
1.4 Ethical issues regarding the research work
Confidentiality and anonymity are the two most significant ethical issues (Gilbert, 2011). The conducted research has maintained the anonymity of participants’ personal details, even any garments name too by encrypting data which has ensured the confidentially of participants. According to Diener and Crandall (2008), ethical issues include four key areas in the research work: harm to participants, lack of informed consent, invasion of privacy, and deception. Regarding these are the undertaken research has followed a set of principles: 1) participants have been given consent prior to any involvement; 2) participants have been made knowledgeable on research purpose before they participate in, and comfortable of independent views without fear of consequences (Fritz, 2008); and 3) participants have been made aware of any potential risk and benefits in the research work.
1.5 How the research will be evaluated
The major criteria that will be used to evaluate the research work are “research reliability” and “research validity”. Reliability will be used to measure free of measurement error. It will be assessed by the consistency of the measure. For instance, a reliable weight scale will be used to produce a consistent weight estimate for the same object over time. Different kinds of validity will be used to refer to confidence in making certain conclusions. Internal validity will refer to the confidence of making cause-and-effect conclusions from the results of your study. External validity will make the confidence in generalizing the findings of the research work Construct validity will deliver the confidence of theoretical constructs attempting to represent in research (e.g., time pressure, anger) are accurately represented by your real-world methods……………..