BUS251 REPORT

Report on the architecture firm “Bespoke Architecture”

BUS251.16

Faculty: HMM1

Group:1

Name ID
Naushaba Mahmud 2121615630
Saadat Hasan 2121316630
MD Taukir Hossain 2022260630
Md. Abid Sharif 2012229630
MD. Sadman Goni 2031465630
Shibly Sadik 2011402630
Srabanti Dey Orthy 2014155630
Brand Name: Bespoke Architecture

Brand LOGO

Mission and Vision of the company.

Mission: To create innovative, sustainable, and high-performance buildings that enhance the
quality of life for our clients and the community.
Vision: To be recognized as the leading architectural firm in Bangladesh, known for our
exceptional design, technical expertise, and commitment to sustainability.

Industry Analysis:
For the industry analysis, we will be using Michael Porter’s five forces to analyze the
environment in which Bespoke Architecture will operate and to develop effective strategies for
its success. Porter’s Five Forces Model will help us to understand the industry structure, identify
competitive threats and substitutes, evaluate profitability and develop strategic plans.
1. Power of suppliers

Threat of suppliers in Porter's Five Forces refers to how vulnerable The Bespoke Architect is as
an architectural firm to the dynamic environment of Bangladesh's raw material industry. This
force measures how the suppliers can create a reliance on them and whether or not they can be
easily substituted. Moreover, the power of suppliers is also taken into account in this Force. In
this context, for an architectural firm, the suppliers are those who provide them with raw
materials such as cement, steel, bricks, etc. Each of these raw materials has an industry of its
own and can impact The Bespoke Architecture in a different way.

For the cement industry, there are major key players who hold the majority of the market share.
Some of them are Shah Cement, King Bashundhara, Fresh and Crown cement who combined
hold about 43% of the market share. Therefore, in terms of supplier power, these industry giants
possess a large influence over an architectural firm and can impact their prices heavily
(Bangladesh Cement Manufacturers Association).

In 2021, due to an increase in the prices of raw materials for cement production, prices of each
50-kg bag of cement went up by around 12%. This rise in cost put a significant toll on the
construction industry. For an architectural firm looking to provide a complete package to its
consumers, they would certainly have to bear this price effect. Automatically the prices of their
services would increase (Chakma). For example, if someone wants to take on the complete
service from an architectural firm, from construction to designing their house, they would face an
increased cost due to the rise in cement prices. With an ongoing power and gas crisis, rise in raw
materials prices and depreciating Taka, both demand and output for cement has fallen. This can
be reflected by a decrease in demand for services by architectural firms.
The steel industry in Bangladesh is facing a situation similar to the cement industry. With a few
firms dominating the market. Their influence is equally important for The Bespoke Architect to
analyze and predict, since their dynamics will impact The Bespoke Architecture.

In a monthly business review by IDLC, the above firms are the major steelmakers in the
industry. While they have a big chunk of the market, in recent years, small firms have emerged
into the scene and are also enjoying the growth of the steel industry. With a growing steel
industry, prices of TMT bars from manufacturers such as BSRM, Abul Khair, KSRM and GPH
all have gone down since before the pandemic. This would create a positive impact on the prices
that The Bespoke Architect can charge as an architectural firm. A more price-friendly package
can be offered to the consumers. More importantly, the increase in price of cement can be
mitigated by the decrease in steel prices (IDLC).
Another aspect of construction supplies are the concrete bricks & blocks that are used.
Companies such as Meghna Group, Abdul Monem Ltd, and BCL group are the key players in
brick construction in Bangladesh. Each of these companies have a production capacity that is
enough to satisfy the demand of The Bespoke Architect. However, these firms are susceptible to
price fluctuations and data shows that average wholesale prices of bricks from April 2022 has
risen from BDT10500 per 1000 units to about BDT 13000 per 1000 units in September 2022
(BANGLADESH BUREAU OF STATISTICS).

Therefore, consumers looking to procure services of The Bespoke Architecture would try to wait
till the prices in the brick industry go down since a rise in their prices will affect the cost of the
overall package. When The Bespoke Architecture procures bricks for construction, firms such as
Meghna Group, Abdul Monem, BCL quotes a price that is BDT13000 per 1000 units, in October
2022. In terms of impact, with rising prices all over the construction industry, rise in prices of
bricks provide an added hassle and concern for the consumers.
2. Threat of substitute products

It is important to comprehend and analyze the threat substitute products are imposing on one’s
firm so that they can be prepared to adapt and adjust their strategies in accordance with the
market changes. According to Porter’s five forces that are used to analyze a company's
competitive environment, “threat of substitutes” refers to how easily a company’s product or
services can be easily substituted or replaced by other alternative companies with the same or
similar product or services.

In the context of this firm, the Bespoke Architecture, the substitutes would include the other
companies clients would choose to use for their services instead of hiring Bespoke Architecture
to construct and design their buildings. In Bangladesh, upon graduating from architecture school,
the newly qualified architects are restricted or prohibited from promoting or advertising
themselves and their services due to the regulations enforced by IAB (Institute of Architects
Bangladesh). This is done by them to preserve and uphold the strong standards and
professionalism of their work. As a result, the architects go to their substitutes - the developing
companies in Bangladesh, seeking employment under those firms. In spite of this, these
developing companies that employ these freshly credentialed architects, cannot publicly disclose
their names in their projects, thereby also obstructing their exposure to the clients. The
developers only referred to them as their “in-house architects”. Hence, with little dissemination
of their name and skills in the job market, customers are barely acquainted with proficient
architects in the country, which is why they usually prefer to opt for developers for their projects.

Prominent Developer Companies in Bangladesh

Shanta Housing Limited: Shanta inaugurated its journey in 1988 into the ready-made garment
sector (RMG) sector of Bangladesh before it exited the sector and transformed its passion to
strive for its commitment to the construction industry in 2005. It revamped the way people lived
in their homes through their blend of contemporary, practical and visually-appealing
architecture. Few of their prominent commercial works include Skymark and The Glass House at
Gulshan Avenue, Amari Hotel Dhaka, Shanta Western Tower and Forum in Tejgaon. (Shanta
Holdings, 2023)
Building Technology and Ideas Ltd (bti): bti was established in 1984 and is among the
renowned developers in Bangladesh. They played a substantial role in establishing REHAB, the
Real Estate Housing Association of Bangladesh, illustrating their pioneering approach to the
industry. (News, Real Estate, 2022) Over the last four decades, they have constructed many
housing complexes across Dhaka and Chittagong. (bti, n.d.)
Bay Development Ltd: Another renowned developer with its headquarters in Dhaka, that has
been operating in the industry for nearly 20 years. They have constructed over 30 residential
apartment projects, focusing on specialization in developing luxury apartments on a small-scale.
(News, Real Estate, 2022) Moreover, they have also worked in commercial development, retail
and design-consultancy sectors. Some of their commercial work include 23 Gulshan Avenue,
Park Heights etc. (Bay Developments, 2021)

Some of the other developers in Bangladesh are Concord Real Estate, Assurance Developments
Ltd, Rangs Properties Ltd, Sheltech and many others. (Team, 2018) Unable to find renowned and
competent architects in the industry, customers mostly prefer to choose these trustworthy
developers with the hope of constructing their homes. Therefore, it can be said that the threat
these developers impose on the architecture industry is quite high as customers can easily switch
to them from the few architecture firms known to them. Having said that, however, this situation
might not be constant for all cases. The threat of substitutes can vary depending upon a lot of
other factors as well. Even though the availability of property developers is a significant factor,
the cost and quality of them are also of substantial concern. While there may be multiple
developers to choose from, the pricing level, quality and workmanship offered by those firms
may not align with the preferences and budget of the clientele. Moreover, if Bespoke
Architecture is successful in establishing a robust brand image and reputation, customers will be
less likely to opt for alternatives due to the high switching cost.

3. Power of customers:

This force refers to the ability of purchasers to negotiate over terms of the sale and the price. The
number of customers, their purchasing power, and the accessibility of substitutes are all factors
that affect their ability to bargain.
For instance, due to their high purchase quantities, major merchants like Walmart in the retail
sector have significant negotiation influence over their suppliers.

Customers are the most important factors for any kind of business. Because of the customer a
business can also be under pressure. In the case of an Architectural firm the customers can put
pressure in several ways. Such as –

They can demand lower price:

Individuals, businesses, and organizations that require architectural services for their building
projects are generally the customers of architectural firms in Dhaka.

The customers can demand a low price to an Architectural firm which will ultimately result in
low profit margin. If the number of the customer is higher than in this case the risk will be lower
for the firm. They can easily switch customers and go for customers who will make me more
profitable. But if there are only a few numbers of customers then the bargaining power of the
firm will be low.

In the architectural sector, customers have a fair amount of power to negotiate as there are many
architectural firms available in Dhaka, creating significant competition. The firms must maintain
a good reputation to attract and retain customers. Because the customers have the option to
switch to other firms.

They can impose tight deadlines:

The customers can put pressure to complete projects in a short time and being a new firm, this
can affect the business by lowering the quality of the work which will ultimately harm the
company's reputation.

Due payments: If the customers delay payment for the completed work for a long period it will
put the Architectural firm under financial pressure. They will be unable to pay its employees and
contractors, and they will face difficulties investing in future projects.

To address these problems the firms should take several steps. They can build strong customer
relationships. This will help the firms to communicate with their customers more effectively and
the customer will be less likely to shift to another firm. The firm should also diversify their
customer base. This will help them to reduce their reliance on any particular customer.

The customers of an Architectural firm could be:

● Residential clients
● Commercial clients
● Developers
● Contractors

Some of the major customers who may have high bargaining power of an Architectural firm are:

1. Bangladesh government and public sector organizations

2. Bashundhara Group
3. Concord Group
4. Non-governmental organizations (NGOs)
5. Private sector organizations

However, there are many other organizations and individuals who require architectural services
for their building projects. In conclusion, clients that hire architectural firms in Dhaka,
Bangladesh might range from individuals to businesses, and they all need the knowledge and
skills of an architectural firm for their construction projects.

4. Competitors

The architecture industry in Bangladesh is quite competitive and there are many firms operating
in the market. Here are 5 major competitors and their strength and weakness in the architecture
industry in Bangladesh:

1. VITTI Sthapati Brindo Ltd.

2. ARCHITECTS ASSOCIATE Ltd.

3. SHATOTTO architecture for green living

 4. TEAM CO+LAB DESIGN

5. MASUD & Associates

VITTI Sthapati Brindo Ltd.: VITTI Sthapati Brindo Ltd. is a leading architecture firm in
Bangladesh, established in 1989. They offer a range of architectural, interior design, and urban
planning services, and have worked on many high-profile projects in Bangladesh and beyond.
Their designs are characterized by a fusion of traditional and modern elements, with an emphasis
on sustainability and context-sensitive solutions.

Strengths:

● Strong emphasis on sustainability and context-sensitive designs

● Experience in a wide range of architectural and urban planning projects
● Highly skilled team of architects and designers

Weaknesses:

● May be perceived as expensive compared to other architecture firms in Bangladesh

● Limited information available about their recent projects and design philosophy

ARCHITECTS ASSOCIATE Ltd.: ARCHITECTS ASSOCIATE Ltd. is another well-known

architecture firm in Bangladesh, founded in 1977. They offer a wide range of architectural and
engineering services, and have completed numerous landmark projects in Bangladesh, including
residential complexes, commercial buildings, and educational institutions. Their designs are
known for their functional efficiency and aesthetic appeal.

Strengths:

● Extensive experience in a wide range of architectural and engineering services

● Strong emphasis on functional efficiency and user experience
● Proven track record of completing large-scale projects on time and within budget
Weaknesses:

● Designs may be perceived as somewhat conservative or traditional

● May not have as strong a focus on sustainability as some other architecture firms in
Bangladesh

SHATOTTO architecture for green living: SHATOTTO architecture for green living is a
Dhaka-based architecture firm founded in 1995. They specialize in designing sustainable and
eco-friendly buildings, with a focus on using local materials and techniques. Their designs have
won numerous awards and recognition, and they have been featured in various national and
international publications.

Strengths:

● Strong emphasis on sustainable and eco-friendly designs

● Innovative use of local materials and techniques
● Unique and visually striking designs

Weaknesses:

● May be perceived as expensive compared to other architecture firms in Bangladesh

● Focus on sustainability may limit the types of projects they are able to take on

TEAM CO+LAB DESIGN: TEAM CO+LAB DESIGN is a multidisciplinary design firm based
in Dhaka, offering architectural, interior design, and branding services. They have worked on a
variety of projects, ranging from residential buildings to cultural centers and educational
institutions. Their designs are characterized by a modern and minimalist aesthetic, with a focus
on functionality and user experience.
Strengths:

● Multidisciplinary approach to design, with expertise in architecture, interior design, and

branding
● Strong focus on user experience and functionality
● Modern and minimalist aesthetic

Weaknesses:

● Limited information available about their recent projects and design philosophy
● May not have as extensive a portfolio as some other architecture firms in Bangladesh

MASUD & Associates: MASUD & Associates is a Dhaka-based architecture firm established in
1988. They offer a wide range of architectural and engineering services, with a focus on creating
innovative and sustainable designs. They have completed many high-profile projects in
Bangladesh, including commercial buildings, residential complexes, and educational institutions.
Their designs are known for their attention to detail and use of modern technology.

Strengths:

● Extensive experience in a wide range of architectural and engineering services

● Strong focus on innovation and sustainability
● Use of modern technology in designs

Weaknesses:

● May be perceived as expensive compared to other architecture firms in Bangladesh.

● Limited information available about their recent projects and design philosophy.
5. Potential of new entrants into the industry

The new entrance has the lowest risk as they have high difficulty in entering the markets. The
existing companies benefit from relatively high entry barriers. The established businesses have a
reputation, which is the most important factor in obtaining a new project and the candidates for
the new entrance have no reputation, as most of the architectural candidates after doing
undergrads work for a company to gain startup capital for their own firm. Since they have
worked for other companies, they do not hold any reputation to attract customers and hence,
fledgling businesses may find themselves without work and forced to close.

Second most important factor for any industry is capital for running the firm. A new business
needs funds to hire employees, lease or purchase equipment, and find office space (Biruvoka,
2013). If the owner lacks original capital, the bank will not provide it unless clients are lined up
(Biruvoka, 2013). As a result, the client is unlikely to choose a firm that does not yet exist.
Moreover, there is an exorbitant cost for any construction mistake.

Many tiny startup architectural companies are trapped attempting to break through the
restrictions to enter the market, causing their profitability to suffer (Biruvoka, 2013). The barrier
of entry is an issue for tiny enterprises who are on the cutting edge and only obtain assignments
on occasion and hence it contains the lowest risk as the established competitors are miles ahead.
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