About Aarong

Today, few urban consumers will argue that Aarong is the local Mecca for deshi handicraft.
Aarongs product designs has brought consumer attention back to the products and styles that
are indigenous to Bangladesh, its designers blending the traditional with the contemporary in
a manner that has won instant consumer appeal, starting a revolution in trends that has now
been taken up by countless other boutiques and stores. Aarongs product designs focus on the
diverse types and textures of crafts and patterns that have been passed along from generation
to generation among weavers and artisans in craft hubs around the country.
Aarong also plays the role of protector and promoter of traditional Bangladeshi products and
designs. It houses an extensive design library where remnants of our rich craft heritage, such
as Nakshikantha art and Jamdani patterns, have been widely researched and archived for
present as well as future use.
History
Aarong began as a cause a means to an end for a quiet organization fighting to uphold the
dignity of the marginalized. In 1976, when BRAC- a Bangladeshi NGO dedicated to
alleviating poverty and empowering the poor, first began encouraging sericulture for women
in Manikganj, their only buyers were a few scattered retailers in Dhaka. Weeks, even months
would pass between supply and payment, until BRAC intervened. Aarong was born out of a
need to ensure that the penniless silk farmers of Manikganj were paid for their goods upon
delivery, so that they could feed their families.
Today, Aarongs reach has spread beyond Manikganj to the rest of the country. It has grown
into a thriving international enterprise showcasing ethnic wear to beautiful crafts from silks,
handloom cotton, endi to terracotta, bamboo, jute and much more. From a single shop,
Aarong has grown into one of Bangladeshs biggest retail chains, with eight stores spread
across the major metropolitan areas of the country in Dhaka, Chittagong, Khulna and Shylet
and one in London, UK.
A Fair Trade Organization
Aarong symbolizes fairness in the global village. The organization has identified three basic
constraints for gainful employment of the low income and marginalized people in the rural
areas: lack of working capital, marketing support and opportunity for skills development. In

order to bridge these gaps, Aarong provides a wide range of services to its workers and
suppliers:

Spot payment on product delivery to encourage efficiency and productivity

Reach out to producers in remote areas to ensure fair value for their efforts

Marketing communication and information for artisans

Advances against purchase orders where necessary

Training & Education in skills development to raise product quality and marketability

Product Design and Support in Product Development

Quality Control to increase producer awareness of the importance of quality

These values reflect fair trade principles which have been developed by registered Fair Trade
Organizations. Fair Trade is a trading partnership, based on dialogue, transparency and
respect, that seeks greater equity in international trade. It contributes to sustainable
development by offering better trading conditions to, and securing the rights of, marginalized
producers and workers especially in the South (IFAT).
Importance of strategic Management in a company
Why do we need to lay so much stress on strategic management?
Strategic management becomes important due to the following reasons:
Globalization: The survival for business
First, global considerations impact virtually all strategic decisions! The boundaries of
countries no longer can define the limits of our imaginations. To see and appreciate the world
from the perspective of others has become a matter of survival for businesses. The
underpinnings of strategic management hinge upon managers gaining an understanding of
competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders, and
customers worldwide. The price and quality of a firms products and services must be
competitive on a worldwide basis, not just a local basis.
The distance between the business sectors are becoming less due to the provisions of certain
facilities. Although political boundaries are there but in order to become successful in
business it is essential to laid stress on globalization.

E-Commerce: A business tool

A second theme is that electric commerce (e-commerce) has become a vital strategicmanagement tool. An increasing number of companies are gaining competitive advantage by
using the Internet for direct selling and for communication with suppliers, customers,
creditors, partners, shareholders, clients, and competitors who may be dispersed globally. Ecommerce allows firms to sell products, advertise, purchase supplies, bypass intermediaries,
track inventory, eliminate paperwork, and share information. In total, electronic commerce is
minimizing the expense and cumbersomeness of time, distance and space in doing business,
which yields better customer service, greater efficiency, improved products and higher
profitability.
The Internet and personal computers are changing the way we organize our lives; inhabit our
homes; and relate to and interact with family, friends, neighbors, and even ourselves. The
Internet promotes endless comparison shopping which enables consumers worldwide to band
together to demand discounts. The Internet has transferred power from businesses to
individuals so swiftly that in another decade there may be regulations imposed on groups of
consumers. Politicians may one day debate the need for regulation on consumers rather
than regulation on big business because of the Internets empowerment of individuals.
Buyers used to face big obstacles to getting the best price and service, such as limited time
and data to compare, but now consumers can quickly scan hundreds of vendors offerings. Or
they can go to Web sites such as CompareNet.com that offers detailed information on more
than 100,000 consumer products.
The Internet has changed the very nature and core of buying and selling in nearly all
industries. It has fundamentally changed the economics of business in every single industry
worldwide
Earth environment has become a major strategic issue
A third theme is that the natural environment has become an important strategic issue. With
the demise of communism and the end of the Cold War, perhaps there is now no greater threat
to business and society than the continuous exploitation and decimation of our natural
environment.

The resources are scarce but the wants are unlimited. In order to meet the wants of the world,
the resources should be efficiently utilized. For example, the use of oil resources or energy
resources will make the people to use these resources for a long time.
Strategic management A route to success:
The study of strategic management integrates different topics. Different courses are
integrated due to the study of this course so that businesses become successful in every
sector. It integrates the following:

Marketing

Management

Finance

Research and development

The management and marketing are essential part of a business sectors. They should be
integrated. Just like other sections of the business are integrated under this study. This term is
mostly used by academia but this is also used in media.
BRAC and Aarong
The women Aarong employs are among the countries most disadvantaged. Through Aarong
they have been offered a way out of destitution and degradation where before they had none.
And the benefits that they receive extend well beyond simply the wages they earn for their
products, since every single woman who works in Aarong-owned production facilities is also
a beneficiary of BRACs multifaceted development programmes.
As a support entity of BRAC, a significant portion of Aarongs earnings go directly into
financing the NGOs development programmes in healthcare, education as well as economic
and social development.
Artisans
Holding steadfast to its original mission, Aarong today supports the lives and livelihoods of
nearly sixty five thousand rural artisans and handicraft producers, 85% of them are women.
More than forty thousand of these women work directly for Aarong in its 13 production
centers in Baniachong, Gorpara, Jamalpur, Jessore, Kushtia, Manikganj, Rajbari, Sherpur,

and Pabna, Pollobi, Kurigram, Nilphamary, Jhenaidah and 653 subcentres spread across
Bangladesh.
Twenty five thousand independent cooperative groups and traditional family-based artisans
also market their crafts through Aarong. Potters, Brass Workers, Jewellers, Jute workers,
Basket Weavers, Handloom Weavers, Silk Weavers, Wood Carvers, Leather workers and
various artisans with specialized skills from all over the country come to Aarong for
marketing and support services.
Aarong Production Centre
The Ayesha Abed Foundation (AAF) is an organization that aims to provide avenues for
employment and income generation for underprivileged rural women. It is an enclave for
women, formed to uplift them economically, through their work as producers, and also
socially, through their development into entrepreneurs. The Foundation provides an
appropriate working environment, financial and technical assistance, and training to develop
the womens skills in various crafts. The Foundation was established to commemorate the
memory and work of late Mrs. Ayesha Abed, a co-worker and wife of the Founder and
Chairperson of BRAC. The work that is done in the Foundation is a testament to her
commitment to the issues of education, training and employment opportunities for
disadvantaged women. It was she who in 1976 initiated all the present major activities of
AAF in Manikgonj.
The AAF aims to work with the most underprivileged women in the society. These women
are often the most neglected and are in need of much assistance and support. The AAF plays
the role of a facilitator. The women are placed in an enabling environment, with other women
of similar socio-economic backgrounds. They are trained and then given the opportunity to
generate income. One of the major challenges that these women have to face is that they are
marginalized and they, on their own, have no way of becoming part of the economic system.
This is where the AAF steps in, helping such marginalized women out of their peripheral
existence in society, and giving them the opportunity to become involved in sustainable
enterprise.
The AAF is closely interrelated with other programs, especially BRAC Development
Program (BDP) and Aarong. The women workers of the AAF come from the BDP organized

Village Organizations. Working at the AAF thus gives the women access to other BRAC
programs. All of the AAFs finished products are sold through Aarong, which additionally
provides designs, raw materials and financial support to the AAF. Since AAF supplies
exclusively to Aarong, it is treated as Aarong Production Centres.

Goals

Empowering destitute rural women by providing opportunities for employment and

income generation.

Ensuring commercial success of the enterprise of women producers.

Reviving traditional skills of rural artisans.

Services

Free Medical check-up including free eye treatment, eye-glasses and treatment costs
for severe illnesses

Advance wage payments for employees in need

Day care services

Workers retirement fund

WOMENS PRODUCTS

Traditional

Western

Nightwear

Shawls/Scarves

Shoes

Bags

Fabrics

MENS PRODUCTS

Traditional

Executive Shirts

Maanja

Fotua

Short Kurta

T-shirts

Stoles/Shawls

Sandals

CHILDRENS PRODUCTS

Clothes

Toys

Books

Shoes

TEXTILE PRODUCTS

Bed

Table

Living

Kitchen

Kids

Rugs

Fabrics

JEWELRY PRODUCTS

Gold (see Gold)

Silver

Pearl

Other

LEATHER PRODUCTS

Shoes

Bags/Wallets

Belts

Boxes

Photo Frames

Office

BAMBOO/LEAF PRODUCTS
Living

Boxes

Photo Frames

Dry Decorative

CD Racks

Floor Mats

Dining

Mats

Napkin Holder

Trays

Place Mats

Coasters

TERRACOTTA PRODUCTS
Decorative
Dining

Bowls and Platters

Dining ware

Glasses/Mugs

Hot Plates

Pitchers

Lamps
Plant Accessories

SWOT analysis is a powerful technique for understanding organizations Strength &

Weakness and looking for the Opportunities & Threats it may face. Used in a business
context it helps organization carve a sustainable niche in a market. This analysis is mainly
based on an imaginary situation.
SWOT Analysis of Aarong
Strength
Aarong is a very reputed organization. They are now capturing 68% of total handicraft
market share in Bangladesh. Its a local brand and now exporting their products outside of the
country. Aarong has good reputation for fine quality products. It has a strong management
team who are continuously giving their great effort to make it a successful one. Another
important fact is that, Aarong has almost Zero production damage rate which reduces their
cost. They are innovative and always bring some new product in the market which meets
customer requirement and expectations. The organization is a respected employer that values
its workforce.
Weakness
Aarong has a reputation for new product development and creativity. However, they remain
vulnerable to the possibility that their producer may not be able to produce product timely
due to their inability. The collection channel of the organization is not that much structured so
that they can get the products from the producer on time and it may create problem for them
in future. If any producer is not able to make the product on time due to some personnel
problem then the company will also not be able to deliver their product on time. This is a big
problem and it happens most of the time on delivery. Aarong charges higher price relatively
than their other competitors as a result some times customers lose their interest to by product
from them. Its sales force or sales girls within the outlet are not properly trained up.
Sometimes they make customers disappointed by their attitude and customer doesnt feel
good to buy from there. Sometimes they suffer for financial problem, although its a rare
situation.
Opportunities
Aarong is very good at capturing the advantage of opportunities. It can go for new
distribution channel like it can make some joint venture with some other small Boutique and
sales its products in more places. Through that it can capture more market share in the

handicraft industry in Bangladesh. Aarong can expand its business globally. New market for
handicraft such as Europe and America are beginning to emerge. People are now trendier
about local events & functions like Pahela Falgun, Pahela Baisakh, Victory day,
Independence Day etc and they buy new and special products for these events. Aarong can
make new products to sell in those special occasions. According to the season change, people
are also changing their preference in buying products and considering this scenario Aarong
can produce products on the basis of seasonal variations.
Threats
Aarong doesnt have any big competitors right now. But they have some small competitors
like KayKraft, Anjans, Deshal, Jattra, Khubsurti, Rina Latif, OZ, Rang and some other
Boutiques established at Banani 11, who are taking their 32% customer and increasing in a
slow rate. Aarong always face price wars with their competitors. Its competitors have some
superior products like OGs Panjabi shape, Khubsurtis design of Salwar kamiz Rangs
Sharis color, which is decreasing Aarongs market share as well as sales. But now they are
repositioning their Brand to compete with them.
Competitors Analysis of Aarong
Competitor analysis in marketing is an assessment of the strengths and weaknesses of current
and potential competitors. This analysis provides both an offensive and defensive strategic
context through which to identify opportunities and threats. Competitor profiling coalesces all
of the relevant sources of competitor analysis into one framework in the support of efficient
and effective strategy formulation, implementation, monitoring and adjustment.
Aarong has its own version of the competitive analysis and its function is clear: to line up
your product with other products and show where yours falls short and where yours is
superior. Each industry brings a different spin to this old favorite and user experience design
has its own set of criteria by which to judge competitors.
From the above diagram it is seen that Aarong has competitive advantage over its
competitors on almost every factors. Only few companies have ability to chase some sort of
advantage like Aarong. Such as Rina Latifs product features, qualities and innovativeness,
Kay-Kraft and Anjans supplier, Rangs color and Khubsoortis cost.

Conclusion & Recommendations

Established in 1978, Aarong is a fair trade organization dedicated to bring about positive
changes in the lives of disadvantaged artisans and underprivileged rural women by reviving
and promoting their skills and craft. Reaching out to weavers, potters, brass workers,
jewelers, jute workers, basket weavers, wood carvers, leather workers and more, Aarong
embraces and nurtures a diverse representation of 65,000 artisans, 85% of whom are women.
Today, Aarong has become the foundation upon which independent cooperative groups and
family-based artisans market their craft, in an effort to position the nations handicraft
industry on a world platform of appreciation and acknowledgement.
In these situations I recommend some to go ahead in fashion sector:
1. Government should mostly contribute in this sector.
2. Establish fashion institute.
3. Arrange fashion competition in between the country.
4. Invite foreigner; etc.