Biman Bangladesh Airlines

Introduction of Biman
Biman Bangladesh Airlines is the flag carrier airline of
Bangladesh. Its main hub is at Shahjalal International Airport
in Dhaka, and also operates flights from Shah Amanat
International Airport in Chittagong, earning revenue from the
connecting service to Osmani International Airport in Sylhet.
Biman's operations are assigned the IATA airline code BG and
the ICAO airline code BBC, while its call sings is
BANGLADESH. The carrier provides international passenger
and cargo service to Asia and Europe, as well as major
domestic routes. It has air service agreements with 42
countries, but flies to only 18.

The airline was wholly owned by the Bangladeshi

government through the Bangladesh Biman
Corporation since its inception. In 1977, Biman
was converted into a public sector corporation
which afforded Biman limited autonomy, led by
a government-appointed board of directors. The
authorized share capital was increased to BDT 2
billion in 1987,and Biman was transformed into a
public limited company in 2007.

The SWOT Matrix of Biman

Strength-Opportunity Strategies
Biman Bangladesh Airlines is take advantage of the opportunities
that are adapted to the strengths of a specific area.

The labor passengers have an extreme attraction for the

national flag carrier for its home like hospitality. This is a great
opportunity for Biman to reform their business and give
concern that area and make it their strength.
RMG Sector is mostly dependable on the Biman Bangladesh
Cargo services. Its price is reasonable then others Airlines
cargo services. So it is a good opportunity for Biman
Bangladesh Airlines make it their strength and add more cargo
airlines in their service.

Weaknesses-Opportunities strategies
Biman Bangladesh Airlines is surpassing weaknesses
to take advantage of opportunities.

Expand the geographic area of business and take

the opportunity from Bangli labor passengers have
an extreme attraction for the national flag carrier
for its home like hospitality and make it more
global so that it makes global standard of
International Airlines.
Biman Bangladesh Airlines have experienced man
power; if Biman take that opportunity to recover
the mass management problem then it will help
Biman to make it more global stand airlines.

Strengths-threats strategies
Biman Bangladesh Airlines is identifying ways to reduce the
vulnerability to external threats by means of using their
strengths.

Being the National flag carrier is a big strength for Biman

Bangladesh Airlines. Use this strength Biman can reduce their
cargo charge cost and take the leading position of cargo service
of Bangladesh and beat all other local and international Air cargo
service. If govt. reduces the vat and tax of using cargo service of
Biman Bangladesh Airlines and include vat and tax of others cargo
service then it can happen.
RMG Sector is mostly dependable on the Biman Bangladesh
Cargo services. Its price is reasonable then others Airlines cargo
services. It can also remove the threats of others international
and local Airlines cargo services.

Weaknesses-threats strategies
Biman Bangladesh Airlines is setup a plan to avoid weaknesses to be
susceptible to external threats.

Others Local and International Airlines are doing good business in

Bangladesh. Biman have a miss management and service quality is
under the international standard. Thats weakness and threats for
Biman Bangladesh Airlines. Biman need to concern both of them and
also need to improve both of the section.
Biman could not be able to recruit or deploy the right professional
person for the right place to achieve its desired objectives. So it
would be very tough for Biman to survive in the market. Because they
are not able to complete with others international Airlines those are
really did better business are provide better service in Bangladesh.
Biman Bangladesh Airlines have shortage of Aircraft, so that day by
day they go back in the competition. Biman Bangladesh Airlines need
to think about it and take the right action.

Limitations with SWOT Matrix

There are certain limitations of SWOT Matrix which are not
in control of management. These include-

Price increase;
Inputs/raw materials;
Government legislation;
Economic environment;
Searching a new market for the product which is not having
overseas market due to import restrictions; etc.

Internal limitations may include-

Insufficient research and development facilities;

Faulty products due to poor quality control;
Poor industrial relations;
Lack of skilled and efficient labor; etc

Market Share of
Biman
Market share based on BCG Matrix :
The BCG Matrix has 2 dimensions:
Relative Market share and
Market growth.

Market Share of Airlines

companies in Bangladesh

Relative market
share:
1.4

1.2

0.8

0.6

0.4

0.2

Relative market share

Column1

Star
Jet Airways is takes the Star position in Bangladesh Airlines Companies. Because we
see relative market share of Jet Airways is 1.25 and annual growth rate is 15%. Both
are so high. So that they are take the leading position as per the BCG Matrix. Jet
Airways need to develop the market and also need to increase backward integration.

Question Marks

United Airways Bangladesh is in the question mark position in the airlines business in
Bangladesh. Because we see relative market share of United is 0.67 and annual
growth rate is 20% those clearly indicate that their market share is low but the
annual growth rate is so high. So United need to market penetration. Either needs to
invest heavily, or sell off, or invest nothing and generate any cash that United can.

Cash Cows
Biman Bangladesh Airlines Ltd is in the cash cows position in the
airlines business in Bangladesh. Because we see relative market share
of Biman is .80 and annual growth rate is 2%. Those clearly indicate
that their market share is high but the annual growth rate is so low.
So profit and cash generate is high but low growth rate is problem for
market development. So Biman need to market development and
product development.
Dogs
Emirates are in the dogs position in the airlines business in
Bangladesh. Because we see relative market share of Biman is 0.79
and annual growth rate is 5%. Those clearly indicate that their market
share and annual growth rate both is so low. They need to watch out
for expensive rescue plan or need to shut down their low parts of
the business or need to take liquidation or diversification policy.

Conclusion and
Recommendation
Biman is the national flag carrier, which is fully owned and operated
by the Government of Bangladesh. The corporate body of Biman,
namely Bangladesh Biman Corporation, is doing business as Biman
Bangladesh Airlines under the Ministry of Civil Aviation and
Tourism. Biman Bangladesh Airlines was formed on 4 January 1972
with 2500 skilled and unskilled manpower without any capital and
aircraft. Biman was established as of a corporation on 27 October
1972 with a view to ensuring better operation and development of
air transport service. Over the last decades, Biman faced a number
of problems. Information on mismanagement and corruption in the
organization has trickled out in recent years. Such incidents
include mismanagement in ticket confirmation and reconfirmation,
poor passenger service, corruption in purchasing spare parts,
alleged corruption on aircraft lease, lack of planning with regard
to scheduling, fleet planning, human resource management and so
on.

Recommendation
To help Biman move out from its old-fashioned way of
management, to accommodate the future opportunities
and to avert the current crisis and threats, it is extremely
essential for Biman to undertake the following areas:
Policy Level
Operational Level
Planning
Human Resources
Corruption
Modernization of Biman
Flight Schedule Delay
In-Flight Services