Contents

Introduction....................................................................................................................................................2
Strategic Analysis..........................................................................................................................................3
Industry Analysis (Poters Five Forces Analysis for bKash)..........................................................................5
Value Creation and Competitive Advantage.................................................................................................6
Sources of competitive advantage.................................................................................................................6
Challenges in bKash’s Strategic Management Process and How They Were Addressed.............................7
Part -2 Political turmoil in Bangladesh-Hasina's fall, rise of an interim government: Current situation
analysis...........................................................................................................................................................9
Strategic Analysis current situation in Bangladesh.....................................................................................10
Investing in Education.................................................................................................................................13
Collaborative Strategies for Government and Private Sectors in Bangladesh Development......................14
Investment in Infrastructure.........................................................................................................................15
Introduction

Bkash has grown rapidly into Bangladesh's leading mobile financial services provider, changing
the very contours of finances in the country since its founding in 2011. bKash was conceived as a
subsidiary of BRAC Bank to cater to the need for promoting financial inclusion for millions of
underbanked and unbanked people. The approach of strategic management that has helped
bKash become so successful is what we shall look into in this essay. Because of large part of its
strategic decisions regarding effective design of strategy down to thorough market study through
appropriate implementation to continuous reviewing, bKash has been able to maintain its
competitive advantage in the rapidly changing market.

The word 'bKash' sounds like development to people's prosperity and social growth. bKash has
turned into an integral part of millions of lives today. Now people say 'bKash koro (me)'
instead of saying send me money. (Yesmin, 2019) It does not only cater to the daily transaction
needs of people but also empowers them to fulfill their dreams and take the country forward. In
2017 bKash was ranked 23 rd in Fortune’s Top 50 change the world.
Strategic Analysis

Internal and External Analysis (SWOT)

For Bkash their key Strength (internal)
 One of the most successful and market leading MFS (Mobile Financial Services) in
Bangladesh
 Vast network of agents across the country making it accessible to a large portion of the
population
 Introducing innovative features like bill payments, DPS for all sort of people, collecting
charity for different foundations, school fee payment money transfer and mobile banking
etc.
 Backed up by the big wing of Brac Bank

Weakness (Internal)
 Depending on the mobile network for some services
 Still limited to particular region
 Security concern or data breach
 Market is getting more competitive continuously with new player entering the market
Opportunities (External)
 Bkash could offer international transaction service in more extensive way
 Getting the license of digital banking will be a huge opportunity for baksh which will
make them to have the first mover advantage
 Expansion to new services
 This demand keeps increasing due to increasing penetration of smartphones and internet
access in Bangladesh

Threats (External)

 Intensifying competition with Nagad and other MFS are launching. •

 Cybersecurity dangers, fraud and rumors.
 A bunch of people target villages or underprivileged people, steal their OTP, and gain
access to the bkash.
 Prepayment and scams.
 Economic Downturns

Source: Rumor Scanner

Industry Analysis (Poters Five Forces Analysis for bKash)

1.Threat of new Entrants: According to the financial institution regulation from 1994, the
minimum paid up capital or equity for NBFI is One Billion Tk. (Bank, 2023) and new proposed
criteria allow no more than 15% ownership by a single business (bank or non-bank), implying
that a mobile banking operation will require approximately seven separate equity partners. So,
there’s a high barrier to entry for other players. Government Regulations like licensing and
requirements and network would be needed.

2. Bargaining Power of Buyer – High/Moderate: The sheer size of bkash’s user gives them
some leverage but customers can easily switch to different MFS like nagad. Rocket, ucash and
more for less fees. Also, price sensitivity is high.

3. Bargaining Power of Suppliers – Low: Bkash cooperated with variety of mobile networks
and tech companies. This helped them to lowering the bargaining strength of suppliers.

4. Threat of Substitute: Traditional banking, Microfinance Institutions, nagad, Ucash, rocket

act as a substitute for bKash and dispite these alternatives, bkash’s interface is much user
friendly and widespread acceptance in urban ares make it difficult for substitutes to match the
level like bkash.

5. Competitive Rivalry- High: Price Wars: Competitors are fighting over transaction costs and
launching loyalty schemes to entice customers away from bKash. And the competition is getting
unhealthy by the day.
Value Creation and Competitive Advantage

By understanding the dynamic relationship in between value chain, pricing, demand and costs
bkash manages their value chain. They focus on partnership, innovation, efficient operations that
creates the value to the customers end and mass spreading of services helping them to reach the
economic of scale and reduce unit costs like (agent cost) leading them to sustainable revenues
and competitive adventage in the mobile financial services market.

1. Network of agents: bKash vast agent network ensures convenient access points for cash
in and cash out transactions and contributing to better user experiences. Reliable and
easily accessible digital platform and trust which increases customer demand

2. Transaction Processing: bKash processes million of transaction on daily basis and the
reliability of these operations is critical to customer as there’s minimal downtime and
smooth operations.
3. Innovation in Services, Procurement, Technological development

Sources of competitive advantage

bKash focuses on differentiation of

services and best at it. The journey for bKash wasn’t easy as they were the first mover so they
had to build a customer base specially targeting the rural population. As time passed, bKash
expanded its target audience. To enlarge the net of financial inclusion, they started targeting
urban middle-class, students, and many different segments. When they started focusing on the
new audiences, they added additional products and services, in the mobile app. It has given them
strong market position over competitors such as SureCash, and UCash and DBL they may not
easily pursue a differentiation strategy. Just because Nagad has reduced charges doesn’t mean
bKash can reduce its fees on a whim. For that Bkash had to take data driven decisions.

Nagad could reduce its prices even more in the near future, thanks to its strategic advantages,
such as its cost-effective partnership with the postal department. However, despite having the
ability to lower costs, Nagad cannot quickly surpass the sustainable competitive advantages that
bKash enjoys, such as its extensive agent network and continuous innovations, which are harder
to replicate.

Challenges in bKash’s Strategic Management Process and How They Were

Addressed

Throughout the journey bkash has faced several challeneges in strategic management process
however the company overcame the problems and maintaining its market leadership.
1. Security Concern: As a digital platform, bkash faces high security risks, including fraud
and stealing the confidential data breaches.

Response: bkash Implemented robust security for encryption and biometric authentication

and encouraged consumers through ads.

2.

Regulatory Challenges: At the very beginning stage bkash faced several regulatory problems
like anti money laundering and know your customer regulations. The rapid growth of this
sector drew more increasing security from Bangladesh Bank leading to more rules and
monitoring of financial transactions
Response: bkash took proactive approach for AML and KYC process. They invented fraud
detection technologies and implemented strict KYC protocol. They not only met regulatory
requirements but also positioned themselves a trusted and secure platform. (History of
bKash, n.d.)
3. High Cash-out charge: bKash took data driven approach to this issue. Instead of lowering the
cost they focused on promoting cashless transactions and introduced cashback offers,
partnership with various merchants with QR payments and mitigated the customer
dissatisfaction regarding the high cash out charge.

4. Technological Scalability and Security: With millions of transaction everyday bkash

needed to ensure its infrastructure so bKash partnered with Ali Baba’s Ant Financial a
global leader in fintech to upgrade their technology. It helped them to build cloud-based
system that can handle large transaction volumes efficiently.

Source: https://futurestartup.com/2018/04/27/alibabas-ant-financial-invests-in-bkash-
alibabas-ambition-and-bkashs-upside/
Part -2
Political turmoil in Bangladesh-Hasina's fall, rise of an interim government
and Current situation analysis

A student-led revolution in Bangladesh overthrew an increasingly authoritarian Prime Minister

Sheikh Hasina on August 5. Thousands of students died valiantly. The improbable fall of her
government after 15 years in power opens up possibilities for a new era in Bangladesh. During
the Hasina regime Corruption and inequality stunted Bangladesh’s economic potential. Labor

protections were poor. State institutions were co-opted and politicized. Bangladesh’s political
space became increasingly undemocratic, marked by disputed elections and credible allegations
of harassment, enforced disappearances, torture and extrajudicial killings against the ruling
party’s opponents. Muhammad Yunus, a Nobel laureate and microcredit pioneer, will lead
Bangladesh's revolution as chairman of the new interim administration, tasked with maintaining
the country's good development and social trends while also putting its democracy on track. This
is the hope for the new generation and the new beginnings of new Bangladesh.

Strategic Analysis current situation in Bangladesh

Strengths:

1. New political Landscape: After the dictatorship era it has created a new political
landscape and while the interim government present an opportunity for democratic
reforms and better governance.

2. Youth Leadership: The younger generation is stepping into leadership roles pushing for
transparency, accountability and democratic reform.

3. Freedom of Speech: With the political change there’s a greater space for freedom of
speech and freedom of media as well. The restrictions on the press and social media
begun to loosen allowing for open dialogue and criticism, which fostering a more
inclusive and democratic society.

Increasing Remittances: Remittances sent by Bangladeshis residing abroad increased roughly

39 percent year on year to $2.2 billion in August, which is helping foreign exchange reserves to
some extent.
Weakness:
Source: The daily star
1. Economic Downturn for the past
corruption: The economy during
Hasina’s regime government was full of
corruption, including bank looting and
money laundering. And even after that
we will have the bear the loss for their
wrong doings and the downturn still
continuing like a chain reaction.

2. Investor Confidence: According to the

DSE's 1st October index, the index lost
approx. 130 points in one day. Investors
are losing confidence which is making
the market even worse.

Source: DSE

3. Inadequate Infrastructure: Inadequate and unplanned infrastructure continues to be a

major problem to Bangladesh's growth, including challenges with transportation, energy,
and water supply. These unplanned infrastructure building causes less international
investment and slow economic progress.
 4. Political Instability: After the Hasina regime new political parties are trying to unstable
the situation once again.

Opportunity

1. Environmental sustainability is a key

area where Bangladesh holds
remarkable potential, especially in Jute
industry. By tapping into these
resources, Bangladesh can meet its
requirements. Jute bag, Leather bag
can be substitute for polythene. Eg.gov
Banning Polythene from 3rd. so the
demand for jute product will increase.
2. Stock Markets
3. International Support for reforms
4. Diversifying the economy
Source:
5. Reducing corruption https://www.facebook.com/PolyJute.asia

Threats

1. Remnants of the Hasina Regime

2. Political Factionalism
3. Global Economy Downturn
4. Social Unrest
By Integrating these strengths and weakness, opportunities and threats into strategic planning
new Bangladesh can take the full advantage of the opportunities.

Investing in Education

The new NCTB textbooks from 1 to 10 are completely unforeseen modifications, and neither
students nor teachers know how to study them. It is justified to encourage changes, but planning
is also necessary. At this age, students are developing their fundamental skills. If you look at the
class 9-10 book, you will notice the primary chapters that create the basis for science, yet those
chapters are completely neglected.

Here are some examples of how the evaluation

takes happen.
1. Students frequently receive the questions
and answers before to the exam on youtube
and write them on their papers.
4. sit for a 4–5-hour exam
3. snaps the picture on the phone that they
received before the exam.
4. sits together and gives the exam copying
from the phone.
5. As the teachers are not trained, they don't
know what to do.

Students are the youth and future leaders, and if education is not adequately transformed, no
amount of investment would benefit Bangladesh. If a student in grades 9-10 does not receive a
proper evaluation, how are they going to use the knowledge accordingly? Let’s if the text book
doesn’t even teach you the formula of newton’s second formula how are going to do the math’s
about force, fraction and all? The country currently lacks sufficient educational infrastructure,
and it is affecting the quality of both primary and tertiary education. Investing in education can
help deduce income inequality by ensuring equal access to learning opportunities for all. An
educated population can lead to a more skilled workforce, driving economic growth, innovation,
and overall social development. By prioritizing STEM (Science, Technology, Engineering, and
Mathematics) education, Bangladesh can better prepare its youth to compete in the global
economy, particularly in recent technology-driven industries.
Investment doesn't always have to involve money. It can also mean placing the right people in
the right positions and adapting to meet their needs. This is the kind of investment the
government can make by encouraging universities to conduct more research, strengthening their
foundations, and establishing strong research and development (R&D) teams. Currently, none of
our country's universities are ranked in the top 10 worldwide. The underlying issue is our
tendency to rely on conventional thinking and lack of proper guidance.

Collaborative Strategies for Government and Private Sectors in Bangladesh

Development

1. Governmental and Private Environmental and Sustainability Initiatives:

Implementation: Giving incentives to those firms that are willing to invest in renewable
sources of energy and sustainable methods. Joint ventures between the government and
private organizations must be developed to construct solar panels, jute cultivation and
many sustainable methods.
Issues/Challenges
High upfront costs: Many renewable projects are highly capital-intensive upfront, hence
discouraging private investment therein.
Overcome the challenge by offering an incentive of low-interest loans, grants, and
purchase agreements that guarantee green energy.

For Instance, the ban on polythene is highly commendable, considering the growth in
government awareness of environmental issues. In this regard, there is a high prospect for
investment in substitute products with ecological viability, such as "PolyJute." This product has
the catchy slogan "From nature to nature" and is certified by the prestigious Bangladesh Council
of Scientific and Industrial Research (BCSIR). PolyJute carry bags are not just items of utility
but an ecological pledge towards nature. (PolyJute, 2024)
These bags are designed to decompose quickly and
dissolve into the soil, serving as a potential testament
to how human ingenuity may be allowed to
complement nature.

This, therefore, brings forth the extent to which the

government can take center stage in ensuring a
greener future through support for such companies as
PolyJute.

Investment in Infrastructure

During Hasina's tenure, many megaprojects were undertaken, as megaprojects are a major source
of corruption. Many useless megaprojects were undertaken, such as the Karnaphuli Tunnel. The
Karnaphuli Tunnel, which cost more than BDT 105 billion, has greatly underperformed
expectations. According to the Bangladesh Bridge Authority's study, since the tunnel opened for
traffic on October 29, 2023, an average of only 4,082 cars had utilized it every day till August
18. It falls significantly below the estimated 17,000 vehicles per day in its first year. This has
made it hard to finance daily operations expenses, let alone start making profits. The factor of
Chinese loan issued for constructing the tunnel makes it worse. (Hoque, 2024) Bangladesh
Bridge Authority has commented that the installments have already begun as a grace period has
already expired. Experts dealing with infrastructure said that the building cost of the Karnaphuli
Tunnel was 1.5 times higher compared to the Padma Bridge per km. In addition, the operating
cost of the tunnel is three and half times higher than that of the Padma Bridge. According to
them, the Karnaphuli River tunnel is a mega waste of money in the name of a mega project in
Bangladesh (Rahman, 2024)

Therefore, instead of wasting money on expensive megaprojects, the government is

recommended to orient inquiring and addressing customer needs and market studies as an
alternative. and the project should be clear cut, and there should be pressure on the interns to
complete the project by embedding project management. (Islam, 2023)

Governments should encourage partnership with the private sector to seal the infrastructural gap
of the nation. PPPs are very important in the construction and development of many industries
such as transport – including roads, railways and ports, energy – both renewable and non-
renewable, interaction and supply of water.

Conclusion

In Conclusion, Bangladesh stands at a very crucial moment of transformation, with huge

potential for development and growth. The country’s young generation, huge population
combined with strategic development in technology, infrastructure, education and governance
will help the country to go extra mile. Fighting against corruption, political instability, and
environmental dangers will make Bangladesh come out stronger for that private sector and
Government will have to work together and shape nations journey toward development.
References

Bank, B. (2023). Regulation, Performance and Supervision of NBFIs.

History of bKash. (n.d.). Retrieved from bKash: https://www.bkash.com/en/about

Hoque, S. (2024). Karnaphuli Tunnel and Padma Bridge construction. The Daily Star.

Islam, J. (2023). Delays in 6 mega projects cause Tk1.12 lakh crore in economic loss. The Business
Standard.

PolyJute. (2024). Retrieved from https://www.facebook.com/photo/?

fbid=122129492474334469&set=pb.61560034078588.-2207520000

Rahman, S. (2024). Mega misery in mega project. Retrieved from Boinik Bartha:
https://bonikbarta.net/home/news_description/395823/Mega-misery-in-mega-project

Yesmin, S. (2019). bKash: Revolutionizing Mobile Financial Services in Bangladesh?: A Collection of Case
Studies. Retrieved from ResearchGate:
https://www.researchgate.net/publication/327447731_bKash_Revolutionizing_Mobile_Financia
l_Services_in_Bangladesh_A_Collection_of_Case_Studies