INTRODUCTION

This study delves into a comparative analysis of corporate-level and business-level

strategies employed by two prominent steel manufacturing companies in Bangladesh:
BSRM Steel Mills Limited (BSRM) and Kabir Steel Re-Rolling Mills (KSRM). Both
companies have significantly contributed to the nation's construction and infrastructure
development.

The objective of this analysis is to examine the strategic choices made by BSRM and
KSRM at both the corporate and business levels. By scrutinizing their strategic
approaches, we aim to understand the factors influencing their decisions, the impact of
these strategies on their overall performance, and the lessons that can be drawn for other
businesses operating in similar industries.

This analysis will primarily focus on:

• Corporate-level strategies: This will involve exploring BSRM and KSRM's

overarching strategic directions, including their growth strategies, diversification
efforts, and internationalization initiatives.
• Business-level strategies: This will entail examining the specific strategies
adopted by the two companies within their core business of steel manufacturing,
such as their competitive advantage strategies, product differentiation, and cost
leadership approaches.
 LITERATURE REVIEW
Corporate Level Strategy
Strategies that detail actions to gain a competitive advantage through the selection and
management of a mix of businesses competing in several industries or product markets

Developing and implementing multi-business strategies may be necessary for effective

use of excess resources, capabilities and core competencies that have value across
several businesses.

To enhance strategic competitiveness & earn above average returns.

Primary approach to corporate level strategy:

• Diversification
• Firms diversify when they have excess resources, capabilities and core
competencies that have multiple uses

Levels of diversification:

Firms vary according to

• Relatedness

Connections between and among business units

• Levels of diversification

Low, Medium & High

Low levels of diversification

• Single

More than 95% of revenue comes from dominant business

• Dominant

Between 70% & 95 % of sales in a single category eg Cadbury-Schweppes.

Tend to be vertically integrated.

Moderate Levels of Diversification

➢ Related-constrained diversification
➢ Less than 70% of revenue from dominant business and
➢ Businesses share product, technological and distribution linkages
 ➢ Related-linked diversification
➢ Less than 70% of revenue comes from dominant business
➢ Only limited links between businesses

High Levels of Diversification

• Unrelated diversification
o Less than 70% of revenue from dominant business
o No common links between businesses

Sharing Activities:

➢ Sharing activities often lowers costs or raises differentiation sharing activities can
lower costs if it achieves economies of scale boosts efficiency of utilization
➢ Means more rapid movement through learning curve sharing activities can
enhance potential for or reduce the cost of differentiation
➢ Sharing activities must involve activities that are crucial to competitive advantage

Transferring Core Competencies:

➢ Exploits interrelationships among divisions

➢ Starts with value chain analysis:
➢ Identify ability to transfer skills or expertise among similar value chains
➢ Exploit ability to share activities
➢ E.g. Two firms can share the same sales force, logistics network or distribution
channels

Efficient Internal Capital Market Allocation:

Firms pursuing this strategy frequently diversify by acquisition:

➢ Acquire sound, attractive companies

➢ Acquire units that are autonomous
➢ Acquire corporation to supply needed capital
➢ Portfolio managers transfer resources from units that generate cash to those with
high growth potential and substantial cash needs
➢ Add professional management and control to sub-units
➢ Sub-unit managers’ compensation is based on unit results

Restructuring:

➢ Seek out undeveloped, sick or threatened organizations or industries

➢ Parent company (acquirer) intervenes and frequently:
o Changes sub-unit management team
o Shifts strategy
o Infuses firm with new technology
o Enhances discipline by changing control systems
 o Divests part of firm
o Makes additional acquisitions to achieve critical mass
➢ Unit will often be sold after one-time changes are made, since parents no longer
add value to ongoing operations

Merger:

Two firms agree to integrate operations on a relatively equal basis because they have
resources and capabilities that create stronger competitive advantage.

Acquisition:

A transaction where one firm buys another firm with the intent of more effectively using a
core competency by making the acquired firm a subsidiary within its portfolio of
businesses.

Takeover:

An acquisition where the target firm did not solicit the bid.

Factors Influencing Corporate-Level Strategy Choices:

The best corporate-level strategy for a company depends on several factors:

• Industry environment: The competitive landscape, market growth rate, and

technological changes.
• Internal resources and capabilities: The company's strengths and weaknesses in
terms of finance, technology, and human capital.
• Organizational structure and culture: The company's organizational design and
the values and beliefs that guide its employees.
• Corporate governance: The roles and responsibilities of the board of directors
and management.

Business Level Strategy

An organization's core competencies should be focused on satisfying customer needs or
preferences to achieve above-average returns. This is done through Business-level
strategies. Business level strategies detail actions taken to provide value to customers
and gain a competitive advantage by exploiting core competencies in specific, individual
product or service markets. Business-level strategy is concerned with a firm's position in
an industry, relative to competitors and to the five forces of competition.

Customers are the foundation or essence of an organization's business level strategies.

Who will be served? What needs must be met? And how those needs will be satisfied?
are determined by the senior management.

There are four generic strategies that are used to help organizations establish a
competitive advantage over industry rivals. Firms may also choose to compete across a
broad market or a focused market. We also briefly discuss a fifth business level strategy
called an integrated strategy.

1. Cost Leadership:

Organizations compete for a wide customer based on price. Price is based on internal
efficiency to have a margin that will sustain above average returns and cost to the
customer so that customers will purchase your product/service. Works well when
product/service is standardized, can have generic goods that are acceptable to many
customers, and can offer the lowest price. Continuous efforts to lower costs relative to
competitors is necessary in order to successfully be a cost leader.

Porter's 5 Forces Model

• Rivalry: Competitors are likely to avoid a price war, since the low cost firm will
continue to earn profits after competitors compete away their profits (Airlines).
• Customers: Powerful customers that force firms to produce goods/service at
lower profits may exit the market rather than earn below average profits leaving
the low cost organization in a monopoly positions. Buyers then loose much of their
buying power.
• Suppliers: Cost leaders are able to absorb greater price increases before it must
raise price to customers.
• Entrants: Low cost leaders create barriers to market entry through its continuous
focus on efficiency and reducing costs.
• Substitutes: Low cost leaders are more likely to lower costs to entice customers
to stay with their product, invest to develop substitutes, purchase patents.

2. Differentiation:

Value is provided to customers through unique features and characteristics of an

organization's products rather than by the lowest price. This is done through high quality,
features, high customer service, rapid product innovation, advanced technological
features, image management, etc. (Some companies that follow this strategy: Rolex,
Intel, Ralph Lauren)

Create Value by:

• Lowering Buyers' Costs: Higher quality means less breakdowns, quicker response
to problems.
• Raising Buyers' Performance: Buyer may improve performance, have higher level
of enjoyment.
• Sustainability: Creating barriers by perceptions of uniqueness and reputation,
creating high switching costs through differentiation and uniqueness.

3. Focused Low Cost:

Organizations not only compete on price, but also select a small segment of the market
to provide goods and services to. For example a company that sells only to the U.S.
government.

4. Focused Differentiation:

Organizations not only compete based on differentiation, but also select a small segment
of the market to provide goods and services.

Focused Strategies - Strategies that seek to serve the needs of a particular customer
segment (e.g., federal government).

Companies that use focused strategies may be able serve the smaller segment (e.g.
business travelers) better than competitors who have a wider base of customers. This is
especially true when special needs make it difficult for industry-wide competitors to
serve the needs of this group of customers. By serving a segment that was previously
poorly segmented an organization has unique capability to serve niche.

5. Using an Integrated Low-Cost/Differentiation Strategy:

This new strategy may become more popular as global competition increases. Firms that
use this strategy may see improvement in their ability to:

• Adaptability to environmental changes

• Learn new skills and technologies
 COMPANY PROFILE
BSRM Steel Mills Limited (BSRM)
Bangladesh Steel Re-Rolling Mills Ltd. (BSRM), a unit of well-known H. AKBERALI Group
of Industries, having more than 60 years’ experience exclusively in steel production, is
fully automatic steel re-rolling mill in Bangladesh. The mill was imported from U.K. and
commissioned at the seaport of Chittagong. Over the years, BSRM steel products have
been chosen solely for building major National landmarks and infrastructures. To name
a few, the Padma Bridge, Rooppur Nuclear Power Plant, Hatirjheel Project, Zillur Rahman
Flyover, Mayor Hanif Flyover and Shah Amanat Bridge were built with BSRM

Some of their key product categories:

1. Reinforcing Steel (Rebar):

• BSRM Xtra: A high-quality rebar known for its strength and durability.
• BSRM Xtra Plus: A premium rebar offering superior performance and reliability.
• BSRM Xtra DWR: A special type of rebar designed for use in earthquake-prone
areas.

2. Structural Steel:

BSRM Xtrong: A range of high-strength structural steel products, including angles,

channels, and beams, used in construction of buildings, bridges, and other infrastructure
projects.

3. Wire Products:

BSRM Wires: A variety of wire products, including galvanized wire, ACSR core wire, LRPC,
MIG wire, and welding electrodes.

4. Fast Build Services:

BSRM Fast Build Services: Offers a range of services, including bending, cutting, and
securing steel products to meet specific customer requirements. These products are
widely used in various construction projects, from residential buildings to large-scale
infrastructure developments. BSRM's commitment to quality, innovation, and customer
satisfaction has made them a trusted name in the Bangladeshi steel industry.
 Kabir Steel Re-rolling mills (KSRM)
KSRM (Kabir Steel Re-Rolling Mills) is one of the leading steel manufacturers in
Bangladesh, renowned for producing high-quality steel products that are essential for the
country’s infrastructure and construction sectors. With decades of expertise and a
commitment to excellence, KSRM has established itself as a trusted name in the steel
industry. KSRM is part of the Kabir Group of Industries, a conglomerate with diverse
business interests. Over the years, it has grown into a market leader, contributing
significantly to the nation’s industrialization. Specializes in manufacturing TMT (Thermo-
Mechanically Treated) bars, steel billets, and other rebar products known for their
strength, durability, and reliability. Utilizes state-of-the-art machinery and innovative
techniques to ensure high precision and consistent quality in all its products.

KSRM is Committed to environmentally friendly practices, including efficient resource

utilization and minimizing industrial waste. The vision of KSRM is to be a global leader in
the steel industry by delivering unmatched quality and innovation. The mission is to
contribute to the economic growth of Bangladesh by supporting the construction and
infrastructure sectors with superior steel products.

Key products of KSRM:

• BSRM B500DWR: This is a premium rebar grade known for its superior strength
and durability, especially suitable for use in earthquake-prone areas.
• BSRM B500CWR: Another high-quality rebar grade, widely used in various
construction projects.

These rebars are produced using state-of-the-art POMINI technology and are available in
a range of sizes to cater to different construction needs.
 ANALYSIS OF CORPORATE OF LEVEL STRATEGY
BSRM
Diversification:

Besides focusing on deepening their presence within the steel industry, BSRM has
recently pursued diversification by venturing into the wire manufacturing industry. They
established BSRM Wires in Mirsharai, Chattogram, to produce various wire products like
galvanized wire, ACSR core wire, LRPC, Mig Wire, and Welding Electrodes. Beyond wires
and steel, BSRM doesn't have any other significant product lines. Their primary focus
remains on the steel industry, including various steel products like rebar, beams, and
other construction materials.

Horizontal Integration:

BSRM hasn't engaged in horizontal integration by acquiring or merging with other steel
companies in Bangladesh. Their primary focus has been on organic growth and backward
vertical integration.

It is worth mentioning that they have explored potential horizontal expansion through
international ventures, such as the proposed joint venture in Kenya to produce long steel
products. While this plan hasn't materialized yet, it demonstrates BSRM's interest in
exploring opportunities for horizontal growth in the future.

Vertical Integration:

To aim to reduce their dependence on external suppliers and ensure a stable supply of
raw materials, BSRM has engaged in vertical integration by establishing BSRM Iron & Steel
Co. Ltd. (BISCO). BISCO is a subsidiary of BSRM that produces billets, a key raw material
used in steel production. By acquiring a majority stake in BISCO, BSRM has strengthened
its control over the supply chain and reduced its reliance on external suppliers. This
backward integration helps BSRM ensure a stable supply of raw materials and potentially
improve its cost efficiency.

Strategic Alliance:

BSRM's decision to import certain steel products from China and other countries
suggests potential partnerships or collaborations with international suppliers. But BSRM
doesn't have formal strategic alliances with other companies in the traditional sense,
they do have partnerships and collaborations:

1. Community Partnerships:

BSRM has partnered with organizations like YPSA for community development initiatives,
focusing on empowering marginalized communities.
 2. Supplier Partnerships:

BSRM works with various suppliers to procure raw materials and components for their
production processes. These partnerships are essential for maintaining a stable supply
chain.

3. Government Collaborations:

BSRM engages with government agencies to ensure compliance with regulations and to
seek support for their business operations.

BSRM's primary focus remains on its core business of steel production and related
activities.

Overall Corporate Vision and Mission:

Based on the information provided, BSRM's vision and mission appear to be centered
around:

Vision:

To become a leading steel producer in Bangladesh and the region.

Mission:

• To cater to the growing demand for steel products in the construction and
infrastructure sectors.
• To enhance product quality and expand the product portfolio.
• To optimize operational efficiency and reduce costs.
• To strengthen the supply chain and reduce reliance on external suppliers.
• To prioritize sustainability and environmental responsibility.
 KSRM
KSRM's corporate-level strategy appears to be focused on growth and expansion within
the steel industry. KSRM's mission is to ensure the availability of consistently high-quality
steel products meeting global standards, advancing through innovation and world-class
research for sustainable growth without compromising community support. The
company’s vision is to grow into the global benchmark in the production of high-quality
steel by utilizing innovation and state-of-the-art technology, with a focus on
environmental sustainability and energy efficiency.

Here are some key aspects of their strategy:

Expansion of Production Capacity:

KSRM has strategically expanded its production capacity to meet increasing market
demands. Its state-of-the-art facilities produce approximately 800,000 tonnes of steel
annually, making it one of the largest steel producers in Bangladesh. This capacity
supports the country's infrastructure development needs, including large-scale projects
like bridges, highways, and industrial buildings.

Vertical Integration:

KSRM has implemented vertical integration to maintain control over its supply chain:

• Shipbreaking: KSRM has established a ship breaking yard called Khajwa Ship
Breaking Limited. These facilities provide raw materials for steel production.
• Billet Manufacturing: The company is continuing to increase the production of raw
material billet between rods from six lakh to eight lakh tonnes.
• Power Generation: KSRM has gas based 56 MW Captive power plant. This is in
Barakumira, Sitakunda, Chattogram. The power plant was established in 2020 to
support energy-intensive operations.
• Kabir Oxygen Limited: Kabir Oxygen produces both Oxygen and Nitrogen. The
majority of the Oxygen produced (80%) is utilized internally by the company.

Furthermore, the company has expanded into sister concerns like Royal Cement Limited,
shipping, Royal PP Bags Limited, diversifying its portfolio while maintaining synergies
within the group.

Product Innovation and Quality Control:

KSRM emphasizes premium-grade steel products, such as 60-grade rebar, which are
critical for high-rise constructions. Its production processes are ISO-certified, and it
incorporates advanced technologies to ensure durability and strength in its offerings.

Market Expansion:
While primarily focused on the domestic market, KSRM explores opportunities in
international markets to further expand their reach and revenue streams.

Sustainability Practices:

As part of its corporate strategy, KSRM actively pursues sustainability goals. KSRM
integrates eco-friendly practices into its corporate strategy:

• Energy Efficiency: KSRM Uses modern production technologies called avant-

garde European POMINI technology across its automated rolling mills, that
consume less energy.
• Low Carbon Fiber Footprint: KSRM established a state-of-the-art Air Pollution
Control (APC) System, preventing any smoke laden with dust from escaping during
production. KSRM's APC System is a commitment to cleaner and healthier steel
production, aligning with global sustainability efforts.
• Water Filtration System: Reduces environmental impact by treating and recycling
water used in the production process.

Customer-Centric Approach:

To maintain competitive advantage, KSRM offers customized services, ensuring product

specifications meet diverse customer needs. This client-focused strategy fosters strong
relationships with construction firms, real estate developers, and government
infrastructure projects.

Focus on National Contribution:

KSRM supports the nation’s development by supplying steel for large-scale infrastructure
projects like bridges and flyovers. It aligns with government priorities and positions itself
as a strategic partner in national development. This strategy strengthens its position as a
trusted brand.
 ANALYSIS OF BUSINESS LEVEL STRATEGY
BSRM
1. Competitive Positioning

BSRM Steel Limited has achieved a strong competitive position in the steel industry
through a combination of cost leadership and differentiation:

Cost Leadership:

BSRM leverages economies of scale by producing steel in bulk, optimizing its supply
chain, and utilizing state-of-the-art technologies to reduce production costs. This allows
the company to price its products competitively while maintaining profitability.

Differentiation:

The company sets itself apart by providing high-quality steel products that meet
international standards. Its advanced production techniques, along with strong
branding, create a unique value proposition for customers, ensuring loyalty in a
competitive market.

2. Target Markets and Customer Segments

BSRM serves a broad range of customers, focusing on the following segments:

Construction Industry:

The primary customers include large-scale real estate developers, industrial contractors,
and government infrastructure projects.BSRM strengthened its focus on domestic
infrastructure projects, including landmark developments like the Padma Bridge and
Rooppur Nuclear Plant.

Small and Medium Enterprises (SMEs):

The company caters to small contractors and individual builders through an extensive
distribution network.

Export Markets:

Although BSRM primarily focuses on the domestic market, it has been expanding its
presence in international markets, especially in South Asia.

3. Marketing and Operational Strategies

Marketing Strategies:

BSRM uses a combination of traditional and digital marketing to build brand awareness.
Key strategies include:
 • Showcasing projects that use BSRM steel.
• Engaging in Corporate Social Responsibility (CSR) initiatives to enhance its brand
image.
• Leveraging endorsements from industry leaders to emphasize product reliability.

Operational Strategies:

• Adopting lean manufacturing processes to minimize waste and improve

efficiency.
• Maintaining a robust supply chain to ensure timely delivery of raw materials and
finished products.
• Incorporating advanced technologies such as automation and AI to enhance
production processes.

4. Product Development and Innovation

BSRM continually invests in research and development (R&D) to stay ahead in the
market. Key areas include:

New Product Offerings:

The company introduces innovative products, such as earthquake-resistant steel and

high-strength rebar, to cater to evolving customer needs.

Technological Advancements:

By adopting cutting-edge technologies in production, BSRM ensures consistent quality

and adherence to global standards.

Sustainability Innovations:

BSRM adopted environmentally friendly practices, such as recycling slag waste into eco-
friendly construction materials and implementing advanced water treatment and air
pollution control systems to achieve zero emissions. These efforts earned recognition,
including the "SDG Brand Champion Award 2023".

Solar energy initiatives were introduced to partial power production facilities.

After analyzing BSRM Steel Limited's business-level strategy, it can be found that it
around delivering superior value through a balance of cost efficiency and revolve
differentiation. Its focus on understanding customer needs, maintaining operational
excellence, and fostering innovation enables it to remain a leader in the steel industry.
 KSRM
Analyzing the business unit strategies of KSRM (Kabir Steel Re-Rolling Mills), a prominent
steel manufacturer in Bangladesh, involves understanding its market positioning,
competitive advantages, operational efficiencies, and long-term objectives. Below is a
breakdown of potential strategic considerations for KSRM:

1.Market Positioning and Target Segments

Core Market Focus:

KSRM primarily targets the construction sector in Bangladesh, including high-rise

buildings, bridges, and other infrastructure projects.

Customer Segments:

The company caters to both individual contractors and large-scale developers,

positioning its products as high-quality, durable, and reliable.

Brand Reputation:

KSRM has built a strong brand identity as a leading steel manufacturer with a
commitment to quality and innovation.

2.Product Differentiation

Quality Assurance:

KSRM emphasizes producing high-strength steel products that comply with international
standards (e.g., ASTM, ISO).

Product Range:

The company offers a diverse product range, including TMT bars, MS angles, MS plates,
and billets, to meet varied customer needs.

Innovation:

Investments in advanced manufacturing technologies allow KSRM to innovate and adapt

its product line to changing market demands.

3.Operational Efficiency

Vertically Integrated Supply Chain:

KSRM manages its raw material procurement, production, and distribution processes,
ensuring cost efficiency and consistent quality.
Modern Manufacturing Facilities:

The company utilizes state-of-the-art machinery and automated systems to enhance

productivity and minimize waste.

Sustainability:

By adopting eco-friendly practices and focusing on recycling scrap materials, KSRM

aligns its operations with global sustainability trends.

4.Competitive Strategies

Cost Leadership:

Through efficient production and economies of scale, KSRM aims to maintain

competitive pricing while preserving profit margins.

Customer Relationship Management:

The company focuses on building long-term relationships with distributors, contractors,

and developers to secure repeat business.

After-Sales Support:

Providing technical assistance and customer support adds value to its offerings and
fosters customer loyalty.

5.Expansion and Diversification

Geographical Reach:

KSRM continues to strengthen its distribution network across Bangladesh, ensuring

product availability even in remote regions.

Export Potential:

The company explores opportunities to expand its footprint in international markets,

especially in South Asia.

Diversification:

Beyond steel manufacturing, KSRM may consider diversifying into related industries or
value-added services, such as construction consultancy.
6.Technological Advancements

Digital Transformation:

Adoption of ERP systems and data analytics helps streamline operations and improve
decision-making.

Research and Development:

KSRM invests in R&D to enhance product quality and develop innovative solutions
tailored to local and global market demands.

7.Sustainability and Corporate Social Responsibility (CSR)

Green Manufacturing:

KSRM emphasizes reducing its carbon footprint through energy-efficient processes and
waste recycling.

CSR Initiatives:

The company supports community development projects, such as education,

healthcare, and infrastructure improvements, aligning with its corporate values.

8.Challenges and Risk Mitigation

Raw Material Volatility:

Dependence on imported raw materials poses a challenge due to fluctuating global

prices. Strategic sourcing and local alternatives can mitigate this risk.

Market Competition:

With several competitors in the steel industry, KSRM continuously invests in branding and
innovation to maintain its market share.

Economic Factors:

Inflation, currency depreciation, and regulatory changes could impact profitability,

requiring adaptive strategies.
 COMPARISON OF CORPORATE LEVEL STRATEGY BETWEEN
BSRM & KSRM
1. Diversification

• BSRM:
BSRM has primarily focused on its core steel business but has ventured into the
wire manufacturing industry with the establishment of BSRM Wires. The company
produces various wire products like galvanized wire and welding electrodes. While
diversification into the wire industry exists, BSRM doesn’t have other significant
product lines beyond steel and wire manufacturing. Their focus remains
predominantly on the steel sector.

• KSRM:
KSRM has diversified its operations more broadly. Besides steel production, the
company has expanded into cement production (Royal Cement Limited),
shipping, and packaging (Royal PP Bags Limited). These ventures complement
their steel business and contribute to a broader portfolio. This diversification
strategy, while focused on industries that support steel production, allows KSRM
to have multiple revenue streams.

2. Horizontal Integration

• BSRM:
BSRM has not pursued horizontal integration through mergers or acquisitions of
other steel companies in Bangladesh. Its strategy has been more focused on
organic growth. However, it has shown interest in international expansion, such
as a proposed joint venture in Kenya, which could represent a future horizontal
expansion into new markets.

• KSRM:
KSRM has similarly focused on organic growth but has strategically expanded its
production capacity. They are one of the largest steel producers in Bangladesh,
indicating horizontal growth through scaling up their operations rather than
acquiring other companies. Their focus is on increasing their market share and
improving production capabilities.

3. Vertical Integration

• BSRM:
BSRM has pursued vertical integration by acquiring a majority stake in BSRM Iron
& Steel Co. Ltd. (BISCO), which produces billets, a critical raw material for steel
production. This backward integration helps BSRM control its supply chain,
reduce reliance on external suppliers, and improve cost efficiency.
 • KSRM:
KSRM has also strongly pursued vertical integration, but in a more diversified
manner. They own shipbreaking yards (Khajwa Ship Breaking Ltd.) for raw
materials, billet manufacturing capacity, and a captive power plant to support
energy-intensive operations. Additionally, KSRM owns Kabir Oxygen Ltd.,
producing oxygen and nitrogen primarily for internal use. This strategy allows
KSRM to control several key components of its supply chain, ensuring raw material
supply, energy needs, and cost control.

4. Strategic Alliances

• BSRM:
BSRM does not have formal strategic alliances but engages in partnerships and
collaborations with suppliers, government agencies, and community
organizations. This includes supplier partnerships for raw materials,
collaborations with government bodies for regulatory compliance, and
community development partnerships like with YPSA.

• KSRM:
KSRM, while not emphasizing formal strategic alliances, has a strong focus on
building relationships with key stakeholders. Their commitment to sustainability
and product quality helps them establish strategic relationships with clients,
particularly in large infrastructure projects. This customer-centric approach
builds trust and positions KSRM as a key partner for construction firms, real estate
developers, and government entities.

5. Overall Vision and Mission

• BSRM:
Vision: BSRM aims to be a leading steel producer in Bangladesh and the region.
Mission: Their mission includes catering to the growing demand in the
construction sector, enhancing product quality, optimizing operational efficiency,
and reducing reliance on external suppliers. Sustainability and environmental
responsibility are core aspects of their mission, reflecting a focus on long-term
growth.

• KSRM:
Vision: KSRM aims to grow into the global benchmark in the production of high-
quality steel by utilizing innovation and state-of-the-art technology, with a focus
on environmental sustainability and energy efficiency.
Mission: KSRM’s mission includes meeting the steel demands for large
infrastructure projects, offering high-quality steel products (like 60-grade rebar for
high-rise constructions), pursuing sustainability, and focusing on market
 expansion. They emphasize eco-friendly practices and customer-centric services
to maintain a competitive edge.

While both companies are deeply embedded in the steel industry, KSRM appears to have
a more diversified approach across industries and more extensive vertical integration
than BSRM.
 COMPARISON OF BUSINESS LEVEL STRATEGY BETWEEN
BSRM & KSRM
Aspect BSRM KSRM
High-quality steel Strong emphasis on
Core Focus products, including premium-grade steel for
earthquake-resistant steel. mega infrastructure
projects.
Efficient manufacturing Focus on economies of
Cost Leadership processes, advanced scale and localized supply
technology, and cost chain efficiency to reduce
reduction. costs.
Earthquake-resistant and Specialized products like
Differentiation high-grade steel; strong high-strength steel bars;
brand reputation in quality heavy marketing for
assurance. durability.
Urban and rural Primarily mega
Target Market construction sectors; infrastructure projects and
infrastructure projects in premium urban
Bangladesh and abroad. construction.
Wide range of steel Focused on premium steel
Product Portfolio products (e.g., bars, billets, bars and reinforcement
rods) to meet diverse products for high-end
market needs. construction needs.
Heavy investments in Advanced manufacturing
Technology modern technology for facilities with a focus on
efficient production and automation and precision
innovation. engineering.
Promotes environmentally Advocates for green
Sustainability Practice friendly practices like manufacturing and
recycling scrap materials. reduced environmental
footprint.
Positioned as a leader in Emphasized as a trusted
Brand Positioning quality and reliability in the supplier for large-scale and
steel market. demanding construction
projects.
Offers technical support Provides tailored solutions
Customer Service and strong customer for mega projects and
engagement programs. reliable post-sales
support.
Extensive distribution Focuses on high-value
Market Penetration network, reaching both projects and urban
urban and rural markets. markets with select
distribution partnerships.
Constant innovation in Development of durable
product design, steel products optimized
Innovation particularly safety-focused for long-term infrastructure
products like earthquake- projects.
resistant steel.
Balancing cost leadership Managing competition in
Challenges with maintaining product premium markets while
quality and sustainability. sustaining quality and
competitive pricing.
 CONCLUSION
In summary, we can conclude that KSRM has a broader diversification strategy, including
cement, packaging, and shipping, whereas BSRM has a more focused diversification,
mostly in wire manufacturing. Both companies have pursued organic growth without
significant horizontal integration, although BSRM has explored international expansion.
Both companies have pursued vertical integration, with BSRM focusing on raw material
supply (BISCO), and KSRM taking a more diversified approach, including shipbreaking,
power generation, and oxygen production. Neither company has formal strategic
alliances, but both engage in strategic partnerships with suppliers, customers, and the
government to ensure stable operations. BSRM’s vision focuses on regional leadership in
steel production, with a mission centered around growth, sustainability, and efficiency.
KSRM emphasizes supporting national infrastructure projects, customer satisfaction,
and sustainability. In business level strategy, BSRM focuses more on diversification and
catering to a broader market base with a mix of cost leadership and differentiation. KSRM
places more emphasis on premium, high-strength steel for large-scale projects,
leveraging differentiation in quality and durability.
 REFERENCES

1. https://ksrm.com.bd
2. https://bsrm.com
3. https://www.studocu.com/row/document/bangladesh-university-of-
professionals/strategic-management/term-paper-this-is-an-assignment-on-
strategic-management/63262995
4. https://www.thedailystar.net/business/news/four-steelmakers-control-53-
the-market-study-3613811
5. https://www.tbsnews.net/supplement/bangladesh-eyes-doubling-steel-
production-2030-679418
6. https://chatgpt.com/
7. https://ksrm.com.bd/ksrm-power-
plant/#:~:text=KSRM%20has%20gas%20based%2056%20MW%20Captive%2
0power,Engines%20each%20having%20a%20capacity%20of%209.36%20MV
8. https://today.thefinancialexpress.com.bd/last-page/ksrm-joins-steel-
investment-boom-amid-fears-for-over-crowding