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Exploring Business Ecosystem of Poultry Industry in Bangladesh

Md. Moniruzzaman
DBA (Doctor of Business Administration) Student,
Institute of Business Administration, University of Dhaka

Sheikh Morshed Jahan
Associate Professor
Institute of Business Administration, University of Dhaka

Abstract/ Executive Summary:

Poultry is an emerging industry in Bangladesh. It has taken phenomenal growth in the economy since the early 1990s without making any deliberate feasibility study. Towards the GDP contribution from the agriculture sector has declined over the years but the share of livestock in agriculture has increased. Based on the poultry industry a number of subindustries have developed both in the input sector and output sector working as backward linkage and forward linkage along with many service-providing organizations and/or institutions. All these sub-industries and institutions along with the shelf integrated components of a commercial industry such as customers, competitors, distributors, etc. are working together as live organs of biological species. If all the organs work perfectly individually, it will lead to the complete and perfect living of a specie. Similarly, if all the allied industries, industry-integrated components as well as supporting institutions and/or organizations perform properly, the whole poultry industry is expected to perform effectively and efficiently. The paper attempts to narrate how these sub-industries, service-providing institutes, industry-integrated components are working to run the whole poultry industry under a concept of ecosystem inherited from a British botanist in the 1930s and incorporated in 1993 by the business strategist James Moore.

Keywords: Ecosystem, DOC, Backward linkage, Forward linkage, Hierarchy in poultry generation, Five forces model.

Location: In Bangladesh

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Poultry

Objectives:

The study aims at seeing the interacting, supporting, competing stakeholders playing their respective roles towards the attainment of a basic need (need for nutrition, protein, etc. in the form of meat, eggs, etc. under the broad head of health need) of human kinds. Specifically, the study has addressed the following issues: 1. Suppliers work from both perspectives: backward linkage and forward linkage. 2. Distributors facilitate the flow of both output and input of the industry. 3. Customers and consumers buying products of the industry. 4. Competitors enriching market intensity. 5. Government agencies including academic and training institutions facilitate the industry. 6. Waste management status for environmental sustainability.

Methodology:

2.2 Methodologies The study is based mainly on secondary data. The data sources include published article and/or journal, newspaper, magazines, websites, etc. The data have also come from the report of relevant agencies such as FAO (Food and Agriculture Organization of the United Nations), IDE (International Development Enterprises), government bodies like the Ministry of Fisheries and Livestock and its sub-offices namely the Department of Livestock Services, Bangladesh Livestock Research Institute, etc. The data sources also include consultation with some knowledgeable persons in the poultry sector.

2.3 Scope and Limitations The study aims at the coverage, as much as possible, of the components as the participants involved in the poultry business ecosystem. It reflects as a picture of listing all the bodies, institutes, etc. working either as contributors or competitors of poultry business under the framework of the ecosystem. It may be thought that the respective field and/or discipline concerned with the topic of the article broadly is agriculture or animal/poultry science. The author’s background is in business management and finance. This contradiction may work as a limitation in the study.

2.4 Rationale of the Study So far the literature, information consulted, it was not found the work on the poultry industry as presented under the concept of the business ecosystem. Many works have been done on poultry under value chain system, supply chain system, input-output system, etc. But as a business ecosystem, it has been hard to see the poultry industry. In that sense the study carries significance.

Here it is reiterating the definition of ecosystem. The definition, particularly the definition of the business ecosystem, stands as the network of suppliers, distributors, customers, competitors, government agencies, and so on involved in the delivery of a specific product or service via both competition and cooperation. And all these may be categorized as market actors and non-market actors. In relation to suppliers, the actors may relate to the backward linkage and forward linkage.

Source of Information: IOSR Journal of Agriculture and Veterinary Science (IOSR-JAVS) Volume 10, Issue 2 Ver. II (February. 2017), PP 01-12 e-ISSN: 2319-2380, p-ISSN: 2319-2372.

Article Link (Online Journal): DOI: 10.9790/2380-1002020112

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

As like as any other business, poultry business is also working with the help of suppliers, distributors, customers, competitors, government agencies and/or facilitators. In the paper, an effort has been given to look the sector, poultry industry, from a new perspective termed business ecosystem. The word was first coined by British botanist Arthur Tansley in 1930s to refer to a localized community of living organisms interacting with each other. Later in 1993 the business strategist James Moore imported the concept to the increasingly dynamic and interconnected world of commerce through his article in Harvard Business Review mentioning that Successful businesses are those that evolve rapidly and effectively. He noted that in a business ecosystem, companies co-evolve capabilities around a new innovation: they work cooperatively and competitively to support new products, satisfy customer needs, and eventually incorporate the next round of innovations (deloitte.com 2016). Like species in biological ecosystems, firms interact with one another in complex ways, and the health and performance of each firm is dependent upon the health and performance of the whole (keystonestrategy.com 2016). In the article it has been tried to state how every stakeholder such as supplier, distributor, customer, competitor, the government agency is working, interacting, competing, and supporting individuals as well as jointly or in together to provide a complete product or service for selling to the end-users or consumers to make a profit and sustainable growth. The study has striven to put all the parties involved in the poultry business ecosystem in one place. It may be mentioned that the components working as members of the poultry business ecosystem may be further extended and detailed as more study in the future. At the moment, the components stated as participants and/or members of the same (poultry business ecosystem) may be put down in response to the basic model of the business ecosystem given by Moore (1993).

Knowledge Management: Journal