Value Chain of Poultry Hatcheries in Bangladesh : A Comparative Study of SMES versus Large Players by Porter's Value Chain Model

The contribution of animal farming subsector to GDP of Bangladesh at constant price is 1.66 percent, of which more than fifty percent is contributed by poultry industry. Poultry hatchery is the backbone of this industry. This research has tried to explore the value chain dynamics and challenges of integration faced by SMEs vis-à-vis larger poultry hatcheries. The research framework is designed along Porter’s value chain model. Primary data were collected from20 chief executives and senior management professionals from hatcheries of varied sizes that supply more than 60% of the demand for chicks.The research has found that larger hatcheriesenjoy significant competitive advantage over their SME counterparts due to extensive value chain presence, use of modern technologies, methods and processes, stronger brand image, proper marketing activities, effective customer services, better economies of scale and scope, continuous technological development, proper people management and stronger infrastructural support