swot analysis - proton hsien.docx

7/31/2019 SWOT Analysis - Proton HSIEN.docx

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SWOT Analysis

Strengths

Strong government support Strong brand recognition Competitively priced products

Weaknesses

Reputation of poor product performanceand functionality

Lack of expertise Over rely on the government Lack of international operations

Opportunities

Government support R & D development Strategic alliance and joint ventures

Threats

Competitors local & internationalbrands

Price war between competitors Global financial crisis Fast changing and advanced engineering

technology

Strengths

PROTONs strength depends on its competitively priced products. The company has strong

brand recognition where PROTON has become the national car brand owing to the long foothold

in the industry. Thereby, Malaysian has strong perspective towards its national brand especially

the patriotism that has familiar and loyalty to the brand. In addition, PROTON also has a strong

support and back-up from the government which would aid in extensive nationwide distribution

network in order to enhance brand awareness.


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Weaknesses

Besides, PROTON also has contains numerous of weaknesses which the company must generateseveral approaches in order to consolidate the image and build up confidence among government.

Lack of expertise which means that the company is producing limited products due to their

inability of the company such as their employees is lack of knowledge to innovate new car

models as well as lack of original product that they often produce product based on other

international leading brand which probably will prompt them to mess up their product lines.

Too rely on government support lead PROTON doesnt have arbitrary decision making. For

instance, PROTON once has losing its market leaderships since in 2006 due to their incapable.

PROTON would lose out to major players in the industry that contribute to serious influences on

the different of supply chain as well as the restraint of new barring entrance could lead the

company unable to be innovative and faces the challenges.

Due to the incapable of the company, the company would confront some issues of human

resource such as unable to retain and cultivate talent. Thus, this would lead PROTON to cost

greater of fabrication as well as the inexperience of employees will also generate low quality of

product. Therefore, it could jeopardize PROTONs reputation which might impact consumers

perspectives towards products. Besides, lacking of international operations will occurred to

PROTON owing to the intense competition in the global market as well as the quality issues of

the products.


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Opportunities

The government support could lead PROTON to obtain better opportunity and favorable whichpromote greater development. For instance, government would support PROTON as its partner

where employ PROTON as their vehicle in order to boost the sales of cars as well as create

awareness. Moreover, government support would aid the company in R & D development such

as the improvement of technological developments which might lead PROTON to enter new

markets and contribute to enlarge the business scales. Besides, the strategic alliances and joint

venture will also regarded as an opportunity where enable PROTON to create brand recognition

and accumulate experiences in order to produce better works such as generate more innovative

products.

Threats

Global financial crisis will impact the economy of Malaysia owing to the policy of AFTA where

lead PROTON has to confront the increases of competition between local and national markets

and the issues of lack of resources and expertise, technology backwardness as well as high labor

cost. Thereby, foreign investors could export their products as very low import tariffs due to the

AFTA policy and thus giving the rise to competitive prices whereby not conducive to PROTON

owing to the consumers could have variety of option to select the products at very affordable

prices.

Furthermore, the changing and maturing of the technology is the another factors that may impact

the companys development since the increase of competitors who entering the market would

brings about price wars in the industry. Therefore, this will lead PROTON to confront the issues

of lack of technology and quality issues.


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STRATEGIC OPTIONS

External Opportunities (O)

1. Government support2. R & D development3. Strategic alliance & joint

venture

External Threat (T)

1. Competitorslocal &international brands

2. Price war betweencompetitors

3. Global financial crisis4. Fast changing and

advanced engineering

technology

Internal Strengths (S)

1. Strong government support2. Strong brand recognition3. Competitively priced products

SO

S1, S2, O1, O2

= New product development

where the strengths could aid

in enhancing the PROTONs

R & D development.

ST

S1, S3, T1, T4

= Market penetration where

create differentiate product

as well as set a competitive

prices in order to reach

audiences effectively.Internal Weaknesses (W)

1. Reputation of poor productperformance and functionality

2. Lack of expertise3. Over rely on the government4. Lack of international operations

WO

W1, W4, O2, O3

= Strategic alliance where

could aid PROTON in

improve the reputation of

product as well as to obtain

competitive advantage.

WT

W2, W3, W4, T2, T4

= Internal development

where improve employees

skills in order to enhance

companys capability.

swot analysis - proton hsien.docx

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