Competitive Environment For Proton Company

The first Malaysia national car is PROTON. The main competitor in Malaysia in term of automobile companies and affordable car is PERODUA. The competitive environment as we can see approximately in Malaysia is affordable car where all native of a Malaysia can buy it and the car maintenances also cheap. You see, the porter five are been applied for more obviously because the competitive environment not only about the competitor. It can be about the economic decline, natural misfortune and etc.

Porter five

1. Competitive Rivalry

2. Threat of New Entrant

3. Threat of Substitutes 

4. Buyer Power

5. Supplier Power

Competitive Rivalry 

In Malaysia, after PERODUA that is main competitor for proton , there is not too much competitor around affordable car. The low cost car as mentioned above is not have a lot of competitor in generally. The affordable car in Malaysia has a more potential to sell compared to luxury car that only specific people are used it.

A family will have more than 1 car. Definitely, the first car they will choose the cheaper car and affordable car.

New Entrant has a high threat

  Recession the economic will be a big threat for PROTON. We know that, all big company will facing over budget or does not achieve the sale for that year. The government will lose a lot of money cause of policy and shareholders. By the way, economic downward tendency actually comes suddenly without notice.

High threat from Substitutes

Malaysia has tow national car. First : PROTON , second : PERODUA. The substitutes will high in term of car model and some of them looks similar.

Buyer Power

Buyer will choose the cheap car for the first car and buyer also actually are fragmented. Therefore , it will not has much influence. 

Supplier Power

Nowadays compared to the many years ago ,this is not giving a big threat for PROTON.

http://www.oppapers.com/essays/Competitive-Environment-For-Proton-Company/365979?topic

International Market for Proton

“The objectives of the Malaysian National Car: 

• Rationalize the local automotive industry

• Spearhead the development of a local component industry

and to enhance greater use of local components. 

• Encourage the upgrading of technology, engineering knowledge and technical skills of the country’s workforce. 

• Assist and develop Bumiputera (the indigenous people of Malaysia) participation in the automotive industry. “[1]

http://www.oppapers.com/essays/Proton-International-Market/148903

Swot Analysis For Proton Holding

As a Government connected Company, Proton is protected in term of financial capabilities. Furthermore, as the first national automotive manufacturer they have more than 20 years of experience and backed by the more than 1000 suppliers and highly concentrated distributed the service and distribution way out. As financial year ender 31 March 2006 denoted, the net value of asset is more than RM 5 billion while the liabilities is only about RM 2 billion.

Proton had begun on a project with the Lotus.

Group to improve a hybrid vehicle proficient of running on both gasoline and electricity and others special projects that are concentrating on technology development. This program direct to raise high the technology to a level that is on par with their global rivals by creating an alternative vehicle for the future which provides customers with less fuel consumption, decrease emanation and uncompromising performance.

Get Help With Your Essay

If you need assistance with writing your essay, our professional essay writing service is here to help!
Find out more about our Essay Writing Service

The increase numbers of substantial order by the different overseas markets were far in surplus of the number shipped, the difference was due to restrictions in the supply chain. There is no uncertain that demand for Proton cars in the overseas markets exists. As such, looking forward into financial year 2007, the company predicts a meaningful improvement in the number of Proton cars sold overseas.

http://www.oppapers.com/essays/Swot-Analysis-For-Proton-Holding/429480

The weaknesses of Proton Holdings Berhad

PROTON was incorporated on 7 May 1983 with three primary national policy objectives: To spearhead the development of component manufacturing industries, to acquire and upgrade technology and industrial skills within the automobile manufacturing industry and to strengthen the international competitiveness of Malaysia’s industrial capability.

The failure by Proton to find a foreign partner is a warning signal that it is no longer a competitive and economically viable entity with current market situation and questionable management decisions that causes Proton to lose money when other finds profits.

Therefore, Proton Holdings Berhad needs to consider a foreign partnership to further improve on its quality and service to the buyers.

Khazanah Malaysia, the Malaysian government’s investment arm, holding about 42.74% of Proton, followed by the Employees Provident Fund with 15.4 per cent and Petronas with 7.9 per cent.

Price/Earnings: Not Meaningful

Price/Sales: 0.3x (2/5 points)

Price/Book: 0.4x (2/5 points)

Price/Cash Flow: Not Meaningful

TEV/Sales: 0.1x (3/5 points)

A merger has its advantages – economies of scale, market domination, etc. but an enlarged national car company could create many duplications i.e. product, dealers network, vendors etc. Proton is finding it tough to trim its network of suppliers and distributors.

National car company Proton Holdings Berhad once dominated with a majority share in the market. It has since not only lost that majority, its sales in unit terms have even dropped below that of unlisted Perusahaan Otomobil Kedua Berhad (Perodua).

UMW Holdings Berhad is the biggest in the sector, with a market value of RM5.9 billion, compared with Proton’s RM1 billion. Although, UMW has an important oil and gas division, it derives most of its profits from its Toyota division, the most profitable in the industry.

In contrast, Proton reported a loss of RM75 million in the October – December quarter last year. It is exceeded in market value by Oriental Holdings Berhad (RM2.3 billion) and DRB-HICOM Berhad (RM1.4 billion), both of which are diversified motor-based groups.

In my conclusion, Proton should continue to seek strategic alliances and further expand its market globally due to the termination of talks with Volkswagen AG in the year of 2007.

In my point of view, Proton needs to basically integrate more into the global supply chain and the global market. Basically, we have not attained the kind of export penetration projected when the company was established.

Global motor vehicle industry was undergoing a consolidation and Proton should be part of this trend. We need to be part of the bigger family in a way that works for us.

Till date, we did not have any clarification regarding The Public Accounts Committee (PAC) submit its report on Proton Holdings Berhad’s sale of Italian motorbike manufacturer, MV Augusta to GEVI s.p.a at one euro to Parliament because Proton had acquired a 57.75 percent stake in MV Augusta in December 2004 for 70 million euro (RM367.6 million).

http://wiki.answers.com/Q/What_is_the_weaknesses_of_proton_holdings_berhad

Swot Analysis Of Proton Holding Berhad

Originally conceived by Malaysia’s Prime Minister of the day, Dato Seri Mahathir Mohamad, PROTON Bhd was incorporated on 7th May 1983 with the aim of building a national car. Two years later, On 9th July 1985 the Proton Saga was officially launched. It was Malaysia’s first domestically produced car and is still sold in Malaysia and other countries today. The original factory plant, covering 99,400 sq m, is situated at Shah Alam near Kuala Lumpur in central Malaysia. The site also houses an engine and transmission factory, a castings plant, R&D centre and a semi-high speed test track. The factory is currently producing 240,000 units per annum.

Opened in 2005, a state of the art assembly plant was constructed at Tanjung Malim, 60 miles north of Kuala Lumpur. This area has been named Proton City and consists of 500 hectare site containing the factory, plant, housing, a university and other commercial buildings to accommodate component suppliers. This plant produces the three newest model ranges, the GEN-2, Savvy and Satria Neo. Proton’s total workplace in Malaysia totals just over 6,000 personnel working in all areas of vehicle design, R&D, production and manufacturing. With a solid base built up since 1983, Malaysia’s car manufacturing industry is progressing rapidly. 

Proton tool a major step forward in upgrading its engineering capabilities when it acquired a share in Lotus are closely involved in Proton’s new model development, with a team of engineers permenantly based at the design and development centre in Malaysia. The Company has come a long way since 1983, PROTON was publicly listed on the Kuala Lumpur stock Exchange in 1992, and today, Proton cars are exported to mor than 50 countries worldwide. Key export markets include Australia, Singappore, the far East and the UK, where during 2009 it celebrates 20 years in the market place. 

Since 1989, Proton Cars (UK) Ltd have been offering the British public reliable value for money vehicles.

http://www.oppapers.com/essays/Swot-Analysis-Of-Proton-Holding-Berhad/378043?topic

Swot Analysis On Proton

The Benefits of Training for SCI Patients

The benefits of cardiovascular exercise and training can be easily noted by comparing trained SCI athletes with untrained SCI patients. It must be noted (and will be further discussed later) that training benefits are somewhat contingent upon the level of spinal cord injury. A study by Bhambhani, Holland, Eriksson, and Steadward (1994 p. 260) investigated physiological responses during wheelchair racing comparing quadriplegics to paraplegics. They found the peak values of V02, heart rate, and VE which were obtained during incremental velocity wheelchair exercises to be significantly higher in paraplegics than quadriplegics. No significant differences were found between these groups for 02 pulse (which is the oxygen utilization per heart beat). These findings are consistent with other researchers who investigated the same responses for these two groups (Eriksson, Lofstom, and Ekblom,1988 p. 145).

This is a citation. If you are using books, or internet, you must put in your essay:-

(author’s name, year, and page no) 

If you are using business magazine, you must put in your essay:-

(author, business magazine’s name, year, and page no)

The previously mentioned study by Eriksson et al (1988) also investigated the aerobic power during a maximal exercise by comparing trained versus untrained quad and paraplegics. They found peak V02 differences to be as high as a 38% increase for trained athietes versus nontrained. They noted that a well trained quadriplegic individual is physiologically comparable to an untrained paraplegic with a low level injury, therefore, physical training can largely reduce the differences between quadriplegics and paraplegics. Also by comparing the trained paraplegic athletes to non trained able bodied persons, the able bodied persons achieved only a slightly higher V02 peak, again pointing out the benefits of training.

http://www.oppapers.com/essays/Swot-Analysis-On-Proton/455442?topic

Proton Berhad’s Swot Analysis If Expends Its Operation To India

A SWOT Analysis of Proton Holding Berhad will be carried out to to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in this project.

The report will be separated into 2 parts. Firstly this report will discuss about the profile of Proton Holdings Berhad and nature of its business in order to analyse the internal factors.

In the second part, SEPT Analysis will be carried out to analyse the related external factors in India in sectors of Social, Economy, Politic and Technology.

At the end, the result of SWOT analysis will be presented accompanied by recommendations to expend its operation internationally into India.

Proton Holdings Berhad

• Proton is a Malaysian national automobile manufacturer.

• Proton Holdings Berhad is the holding company which is listed on the Bursa Malaysia.

• 14,706 Proton cars were exported in 2006 to other countries/

• Proton exports

cars to the United Kingdom, South Africa, and Australia and the company is aggressively marketing its cars in several other countries including the Middle East.

• Proton cars has also been exporting a small volume of cars to other countries like:

1. Singapore

2. Brunei

3. Indonesia

4. Nepal

5. Sri Lanka

6. Pakistan

7. Bangladesh

8. Taiwan

9. Cyprus 

10. Mauritius

• Proton has never succeeded to export their car to the US, because the cars required many changes to meet American safety standards in order to secure coverage from auto insurers and satisfy legislative requirements.

• In some countries,   Proton cars suffer somewhat from a poor public image because of their designs.

Strengths 

• Proton has over 20 years of experience in Automotive industry

• Many cars are exported by Proton to many countries every years, proves that proton has the experience of exporting cars.

http://www.oppapers.com/essays/Proton-Berhad-s-Swot-Analysis-If-Expends/218124?topic