Analysis And Discussion.docx

ANALYSIS AND DISCUSSION.

The Perusahaan Otomobil Kedua Sendirian Berhad is also known as Perodua, is Malaysia's second largest automobile manufacturer after Proton. Perodua mainly produces mini cars and super minis and does not have models in the same market segments as Proton. Starting of the analysis, Perodua is the low cost leader in Asia. With the help of Perodua own industry, Perodua has successfully created a low cost automotive mentality among their workforce. The workforce is very flexible and high committed and very critical in making Perodua the lowest cost automotive Asia. The following part analysis of Perodua, which is people claims Perodua is over dependence on the domestic market and a weak brand image in the international market. Perodua can no longer depend on government support for their survival and growth. In order to recover this crisis, Perodua need to lower their dependence on foreign partner by speeding up their localization programmers. This is essential to reduce cost and be competitive when trade barriers fall. Perodua model range is too small and also needs to get it listed as soon as possible. Perodua entering with small car which some of the product is low quality compare to others. The next part of analysis is the opportunity of Perodua. Perodua is expecting a record year in sales, anticipate investing RM1Bil in the next few years on newer models and a plant upgrade to compete in a more liberalized automotive business in Malaysia. Managing director Aminar Rashid Salleh said the company was re-evaluating to expend the current strategy of having just three models at any one time and was seeking to lower cost and have more fuelefficient engines to deal with competition from other smaller cars in the future. Besides, Perodua

also plan to expand operations in china for growth prospects. The company has rolled out as one of the largest Malaysian car making company. With the evolving trends of internationalization, the company plans to expand its operations in china. As the company diversifies its network by analyzing the current culture environment of china based on demographic trends, language, culture, ethics, morality and other cultural differences in between Malaysia and china. The last part of the analysis is the competition of Perodua. The economic recession will be a big threat for Perodua. As we know, 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 down turn actually come suddenly without notice. Substitutes also will be a big threat for Perodua. Malaysia has to national car. The first automotive is proton and secondly Perodua. The substitutes will high in term of car model (some of car model look similar), and car spare part.

RACE Analysis of Perodua Cars with USP, Competition, STP (Segmentation, Targeting, Positioning) - Marketing Analysis Perodua Cars

Parent Company

Category

Sector

Perusahaan Otomobil Kedua Sendirian Berhad

Supermini & Kei cars

Automobile

Tagline/ Slogan

USP

Building Cars People First

One of the top two car manufacturers in Malaysia STP

Segment

Target Group

Positioning

Mini and super mini cars

Middle and upper middle class

Producer of supermini cars RACE Analysis

Research

Application

1. Established in 1992 & total employee strength of 10000 employees 2. Malaysia’s second largest automobile manufacturer after Proton Cars 3. Among largest small car manufacturers in Asia 4. Indirectly linked to Toyota which gives an image of Japanese association

1.They should look at newer markets as their home markets are getting saturated 2.Increasing fuel prices will drive people to prefer smaller cars, thus Perodua will benefit from the change 3.It can look at newer markets which are favourable for small cars

1.Competitors like Proton Cars have higher investment capabilities thus can overtake in terms of R&D investments 2. Low cost substitutes being marketed by Chinese manufacturers 3. The macro-economic situations are leading to lower sales for all automobile manufacturers

Competition

Evaluation

1.Proton Cars 2.Honda 3.Nissan Motors

1.They are notorious for low safety standards due to their design 2.They are excessively dependent on Toyota for upgrades 3.A local Malaysian player thus currently limited reach