proton analysis in pptx

7/25/2019 proton analysis in pptx

1/46


2/46

Background of PROTON Holdings Berhad

Perusahaan Otomobil Nasional Berhad(PROTON) was incorporated in Ma !"#$%& to manufacture" assemble andsell motor 'ehicles and related

products" including accessories" spareparts and other components

PROTON produced Malasias *rst car"the Proton +aga" commerciall

launched on ,ul $th #$%- b formerMalasian Prime Minister" Tun .rMahathir Mohamad" who had originallconcei'ed the idea of Malasian cars


3/46

PROTON benchmark is based on TootaMotor /orporation

Toota Motor" the worlds largestautomoti'e manufacturer (o'ertaking 0M

in122%)" designs and manufactures adi'erse product line3up that ranges fromsubcompacts to lu4ur and sports 'ehiclesto +56s" trucks" mini'ans" and buses

Proton posted a wider net loss of RM787&million for the *nancial ear ended March" 12#-compared with RM8712& milliona ear before


4/46

Proton remains a big drag on .RB3Hicoms *nancials which slipped to anet loss of RM#-%1 million for thesi4 months ended +ept &2"

12#-against a net pro*t ofRM122$& million for the sameperiod on the pre'ious ear


5/46

6ision

To become a successful Malasianautomoti'e manufacturer globall


6/46

Mission

#/ustomers1Products or ser'ices

&Markets

8Technolog-/oncern for sur'i'al" growth" and

pro*tabilit

7Philosoph

!+elf3concept

%/oncern for public image

$/oncern for emploees


7/46

Our compan produce high 9ualitautomobile and good after salesser'ice(1)Our /ompan histor is one ofthe remarkable achie'ements of which weare proud(7) of :n our pride lies the 'ital

energ that dri'es us forward and forces usto take on new challenges Not onl ourcustomers but also our business associatesand shareholders need to trust our abilitand rel on us to deli'er on our promise of9ualit(!) ;e continuall stri'e to e4pandour emploees knowledge" skills ande4pertise in order to *nd better solutionsand produce better results($)


8/46


9/46

Board of .irectors


10/46

+enior Management


11/46


12/46

:nternal


13/46

- The compan has attracti'e ma=or productionfacilities in Tan=ung Malim The +tamping sectionboasts the largest stamping e9uipment in +outheast


14/46

$ Proton launched the :ri> in +eptember 12#8 whichrated *'e3stars under the


15/46

:nternal


16/46

7 .eemed to be inferior to its competitors which areToota and Honda in terms of 9ualit and safet/urrentl" there is none Protons cars that ha'eautonomous emergenc braking (


17/46

:nternal Lactor A'aluation (:LA) Matri4

+trengths ;eight

Ratin

g

;eighted

+core

# The compan has strong *nancialbacking from the go'ernment in theforms of R?. and grants

227 8 218

1 Proton has allocated RM 722 million tode'elop new car engines withengineering partners in 5@

228 & 2#1

& Partnership with +u>uki will help shapeProtons future

22! & 21#

8 The 'ehicles co3produced withMitsubishi were percei'ed to be inbetter 9ualit

228 & 2#1

- The compan has attracti'e ma=or

production facilities in Tan=ung Malim

22& & 22$

7 Program :nsurans Proton (P:P) which isan after3sale ser'ice oers more toProtons customers

22& 1 227

! There are man Proton Adar ser'icecentres branches that open ! das aweek

22& 1 227

% Proton A4ora appeal is its four3starratin under the


18/46

:nternal Lactor A'aluation (:LA) Matri4

;eaknesses ;eight

Rating ;eighted+core

# Market share of Proton now (#%th,anuar 12#7) is #!!I compared to1$7I in 12##

227 # 227

1 Proton has a little e4perience inhandling automoti'e industr comparedto its competitors

227 1 2#1

& Malasian lose trust towards Protonwhen its e4ports products ha'e betterspeci*cations

22- 1 2#2

8 :t is hard for Proton to eliminate thestigma of its power window

228 1 22%

- Protons salespeople dont know how toe4plain Protons ke strengths to

potential buers

228 # 228

7 .eemed to be inferior to its competitorsin terms of 9ualit and safet

22! 1 2#8

! :t is reall hard for Proton to o'ercomeits inferior brand name in Malasia

228 1 22%

% The biggest problem with Proton is .r

Mahathirs 'ision of making a mid3rangecar producer

227 # 227


19/46

A4ternal


20/46

A4ternal


21/46

- There is 8#1I of population aged 1-3-8 ears old(male 7"1!!"7$8Ffemale 7"##8") which are the

target market of Proton based on 12#8 records inMalasia

7 Laced with declining domestic sales" Malasias hasset its sight o'erseas such as Agpt" +outh


22/46


23/46

7 +ales ha'e slipped so much in


24/46

A4ternal Lactor A'aluation (ALA) Matri4

Opportunities ;eight

Rating

;eighted+core

# 0o'ernment imposed import taristhus making it 'er e4pensi'e to buforeign imports

22! 8 21%

1 0o'ernment made Proton the oKcialsupplier for almost all go'ernmentpassenger 'ehicles

228 & 2#1

& The Trans Paci*c Partnership


25/46

A4ternal Lactor A'aluation (ALA) Matri4Threats ;eigh

tRating

;eighted+core

# Protons /hairman insisted that theproblem was public perceptionalthough its 9ualit has rise

228 1 22%

1 .epreciating Ringgit has increaseProtons imported parts price thusincrease cars prices

22- 1 2#2

& Protons fa'ouring Bumiputrassuppliers e'en at the e4pense of costs

and 9ualit eKcienc

22! # 22!

8 Malasian go'ernment *nancial help toProton made it has no incenti'e toperform better

227 # 227

- ;idening of income disparit betweenrich and poor has made the rich preferPorsche and the low income

communities prefer Perodua

227 # 227

7 +ales ha'e slipped so much in


26/46

+trategies based on +;OT SO Strategies

# ;ith the TPP< agreement implementation" it opens wider market to Proton

and thus this is the opportunit for Proton to sell its car models result fromits partnership with +u>uki +u>uki from ,apan" is also known for making9ualit products (S3,04)

1 Proton should focus more in making models that resembles Proton :ri> andProton +aga which win awards and among the most aordable The targetmarket of 8#1I population aged 1-3-8 ears old in Malasia will consider

of buing these line of Proton especiall during economic crisis in Malasia(S9,05)

. WO Strategies

# +ince Protons build 9ualit for e4port models is higher and with betterspeci*cations" it is the right time for Proton to sell its cars outside ofMalasia thanks to the weakening of Ringgit (W3,O8)

1 This is the best time for Proton to focus in selling its cars outside MalasiaProton enters =oint 'enture with /hinas 0oldstar Hea' :ndustrial /o Jtdand entered tripartite =oint 'enture agreement with Britains Jotus 0roup:nternational Jimited to produce Jotus3branded passenger 'ehicles in/hina(W7,O9)


27/46

ST Strategies

# Proton should stop fa'ouring BumiputraGs suppliers and *nd other suppliersthat promotes best 9ualit and price to produce cheaper and more 'aluablecars at its attracti'e ma=or production facilities in Tan=ung Malim(S5,T3)

1


28/46

+trategic Recommendations to the /ompan

# Proton should focus more in making models thatresembles Proton :ri> and Proton +aga which win awardsand among the most aordable The target market of8#1I population aged 1-3-8 ears old in Malasia willconsider of buing these line of Proton especiall duringeconomic crisis in Malasia (S9,05)

1 Proton should stop fa'ouring BumiputraGs suppliers and*nd other suppliers that promotes best 9ualit and priceto produce cheaper and more 'aluable cars at itsattracti'e ma=or production facilities in Tan=ung Malim(S5,T3)


29/46


30/46


31/46


32/46


33/46

/riteria to A'aluate the Recommendations

The +trategic Position and


34/46

+P


35/46

Te4tbook Page 17&

Internal Strategic

osition

Mark

s

!"ternal Strategic

osition

Marks

Financial Position (FP) Stability Position (SP)

Return on in'estment & Technologicalchanges

3&

Je'erage & Rate of ination 31Ji9uidit & .emand 'ariabilit 31

;orking capital 8 Price range ofcompeting products

31

/ash ow 1 Barriers to entr into

market

3#

:n'entor turno'er 1 /ompetiti'e pressure 3&

Aarnings per share & Aase of e4it frommarket

37

Price earnings ratio 1 Price elasticit of

demand

31

Risk in'ol'ed in 3&


36/46

3 a4is S 8# (3&!) S 283 a4is S 1!- (31!) S 22-/oordinate S (28"22-)/onclusion S 6ector points in aggressi'e 9uadrant

/ompetiti'e Position

(/P)

Mark

s

:ndustr Position (:P) Mark

s

Market share 38 0rowth potential -

Product 9ualit 3& Pro*t potential &

Product life ccle 38 Linancial stabilit &

/ustomer loalt 38 A4tent le'eraged 8/apacit utili>ation 38 Resource utili>ation &

Technological know3how

38 Aase of entr intomarket

7

/ontrol o'er suppliers

and distributors

3& Producti'it" capacit

utili>ation

-

(/P)


37/46

Porters Li'e Lorces Model

1# $i%alr& '(ong o(petiti%e *ir(s. Proton doesnt ha'e an competiti'e ad'antage o'er

Toota and Honda

. Howe'er" we can see that Proton tries to attractcustomers bU

Producing Proton +aga ( the highest selling numbers fromProton)

Producing Proton A4ora (its four3star rating under the


38/46

+# otential !ntr& o -e. o(petitors. Barriers to entr is high because it is e4pensi'e to gain

technolog and speciali>ed know3how

. The lack of e4perience can bring a compan down becauseautomoti'e industr in'ol'es man complicated issues

that need to be taken care of

. Proton has weak customer loalt and weak strong brandpreferences

3# otential /e%elop(ent o Sustituterouct

. +ubstitute products of Proton are Perodua and Hondamotorccles

4# 2argaining o.er o Suppliers. Proton prefers Bumiputras suppliers although the supplies aremore e4pensi'e and ha'e lower le'el of 9ualit

. There are more suppliers that are competiti'e in price and9ualit


39/46


40/46

The Quantitati'e +trategic Planning Matri4 (Q+PM)

# 1


41/46

# 1

Making models that areaordable and high in9ualit

Lind suppliers thatpromotes best 9ualitand prices

@e Lactors ;eig

ht

uki willhelp shape Protons future

22! 1 2#8 # 22!

8 The 'ehicles co3produced withMitsubishi are in better 9ualit

228 1 22% # 228

- The compan has attracti'ema=or production facilities in

Tan=ung Malim

22& & 22$ # 22&

7 (P:P) which is an aftersalesser'ice oers more customersbene*ts

22& 3 3 3 3

! Man Proton Adar ser'ice

centres open ! das a week allo'er ;est Malasia

22& 3 3 3 3

# 1


42/46

# 1



@e Lactors ;eig

ht


43/46

# 1



@e Lactors ;eig

ht


44/46

# 1



@e Lactors ;eig

ht


45/46

/onclusion

Proton must consider getting a third partto use its plant for a long3term planningfor better utili>ation of plant capacitV

Proton can focus to produce and

impro'ise compact cars rather and sedanbecause of man people will bu thosenowadas to go to work and dri'e in thecit

;ith the current econom" Proton shouldfocus on market their compact and sedancars rather than producing new tpe ofcars such as sport cars


46/46

Lor Proton to keep up to thecompetitors" Proton should beinno'ati'e in terms of technologand car design

Proton should take note and be moreattenti'e towards the cars designaw and loophole

proton analysis in pptx

Documents