Strategic and Change Management

Group Member

Haidar MokhtarWu HaotaoSema RamStrategic and Change ManagementCompany BackgroundParkson opened its first store at Sungei Wang Plaza in 1987It was opened by The Lion GroupParkson has more than 35 outlets in MalaysiaIt has more than 30 branded department storesNow Parkson operates in Malaysia, China, Vietnam, Indonesia, Myanmar and Sri LankaParkson headquarters is in Klang, Selangor, Malaysia

Porters Five ForcesThe Threat of New Entrants

The competitors of Parkson can be classified into two types, direct and indirectDirect as Isetan and Indirect as TescoIt is hard for competitors to venture into this market because the barrier of entry is very highThe barrier of entry is high because these businesses are already well established in the market place

Porters Five ForcesRivalry among Competitors

The competition in the market place is considered to be strong because these businesses target the same group of peoplePromotions are made by Parkson to lure the customersParkson elite card where shopping can be rewardingPorters Five ForcesThe Threat of Substitute

The consumer might not choose to purchase from Parkson and look for another marketParkson are giving a place for vendors to work their businessOther competitors might offer a lower price for the vendors to attract them to leave ParksonPorters Five ForcesThe Bargaining Power of Buyers

The bargaining power of buyers in Parkson are low because all of the prices are fixed and non-negotiableFor the vendors, it is believed that the better the brand name, the better the bargaining power of buyersWhen huge companies venture into Parkson, it will raise the value of Parkson in the eyes of the peoplePorters Five ForcesThe Bargaining Power of Suppliers

The bargaining power of suppliers are for the vendors because the goods of Parkson come from themThe better the brand name, the better bargaining power for suppliersNot all vendors are allowed to simply venture into Parkson. Parkson will study about the company first SWOT AnalysisStrengths

Good reputation for its customers and suppliersCustomers and vendors both are customers of ParksonQuite easy to reach Parkson, such as facebook, Parkson official website

SWOT AnalysisWeaknesses

It targets only those customers who are rich specifically high income ladies, and most of the people believed Parkson just a place for high income ladies instead of everyoneShould focus on marketing strategy and expanding consumer to fit into the marketplace and competeSWOT AnalysisOpportunities

Should be proactive approach towards talking and managing business risk.Must be better communication of message within the organization.Should let employees know about the real issuesSWOT AnalysisThreats

The shift in consumer taste and its hard for companies to cater to every single one of the customers needDuring economy downturn, the purchasing power of customers might fall.STRATEGIC COMPETITIVE ADVANTAGE AND MAJOR WEAKNESS.Profit maximisation is the aim of the owners and shareholders. Company will try to make the most profit as possible.Parkson needs to focus on its sales growth in order to achieve and maximise their revenues and profits The change in outlook reflects that Parkson Retail Group's weak performance will continue for some time due to China's economic slowdown and intensified competition in the retail sector," said vice-president and senior analyst Alan Gao in a report. SWOT ANALYSIS BASED ON COMPETITIVE ADVANTAGEParkson was one of the famous shopping mall.In every department Parkson the product is highly diversified.It is one of a good strategy to increase the profit.

Weakness

Most of the product sell by them were more to the female department comparing with department.Parkson should implement differentiation strategy and make the diversification in to more wide area. Focus more on the product line and make it balance well be one of the great solutions for this matter.

Strength Opportunities

Parkson will attempt to upgrade its store image and profile, diversified product line to other industry and also can merger or joint-venture with other sector industry.Parkson mergers with other sector industry or use differentiation strategy, helps Parkson establish good reputation by thrust business into the limelight and open doors for Parkson.

ThreatsOther competitors might gains advantages on Parkson strategy and increase their sales.There will be some of the customer dislike the strategy of the Parkson.

RECOMMENDATIONParkson had started to pay attention to the environmental impact of our economic practices.To ensure that our communities are healthy, pleasant places to live.Parkson should propose the shop outlet to have a zero plastic bag day in order to archive a green environment target.Zero plastic on Saturday was not enough to influence the customer to be more green environmental minded but should apply to other day as well.The strategic recommendation based from the companys competitive environment which is their customer gets bored with the unchangeable environment to shop in Parkson.

Moreover, Parkson has to change their image and shopping environment to create good customer value.

Most of Parkson outlet had reconstructs their building, painting their building. Therefore, I believe that it is not enough to satisfy the customer needs.

STRATEGIC RECOMMENDATION OF PARKSONParkson can try to create their own super market or hyper market instead of renting their space to Cold Storage or Giant which can help them gain more competitive advantage and have a better shopping environment for their customers.

On the other hand, Parkson needs to diversify high in order to increase the profit.

Moreover, like I mentioned above Parkson needs to focus on their product line where Parkson would able to gain more competitive advantages.

Likewise, with an interesting or rewards which have been attractive, enhances the influence for their customers to spend more on their products.

FEASIBILITY

The justification strategy of Parkson, demote and reflects the growth of the structural challenges which Parkson is currently facing.

This includes intense competition from various high rental, retailers, and problems in upgrading new stores.

Moreover, the drawbacks of development together with it aggressive store expansion strategy will continue to pressure the companys profitability and credits of their organization. JUSTIFICATION OF STRATEGYACCEPTABILITY ConclusionBased on the overall assignment, Parkson had did a great jobs and able to maintain its competitive positions. After analysis the Parkson environment and other things, it has shown that Parkson able to develop more and gain more competitive advantage in futures.