PERODUA公司分析报告英文.doc

PERODUA was established in 1993, is a joint venture company between Malaysian and Japanese partners. PERODUA is the one of the top company in the automotive industry in Malaysia.

1. Competitors

Perodua has in fact only a few competitors in Malaysia. Proton savvy is the major competitor nowadays because it is the most fuel-efficient car available in Malaysia. Each kilometer consumes only 8sen. Savvy cost between RM 33549 and RM 43182 with a 1200cc engine. Proton's mission is to provide affordable car to customer and they focus on being the first choice of automobile products and services. However, its original mission was spoilt after the economic recession of 1987 when the Yen got stronger and Japanese parts cost more.

Naza sutera is also another compact car with price range of RM35988 to RM39988 and 1100cc engine. Although it has a similar pricing strategy and technology with Perodua, Naza Sutera had lost in terms of design which is the major factor that attracts youngster in their buying decisions. Naza Kia objective is the commitment towards building an efficient after sales network and achieve customer satisfaction through quality, versality, and affordability.

Toyota Yaris is one of famous compact car due to its famous brand with reliable performance and experience, safety features, modern design. Yaris equipped with a 1497cc engine and cost between RM52789 and RM100408 each. Some consumers may not be able to afford the price because import cars have higher price and tax amount than local brand. Toyota mission is moving forward because they believe there's no best, but only being better through the passion for innovation and discovery.

Suzuki Swift is equipped with a 1490cc engine and cost around RM84146.50. Swift is a compact car with modern design and good safety features that focus on passengers comfortable. It consumes more fuel than Perodua's products since it have relatively higher weight. Swift is more suitable in targeting middle and upper class consumers. Suzuki's mission is to promote better living conditions and satisfy people's needs through creativity and provides ‘value- packed' products.

Honda Jazz is an extra low fuel-consumption car with its 1497cc VTEC engine. It offers sporty looks and more space than any same level cars. Jazz cost around RM 103780 that caused it less competing than Perodua. Honda's mission is to be the leader in motoring industy. They aimed for being recognized internationally by winning awards worldwide.

Honda and Toyota has relatively high market share due to its famous brand, reputations, and reliable performance and high technology. Suzuki has lower market share than Honda and Toyota. Naza Kia have higher market share than Perodua. Although Perodua have the lowest market share, it owns a great potential in future market, both nationwide and international as fuel and material price are increasing in the future.

Figure shows the position of Perodua against its competitors in Malaysia.

Target Market
Perodua’s target market is the consumers under generation-Y, who are under the age of 20 years old to 34 years old. This is because these consumers will have the outgoing personality and more active. They will seek for the mini car which looks sportier and affordable for the beginning of their life journey.

Perodua also target the consumers who are under working and middle class because the company's products are well known in selling the economic cars. Perodua's product is focus on quality, economic and a good service which meet most of the consumer's satisfaction.

Market Positioning
Perodua successfully position their brand names and brand's unique benefits in the mind of the consumers which the company produce economic, mini and compact vehicles. Therefore, consumer will have a good perception towards the Perodua products because of the company's performance, quality and pricing. They have a good and strong positioning strategy among for each segment as they can differentiate their marketing offer compare to the competitors. This can be proved by the Perodua's vehicle are selling in a lower price, fuel efficient, sporty design, world wide quality recognitions which is from the ISO and last but not least, it is comfortable.

2. Strategy to its competitors

Basically, it is obvious that Perodua is using the focused cost leadership strategy. This is because Perodua is well known for its affordable and mini compact cars. It is focused cost leadership because its market is targeting on those who prefer these mini compact cars. Perodua did not produce big cars. Below are the details of the strategies of Perodua towards its competitors in detail.

Local competitor: Proton
Perodua’s main competitor, Proton company, is the local leader of Malaysia in the automobile industry, same as Perodua.

Previously, Perodua’s strategy was to corporate with Proton at the beginning. Perodua gain its automobile market share of Proton in Malaysia by focusing on automobile with low emission volume which displacement is between 600cc to 1300cc. Examples are Myvi and Kancil. Due to the increasingly high price of patrol and the enhanced of environmental-friendly awareness among people, Perodua’s economical, small and compact cars are becoming more and more popular in Malaysia market. However, Perodua company’s intension to merge with Proton ended in failure because both parties’ management disagree with each other, Malaysian government said it won't force two firms.

National car cannot always be dependent on the domestic market, it is necessary to explore international market. So Perodua sought for oversea alliance to support its technology to compete with Proton. Perodua is now controlled and very competently run by Japan's Daihatsu, part of Toyota.

Now Perodua’s strategy is to pursue cheaper green technologies with its technological partner Daihatsu to produce affordable plus environmental-friendly compact cars and stay ahead of its competitors.

International competitors
Perodua is not just having local competitor such as Proton, the main competitors for national vehicles are renowned brands such as Toyota, Honda and Nissan. Other than their attractive prices, these vehicles have also won the hearts of consumers through their innovative and sophisticated models.

The first strategy for Perodua to compete with them is pricing. This is done under the protections of government’s support, which is to impose high import and excise duties on non-national vehicles, with the aim to decrease the number of imported non-national cars. The price of Perodua was 20 to 30 per cent cheaper than similar capacity cars manufactured by other assemblers. Therefore, people who under low-middle income are more willing to buy the local cars compare to the international car. For a well-established brand, they can only remain its image built in the eyes of its constituencies whereas the local economic kind of cars is their final decision to purchase because it requires lower in cost as well as for repairing purposes.

Perodua's is also using the Research and Development investment strategy which focused on enhancing their capabilities in automotive technology, such as testing, design, and modeling to the final manufacturing engineering technology and operation. Perodua also formed an alliance with the Japanese Development Corporation, and Italy's Stole companies to provide them with the key technical support. At the same time Perodua choose to export more for future ways since Perodua cannot rely on temporary benefit in the domestic market. Therefore, the export market will play a more important role over the next five years.

3. Retail Mix

Price
The PERODUA concept is based on relatively affordable standardize price. PERODUA sells variant of vehicle with an indication of price not exceed of RM 60,000 to maintain the affordability, but yet delivering quality and style at the same time.

The price of the vehicle may change due but not limited to change in government approved net selling price, standard accessories prices, duties and taxes and freight rates etc. The cost of this increase shall be included into the net price.

Place
PERODUA has 39 sales branches and 140 sales dealers nationwide to serve its customers efficiently. It also has 41 service branches and 120 service outlets throughout Malaysia for customers’ convenience. PERODUA vehicles are sold in countries such as the UK, Singapore. In addition, PERODUA also exports their cars to Mauritius, Brunei, Sri Lanka, Cyprus, Malta, Egypt, Nigeria, Senegal, Lebanon, Qatar, Saudi Arabia, Syria, Nepal and Fiji in small numbers by local dealers.

Product
The PERODUA brand is identical with quality, affordability and fun-to-drive cars, since PERODUA started in Malaysia, its target market is mainly the local consumer, but also targeting new emerging international market, for instance; Indonesia. PERODUA produce mini cars that are targeting to those middle-income families. Hence, the three strong models can show this: Myvi, Viva and Alzaare produced by PERODUA.

Myvi has launched on 25 May 2005 that hit the big start by receiving the AutocarAsean‘s Car of The Year 2005/2006 Award, with such a high demand to continue improving on its existing models, then the following next year PERODUA launched the special edition of Myvi at the same time maintaining to launched the new car, which is Viva, and both get the the Best Model of the Year (Malaysia) Award at the Frost & Sullivan 2007 Asean Automotive Awards and Best Value for Money Model of the Year (Malaysia) at Frost & Sullivan Asean Automotive 2008 Awards. And by the end of the year 2009, PERODUA launched Alza. The latest news is that PERODUA plans to launch a new multi-purpose vehicle (MPV) model with an indication price of RM65,000 and below.

Promotion
PERODUA promotional efforts are mainly through its brochure, showroom, the PERODUA sites, and promotional campaigns that add value to the consumer. For instance;PERODUA provide the latest service centre with body repair and paint services at the nearest convenient place. The service package is charged at highly affordable price with the quality of services to keep your vehicle safe and in tip-top condition. The value added as PERODUA also provide the key drop boxes to store your keys and the complete form, imagine how relief and peace of mind if your car broke down or if there is any kind of accident. More promotions such as customer satisfaction survey lucky draw, GPS navigator upgrade, and express part delivery.

4. Bases of Competitive Advantage
PERODUA is a leading automotive manufacturer in the local automotive industry, with aspirations of becoming a global organization. PERODUA as Malaysia top car manufacturer, company had achieved a top 10 ranking at the Malaysia's automobile market. The bases of competitive advantage of Perodua are discussed below.

a) Customer Satisfaction and Loyalty
Marketing and Pricing strategy
The competition between domestic car industry and foreign car industry became fiercer, in order to continue survivor in the market, PERODUA must possess aggressive attitude in developing its sales and marketing strategy effectively. A good marketing strategy can be regards as a good weapon for PERODUA to gain sustainable competitive advantage in Malaysia automobile market. The main mission of PERODUA’s marketing concept is focus on lower income groups, students and second car owner market. This precise target lead PERODUA’s sale to the highest in the local market and that is the main reason why PERODUA automobile industry produces a car with lower HP and sales at the cheaper prices in market.

E-marketing
PERODUA move toward to connecting all branches, dealer, customer and banks to facilitate electronic marketing. The benefit of electronic marketing enables to accelerate business transaction process between seller and buyer and integrate all marketing related activities. Through the intelligence computer online system, the customer can enjoy a lot of conveniences in this online service such as place an order, delivery, online banking, user guideline, vehicle information( colour , brand, engine etc.), after sales service and so on.
Campaign & Promotion
Besides, Perodua is also keeping in touch with their customers by organizing some campaign and promotions. These activities not only enhance their customer relationship but also to attract new customers.

b) Reliable and Economical
Localization Activities
The manufacturing capabilities of PERODUA and local Malaysian component manufacturers have resulted in achieving 75 LMCP (Local material component points) in the manufacturing of the Kancil i.e. an optimal level for localization given economies of scale requirements.
· In-house localization
· Press Parts
· Engine Parts (intake manifold, cylinder head, camshaft, crankshaft, cylinderblock)
· Third party vendors, SMI (metal, plastic, electrical, rubber, sub-assembly, others)
· Joint venture operations
c) Reputation and Recognition
PERODUA has received the Innovative Leadership Award in Globalization from the Malaysian Institute of Directors. The award is in recognition of his outstanding leadership in building PERODUA into a global brand and also the success the company achieved in the past 18 years.

Perodua is recognized internationally. Perodua exports under its Perodua brand to seven countries, namely Sri Lanka, United Kingdom, Singapore, Brunei, Mauritius, Fiji and Nepal.

5. SWOT Analysis
Strength
Perodua is the low cost leader in Asia. With the help of Perodua’s 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 in Asia.

Perodua’s brand name is well established in Asia Pacific. Besides the normal print media advertising and promotions, Perodua’s top management also capitalized on promotion throughs news by being very “media-friendly” and freely sharing the latest information on Perodua as well as the automotive industry. These rationalization initiative enabled Perodua together with vendors and dealers to deliver improved quality of service and be more competitive.

Weaknesses
Over dependence on the domestic market and a weak brand image in the international market are the weaknesses of Perodua. Perodua can no longer depend on Government support for their survival and growth. Perodua also need to lower their dependence on foreign partners by speeding up their localization programme. 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.

Opportunity
Perodua