Barriers faced by MYDIN in its business From our findings in the papers provided, we have learnt that from

the very beginning of the establishment of Mydin, the owners had to face various problems throughout their entire journey till present. However, we have also identified several problems which we believe should have also had played some role through their tough times. The table below indicates the problems faced by the owners and some brief explanation about it.

PROBLEMS Single store at the very beginning

DESCRIPTION During the earlier days of Mydins establishment in Kota Bahru (1940s 1960s), Mr. Mydin was only able to operate and maintain one outlet There were various other marketing opportunities but due to the difficulty in expanding it was unreachable Again during the earlier days of establishment, Mr. Mydin had to cycle to deliver his goods and it lasted several years. Though this problem had been sought out at present, it is rather clear that it was perilous and tiresome at the beginning of its operations In most cases, the MYDIN has set an idea in our thoughts that the products sold at the premise is emphasized towards the Muslim community This has certain been a setback as other competitors are able to catch hold of the target market; Indian and Chinese community. Dato Ameer Ali was not keen to join his other family members to develop the family business as he preferred to further his studies and work at a different

Logistics/Transportation

Often - narrow definition of the word Mydin

The departure

of

Dato

Ameer Ali to venture into

banking industry

field. His lack of interest/enthusiasm towards the family business would have left the other members feeling de - motivated which is not an ideal situation Regardless of what maybe, Dato Ameer Ali latter joined the family owned business much to the delight of Mr. Mydin.

The table below shows some of the suggestions which we believe could have had an impact in the form of barrier to Mydins development and progress over the years; PROBLEMS DESCRIPTION The year 1997 1998, was a period where the world underwent economical crisis and at that moment, the government decided not to adjourn by taking up Economic crisis financial aids, leaving us to face inflation for the future betterment. Most products price had to be increased as sources were scarce and for wholesalers who try to sell things cheap, it would have been a terrible moment trying to make profit. Government policies Often, government policies tend to change much to the disagreement of business prospects such as Mydin Fluctuating exchange and interest rate, various schemes and so on would have been quite troublesome. The arrival of competitors The arrival of competitors such as Tesco, Carrefour, Giant and etc to dominate the west coast where the

life style competency is higher was a big threat Though the east coast market favors Mydin, the other end was against it and Mydin had to plan out new methods to standing alongside the big guns of wholesales industry.

Besides, there are several strategies taken up by Mydin which played a pivotal role in securing its place as the leading hypermarket in Malaysia. Some bold decisions were also taken by Mydin in upbringing its service to its customers. The strategies taken by Mydin to maintain its competitiveness is summarized in the table below:

STRATEGY The choice to begin as retailer Kelantan in Kota Bharu,

DESCRIPTION Close proximity to Thailand means that Kota Bharu is the best transit for business transactions between the two countries. The heavy traffic of goods to and from Thailand has facilitated Mr Mydins business to expand and achieve popularity among the local residents.

Started

branch

of

Marking another milestone in the family business expansion plan.

Syarikat Mydin Mohamed in a neighbouring state of

Kuala Terengganu

Business philosophy in wholesale pricing which is a strategic advantage

MYDIN purchases in bulk to enjoy lower prices. Sources of merchandise vary both locally and abroad which indicates unlimited choice of supplier. Emergence as a retail hypermarket has posed stiff competition to local major players like Carrefour, Giant and Tesco.

Provides a variety of similar products as the international hypermarket.

Being aggressive in promoting their store Add a wide range of Islamic items in their store MYDINs support philosophy-to local small-time

Applies to promotional materials of their rivals, by setting up corresponding billboards and by

purchasing similar advertisement placements in the newspapers as and when the need arises. Presence of Islamic items for sale whereby

competitors are yet to be confident to put them on sale in their hypermarkets. High confidence level to do something competitors are yet to do. Bold decision. Support through MYDINs pricing schemes, adds promotional value to MYDINs social responsibility in solidifying the spirit of entrepreneurship.

businesses such as small grocers, boutiques and

stationery shops. Opening of new branch next to its closest business rival, Giant. New opening in Kuala MYDINs business format Terengganu

Another bold decision Increased MYDINs revenue compared to Giant. Gained respect and trust from investors. More investors became keen to invest in MYDIN. Awareness of the trust and good response from MYDINs previous family business imitated in Terengganu. Gained overwhelming response from the local customers. Primarily focused on price structure. Understood that customers are sensitive to price fluctuations and they want product that have value

for money. Listens to MYDINs staffs opinion Strong cooperation among and the collaboration departments Get to know products which do or do not fare well. The strategy to know customer better from its staffs perception. Gives rise to effective internal marketing strategy among the employees from different units. With the support of MYDINs employees, the strategy is successfully transformed and embedded in the organization daily working culture. Effective business motto and tagline Selection of the right target market Everybody can buy at MYDIN and Why Pay More tagline has been successful in attracting customers to shop at MYDIN.

In order to cater to different market segments i.e. lower to upper class consumer, different customer groups, different ethnic and nationalities, MYDIN had come up with a portfolio of different business formats such as the hypermarkets, emporiums, convenience stores and mini-markets, that proved to be extremely successful.