You are on page 1of 6

PASDEC Holdings Bhd is a leading Property Development Construction

Manufacturing and Others segments in Pahang and is at the forefront in


providing housing needs for the society in the east coast region. The
company was founded in 1995 and they are listed on the main board of
the Bursa Malaysia Securities Berhad since 1997. It operates through the
following

segments;

Construction,

Investment

Manufacturing,

and

Holding,
Others.

Property
The

Development,

Investment

Holding

segment engages in the provision of management services. The Property


Development segment develops residential and commercial properties.
The Construction segment handles the construction of residential and
commercial

properties.

The

Manufacturing

segment

manufactures

automotive related products. The Other segment comprises of value


engineering, consultancy services, UniFi installation and information and
communication technologies related services. Further it is involved in
renewable energy business. For this current year, the focus will be on the
development of new townships in Kuantan at Bandar Putra in Tanjung
Lumpur, Bandar Damansara Kuantan and Bandar Baru Gebeng. Other
than these places, we are also building residential and commercial
properties in Chendor, Balok in Kuantan, Rompin and Raub.
PASDEC Holdings Berhads vision statement
A companys vision and mission are objective oriented which usually
spells out the companys aim and focus. PASDEC Holdings Berhads vision
statement indicates the companys long-term strategic direction in the
construction

industry

organisation

Take

is
it

To
further

be

is

the

progressive
approach

to

and

excellent

PASDEC

business,

partnerships and aspirations. It embodies their spirit and outlook. It is the


message they want to convey through their words and above all their actions. It
is the essence of PASDEC, making them unique.

PASDEC Holdings Berhads mission statement


To be an esteemed organisation in property development and to invest in
other

businesses

this

could

contribute

the

best

returns

to

the

shareholders,

customers

and

employees

through

an

efficient

and

responsible management.
PASDECs mission statement focuses on its main goal which is developing properties.
Second diversify their business. The firm always considers the preferences and expectations
of shareholders, possibly based on tendencies and market research. In the strategic actions
included in its mission statement, they emphasize on quality of products, with reference
criteria as safety for customer and employee satisfaction. Thus, PASDEC mission statement is
inclusive and aligned to its vision statement.
Strategy
Mission of PASDEC is Developing Properties and second to diversify their business The
current business is concentrated delivering across the three strategic priorities which are,
investment, construction and manufacturing. The aims of this strategy include improving its
sustainable financial performance, reducing risk and increasing growth. The strategic
priorities include simplify the operating model, growing the diversified global business and
controlled growth in Construction in our Home markets, increase investments in Commercial
Development, leverage Infrastructure Development business model and keep Residential
Development stale in our Home Markets and focus on developing people and foster high
performing teams. Finally to improve performance and achieve a higher level of operational
stability continue to deliver on our Sustainability areas, Safety, Ethics, Green, Corporate
Community Investment, and Diversity and Inclusion.
The aim of this type of analysis is to understand what distinguishes each
of the five generic strategies and why some of these strategies work
better in certain kinds of industry and competitive conditions than in
others. A companys competitive strategy deals exclusively with specifics
of managements game plan for competing successfully. These includes
its specific efforts to please customers, strengthen its market position,
counter the manoeuvres of rivals, respond to shifting market conditions,
and achieve a particular kind of competitive advantage.
The two biggest factors that distinguish PASDEC from another boil down to
first, whether a companys market target is broad or narrow and second,

whether the company is pursuing a competitive advantage linked to lower


costs or differentiation. These two factors give rise to five competitive
strategy options as follows:
1.
2.
3.
4.
5.

Low-cost provider strategy


Broad differentiation strategy
Focused low cost strategy
Focused differentiation strategy
Best cost provider

Brand
PASDEC has a strong brand position and is recognized in Malaysia industry
home markets. The aim is to be known and recognized for their strong
values and dedication to creating shareholder value, while building for a
better society.
PASDEC employs low cost strategy to provide customers with a
competitive price for their products. The cost driver in their business is
mainly building materials. They cut cost here by having long term
contracts with suppliers. PASDEC is a low-cost provider but it is certainly
not a low-cost leader. Another way they lower cost is by revamping the
value chain system. They have a sales and marketing department that
make direct sales to customers rather than going through agents which
will in turn charge agency fee. This market target is for broad crosssection of buyers.
PASDEC also employs Broad Differentiation Strategy. This is because
buyers need and preferences are too diverse to be fully satisfied by a
standardized product offering. PCB conducts a careful study of buyers
needs and behaviours to learn what buyers considers important, what
they think has value, and what they are willing to pay for. Then the
company include these desirable features to clearly set itself apart from
rivals. One way it does that is by offering different product to different
market target. If they want to build a property that is out of town, they will
build a landed property and not high rise because people demand those
kinds of residents there. In some areas, spacious houses are needed with

more bedrooms while other places need smaller houses. So, with these
kind of demands, PASDEC offer different products to a wide variety of
customers. PASDEC increase unit sales due to this differentiation strategy
and it also commands a premium price for its products. PASDEC
differentiation is both tangible (in terms of quality, style, and functionality)
and intangible (image, status, prestige).
PASDEC also appeals to niche members that need specialized requirement
in using those products. A focused low-cost strategy in PASDEC aims at
securing a competitive advantage by serving buyers in the target market
niche at a lower price than those of rival competitors. PASDEC offers low
cost to niche market in out of town low income areas where residents can
only afford a low-cost landed property.
In the Focused differentiation strategy, PASDEC also appeal to the
unique preferences and needs of a narrow, well-defined group of buyers.
There are products that PASDEC reserve for this niche segment. There are
buyers who are looking for special product attributes and PASDEC provides
that need to them. This is usually accompanied with a premium price
charge on the products.
The Best cost provider strategy stake out a middle ground between
pursuing a low-cost advantage and a differentiation advantage, and
between appealing to the broad market as a whole and a narrow market
niche. PASDEC have buyers that are looking for a good-to-very-good
product or service at an economical price, and these represent most of
their sales. Those value conscious buyers who are willing to pay a fair
price for extra features they find appealing. PASDEC gives those buyers
value for their money by satisfying their desires for appealing features
and quality while charging a lower price for these attributes compared to
competitors with similar offerings. PASDEC thus offers a hybrid choice
balancing a strategic emphasis on low cost against a strategic emphasis
on differentiation.
Conclusion

The generic competitive strategy that best fits PASDEC is the Focused
Differentiation strategy. This is because PASDEC operates only in
Malaysia, in some parts of Kuantan and Pahang with customized products.
They serve a narrow market in the industry. In addition to that, they
charge a premium on their property which is midrange rather than cheap
basic unstylish products. They are also a market follower; they dont
dictate the market.
Strengthening weaknesses
Needless to say, PASDEC cant allow a glaring, gaping weakness to languish in their
business. Serious weaknesses have to be addressed, but they dont need to be turned into
strengths. Serious weaknesses only need to be neutralized to the point they no longer threaten
PASDEC on-going existence.
The fastest way for PASDEC to strengthen their weaknesses is to strengthen their team. First,
get everybody in the right job. Assign them tasks that match their person abilities, skills and
DNA. Next, figure out where your team is lacking in knowledge or experience. Decide
whether that gap can be filled through training or whether it needs to be filled through a new
hire. The final solution for PASDEC to plug a threatening weakness is to adopt a best
practice. That will take a bit of time and an unyielding commitment to putting in place the
right process. If PASDEC arent using the right process now then they will need to push on
through that resistance and remain strong in their belief that the gain will be worth the pain.
Strengthening Competitive Strategies
These are measures that a company can follow to strengthen its
competitive position. They can go on the offensive and initiate aggressive
strategic moves to improve the companys market position. The company
can also employ defensive strategies to protect the companys market
position. If a company wants to improve its market position and business
performance, then it should employ offensive strategy and on the other
hand if the company wants to lower the risk of being attacked, fortify its
competitive position, protect its most valuable resources and capabilities

from imitation, and defend whatever competitive advantage it might have


the it employs the defensive strategy.
PASDEC can use its best competitive advantage to employ defensive
strategy in areas where it has strength against rivals. The company can
use its exclusive design as a defensive tool against its rivals while offering
a slightly lower price in comparison to their competition. They can do so
by launching a pre-emptive strike to secure an advantageous position in
new area development areas. They also introduce new features in their
products; they also broaden their products line.
Another managerial decision that can affect the strength of PASDEC is the
breadth of its activities and the extent of its market reach. The question of
whether PASDEC should expand into other states and other countries or
should it strengthen its position and market presence in the regional area
of Selangor and Penang? The answer to this should is that PASDEC should
strengthen its position in Klang valley, shah alam, and other Selangor
areas that it has presence, any expansion should be around this
geographical area. This is because PASDECs strategy is focused strategy;
it might lose its focus by expanding fast into other regions in Malaysia.
PASDEC broaden its scope in the same geographical location that it has
presence by looking into a Strategic Alliances. If PASDEC should engage
in collaboration with a company in the same industry, that will provide a
means for expansion, it can also significantly lower their cost of operation
by creating a more leaner company. They can increase market share and
expand their coverage and investment.