Professional Documents
Culture Documents
Politic Political factors refer the policies and actions of the governments.
P&L are important factors especially in food industry.
P stability affect MM company survival in the industry and business
process run smoothly.
tax policy such as Good and Services Tax (GST) affect all the business,
includes MM.
Economic Huge influence on the business of MM for ex like gross domestic product
and inflation.
If economy not stable MM will not expand their business because
probability that the company will lose a great amount of money.
factor: cost of living
MM located at north Malaysia such as Kedah and Perlis. This is due to the
cost of living in northern area are lower compared to other part of
Malaysia.
Socio- MM products is for everyone no matter people from any area, culture and
Cultural income
They use soy sauce, chilli sauce and vinegar in their daily life
factor: Demographics
Consumers in northern and southern part of Malaysia have a different
tastes and behaviours. MM produce the different product to meet
customer demand & preference. From 3 main product only SOY SAUCE
distributed in southern part of Malaysia due to the different in the
geographical taste.
Technology Internet and Mobile Technology is currently growing rapidly and people
nowadays will get contact with it.
MM can promote their products by using technology (media/radio) .
Customer can get information from their website (offer, prices)
Example 1: the use of advanced machinery in operation process had
increase the productivity. It is also can reduce the errors during the
operation process
Example 3: C4 system (pg 10) & Switch from UBS to Autocount (pg 11)
Ecology MM using the plastic bottles for their product packaging.
Consistent with the environmental law that implemented in Malaysia.
It easier to recycle as well as not producing much pollution.
MM have their own strength compares to their competitors & affect their
bis.
FIVE FORCES MICHAEL PORTER
possibility new firms may enter the industry affect the competition.
Current food industry, specifically soy sauce industry is pure competition market in
from the competitors such as HB, JL, AB.
A pure competition market commonly typically easy to enter and exit the market.
Therefore, new entrants affect the food industry, which is soy sauce industry
MM faces stiff competition from other business that offered the same product (chilli
sauce, soy sauce & vinegar)
MM needed to be constantly prepared to face threat of new entrants into the same
market. (pg 8)
The competitors’ products could easily enter the new markets due to their popularity
and aggressive advertising.
The main raw materials needed by MM for production were soy beans, dried chili,
sugar and salt, and of course, the plastic bottles.
There are seven (7) suppliers, TC, HM, AAA, SSF, HL, RB and BN, supplied raw
materials to MM. (Pg 3)
For MM, it was not difficult to get new suppliers if the current suppliers overcharged.
Since the raw materials needed by MM is not unique and easy to get, suppliers’
bargaining power for MM products are relatively weak.
They are many competitive suppliers and MM can easily find a new supplier.
However, MM prefers to create and preserve long term relationships with its suppliers
as this helps to ensure the quality of raw materials being purchased. (pg 3)
The soy sauce industry is very competitive due to the recipes of soy sauce and the
ingredients used to make it are usually the same and low level of product
differentiation.
MM needs to set up objective to gain its market share by processing competitive
advantages over its rival companies such as JL, AB and HB.
MM was increasingly facing fierce competition as many food manufacturing rivals
had achieved significant improvements in their operating efficiency.
Mr. Kim realised that some of MM’s competitors had previously received several
awards, especially for quality standardisation. For instance, HB’s soy sauce, a well-
known product in this country, especially in West Malaysia, had received the ISO
9000:2008 certification, which was an obvious indication that HB’s products had
fulfilled international quality standards; customers had since begun to make a beeline
for HB‘s soy sauce which were marketed all over Malaysia, including Sabah and
Sarawak and to some countries, such as the United Kingdom. (pg 8)
Strength Weaknesses
S1) Own Soy Sauce Recipes W1) Less comprehensive marketing strategy
which is lack of promotion during festive
S2) Be able to receive various awards
( Halal from Jakim, MeSTI cert from Ministry of W2) The supplies are not able to meet customer
Health, GMP award) demand
S4) Monopoly in Northern of Malaysia in Kedah, W4) Lack of product variety ( vinegar, soy sauce
Perlis & Pinang. and chilli sauce)
S5) Affordable price RM 2.80 with GST. W5) Lack of employee skills because their
priority is among family members and fren(pg 5)
S6) Strong support from government agency
(FAMA, MADA, MARA, MARDI, SIRIM,
TEKUN NASIONAL)
Opportunity Threat
O1) Customers' confident on local product T1) Competition with HB, AB and JL.
O2) Indirect Marketing ( Sell directly to the T2) The changes of customer perception and
customer lori & student ke luar ngra) behaviour. Example, customer's tastes can
always change because of the price of
O3) Market expansion globally competitor's product almost same, and at market
they display the product side by side.
O4) There is higher opportunities of potential T3) Unsustainable price increase by suppliers
suppliers for resources. For example in Arab might increase the cost of product, hence it
Saudi, the ingredient of MM product are totally increase the price and cause lost of customers
halal product, and Arab Saudi known as one of the
islam countries. T4) Product imitation/ duplicate
T1) Competition with S5T1: Product Development W3T1- Improved Their facilities
HB, AB and JL. Strategy W2T2 - Aggressive marketing
strategy
T2) The changes of S1 T4: Branding strategy
customer perception and
behaviour. Example,
customer's tastes can
always change because
of the price of
competitor's product
almost same, and at
market they display the
product side by side.
MM using their own secret recipes which is one of the main strengths that help their
business maximize the profits. (pg 4)
Taste of product especially soy sauce are diff from others. ( awal pg 2)
The textures of the MM products are more classic and pure which they never make
any innovations in their recipes.
Loyal customers especially the older will always stick to buy and use this product
because the taste and texture never changed.
MM products had received many awards and certs likes HALAL certs which make
customers more confident on their products. ( awal pg 3)
This give more advantage to business to attract more customers (Muslims).
Customers give full support to business and this will helps them to max profit.
The best strategy MM should implement is growth strategy (have to expand the
company’s activities).
Business can maximize the production and try to minimize their cost.
Easily distribute their output inside and also outside of Malaysia.
Overcome the supplies problems that cannot meet the customers demand.
Problems MM is have to face is their operation machine are not enough to produce
two products at the same time which is sauce and soy sauce.
Main threat of MM is the competition with others firms that also market the same
products likes sauce, soy sauce and vinegar.
Competitors already achieve variety of awards especially in term of quality
standardization. (para last pg 8)
MM Company can improved their facilities which is provides the machine for make
production more effective and efficient.
MM Company can compete with their competitors and meet customer demand.
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