SWOT Analysis

A. Strength
I. Cheap price
Mydin is well-known for selling its product at wholesale price (40% of its
business is wholesale). As compared to its rival, (Giant and Tesco) Mydin is a
favorite place for shopping especially in period of economic down turn. This
proves that as Mydin grow organically, they gain strength in volume, thus can
sell cheaper as compared to its rivals.
II. Established brand name
A strong brand name is a major strength of Mydin. Brand name has a significant
impact and is an easily defend-able qualitative factor, so competing institutions will
have a difficult time overcoming it.

B. Weakness
I. Low quality
Mydin has a wide range of product line such as food line, soft line, hard-line
and household items. In order to maintain the customer, Mydin will need to
remain the prices as low. As the price gets low, the quality will be affected.
Mydin focuses on the prices, neglecting the quality of the products.

II. More employment of foreign worker

Mydin employs more foreign workers to save the labor cost, which
indirectly leads to the unemployment of local workers.

C. Opportunity
I. Expansion of the company to South East Asia and other countries
International markets offer Mydin new opportunities to expand the business
and increase sales. This qualitative factor will lead to a decrease in costs.
II. Develop online market
The online market offers Mydin the ability to greatly expand their
business. Mydin can market to a much wider audience for relatively little
expense. Online market will have a long-term positive impact on the this entity,
which adds to its value.

D. Threats
I. Competition from supermarkets and wholesaler, e.g: Giant & Tesco
Intense competition can lower Mydin’s profits, because competitors can entice
consumers away with superior products
II. Substitute products
The availability of substitute products affects Mydin’s ability to raise prices,
because customers can easily switch to another product or service.

2). Company strategies meet future challenges

The challenges in business world nowadays sometimes can raise doubt on a company’s
sustainability and also its future development. Therefore Mydin has formed and
implemented several strategies to meet its future challenges. Mydin is using low cost
strategy with acceptable quality product to attract lower and medium income group in
Malaysia. Through low price strategy Mydin can sustain its customer for a long period
and it will increase customer loyalty towards Mydin.

Moreover, Mydin has invested in centrally-managed data centre and network architecture
to improve its communications between branches and headquarter as well as between
merchandisers and suppliers. With this, the branches data can be captured immediately
and central merchandising and replenishment can be executed regularly. By this strategy,
Mydin will have good team work among employees and it also minimize operating cost.

Mydin also focuses on monitoring pilferage. Among the challenges faced by hypermarket
and superstore operators is high rate of pilferage, where it reduces the income and
increases the cost to the business. Mydin implement strategies to overcome pilferage by
fixing CCTV’s and alarm pedestals in key strategies areas on the sales floor as well as
storage area. By implementing these strategies, pilferage can be minimized and indirectly
it can reduce business losses.

3). How do you see the future of this hypermarket?

In my opinion, Mydin will be able to compete with international companies if the
strategies are implemented as planned. The success of Mydin will be attributed by the
quality and skill of the leaders, whom willing to push themselves beyond the limit and are
very hardworking.