6.

0 iRecommendation i(Strategy)

Top iGlove iis iconsidered ia i„One-stop iComplete iGlove iSourcing iCentre‟, iproviding i13 itypes iof
i glove iproducts imainly ifor imedical, itechnology, ifoods iand iservices, iindustrial, iutilities iand
i household. iThe icompany‟s igloves ihave ibeen icertified iwith iinternational iquality iawards ifor
i export ito idifferent icountries. iOver ithe iyears, iTop iGlove ihas ireceived imultiple ilocal iand
i international istandard iaccreditations iand iexcellence iawards ias ione iof ithe ibest irun ibusinesses
i in iMalaysia. iThe icorporate iobjective iof iTop iGlove iwas ito ibe ia imanufacturer iof iworld-class
i gloves ioffering itop-quality iproducts iwith iexcellent iservices ithrough icontinuous iimprovement
i and iinnovation.

These iobjective ican ibe imet ithrough imore icareful iimplementation iof ifollowing istrategies:

a) Learning istrategies
In iits iearly iyears, ithere iwas ia ishortage iof itechnological iknow-how. iTop iGlove iinspired
i an iattitude iof icontinuously iimproving ithe iquality iand ifinding inew iknowledge ithrough
i extensive iR&D iby icapitalizing ion ithe itechnological iexpertise iof ithe iMultinational
i Corporations i(MNCs) iand icreated iits icompetitive iadvantage isince ithen. iThe iMNCs
i thst imanufactured irubber igloves iin iMalaysia iled ito ithe igrowth iof isupporting iindustries
i and ithe itraining iof ilocal itechnical istaff. iLocal iindustry itook iover iafter ithese iMNCs
i left. iThus, iTop iGlove ihas ithe icompetitive iadvantage iof ilocal iknowledge, ilocal iculture
i and iworking ienvironment, ileading ito ibetter iglove iquality iand ilow-cost iglove.
b) Expansions istrategies
For iTop iGlove, ithe icountry‟s irising iproduction icosts iand ithe ihighly iincreasing idemand
i for iits irubber iglove iproducts iare iencouraging iTop iGlove ito iopen inew iproduction isites
i internationally. iThis ienable iTop iGlove ito ibe ia iworld iclass icost ieffective iproducer iwith
i the imost iwide irange iof ipremium iquality iglove iproducts iwith ilow icost. i

c) Growth istrategies
Top iGlove iis iabout ito igrow iby iexpand iinto iworldwide iwhich iis iacquition istrategy. i

Top iGloves ihad idone isuccessfully iwith ithe ilearning iand iexpansion istrategy, ibut iTop iGlove
i continues ito ilook ifor ia inew iway ito igrow ito imore iand imore icountries.. iSo, iwe irecommended
i Top igloves ito iexpand iinto iworldwide, iwhich iis iacquisition istrategy. iOne iof ithe isuccessful
i companies iwho iusing iacquisition istrategy iis iShowa iCo. iwho iacquired iall iof iTillotson‟s iBest
i Glove ioperations iand isubsidiaries, iwhich iare ihelping ito icreate ia iglobal ileader iposition iin ithe
i glove imanufacturing i(Showa iGlove, i2009).

Acquisition iof ithe icompany iin ithe isame iindustry iwould iincrease ithe icompany istrength iin
i production, ireaching icustomer, iand ieven ithe ioperation ithrough isynergy istrategy isuch ias ithe
i expertise iand imachinery i(Showa iGlove, i2009). iThe iadvantages iof iacquisition icarry ito ithe iTop
i Gloves iis ireduced ithe icost iwhich iis ifull ifilling ithe iobjective iof ithe icompany. iTop iGloves iare
i able ito igenerate ithe iraw imaterial ineeded ito iprocess ithe igloves ilike ipalm ikernel ishell iand ilatex
i from iIndonesia. iBesides, ithe ilabour icost iin iIndonesia iis imuch icheaper icompared iwith
i Malaysians‟ ilabour icost. iWe isuggest ithat iTop iGloves ishould imaintain itheir icurrent iexpansion
i strategy iwhich iis iexporting iand ibuilding ithe imanufacture iin iforeign icountry, iat ithe isame itime,
i adopt ithe iacquisition ito itake iover ithe irelated icompany iin iforeign imarkets. iOnce iit iis iconfirmed
i that ithe imarket ipossesses ia ihuge ipotential ifor igloves imarket, iTop iGloves imay iset iup ia
i manufacture iplant iin iIndonesia iand iimplement ibackward iintegration iby itaking iover ithe irelated
i company isuch ias isupplier ifor ipalm ikernel ishell ifirms.

Top iGlove ishould ibe iaware iof ithe ipolicy ichanges. iPolicy ichanges iexist idue ito iunstable
i condition iin iterm iof ipolitical ipressure, ieconomic itrend, isocial iunrest iand irestriction iof ithe
i ownership iof inondomestic icompany i(Wild, iJ. iJ., iWild, iK. iL., i& iHan, iJ. iC. iY., i2010).
i According ito iBoediono i(2005), ito iachieve ilong iterm ibusiness iprofit iin ia idynamic ichanging
i country ilike iIndonesia, iit iis iimportant ito imaintain iawareness ibetween ieconomies iand ipolitical
i issues. iA istrong iprofessional iteam imust ibe ideveloped ito imaintain ihigh ipolicy ieffectiveness.
i Hence, ito imanaging ithreats iof ipolicy ichanges, iTop iGlove ican igather imore iforeign iinformation
i in iIndonesia ithrough irecruit iforeign iproficient iconsultant iwho iunderstands ithe iforeign iculture
i well.

Hiring ilocal imanagerial italent iis ithe ibest iways iin iforeseen iand ihelps iin iexplore ibusiness
i opportunity, iit imay ifacilitating ithe iprocedures iin igetting iapproval iand iapplication iof ilocal
i operation iand iresult iin iattracting imore ilocal ipeople ijoin ito ithe inew iestablished icompany.
i Besides, igovernment iwill imake ichange ion ieconomic ipolicy iand ilegal irules iin iorder ito iforcing
i the ibusiness ito iupdate ithe iway ithey ido ithe ibusiness i(“External iEnvironment iTheory,” i2013).
i Thus, iTop iGlove imust imanaging ipolitical-risk iservices iand iissues icarefully iwhich iis iincurring
i news ipublication, iemployment iissues, ibanks iassociation iand isocial imedia inetwork. iThe
i company ican irely ion ilobbying ito ihelp iin iadministration iof ipolitical imatter iand ibusiness
i operation, iassociate iwith ipublic iand ibringing ipositive iimpact ito isocial. iBuy ithis iway, iTop
i Glove ican ireduce ithe irisk iin iglobal ibusiness iextension iand iminimize ithe ipossibility iof ilegal
i fault.

Top iGlove ishould icreate iown ibrands iin ithe ilong iterm ias iit idoes inot ihave iown ibrand igloves. iBy
i creating iits iown iblend iof igloves ihelps iTop iglove ito ibuild ibrand iimages iand isecure icustomer
i loyalty iby ihaving iproducts ithat icarry iits iown ibrand iname. iThe ibenefit iof icreating ia iown ibrand
i name iwould ialso iinclude icreate ibrand irecognition, ian iexisting ifirm ithat ihas istrong ibrand
i recognition iwill irepel ithe inew ientrants iand iif ithe ibrand iexisting iproduct iis ibeing iperceived ias
i unique iwould iresult iin icompetitor ineed ito ispend imore icash ito ipromote iand ieducate iits
i customer iabout itheir iproduct iand idirectly iincrease ithe icost iof itaking iover ithe imarket ithus
i make ithe imarket iunfavorable ifor inew ientrants i(CIMB, i2007).

Due ito igigantic isize iof iTop iGlove iCompany, iexponential igrowth iand iexpansion icould igo
i against iTop iGloves‟ ifavor iand imakes iit idifficult ito icontrol iand ikeep ian ieye ion iits iforeign
i plants. iTop iGlove ineed ito icreate ia imore icentralized idecision imaking ienvironment iwhich iits
i foreign iplants ireceive iorders ifrom iits imother iheadquarters iand ienforce istrict icontrols ion ithe
i foreign iplants ito iensure iillegal iactivities iwhich iis idemonstrated iby iillegal ilabor iissue ionce
i happened ito itop iglove imanufacturing iplant iat iKlang ithat iwhooped ito iRM i11.4million iwould
i not ihappen iin ithe ifuture i(ANIS, i2006).

Top iGlove ishould idevelop imore iunique itechnology ito iincrease ibarrier iof ientry. icurrently iTop
i Glove‟s ilatex imanufacturing isector iknown ito ihave ia ilow ientry ibarrier iwhich iis ionly ifrom
i around i1 imillion ito i1.5 imillion ito iopen ia inew iproduction iline. iIt iis iconsidered ilow ibarrier ifor
i competitor imanufacturer ito ienter ithe iindustry. iNew iplayers ionly ineed ito ikeep ion iproducing ito
i enjoy ithe ishare iof iwealth ifrom ithe imarket idue ito ieconomic iof iscale. iAggressive iexpansion iby
i big iplayers ipose ia iserious ithreat ito iTop iGlove ias ithey ineed ito icome iout iwith isomething iunique
i in iorder ito idistinguish ithemselves ifrom ithe icompetitors. iFor iexample itop iglove ican idevelop
i proprietary iproduct itechnology, itechnology iis ian iintangible iasset ithat iresembles ia ibarrier ito
i entry, iif ian iexisting iproduct iis iprotected iby ia ipatent, iit iwould inot ibe ipossible ifor ithe inew
i entrant ito iuse ithe isame itechnology ito icreate ithe iproduct iwithout ithe ipermission ifrom ithe
i patent iowner i(TomSpencer, i2010).
Top-Glove ineeds ito iprotect itheir iintellectual iproperty iright ifrom iviolation iin iIndonesia. iOf
i Protection iof iintellectual iproperty irights i(IPR), iIndonesia iis ihindered iby iinadequate
i enforcement iof ithe irelevant irules iand iregulations. iProblem iin iintellectual iproperty irights
i protection iraised iby iindustry iinclude irampant iaudio, isoftware, iand ivideo idisk ipiracies i(with ia
i piracy irate iestimated iat i87 ipercent); ithe ihigh ipercentage iof ipiracy iwill iaffect ithe irevenue iof
i Top-Glove iin iIndonesia‟s imarket. iSo ia istrong iprofessional iteam imust ibe icreated ito istrengthen
i and ifind iways ito iprotect ithe iintellectual iproperty iin iIndonesia ito icreate ia ihigh icompetitiveness
i or imore ivalues icompany iin ithe iIndonesia. iTop iGlove iCompany ishould ibe ivigilant iand
i creative iin ibuilding istrategies ito iprotect itheir iproducts ifrom iinfringement. iAs ian iexample, ia
i company imight ifirst iidentify ithe icounterfeiters iof iits iproduct. iThey ithen iproceed ito inegotiate
i and itry ito idevelop ithem ias ilegal ilicensees iof iit iproducts.

Several igeneral iprinciples iare iimportant ifor ieffective imanagement iof iintellectual iproperty
i rights iin iIndonesia. iFirst, iit iis iimportant ito ihave ian ioverall istrategy ito iprotect iyour icompany
i IP. iSecond, icompany iIP iis iprotected idifferently iin iIndonesia ithan iin ithe iother icountry. iThird,
i right imust ibe iregistered iand ienforced iin iIndonesia iunder itheir ilocal ilaws. iRegistration iof
i patents iand itrademark iis ion ia ifirst-in-time, ifirst-in-right-basis, iso iTop iGlove ishould iapply ifor
i trademark iand ipatent iprotection ieven ibefore iselling itheir iproducts ior iservices iin ithe iIndonesia
i market. iIt iis ithe iresponsibility iof iright‟s iholder ito iregister, iprotect, iand ienforce itheir iright.
i Company imay iwish ito iseek iadvice ifrom ilocal iattorneys ior iIP iconsultants iwho iare iexperts iin
i Indonesia ilaw. iIt iis iimportant iof istrengthen iand iprotect ithe iintellectual iproperty ibefore
i entering ia inew ientry imarket. iIt iwill ibring ithe icompany ia ilot iof ieconomic ibenefit ifor itheir
i business iand iprevents iother iparties ifrom iusing iand itaking ithe ibenefit iof ithe iresult iof itheir
i creative iand iinnovative imind iwithout itheir iconcern i(Purba, i2001 i& iSommeng, i2002).