SWOT Analysis

Beryl's Chocolate has several businesses in its portfolio. They delivered chocolate
manufacturing, consumer packaged chocolates, biscuits, confectionery items, and retailing
services. The market that we are concentrating on is food retail.

One of the opportunities that Beryl’s Chocolate has is a hybrid mode of operation. The food
retail sector in Malaysia is a thriving industry that includes both large-scale retailers like
department stores, hypermarkets, and supermarkets, as well as smaller merchants like local
sundry shops. Supermarkets and hypermarkets are gaining in popularity and are often found
in urban areas. When the pandemic COVID-19 hit the world in the first quarter of 2020,
people were trapped in their homes due to the government's enforcement of movement
restrictions, creating a new normal that provided an opportunity for these retailers to improve
their business while incurring lower operating costs. People may move freely to retail stores
to buy groceries and goods in the pre-covid situation. As a result, merchants must recruit
more employees to meet customer demand.

In contrast, the new norm, the physical store's function will diminish. The physical is no
longer the main component of the purchasing flow, but rather a part of it. When the globe
was hit by the pandemic in early 2020, digitalization played a critical role. With the
restrictions that were imposed to contain the pandemic, online shopping became the new
purchasing method. The goods ordered are either picked up from the store or delivered by
courier. E-commerce, also known as online retailing, was started in 2004 in Malaysia. Since
2015, the most popular e-commerce platforms have been Shopee and Lazada.

According to (Star, 2020), online retail sales increased 28.9% in the month of April 2020
when the first movement control order was implemented. As a result, retailers should grab the
golden opportunity to change their business model to a hybrid mode in which physical and
online retail operate at the same time. The reason for starting with hybrid mode is that not
everyone enjoys online shopping owing to worries about quality, trustworthiness, and safety.

Therefore, hybrid mode may cater to more customer segments, such as online and walk-in
customers, resulting in increased sales and improved inventory control. To begin with,
businesses can set up their own online retail shop on their website instead of using an e-
commerce platform that requires them to pay a commission. If there is a large response to
online retail, they may need to switch to an e-commerce platform for better management.
On the other hand, there was not always a green scene in the business world. There are also a
threat that are facing food retailers. For example, Beryl’s Chocolate faced a competitive
market in the retail food industry.

Malaysia's retail market has been one of the most important contributors to the country's GDP
for decades (GDP). Malaysia's retail economy is quickly increasing, particularly in the food
retail sector. According to Retail Group Malaysia (RGM) (Murugiah, 2019), Malaysia's retail
market grew at a 4.5% annual pace in the second quarter of 2019. This shows that Malaysia's
retail marketplaces have a high potential for development, which will entice new companies
to enter the industry.

According to (Statista, 2022), the statistics show that the sales value of produced chocolate
goods in Malaysia has increased dramatically, particularly from 2019 to 2021. In 2021,
revenue reached over 12.59 billion. This clearly demonstrates that the chocolate market in
Malaysia is competitive, as there is high customer demand. Top competitors include
Cadbury, Nestle, Ferrero Rocher, and others who have their products easily available at any
retail store or supermarket. Some of the brands are also reasonably priced, whether for
teenagers or adults. Beryl's company should be aware of their positioning strategy and price-
skimming strategy in order to keep Beryl's brand in the hearts of customers, particularly in
Malaysia.

Moreover, small and medium-sized retailers are under intense pressure from their top
competitors to provide superior customer service, causing them to lose their competitive
advantage in the existing markets. For example, KitKat was chosen as the official partner of
the Malaysian E-sport scene because of their strong presence in the Malaysian market
(Daniels, 2021). This has shown that the top competitors have a better advantage of being
selected as an official partner of events being organised in Malaysia. These companies greatly
benefited from being selected as partners as they could further advertise their products to
more people with a limited cost compared to those small and medium-sized firms that need to
pay advertising fees on social platforms. Beryl's chocolate may lose clients if they do not
utilise their strengths effectively.

Lastly, given that consumers are more tech-savvy and socially aware as a result of the
Internet, having an online presence is one of the industry's biggest problems. Although this
sector has been rather slow to maintain itself, essential businesses like textiles, electronics,
appliances, and other home goods have already established their position in the commerce
sphere. Although wholesalers and retail businesses have just started to invest in grocery e-
commerce, it is still essential that most manufacturers have a presence on the Internet in order
to address what appears to be one of the food and beverage industry's most pressing concerns.

References

Daniels, T. (2021, June 14). KITKAT CHUNKY partners with Malaysian esports competition
University e-League. Retrieved from ESI Esports Insider:
https://esportsinsider.com/2021/06/kitkat-chunky-partners-with-malaysian-esports-
competition-university-e-league
Murugiah, S. (2019, September 12). Malaysia retail industry grew 4.5% in 2Q2019, seen
growing 4.4% in 2019, says RGM. Retrieved from The Edge Market:
https://www.theedgemarkets.com/article/malaysia-retail-industry-grew-45-2q2019-
seen-growing-44-2019-says-rgm
Star. (2020, June 11). Retrieved from Malaysia's online retail sales up in April:
https://www.thestar.com.my/business/business-news/2020/06/11/malaysia039s-
online-retail-sales-up-289--in-april
Statista. (2022, October 5). Retrieved from Sales value of manufactured chocolate products
and sugar confectionery in Malaysia from 2019 to 2021:
https://www.statista.com/statistics/642679/sales-value-of-chocolate-products-and-
sugar-confectionery-in-malaysia/