2.

3 SWOT

After gathering information for the business model canvas, the next step is to
conduct an analysis through using SWOT analysis for every component of the business
model canvas.

(S) Strength (W) Weaknesses (O)Opportunitie (T) Threats

s
Components
Key Partners Several Commission Other partners Many rivals
Partners Charges with similar have same
with a large customer partners
customer segments
base
Key Activities Simple Workers with less Talents with Services from
workflow expertise expertise in F&B partners
and reliable industry stopped
platforms
Key Experienced Insufficient Hiring more Absence of core
Resources Manpower manpower during manpower to workers lead
peak hours improve business to
productivity close
Cost Lower cost Costs limit profit Acquiring the Increase in
Structure of raw gained shop eliminates rental, raw
materials cost of rental materials, utility
fees and
minimum wages
Value Satisfied Availability Scaling up the New entrants or
Propositions Customers business rivals with
similar services
Customer Repeated No budget for Co-creating for Decrease in
Relationship Purchasing Customer reviews from customer loyalty
s Behaviour Relationship consumers
of
Customers
Channels Multiple Less effective Promoting via Cooperation
channels channel social media with partners
(Facebook Page) stop
Customer Variety of Less accurate Determining Rivals with
Segments choices and segmentation more precise similar
great tastes customer segmentation
segment
Revenue Increased Limited Potential capital Competitors with
Streams revenue by productivity from investors larger scales
partnering who have more
with service cost advantages
providers

1.1.1 Key Partners 127

Hoowin Medical Trading works with a few business partners
to conduct its operations. As a wholesaler, its business partners are
including the manufacturers that supply big amount of goods to
them and restaurant that purchase their product to sell in their
restaurant. Manufacturers that supply goods to Hoowin Medical
Trading are located from several countries like the local Malaysia,
China, Korea and so on. The purpose of Hoowin Medical Trading in
choosing a foreign manufacturer is due to the cost is lower when
converted to Malaysian Ringgit. As for restaurant that purchase
stock from that are such as Jia Hao Restaurant from Johor and
Good Tea Restaurant from Sri Petaling that demand for osmanthus
tea pack, Yan Woh Tong from Negeri Sembilan that order Chinese
medicine etc.
1.1.2 Key Activities 70
Key activities or activities undertaken by Hoowin Medical
Trading include several processes, first the owner will restock raw
material from manufacturers and packaging it. After the packaging
process has done by employees, goods will be delivered to
customer's home or restaurant/stall by the owner through the
company's car based on location. While the company have no
regular marketing activities, these will be the only key activities from
Hoowin Medical Trading.

1.1.3 Key Resources 146

A successful and sustainable business model is made
possible by key resources (Otola, 2020). Hoowin Medical Trading is
a business engaged in Traditional Chinese Medicine and Chinese
grocery product. Resources are therefore a crucial component of
operational activity. Hoowin Medical Trading has a number of
essential resources to operate the company. Human resources are
the primary resource. Hoowin Medical Trading employs people who
are knowledgeable about Traditional Chinese Medicine and skilled
with packaging equipment.
Depending on the sort of job, each individual in the company
has a certain role. The owner's job is to make sure that business
operations go well, to take orders, to serve customers, and to plan
delivery schedules based on location. Meanwhile, employees will
take part in carry, packaging, and labelling products. Other tangible
resources include a smartphone with top-notch specs, a reliable
internet connection, and cash to give change to its customers.

1.1.4 Cost Structure 74

 Hoowin Medical Trading has made an effort to establish a
balance between fixed and operating costs, which include the cost
of machine, the cost of petrol, the cost of staff wages, the cost of
restock raw material and also the cost of shipping fees.
Administrative costs account for the largest share of total costs,
accounting for 65% of total costs. Sales costs come in second at
25% and equipment costs come in at 10%.

1.1.5 Value Proposition 168

For the convenience of customers who use Hoowin Medical
Trading services, the company prides itself on offering pleasant
customer service and reasonably priced healthcare based on
Traditional Chinese Medicine. Affordable pricing with high quality
goods and services is the value that Hoowin Medical Trading
prioritises. This is due to the rise of comparable firms that operate
similarly which is known as a competitive market. As a result,
Hoowin Medical Trading constantly puts pricing first in order to
consistently provide cheaper price than its rivals.
Pleasant customers service is the secondary value, where
Hoowin Medical Trading would love to retain customers loyalty. In
its point of view, retaining loyal customers has several advantages
for businesses. 91% of consumers claim that having good customer
service increases their likelihood of making further purchases.
Additionally, it costs five times as much to acquire new consumers
as it does to keep an existing one (Saleh, 2019). Therefore,
establishing profitable long-term connections with clients may be
accomplished via providing loyal consumers with excellent
customer service.

1.1.6 Customer Relationships 86

 Hoowin Medical Trading continues to leverage online
channels, including direct Message and digital call on WhatsApp
and WeChat, to maintain good relations with customers. Besides,
they strive to maintain the consistency of effort in product quality
management as well as the level of service provided to clients by
constantly treating them with respect and honesty. This is due to
the fact that they believe that engaging with their clients with
integrity and operating with honesty will lead to long-lasting loyalty
and trust between the two parties.

1.1.7 Channels 114

One of the channels Hoowin Medical Trading uses to contact
clients is an internet platform. The main online platform that utilizes
by Hoowin Medical Trading is WhatsApp and WeChat for phone
call and messaging. The owner may communicate with customers
from different states via WhatsApp and WeChat, a preferred
messaging software from their customers. Customers may speak
directly via live chat to ask inquiries, arrange service calls, lodge
complaints and feedbacks.
Apart from that, as Hoowin Medical Trading is having no
physical shop and prioritize on delivery its goods, it relies on word-
of-mouth advertising, which its customers suggesting their product
to their friends or relatives through their daily conversation, building
awareness in different areas.

1.1.8 Customer Segments 101

Although the average age of users of Traditional Chinese
Medicine are 68.9 years old in general (Xin et al., 2020), but the
target customer for Hoowin Medical Trading is from the age of 21 to
80, meaning that they are also reaching younger people who have
not yet been introduced to TCM and senior citizen that looking for
 health care. The races of its customer base are mainly Chinese,
with a percentage of 90%, and 5% for both Malays and Indians
customer respectively. Hoowin Medical Trading also has foreign
customers, including those from the United States, Singapore,
England, and Vietnam. This is supported by the availability of
internet platforms, enable foreign customers to request whatever
information they are in doubt.

1.1.9 Revenue Streams 53

Hoowin Medical Trading's primary source of income is the
sales of its goods and services. Hoowin Medical Trading is
frequently chosen by customers because of its generally lower
prices with high quality products and services compared to other
rivals and this is their tips to keep their sales volume above average
long term.