TAZA KALAMBATA TP042828 UC3F2011

INDIVIDUAL ASSIGNMENT
TAZA KALAMBATA
TP042828

TECHNOLOGY PARK MALAYSIA

CT012-3-3-CSM

COMPUTER SYSTEMS MANAGEMENT

UC3F2011 & APU3F2011

HAND OUT DATE: 02 DECEMBER 2020

HAND IN DATE: 02 MARCH 2021

WEIGHTAGE: 50%

INSTRUCTIONS TO CANDIDATES:

1 Submit your assignment at the administrative counter.

2 Students are advised to underpin their answers with the use of references (cited
using the Harvard Name System of Referencing).

3 Late submission will be awarded zero (0) unless Extenuating Circumstances (EC)
are upheld.

4 Cases of plagiarism will be penalized.

5 The assignment should be bound in an appropriate style (comb bound or stapled).

6 Where the assignment should be submitted in both hardcopy and softcopy, the
softcopy of the written assignment and source code (where appropriate) should be
on a CD in an envelope / CD cover and attached to the hardcopy.

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7 You must obtain 50% overall to pass this module.

TABLE OF CONTENTS
1. SWOT ANALYSIS..............................................................................................................3

2. WEAKNESSES OF KINOKUNIYA..................................................................................3

2.1 CONSTANT NEED OF WEBSITE MAINTENANCE..............................................3

2.1.1 DISCOUNTS AND PROMOTION.......................................................................3

2.2 HIGH SHIPPING COSTS............................................................................................4

2.2.1 FREE AND FLAT RATE SHIPPING..................................................................4

3. EXPANSION TO NEW OVERSEAS MARKET.............................................................5

3.1 SECURITY THREATS.....................................................................................................5

3.1.1 DIGITAL THREATS.................................................................................................5

3.1.2 PATCHING OF OPERATING SYSTEM AND SOFTWARE..........................5

3.2 CRIME LEVELS...........................................................................................................5

3.2.1 RISK ASSESSMENT..............................................................................................6

4. USE OF IT TO ENHANCE A SUPPLY CHAIN..............................................................6

5. REFERENCES.....................................................................................................................7

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1. SWOT ANALYSIS
SWOT that is an acronym for the word’s strengths, weaknesses, opportunities and threat is an
analysis technique used to make the best of what you have in the company’s best interest as
well as decrease the possibility of failure by understanding what is needed and avoiding
threats. Kinokuniya that is a book store has fierce competition and also been a leading
competitor and is a threat to most of the entrants in the market. A SWOT analysis will be
used to determine the company’s weaknesses. Weaknesses are as important as strengths in a
company, identifying them will help identify areas of improvement. As a result of this
identification the company is able to design steps to fix and monitor these weaknesses that
might help the company expand.

2. WEAKNESSES OF KINOKUNIYA
Kinokuniya is a well-known company and established brand in Japan, USA and the Asia
market that decided to expand into ecommerce providing its customers with a website where
they are able to purchase and search for books. This expansion exposed the company to few
weaknesses. Below are a few of weakness that have been identified.

2.1 CONSTANT NEED OF WEBSITE MAINTENANCE

One major weakness is the constant need of website maintenance. When a website is
launched by a company like Kinokuniya, it should bare mind the cost website maintenance.
This is because website maintenance is very expensive and costly. A book company has even
narrowed profit margins which might results into low profits made from sales, that might
affect the constant need of website maintenance because the company might not be able to
cover for the maintenance costs. With failure to constantly maintain the website the company
will not be able to improve its security that might expose its customers to potential cyber
attackers. Not only will it fail to improve its security but they will not be able to optimize the
visitor experience that will help them promote the brand, work and keep growing the
company. Without website maintenance the company is at risk of losing customers, cyber-
attacks and a high possibility of losing profits.

2.1.1 DISCOUNTS AND PROMOTION

With the use of porter’s competitive strategy, Kinokuniya has a high advantage of
overcoming the cost of constant website maintenance. The strategy that can be applied to

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overcome the weakness mentioned above is differentiation. Differentiation is a porter’s

competitive strategy that is used to provide customers with something unique, different and
distinct from its competitors in the market. Discounts and promotions can provide a
distinctive look for the company and drive more sales, bring in new customer and give the
company more advantages over its competitors. With discounts and promotions customers
are happier because they are able to receive a coupon or a saving offer, this will result into
customer satisfaction and customers picking your products over competitors. For instance,
Kinokuniya can ran a promotion for its customers by offering an e-library where customers
are able to borrow books and read them via their website at an affordable price. This will
increase Kinokuniya profits margins and will be able to cover the cost of website
maintenance.

2.2 HIGH SHIPPING COSTS

Kinokuniya has high dispatch and delivery rate on its ecommerce web-site. For example, in
its Malaysian store it charges about 8.00 ringgits within peninsular Malaysia and 13 ringgits
for east Malaysia with an additional 3.00 ringgits for an extra copy. These charges are
expensive compared to other delivery rates that deliver locally or within a country. Shipping
costs have a huge effect on how customers view a store and whether or not they shop there.
High shipping costs might discourage customers to purchase or make orders through the
website which might result in the loss of customers.

2.2.1 FREE AND FLAT RATE SHIPPING

Cost leadership that is among the porter’s competitive forces can be applied to high shipping
costs this is because one main goal this competitive force focuses on is increasing market
share by charging lower prices and still making a reasonable profit on each sale. Kinokuniya
can introduce free shipping for its local customers this will promote more sales because
customer tend to see free shipping better deal despite the fact that might end up spending
more money. For its international customers, the company can offer flat rate shipping this is
putting a standard rate on all orders regardless of size, amount and weight encouraging
customers to order more for a small standard shipping fee. This will attract more customers
and generate more sales.

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3. EXPANSION TO NEW OVERSEAS MARKET

Expansion is always a good option for a company to grow and generate more income.
Kinokuniya’s expanding into will markets will give them a chance to attract and retain new
customers. As much as expansion is important to the company, they should also be able to
identify security factor before expanding into a new market because there is always a higher
risk associated with big opportunities.

3.1 SECURITY THREATS

As Kinokuniya plans to expand they should address several Key security factors some of
which are:

3.1.1 DIGITAL THREATS

When expanding, a company because more and more exposed to cyber attacks because they
will need to start using the internet to communicate and connect the rest of the stores. The
reason for this is because certain regions are highly developed in technology which puts them
at high risk. Digital threats or cyber threats coming many different ways some of which is
various forms of malware, different types of phishing attacks and social engineering,
formjacking and human nature itself. This threat can be avoided and below is a method on
how Kinokuniya can use to avoid this threat.

3.1.2 PATCHING OF OPERATING SYSTEM AND SOFTWARE

One-way digital threats can be avoided is by patching operating systems and software’s
regularly. When expanding Kinokuniya will introduce new systems suitable to the region
they plan to expand into. Every new system is a door for cyber attackers, they can avoid this
by making sure software every software used on the system is up to date and every now
computer is update, protected and secure. These updates will be able to sort out all the loops
in the new introduced system and make sure the company is protected from cyber-attacks.

3.2 CRIME LEVELS

In every society they are levels of crime that will consequences impact every part of the
society. Certain regions have different levels of crime that might affect a new up coming
business. The threats crime bring to business are varied from loss of life, medical costs,
property losses and loss income. Kinokuniya can be affected by crime levels in the new
markets they are trying to expand into because new businesses in new nations can be easy
targets for crimes like corruption, vandalism and robberies. High levels of crime can also

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affect the economical status of a nation which might affect the company and force them into
shutting down.
3.2.1 RISK ASSESSMENT
AS Kinokuniya is planning to expand into new markets it should carry out a risk assessment
to avoid any criminal threats. They company should first start by identifying what it does and
what is involved to find out if it will be an attraction to criminals. After a risk assessment has
been carried out the company should make sure their premises are secure and insured to
avoid any losses and damages. Risk assessments are very important because they will not
only create awareness of hazards for Kinokuniya but also help them acquire legal
requirements that are applicable in the new market.

4. USE OF IT TO ENHANCE A SUPPLY CHAIN

In the developing era of the 21st century, a lot of companies are starting to incorporate
technology with a lot of their systems for example supply chain management systems have
started to use latest technology to ensure better accountability and visibility. With the use
technology Kinokuniya when expanding into new markets will be able to keep tight control
and stay ahead of their competitors. Technology will improve the company’s operation to
track, detect and correct mistakes as well as making improvements to ensure high quality
product. It develops a platform for supply chain management where every point in the supply
chain is observed at the same time and can notify everyone involved when changes are made
through variety media channels. Kinokuniya with the use of IT will have the ability to
computerized shipping and tracking as well as electronic invoicing that will promote
customer satisfaction. They will be able to check for available stock from suppliers and
Kinokuniya stores around the world by software programs or cloud computing. The use of IT
will provide plenty of supply chain advantages to the company.

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5. REFERENCES
Roque, C., n.d. How to Use Discount Pricing Strategies to Make More Sales. [online]
Business Envato Tuts+. Available at: <https://business.tutsplus.com/tutorials/how-to-use-
discount-pricing-strategies--cms-28611> [Accessed 26 February 2021].

Free Essays. n.d. SWOT analysis of Book world Bookstore - 1337 Words | Essay Example.
[online] Available at: <https://ivypanda.com/essays/swot-analysis-of-book-world-
bookstore/> [Accessed 26 February 2021].

Indeed.com. n.d. [online] Available at: <https://www.indeed.com/career-advice/career-

development/differentiationstrategy#:~:text=A%20differentiation%20strategy%20is%20an,is
%20to%20increase%20competitive%20advantage.> [Accessed 26 February 2021].

UKEssays.com. n.d. SWOT Analysis of Online Bookstore. [online] Available at:

<https://www.ukessays.com/essays/marketing/the-business-plan-of-online-bookshop-
marketing-essay.php> [Accessed 26 February 2021].

Forum One | Turn Ideas into Impact. n.d. Why Is Website Maintenance Important? [online]
Available at: <https://www.forumone.com/ideas/why-is-website-maintenance-important/
#:~:text=Regularly%20updating%20and%20maintaining%20your,boost%20returning
%20traffic%2C%20and%20more.> [Accessed 26 February 2021].

Return Customer. n.d. Effects of Shipping Costs on Customer Behavior. [online] Available
at: <https://returncustomer.com/effects-of-shipping-costs-on-customer-behavior/> [Accessed
27 February 2021]

n.d. [online] Available at: <https://malaysia.kinokuniya.com/events/688> [Accessed 27

February 2021].

Mindtools.com. n.d. Porter's Generic Strategies: Choosing Your Route to Success. [online]
Available at: <https://www.mindtools.com/pages/article/newSTR_82.htm> [Accessed 27
February 2021].

Business 2 Community. n.d. How to Mitigate Risk When Expanding Into World Markets.
[online] Available at: <https://www.business2community.com/strategy/how-to-mitigate-risk-
when-expanding-into-world-markets-02198386> [Accessed 27 February 2021].

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Vella, D. Using technology to improve supply chain management. [online] Source Today.
Available at: <https://www.sourcetoday.com/supply-chain/article/21865881/using-
technology-to-improve-supply-chain-management> [Accessed 28 February 2021].

Hashed Out by The SSL Store™. The Top 9 Cyber Security Threats That Will Ruin Your
Day - Hashed Out by The SSL Store™. [online] Available at:
<https://www.thesslstore.com/blog/the-top-9-cyber-security-threats-that-will-ruin-your-day/>
[Accessed 28 February 2021].

IndustryWeek. How to Protect Your Business from Cyber Attacks. [online] Available at:
<https://www.industryweek.com/sponsored/article/22028019/how-to-protect-your-business-
from-cyber-attacks> [Accessed 28 February 2021]

Encyclopedia.com. Economic and Social Effects of Crime | Encyclopedia.com. [online]

Available at: <https://www.encyclopedia.com/law/encyclopedias-almanacs-transcripts-and-
maps/economic-and-social-effects-crime> [Accessed 28 February 2021].

Moneydonut.co.uk. Managing business risks overview. [online] Available at:

<https://www.moneydonut.co.uk/insurance/managing-business-risks/managing-business-
risks-overview#_ga=2.191256685.675057685.1614541689-1067728871.1614541689> [
Accessed 28 February 2021]

Ccohs.ca. (none). [online] Available at:

<https://www.ccohs.ca/oshanswers/hsprograms/risk_assessment.html#:~:text=Risk
%20assessments%20are%20very%20important,the%20public%2C%20etc> [Accessed 28
February 2021].

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