INTRODUCTION

To conduct analysis in order to enhance Perodua

market share in Malaysian & international markets.

To analyse current business using SWOT, TOWS, BCG &
PORTERS Five Forces.

To make findings from the analysis where we are and
where we want to be.

To make recommendations on strategic direction for
Perodua.
ISSUE & ASSUMPTIONS
How to further increase Peroduas market share in
Malaysian and international markets?
ISSUE
Perodua current market share is 30%
Peroduas cash flow will continue to be stable and
strong
Malaysian and global economy is stable
No extreme increase in petrol price
ASSUMPTION
TOTAL INDUSTRY VOLUME
VS PERODUA SALES
Type 2013 % market
share
2012 % market
share
2011 % market
share
PERODUA 196,071 29.9% 189,137 30.1% 179,989 30%
Proton 138,753 21.2% 141,121 22.5% 158,657 26.4%
Toyota 91,185 13.9% 105,151 16.8% 86,951 14.5%
Nissan 53,156 8.1% 36,271 5.8% 32,480 5.4%
Honda 51,544 7.9% 34,950 5.6% 32,276 5.4%
Others 125,084 19% 121,123 19.2% 109,770 18.3%
BCG MATRIX
?
Low
High
High Low
C
a
s
h

U
s
a
g
e
-

M
a
r
k
e
t

G
r
o
w
t
h

Cash Generation Market Share
30%
35%
Currently Perodua sits in Cash Cow quadrant and going to increase share which
require to spend more to sit in Star quadrant.
RIVALRY AMONG
EXISTING COMPETITORS
There are other existing
brands with better brand
perception that can rival
Perodua. Rivalry is high.

POTENTIAL
NEW ENTRANTS
Car manufacturing has high entry and exit
barriers, due to high capital requirement.
Thus, potential new entrants is low.

THREAT OF SUBSTITUTES
There are other substitutes eg motorcycle,
train, bus that can be a threat to Perodua.
Threat is low since buyers will prefer to
drive cars than take the substitutes.

BARGAINING
POWER
OF SUPPLIERS
Perodua has 140
vendors and
sourced its
materials abroad.
Its suppliers has
moderate
bargaining power.

BARGAINING
POWER
OF BUYERS
Many options from
other car makers,
hence, high
bargaining power
from customers.
PORTERS FIVE FORCES MODEL
SWOT ANALYSIS
Competitors & substitutes in the
market eg Proton Savvy, Hyundai
i10, motorcycle
Governments reduction on import
duties.
Increase in bank interest rate for
loans.
Invest in market for bigger
passenger vehicles
Invest in countries that are
similar to Malaysian market eg
Fiji, Nepal, Sri Lanka etc
Invest in new market for eco
cars
Association with low safety
standard: recalling of cars
Association with low quality: parts
have to be replaced frequently
Too focused on Malaysian market
which will become mature
Too dependent on Daihatsu for
upgrades
Mediocre customer service
Focuses on Malaysian market
Focuses on small passenger
cars
Affiliation with Toyota
Affordability
High resale value
S W
T O
TOWS MATRIX



7
Strengths S
1. Focuses on Malaysian market
2. Focuses on small passenger cars
3. Affiliation with Toyota
4. Affordability
5. High resale value
Weaknesses W
1. Low safety standard
2. Low quality
3. Too focused on Malaysian market which will
become mature
4. Too dependent on Daihatsu for upgrades

Opportunities O
1. Invest in bigger passenger
vehicles
2. Invest in countries that are
similar to Malaysian
emerging market
3. Invest in new market for
green eco cars
SO Strategies
(Use strengths-take advantage of
opportunities)
Produce cars with affordability using
latest hybrid technology (S1, S2,S4,O3).
Export to emerging economies
countries (S2, S4, O2).
Cost leadership (S4, O1).
Undertake collaboration to develop
better technology (S3, O1, O3).
Maintain the high resale features in
bigger vehicles/eco cars (S5, O1, O3).
WO Strategies
(Overcome weaknesses -take advantage of
opportunities)
Exportation (W3,O2).
New development of bigger and eco
vehicles (W1, W2, O1, O3).
Training and development to minimise
dependency on Daihatsu technology
(W4,O1, O3).


Threats T
1. Competitors & substitutes
in the market
2. Increase in bank interest
rate for loans
3. Governments reduction on
import duties
ST Strategies
(Use strengths-avoid threats)
Cost leadership to compete in similar
vehicle class (S4, T1).
Increase local content to reduce
production cost (S4,T2, T3).
WT Strategies
(Minimise weaknesses-avoid threats)
Invest in training and development to avoid
buyers from switching to competitors or
substitutes (W1,W2,W4,T1).
Invest in countries that have lax in bank
interest rate and government policy to avoid
increase in interest rate and import duties
(W3,T2,T3).
Pareto analysis
0%
5%
10%
15%
20%
25%
30%
35%
40%
bad customer service Association with low
quality: parts have to
be replaced frequently
Association with low
safety standard:
recalling of cars
Competitors &
substitutes in the
market
Governments
reduction on import
duties.
Increase in bank
interest rate for loans.
Cause of complain
Number of complain
Fishbone Analysis
RECOMMENDATIONS
In order to increase market share:
Upgrade production technology in
order to improve efficiency and
quality of the cars. Improve efficiency
means ability to produce more cars
with consistent quality.
Maintain small car segment with up-
to-date technology.
Train and develop human resource.


Training and
development
of personnel
New
development
of vehicles
and maintain
small car
segment
Exportation
CONCLUSION
In the BCG matrix analysis, Perodua sits in the cash cow quadrant. It has
low usage of cash but high market presence in Malaysia.

From SWOT analysis, it can be seen that the main factor that can help
Perodua to boost its market share further are quality in products and
service

From TOWS analysis, Perodua can be said a cost leadership company. To
increase market share, it must improve on production technology and
training and development which will lower cost in the long run. Perodua
also needs to improve on its quality standards and customer services.

From Porters 5 forces analysis, Perodua has the competitive advantage
over other local car maker. Focus on exportation.

CONCLUSION
In Pareto analysis, the customer service should be improved as they are
the frontline facing customers.
In Fishbone analysis, there are six elements that seems to be able
improve market share that is on
people,
process,
Equipment
Management
Material
Environment.