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UBMM3013 Strategic Management

Cheetah Holdings Berhad

INTRODUCTIO N Cheetah Corporation (M) Sdn Bhd Cheetah Reality Sdn Bhd Cheetah Marketing Sdn Bhd • Has casual wear under its own brand name .• Established in year 1979 • Involved itself in diversified activities • Has three small business unit (SBU).

Taiwan & Indonesia – Contributed 72. Economic factor • Inflation rates – Affecting apparel industry • Export oriented growth – High demand from major trading partners such as USA.Remote Environmental Analysis 1.5% of M’sia’s total trade (2007 annual data) Opportunity & threat for apparel industry . HK. Thailand. Japan. Singapore.

3%) industry • Income level – Monthly gross income per household increased from RM 2472 to RM3011 – Monthly gross income per household has the average growth of 6.8% per annum.3 mil. Social factor • Age distribution – M’sia population stood at 28.2.0% – Age 15-64 is the highest for apparel among other age range(67. . (2010) – Annual population growth rate Opportunity is 2.

Seed. Miki. Adidas  Online retailers . Rope. Reebok.. Vinci. P&Co. La Primavera and Monaco  International licensed brands  Nike.Industry Analysis • Strong Rivalry among the Existing Firms  Low product differentiation  Similar products offered  Differentiation basis – quality and design  Marketing effort needed to differentiate the products  Numerous competitors  Growing local brands  Padini.

• High Threat of New Entrants  Low capital requirements  Simple and insignificant scale factors and technology  Retail outlet set up cost is relatively low  Easy access to the distribution channel  Selling online  Specialist store  Store in shopping center ( increasing in number) .

27 billion). Japan (RM 221 million).• Low Bargaining Power of Supplier  Numerous suppliers (Suppliers to the apparel industry)  China. United Kingdom (RM 435 million). and Singapore (RM 218 million) . switching cost is minimal • High Bargaining Power of Buyers  Low switching cost  Many close substitutes brands offering similar products  High volume purchase  United State (RM 2. India. Vietnam and Indonesia (Apparel industry as a supplier)  Retail sector order in large quantities.

Internal Analysis: Primary Activities  Marketing and Sales • • • Correct target of psychographic and demographic segment High accessibility in Malaysia Different brands to serve different markets  Operations • • • Achieved cost leadership in manufacturing its goods Low labor costs Outsource .

Internal Analysis: Supportive Activity  General Administration • Based on the mission: increase shareholders’ profitability. • Expansion plan: signed a trademark licence agreement Woolworths plc of Britain with  Human Resource Management • • • • Mandatory Accreditation Program (MAP) Continuous Education Programme Employee Provident Fund Employees’ share option scheme (ESOS) .

U. age toddlers •150 consignment •Mid garment end consumers •More focus on young's •Fashion accessories outlets •Wide range of T-shirt •eyewear market •Antioni ••550 to 600young and kid Sportwear shop in •2007 Targeting and casual wear •Botton •Causal wear •B.M Equipment and Diesel •Apparel. eyewear. sports. footwear and carry wear market .Cheetah Holdings Berhad’s Strategic Group Map •485 outlets located in department stores •Own boutique •Will widen its retail network •The garden and Pavilion •Cloth •Targeting all age •Open new range group •Clothing •3 retail outlet golf and leisure •Both all for infants and ••Targeting gender group Casual. innerwear.

new strategies .Conclusion • Economies of scale & cost leadership • Huge retail network • Strategic management of the organization • Government needs to provide assistance • Implement bold.