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Issues Quality and Reliability Issues:- Need to change image from a cheap car to a reliable, modern car.

PERODUA ALZA lack of strategic creativity led it to receive many negative comments from its own

newly found owners about its built-up quality and workmanship.

In May 2012, Perodua issued a recall order for both the Alza and its first-generation pre-face-lifted

hatchback MyVi for an extension of an air-conditioning pipe that previously could cause rust on the

steering rack.

Pricing Issue:- Need to increase market share and profit margin to maintain as the leader of car

manufacturer in Malaysia.

Reduction in import duties for CBU (completely build-up) imported cars from Japan and AFTA has

been mooted . Hence, car prices from foreign countries has been reduced significantly.

PROTON-the closest competitor in Malaysia( holding 24.1% of market share), has implemented best-

cost and broad differentiation strategy.

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Assumptions We assume that growth rate of economy Malaysia ~4.7% in year 2014.

We assume that the Malaysia automobile market will be growth at least 2 % in year 2014.

We assume that the organization will not be acquired by another organization during the

next 12 months.

We assume that there will be no new significant legislation or regulation of our industry

in the next 12 months.

We assume that no new competitor is entering into the Malaysia automobile car industryin the next 12 months.

We assume that Perodua is mainly produces economy cars that has high efficiency on

petrol consumption.

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Fish Bones Analysis

Porters Five Forces

Pareto Analysis

TOWS Matrix

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Fish born(Ishikawa) Diagram

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Fish born(Ishikawa) Diagram

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Porters Five Forces

High competition among the

suppliers across the globe spare

parts/accessories

Many suppliers are able to lower

down the price due to competitive

market

Competition from National car player which is

supported by government PROTON

Other automobile strong players such as

Toyota, Honda and Nissan. Emerging other

aggressive player like Volkswagen with their

more economic type of cars that targeting

middle income group

Many are focusing on their pricing strategy to

attract new customers. Eg: Honda Jazz Hybrid:

only RM500 and you can have the car

Not easy to enter to automobile industry as this

must incur high capital investment

Local brand with fair price

Brand Loyalty among the customers. Switching

brands or new car require more cost

In future government is considering to reduce

the taxes of the imported automobiles, more

brands from different country will penetrate to

Malaysia especially brands from China

Customer has many other automobile

brands or second hand cars to choose

beside PERODUAMany customer switching to hybrid cars

which is more fuel saving and environment

friendly

Substitute of other brands of vehicles when

price and specification is not favorable many

other choices in the market

Changing of transportation method from

private cars to public transport or car pool

system. For short distance travel, bicycle maybe favorable

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Pareto Analaysis

Issues Score Cumulative % Cut off %

improve safety 7000 20% 0.8

introduce more range 5500 30% 0.8

focus on economical design 4900 40% 0.8

improve sales satisfaction 3200 65% 0.8

increase staff motivation 2400 79% 0.8

intensive marketing 1900 85% 0.8

identify new target markets 900 100% 0.8

improvesafety

introducemore

range

focuson

economicaldesign

improvesales

satisfaction

increasestaff

motivation

intensivemarketing

identifynewtarget

markets

0%

20%

40%

60%

80%

100%

0

2

4

6

8Pareto Analysis

Score Cumulative % Cut off %

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Strengths S

S1 Established since 1992S2 High market share in local automobileindustriesS3 - association with Toyota and DaihatsuS4 Big production factory

Weakness W

W1 Low safety standardW2 Low automobile technologyW3 dependence on local market

Opportunities O

O1venture into foreignmarkets

O2 Malaysian consumerpreference for small build carsO3 new merging urbancities/town for small cars

S1 O1 : Perodua ready to venture intountapped foreign marketsS3-O2: establish strong partnership withToyota and Daihatsu of build attractivesmall build cars to capture bigger market.S2-O3: by riding on the most preferred localcar should move aggressively to capturenew merging urban towns

W1-O3:new merging urban cities folkspriorities low cost vehicle over safetystandardW2-O2: Use existing technology tooffer affordable and low pricepassengers car to cater for localmarkets.W3-O1:Should venture into newforeign markets to reduce overdependence on local market .

Threats

T

T1 Close competitive fromProtonT2 merging foreign cars in thesame segments Kia Suria,Hyundai I10, etc.T3 consumer preference for

EEV

S3-T2:Ride on high technology of Toyotaand Daihatsu to produce quality cars tocompete with foreign cars.S1-T3:Perodua to focus on producing lowcost cars to offer attractive price toconsumer.

W2-T3:To build own R&D to venturein EEVW1-T2: To build more quality car tocompete with merging foreign cars

External factor

Internal factor

SWOT and TOWS