Jon Pang Question 1. Using appropriate tool sundertake an internal analysis of Proton Motors to appraise the extent to which the company is able to sustain its competitiveness as an automobile manufacturer in Malaysia. To kick-start the internal analysis of Proton Motors, the resources, both tangible and intangibles, are identified and extracted out from the case study as follow: Tangible Resources Financial a.
When Proton started they had a good marketing plan and strategy with Gurcharan at the helm.
I do wonder after so many years whether Proton has a knowledgeable marketing team. The motorcar industry is a hyper-competitive industry with many brands thus car companies need good marketing plans to survive. Some of the key factors are as follows: The product design cycle is short — between 3 to 5 years.
This is due to designs being stale after a few years. Even Perodua follow this cycle — Myvi as an example. Honda, Toyota and almost all brands adopt this cycle. This factor is related to the next critical factor in the car industry. This should be achieved in the shortest possible time.
Other car companies follow this strategy as closely as possible like Toyota that uses the 1. The same applies for Honda in the City, Jazz, etc.
Has Proton adopted this strategy? The answer is NO. Perodua licence their engine technology from Daihatsu and hence only pay loyalty and does not incur design cost.
It has been published that even using the Daihatsu platform, the design cost of the Myvi was RM million. In this hyper-competitive industry players need to create market niche for themselves. Each major player need to identify their competitive advantage and leverage on it for profitability and sustainability.
Perodua has kept itself in the Category A and B of the market segment and carve out their market shares. Change in strategy to expand into the C and D segments and the parting of relationship with EON have resulted in the downward market share trend for Proton. In marketing, cannibalisation is a major pitfall in any marketing strategy.
This has a major impact on sales and market share for it gives too many choices to the prospects while the prospect is able to buy only one car.
Later Proton introduced the Wira and was still successful but when the Waja was introduced the Wira was not withdrawn thus starting the process of cannibalisation of market share between brands. With the introduction of the Gen 2 and not withdrawing the Wira compounded further the problem.
Then Proton introduced the Persona to compete with their existing brands further confusing the market as these brands are in the same market segment — B and C segments depending on how you look at it.
Then you have the Satria, Savvy, Suprima and Iriz. How many sub-segments can you further cut out? The price difference is not very wide. How many of these brands have achieved breakeven volumes? If breakeven volumes are not achieved you cannot have economies of scale both for the company and its suppliers as the number of parts required expand exponentially.
Branding and Brand Names: Proton should have a broader and longer vision. When it was conceived, it should have considered that the project is not import substitution but in the longer term export oriented as the Malaysian market size at the start was around 18 million and the neighbour Indonesia and Thailand is many times bigger than Malaysia.
Developing and establishing a brand name is an expensive long term investment and therefore longer planning horizons should be considered. Toyota has maintained the Corolla up unti present while Honda has maintained the successful brand Civic.
While saga in other countries — Britain, Europe means a tale or episode and is close to the popular language used for branding — Latin, Italian.In the next ten years, they continue to plan and produce an innovative variety of replicas consist of the Proton Waja, Proton Juara, Proton Arena, Proton Gen 2, Proton Savvy, Proton Persona, Proton Innova as well as Proton Preve (grupobittia.com).
Introduction. PAGEREF _Toc \h 3 2. Background of Proton. PAGEREF _Toc \h 3 3.
The Tactical & Strategic Report on Proton Holdings This site shows the contents, data classes and data sets found in The Tactical & Strategic Report on PROTON HOLDINGS Bhd. This example identifies all the main data classes, however it represents the minimum database configuration.
This paper focused the relationship marketing in branding within the customer durable goods, specific to the firm-dealer relationship in Malaysia automobile industry perspective.
The dealers in this study represented by Proton, Perodua, Toyota, and Honda remarked the contribution of sales volumes for more than , units for. units were sold in the years and Strategic Management Decisions on Improving Proton Passenger Cars Performances 1.
Literature review: 2. ). ). Besides.1/5(1).