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Mydin Analysis

2720 words - 11 pages

EXECUTIVE SUMMARY

Malaysia has emerged as a leading Asian economy where modern retail culture has gowned phenomenally, as a resulted attracted lots of foreign and local hypermarket brand in the market. MYDIN has emerged as one of the local dominant player in wholesale supermarket industry of Malaysia having significant market share over other local and foreign competitors. MYDIN has decided to become multinational because of highly saturated Malaysian market where a lot of competitors are operating. MYDIN has decided to invest in the small south Asian economies where consumerism is increasing at a rapid pace. Market selected is Sri Lanka which is a south Asian peninsula with the ...view middle of the document...

1.0 CURRENT BUSINESS IN MALAYSIA
1.1 Malaysian Retail Industry
Modern retail and consumerism has attracted many domestic and international hypermarket stores, expanding swiftly in Asia pacific region because of the increase in the competition in European and American markets. By the rapid increase in the modern retail culture in Malaysia, many big domestic and international hypermarket stores are expanding swiftly. Many international chains want to come to Asia pacific region because of the increase in the competition in European and American markets. According to (Mui et al, 2003) there are more than 81 hypermarkets and supermarkets stores are operating in Malaysia. Foreign chains with limited local ownership includes Giant, Jaya Jusco, Carrefour, Tesco and Jusco on the other hand there are some local chain which includes The store, Parkson, Kee Corporation, Ocean Capital, Mydin, Bintang, Billion and Econ. Increase is consumerism has played significant role in the growth rate of local hypermarket chain in Malaysia, where domestic consumption constitutes 60 to 70% of Malaysian GDP. (Inside Malaysia, 2012)
1.2 Business Profile
More than seven big hypermarkets chains are operational in Malaysia, amongst all are competing to get the maximum share in the market. MYDIN has emerged as one of the largest hypermarket in Malaysian with the network of 12 wholesale hypermarkets chain, 18 emporiums, 3 bazaars, 53 minimarket, 10 convenience shops and 5 franchise outlets as shown in figure below.

MYDIN is famous in Malaysia amongst Malay Muslim population because its core competency is in selling “Halal” goods and services. MYDIN had operating revenue of 7 million Ringgits in 2007, which makes them biggest competitors of other international hypermarkets chains such as TESCO, GIANT, AEON and CAREFOUR. (Source: MYDIN website) MYDIN has emerged as a largest market player in hypermarket industry of Malaysia as it continues to grow in the local saturated market. (Vasantha, 2012).
1.3 Opportunities for Growth
MYDIN has an intention to go multinational by capturing new markets because of the saturated structure of Malaysian market serves as a bottleneck for their future growth and potential. Emerging Asian economies such as Sri Lanka, Bangladesh, India, Pakistan, Thailand, Vietnam and Indonesia have significant opportunities for hypermarket business growth, which creates opportunities for MYDIN to have significant presence in those countries.
1.4 Selected Market
Democratic socialist republic of Sri Lanka, is located in the South Asia neighboring with India with the area of 65,610 km2. Sri Lanka has a population of 20,277,597, which is the 57th largest population in the whole world. (DCS Sri Lanka, 2012)
2.0 PEST ANALYSIS OF SRI LANKA
2.1 POLITICAL
Government
Sri Lanka has a presidential government system where president is head of states. Sri Lanka has multi party democratic system where executive power is exercised by government and parliament....

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