PROTON BEHARD is a Malaysian car manufacturing company that was established by the government in 1983. The objective behind the creation of the car company was to aid the attainment of the country’s goal of becoming an industrialized nation through a fortified car manufacturing industries. The country also had the intention of acquiring improved technology and industrial skills through the new manufacturing field which in turn is believed will fortify the status of Malaysia as an industrial Nation
The vision of proton is stated thus “to become Asia’s premier automotive brand; a brand that connects with people and provides products which become life companions”.
The company is with 15 different models which include persona, saga, wira, etc.
In recent years the company has being reported to face a number of challenges and problems some of which include the loss of its position as the no one car sales company in Malaysia to Perodua, low quality, and loss of confidence in its confidence.
2 PROTON SITUATION ANALYSIS
An evaluation of the internal and external environment in building strategy for proton
2.1 Internal analysis
It is an analysis of those things that can be adjusted by company in order to meet the external requirement.
COMPONENTS STRENGTHS WEAKNESSES
MANAGEMENT Experienced management team and commitment as indigenes of Malaysia. Innovative and risk taking. Loss of confidence by the public as a result of poor models in the past.
PRODUCTS AND MARKETING Large line up of models allowing public to have varying choices and adequate product representation. New product models for the company. New products and technological development by competitors such as Honda, Toyota, perodua, etc.
STAFF AND EMPLOYEES Training and empowerment of staff in order to build dedication to company. Involvement of staff as team members of the company Loss of trained staff to competitors.
FINANCE The support of government plus financial stimulant given to the company creates a financially astute company Possibility of over exuberant and careless spending in order to compete in the industry
RESEARCH AND DEVELOPMENT Continuous search for new technology and development of new products or strategy. Concentration of development of new technology and products.
2.2 External analysis
The external analysis involves the an evaluation of the factors that affect proton without its ability to adjust or change them
FACTORS OPPORTUNTIES THREAT
LEGAL/POLITICS As a government owned company proton stands to enjoy government policies that protects indigenous organizations. Inconsistency in government policies and constant change in government
SOCIAL Large potential market and continuous growth in possible market segments and region Same market and segment target as competitors.
TECHNOLOGY Existing facilities, infrastructures and technology that continuously support product delivery of proton New technology by competitors may ruin the company’s prospects
ECONOMIC Stable economy and financial capability of the population Availability of choice to the population
COMPETITIVE The leader and pioneer of the automotive market in the country with financial support by petronas and government. Entry opportunity for bigger car companies and competition by perodua. Availability of substitutes, the power possessed by the buyers as well as the intensity of rivalry in the industry.
3 ADOPTED STRATEGIES
The adopted strategy by Proton is important for analysis as we are able to identify the flaws that may be present in the flaws and the resulting financial and operational performance.
3.1 Corporate strategy
Research show that the...