INDIVIDUAL ASSIGNMENT
BM045-3-3-SMGT
STRATEGIC MANAGEMENT
APD3F2103IBM/ UC3F2103IBM
HAND OUT DATE : 15 JUNE 2021
NAME: Salman Al farisi
TP Number: TP053999
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Contents
Introduction.................................................................................................................................................3
Vision and mission......................................................................................................................................3
External Environment Analysis- PESTLE...................................................................................................3
Political...................................................................................................................................................3
Economic.................................................................................................................................................4
Social.......................................................................................................................................................4
Technological..........................................................................................................................................4
Legal........................................................................................................................................................4
Environmental.........................................................................................................................................5
Internal Environment Analysis....................................................................................................................5
Strengths..................................................................................................................................................5
Weaknesses.............................................................................................................................................5
Opportunities...........................................................................................................................................5
Threats.....................................................................................................................................................6
TOWS Matrix of proton..............................................................................................................................6
Recommended Strategies............................................................................................................................7
Reference.....................................................................................................................................................8
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Introduction
The main primary goals of the establishment of Perusahaan Otomobil Nasional Berhad
(PROTON) has been to elevate Malaysia into the twenty-first century as an industrialized nation,
where even the purchase of tech capabilities, understand exactly, and competence would aid the
country in achieving both short- and long-term strategic goals. PROTON's aims, as a key
component of Malaysia's Industrial Master Plan (IMP), also include development of sustainable
research and development programs, entire globe design and processing standards, delivery
capabilities, and an international market position. This continual method is used to improve, and
worldwide competition has resulted under one of Malaysia's largest groups of skilled and
talented engineers, some of whom are experts in a variety of fields, like automobile, materials,
and engineering design. The leading automobile project has had a considerable impact on the
automobile industry by utilizing PROTON's resources, technology, innovations, labor, and
design capabilities, which were either made accessible to or fostered by PROTON. PROTON's
money invested in trying to develop attention to the research, which contains the expert
knowledge of PROTON's wholly owned corporation Lotus Engineering UK, one of several
world's leading automotive structural engineering companies, had also supplied the domestic
automaker with an incredible tool that has helped propel it to the top of the movement.
(PROTON Holdings Berhad - Introduction, 2021)
Vision and mission
PROTON's vision is to be "the world's leading provider of sustainable mobility." PROTON's
core mission is to "constantly develop innovative methods, products, and solutions that capture
people's hearts and minds." (Proton Holdings Berhad Company Vision & Mission Critique Free
Essay Example, 2021)
External Environment Analysis- PESTLE
Political
The Malaysian government has indeed been obliged to intervene to safeguard its two national
brands of cars built in Malaysia as a result of the ASEAN Trade Agreement Agreement
(Abhijeet 2019). When contrasted to many other foreign companies such as Toyota and Nissan,
Proton vehicles are more expensive. (Abhijeet 2019) To prevent the country from being
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overwhelmed with foreign vehicles, the government has indeed been obliged to raise auto import
duties, putting the global trade accords at risk. (Proton Holdings Berhad Company Vision &
Mission Critique Free Essay Example, 2021)
Economic
Buying a new car is considered a luxury item by most people of all economic backgrounds.
(Abhijeet, 2019) This is due to the fact that the ordinary person must have sufficient
discretionary income to purchase a new vehicle. Sales volume has been low as a result of rising
inflation, unemployment, and economic disparities between the top and lower classes. The
ordinary Malaysian can only afford one car every ten years (Abhijeet, 2019), indicating that
repeat sales are equally minimal.
Social
In Malaysia, the rise in population is a positive element that leads to an increase in car purchases.
Malaysia's population was 27.5 million in 2008, resulting in a car purchase rate of 1:5 per
household. (Abhijeet, 2019) Shifts in consumer behavior, such as certain tastes, cultural
adaptations, or national identity concerns, have also aided sales growth. Malaysians are
passionate of their country's products; hence they prefer domestically produced vehicles to
foreign vehicles. (Proton Holdings Berhad Company Vision & Mission Critique Free Essay
Example, 2021)
Technological
The company has been impacted by rapid changes in automobile production technologies.
Production prices have increased as a result of the high purchase price, licensing, and upkeep of
the high-quality technology utilised. These costs must either be translated backwards via the
production process or be reflected in the final cost, making buying expenses extremely
expensive. (Proton Holdings Berhad Company Vision & Mission Critique Free Essay Example,
2021)
Legal
In order to manufacture its car, the company has struggled to gain patentable technologies. The
multiple antitrust restrictions that hamper the automobile manufacturing sector have exacerbated
this unequal balance of trade. (Abhijeet, 2019) Consumer rights rules in several of the
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international nations where the corporation wishes to expand its sales are likewise extremely
strict. As a result of violating the law in various Asian nations, such as Japan, the corporation has
faced multiple court actions. (Abhijeet, 2019)
Environmental
The push for the usage of "green renewable energy" is placed pressure on businesses to follow
suit. This is due in part to multiple legal fines the corporation has got as a result of environmental
degradation or disposal of waste. (Abhijeet, 2019) Due to the Malaysian government's severe
environmental protection laws, maintaining the ISO 14001:2015 accreditation for the company
has also been difficult. (Abhijeet, 2019)
Internal Environment Analysis
Strengths
The Proton Company is Malaysia's largest automotive manufacturer. As a result, the brand has a
great brand and a long list of loyal customers who've already trusted this for almost 34 years.
(Bakeen 2019) In addition, the firm utilizes cutting-edge technology to power its cars, ensuring
that they are genuine and of high quality. Customers have felt valued for the money in the
process of this, particularly since the company caters to just the middle class. (Bakeen, 2019)
Furthermore, the company's products are widely available, resulting in significant sales,
particularly in Malaysia.
Weaknesses
This company offers a restricted range of products. The company now offers only eight models,
making it difficult to compete with big manufacturers such as Toyota. This is made more
difficult by the fact that the pricing of the cars are nearly identical. In addition, the corporation is
less exposed to the worldwide market. The corporation has yet to enter worldwide markets such
as Asia, the United States, and Europe. (Bakeen, 2019)
Opportunities
The corporation must introduce high-end vehicles aimed at the higher echelon of society. This
will also assist them diversify their product line and catalogue, as well as develop into new
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markets. Because the globe is evolving toward green energy, the corporation can succeed by
providing hybrid electric automobiles (Yujier 2019). But Malaysian government is in favor of it,
as well as the corporation must take full advantage of it (Punier 2019).
Threats
Competition from heavyweights like Toyota in Japan and Volkswagen in Europe is indeed the
corporation's biggest danger. (Yujier, 2019) The company's constant requests to grow to other
nations, particularly in Africa, were thwarted by low-cost cars from Toyota and Nissan. This
company also is suffering from the impacts of inflation, that has caused fuel prices to jump,
lowering purchasing power, particularly among the intended middle-class segment of the market.
(Yujier, 2019)
TOWS Matrix of proton
Strength Weakness
1. A well-known brand 1. A Product Offerings with
2. Global Distribution Less Variety
System 2. Global Market Exposure is
3. Network of Strong Limited
Partnerships 3. Concerns about the
4. Government Assistance product's quality
5. Automotive Industry 4. Excessive reliance on the
Expert for a Long Time local market
Opportunities SO strategies WO strategies
1. Excessive car tariffs 1. Incorporate information 1. Promotional actions in
2. Agreement on Foreign Trade management into your overseas markets that are
3. Increased Demand for Electric company's operations. (S4, aggressive. (W2, W4, O2)
Vehicles S5, O4) 2. Increased R&D to enhance
4. Industrial Revolution 4.0 2. Intensify promotional quality of the product. (W1,
efforts in the local market. W3, O3, O4)
(S1, S4, S5, O1)
3. Extend corporate
operations to other ASEAN
nations. (S1, S2, S3, O2)
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Threats ST strategies WT strategies
1. Industrial Growth Is Slow 1. Enter into a partnership in 1. Create a new range of low-
2. Instability in the political system a new international market cost automobiles. (W1, T1,
3. Rivalry that already exists with such a foreign vehicle T3, T4, T5)
4. Substitutes as a Threat brand. (S2, S3, T1, T2, T4, 2. Reduce car pricing to meet
5. Demographic Growth Is Slow T6) the buying power of local
2. Re-distribute products in a customers. (W4, T1, T3, T4,
foreign country. T5)
(S2, S3, T1, T2, T3, T6)
Recommended Strategies
I've come to the following conclusions based on the findings of my investigation. suggestions for
the company, including detailed strategy for approaching a Indian passenger automobile market
and, more specifically, to be competitive worldwide. Proton should focus on the Ans off matrix
Market share in order to gain market share, i.e. in Malaysia and existing markets.
(Recommendations, 2021)
Market development is looking for new markets for a current product, including such going to
India; and Research and development entails ensuring that pressure area and customers' new
needs have been met by developing new products and services.
Proton should concentrate on styling and technology, which are its shortcomings, now that it has
access to Lotus' engineering expertise. "Security" and "environmental friendliness" will, in my
opinion, be the most critical issues in the future. Work on developing a "reliable" first "all
Malaysian" vehicle. It should also make inroads into the fast-growing small vehicle and SUV
markets. (Recommendations, 2021)
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Reference
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<http://www.protontr.com/product/Corporate/About-Proton/PROTON-R-D/Introduction.html>
[Accessed 15 June 2021].
StudyMoose. 2021. Proton Holdings Berhad Company Vision & Mission Critique Free Essay
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%20%26%20minds%E2%80%9D.&text=The%20word%20%E2%80%9CGlobal%E2%80%9D
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Abhijeet, S. (2019). Pest Analysis on Proton | Management Paradise. [Online]
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Bakeen, B. (2019). Proton Holdings Berhad - Strategic SWOT Analysis Review. [Online] Bharat
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Yujier, G. (2019). Proton Holdings Berhad (PROTON) - Financial and Strategic SWOT Analysis
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http://www.hintoninfo.com/EN/ugC_MTIProduct_Detail.asp?
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INTERGRATED MARKETING COMMUNICATIONS PLAN FOR PROTON X50 SUV Student\u2019s
Name Code | Course Hero. [online] Available at:
<https://www.coursehero.com/u/file/50549341/Internal-environment-analysis-1docx/#question>
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Chowdhury, O. (2019, December 4). What is TOWS Matrix? And how it is used. Retrieved 5 December,
2020, from https://tradebrains.in/towsmatrix/#:~:text=TOWS%20Matrix%20can%20be%20interpreted,%2C
%20Opportunities%2C%20Weaknesses%2C%20Strength.
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https://www2.deloitte.com/uk/en/insights/focus/futureof-mobility/electric-vehicle-trends-2030.html
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