Professional Documents
Culture Documents
STRATEGIC MANAGEMENT
MGB 4013
GROUP AASIGNMENT:
DUTCH LADY COMPANY
PREPARED BY: TMC 2
MEMBERS:
SITI ZAINAB BT MOHD ADAM
1121106
1121112
1121114
1122333
1122337
PREPARED FOR:
LECTURER NAME: MADAM SITI NURULHUDA BT NORDIN
DATE OF SUBMISSION:
8TH DECEMBER 2014
TABLE CONTENTS
NO
1
2
3
4
5
TABLE CONTENTS
COMPANY PROFILE
BACKGROUND OF DUTCH LADY
TOWS ANALYSIS
THE INTERNAL-EXTERNAL (IE)
MATRIX
INTERNAL FACTOR
PAGES
3-4 afiqah
5-7 nik
8-11 afiqah
12-13
14-15 afiqah
EXTERNAL FACTOR
16-17
8
9
10
OF DUTCH LADY
SPACE MATRIX
Product life cycle
STRATEGIC PLANNING PROCESS
19-26
nik
27-32 nik
11
33-35
12
13
14
15
36-38 zaty
zaty
39 zaty
40
18
1. COMPANY PROFILE
Dutch Lady Milk Industries Berhad ("Dutch Lady Malaysia") is a leader in the
quality branded dairy business in Malaysia. It was incorporated in 1963, and was the
first milk company in Malaysia to be listed on Bursa Malaysia, the local Stock
Exchange in 1968. Its holding company is Royal FrieslandCampina, a Dutch
2
multinational corporation and one of the largest milk companies in the world.
Permodalan Nasional Berhad is the second largest shareholder in the Company.
Dutch Lady Malaysia manufactures and sells a wide range of quality dairy
products and fruit juices for the home and export market such as Infant Formula,
Growing-up Milk, Powdered Milk, Condensed Milk, UHT Milk, Sterilised Milk,
Pasteurised Milk, Cultured Milk, Yoghurt and Fruit Juice Drinks. The Company's dairy
products have a strong consumer following and are represented by strong brands
such as Dutch Lady, Frisolac, Friso, Completa, Omela and Joy.
The Company believes in product innovation and is well supported by its
holding company, Royal FrieslandCampina. The Company constantly strives to
improve its processes in order to deliver nutritious products of high quality to its
consumers. It was the first company in the world to introduce a growing up milk
powder specifically formulated for children from ages one to three. These products
are currently marketed in Malaysia as Dutch Lady 123 and Dutch Lady 456.
Besides supporting local industries by using substantial amount of local
ingredients in its products, Dutch Lady Malaysia is also the largest purchaser of local
fresh milk from the Veterinary Services Department. This is done via the Companys
Dairy Development Programmed, carried out in collaboration with the DVS with the
assistance of the Netherlands Embassy.
The quality of the Company's products is paramount. Quality Control and
Quality Assurance are prime considerations. In line with this, the Company has
continually been accredited with ISO 9001 certification since 1995. Strong emphasis
is also placed on food safety with HACCP (Hazard Analysis Critical Control Point)
System covering all its plants. In addition, the Company also has in place ISO 14001
Environment Management System and OHSAS 18001 (Occupational Health and
Safety Assessment Series). The Companys products are all halal-certified.
Dutch Lady Malaysias annual revenue in 2009 is RM692 million. The
Companys factory is located in Petaling Jaya and it employs 600 Malaysians.
Currently, Dutch Lady Malaysia is the market leader in key milk categories such as
UHT milk, Sterilised milk and Growing-Up Milk.
After World War II, sweetened condensed milk imported wholesale from its parent
company in Holland via local importers and wholesalers.
1954 : A trading company Friesland 9malaya) Pte Ltd, based in Singapore, was
formed to market Sweetened condensed milk imported from Holland in Malaysia
and Singapore, among several brands was a certain Dutch Baby Brand.
60s
1963: Pacific Milk Industries (Malaya) Sdn Bhd was interoperated in Malaysia with
the commissioning of a sweetened condensed milk factory in Petaling Jaya. The
present site is the first overseas production facility of the parent company.
1965:
condensed milk.
1968:
Pacific Milk Industry (Malaya) was converted into public company and
became the first milk company to be list on the stock Exchanges of Kuala Lumpur
and Singapore.
70s
1975: The name of the company was changed from Public Milk Industries (Malaya)
Berhad to avoid confusion in the trade and marketplace surrounding the name of
the Company and its main product: Dutch Lady Sweetened Condensed Milk.
-
1979: A fruit ice drink under JOY brand name was introduced.
80s
5
1983:
1984:
The brand was change from Dutch baby to Dutch Lady for product
positioning reasons.
1985:
business grew.
1987: The Company underwent an equity restructuring exercise to comply with the
Governments New Economic Policy.
million.
1988:
1989:
Lumpur Stock Exchange, the Company delisted its shares from the
Stock
Exchanged of Singapore.
90s
A new warehouse was built to accommodate the company s growing
1994:
Dutch Lady received the Readers Digest Super Brands Gold Award for
2000s
2000
Dutch Lady received its second Readers Digest Super Brands Gold Award
The Company changed its name from Dutch Baby Milk Industries (Malaya)
Berhad to Dutch Lady Milk Industries Berhad, to be in line with its main brand
Dutch Lady with a new commitment Goodness for Life.
2001:
Dutch Lady received its third Readers Digest Super Brands Gold Award for
and children.
:
(Hazard Analysis and Critical Control Point) - System Hazard Analysis and Critical
Control Point Dutch Lady awarded the Reader's Digest SuperBrand fifth Gold Award
because selected as the preferred brand of dairy products in Malaysia.
2004 : Nutrition for intelligence. - Dutch Lady brand image and packaging change
with the new corporate tagline "Get Ready for Life!" - Dutch Lady received the sixth
Reader's Digest Super Brand Gold Award be selected as the preferred brand of dairy
products in Malaysia.
2005 : Sweetened Condensed Milk Factory Dutch Lady received recognition HACCP
Certificate (Hazard Analysis and Critical Control Point)
: Systems Analysis Critical Control Point.
:
Dutch Lady received the award for the seventh Reader's Digest Gold
Award Super Brand selected as the preferred brand of dairy products in
Malaysia.
:
Dutch Lady Milk Industries Berhad is a Productivity Award winner in 2004,
which was recognized by the National Productivity Corporation in category
companies with a turnover of RM100 million and above.
2006 :
Dutch Lady has donated various products worth RM70, 000 Deputy Prime
Dutch Lady Milk Industries has donated various products Dutch Lady
which the value is RM115, 000 through the Ministry of Health to flood victims
in Johor. Dutch Lady has given the Chairman of the Education Excellence
Award 31 children in its people.
7
Dutch Lady Malaysia forge one more brilliance on the system of certification
3. TOWS ANALYSIS
STRENGHT(S)
OPPORTUNITIES (O)
Easy to existence
in the market.
High demand in
the market.
Expert in an
innovation.
High customer
loyalty
Get the
awareness from
customer
Healthy
campaign by the
government.
THREAT(T)
WEAKNESSES(W)
Dutch Lady just
produces the milk
from cow milk.
Not produce milk for
the old folks.
Have high contain of
sugar
Rarely change their
packaging.
.
SO
Expand market to
international level.
Widen accessibility
of products via
online market.
Variety style of
products line.
ST
WO
WT
8
Many existence
competitors.
Many product
substitutions
Rapidly change in
tastes and
preferences of
customer.
Competitors price
Probability of
cows attack by
virus
Keep
maintain
the
quality of the milk and
maintain high quality
branded dairy business.
Make a new flavors of
the milk
Make a difference of
the milk and compete
to other competitors
Improve the
packaging with latest
design.
Malaysia.
Dutch
Lady Milk
Industries Berhad
(Dutch
Lady Malaysia)
is a
manufacturer of dairy products in Malaysia since the 1950s. Besides that, their also
have the highest in market share. Basically, market leader and market share have a
good related between each other. Good profit stability gives the meaning which
their achievement of profit always increases in the ranking. Export widely. Dutch
Lady Company produce their milk as a globally to the customer and also deliver
good nutritious product.
Besides, the milk is very healthy and suitable for the people. Dutch Lady
Company also has halal certification. The milk is priorities, and also has a halal
certificate. Consumer will using is confidently because of the halal labeling at the
Dutch Lady packaging can showing clear n obviously. Last but not least, the Dutch
Lady Strengths is high quality of the milk. That means, taste of the milk is a similar
at each that produces. The milk is genuine from fresh cows milk. Dutch Lady Milk
also has variety of flavors. For example of their flavors is chocolate, strawberry, low
fat, full cream, coffees. Their also have for powder milk which is vanilla and honey
that suitable for infants.
Weaknesses in Dutch Lady are first of all, they are just produce the milk from
genuine cow milk. That means, Dutch Lady not take another source of milk, focus
on cow milk. Not all people or customer can acceptance the cow milk as their
drinking because nowadays, have many type of milk and so variety. Might be also,
the cow milk is not suitable to certain customer that not flavor on it. Besides that,
their also not produce the milk for old folks. So, it is difficult to their get a customer
loyalty if they just focus on the ages for among children and adult also workers but
not the old folks. Because mostly, that old folks need the milk suitable for them in
their area of age to help them and give an extra energy and be health. Have high
contain of sugar in Dutch Lady Milk. That can prove by the customer testimonial.
Dutch Lady Company also rarely changes their packaging.
Opportunities in Dutch Lady are to maintain in the market. It is because,
Dutch Lady is already the market leader and the highest market shares in the
market. Other than that, Dutch Lady Milk also gets high demand in the market. So
the company will produce more the milk to fulfill the customer satisfaction.
10
Therefore, Dutch lady also experts do the innovation. Dutch Lady Company makes
an innovation in term of the packaging and labeling. The last opportunity that Dutch
Lady has which is high customer loyalty. Customer is already aware about the milk
and makes them to be loyal to that milk.
Besides, Dutch lady Company already gets the highest awareness from
customers. They held its first election as a part of the celebration of World Milk Day.
They also ran Dutch Lady Kid and Dutch Lady School campaign and involved in
government program which is Program Susu 1Malaysia.
For the threats, Dutch Lady Company are facing such have many existence
competitor. That means, there are many of company that produce milk with the
same like a Dutch Lady already produce. Thats can called as a copy right because
in term of their variety of flavor and taste is homogenous. Probability for customer
chooses another brand of milk also can be happened. Besides that, there are many
product substitutions in the market. It is because of Dutch Lady Milk just produce
milk from fresh cow milk and others company not produce milk from cow milk. For
those who are not drink cow milk they must to buy milk. So, it does will be
decreasing the Dutch Lady profit. Rapidly change in tastes and preferences of
customer.
Usually customer easy to feel bored, so their will make the variety of taste and
preferences based on want they want and like. Next threat is competitors price. As
we know, there are many of milk is cheaper rather than Dutch Lady Brand. Last but
not least, the threat for Dutch Lady Company is probabilities of cows attack by virus
are very high. Nowadays, there are many viruses that usually attack not only at the
people but also will be attack to the animal. It is very risk for the Dutch Lady if the
cows are also attack by the virus. It is because, the cows is the main sources of the
milk for the Dutch Lady Company.
11
Besides that, The EFE matrix score is plotted on the y-axis. While, the IFE
matrix score is plotted on the x-axis.The IE matrix works in a way that you plot the
total weighted score from the EFE matrix on the y axis and draw a horizontal line
across the plane. Then you take the score calculated in the IFE matrix, plot it on the
x axis, and draw a vertical line across the plane. The point where your horizontal
line meets your vertical line is the determinant of your strategy. This point shows
the strategy that company should follow.
The IE matrix can be divided into three major regions that have different
strategy implications. Firstly, the prescription for divisions that fall into cells I, II,
and III suggest the grow and build strategy. This means intensive and aggressive
tactical
strategies.
This
strategies
focus
on
market
penetration,
market
3. Focuses on the key internal and external factors. Unlike some other
analyses (e.g. value chain analysis, which identifies all the activities in the
companys value chain, despite their importance), the IFE and EFE only
highlight the key factors that are affecting a company or its strategy.
4. Multi-purpose. The tools can be used to build SWOT analysis, IE matrix, GEMcKinsey matrix or for benchmarking.
relationships among those areas. The Internal Factor Evaluation matrix or short IFE
matrix is used in strategy formulation.The IFE Matrix together with the EFE matrix is
a strategy-formulation tool that can be utilized to evaluate how a company is
performing in regards to identified internal strengths and weaknesses of a company.
The IFE matrix method conceptually relates to the Balanced Scorecard method in
some aspects.
IFE matrix can be constructed by following those five steps:(1) Construct a
list of key factors, determining the success of the organisation's activities. Use
10~20 internal factors, separated between strengths and weaknesses. Be as
specific as possible, using percentages, ratios and comparative figures.(2) For each
factor, determine Weight in the numerical range, from 0 (not important) to 1
(very important). The sum of all weights must be 1! Weight marks the relative effect
of each factor to influence the success or failure of the enterprise in the industry. (3)
Assign for each factor a score. An important weakness is represented by 1, 2 for
minor weakness, 3 for minor advantage, important advantages are represented by a
score of 4. Notably, the score of advantage must be 4 or 3, the score of weakness
must be 1 or 2. The score is specific to the company, while the weights are based on
industry benchmarks.(4) Multiply the weight of each factor by its score, to
obtain the weighted score of each factor.(5) Sum the weighted scores of all the
factors, to get the total weighted score of enterprises.
As the IFE matrix contains many factors, the total weighted score range is
from the lowest 1 to the top 4, the average score being 2.5. Total weighted score
significantly lower than the 2.5 of enterprise's signalls that the internal situation is
weak, while the score much higher than 2.5 of the enterprise's internal situation is
strong.
STRENGTHS
RATING
(1-4)
WEIGHTE
D
WEIGHTE
D SCORE
0.09
0.27
4
3
3
3
4
3
2
0.1
0.08
0.08
0.08
0.1
0.08
0.07
0.4
0.24
0.24
0.24
0.4
0.24
0.14
WEAKNESSES
RATING
WEIGHTE
D
0.09
WEIGHTED
SCORE
0.27
3
3
1
0.09
0.08
0.06
0.27
0.24
0.06
TOTAL
35
1.0
3.01
EXPLANATION
The diagram was show the internal factor evaluation, that the strengths are more
higher than the weaknesses of the Dutch Lady Company. The highest scale that we
put at the strengths is 4 which is Dutch Lady have the highest market share
because Dutch Lady is the market leader. Second is the entire product of Dutch
Lady having Halal certificate from JAKIM. The lowest scale which is 1 for weaknesses
is rarely changing their packaging.
16
17
RATING
(1-4)
4
WEIGTHE
D
0.1
WEIGHTED
SCORE
0.4
3
2
3
4
0.09
0.07
0.08
0.1
0.27
0.14
0.24
0.4
0.1
0.4
RATING
(1-4)
4
3
2
WEIGHTE
D
0.1
0.09
0.08
WEIGHTED
SCORE
0.4
0.27
0.16
4
3
36
0.1
0.09
1.0
0.4
0.27
2.95
EXPLANATION
The diagram was show the external factor evaluation, that the opportunities
are more than the threats of the Dutch Lady Company. There are six opportunities
that we state for the Dutch Lady. We put rate 4 which is the highest rate for the
opportunities for the Dutch Lady is easy to maintain in the market because Dutch
lady have high market share leader in the growing up of milk segment. Next, the
opportunity is get the highest awareness from customers because Dutch Lady
involve in government program.
the Healthy campaign that implement by the government because the mission of
Dutch Lady Malaysia is to help Malaysia move forward in life with a reliable dairy
18
nutrition. Besides, for the threat Dutch Lady Company, we put 4 scale rates for
threat that Dutch Lady has many existence competitors because there are many of
company that produce milk with the same like a Dutch Lady already produce. Next
the highest rate scale threat is competitors price. As we know, there are many of
milk is cheaper rather than Dutch Lady Brand
Weigh
t
Advertising
DUTCH LADY
MARIGOLD
Rating
Score
Rating
Score
Rating
Score
0.1
0.4
0.3
0.1
0.1
0.4
0.4
0.3
0.1
0.4
0.4
0.4
Management
0.1
0.3
0.3
0.3
Financial
position
0.2
0.8
0.6
0.4
Consumer
Loyalty
0.2
0.8
0.6
0.4
Market Share
0.1
0.4
0.3
0.3
Total
1.00
27
3.5
23
2.50
18
22
Product
Quality
Prices
competitiven
ess
SCALE
1Major Weakness
2-Minor Weakness
3-Minor Strength
4-Major Strength
19
8. SPACE MATRIK
Definition
The SPACE matrix is a management tool used to analyze a company. It is
used to determine what type of a strategy a company should undertake. The
Strategic Position & Action Evaluation matrix or short a SPACE matrix is a strategic
management tool that focuses on strategy formulation especially as related to the
competitive position of an organization. The SPACE matrix can be used as a basis for
other analyses, such as the SWOT analysis, BCG matrix model, industry analysis, or
assessing strategic alternatives (IE matrix). The SPACE matrix is just a little bit more
complex than the SWOT analysis. The SPACE matrix evaluates different variables
and assigns them a score considering how important they are for the situation of
the company. It analyzes four different areas (two internal to the company and two
external) that will represent four quadrants in a graphic.
The SPACE matrix is broken down to four quadrants where each quadrant
suggests a different type or a nature of a strategy which is aggressive,
conservative, defensive or competitive. Besides that, the SPACE Matrix analysis
functions upon two internal and two external strategic dimensions in order to
determine the organization's strategic posture in the industry.
The internal strategic dimensions represented by the financial strength
(FS) and the competitive advantage (CA); and the external strategic dimensions
represented by the environmental stability (ES) and the industry strength (IS). There
are many SPACE matrix factors under the internal strategic dimension. These
factors analyze a business internal strategic position. The financial strength factors
often come from company accounting. These SPACE matrix factors can include for
example return on investment, leverage, turnover, liquidity, working capital, cash
flow, and others. Competitive advantage factors include for example the speed of
20
22
III
I
3
2.95
EFE final score
II
V
IV
VI
VII
VII
IX
23
Based on the space matrix that is show in the diagram we can see that Dutch Lady
Company is on the I, II, IV build and growth strategy. In this case, the Dutch Lady Company
tactical strategies should focus on market penetration and product development. Base on the
SWOT we conclude that the Dutch Lady Malaysia as the market share leader in the growing up
milk segment. It can be proved with the Dutch Lady brand holding 40% of national market
share. Dutch Lady was the first Malaysian dairy company to use Ultra-High Temperature (UHT)
processing and packaging to produce and market milk in this country.
Then the Company continued to progressively manufacture and introduce new products
into the Malaysian market which is sterilized milk were locally produced and sold in plastic
bottles in 1983. They also provide production of chilled milk products started in 1986, and fruit
yoghurt and growing up milk were introduced into the market in 1988.
Dutch Lady Malaysia was the first company in the world to introduce growing up milk
products for children up to six years old. Dutch Lady Malaysia already develops their product
because they have different types of dairy products suitable for both children and adults. It
started with the production of a single product which is sweetened condensed milk and has
since expanded to a full range of dairy products locally manufactured in its factory. Its current
products include products for infants, growing up milk, UHT milk, pasteurized milk, sterilized
milk, family powdered milk, low fat and 0% fat drinking yoghurt, and low fat yoghurt.
24
SCALE:
-7 (WORSE), 7(BEST)
EXTERNAL POSITION
STABILITY POSITION (SP)
FEATURES
RATING
Technology changes
-1
Inflation
-3
Competitors Price
-6
-1
-3
Risk
-4
Total
-18
CALCULATION:
-18/6: -3
INDUSTRIAL POSITION (IP)
FEATURES
RATING
Growth potential
Profit potential
25
Financial Potential
Productivity
Capacity Utilization
Total
32
CALCULATION
32/6: 5.33
INTERNAL POSITION
CP (COMPETITIVE POSITION)
FEATURES
RATING
Market share
-2
Product quality
-1
Customer loyalty
-1
-2
-2
-2
Total
CALCULATION
-10
-10/6: -1.667
FS ( FINANCIAL POSITION)
FEATURES
RATING
Return on Investment
Cash Flow
Inventory Turnover
Working Capital
6
26
Total
20
CALCULATION
20/4: 5
OVERALL
CP+IP = (-1.667 +5.33) = 3.663
SP+FS = (-3+5) =2
EXPLANATION
As we know, the aggressive quadrant lies in between the financial strength
axis with that of the industrial attractiveness. Here, all the four dimensions of the
axes are showing high scores. If readers are aware, high scores of both CA and IA
27
will push the average to the right of the x axis while high scores on both FS and ES
will push the average of the y axis toward the top. With all the scores being positive
then the company is supposed to be in a comfortable position and therefore, an
aggressive strategy is appropriate. An aggressive strategy would treat growth and
expansion of high priority. This will also the require the drive to get more market
share and new markets. We can approve that Dutch Lady Company is suitable to be
in the aggressive quadrant because they already have the highest market share and
they have high opportunity to get more market share and new markets in the
market. At the same time they are also in a comfortable position in the market. It is
because, they already be the market leader and have many customer that are very
loyal to them. Besides, customer also aware about their product because Dutch
Lady Company is good in implement their advertising. For example, they have many
type of advertising such as through the internet, television and also the newspaper.
28
milk formula, powdered milk, condensed milk, UHT milk, sterilised milk, Pasteurized
Milk, Cultured Milk, Yogurt and also fruit juice drinks.
The Five Forces Model of Michael Porter comprises and analysis or
understanding the nature of the competitive environment. They can ensure that
management considers a wide range of potential impacts when devising strategy. In
addition, Porters five forces also help to develop effective strategies to raise
profitability, power and competitive position in industry.
Porters five forces is divided into threats posed by new entrants, bargaining
power of suppliers, bargaining power of buyers, substitute products and intensity of
rivalry among competitors. These are also one most widely used and best known
conceptual framework to assess the nature of the industry environment. The
strength of the five forces determines of profit potential of an industry by
influencing the price, cost and required investments of business.
29
Apart from this, Marigold Sdn Bhd focused on the produce nutritious products.
The company was trying to provide consumers with healthy products to enhance
quality of life. Company threat is more difficult to control, because Dutch Lady
Management need to concentrate on changing buyers preference and also
maximize the shareholders wealth.
30
31
increases even though the price of product changes at the certain time or place. But
it will not cause loyal customer to change mind and buy another product.
SUBSTITUTE PRODUCTS
Porters five forces have include the threat of substitute product which is other
firms has offers similar product with similar benefits for the customer. This threat
may effects the competitive environment of the company and influence ability to
achieve profitability.
Buyers always have different choice for their beverage and dairy product. So,
there is risk on switching cost for buyers. Potential buyer comes with different based
on taste, customer behavior and preference. They would be change every day
because they will purchase the product that they prefer to buy.
In general substitute products come from one business then replaced with
another product but still produce in product line market. Besides that, Dutch Lady
Berhad was the first in the world company recommend a growing up milk formula
powder specifically for children from ages one to three years old. These products
are available now in Malaysia as Dutch Lady 123 and Dutch Lady 456 and Dutch
Lady 6- plus.
Dutch Lady Milk Industry Berhad always had an innovative approach towards
their product portfolio. So, the company comes up with a new type product every
four or five years. Whenever an opportunity is seen in the market, Dutch Lady
Company were grab it and the management creates a product diversification.
The Dutch Lady company continue progressively manufacture and introduce
new product into Malaysian market for those who did not drink milk directly or
allergic with fresh milk. So company tries to produce calcium snack for customer. It
may help customer to take their nutrition and protein from milk. It were come with
various type of flavor and size and also available for certain age. This is the fact that
comparison usage with previous milk powder formulation.
32
In addition, to make the product aware and known by consumer, some product
were distributed surrounding in market or do advertisement awareness and make as
a sponsorship for event or games. But, there are some opportunities that company
take over which is they are distribute the milk product among the primary school,
and the product are given to student every week. So people might know about the
product and continue loyal with Dutch Lady Brand.
The another way to make customer aware and realize about the Dutch Lady
product is together bringing Malaysians to participate in the annual World Milk Day
celebrations initiated by Food and Agriculture Organization of the United Nations.
The objective of the celebration is to contribution the important to take care of
healthy in the first step by citizens.
Threat of substitute products is the existing problem in business, and the
company solves with good solution make or produces some other product that can
give same functions or same benefits. The product must be totally different and
unique from the competitor product.
A multinational produces with nutritious and high-quality dairy products, new
taste flavor, health fresh milk, and convenience on Halal certificates and also
hygiene milk and reliability are key of characteristic best product to customer. It will
fulfill customer desire, needs, satisfaction and repeat purchase.
The product range consists of consumer for example, milk in powder and
concentrated form, dairy drinks, yogurts, desserts powder, cream, coffee creamers,
baby milk and infant food, cheese and butter. However, Dutch Lady HL Milk is lowfat milk that has perfect balance of nutrients for everyone in family members and it
consistent high calcium and protein. Dutch Lady is first choice for the customers
who caring for their health conscious.
The company trusts in product innovation and its holding company, Royal
Friesland Campina supported this act. The company continuously improves its
processes to provide high quality and nutritious products to its customers.
33
34
market but the Dutch Lady Company has done a lot of promotion and activities to
gain more than half of the market share.
10.
(QSPM)
Key Factor
Weig
ht
OpportunitIies
a) Make a new
flavors of the milk
0.1
Total
Attractivene
ss score
0.3
market.
2. High demand
0.09
0.27
0.27
in the market.
3. Expert in an
0.07
0.14
0.14
innovation.
4. High customer
0.08
0.24
0.24
0.1
0.3
0.3
0.1
0.4
0.4
1. Easy
Attractivene
ss score
to
Attractivene
ss score
3
Total
Attractivene
ss score
0.3
maintain in the
loyalty
5. Get
the
highest
awareness
from
customers
6. Healthy
campaign
by
the
government
35
Threats
Attractivene
ss score
Total
Attractivene
ss score
Attractivene
ss score
Total
Attractivene
ss score
0.1
0.3
0.4
competitors.
2. Many product
0.09
0.27
0.36
substitutions
3. Rapidly
0.08
0.24
0.1
0.4
0.4
0.09
0.27
0.27
Attractivene
ss score
Total
Attractivene
ss score
Attractivene
ss score
Total
Attractivene
ss score
1. Many
existence
change
tastes
in
and
preferences of
customer.
4. Competitors
price
5. Probability of
cows attack by
virus
Strengths
1. Market leader
0.09
0.1
share
3. Good profit
0.08
0.08
0.08
stability.
4. Export widely.
5. Get
the
0.08
0.08
1
3
0.08
0.24
1
2
0.08
0.16
in the high
quality
branded dairy
business in
Malaysia.
2. Have
the
highest market
highest
awareness
from
36
customers
6. All have halal
0.1
0.4
0.4
certificate.
7. High quality of
0.08
0.24
0.24
the milk.
8. Variety
0.07
Attractivene
ss score
3
Total
Attractivene
ss score
0.27
of
flavors
Weaknesses
1. Dutch Lady
Attractivene
ss score
Total
Attractivene
ss score
0.27
0.09
0.09
0.08
0.06
just produces
the milk from
cow milk.
2. Not
produce
milk for the old
folks.
3. Have high
contain of
sugar.
4. Rarely change
their
packaging
TOTAL
4.44
4.31
Based on the quantitative strategy planning matrix (QSPM) that is show in the diagram,
we can see that make new flavors of the milk get the highest for total
attractiveness score which is 4.44
37
11.
Definition
The Blue Ocean Strategy is one of the most powerful innovation processes,
aiming at creating profitable high-growth for companies. The objective is to create
and capture new demand by focusing on unaddressed groups of customers (noncustomers), with a strategic offering that creates a leap in value for both the buyers
and the company. Its describes the opportunities of vast, untapped market spaces,
or "Blue Oceans," that can be developed by expanding market boundaries or
launching new industries. The strategy is the simultaneous pursuit of differentiation
and low cost, with the theory behind it not to out-perform the competition in the
existing industry, but to create new market space or a "blue ocean," thereby making
the competition irrelevant.
In term of blue oceans, demand is created rather than fought over. There is
ample opportunity for growth that is both profitable and rapid. Other than that, in
blue oceans, competition is irrelevant because the rules of the game are waiting to
be set. Blue ocean is an analogy to describe the wider, deeper potential of market
38
space that is not yet explored. Blue ocean strategy model highlights the principles
and framework and tools that every company can use successfully to formulate and
execute blue ocean strategy. The six principles are reconstruct market boundaries,
focus on the big picture, reach beyond existing demand, get the strategic sequence
right, overcome organizational hurdles and build execution into strategy.
3. RAISE
-
2. Reduce
- Sugar content in drinks
4. CREATE
Capsule as the supplement or
vitamin for those who are not
interested to milk.
- Produce chocolate bar
Reduce
39
Dutch Lady should reduce the quantity of sugar found in milk content. As
we know Dutch Lady Products for children. First of all, we need to understand that
children growing need of energy resources to help them grow. The main source of
energy is carbohydrates and fats. Carbohydrates are very important, because it is a
major source of energy needed for healthy growth and development of the body
and the brain, especially for growing children. Sugar is a type of carbohydrate.
Milk is a natural product itself contains sugar called lactose. Sugar (lactose)
that contain in milk is helping the child to grow up. Therefore, all of Growing up Milk
will contain some form of sugar. Dutch Lady Growing up Milk is nutritionally
designed using a combination of natural sugar in milk called lactose and also added
so that the ratio of natural plant sugars naturally lactose in milk can be maintained.
Based on years of research, we found that it is important for our Growing up
Milk optimally formulated. Research conducted revealed that products that are not
optimally formulated, for example with high lactose cannot be accepted by
Malaysian
children.
Some
children
who take
high
lactose
milk
can
have
complications such as diarrhea, bloating (due to too much wind / gas) the impact of
their body's inability to excessive metabolic lactose. Therefore, we suggest reducing
sugar found in milk.
Raise
Dutch Lady Products that available on the market only have in small sizes. It
make troublesome to users who tend to eat much because they have to buy in a
large quantities to enjoy the meal that much.
Create
Nutritious milk means the liquid produced by the mammary glands of female
mammals. It provides the primary source of nutrition for newborns before they are
able to digest other foods. It is also can processed into dairy products such as
cream, butter, yogurt, ice cream, gelato, cheese, casein, wheat protein, lactose,
condensed milk, powdered milk, and many other types of extra-food and
40
12.
CONCLUSION
41
13.
REFERENCES
Book Reference
Zainal Abidin Mohammad, Ho Jo Ann, Wong Foong Yee (2014), Strategic
Management Second Edition, Oxford University Press.
Reference for website:
1.
2.
3.
4.
5.
http://www.halalexporter.com
http://www.dutchlady.com.my
http://www.studymode.com
http://www.mida.gov.my
https://www.scribd.com
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