SWOT Analysis for Mamee

To gain a deeper insight into MAMEE-DOUBLE DECKER (M) BERHAD's operation,

SWOT analysis is an appropriate tool. It thoroughly analyzes MAMEE-DOUBLE
DECKER (M) BERHAD from the aspects of strength, weakness, opportunity and
threat which can give a comprehensive overview on the company. Soon after the
analysis is conducted, the market position and prospect of MAMEE-DOUBLE
DECKER (M) BERHAD's should be clear and the suitable strategy can be devised
and

implemented

as

well.

Strengths
The strengths of MAMEE-DOUBLE DECKER (M) BERHAD lie on the improving
quality, business network and appropriate market strategy. These strengths
enable MAMEE-DOUBLE DECKER (M) BERHAD to continue competing in the
market composed of Wangwang, Khongyuen and Oishi. They can survive there
because of their strong promotion among the entire resident there. Profit before
Tax recorded a double-digit growth of 57.3% from RM9.6 million to MAMEEDOUBLE DECKER (M) BERHAD's financial performance continued on the up trend
with another set of commendable results. The efforts in penetrating into new
export market has growing by 6.2% from RM242 million in 2002 to RM257 million.
RM15.1 million for the year under review as a result of increased production
efficiency in manufacturing coupled with reduction in operational costs in
distribution

channels.

are imported from Europe. The increase in vegetable oil, starch and flour has
added pressure on profit margins to the company. So, MAMEE-DOUBLE DECKER
(M) BERHAD must reduce its reliance on imported raw materials with its constant
research

and

development.

MAMEE-DOUBLE DECKER (M) BERHAD cannot afford to meet the unexpected

demand. By delivering the information through one easy-to-use source, the
company still needing wholesale replacement of all of their systems.
Opportunities
Historically, savory snacks within Chinese society had been restricted to dried
and preserved seeds and nuts. Snacks are known in Chinese as "xiao chi" or
"little eats" and were traditionally sold by street vendors, who each specialized in
one particular type of snack. The general trend was to provide snacks that were

cheap and nourishing and included ingredients such as bean curd, batter and so
on. Traditional Chinese snack foods were originally classified as either "wine
accompaniments" or "food accompaniments". However, western influences have
caused a broadening of the Chinese palate. This has creating the demand for a
wider

array

of

snacks

and

moving

the

industry

trend

upward.

China is also experiencing the "Little Emperor" phenomenon in which one child
receives the exclusive care of two working parents, along with two sets of
grandparents. These children spend, on average, more than $1 every week on
snack foods. Overall the Chinese spend 9 percent of their total grocery bill on
snacks. In supermarkets, snack food spending increases considerably as most
meats, vegetables and fruits are still purchased in traditional outdoor markets
called

"wet"

markets.

Beside that, snack food manufacturer Mamee Double-Decker Bhd plans to

acquire several health food producers under its expansion drive. Mamee DoubleDecker Bhd has identified several health food companies to be acquired, and has
started negotiations with the owners of these firms. In a release to Financial
Daily, he says such acquisitions will depend on, among others, the state of the
company to be acquired, products being produced and their margins. Mamee is
undertaking the expansion through acquisition rather than organic growth as it
provides access to a complete set of production lines, established products, and
trained manpower.Shanghai's retail markets offer a remarkable variety of snack
food products. Mamee Double-Decker Bhd may be challenged by the complexity
of the market, but these opportunities prevail for the company to learn about and
take advantage of established local tastes and distribution channels.
Threat
China is changing rapidly and so are its tastes. As a consumer society emerges,
so

new

products

are

appearing

with

increasing

regularity.

Major

food

manufacturers compete by developing and marketing new food products into the
market. Mamee Double-Decker Bhd may be challenged by the complexity of the
market as Shanghai's retail markets offer a remarkable variety of snack food
products.Yet the special characteristics of the Chinese market have made a
presence challenging at best and often frustrating. China's size, diversity and
rapid change, not to mention its culture and the broad influence of its
Government,

all

contribute

to

difficult

operating

environment.

Mamee Double-Decker Bhd facing the rivals brands such as Wangwang,

Khongyuen and Oishi that occupy significant shares of the chips and cracker
segments in China. These companies have the advantage of familiarity with
dietary and cultural preferences along with sophisticated, locally tailored
marketing and packaging. They see the Chinese market as their future sales
growth

area,

and

often

have

made

large

capital

commitments

there.

Concerns over the link between unhealthy foods and obesity are increasing,
restriction on advertising to kids and the ban on snack vending machines in
schools are some of the challenges that are reshaping the market and driving
category convergence. Health-related trends that continue to gain momentum
include portion control, high fiber/whole grains, cutting unhealthy ingredients
(trans fats, processed sugar, fat, etc.), and natural/organic, even as product
portability