Issues

Quality and Reliability Issues:- Need to change image from a cheap car to a reliable, modern car.
PERODUA ALZA lack of strategic creativity led it to receive many negative comments from its own
newly found owners about its built-up quality and workmanship.
In May 2012, Perodua issued a recall order for both the Alza and its first-generation pre-face-lifted
hatchback MyVi for an extension of an air-conditioning pipe that previously could cause rust on the
steering rack.
Pricing Issue:- Need to increase market share and profit margin to maintain as the leader of car
manufacturer in Malaysia.
Reduction in import duties for CBU (completely build-up) imported cars from Japan and AFTA has
been mooted . Hence, car prices from foreign countries has been reduced significantly.
PROTON-the closest competitor in Malaysia( holding 24.1% of market share), has implemented best-
cost and broad differentiation strategy.

Assumptions
We assume that growth rate of economy Malaysia ~4.7% in year 2014.
We assume that the Malaysia automobile market will be growth at least 2 % in year 2014.
We assume that the organization will not be acquired by another organization during the
next 12 months.
We assume that there will be no new significant legislation or regulation of our industry
in the next 12 months.
We assume that no new competitor is entering into the Malaysia automobile car industry
in the next 12 months.
We assume that Perodua is mainly produces economy cars that has high efficiency on
petrol consumption.
Fish Bones Analysis
Porters Five Forces
Pareto Analysis
TOWS Matrix
Fish born(Ishikawa) Diagram
Fish born(Ishikawa) Diagram
Porters Five Forces

High competition among the
suppliers across the globe spare
parts/accessories
Many suppliers are able to lower
down the price due to competitive
market

Competition from National car player which is
supported by government PROTON
Other automobile strong players such as
Toyota, Honda and Nissan. Emerging other
aggressive player like Volkswagen with their
more economic type of cars that targeting
middle income group
Many are focusing on their pricing strategy to
attract new customers. Eg: Honda Jazz Hybrid:
only RM500 and you can have the car
Not easy to enter to automobile industry as this
must incur high capital investment
Local brand with fair price
Brand Loyalty among the customers. Switching
brands or new car require more cost
In future government is considering to reduce
the taxes of the imported automobiles, more
brands from different country will penetrate to
Malaysia especially brands from China
Customer has many other automobile
brands or second hand cars to choose
beside PERODUA
Many customer switching to hybrid cars
which is more fuel saving and environment
friendly
Substitute of other brands of vehicles when
price and specification is not favorable many
other choices in the market
Changing of transportation method from
private cars to public transport or car pool
system. For short distance travel, bicycle may
be favorable
Pareto Analaysis
Issues Score Cumulative % Cut off %
improve safety 7000 20% 0.8
introduce more range 5500 30% 0.8
focus on economical design 4900 40% 0.8
improve sales satisfaction 3200 65% 0.8
increase staff motivation 2400 79% 0.8
intensive marketing 1900 85% 0.8
identify new target markets 900 100% 0.8
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Pareto Analysis
Score Cumulative % Cut off %
Strengths S

S1 Established since 1992
S2 High market share in local automobile
industries
S3 - association with Toyota and Daihatsu
S4 Big production factory
Weakness W

W1 Low safety standard
W2 Low automobile technology
W3 dependence on local market
Opportunities O

O1 venture into foreign
markets
O2 Malaysian consumer
preference for small build cars
O3 new merging urban
cities/town for small cars


S1 O1 : Perodua ready to venture into
untapped foreign markets
S3-O2: establish strong partnership with
Toyota and Daihatsu of build attractive
small build cars to capture bigger market.
S2-O3: by riding on the most preferred local
car should move aggressively to capture
new merging urban towns
W1-O3:new merging urban cities folks
priorities low cost vehicle over safety
standard
W2-O2: Use existing technology to
offer affordable and low price
passengers car to cater for local
markets.
W3-O1:Should venture into new
foreign markets to reduce over
dependence on local market .
Threats T

T1 Close competitive from
Proton
T2 merging foreign cars in the
same segments Kia Suria,
Hyundai I10, etc.
T3 consumer preference for
EEV
S3-T2:Ride on high technology of Toyota
and Daihatsu to produce quality cars to
compete with foreign cars.
S1-T3:Perodua to focus on producing low
cost cars to offer attractive price to
consumer.
W2-T3:To build own R&D to venture
in EEV
W1-T2: To build more quality car to
compete with merging foreign cars
External factor
Internal factor
SWOT and TOWS