Presented by:

Tarun Jain Nikunj Chandak Gurpreet Singh Sobti Sanchit Jain

COMPANY PROFILE Lum Founded in 1989 by CEO, Ms. Olivia

Initial business activities revolved around providing

water treatment through purchase of traditional membrane technology (MT) from other companies. Through intensive research and development (R&D), Hyflux moved to designing, manufacturing and selling its own membranes. Today Hyflux is considered a leading regional player in the water treatment industry and ranked by Forbes Global Magazine as the Worlds Best Small Company in 2002.

HYLUX STRATEGY
Hyfluxs vision is to be a world leading water

treatment company. Hyflux developed a 3 pronged approach to achieve its mission. This overarching modus operandi is done through the means of differentiation through in-house development of superior MT, global expansion by venturing into different markets where profitable and through key alliances which buttress the overall strategy.

BUSINESS STRATEGY
First Mover Advantages

To differentiate, Hyflux quickly identified MT and purified water as a sunrise industry as it is an important commodity for both industrial and public use. Locally, its early analysis gave Hyflux the first mover advantage in which it seized the opportunity and became the leader industry.

 In-House Product & Process development

Product wise, Hyflux developed its own customized membranes, water treatment technology and manufacturing equipment inhouse. By not using subcontractors to build its production equipment it retains better control of the raw materials, manufacturing costs, quality of the product as well as the turnaround time. This is juxtaposed with its local competitors that merely bought and assembled end products like pipes and membranes off the shelf.

 Quality and Customer savings

Hyflux aims to enhance the quality, features and the deliverability of its products to differentiate itself. By focusing on process applications, attention to precision, quality control and reducing production time Hyflux been awarded accolades like the ISO9001:2000 quality award apart from its competitors.
R&D alliances & Tech Alliances

Hyflux partners with other companies and organizations to acquire better technology to enhance its R&D efforts.

 Outsourcing alliances
To enhance efficiency and cost effectiveness in its production, Hyflux outsourced its production to capitalize their partners competitive advantage. An example is the outsourcing of its production of Aquosus which, according to financial analysts, will be an important future revenue source. Hyflux increased its current 500 units a month production capacity by outsourcing the manufacturing of component parts to Haier in China and the final assembly to Flextronics. This enabled it to concentrate on its core competency of membrane development while leaving production to companies which have the comparative advantage. Mr. Soon mentioned it is cheaper to outsource as the quality of the products will be guaranteed to be the same or even better before outsourcing. Thus outsourcing provides Hyflux with benefits of lower cycle time and internal investments.

 Incrementalist Strategy

Hyfluxs expansion philosophy is based on an incrementalist strategy. According to Mr.Soon, in 5 years, the company aims to maintain Singapore, sustain China and grow Middle East. Accordingly to maintain focus, the company adopts an incremental expansion approach by having regular reviews and constant market analysis before expanding. This constant reassessment allows Hyflux to maintain market sensitivity and thus alter its objectives in reactively to stay ahead.

SWOT ANALYSIS
SWOT is an important tool for auditing the overall

strategic position of the company and its environment. SWOT is the abbreviation for strengths, weaknesses, opportunities and threats of the company. By using the SWOT analysis for Hyflux, we will be able to analyze the strategic position of Hyflux in the industry.

STRENGHTS OF HYFLUX
MANAGEMENT STAFF OFFERINGS FINANCE TECHNOLOGICAL EXPERTISE RESEARCH AND DEVELOPMENT REPUTATION LOW COST OF FINANCING AND MANUFACTURING

WEAKNESS OF HYFLUX
PERSONNEL
POTENTIAL LEADERSHIP GAP FAILURE TO COPE WITH DEMAND

CAPITAL MANAGEMENT
ACCOUNTING PRACTICES

OPPORTUNITIES OF HYFLUX
CONSUMER PRODUCTS
SUNRISE INDUSTRY SUBSTANCIAL SPACE IN EXISTING MARKET

NEW VENTURES

THREATS OF HYFLUX
CONSUMER INSTABILITY OF A YOUNG COMPANY INCREASE IN COST OF GOODS AND RAW

MATERIAL HIGHER EXPENSES IN PERSONNEL DEVELOPMENT POTENTIAL COMPETITION WITH JAPANESE COMPANIES LIKE MITSUI AND FRANCES SUEZ ENERGY INTERNATIONAL

SWOT CONCLUSION
In the final analysis, we see that Hyflux is a company

that certainly has a huge potential and strengths to tap into. Though it may have some weaknesses and threat, they are not too huge for which it cannot deal with accordingly in time.

PESTLE OF HYFLUX
P- POLITICAL ENVIRONMENT
E- ECONOMIC ENVIRONMENT S - SOCIAL ENVIRONMENT

T - TECHNOLOGICAL ENVIRONMENT
L - LEGAL ENVIRONMENT E - ENVIRONMENTAL

POLITICAL ENVIRONMENT
Politically, worldwide water-scare countries like Singapore

and Middle East are seeking to be water independent. This has opened markets to Hyflux. Examples include the recent local NEWater and desalination plants and the joint venture with Istithmar 3 to develop, own and operate water utility projects in the Middle East. However some of the governments that demand Hyflux technology have a lack of resources to pay for it, thus resulting in limitation to these markets.

ECONOMIC ENVIRONMENT
Economically there is a rising demand for purified

water due to the expanding pharmaceutical industries and increased industrialization worldwide. These industries require high quality purified water for their products, resulting in increasing industrial demand for Hyfluxs membranes.

SOCIAL ENVIRONMENT
With rising worldwide affluence due to globalization

and worldwide industrialization, more people are demanding for cleaner water. This give rise to demand for consumer based purified water. Therefore, the global market that Hyflux is targeting is actually increasing in size. This gives it even more opportunities to capitalize on.

TECHNOLOGICAL ENVIROMENT

LEGAL ENVIRONMENT

ENVIRONMENTAL