SWOT analysis of proton edar sdn bhd

The SWOT analysis is a valuable measure in your situational analysis. SWOT analysis could be identified as a strategic planning method in evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a undertaking or the company. It involves stipulating the aim of the concern venture or undertaking and besides by placing the internal and external factors that are favourable and unfavourable to accomplish that aim.

The primary intent of the SWOT analysis here is Proton-Edar Sdn Bhd to place and delegate each important factor, positive and negative, to one of the four classs, leting Proton-Edar Sdn Bhd to take an nonsubjective expression at the concern. The SWOT analysis will besides be a utile tool in developing and corroborating ends plus selling scheme.


Proton ties with other ASEAN markets which are beef uping at all the times through ASEAN Free Trade Area ( AFTA ) induced duty decreases, which will supply advantages for car manufacturers establishing themselves in Malaysia. The market continues to pull investing from major car manufacturers, with General Motors ( GM ) organizing a tie-up with DRB-HICOM Bhd in August 2007 and its subordinates include Perusahaan Otomobil Nasional Sdn. Bhd and Lotus Advance Technologies Sdn. Bhd.

Proton has received a tonss of award refering about their merchandise and organisation. This awards conveying the synergism on the corporate and merchandise image. Few of it is:

April 2008: Reader ‘s Digest Trusted Brand 2008 Gold Award for Car Category

July 2008: Asiatic Auto – VCA Auto Industry Awards 2008 – Best People ‘s Car Award for PROTON Saga

Proton Saga and Proton Exora at the 2010 Frost Award

Sullivan Malaysia Excellence Awards 2010

Reader ‘s Digest Trusted Brand 2006 – Gold Award for Car Category.

Reader ‘s Digest Super Brand 2005 – Gold Award for Car Category.

Merdeka Millennium Endurance Race 2005 – 1st topographic point Overall and Class ‘O ‘ Winner.

Malayan Rally Championship 2005 – Overall category Winner P10 Category.

Malaysia Best Brand Award.

National Creativity & A ; Innovation Award 2004.

Proton WAJA – 4.5 stars out of 5 star evaluation for being the Most Economical and

Greenest Sedan in Australia.

Proton Edar emphasis on the lift of the automotive eco-system saw the strengthening of the seller base and trader system. These account enterprises enabled Proton together with sellers and traders to present improved quality of service and be more competitory.

Proton will go on to beef up itself in all facets to operational, and corporate to better fit it in the old ages in front. As a Government Linked Company, Proton is secured in term of fiscal capablenesss. It will follow a three-pronged push viz. development of market-driven merchandises, focal point on high growing regional markets and a production scheme that achieves economic systems of graduated table.


The national industry is in diminution, with Proton losing market leading for the first clip in 2006 ( albeit to fellow national manufacturer Perodua ) .

In contrast, Proton reported a loss of RM75 million in the October – December one-fourth last twelvemonth. It is exceeded in market value by Oriental Holdings Bhd ( RM2.3 billion ) and DRB-HICOM Bhd ( RM1.4 billion ) , both of which are diversified motor-based groups.

After that, the bing quality issue can impacting trade name image caused by active service units such as political intervention by Tun Porsche on seller choice, assignment of top direction and design. Plant use depression can besides inability to retain and cultivate endowment, inability to present existent new theoretical accounts, no economic systems of graduated table, inability to perforate export markets, inability to fulfill clients ‘ demands, no sense urgency, corporate administration and complete numbness of developments in the car industry. Fundss shrinking can act upon consequence in Proton inability to present new theoretical accounts.

The failure by Proton to happen a foreign spouse is a warning signal that it is no longer a competitory and economically feasible entity with current market state of affairs and questionable direction determinations that causes Proton to lose money when other finds net incomes.


The entry of Danish vehicle tuner Kleeman could supply a encouragement for the premium vehicle section. Proton ‘s export programs could assist to countervail its worsening domestic influence and better its planetary public presentation.

Faced with worsening domestic gross revenues and uncertainness sing a strategic partnership, Malaysia ‘s Proton has set its sights overseas. The company is measuring a program to construct a production works in Egypt, which would move as a gateway to Africa and West Asia and hike the car manufacturer ‘s exports. Proton already sells its Gen. 2 and Savvy theoretical accounts in African markets, such as Egypt and South Africa, corroborating that a market for the company ‘s theoretical accounts already exists. Harmonizing to Proton Managing Director Syed Zainal Abidin Syed Mohamed Tahir, Egypt provides a big market but could besides move as a base to states such as Saudi Arabia and Sudan.

The new Proton Exora is the 9th add-on to Proton ‘s scope of autos and among the current theoretical account discrepancies, the most salable are the Proton Saga and Proton Persona, given the quality and monetary value of the new Proton Exora, Proton is confident it would be good received and increase Proton ‘s mean auto gross revenues of the twelvemonth by at least 30 per cent by the terminal of the twelvemonth 2010.

Negotiations with Indian distributers are underway but no concrete agreements have been made. Elsewhere in Asia, Proton has besides appointed a Thai distributer. Phranakorn Auto Gross saless will ab initio sell Proton theoretical accounts in 20 franchises, with the web due to duplicate within four old ages.


Malaysia ‘s trade difference with Thailand over non-trade barriers in the automotive industry could halter the export undertakings of major car manufacturers Burgeoning capacity degrees of around 700,000 units could ensue in a supply oversupply Thailand ‘s ‘Detroit of Asia ‘ scheme threatens other fabricating bases in the part.

Other than, Proton and Perodua has been at each other ‘s heels since December 2006 when Perodua outsold Proton in monthly gross revenues by 99 autos. Perodua ‘s lead was short lived when Proton outsold Perodua the following month by 550 autos. In February, Perodua outsold Proton once more, crushing Proton monthly gross revenues figures by 763 units. This clip nevertheless, the Malaysian Automotive Association reports that Perodua ‘s monthly gross revenues have topped Proton by a monolithic 4,284 units, doing it hold a market portion of 44 % ( 13,574 units ) as opposed to proton ‘s 30.35 % is 9,290 units. For every Proton Savvy sold by Proton, Perodua sold Perodua Myvi. The Myvi has proven to be a arresting success.


Malaysia ‘s trade difference with Thailand




Technological progresss

New mark market

New distribution topographic points

Appointment of distributer in different state


The national industry is in diminution

Affected trade name image

Weak quality

Inability to present new theoretical accounts


Neckties with other ASEAN markets

Distribution channel

Cost economy

Production quality



















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