This 19 page paper examines the Malaysia and national car manufacturer Proton in order to develop a recovery strategy. The company is examined starting with an examination of the company, its' background and the way it competes and then looked at with a range of analytical tools, including a PEST analysis, a SWOT analysis and use of Porter's five forces model. With the understanding of the company, and its position within the industry a future strategies suggested. The bibliography cites 11 sources.
Name of Research Paper File: TS14_TEproton.rtf
Unformatted Sample Text from the Research Paper:
of Buyers 17 2.5.5 Substitutes 18 3. Recommendations 18 4. Conclusion 20 1. Introduction The Malaysian car market is one that is growing, in the first 7 months of 2008 287,248 passenger cars were sold, an
increased on previous years, but this increase was expected to be reversed in the short term due to the poor economic conditions in the country, with a decrease of 16.5%
expected in the market in the second half of 2008 (Asia Pulse, 2008). In the long term there is expected growth, with the market increasing to 500,000 units per annum
by the year 2015 (Bhattacharya et al, 2007). With a short term glitch and fall in the market followed by growth it may be expected that the national firm;
Proton would be well placed to deal with these changes. Founded in 1983 with the first cars produced in 1985 the firm was able to gain an advantage as a
national car manufacture, one that gave it a large market share. In 1999 the firm had a 66% share of the Malaysian market; by 2005 this had dropped to 40%
(The Economist, 2005). By 2008 this has dropped further and by July 2008 the market share was 33.8% (Asia Pulse, 2008). This slip has been occurring without any reversal despite
a high level of help over the years from the Malaysian government, including high levels of import taxes and tariffs to limit the sales of imported cars, even with locally
assembled cars being penalized with economic measures (The Economist, 2005). However, there are also some conflicts with the government policy where it was noted by Prime Minster Abdullah Badawi that
stiffer competition in the automotive industry would be beneficial for Malaysian consumers (The Economist, 2005). There have other strategies adopted; from a focus