Vision and mission4
Threat of substitutes9
Rivalry among existing firms10
Buyer bargaining power11
Bargaining power of suppliers11
Table 1: Import duty5
Table 2: Net FDI inflows, 2000-20086
Figure 1: Income per capita7
Figure 2: Oil price Malaysia and neighbour countries8
Michael Porter five’s forces and PESTEL analysis are two external analyses used by organization to scan the changing environment of an industry. Whilst Michael Porter five’s forces or industrial analysis provides a scan on the changing industrial and observe the structure of internal competition of an industry, PESTEL analysis scanning the changing of the external environment which is beyond the control of the organization. PESTEL analysis is criticized as not an effective framework because there are certain weaknesses in the framework. For example, the fast changing environment and it is a not long lasting analysis. One of the example concerning on the Washington Mutual declared bankrupt due to unable to overcome the economic crisis that severely hits on the company’s finance. History
Proton Holdings Bhd is a Malaysia stated-owned company. Proton is established on 7 may 1983 under the direction of the former Prime Minister Malaysia, Dr Mahathir Mohammad. Proton Holding Berhad is listed in the Main Board of the KLSE on 26 March 1992. The major shareholder of Proton Holding Berhad: Khazanah Nasional (42.7%), Employees Provident Fund (EPF) (15.7%) and Petroliam Nasional (7.9%). Proton and Mitsubishi established joint venture project since the first Proton car produced in 1985. The first Proton Saga which produces based on the technology from Mitsubishi launched in September 1985 and the rest of cars has manufactured by proton with the collaboration with Mitsubishi such as Wira, Waja, Iswara and others. However, Mitsubishi sold its stake in 2004 but is still continue to supply the relevant components to Proton. In the same year, Proton announced to talks with Volkswagen AG to establish a partnership. The expectation on the tie-up may exploit each other’s strengths, but the talk has failed. In 2006, Proton's sales dropped 30.4% from 166,118 in 2005 to 115,538 in the market. This allowed the second national car Perodua to overtake Proton as the country's largest passenger carmaker for the first time, with a 41.6% market share, while Proton's market share fell from 40% in 2005 to 32% in 2006. In the period ending December 31, 2006, Proton has also suffered three consecutive quarterly losses. Compared to a profit of 86.5 million ringgit in 2005, the car company lost 281.5 million ringgit in 2006. Total losses in 2007's financial year climbed to $169 million. The acquiring 80% of the Lotus Group in 1996 by proton is only using the technological expertise of lotus to produce efficient car in Malaysia. In 2009, Malaysian government starts delivering information to the people on the Lotus Group which is owned by the national car makers - Proton. Lotus Group is a United Kingdom based company which is a sport car manufacturer. The acquisition of lotus group by proton is to obtain mutual interest where the Proton will obtain the technological expertise from the Lotus Group and the Lotus Group need the assists from proton to boost the sales. In the fiscal year ended 31 March 2009, Lotus Group turnover is increased to RM574.8 million compared to RM564.3million in the year before.
Vision and mission
The company mission is to become a successful Malaysian automotive company and manufacture innovative product and affordable price to the local and even to the global. In order to get the goal success, Proton Holdings Bhd set five core commitments which are focusing on the interest of customers, shareholders, employees, business associations and the nation. Barrier entry...