What competitive advantages this company has?
Hup Seng has a pretty simple business model with simple products. It has 3 subsidiaries one which is a biscuit confectionery, the other is to distribute and sells and the one it acquires, Incomix. It is not a great business and some of its product F&B business industry against the likes of Kraft and Nestle. Hup Seng ’s competitive advantage is its relatively lower price or maybe some customers who prefer its taste better than the other. SWOT Analysis
Strengths 1. Currently in a good financial position (few debts, etc) 2. Skilled workforce (little training required) 3. Company name recognized on a National/Regional/Local level 4. Own premises (no additional costs for renting)
| Weakness 1. Less customer 2. Too much waste 3. Low customer retention 4. Low production quality compared to other brands. 5. Low integrity of annual report
| Opportunities 1. Skilled workforce means that they can be moved and trained into other areas of the business 2. Competitor going bankrupt (Takeover opportunity) 3. Moving a product into a new market sector
| Threats 1. Large and increasing competition 2. Increase in tax 3. Rising cost of Wages (Basic wage, etc) 4. Possible relocation costs due to poor location currently held 5. Local authority refusing plans for future building expansion 6. New distribution channel
| How the financial Performances & Profitability trends are appear?
Picture shown above is the financial highlights of 5 years analysis of Hup Seng Industries Bhd. * From the perspective of turnover of the company is stable during year 2006-2007 shows that the product produces by the company is sold very quickly in the 5 years operation. It also shows that company is efficient in selling their products. * Profit after tax means the net profit receive by the company is surprisingly increase from year 2006-2009 but then have slightly decrease. The increase of net profit...
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