Industry analysis is important thing as well as the economy analysis. When the economy is not in good condition, then it will be a difficult condition for the industry to perform well. The study of industry grouping that analyzes the competitive position of a particular industry in relation to others and indentifies companies that show particular promise within an industry in called as industry analysis. Although it is impossible to exactly forecast which industrial groupings will valued the most, with the careful analysis can suggest which industries have a brighter expectations than the others and which industries are overwhelmed with problems that are possible to continue for a while.The investors will be able to have an idea about the prospects of a particular industry since industry analysis examines the specific environment of an industry. Analysing an industry means by looking at the basic characteristics, the key economic and operating variable that drive the industry performance. Besides that, the outlook for the industry conditions also can be known. Industry analysis involves reviewing the economic, political and market factors that influence the way that the industry develops. There are some factors of market factors such as the power wielded by suppliers and buters, the condition of competitors and the likelihood of new market entrants. After making an industry analysis, the company can identify its weaknesess and strengths and develop a strategic strategy to improve the company’s condition. The company also can have an advantage over their competitors after making the analysis.
2.0 INDUSTRY ANALYSIS
General Development in the Country
Malaysia has become an upper middle income country with a per capita yearly income measured at about US 5,300 dollars in 2007. In 2009, Malaysia had 4.7 million hectares of oil palm plantations with 416 mills. The industry is denominated by large plantation companies (private and government linked companies) that hold 60 % of the total plantation land with growing levels of combination along the value chain. While in 2010, Malaysia is known as the world’s second largest Crude Palm Oil (CPO) producer with 17.5 million tonnes of CPO and is expected to achieve 21.5 milllion tonnes. The contributor to biomass in Malaysia was known to be the waste from palm oil plantation. Besides that, it is estimated that there were more than 90 million tonnes per year of large derived from empty fruit bunches (EFBs), trunks, fronds, shell and palm kernel cake. One of the Malaysia’s main agriculture products that it exports is palm oil. Malaysia exported over 15 million tonnes of palm oil which majority to China, the European Union, Pakistan, United States, India and Japan in 2008. Malaysia received RM 65 billion (US 17.7 billion dollars) in palm oil export earnings in 2008. Besides that, Malaysian palm oil industry has developed to supply 51% of the world’s palm oil production and 62 % of the world’s palm oil exports. In 2004, over 14 million tonnes of palm oil was produced on 3.88 million hectares of land in Malaysia. The palm oil plantation industry has emerged in the last 50 years as a major agricultural activity in Malaysia. This industry has become one of the most highly organised sectors of any national agriculture system of the world. It also able to compete with vegetable oil products produced from developed and developing countries. Over the years, Malaysian palm oil industry has grown in size and participation and the plantation sector is one of the biggest employers in Malaysia.
Contribution to GDP in Malaysia
Mining & Quarrying
All figures are in percentage
Table 2.1: Changes in...
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