Perodua Case Study

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The PERusahaan Otomobil KeDUA Sendirian Berhad, is Malaysia's second largest automobile manufacturer after Proton. It was established in 1992 and launched their first car, the Perodua Kancil in August 1994.The shareholders of Perodua are UMW Corporation Sdn Bhd with 38% stake, Daihatsu Motor Co. Ltd. (20%), MBM Resources Bhd (20%), PNB Equity Resources Corporation Sdn Bhd (10%), Mitsui & Co. Ltd (7%) and Daihatsu (Malaysia) Sdn Bhd (5%). The company started operations in 1994 and the ever so popular Perodua Kancil was introduced to the Malaysian market in August the same year. To date, the following vehicles have rolled out of the Perodua plant: •The Perodua Rusa - March 1996

The Perodua Kembara - August 1998
The Perodua Kenari - June 2000
The Perodua Kelisa - August 2001
The Perodua Myvi - May 2005
The Perodua Viva - May 2007
The Perodua Nautica 4WD - May 2008
The Perodua Alza – November 2009
As of 30 September 2010, Perodua has sold some 1.85 million units of vehicles of various models.

Perodua headquarters is located on an 138-hectare site in Sungai Choh, Rawang, Selangor Darul Ehsan. It houses among others Perodua corporate building, R&D testing laboratories and styling studio, vehicle test track, manufacturing plant, engine plant, pre-delivery inspection area, vehicle distribution stockyard and parts warehouse.

Perodua Auto Corporation Sdn Bhd (PCSB) was established in the final quarter of 2001. Besides Perodua, the two other joint venture partners of PCSB are Daihatsu Motor Co. Ltd. and Mitsui & Co. Ltd both of Japan. The manufacturing operations of the Perodua Group are being managed by PCSB.

COMPETITORS
This is the era of technology. Everyday a new discovery, a new invention is being made. The world is moving ahead in leaps and bounds. People are striving for success and satisfaction in life in the face of fierce competition. Competition is ubiquitous- in every walk, every aspect of life right from childhood to old age. No one escapes competition. HEALTHY COMPETITON

It’s very essential to know the effects- both positive and negative- of competition on society. Competition is the very force that drives individuals to aim for goals, aim higher. In school, students compete against each other for higher grades. Athletes compete for more wins, more records. Companies vie against each other for better sales, bigger markets. Just because there is competition, a person is forced to work harder, better and efficiently to overcome it, to defeat it. Healthy competition is very important for the overall development of individuals, communities and nations on a broader perspective. Take the Indian car industry for instance. It remained stagnant till the late 80’s with only 2 companies offering the same cars for 3 decades. Once the economic reforms came, many companies came into fray and competition increased. In the face of competition, new models, new features, better performing cars are being produced constantly. All this ultimately benefits the customer who gets a wider range to make a choice from. The same example can be applied in every other industry. Competition can only give a thrust to progress. No one can afford to be complacent and sit with fingers crossed. It will only leave one behind in the race. Competition expects and promotes fresh thinking, new ideas, better and more hard work. It makes one sit up and take notice of the world around. As someone aptly said,’there is no business without competition. PERODUA vs PROTON

All is not lost although the proposed merger between national car manufacturers Proton Holdings Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is unlikely to materialise following the government’s decision not to force them to merge. But there are many other areas that both companies can work together and are in fact already cooperating, such as car parts manufacturing by having common parts vendors. Currently, Perodua and Proton share 91 vendors. Even...
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