This report discusses about how Proton Holdings Berhad expands its operation internationally to India. A SWOT Analysis of Proton Holding Berhad will be carried out to to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in this project. The report will be separated into 2 parts. Firstly this report will discuss about the profile of Proton Holdings Berhad and nature of its business in order to analyse the internal factors. In the second part, SEPT Analysis will be carried out to analyse the related external factors in India in sectors of Social, Economy, Politic and Technology. At the end, the result of SWOT analysis will be presented accompanied by recommendations to expend its operation internationally into India.
Proton Holdings Berhad
•Proton is a Malaysian national automobile manufacturer.
•Proton Holdings Berhad is the holding company which is listed on the Bursa Malaysia. •14,706 Proton cars were exported in 2006 to other countries/ •Proton exports cars to the United Kingdom, South Africa, and Australia and the company is aggressively marketing its cars in several other countries including the Middle East. •Proton cars has also been exporting a small volume of cars to other countries like: 1.Singapore
•Proton has never succeeded to export their car to the US, because the cars required many changes to meet American safety standards in order to secure coverage from auto insurers and satisfy legislative requirements. •In some countries, Proton cars suffer somewhat from a poor public image because of their designs.
•Proton has over 20 years of experience in Automotive industry •Many cars are exported by Proton to many countries every years, proves that proton has the experience of exporting cars. •In others country, proton cars have been proved popular in some countries especially among budget oriented motorist. •Quality of Proton cars proved to have improvement, for example the latest product of Proton, Proton Exora is a multi-purpose vehicle which is powered by the 1.6L Campro CPS I4 engine producing 125 horsepower and 150Nm of torque. Beside, Proton Exora carries some functions such as door locking/unlocking, interior lamps, headlamps, brake lamps and wipers. •There is a huge improvement on the design of Proton cars. In the past, they are considered deeply unfashionable with younger drivers. But now, they have a good public image as the design improved. Improvement of the design can be seen clearly at the Product section above. •Compare to India local car producer, Proton has advantages in quality and design. These are some pictures of India local cars like Grand, Puskpak, Trekker and so on.
•Existing quality issue affecting brand image caused by active service units. •Inability to penetrate export markets in some countries like US •Proton cars failed to meet American safety standards in order to secure coverage from auto insurers and satisfy legislative requirements. •Proton export models still do not comply to all environmental standards of some countries such as emission limits. •Lack of relationships and reputation within India.
•Lack of resources and Intellectual Property in India market. •Compare to India local cars, price of Proton cars is more expensive, yet export and import duty are not included yet. For example, India has the Tata Nano, which is the world least expensive car at under $3000.
•The percentage of car users is increasing at increasing rate as the growing of India’s economy and the average income. Therefore, believe that the demand for the car will be increased. Economical
•Population of India is expected to rise until 1.4 billion by 2025, and the average income is predicted to be tripled over this period. Economists expect the middle class in...