1.

0 INTRODUCTION
Perodua is Perusahaan Otomobil Kedua Sendirian Berhad, means the second Automobile
Manufacturer Private Limited. It was founded on 1993 . It is a joint venture company between
Malaysian and Japanese. The founder of Perodua is Daihatsu.
The shareholders of Perodua are UMW Corporation Sdn Bhd 38%, MBM Resources
Berhad 20%, Daihatsu Motor Co. Ltd 20%, PNB Equity Resource Corporation Sdn Berhad 10%,
Daihatsu (Malaysia) Sdn Bhd 5%, Mitsui & Co. Ltd 4.2% and Mitsui & Co. (Asia Pacific) Pte
Ltd 2.8%. The headquater of perodua at Serendah, Selangor, Malaysia.Perodua mainly produces
small- compact car.
The cars mainly produces by Perodua are minicars and superminis and does not have
models same as the market segments of Proton. All Perodua cars are badge engineered from
Daihatsu. They do not designer or engineer their main components such as engine and
transmission. In 1994, Perodua launched their first car, Perodua kancil. In 1996, Perodua produce
Perodua Rusa and Perodua Kembara in 1998. The following years, Perodua produce The
Perodua Kenari (2000), Perodua Kelisa (2001),Perodua Myvi ( 2005), Perodua Viva ( 2007) and
Perodua Alza (2009 ). Moreover, perodua launched Axia in 2015.
Target market involves dividing a market into segments and then concentrating on
marketing products on one or a few key segments (Pride.et.al, 2007). Perodua has different
market strategy to attract different type of consumer. For example, Peroduas Myvi and Axia
target market is the young generation of consumer, who are under the age of 20 years old to 34
years old, because the price reasonable and affordable by the young generation. It also can fulfill
the demand of the customer.
Perodua company also target to the middle class customer because they are will know in
producing economic car which can affordable by them. Perodua company also offered the other
vehicle to the customer with big family such as Perodua Alza. Perodua also sold to other
countries such as Indonesia, Singapore, Brunei, Nepal, Fiji, Sri Lanka and Mauritius.
Perodua main competitors is the Proton company. Both of them are local automobile
industry.The price of the product-cars are reasonable comparing to the imported car, Nissan and
Honda. The technology of automobile between 2 companies are almost similar.

2.0 SWOT ANALYSIS

2.1 STRENGTH
Starting of the SWOT analysis is the strength, strength are the characteristics of the business or
project that give it an advantage over others. Strength is also an internal attributes and resources
that support a successful outcome for business. The Perodua have strength that always exist in
their company which bring many of advantage for their business.
1. Perodua is the Malaysias second national car manufactuter after Proton.
Perodua is established in 1992 and total employee strength of 10000 employees and is the
among largest small car manufacturers in Asia. In October 2005, it had produced a cumulative
total of 1 million cars. It is increase 240,000 per year. Perodua is successful in its business
ventures compare to Proton. Perodua Myvi are very popular, which sold 80,327 units in 2006,
outselling its competitors's best selling car, the Proton Wira, which only sold 28,886 units in
Malaysia. As the Perodua company have 10000 employees, that will more efficiency in work and
high productivity. So, Perodua became the best selling car company in Malaysia from 2006 to
2010. In the first four months of 2015, Perodua domestic sales jumped by over 21% to 74,700
units, to claim a 35% market share. This was more than double Proton's 32,700 sales and 15.3%
market share during the same period. While Proton seems to be in declining, the overall share of
national car companies in Malaysia has changed little over the years. Perodua has been the main
company to benefit from Proton's losses. Proton's weaknesses is lead to Perodua's recent success.

2. Perodua is the low cost leader in Asia.

The prices of the Perodua cars are lesser and become the low cost leader even though
Proton supported by the government. People buy Perodua cars because of the lower price and
maintenance charges are cheaper. For example, a full tank of petrol for Perodua is cheaper than
full tank for Proton cars. The performance of Perodua car also fulfills the customers perceived
value. Nowadays, people who request high level performance of car dont have enough money
for fulfills their needs. A car is necessary thing for a person or a family for their daily uses. Thus,
Perodua company produce cars that can effort by everyone in Malaysia. Although the price of the
Perodua car is cheap but the performance of the car is in good condition compare to other

competitor. Hence, Perodua company have a high market in Malaysia. Perodua also provided
more than one type of car at the same time and the price is reasonable and affortable for low or
middle income family. Thus, people have choices to get more cars at the best price. As a
competitor,Proton, they produce a car with high performance and higher price cause some people
who has low income can not afford to buy the car. So, customers will compare with both car
company and prefer to the less cost car to reduce their burden. Perodua also have their outlet in
Malaysia so that the Peroduas user can service their cars in the serves center.

2.2 WEAKNESS
Swot analysis is a planning exercise in which manager identify organizational strength(S) ,
weakness(W), environmental opportunity(O), and threats(T) (Gareth R.Jones, 2007).Weaknesses
are the characteristics that put your business at a disadvantage to others. Hence , we have to
conduct a SWOT analysis to minimizing the weakness of the company. The Perusahaan
Otomobil Kedua Sendirian Berhad have weakness that always exist in their company which
bring a lot of disadvantage for their business.
1.Bad Brand image
First and foremost, the Perusahaan Otomobil Kedua Sendirian Berhad
has a bad brand image. Brand image is the key driver of brand equity, which
refers to consumers general perception and feeling about a brand and has
an influence on consumer behavior1. Hence,it is highly impact to the sale and
the profit of the company. Perodua bring out the Perodua Kancil in1999 which
is compact , less expensive and easy to drive but the image that stuck in the
mind of many people was that of an inexpensive brand . Moreover they also
need to build up the on its value for money and add designer and
engineering, because the car is always being associates toe the Cheap
image can be harmful in the long run. The design of the car also not safety ,
according to the owner review of the Perodua Myvi they said its Harsh and
1

bumpy ride when going through rough and uneven roads. Easily unsettled
when going through speed bumps.
2. Weak management team
Moreover, the Perodua company has a weak management team . Management creates
teamwork and team spirit in an organization by developing a sound organizational structure. It
brings the human and material resources together and motivates the people for the achievement
of goals. A good manager is important for a successful management team, because he or her are
responsibility for using companys financial capital and human resources to increase its
performance (Drucker, 1974). Managers are the stakeholder group with the responsibility of
deciding the organizations goal and decide how to efficiently use the resources to achieve those
goal (Gareth R.Jones, 2007).Hence , the company must have a clear goal and a responsibility
manager . Nowadays , there is a lot of automobile with good value is launched in Malaysia such
as Proton iriz and Kia Picato . According to the complaint of the owner , they said that the
services center refuse to service theem .Thus, management team should have a strategic plan
(tefan NEDELEA, March 2009), because a strategic plan can help the manager and
management understanding the need and wants of the consumer.

2.3 OPPORTUNITIES
Perodua has yet to be competent enough to compete in the global market with other notorious
and large automotive brand in an international level such as: Mercedes Benz, BMW, Volkswagen
and so on. Perodua has various opportunities to bring itself to another level in this competitive
business environment.
1. Collaborate with a larger automobile company to increase the national carmakers market
share in the domestic car industry, instead of competing with each other.
The largest car manufacturer which is also the main rival of Perodua is Proton, the first and
long-established automobile company in the country. The collaboration of Perodua and Proton
will definitely benefit both companies, as well as the whole automotive industry. This
collaboration is able to help Perodua to take part or participate in the manufacturing of bigger-

sized cars such as SUVS, Sedans, Pick-up Trucks and etc, instead of mini-cars that Perodua has
always been doing since it was founded. One of the vital factor is also quality assurance can be
confidently made since the two largest automotive companies in the country are working
together to produce better quality cars, and perhaps, a more comprehensive and satisfying aftersales services, such as a longer warranty service. The most crucial factor is collaboration
between the two companies can increase the market share in the industry, Peroduas standalone
estimated market share in the domestic market is at about 30%, and Protons is at about 20-25%
in the year of 2014, the remained market shares were taken over or acquired by foreign
automotive brands such as Honda, Toyota and ors. This shows that even in domestic level
Perodua is facing a very competitive contest in terms of market share in the industry, therefore,
collaboration not only helps both companies to regain the leading position in the industry, it also
benefits both companies to regain the confidence in this industry.

2. New products and services

Perodua needs to be more creative and innovative in relation of their products and
services. Fuel-saving seems to be one of the factor car buyers will contemplate before purchasing
a car, it can take the trending eco-technology or hybrid technology into account as their blueprint
of future automobile development, as currently, hybrid cars in the market are mostly foreign cars,
and a lot of people couldnt be afford those cars. The creation of Peroduas own hybrid cars will
definitely be welcomed and favored by local car buyers as it is comparatively cheaper. Perodua
can also, venture in a different approach in used-car business, by providing a large-scale trade-in
platform for people to trade in old cars for newer models, and subsequently, Perodua then sell the
traded-in cars to car dealers. An overwhelming number of car buyers, specifically, fresh
graduates or low income groups purchase a used car or second hand car as their transportation.
This particular business may not be able to be the most revenue-generating stream, but it
certainly helps in generating sufficient amount of revenue to expand the company. Besides
providing a platform to trade cars, it also helps in boosting vehicle sales. Perodua can also
consider by producing self-branded spare parts which are able for sale at a cheaper rate.

2.4 THREATS
Threats is one of the element in SWOT analysis. It is an external factor that will affect the
business and increase the risk that have to face by the company. Threats is uncontrolled but can
benefit it through the contingency plans. External threats to the organization caused by the
environment factors such as social, inflation, new trends, current events, international events or a
new competitor in the market.
1. Rivalry competitors
The threats of company Perodua is rivalry competitors from local and foreign country. The
main competitors in Malaysia is Proton. This is because both company are produce affordable
car in domestic market. In Malaysia, one family will have more than one car, so they will more
prefer to the cars that are with the low price. Proton has more years of experience than Perodua
in automotive industry and Perodua is second largest automobile manufacturer after Proton.
There is a strong competition between their sales in Malaysia. Proton has introduced different
models of cars and will affect the sale of Produa. Proton get the Spray-Guided Gasoline Direct
Injection technology, which was co-developed by Petronas Research Sdn Bhd. This technology
will help to increase engine performance and improve fuel efficiency drastically and let Proton
have a different playing field and offer to customers. Perodua will observed the produce of cars
of the competitors and always up-to-date to the product for attract more customers. For example,
Perodua Myvi was the best-selling car company in Malaysia. Competition that come from
foreign automobile makers have bigger threat than the threats of Proton. The foreign vehicle
manufacturers such as Toyota, Honda, Kia and others. Customers want to get a better car with
the best price and the brand of foreign country will be a choice for them. However, Competition
is good to allow competitors to explore the market and enhance the quality of products.
2. Substitute of product or services
Next, threat of substitute products or services affected the sale of Perodua. Product
substitutes, which can affect and reduce the profit potential of company Perodua by placing
ceiling prices that other firms can charge (Porter, 1980). The sale of the company will having a
decline. The substitutes product of Perodua include car model, car spare part and others. Proton

is the substitute product of Perodua. The public transport vehicles also possible substitute of the
automobiles like busses, taxi, trains and airplanes. Besides, low cost substitutes being marketed
by Chinese manufacturers also make the decrease of the sale and increase the competitive
pressure. Perodua must spend time and a lot of money to overcome this barrier.
3. MARKETING IDEA
A company has to bring out ideas to market their product successfully. In according to build up
market position, Perodua company widely used the social media to market their car products, such
as Facebook, Twitter, Instagram and Youtube because every social platform has unique opportunity
to fascinate followers
Perodua company keep active in updating their official network on social media all the time. They
post and publish online brochures each time they organize campaign, promotion and events such as
festival contest, charity activities, free point, cash redemption and offer discounts. Followers across
all their social media networks could know about all the latest news in seconds.
Besides that, Perodua company shares video on the social media. The video they shared includes
Peroduas commercial video, video which featured their customers stories with Perodua and also
some events recorded video. Most of the video contents are great, short and clear, which could
grab their customers attention to the point effectively.
Moreover, Perodua company not only post and shares out online brochures and video on their
official social network, but also post photographs of their customer who participated in all their
events. The photographs were meaningful to all their events participant because those were
happiness and precious memories to them.
Lastly, Perodua company shows their concern to their customer through the official social network.
They take respond to their customers comment or feedback; try to understand what the customers
really want and what is important to the customers, so that they could enhance their car product
quality.
In conclusion, Perodua company will consistently hold a strong market position as long as they
keep on active to update their product news on social media, make more attractive video and take
note about their customers feedback.

4.CONCLUSION
In conclusion , SWOT analysis is useful for the organization to analyse their Strength
,weakness , opportunity and threats. It is a simple process and easy to form. SWOT analysis is
important to a company because it can help to maximise the strength and opportunity and
minimise the weakness and threats by making decision and strategy. Besides, the company will
more understand the organization and can plan for their future via SWOT analysis Perodua have
high market in Malaysia because of its strength which is Malaysias second national car
manufactuter after the low cost leader of Asia.Next, the strength of the Perodua company is
prices of their cars are low which is less than RM100K , this is the most attractive strength to the
customers.As the low price, the customer can afford the price especially the fresh graduate and
younger.
A coin has 2 side, the weakness of the Perodua Company is bad brand image and weak
management team. Through the Swot analysis, we found that a good brand image will attract the
loyal customer and build a profitable relationship with the customer, Not only that, a wellmanaged management team will affect the work done efficiently and Swot analysis is important
for management team and the company.
Next,.Perodua Company can know the threats of the company through the SWOT analysis. The
threats is an unfavourable trend and lead the company have a lot of challenges. Situations change with time
and an updated analysis should be made frequently. Perodua can know more about its competitors and
make the change in time to attract the customers. This also can improve the quality of the product and fulfill
the satisfaction of the customers. Nowadays, substitute product or services are increase day by day. Perodua
has to put more effort on the product that can be substitute by another product to increase the sales. This will
enhance the quality of the product and fulfill the satisfaction of the customers
. By conducting the swot analysis , they can recognize the Weakness and they can
minimizing the weakness and help us to manage the company more effectively and
efficiently.Through Swot analysis, we know that Swot analysis can help the organization
recognize the Weakness and they can minimizing the weakness and help them to manage the
company more effectively and efficiently. SWOT analysis also let Perodua more understanding
the trend of the market and should prepare the best marketing strategy for achieving their goal. In
addition, SWOT analysis can explore possibilities for new efforts or solutions to problems such

as Perodua can find out the threats and get the greatest market by the advertising and keep
changes in technology where possible. SWOT analysis very useful for a company to in
synchronizing the firms resources and capabilities with the competitive environment in which
the firm operates.