1.

OVERVIEW OF PERODUA BERHAD

Perodua Sdn Bhd established in 1993, Perodua began its journey as the second national car company to
serve the nations need for an affordable and industry leading quality compact car. From the ever popular
Perodua Kancil introduced to the Malaysian market in August 1994, Perodua has developed into a strong
and dynamic group with a comprehensive range of vehicles renowned for its quality and unsurpassed
reliability. Besides manufacturing cars, Perodua also produce engine component parts for both local and
international carmakers, which helps build the automotive industry in Malaysia. Our vendor development
program helps over 100 local parts suppliers improve component quality, cost and delivery.
To date, Perodua has 41 branches and 139 sales dealers nationwide to serve its customers efficiently. It
also has 46 service branches and 124 service dealers outlets throughout Malaysia for customers
convenience. Perodua vehicles are also sold in other countries such as United Kingdom, Singapore,
Brunei, Fiji, Nepal and Sri Lanka. Save for the sales and service operations, which exist in all states
nationwide, PERODUA operates from its headquarters in Sungai Choh, Rawang, and Selangor. However,
Perodua strive to place people first in everything it does. Peroduas brand statement building Cars, People
first stresses the importance of tailoring the product and services to individual lifestyles. It also highlights
the role the company plays in empowering the employees and partners through industry leading training
and skill transfers. Our successes are due in great part to the fantastic team at Perodua, who are passionate
about the Company and the work they do. After 17 years and over 1.5 million cars sold, Perodua has over
10,000 people who build cars to move Malaysia. And you can be a part of our team helping build cars that
inspire a passion to drive (Perodua, 2013).

Table 1: Perodua Corporate Information

Vision statement

To be the most preferred automotive brand renowned for products and

services of excellent quality which contributes to the development of
the nation

Mission statement

Professionalism in all our operations

Efficiency in utilizing technologies and available resources
Resilience in meeting our challenges
Optimization of customer satisfaction and benefit to stakeholders
Dedication towards social responsibility to the community, the
environment and development of competent workforce
Uniqueness in our products
Aspiration to glorify the name of Perodua

Objectives

Goals

Purpose of business
Key success factors

To introduce an economical and fuel savers cars

To maximize the safety aspect of Perodua
To have a knowledge of technological and industrial ability within
automobile industries.
To developed automobile industries preparation and manufacturing
industries.
To strengthen the manufacturer competitive of Perodua industry.
Aims at profitability and quality service delivered.
Keeping production on track, help to improve the productivity of the
manufacturing operation.
To develop work force, example recruiting hiring and training.
Having competent and qualified employees with basic automobile skills
and knowledge.
Conducting special youth hiring program security and trained in house.
The purpose of a business is to create a customer
Generate return on investment to shareholders
Building and maintaining an exclusive relationship with our suppliers
on a daily basis
Recruit and train staff, friendly and dedicated to serve customers in
mind

Chart 1: Perodua Shareholders

SHAREHOLDERS

MITSUI LTD; 7%
MBM RESOURCES; 20%
UMW CORPORATE; 38%

DAIHATSU MOTOR DAIHATSU

LTD; 20% MALAYSIA; 5%
PNB EQUITY RESOURCES ; 10%

Approximately Perodua has a workforce of over 10, 000 people nationwide. These employees can make a
production capacity to produce 350, 000 units in a year, on a two shift cycle. The company has 180 sales

and 170 services vendors across the all over nation. Perodua exports its product to 7 overseas destination
including United Kingdom, Nepal, Singapore, Mauritius among others (Perodua, 2013).

2.0

PERODUA SWOT ANALYSIS

STRENGTH
Perodua is one of the most dominant companies in automotive industry in Malaysia. It has done a lot of
improvement in terms of additional unique features in cars that it manufactures. Among the strength
Perodua company have are it is the second largest automobile manufacturer after Proton in Malaysia.
Which produce a unique and an attractive small car as preferred by customer. It also works hard and
doing a lot of research and development in fulfilling the customers need and preferences of a car. Next is
among the largest small car manufacturers in Asia. It is listed as largest small car manufacturers in Asia
which produces small cars with low cost. And finally it has an image created as manufacturers of quality
and reliable cars. It has a collaboration with Japanese company Toyota which gives it the image of a
quality brand. Toyota is a well-known car brand which produces car with very high quality and can be
reliable.

WEAKNESSES

Perodua even though produces car which is unique and attractive but they fail to pay attention to its safety
features. Perodua are known for low safety because of their design. Besides that, they also rely heavily on
Toyota any type of upgrades be it in terms of design. In addition to that there is a very limited reach in the
world market for Perodua cars because it does not have a huge scope to compete in world market. If
compared to world famous cars like Mercedes and so on there is a lot of improvement that should be done
by Perodua to reach that stage especially in terms of quality.

OPPORTUNITIES
Peroduas home markets are getting saturated therefore they should be looking at newer markets where
they can market their cars more aggressively. Besides that, the increase in fuel price will make people
prefer smaller cars thus Perodua will benefit from the change. Perodua produces small compact cars
which will be peoples choice because of increasing fuel price. Having small cars can help them save a
lot. And finally, Perodua can look for new market which is more favorable for small cars.

THREATS
The threats that Perodua faces are, Proton which is the competitor can overtake in terms of R&D
investments because of higher investment capabilities. Proton which is funded by government can easily
do a research as it does not have any financial implication. Next there are substitutes with low cost being
marketed. Chinas booming economic development have affected many country, China is now
manufacturing small cars with low cost which is a direct competition to Perodua cars. And finally, the
economic situations are leading to lower sales for all automobile manufacturers.

3.0

PERODUA MARKETING MIX

PRICE
The Perodua concept is based on relatively affordable standardize price. Perodua sells variant of vehicle
with an indication of price not exceed of RM 60,000 to maintain the affordability, but yet delivering
quality and style at the same time. The price of the vehicle may change due but not limited to change in

government approved net selling price, standard accessories prices, duties and taxes and freight rates etc.
The cost of this increase shall be included into the net price.

PLACE
Perodua has 39 sales branches and 140 sales dealers nationwide to serve its customers efficiently. It also
has 41 service branches and 120 service outlets throughout Malaysia for customers convenience. Perodua
vehicles are sold in countries such as the UK, Singapore. In addition, Perodua also exports their cars to
Mauritius, Brunei, Sri Lanka, Cyprus, Malta, Egypt, Nigeria, Senegal, Lebanon, Qatar, Saudi Arabia,
Syria, Nepal and Fiji in small numbers by local dealers.

PRODUCT
The Perodua brand is identical with quality, affordability and fun-to-drive cars, since PERODUA started
in Malaysia, its target market is mainly the local consumer, but also targeting new emerging international
market, for instance; Indonesia. Perodua produce mini cars that are targeting to those middle-income
families. Hence, the three strong models can show this: Myvi, Axia and Alza are produced by Perodua.

PROMOTION
Perodua promotional efforts are mainly through its brochure, showroom, the Perodua sites, and
promotional campaigns that add value to the consumer. For instance, Perodua provide the latest service
centre with body repair and paint services at the nearest convenient place. The service package is charged
at highly affordable price with the quality of services to keep your vehicle safe and in tip-top condition.
The value added as Perodua also provide the key drop boxes to store your keys and the complete form,
imagine how relief and peace of mind if your car broke down or if there is any kind of accident. More
promotions such as customer satisfaction survey lucky draw, GPS navigator upgrade, and express part
delivery.

4.0

OVERVIEW OF HONDA MOTORS

Honda was founded and named after Mr. Soichiro Honda. As a teenager, Soichiro Honda apprenticed at a
car repair shop in Tokyo, where he honed his talents at technical innovation, before embarking on
numerous projects related to engineering and automobiles. After World War II, Mr. Honda started a
business which focused on fitting war surplus engines to bicycles, and the design and manufacture of
products that appealed to him. With Mr. Takeo Fujisawas joining to help on the commercial side, the pair
laid the foundation for what was to become a major international conglomerate.

Honda made its foray into Malaysia in the 1960s, appointing Kah Motors Sdn Bhd as its distributor. In
2000, Honda Motor Co. Ltd. of Japan partnered DRB-HICOM Berhad and Oriental Holdings Berhad to
form Honda Malaysia Sdn Bhd. In 2003, the company set up a manufacturing plant in Malacca. Spread
over 80 acres of land, the Pegoh Plant has a total built-up area of 13 acres and rolled out its first car, a
CR-V, in January 2003 . By 2010, Honda Malaysia had managed to sell over 225,000 cars.

Table 2: Honda Corporate Information

Vision statement

To a world class manufacturer Honda two wheeler power train and

components

Mission statement

Fundamental Beliefs

Maintaining a global viewpoint, dedicated to supplying products of the

highest quality, yet at a reasonable price for worldwide customer
satisfaction
Initiative
Initiative means not to be bound by preconceived ideas, but to think
creatively and act on your own initiative and judgment, while
understanding that you must take responsibility for the results of those
actions
Equality
Equality means to recognize and respect individual differences in one
another and treat each other fairly. Our company is committed to this
principle and to creating equal opportunities for each individual. An
individuals race, gender, age, religion, national origin, educational
background, social or economic status has no bearing on the
individuals opportunities

The Three Joys

Trust
The relationship among associates at Honda should be based on mutual
trust. Trust is created by recognizing each other as individuals, helping
out where others are deficient, accepting help where we are deficient,
sharing our knowledge, and making a sincere effort to fulfill our
responsibilities
The Joy of Buying
The joy of buying is achieved through providing products and services
that exceed the needs and expectations of each customer
The Joy of Selling
The joy of selling occurs when those who are engaged in selling and
servicing Honda products develop relationships with a customer based
on mutual trust. Through this relationship, Honda associates, dealers

Values

5.0

and distributors experience pride and joy in satisfying the customer and
in representing Honda to the customer
The Joy of Creating
The joy of creating occurs when Honda associates and suppliers
involved in the design, development, engineering and manufacturing of
Honda products recognize a sense of joy in our customers and dealers.
The joy of creating occurs when quality products exceed expectations
and we experience pride in a job well done
Committed, Teamwork, Lead Culture, Proactive, Integrity, Excellent

HONDA SWOT ANALYSIS

STRENGTH
The strength of Honda is they fully promoting eco-friendly technology cars in the market according the
market trend. Honda is following the current saving cost market trend to introduce more save fuel car to
change customers beliefs. There are two hot model of eco-friendly technology car which is Honda
Hybrid and Honda Crz. Honda Crz is helping Honda to win the best car of the year in Japan and Honda
company reputation is getting up through this news.
WEAKNESSES
High maintenance fee for Japan car is always the weakness of Honda. This will influence those
consumers to take more consideration and compare to others brands of car. Second, Honda has the
problem of recall number of cars for brake problem and this already influence their reputation. It also
affect Hondas sales drop and increase the manufacture cost when recall the car.

OPPORTUNITIES
Honda has the best opportunity to use its R&D in producing cars according to the needs and demands of
their customers. This only possible because of the increase in demand for less pollution. Besides that,
various Honda competitors model are caters the lower segment. So that, the fuel efficiency is now as one
of the best opportunity which can results in the best productivity for the company.
Honda also can increase its production by focusing on sales and research and can gain more popularity by
doing better research and development.

THREATS
One of the major threats is the economic slowdown which is all the external changes for instance taxes,
politics as well as government are the major threats for Honda companies. Another threat is the lower cost
competitors which is consider as an important threat for this company.

6.0

HONDA MARKETING MIX

PRODUCT
Honda defines itself as a forward-looking mobility company that develops a wide range of products
including motorcycles, automobiles, power products (such as lawnmowers and motorboats), aircraft
engines (HondaJet), humanoid robot (ASIMO), fuel cell vehicles and solar films. Honda prides itself on
developing cars that are more than just a means of transport. Its products are designed to provide
customers the joy of driving and ownership. Advanced futuristic designs and performance are aspects that
Honda emphasize on to differentiate itself. All Honda cars feature the i-VTEC engine, which is well
known for its perfect balance of high performance and good fuel efficiency two qualities that are
difficult to marry in a single engine.
Honda Malaysia also managed to reach another milestone in the Malaysian automotive as the entry model
hybrid, the Insight, managed to receive a record of 2,336 units of registration in the span of five months.
Besides the four main models that are assembled locally, Honda Malaysia also markets the Honda Jazz

(CBU from Thailand), Civic Type R, Stream RSZ (both CBU from Japan) and Freed (CBU from
Indonesia) models to cater to the diverse needs of their wide spectrum of clientele.