ENGLISH 2&

EFFECTIVE PUBLIC COMMUNICATION

ANALYSIS OF 2 BUSINESSES OF SIMILAR INDUSTRY IN DIFFERENT

GEOGRAPHICAL LOCATIONS

MELVYN POHCHLOE SIMRACHEL YEOKAREN CHOOLEE ZHI ANG

HISTORY OF TYRE DEVELOPMENT

Standard type of TiresBridgestone, Goodyear,

MichelinMalaysia – third largest rubber manufacturer

Modern pneumatic tiresSynthetic rubber, fabric & wire

Inflatable structure with doughnut-shaped

body

During the 1800sBands of leather Then iron, steel, placed on wooden wheels

DECRIP

DESCRIPTION OF THE

BUSINESS

YUEN CHUAN HUAT

VS HUP SHUN

MELACCA

KUALA LUMPUR

Yuen Chuan Huat Tyres & Batteries Sdn Bhd

LOCATION :

4940, Jalan Semabok, 75050, Malacca,

Malaysia

Founded in the year 1992 by Yuen Chuan Huat

Used to learn about tires and car care

Opened up his own business

Running the business with his wife

Yuen Chuan Huat

Home-based business Single branch 5-8 local workersOpens daily from 7am

to 7pm

CustomersAround 10-15 customers per dayUsually local adultsOf different racesThrough recommendation of customers and

friendsDaily revenue is around 3-4K

Description

Main Products & Services SoldProducts :

Tires, Rims

Services : Tyre

services

Hup Shun Tyres Auto Car Care Sdn Bhd

Location :

No.11,JLN PJS 11/7 Bandar Sunway 46150 Petaling Jaya Selangor

Hup Shun• Founded in the year 1995 by Mr. Ti

• No specific reason on why he started the business

• Used to work for his brother under the same industry

• Decided to start his own business

• Managed by his son, Mr. Ivan

• Opened up another branch

-Around 20 customers per day-Usually businessman-Daily revenue is around 5-10K-Through media, magazine and newspapers

-2 branches-10 local worker 1 foreigner-Opens on Monday –Saturday 9am to 6:30pm

Products: Tyres, sport rims, exhaust systemsServices: Tyre services

Competitors of Yuen Chuan Huat Tyres & Batteries Sdn

Bhd

SinWuFu Enterprise Sdn Bhd• Selling tyres and

providing tyre services

• Provides similar services to Yuen Chuan Huat’s

• Reseller for the brand Bridgestone and Silverstone

Chin Thye Tyre Trading Co.• Sell tyres, provides

tyre repairing serives and also care maintenance services

• located 500m aways from Yuen Chuan Huat

Soon Hoe Tyre Service Centre

• A very old shop which provides tyre servicing

• Reseller for Silverstone tyres

STRATEGY EMPLOYED BY Yuen Chuan Huat Tyres & Batteries Sdn

Bhd

Product Variety• Products of tyres and sport

rims are always available in stock.

• Varieties of tyres and rims to be chosen from

Advertising• Awards and certifications received

are displayed in the shop

• Attract customers as it shows high credibility

• Prove that the company is trustable one

Pricing• Reasonable and affordable

• Standard price

• Does not raise up the price to earn eatra profit

Competitors of Hup Shun

Tyres Auto Car Care Sdn bhd

Kim Heng Tyre Services & Car Care

Sdn Bhd• Certified tyre reseller of Michelin

• Main competitor to Hup Shun

• Large variety of tyres

• Less sports rims compared to Hup Shun

Sibujaya Auto Car Care Plt• Reseller

mainly for LingLong Tyres

• Provides top to toe car care services

Hoe Hing Tyres

• Small Tyre shop located right next to Hup Shun

• Sells tyres and sports rims

STRATEGY EMPLOYED BY

HUP SHUN TYRES AUTO

CAR CARE SDN BHD

Products Variety• Large variety of sports rims and tyres

• Big brake kits, car body parts, suspension and exhaust systems

• Price are reasonable and standardized

• Official sole distributor for the official Vossen Wheels and BC Forged Wheels

High Performance Car Repair &

Services• Provides the best services and

maintenance services for customers

• 9 out of 10 workers are local which can communicated well with their customers

• Workers are highly trained

Advertising• Promotes company through Facebook

pages, own public website, magazines, newspaper and articles.

Comparative summary

DifferencesYuen Chuan Huat Differences HupShun

1992 Year Founded 1995

Yuen Chuan Huat Founder Mr T

4940, Jalan Semabok, 75050, Malaka, Malaysia

 

Location No.11,JLN PJS 11/7 Bandar Sunway

46150 Petaling Jaya Selangor

Around RM 3 to 4 thousand

Daily Revenue Around RM 5 to 10 thousand

0 Branch 1

2 Units of shops 3Less than 10 Number of

employees11

Around 15 a day Number of customers

Around 20 a day

3-5 Number of competitors

More than 5

7am-7pm Business Hour 9am-6:30pmThrough

recommendation of customers and friends; Awards

received

Advertising Through media, magazine and newspapers

More improve services and quality of

products

Future plans Extend the business and improve service

and quality of products

Sports rims, different brands of tyres, car

batteries, tyre services

Type of products and

services

Different brands of tyres, car sports rims,

exhaust systems, suspensions, tyre

servicesLead by owner and his

wifeLeaders Lead by the owner

and his son

Yang Chuan Huat

Similarities Hupshun

1 Number of founders

1

Family influence What prompted to start this

business

Family influence

tyres Main products tyres

Businessman Main customers Businessman

Provide good services and

quality products

Strategy Provide good services and

quality products

Similarities

Home base Business operation

Home base

Around 300k including

machinery

Capital is required to start this business

Around 300k including

machinery

Depends on the season

Best seller Depends on the season

Provides professional, consistent and quality services

More affordable prices More variety of tyres

and sport rims compared to Yuen Chuan Huat

Larger shop Good advertising

ConclusionHup Shun Tyres Auto Car Care Sdn bhd is more commercially successful

Obstacles Faced By New Businesses

Lack of capital to

start business

Competitors

Location and Usage of Space

Monopolistic Competition New firms can enter and exit the

market easily Weak pricing power

Nature of Their Markets

RECOMMENDATIONS

Active in promoting Should distribute flyers to housing

area nearby

Investing in newspaper advertisement to increase publicity

Yuen Chuan Huat Tyres & Batteries Sdn

Bhd

Regular customers Ensure company does not only receive

business from regular customer but also first-timers

Expand business by branching out in different area

Size of shop Limits number of vehicles that can fit

in

Insufficient space to park

Extend the size of shop lot so that it is more spacious

Waiting Area Facilities No air-conditioned waiting area for

customers

Limited sears for customers to wait for services

Install an air-conditioner in waiting area

Put more seats for waiting customers

Waiting duration Keeps customer for waiting to get

their vehicles fixed will waste a lot of time

Hire more workers

Hup Shun Tyres Auto Car Care Sdn Bhd

Location Parking problem

No space to park their vehicles

Make specific land of space mainly for their customer

Employees’ Performance Train their employees to a much

qualified and better standard to compete with others

Improve efficiency to gain more trust from customers

Economicsonline, (2015) Perfect competition [Online]. http://www.economicsonline.co.uk/Business_economics/Perfect_competition.html (viewed on 19th of November)

Facebook, (2015) Hupshun Tires [Online] https://www.facebook.com/HupShun-Tires-195131380566062/

(viewed on 18th of november 2015)

Hupshuntyres ,(2015) Hupshun Tyres Auto Car Care Sdn Bhd [Online] http://www.hupshuntyres.com/ (viewed on 21st of November 2015)

Tyrepress, (2015) Malaysian tyre market to grow 9% (CAGR) in next five years [Online]. http://www.tyrepress.com/2014/11/malaysian-tyre-market-to-grow-9-cagr-in-next-five-years/

(viewed on 20th of November 2015)

References