SWOT Analysis•Strengths: attributes of the person or company that are helpful to achieving the objective(s).

•Weaknesses: attributes of the person or company that are harmful to achieving the objective(s).

•Opportunities: external conditions that are helpful to achieving the objective(s).

•Threats: external conditions which could do damage to the objective(s).

Analisis SWOT

Strength - KekuatanWeaknesses - KelemahanOpportunity - PeluangThreats - Ancaman

www.ideasformarketing.com

Strength

• Malaysia has good image as a modern Islamic country.

• Malaysian Halal Certification is perceived as more valid compared to non-Muslim countries.

• Malaysian products are perceived as safe & better quality like other ASEAN countries.

• Labor productivity is relatively high compared to other ASEAN countries.

Strength

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Strength• 57 negara OIC (Organisation of The Islamic Conference)

– 21% = 1 billion penduduk bumi– Sumber tenaga manusia

yang ramai• Sumber minyak dan gas asli• Sumber kewangan– GDP seluruh negara Islam USD 7.74 trillion

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Weakness• Problems faced dealing with Malaysian exporters – lack of

professionalism (lack of follow-up, seriousness, lack of correspondence, and very slow in response). Short-term perspective. SMI entrepreneurs lack legal/social/cultural environment in the importing countries.

• No consistent supply. • Sea transportation is not efficient.• Each entrepreneur markets its own brand. Do not have

branding which is unique for the country. • Although packaging is good, some products have the

choices of color which are not attractive.• Packaging does not guarantee long shelf-life.

Weakness• Cost of production is high. Analysis from the survey indicates

that the prices of products from Thailand are below the Malaysian cost of production. In general, the Malaysian products are about 20% more expensive.

• No strategic alliances like importers or distributors. No private agents to market the products due to the lack of entrepreneurial skills.

• Entrepreneurs do not have enough capital to effectively export their products.

• Not able to identify consumer needs in terms of taste and preferences.

• Almost all the local processed product type and categories do not follow market labeling requirements.

Weaknesses

• Kekurangan infrastruktur di kebanyakkan negara Islam

• Kurang kepakaran dalam semua bidang• Separuh penduduk OIC hidup dengan kurang

USD 2 sehari– 65% negara OIC mempunyai GDP perkapita

kurang daripada USD 5,000 (Malaysia : USD 12,000)

Weaknesess• Separuh penduduk OIC masih hidup

tanpa keperluan asas (rumah, makanan, minuman, khidmat kesihatan)

• Tiada kestabilan politik menyeluruh - peperangan

• Kelemahan urus tadbir sumber• Kurang kepentingan kepada

pendidikan– Hampir 50% negara OIC melaburkan

kurang daripada 1% daripada GDP untuk pendidikan (Malaysia : 8%)

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Opportunities

• 60% of the Saudi’s consumers are youth (< 35 years) and thus indicating a growing consumer markets and willing to try new products.

• Saudis’ consumers have purchasing power.• GCC is a growing region. Average GCC (8%); Saudi Arabia (10%).• Rising costs of production in EU & USA.• Tourism industry in Malaysia contributes to developing

awareness among Arab consumers who have been to Malaysia.• Strong government supports for SME development in food

processing • Strong government support in halal products and halal-hub

centre

Opportunity

• Peningkatan keperluan makanan dunia– Kebanyakkan negara Islam masih berasaskan

ekonomi pertanian– Hub makanan halal yang diyakini bersih dan

berkualiti

• Capaian perdagangan yang besar

http://en.wikipedia.org/wiki/Organization_of_the_Islamic_Conference

Threats • Stiff Competition of the Malaysian food products

from Thailand, Indonesia and the Philippines. The prices of the Malaysian products are generally higher due to the higher production costs.

• Subsidized tariffs for air transportation by Thailand.

• Chinese products invading the markets, translated into cheaper prices.

• With declining USD, the products from Malaysia are more expensive.

• Weak R&D that match SME requirements

Threats

• Islamophobia selepas peristiwa 11 September• Penekanan kepada pembangunan fizikal

berbanding pembangunan modal insan• Perang menentang negara Islam• Pencemaran alam sekitar

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ACTION PLAN

1. • Identify relevant market segment

• Introduce food products that are more appealing to younger generation (e.g. trendy packaging)

• Target the promotion to younger generation (e.g. associated with sport activities, school children)

• The younger generation tends to be more open & willing to try new products

2.

• Promote products produced by SMEs that have sufficient capacity to meet importer demand

• Encourage SMEs to collaborate, form a consortium to achieve the size needed to meet importers demand.

• Most SMEs are under capacity to venture into

export markets

3.

• Improve the professionalism of the Malaysian entrepreneurs

• Training in Entrepreneurship Development especially in export market promotion, ethics, and legal-cultural environment

• Lack of professionalism among Malaysian

exporters (communication and promises)

4.

• Develop structured human resource in terms of functionality

• Restructure human resource to have staff that are competent (e.g. export activities should undertake by export manager, quality control personnel to ensure consistent product quality)

• Most SMEs do not have structured functions in the

human resource set-up

• 5.

• Upgrade processing technology

• Upgrade the processing technology of SMEs through government incentive schemes (e.g. soft loan, tax deduction, technical support)

• About 50 % of SMEs surveyed still use manual or semi-automated processing technology.

• SMEs must utilize relevant processing technology in order to be competitive.

• 6.

• Develop a systematic raw materials procurement system

• Establish contract farming for raw materials supply

• Train SMEs entrepreneurs in price forecasting • SMEs are facing inconsistent supply and quality

of raw materials as well as fluctuation of in the price

• 7.

• Identify critical success factors of companies that are successful in exporting food products

• Training in Entrepreneurship Development especially in export market promotion, ethics, and legal-cultural environment

• Lack of professionalism among Malaysian exporters (communication and promises)

• 8.

• Promote strategic alliance between SMEs and LEs • Promote contract manufacturing between SMEs and Les• Promote joint venture to reduce cost • Joint promotion between SMEs and distributors in

importing countries • In Thailand, food manufacturing SMEs aligned

themselves with large Enterprises (LE) for exports market.

• 9.

• Formulate Malaysian food branding

• Develop a ‘unified brand’ for all Malaysian food products produced by new SMEs players

• Food products presently marketed by the

individual brands. Global brand helps to reduce the advertisement and promotion cost.

• 10.

• Identify a reliable private distribution agent for marketing purposes

• MATRADE must develop database on marketing agents

• MATRADE should develop criteria in selecting reliable export agent

• Promotion by agents and product distribution was identified as the most serious marketing problem.

• 11.

• Position SMEs food products as premium products

• Enhanced joint promotional effort by manufacturers and distributors to support product positioning

• In general the production costs of Malaysian food products is 20 % higher than Thailand and Indonesia

• 12.

• Establish food products Distribution Centre • Establish a private trade representative in Dubai (as a

gateway) by a consortium of SMEs • Need to establish a Distribution Center - acts as a

distribution agent. • MATRADE needs to identify reliable

distributors/importers as agents. • Strategic partnership as a pushing factor in marketing

the products.