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Analysis Of Perodua CASD

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Autor:  fredokage777  15 November 2012
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conventional advertising measures (immediate impact on sales) and managers can avoid the predicament arising from a mismatch of campaign objectives and evaluation measures.

4. Evaluation. Traditional short term measures, such as incremental revenue, are inappropriate. Users of social campaigns must develop new approaches to evaluate long term, company oriented and non-economic objectives.

5. Limitations. Social campaigns do not appear to be particularly effective in achieving short term economic benefits such as increasing sales or differentiating products. A social campaign’s message is misinterpreted and lastly it might be difficult for a company to end affiliation without negative repercussions.

ANALYSIS OF THE CASE

Industry Analysis

Malaysia had developed the automotive sector as a platform for growth. The government imposed extremely high import taxes (60 – 300%) on fully imported vehicles and higher excise taxes on locally assembled foreign – branded vehicles than on national cars. Because of this Perodua and Proton gained price advantage over foreign competitors and they accounted for 90% of vehicles sold in 1998.

However, the tariff deregulation agreement among ASEAN member countries meant that Malaysian automotive industry would soon undergo greater trade liberalisation and as a result Perodua and Proton will lose their price advantage leaving them to face greater competition.

Company SWOT Analysis

Strengths

 Price Advantage. Perodua gain a competitive advantage in in cost by allowing Japanese partners to control manufacturing and engineering operations. Their business venture with Daihatsu ushered in Japanese best practices that eliminated over production, lowered inventory levels, and reduced costs and any non-value-added value components found in the system.

 Good competitive positioning post trade liberalisation. Perodua’s strength comes in the small cars segment and with Daihatsu’s greater role in shaping the company’s performance for trad

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