SWOT Analysis

Strengths
Strong government support
Strong brand recognition
Competitively priced products
Opportunities
Government support
R & D development
Strategic alliance and joint ventures
Weaknesses
Reputation of poor product performance
and functionality
Lack of expertise
Over rely on the government
Lack of international operations
Threats
Competitors local & international
brands
Price war between competitors
Global financial crisis
Fast changing and advanced engineering
technology

Strengths

PROTONs strength depends on its competitively priced products. The company has strong
brand recognition where PROTON has become the national car brand owing to the long foothold
in the industry. Thereby, Malaysian has strong perspective towards its national brand especially
the patriotism that has familiar and loyalty to the brand. In addition, PROTON also has a strong
support and back-up from the government which would aid in extensive nationwide distribution
network in order to enhance brand awareness.
Weaknesses

Besides, PROTON also has contains numerous of weaknesses which the company must generate
several approaches in order to consolidate the image and build up confidence among government.
Lack of expertise which means that the company is producing limited products due to their
inability of the company such as their employees is lack of knowledge to innovate new car
models as well as lack of original product that they often produce product based on other
international leading brand which probably will prompt them to mess up their product lines.

Too rely on government support lead PROTON doesnt have arbitrary decision making. For
instance, PROTON once has losing its market leaderships since in 2006 due to their incapable.
PROTON would lose out to major players in the industry that contribute to serious influences on
the different of supply chain as well as the restraint of new barring entrance could lead the
company unable to be innovative and faces the challenges.

Due to the incapable of the company, the company would confront some issues of human
resource such as unable to retain and cultivate talent. Thus, this would lead PROTON to cost
greater of fabrication as well as the inexperience of employees will also generate low quality of
product. Therefore, it could jeopardize PROTONs reputation which might impact consumers
perspectives towards products. Besides, lacking of international operations will occurred to
PROTON owing to the intense competition in the global market as well as the quality issues of
the products.
Opportunities

The government support could lead PROTON to obtain better opportunity and favorable which
promote greater development. For instance, government would support PROTON as its partner
where employ PROTON as their vehicle in order to boost the sales of cars as well as create
awareness. Moreover, government support would aid the company in R & D development such
as the improvement of technological developments which might lead PROTON to enter new
markets and contribute to enlarge the business scales. Besides, the strategic alliances and joint
venture will also regarded as an opportunity where enable PROTON to create brand recognition
and accumulate experiences in order to produce better works such as generate more innovative
products.

Threats

Global financial crisis will impact the economy of Malaysia owing to the policy of AFTA where
lead PROTON has to confront the increases of competition between local and national markets
and the issues of lack of resources and expertise, technology backwardness as well as high labor
cost. Thereby, foreign investors could export their products as very low import tariffs due to the
AFTA policy and thus giving the rise to competitive prices whereby not conducive to PROTON
owing to the consumers could have variety of option to select the products at very affordable
prices.

Furthermore, the changing and maturing of the technology is the another factors that may impact
the companys development since the increase of competitors who entering the market would
brings about price wars in the industry. Therefore, this will lead PROTON to confront the issues
of lack of technology and quality issues.

STRATEGIC OPTIONS
Internal Strengths (S)
1. Strong government support
2. Strong brand recognition
3. Competitively priced products
Internal Weaknesses (W)
1. Reputation of poor product
performance and functionality
2. Lack of expertise
3. Over rely on the government
4. Lack of international operations
External Opportunities (O)
1. Government support
2. R & D development
3. Strategic alliance & joint 2. Price war between
venture
SO
S1, S2, O1, O2
= New product development
where the strengths could aid
in enhancing the PROTONs
R & D development.
WO
W1, W4, O2, O3
= Strategic alliance where
could aid PROTON in
improve the reputation of
product as well as to obtain
competitive advantage.
External Threat (T)
1. Competitors local &
international brands
competitors
3. Global financial crisis
4. Fast changing and
advanced engineering
technology
ST
S1, S3, T1, T4
= Market penetration where
create differentiate product
as well as set a competitive
prices in order to reach
audiences effectively.
WT
W2, W3, W4, T2, T4
= Internal development
where improve employees
skills in order to enhance
companys capability.