UBMM3013 Strategic Management

Cheetah Holdings Berhad

 Established in year 1979 Involved itself in diversified activities Has three small business unit (SBU).

INTRODUCTIO N

Cheetah Corporation (M) Sdn Bhd Cheetah Reality Sdn Bhd Cheetah Marketing Sdn Bhd

Has casual wear under its own brand name

Remote Environmental Analysis

1. Economic factor Inflation rates
Affecting apparel industry

Export oriented growth

High demand from major trading partners such as USA, Singapore, Japan, Thailand, HK, Taiwan & Indonesia Contributed 72.5% of Msias total trade (2007 annual data)

Opportunity & threat for apparel industry

2. Social factor
Age distribution
Msia population stood at 28.3 mil. (2010) Annual population growth rate Opportunity is 2.0% Age 15-64 is the highest for apparel among other age range(67.3%)

industry

Income level

Monthly gross income per household increased from RM 2472 to RM3011 Monthly gross income per household has the average growth of 6.8% per annum.

Industry Analysis
Strong Rivalry among the Existing Firms

Low product differentiation

Similar products offered Differentiation basis quality and design Marketing effort needed to differentiate the products

Numerous competitors
Growing local brands Padini, Miki, P&Co., Vinci, Seed, Rope, La Primavera and Monaco International licensed brands Nike, Reebok, Adidas Online retailers

 High Threat of New Entrants

Low capital requirements

Simple and insignificant scale factors and technology

Retail outlet set up cost is relatively low Easy access to the distribution channel Selling online Specialist store Store in shopping center ( increasing in number)

 Low Bargaining Power of Supplier

Numerous suppliers
(Suppliers to the apparel industry)

China, India, Vietnam and Indonesia

(Apparel industry as a supplier)

Retail sector order in large quantities, switching cost is minimal

High Bargaining Power of Buyers

Low switching cost Many close substitutes brands offering similar products High volume purchase United State (RM 2.27 billion), United Kingdom (RM 435 million),
Japan (RM 221 million), and Singapore (RM 218 million)

Internal Analysis: Primary Activities

Marketing and Sales
Correct target of psychographic and demographic segment High accessibility in Malaysia Different brands to serve different markets

Operations
Achieved cost leadership in manufacturing its goods Low labor costs Outsource

Internal Analysis: Supportive Activity

General Administration
Based on the mission: increase shareholders profitability. Expansion plan: signed a trademark licence agreement Woolworths plc of Britain

with

Human Resource Management

Mandatory Accreditation Program (MAP) Continuous Education Programme Employee Provident Fund Employees share option scheme (ESOS)

Cheetah Holdings Berhads Strategic Group Map

485 outlets located in department stores Own boutique Will widen its retail network The garden and Pavilion

Cloth Targeting all age Open new range group Clothing 3 retail outlet golf and leisure Both all for infants and Targeting gender group Casual, sports, age toddlers 150 consignment Mid garment end consumers More focus on young's Fashion accessories outlets Wide range of T-shirt eyewear market Antioni 550 to 600young and kid Sportwear shop in 2007 Targeting and casual wear Botton Causal wear B.U.M Equipment and Diesel Apparel, eyewear, innerwear, footwear and carry wear

market

Conclusion
Economies of scale & cost leadership Huge retail network Strategic management of the organization Government needs to provide assistance Implement bold, new strategies