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1. Company Situation
i) Introduction and Brief Company Overview
As we probably are aware, we have well-established and biggest Malaysian-claimed
organization that includes in the matter of retailing and wholesaling which is MYDIN Mohamed
Holding Berhad and known as MYDIN. MYDIN is a popular brand grocery store in wholesale’s
Malaysia. It was worked as a holding organization which is a chain of mini markets, general
store, hypermarket, franchise stores, emporium, bazaar and 24-hours accommodation shops
through all Malaysia. There are more than 200 outlets operating currently and being the best
homegrown company in distributing the Halal goods and services. The organization was
established in 1940 and it’s situated in Subang Jaya, Malaysia. It has store areas in
Terengganu, Perak, Selangor, Kelantan, WP Putrajaya, WP Kuala Lumpur, Pahang, Melaka,
Pulau Pinang, Negeri Sembilan, Johor, and Kedah, Malaysia.
In addition, it also offered households products, soft-line products that comprise fabric
and textile products, hard-line products that includes hardware, electrical, stationery, porcelain
and toys, dairy products, and also drinks and beverages. MYDIN was starting the first operation
in Kelantan, where the company known for the competitive and affordable priced offers among
budget-conscious consumers. MYDIN also was considered as a supplier of goods to the middle
and lower class customers.
In MYDIN, they are particularly fond of the “Win-Win” principle, and seek to create an
environment in which their worker can fully improve their skills and contributing to the
company’s performance actively. Besides that, the consumers will be able to feel the 1
Malaysia’s atmosphere when they entered the MYDIN hypermarket. This is because of MYDIN
was attracting customers from the other ethnic groups as well.
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Last but not least, MYDIN business concept was different compared to Walmart in the
United States and Mohamed Mustaffa in Singapore because MYDIN’s business was focused to
wholesalers. All the MYDIN items packaged to meet the needs of wholesalers and retailers. At
the same time, MYDIN is a local dealer.
ii) Corporate Strategic Issue
The issue that faced by MYDIN is they got losses because of the weaker currency in
Malaysia. It also was supported by MYDIN Mohamed Holding Bhd, the main factor for their
losses is the weaker Ringgit against the US dollar not about the implementation of government
policies or the goods and services tax (GST). This is because the goods and services tax (GST)
had never been a reason for the MYDIN’s losses because this tax was only replacing the
previous sales and services tax.
Besides that, most of MYDIN’s products were imported and causing the MYDIN
hypermarkets nationwide had suffered losses due to the weakening Ringgit. This is because,
MYDIN need to pay more for the products it orders without increasing the price for the
customers. In addition, MYDIN is hard to increase the product price because they need to
through the junk process in the Anti-Profiteering Act, which is the MYDIN required to state the
detailed reasons with regard to why they had to increase the price for any product they have
sold. Thus, it was difficult to pass the costs to consumers because the weakening Ringgit had
already resulted in reduced the purchasing power in turn affecting the group’s business.
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2. Strategic Posture
i) Strategic History of the Company
Contrasted with his dad’s period, Dato’ Ameer Ali daringly opened the third branch which
did not concentrate on the Malay people group just, not at all like what his dad early
organizations in Kota Bharu and Kuala Terengganu. In this unique market condition, MYDIN has
turned into the store of decision profoundly inserted in the client’s heart, generally because of
the esteem for-cash items. He began his business in a leased 600 square feet working in Jalan
Masjid India, and later purchasing the building. The choice to purchase the building was
severely contradicted by his dad. Being an amazingly cheap man by nature, Mr. MYDIN
Mohamed did not need his child to settle on a monetarily unsound choice, as the building that
his child needed to buy would neglect to draw in clients because of its non-key area. In any
case, Dato’ Ameer Ali was resolved and exceptionally resolved to swim against the tide, and he
told his dad, that he will influence them to walk to this site so that they will come and shop in my
store. Furthermore, that he did without a doubt; clients walked a significant separation simply
to shop in his store. In 1998, as Malaysia was made up for lost time in the turmoil of monetary
emergency, MYDIN profited hugely and turned into the decision of numerous clients as they
turned out to be more cost cognizant because of the expanded costs of buyer items around
then. With the business slogan “why pay more”, MYDIN effectively situated itself in the
commercial center. Thinking back upon the difficulties and obstacles that he had experienced
while overseeing MYDIN, he submissively conceded that it was difficult to get financing for the
hypermarket since the brokers were hesitant to fund MYDIN Mohamed Holding hypermarket.
With extraordinary certainty, he opened MYDIN discount hypermarket in USJ 1, Subang
Jaya on 19 August 2006, alongside its nearest business equal, Giant. To the astonishment of
many individuals including the investors, this hypermarket was making RM 20 million for a long
time while its nearby rival just figured out how to round up around MYR 8 million. The result of
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his strong choice to broaden extremely paid off, and that is the thing that earned him the regard
of workers, companions and adversaries alike. With the advancement of its first hypermarket,
the financiers saw the achievement and increased more certainty on Dato’ Ameer Ali’s
administration style. Thusly, MYDIN’s scan for financers were finished, as there are numerous
financial specialists who are regularly eager to purchase an offer of MYDIN, since huge
numbers of them have the certainty to put resources into the organization.
Recognizing the great reaction that his privately-run company had gotten before from the
nationals of Terengganu in the 1980s, Dato’ Ameer again settled on another noteworthy choice
to open the second MYDIN hypermarket in Kuala Terengganu on January 2007, not as much as
a year after the opening of its first hypermart in Subang Jaya. As what he had estimated before
making the brilliant move, the hypermarket got a mind-boggling reaction from the neighborhood
clients from that point forward. Alluding to MYDIN’s hypermarket’s prosperity, Dato’ Ameer Ali
credits the general accomplishment to the uniqueness of its business arrange; an organization
that is essentially (if not by any means) concentrated on the value structure. Customers today
are exceptionally touchy to value vacillations and they need items that have an incentive for
cash. This successful promoting procedure mirrors his capability in being a market driven
pioneer who comprehends purchasers’ needs and needs, and obliges to fulfill them utilizing
MYDIN’s key showcasing approach.
ii) Company Mission or Strategic Vision
MYDIN’s vision is to be the world‘s leading distributor of competitive “Halal” goods and
services. When consumer, especially Malay people, they are more attracted to “Halal” goods
and services because it is Shariah compliance. It is also to avoid consumer from prohibited
stuffs such as usury, gambling and uncertainty. This vision will make people more comfortable
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and benefit with for shopping in the MYDIN since there will be zero curiosity about the products
and services.
Apart from that, MYDIN’s mission is to be the leading local wholesale & retail’s company
by providing the best value for money for the best assortment of goods, by providing service to
our customers and by striving for excellence. We also aim to inspire more Malaysians to open
outlets with our own proven success formula. From this mission, we can analyze that the
MYDIN’s mission have the components which are customer, product or services, market,
philosophy and profitability. Those are the components that highlighted in the mission. The
components’ mission is reflecting MYDIN in how they give services and sell goods towards the
consumer.
iii) Current Business-Level Strategy
According to Dato’ Ameer, today’s leader must be willing to change and adapt to the
current needs and requirements. In this sense, Dato’ Ameer strongly believes in making change
as effective as possible. For him, business must change with time. With a specific end goal to
transform, he sets aside opportunity to tune in to the perspectives of his staffs. In connection to
the valuing of merchandise, they know better about which things are not making any benefits.
Knowing the client is the way to MYDIN’s prosperity, as the business offers an exhibiting variety
of items to take into account the varying needs. As a market-driven pioneer, he effectively
applies showcasing logic in his everyday business exercises. His promoting allure can be
obviously seen from his amazing correspondence and open connection (PR) abilities while
engaging guests, providers, and clients from a huge number of foundations.
Furthermore, one can see the solid participation and joint effort among the divisions and
this is a sign of MYDIN’s powerful inner showcasing procedure among the workers from various
units. Thus, with the help of his representatives, this rationality is effectively changed and
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implanted in the authoritative every day working society. Dato’ Ameer is exceptionally proficient
at conveying his competency and capacity in promoting, which is exhibited through his
overseeing encounters. To Dato’ Ameer, MYDIN knows its clients extremely well and
concentrate on the lower and center pay gatherings.
Customization and adaptability in offering stock exists in MYDIN. For him, his adage is
everyone can purchase at MYDIN, and his business slogan called “why pay all the more” viably
situated and tied down MYDIN’s business systems. With reference to MYDIN’s buyer, Dato’
Ameer stressed on the significance of choosing the correct target advertise. With a specific end
goal to take into account distinctive market fragments such as lower to privileged shopper,
diverse client gatherings, distinctive ethnic and nationalities, he had thought of an arrangement
of various business configurations, for example, the hypermarkets, emporiums, accommodation
stores and smaller than expected markets, that ended up being to a great degree fruitful. Every
business design is modified and concentrates on fulfilling an unmistakable fragment of clients all
through Malaysia.
3. Environmental Analysis
i) Porter’s Five Forces
a) Rivalry among competing firm
The importance of this force is the number of competitors and their ability to threaten a
company. The larger the number of competitors, along with the number of equivalent products
and services they offer, dictates the power of a company. Suppliers and buyers seek out a
company’s competition if they are unable to receive a suitable deal. While the details into price,
switching cost, customer loyalty, promotions and distribution channel. Along with other major
hypermarkets such as Tesco and Carrefour participated in the TUKAR program under the
Economic Transformation Program. The company is responsible for training the shops and
providing assistance after transforming as mini marts along with Tesco.
b) Bargaining power of supplier
