UNIVERSITI MALAYSIA PERLIS

PUSAT PENGAJIAN INOVASI PERNIAGAAN DAN TEKNOUSAHAWAN (PPIPT)

BFT 335
INTERNATIONAL BUSINESS ENVIRONMENT

PORTERS FIVE FORCES FRAMEWORK & VRIO

INDUSTRY: PET SHOP IN KANGAR

LECTURER: RAZIFF BIN JAMALUDDIN

GROUP MEMBERS:
NAME
NATASHA AIMILFITREEN BT MOHD RAZIF
NOOR FATINFADILA BT ABDULLAH
NUR SYAMILLA BT ABD MALEK
PUTERA ASYRAF BIN ZULKEFLI
JANNYFFER SELVAM MARIAN

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MATRIC NO.
131241551
131241632
131242088
131243121
131240634

Pet Shop Industry in Kangar Town - Synthesis based on the 5 forces framework.
For this mini research, we have chosen the Pet Shop Industry in Perlis Town. Realizing
the fact that there is demand in some services provided by the particular pet shop in other places,
we might be able to open our own pet shop in the future. The other factor that affects our
decision is that there is less amounts of pet shops in Kangar area. Another element that needs to
be stressed in this decision is the variety of services provided currently which has become the
opportunity for us to open a pet shop in the future. The pet shops in this research included the
Aci Pets and Aquatic, Pusat Aquarium Ah Huat, Hong Yok Pet Shop, Indy Pet Shop and Zura Pet
Shop.
Before we go further, let us first analyze the five forces framework in the industry. We
had conducted an eye to eye survey among few pet shops in Kangar area. Firstly, the presence of
competitor is less. It can be seen that the amount of pet shops in the area is less to cater to the
amount services and product demanded. This can be seen that most of the pet shops are focusing
on limited animal food products and basic equipment which solely focuses and related to fishes,
dogs, cats, bird and chicken. Most of the pet shops are selling a somewhat similar product only.
We try to enhance our pet shop in the future by enhancing our product to not only focus on the
product that has been provided in the market. For example, we try to enlarge and expand the
product line of products we keen on selling. On the other hand, we are driven to provide services
too because throughout the survey, there is only one pet shop that provide pet hotel service and it
only focuses on cats. Thus if we go generally for other pet hotel services we may be able to run
the business smoothly. This can be seen that if we enter the market, we may be able to vary our
product line and services that is less in competition.

Secondly, lets have a look on the threat of entrants in the industry. As we go through one
by one pet shop in Kangar, it can be concluded that the distance from one pet shop to another is
quite far and separated. This has been an opportunity for us to open one which is distant from
other pet shop. Thus the threat of entrant is less. Another element is that, we can attracr the
consumer by providing a slightly less pricy product to the market in order to attract the customer
attention and lessen the amount of threat by other pet shop. Since we keen on providing some
services rather than only focuses on products, it can be seen that the threat of entrants are loosen
a little bit by the less amount of services provided by other pet shops in Kangar. Next, the
potential profit that would be generated is quite high. This is closely related to the amount of
demand of services that we keen on providing that would be able to cover the cost of capital.
Hence, return on investment on the business in this industry is truly productive.
After that, to open this business in this industry, it is not that hard to find the potential
supplier of equipment and products since most of them are located near to Perlis are which arwe
Thailand, Kedah and Penang. For some luxuries services, we might need to import them all from
outside of the country since it is offered less locally. It is still cost efficient for us to run the
business because, the major products and services provided are closely related to the local
supplier. Only for some selected products and services, we might need to outsource demand of
product and services from the foreign market. By doing this, for some selected products and
services, we can charge a slightly higher reasonable price.

Next we will discuss on bargaining power of buying in this industry. Throughout the mini
research, it can be concluded that if we provide slightly different type of products and services
with lesser than other competitors. By doing this, we may be able to attract more customers not
only in Kangar but also from the other places around Perlis. This only can happen by the unique
products and services provided to the customers. For example, selling animals such as rabbit,
hamster, snake, fish, and provide pet hotel service such as pets grooming and accessories that
caters to variety types of animals and different variety selection pet hotel services. Besides, we
can enhance the services by providing advance consultation and advices. A part from that, we
may offer reasonable price parallel to the product and services that we will provide to the
customers.
But since we have these few competitors, the threat of substitutes needs to be stressed and
focus on our products and services quality, performance of customer service, reasonable products
and services price also can enhance creativity in marketing the products and services into the
market. Besides, we also need to give special attention towards identifying and developing
strategies to counter it in the long term to survive in the market.
Overall, for us to run a new pet shop in Kangar it is possible and able to be succeeded in
this industry. This is because the factors discussed and analyzed throughout the survey based on
the pet shops in Kangar. We found that there are less competitors, distant of geographical to each
of the pet shops, higher demand from customer which is provide slightly different products and
services from other competitors also we can be great substitutes that provide unique products and
services to customer. Nevertheless, we strongly believe that to open new pet shop in this industry
in Kangar will be successful and gain a stable profit in order to survive in this market. Also we
can be the main pet shop that providing variety of products and services to the customers.

The VRIO Framework

VALUE
Do the resources and capabilities add value?
According to the analysis, the resource of pet shop industry in Kangar is considered valuable.
This is because the Pet Shop increasing differentiation of the product by decreasing the price of
the product. They help the pet shop organization to increase the perceive customer value. At the
same time, the pet shop industry in kangar doesnt constantly changing their internal and external
condition and this makes business more valuable.

RARITY
How rare are the valuable resources and capabilities?
Resources that can only be acquired by one or very few are considered rare. The pet shop
industrys resources in kangar have granted temporary competitive advantage because it acquire
by one or very few that are considered rare. On the other hand, most of the pet shop in kangar
uses the capability in the similar way and also have the same resource and it leads to competitive
parity. Pet shop industry in kangar using identical resources to implement the same strategy and
no organization achieved superior performance.

IMITABILITY
Why is imitation so difficult?
The pet shop industry in kangar is costly to imitate. This is because of several reasons below:

Historical Condition

Resources of pet shop industry were developed due to historical events and over a long period.
And it makes the resources costly to imitate.

Causal ambiguity

The pet shop industry couldnt identify the particular resources that are the causeof the
competitive advantage

Social complexity

The resources and the capabilities of the pet shop that are based on companies culture and
interpersonal relationships

ORGANIZATION
How is a firm organized to develop and leverage the full potential of its resources and
capabilities?
The pet shop industry in kangar has a well-managed organization. This is because, the firms
systems, processes, policies, organizational structures and cultures are well organized.