SWOT Analysis

•Strengths: attributes of the person or

company that are helpful to achieving the
objective(s).

•Weaknesses: attributes of the person or

company that are harmful to achieving the
objective(s).

•Opportunities: external conditions that are

helpful to achieving the objective(s).

•Threats: external conditions which could

Analisis SWOT
Strength - Kekuatan
Weaknesses - Kelemahan
Opportunity - Peluang
Threats - Ancaman

www.ideasformarketing.com
 Strength
• Malaysia has good image as a modern
Islamic country.
• Malaysian Halal Certification is perceived as
more valid compared to non-Muslim
countries.
• Malaysian products are perceived as safe &
better quality like other ASEAN countries.
• Labor productivity is relatively high
compared to other ASEAN countries.
 Strength

http://www.opencongress.org/articles/list?month=1-2007
 Strength
• 57 negara OIC (

http://www.opencongress.org/articles/list?month=1-2007
Organisation of The Islamic Conference)

– 21% = 1 billion penduduk bumi

– Sumber tenaga manusia
yang ramai
• Sumber minyak dan gas asli
• Sumber kewangan
– GDP seluruh negara Islam USD 7.74 trillion
 Weakness
• Problems faced dealing with Malaysian exporters – lack
of professionalism (lack of follow-up, seriousness, lack
of correspondence, and very slow in response). Short-
term perspective. SMI entrepreneurs lack
legal/social/cultural environment in the importing
countries.
• No consistent supply.
• Sea transportation is not efficient.
• Each entrepreneur markets its own brand. Do not have
branding which is unique for the country.
• Although packaging is good, some products have the
choices of color which are not attractive.
• Packaging does not guarantee long shelf-life.
 Weakness
• Cost of production is high. Analysis from the survey indicates
that the prices of products from Thailand are below the
Malaysian cost of production. In general, the Malaysian
products are about 20% more expensive.
• No strategic alliances like importers or distributors. No private
agents to market the products due to the lack of
entrepreneurial skills.
• Entrepreneurs do not have enough capital to effectively
export their products.
• Not able to identify consumer needs in terms of taste and
preferences.
• Almost all the local processed product type and categories do
not follow market labeling requirements.
 Weaknesses
• Kekurangan infrastruktur di
kebanyakkan negara Islam
• Kurang kepakaran dalam semua
bidang
• Separuh penduduk OIC hidup dengan
kurang USD 2 sehari
– 65% negara OIC mempunyai GDP
perkapita kurang daripada USD 5,000
(Malaysia : USD 12,000)
 http://www.cbc.ca/news/story/2003/03/14/iraqis030314.html
Weaknesess
• Separuh penduduk OIC masih
hidup tanpa keperluan asas
(rumah, makanan, minuman,
khidmat kesihatan)
• Tiada kestabilan politik
menyeluruh - peperangan
• Kelemahan urus tadbir sumber
• Kurang kepentingan kepada
pendidikan
– Hampir 50% negara OIC
melaburkan kurang daripada 1%
daripada GDP untuk pendidikan
(Malaysia : 8%)

http://www.aejs.net/article.php3?id_article=
 Opportunities
• 60% of the Saudi’s consumers are youth (< 35 years) and thus
indicating a growing consumer markets and willing to try new
products.
• Saudis’ consumers have purchasing power.
• GCC is a growing region. Average GCC (8%); Saudi Arabia (10%).
• Rising costs of production in EU & USA.
• Tourism industry in Malaysia contributes to developing
awareness among Arab consumers who have been to Malaysia.
• Strong government supports for SME development in food
processing
• Strong government support in halal products and halal-hub
centre
 Opportunity
• Peningkatan keperluan makanan
dunia
– Kebanyakkan negara Islam masih
berasaskan ekonomi pertanian
– Hub makanan halal yang diyakini bersih
dan berkualiti
• Capaian perdagangan yang besar

http://en.wikipedia.org/wiki/Organization_of_the_Islamic_Confer
 Threats
• Stiff Competition of the Malaysian food products
from Thailand, Indonesia and the Philippines. The
prices of the Malaysian products are generally
higher due to the higher production costs.
• Subsidized tariffs for air transportation by
Thailand.
• Chinese products invading the markets,
translated into cheaper prices.
• With declining USD, the products from Malaysia
are more expensive.
• Weak R&D that match SME requirements
 am/
http://www.flickr.com/photos/wallyg/159454870/in/photostre
Threats
• Islamophobia selepas peristiwa 11
September
• Penekanan kepada pembangunan
fizikal berbanding pembangunan
modal insan
• Perang menentang negara Islam
• Pencemaran alam sekitar

http://www.flickr.com/photos/mat http://www.maleisie.be/dossiers/haze_smog.html
t_olney/382561220/
 ACTION PLAN

1. 
• Identify relevant market segment 

• Introduce food products that are more appealing to

younger generation (e.g. trendy packaging)
• Target the promotion to younger generation (e.g.
associated with sport activities, school children)
•  
The younger generation tends to be more open & willing to
try new products
 
 
 
2. 

• Promote products produced by SMEs that have

sufficient capacity to meet importer demand  

• Encourage SMEs to collaborate, form a

consortium to achieve the size needed to meet
importers demand.
  
• Most SMEs are under capacity to venture into
export markets
3.  

• Improve the professionalism of the Malaysian

entrepreneurs  

• Training in Entrepreneurship Development

especially in export market promotion,
ethics, and legal-cultural environment
 
• Lack of professionalism among Malaysian
exporters (communication and promises)
4. 

• Develop structured human resource in terms of

functionality  

• Restructure human resource to have staff that

are competent (e.g. export activities should
undertake by export manager, quality control
personnel to ensure consistent product quality)
 
• Most SMEs do not have structured functions in
the human resource set-up
• 5. 

• Upgrade processing technology  

• Upgrade the processing technology of SMEs

through government incentive schemes (e.g. soft
loan, tax deduction, technical support)
•  
About 50 % of SMEs surveyed still use manual or
semi-automated processing technology.
• SMEs must utilize relevant processing technology
in order to be competitive.
• 6. 

• Develop a systematic raw materials procurement

system  
• Establish contract farming for raw materials
supply
• Train SMEs entrepreneurs in price forecasting
• SMEs are facing inconsistent supply and quality of
raw materials as well as fluctuation of in the price
• 7. 

• Identify critical success factors of companies

that are successful in exporting food products  

• Training in Entrepreneurship Development

especially in export market promotion, ethics,
and legal-cultural environment

• Lack of professionalism among Malaysian

exporters (communication and promises)
• 8. 

• Promote strategic alliance between SMEs and LEs  

• Promote contract manufacturing between SMEs and Les
• Promote joint venture to reduce cost
• Joint promotion between SMEs and distributors in importing
countries
•  In Thailand, food manufacturing SMEs aligned themselves
with large Enterprises (LE) for exports market.
• 9. 

• Formulate Malaysian food branding  

• Develop a ‘unified brand’ for all Malaysian food

products produced by new SMEs players
 
• Food products presently marketed by the
individual brands. Global brand helps to reduce
the advertisement and promotion cost.
• 10. 

• Identify a reliable private distribution agent

for marketing purposes 
• MATRADE must develop database on
marketing agents
• MATRADE should develop criteria in selecting
reliable export agent
•  Promotion by agents and product
distribution was identified as the most
serious marketing problem.
• 11. 

• Position SMEs food products as premium products  

• Enhanced joint promotional effort by manufacturers

and distributors to support product positioning

•  In general the production costs of Malaysian food

products is 20 % higher than Thailand and Indonesia
• 12. 

• Establish food products Distribution Centre  

• Establish a private trade representative in Dubai
(as a gateway) by a consortium of SMEs
•  Need to establish a Distribution Center - acts as
a distribution agent.
• MATRADE needs to identify reliable
distributors/importers as agents.
• Strategic partnership as a pushing factor in
marketing the products.