1.1 Background of Mydin
In the year 1918 marks the year Mydin was found by one Mr. Gulam Husen Jamal who was the father of Mr. Mydin. Mr. Gulam was managing his shop until ward world 11 which saw the end of Mr. Gulam’s shop in Penang which was burnt down by fire incidents and left them with nothing. In 1957 Mydin out of a strong determination and his ability to persist in life pushed forward and with the help of his immediate son in the year 1979 and 1989 respectively continue the trade his father started and his first shop selling toys and general merchandise with his own sweat he continued the trade of wholesaling, the business skyrocketed to different branches in the land of Malaysian. Today Mydin is now one of the largest discount retailers in the whole Malaysians with over 17 Mydin supermarket and wholesalers emporium’s centers located across the country and also among the competing supermarket with Tesco, Carrefour and others. 1.2 Mydin vision
Mydin is the world leading distributor of competitive Halal goods and service.
The mission of Mydin is to target the overall leading in the local wholesale and retail supermarket by his constant provision of service to his customers, provision of best valuable for money and assortment of goods and services through Excellency. Also they aim to encourage more Malaysians to open different outlet with their own proven success formula. 1.4 Product
Mydin has so many products such as Softline for apparel, together with home furnishing and muslimin. They also specialize in hardline (do-it –yourself), household, electronics including all stationary and general merchandise, all types of gifts and Deco, sports, toys and games. Fresh; ready to eat and fresh produce of meat and poultry equally, all kinds of vege and fruits, chilled and frozen Grocery: different kinds of food and health including beauty material.
1.5 Mydin objectives
The following are the objectives of Mydin Company
To provide its products at the right time and at the right price to the right customer while ensuring excellent service. Secondly, achieve marketing speed, and overall efficiency of operations. And supply chain management, from the suppliers to the logistics and warehouse, to Mydin’s ground staff and to the management team, Thirdly to achieve efficiency and productivity which are important factors for timely and accurate decision making. Fourthly With so many strong competitors in the local retail outlets, one cannot afford to be tardy to differentiate itself, Mydin aim at redefining the value it brings to its customers Lastly to maintain it brand name which signifies convenience, quality and value for money through it looks into Information and Communications Technology (ICT) to achieve these goals. 1.6 Organizational of Mydin structure
2.0 External and Internal Analysis
2.1 SWOT Analysis
Based on the studies of Gorener A., Toker K., and Ulucay K., they mentioned that with SWOT analysis the regulated arrangement technique for estimating the internal and external environment of the business as well as analyze both environments in order to achieve systematic approach and support for decisions.
Low price strategy
Mydin is famous designed for getting local and overseas goods with the reasonable pricing supplying into Malaysia. “Why pay more? Buy at wholesale price” and this is one of the advertisement slogan of Mydin as well as Mydin had already set their pricing strategy in a low price strategy to compete with the existing competitors (Danny Y., 2011).
According to the Prime Minister Najib Tun Razak, he mentioned that the government will inject RM386 million to make sure that the prices of needed goods and products in Sabah and Sarawak are sold at lower prices through the opening of 57 KR1M stores (Shukry A, 2012).
The low pricing strategies not merely attract the new customers, but it helps also the Mydin to build a strong customer loyalty for their hypermarket, as their slogan, “Why pay more? Buy at wholesale price”
Less Space and the Layout of Shop
The limited space of Mydin causes a decline in numbers of customers. These customers will feel not comfortable enough while shop with a place where too crowded.
It is a provision of service to customers before and after purchases and it is significantly important for goods and services business, like Mydin. The weak customer services of Mydin could not satisfy the customers and it will ruin the reputation of Mydin and lead the consumers flee to competitors like TESCO and GIANT.
In this era of internet technology widespread, the users of the internet are increasing very rapidly. So if Mydin can follow this trend and caught these opportunities to explore online market successfully, Mydin will definitely obtain a benefit from this online market.
It is well known that their vision from Mydin for this short term to become the world’s top supplier of competitive “Halal” products. Therefore, the Muslim countries, like Indonesia are the great market for the Mydin to explore as it has a large number of populations.
In Malaysia hypermarket industry, there are variety choices for customers such as Mydin, Tesco, Giant, Carrefour, and Econsave. It goes without saying that it is an intense competition for the industry and it will lead the Mydin lose market share when the competitors offer a better promotion or privilege.
The customers could satisfy their needs or wants in mini mart, grocery shop, wet market, or convenience store instead of the Mydin.
2.2 PESTEL Analysis
Based on the PESTEL structure it delivers a complete list of external effects on the potential achievement to every single strategy or either could lead to failure. It is where standpoints for the factors from Political, Economic, Social, Technological, Environmental as well as Legal (Ivory, 2005). In this research is where based on observation on Mydin, this analysis can actually help to avoid the unwanted outcomes to their future plans like expands of the branches in overseas countries with the situations and regulations that need further consideration.
Politic highlights to the role of governments involved, as Mydin is deciding for expanding their branches in Indonesia, therefore the management team involved required to have more research on the government restriction with the trading and how the security control of the country is.
Economic factors are refers to the macro-economic factors in the foreign country such as the exchange rates, the inflation rate and differential economic growth rates around the world (Ukessays, nd). These are important factors as will directly influence to Mydin Profit where involves of cost of gain or loss with the exchange rates. As rising inflation rates mean rising prices for goods and services, the CEO needs to know the forecast of inflation rate because consumers would tighten their spending as goods become more expensive. Besides, it also means retailers have to bear a
Social influences the employment patterns of the country and behaviors of the consumers. The employment patterns simply mean that the numbers working hours, working days, employment benefits and other factors where Mydin need to have better study before decide the locations to expand their branches (Slideshare, 2012). Besides, having updated and accurate information about consumers buying patterns and behavior helps to have a clear direction of where the future consumption trends are heading to in order to know how to satisfy customer’s needs and desire. On food taste or packaging that will bring effects on the sales volume.
The factor of technology referring to improvements in both internet retailing and trading (Ivory, 2005). There is a study that to the grocery business implemented to the advance technology is able to benefit Mydin to decrease expenditures but improve on efficiency. It is in strengthening their customer service, improving operations and retain pace with the competitors. Therefore, this is where the early twenty-first century operators in the industry.
Environmental it is more concerned to eco-friendly viewpoints with main concern to the ‘green’ issues, like the occurrence of pollution and local waste issues (Slideshare, 2012). It can be one of the company strategy for advertising their product with go green issue or recyclable of products which will benefit their local surroundings.
Legal holds governmental restrictions or modifications, it is where the well-being and security legislation with the Mydin’s mergers and acquisitions (Antonio, 2010). This aspect plays the important role especially with food and beverage products that are illegal for consumers to consume due to the religion issue. Therefore, it helps the CEO to understand well about the company marketing plan and thus can make a better decision.
It is important for Mydin to understand and survey of how these factors are fluctuating currently and changes in future. Therefore, it is required of the management to generate of solutions that would be likely to bring benefits or failure to the organizations. For instance, Mydin is to be expected to implement of advance technology changing. Therefore, usually generates of PESTEL analysis but it is actually without the offering of the forecast to the changing in the environment.