9. PHYSICAL FACTOR: SUMMARY
Market is well
connected to major
economies
• Market is
concentrated on
specific region of
the country
Good logistics for
business is possible
• Fierce competition
could exist since
sellers and buyers
are concentrated in
the same area
12. SOCIOCULTURAL FACTOR: HOLIDAYS
• Malaysia celebrates 10 different national
holidays (Eid Celebration, Chinese New Year,
Christmas, Diwali, etc.,)
• Countless other states holiday
• Holidays = Sales & Shopping
14. SOCIO-CULTURAL FACTORS:
SIGNIFICANCE
Culturally diverse market –Firms needs to cater local needs and taste
Various holidays and celebrations leads to event based sale – intense
price war could occur
Young population – potential to ecommerce is greater
15. FINANCIAL FACTOR: INTEREST RATE
3.25
0.25
4.92
3.25
6
5
4
3
2
1
0
Malaysia US
Benchmark
Lending
Last Revised Lending Rate: Malaysia (2011) , USA (2012)
16. FINANCIAL FACTOR: PAYMENT SYSTEM
• Streamlined interbank transfer via MEPS –
Malaysia Electronics Payment System
• MEPS controls every aspect of
implementation and standard of electronic
payment
• Other relevant payment service providers are
Visa and MasterCard
17. FINANCIAL FACTOR: SIGNIFICANCE
• High lending rate and no capital gain tax could
affect mode of financing
• Reliable payment system eases transaction
and leverage the potential for e-commerce
18. POLITICAL AND LEGAL FACTOR: FDI
Stance of FDI: Aims at liberalizing the economy
together with advancing local business.
Therefore, all FDI related merger, acquisition,
expansion and etc., must have permission from
MDTCC
19. POLITICAL AND LEGAL FACTOR: FDI
• Ownership: Malaysian must own 30% of stake for first 3 years of
incorporation
• Workforce: Should be reflective off all racial composition of
Malaysians
• Product Composition: 30% of the sale space must be occupied with
local products.
• No FDI in convenience store, mini market, provision shop and etc.,
with <3000sqm
20. POLITICAL AND LEGAL FACTOR:
EMBARGO
As leader of Organization of Islamic Countries
(OIC), Malaysia does not do trades with Israel.
Some of Israeli related firms face seasonal anti-
Israel boycott.
22. POLITICAL AND LEGAL FACTOR:
SIGNIFICANCE
Rigid and political and legal requirements poses
challenges to firms in several aspects such as
supply chain, management & administration,
funding and others.
30. MACROECONOMIC FACTOR:
SIGNIFICANCE
Overall, firms does not face too much challenge
since the factors such as tax rate, inflation and
economic growth remains stable.
32. OTHER FACTOR: TOURISM
• Tourism contributed MYR 47B to GNI (2012)
• Tourist arrival for 2012 was 25.03 M
• Generated MYR 60.0 B in tourist receipts
• Tourists contributed 30% of retail revenue
36. OTHER FACTOR: SIGNIFICANCE OF
TOURISM
• High tourism activities allows firms to make
more profit
• Also promotes competition and forces
retailers to be more competitive and creative
in terms of marketing, cost structure and
others.
41. OTHER FACTOR: INTERNET
PENETRATION
• In Malaysia, only 0.8% of retail business was done
online and it is expected to increase to 1.4% by 2016.
“The MRCA does not see the emergence of the online
shopping as a threat towards their brick and mortar
businesses”.
Nelson Kwok, President of Malaysian Retail Chain
Association
42. OTHER FACTOR: SIGNIFICANCE OF
HIGH INTERNET PENETRATION
• High internet and mobile penetration, coupled
with young population and good payment
system, could boost the underdeveloped e-commerce
segment.
43. COMPETITOR ANALYSIS: KEY PLAYERS
Parent Company Subsidiaries Operation Style
Tesco (UK) Tesco (M)** Hypermarkets
Dairy Farm (HK) Giant Hypermarkets
Cold Storage Supermarket
Guardian Health and Beauty
Aeon (JPN) Jusco Hypermarket
Carrefour* Hypermarket
Berjaya Corp (M) Parkson Department Store
Econsave Hypermarket/
Supermarket
7-Eleven Convenience Stores
Rocket Internet (GER) Zalora Online Fashion Store
Mudah.my (M) Mudah.my Online Marketplace
MYDIN (M) Mydin Wholesale Wholesale
*Was originally a subsidiary of Carrefour (FRN) but bought by Aeon in 2012.
** Offer full online shopping
50. STRATEGIC PLANNING: OVERALL
STRATEGY
Strong
nationalistic
sentiment
Legally
required to
include 30%
local products Strong
Culturally ?
diverse
market
cultural
sensitivity
Various
cultural and
religion
celebration
51. STRATEGIC PLANNING: OVERALL
STRATEGY
Strong
nationalistic
sentiment
Legally
required to
include 30%
local products Strong
Culturally MULTIDOMESTIC
diverse
market
cultural
sensitivity
Various
cultural and
religion
celebration
54. STRATEGIC PLANNING: ENTRY
METHOD
30% of the
product
must be
local product
Culturally
diverse
market Fierce
30% citizen ?
ownership
competition in
concentrated
markets
Steep learning
curve
55. STRATEGIC PLANNING: ENTRY
METHOD
PARTNERSHIP
&
JOINT VENTURE
30% of the
product
must be
local product
30% citizen
ownership
Culturally
diverse
market Fierce
competition in
concentrated
markets
Steep learning
curve
57. STRATEGIC PLANNING: FINANCING
?
No capital
gain tax for
equity
30% stake
must be
owned by
local citizens
High lending
rate - 4.92%
58. STRATEGIC PLANNING: FINANCING
Equity
Financing
No capital
gain tax for
equity
30% stake
must be
owned by
local citizens
High lending
rate - 4.92%
59. STRATEGIC PLANNING: FOCUS
SEGMENT
Online
Marketplace
and Online
Store
Young
Population
High Internet
Penetration
Good
Payment
System
High Mobile
Penetration
Low
Competition
in Online
Segment
60. Reference
• Euromonitor
• Asia Pacific Retail Handbook
• World Bank
• Department of Statistics Malaysia
• Malaysian Communication and Multimedia
Commission
• E-commerce Milo
• Bank Negara Malaysia (Central Bank of Malaysia)
• Malaysia Retail Chain Association
Hinweis der Redaktion
Should be under socio-economics fator, but put under physical forces since its more relevant since we are talking about maps.
Talk less.
What language is used?
Major National Holidays is celebrated for 3 – 7 days.
Malaysia L
MEPS Owned by 11 local banks
MEPS Owned by 11 local banks
Oil?
You have to pass it to Ye
World Bank, 2012
Euromonitor, 2014
We Are Social, 2014
M = Malaysia
FRN = FranceUK = United Kingdom
JPN = Japan
HK = Hong Kong
We Are Social, 2014
M = Malaysia
FRN = FranceUK = United Kingdom
JPN = Japan
HK = Hong Kong
M = Malaysia
FRN = FranceUK = United Kingdom
JPN = Japan
HK = Hong Kong
M = Malaysia
FRN = FranceUK = United Kingdom
JPN = Japan
HK = Hong Kong
M = Malaysia
FRN = FranceUK = United Kingdom
JPN = Japan
HK = Hong Kong
M = Malaysia
FRN = FranceUK = United Kingdom
JPN = Japan
HK = Hong Kong
M = Malaysia
FRN = FranceUK = United Kingdom
JPN = Japan
HK = Hong Kong
To encourage customer loyalty.
The Telegraph UK. Sime Darby owns 30% of the company so all the legal requirement is pretty much solved.