Proton Holdings Berhad (PROTON) is a Malaysian automobile manufacturer. It is headquartered in Shah Alam, Selangor and operates an additional manufacturing plant in Tanjung Malim, Perak. The company was established in 1983 as the sole national car company following the wishes of former Prime Minister Tun Mahathir Mohammad until the advent of Perodua in 1993. Proton is a Malay acronym for Perusahaan Otomobil Nasional Sendirian Berhad. (National Automobile Company Private Limited).
At first, parts and technology came from Mitsubishi but later on, as experience accumulated, Proton became independent even if most of the cars were still based on Mitsubishi models. Their first model ...view middle of the document...
However, this plan fell through by 2006, when Volkswagen announced the two companies would go their separate ways because they couldn't agree on the terms.
Proton was formerly owned by Khazanah Nasional, the investment holding arm of the government of Malaysia. In January 2012, sovereign fund Khazanah Nasional Bhd sold its 42.74% stake in Proton Holdings Bhd to DRB HiCom for RM5.50 per share, totalling RM1.29 billion. DRB HiCom is a company linked to tycoon Tan Sri Syed Mokhtar Albukhary. Since then, DRB HiCom had taken several corporate exercises, resulting in Proton becoming its wholly-owned subsidiary. Proton’s financials which include sales, revenue and profit now are recognised under DRB’s automotive division.
Meanwhile, in the aspect of financial, Proton had seen its sales plunging over the past years by double-digit, which shaved its market share from a stellar 60% in the 1990s to 17% currently. In fact, according to the latest statistics by the Malaysian Automotive Association, an industry body, Proton sold 115,783 cars in 2014, a significant 16.5% drop from 138,753 registered in 2013.
The primary purpose of the SWOT analysis here is to identify and assign each significant factor, positive and negative, to one of the four categories, allowing Proton to take an objective look at the business. The SWOT analysis will also be a useful tool in developing and confirming goals plus marketing strategy.
Proton ties with other ASEAN markets which are strengthening at all the times through ASEAN Free Trade Area (AFTA) induced tariff reductions, which will provide advantages for carmakers basing themselves in Malaysia. The market continues to attract investment from major carmakers, with General Motors (GM) forming a tie-up with DRB-HICOM Bhd in August 2007 and its subsidiaries include Perusahaan Otomobil Nasional Sdn. Bhd and Lotus Advance Technologies Sdn. Bhd.
In addition, Proton’s strength is its competitively priced products. It offered the cars which is available for the lower income people such as Saga SV. The price of the product is related goods produced and average income of the people in the countries. Malaysian government supports the industry onwards with the vast of nationwide distribution network.
Besides, it had good corporate governance and greatly regarded by many Malaysians as the national car maker and had achieved RM100 million in annual sales and it awarded the Management Excellence Award (QMEA). Proton will continue to strengthen itself in all aspects to operational, and corporate to better equip it in the years ahead. As a Government Linked Company, Proton is secured in term of financial capabilities. It will adopt a three-pronged thrust namely development of market-driven products, focus on high growth regional markets and a production strategy that achieves economies of scale.
On top of that, Proton exports cars to the United Kingdom, South Africa, and Australia and the company is...