SWOT Analysis

Strengths Strong government support Strong brand recognition Competitively priced products Opportunities Government support R & D development Strategic alliance and joint ventures Weaknesses Reputation of poor product performance and functionality Lack of expertise Over rely on the government Lack of international operations Competitors local & international brands Price war between competitors Global financial crisis Fast changing and advanced engineering technology

Threats

Strengths
PROTONs strength depends on its competitively priced products. The company has strong brand recognition where PROTON has become the national car brand owing to the long foothold in the industry. Thereby, Malaysian has strong perspective towards its national brand especially the patriotism that has familiar and loyalty to the brand. In addition, PROTON also has a strong support and back-up from the government which would aid in extensive nationwide distribution network in order to enhance brand awareness.

Weaknesses
Besides, PROTON also has contains numerous of weaknesses which the company must generate several approaches in order to consolidate the image and build up confidence among government. Lack of expertise which means that the company is producing limited products due to their inability of the company such as their employees is lack of knowledge to innovate new car models as well as lack of original product that they often produce product based on other international leading brand which probably will prompt them to mess up their product lines. Too rely on government support lead PROTON doesnt have arbitrary decision making. For instance, PROTON once has losing its market leaderships since in 2006 due to their incapable. PROTON would lose out to major players in the industry that contribute to serious influences on the different of supply chain as well as the restraint of new barring entrance could lead the company unable to be innovative and faces the challenges. Due to the incapable of the company, the company would confront some issues of human resource such as unable to retain and cultivate talent. Thus, this would lead PROTON to cost greater of fabrication as well as the inexperience of employees will also generate low quality of product. Therefore, it could jeopardize PROTONs reputation which might impact consumers perspectives towards products. Besides, lacking of international operations will occurred to PROTON owing to the intense competition in the global market as well as the quality issues of the products.

Opportunities
The government support could lead PROTON to obtain better opportunity and favorable which promote greater development. For instance, government would support PROTON as its partner where employ PROTON as their vehicle in order to boost the sales of cars as well as create awareness. Moreover, government support would aid the company in R & D development such as the improvement of technological developments which might lead PROTON to enter new markets and contribute to enlarge the business scales. Besides, the strategic alliances and joint venture will also regarded as an opportunity where enable PROTON to create brand recognition and accumulate experiences in order to produce better works such as generate more innovative products.

Threats
Global financial crisis will impact the economy of Malaysia owing to the policy of AFTA where lead PROTON has to confront the increases of competition between local and national markets and the issues of lack of resources and expertise, technology backwardness as well as high labor cost. Thereby, foreign investors could export their products as very low import tariffs due to the AFTA policy and thus giving the rise to competitive prices whereby not conducive to PROTON owing to the consumers could have variety of option to select the products at very affordable prices. Furthermore, the changing and maturing of the technology is the another factors that may impact the companys development since the increase of competitors who entering the market would brings about price wars in the industry. Therefore, this will lead PROTON to confront the issues of lack of technology and quality issues.

External Opportunities (O) 1. Government support 2. R & D development

External Threat (T) 1. Competitors local & international brands

3. Strategic alliance & joint 2. Price war between STRATEGIC OPTIONS venture competitors 3. Global financial crisis 4. Fast changing and advanced engineering technology

Internal Strengths (S) 1. Strong government support 2. Strong brand recognition 3. Competitively priced products

SO S1, S2, O1, O2 = New product development where the strengths could aid in enhancing the PROTONs R & D development.

ST S1, S3, T1, T4 = Market penetration where create differentiate product as well as set a competitive prices in order to reach audiences effectively.

Internal Weaknesses (W) 1. Reputation of poor product performance and functionality 2. Lack of expertise 3. Over rely on the government 4. Lack of international operations

WO W1, W4, O2, O3 = Strategic alliance where could aid PROTON in improve the reputation of product as well as to obtain competitive advantage.

WT W2, W3, W4, T2, T4 = Internal development where improve employees skills in order to enhance companys capability.