Automobile is considered as one of
the fast consuming product all around the world. The first vehicle to move
under its own power is designed by Nicholas Joseph Cugnot and constructed by
M.Brezin in 1976. Now, automobile was created with design, innovation even with
style. Automobile had evolved into one of the biggest industry in the world of
creating various products of cars from low range to a extreme high range series
of cars. In the 20th century, majority of 70% household purchases
automobile for transportation purposes, for business users they would make use
of automobile to earn their income such as taxi and bus. Transportation would
be a very big issue for people all around the world, people would purchase
automobile just for their private transportation like to work, class or even
meeting people. Therefore automobile plays a very big role for the public to
achieve their personal needs.
Malaysia had their own automobile
industry and one of it is named as Proton. The full name of Proton is Perusahan
Otomobil Nasional Berhad and it is formed on May 7 1983. Its is use to
manufacture, assemble and sell motor vehicles and related products, including
accessories, spare parts and other components of their own automobile. Proton
then produced the Malaysia’s first car the Proton Saga. It is officially
launched on July 9th of 1985, and it is the first Malaysian car
which is promoted by our Prime Minister Dato’ Seri Mahathir Mohamed. Its model
then continue producing such as the Wira, Waja, Satria, Iswara, Perdana and the
Juara. Proton focus on the engine range from 1.0, 1.3, 1.5 , 1.6 , 1.8 and 2.0
litre. Proton was then well known in Malaysia and a lot of people purchase it
because it is cheaper compared to the other entire automobile because of the
tax that had been raised by the government for non-local automobile. Proton
then marked their products to internal and external countries. It had then
became worldwide for all the people around the world to purchase but
unfortunately, Proton faces some quality standard problems. Proton faces
trouble and had lost a lot of fortune due to a few factors which is when the
automobile release the price is quite high and people is expecting standards
from the industry. Secondly the quality doesn’t reach the standard of the price
and consumers will start to neglect Proton products. Thirdly, due to lack of
technology, Proton can’t follow up other automobile company’s creation,
material and innovation to give the public a surprise.
One of the main causes that make
Proton in trouble is because of their competitor Perodua. Perodua has surpassed Proton in sales and become number one,
and because of this Proton had to be compared to them due to the pricing and
quality they gave in to automobile industry. Just one example, Myvi launched by
Perodua reach limits where all the consumers feel satisfy because of its
pricing and quality. It is all around Malaysia and had been awarded the most
teen usage vehicle in Malaysia. Proton should develop more on their research
team because they somehow produce vehicles that people don’t really desire.
Here is a graph of protons financial income statement from the year 2006 to the
year 2010:
This
is a graph from the year 2006 to 2010 about proton. From the day proton
launched in 1983, proton had been rising highly until the year 1995, but from
that year it had continue its dropping until 2003 and had been going up and
down until 2006. There were a lot of factors that causes this to happen. First
is the financial crisis during the year 2000 and then people had lost interest
to Proton because of its quality. Proton had struggled in survive by keep
upgrading their automobile and even come out new automobile. Second is the
competitors such as Perodua Berhad, this automobile industry killed a lot of
Proton consumers because their quality is slightly better than Proton and even
cheaper compared to some of the Proton vehicles. Based on the graph since 2006
the revenue dropped rapidly in the year 2007 and slowly raised back until the
year 2010. You can see from the owners equity in the balance sheet in the year
2007 which dropped a lot then going up and down until 2010. Based on the
shareholders graph, the shareholders leaked a lot of interest towards Proton
since the year 2000, the share price had been going down rapidly then rise back
by the promotions or event that Proton made. In the year 2006 to 2007, the
shareholders earning had lost had dropped approximately 15%. In the year 2008
it had raised back a 5% but unfortunately in the year 2009 it dropped another
10%. In 2010 they manage to save it up back another 8% but for the shareholders
they still faces loses and this would cause them to doubt whether Proton will
do good in the future or not.
In conclusion, Proton should analyze
more on their consumers or even carry out a better research on the consumers
nowadays. They should come out with a strategy of market their products. For
the economic situation, their currently doing better than before, but they
would have to put in much more effort to win people’s heart as Malaysia’s
number one car brand. Here are a few more suggestions for myself for proton to
improve. First they should hire a professional from automobile industry to give
them an advance training on their innovation and designing to win people’s
heart. At the same time improve the services in every Proton outlet for the
consumers that had already purchase Proton to enjoy after buying services
better than other automobile industry. Besides that, proton could go in other
fields like giving out sponsorships to people who need them to increase
Proton’s fame to create a better brand image. Lastly, use better materials to produce
Proton’s automobile to create a better quality of vehicle and make Proton the
best car company in Malaysia.
No comments:
Post a Comment