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    PEST On Proton

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    Starvinder Singh
    Proton is a Malaysian automobile manufacturer established in 1983 as the country's first carmaker. It is majority owned by the Malaysian government and was initially supported through technology transfers from Mitsubishi Motors. Proton began production of its first model, the Proton Saga, in 1985 and has since been Malaysia's dominant carmaker, though faced new competition upon the establishment of Perodua in 1993. The document discusses various political, economic, social, and technological factors that influence the automobile industry in Malaysia and Proton's position within it.

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    PEST On Proton

    Uploaded by

    Starvinder Singh
    235 views2 pages
    Proton is a Malaysian automobile manufacturer established in 1983 as the country's first carmaker. It is majority owned by the Malaysian government and was initially supported through technology transfers from Mitsubishi Motors. Proton began production of its first model, the Proton Saga, in 1985 and has since been Malaysia's dominant carmaker, though faced new competition upon the establishment of Perodua in 1993. The document discusses various political, economic, social, and technological factors that influence the automobile industry in Malaysia and Proton's position within it.

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    This document explains the pest and background of proton

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    PEST on Proton

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    Proton is a Malaysian automobile manufacturer established in 1983 as the country's first carmaker. It is majority owned by the Malaysian government and was initially supported through technology transfers from Mitsubishi Motors. Proton began production of its first model, the Proton Saga, in 1985 and has since been Malaysia's dominant carmaker, though faced new competition upon the establishment of Perodua in 1993. The document discusses various political, economic, social, and technological factors that influence the automobile industry in Malaysia and Proton's position within it.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    235 views2 pages

    PEST On Proton

    Uploaded by

    Starvinder Singh
    Proton is a Malaysian automobile manufacturer established in 1983 as the country's first carmaker. It is majority owned by the Malaysian government and was initially supported through technology transfers from Mitsubishi Motors. Proton began production of its first model, the Proton Saga, in 1985 and has since been Malaysia's dominant carmaker, though faced new competition upon the establishment of Perodua in 1993. The document discusses various political, economic, social, and technological factors that influence the automobile industry in Malaysia and Proton's position within it.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Proton is a Malaysian automobile manufacturer headquartered in Shah Alam, Selangor, with a manufacturing plant in Tanjung Malim, Perak.

    Founded in 1983, it was Malaysia's only carmaker until the establishment of its competitor and arch-rival Perodua in 1993. Its name is a Malay acronym for Perusahaan Otomobil Nasional (English: National Automobile Enterprise). It is a core member of Proton Holdings Berhad, the holding company which is listed on Bursa Malaysia. Over 42% of its equity is owned by a government-owned company Khazanah Nasional Berhad, making it government-linked. For more than a decade since its establishment, this stake was jointly owned by Mitsubishi Motors Corporation and Mitsubishi Corporation until they sold its stake in that company. It was established in 1983 under the direction of the former Prime Minister, Dr. Mahathir Mohamad. Since then, it was Malaysia's dominant carmaker until the establishment of Perodua in 1993. Based on technology and parts from Mitsubishi Motors, production of the first model, the Proton Saga began in September 1985 at its first manufacturing plant in Shah Alam, Selangor. Initially the components of the car were entirely manufactured by Mitsubishi but slowly local parts were being used as technologies were transferred and skills were gained. The 100,000th Proton Saga was produced in January 1989

    Political

    One of the important factors to consider is the presence of AFTA or ASEAN Free Trade Area. Currently, most of ASEAN region are free trade or 96% of the entire ASEAN trade. AFTA was established in January of 1992 in order to eliminate tariff barriers among the Southeast Asian countries. It planned to reduce tariffs to zero to 5% in 15 years among the six nations through a common effective preferential tariff (Ghani & Zainuddin 2008). Because Malaysia has two national carmakers which are Proton and Perodua, and the government wants to protect their interests. Unfortunately, the said development could prove to be a temporary solution. If we are going to check on the high selling prices of the national cars of Malaysia because of high production costs and lack of vendor efficiency, there is a big possibility that the local market will be ruled by imported cars. As a result, there will be increase in the number of the vehicles on the road and there will be a glut of used cars in the market, because people will tend to trade their cars for cheaper and imported brands (Frost & Sullivan 2002). On the other hand, the issue regarding the environment is vital because it is considered as one of the most talk about topics in the world. The environmental regulation in Malaysia can be traced back during the colonialism of British which introduced the environmental standards about the mineral and agricultural resources to Europe.

    Economic

    The vehicle sales in the country is expected to fall by 12.4% in 2009 due to different economic aspect, primarily the issue of global financial crisis, which affected the local financial status of the country (AseanOneMonitoring 2009). As a result, the government of the country is expecting a slow economic growth for the country, which can affect the buying behavior of the customers. Furthermore, due to the AFTA, it had increased the competition, which will impact the performance of Proton. However, the performance of the automobile industry will be maintained and managed due to the huge total labor force. Despite of the slower economic growth in 2003, the unemployment rate was only 3.5%, which shows an almost full employment (PriceWaterHouseCooper 2005).

    Social

    The growing population in the country is one of the factors which can affect the automobile industry. In 2008, the country has a total of 27.5 million citizens (US Department of State n.d.). This will give a greater number of markets. Furthermore, the ratio of car ownership in the country is somewhat high or total of 1:5, which signifies that people are considering cars as important things in their lives. Furthermore, people will also set on big-ticket items or consumers are expected to put off buying different motor vehicles because of the employment market uncertainty because of the global and local financial crisis (AseanOneMonitoring 2009). Another factor to consider is the growing knowledge and concern of the people regarding different environmental issues. Furthermore, the impact of the image to the loyalty of the customer is also another factor.

    Technological

    Technology is considered as one of the most important factor in the automotive industry. Due to the increasing competition, the development in technology is growing and affecting the performance and position of each and every company in the automobile industry. It is also important to consider the maturity of technology, together with the maturity and capacity of manufacturing, which affect the innovation process of any company. The intellectual property is also important factor, because it is considered as a sign of authenticity and uniqueness. Due to the different technologies, primarily the help of computer and the Internet, the potential for innovation and development is increasing.

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