Appendix I

UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF BUSINESS AND FINANCE

ACADEMIC YEAR: 2024/2025

JUNE 2024 TRIMESTER

UBMM3014/3514 STRATEGIC MANAGEMENT & PROJECT

PROJECT REPORT COVER PAGE

Course details

Tutorial Group : Tutorial 1

Tutor’s Name : Mr. Fong Chee Yang

Report Details

Company Name : Dutch Lady Milk Industries Bhd

Word Count : __________________ words

Due Date : Week 8, 9th August 2023 (Friday, before 12.00 noon)

Important Note : Submission of the report is the responsibility of the students.

Students’ Details (Student name should follow alphabetical order)

Name Student ID No. Course Year &

Trimester
1. Kong Hui Wen 2106964 BAC Y3S3
2. Lam Yi Tong 2104146 BAC Y3S3
3. Man Kai Ling 2107038 BAC Y3S3
4. Ng Yi Qian 2202714 PA Y3S3
5. Saw Hsiao Jiin 2105549 BAC Y3S3

Report Overall Marks : ________/40 Marks.

 Appendix II

UNIVERSITI TUNKU ABDUL RAHMAN (UTAR)

FACULTY OF BUSINESS AND FINANCE (FBF)

ACADEMIC YEAR 2024/2025

JUNE 2024 TRIMESTER

UBMM3014/3514 STRATEGIC MANAGEMENT & PROJECT

MARKING SCHEME FOR PROJECT REPORT

Marks Marks
Assessment
Allocation Awarded
1 Introduction 10 marks

2 SWOT Analysis 25 marks

3 Industry Analysis 15 marks

4 Competitive Analysis 15 marks

5 Strategy Formulation 20 marks

6 Conclusion 5 marks
Citations, references, grammar and quality of case
7 10 marks
study report

Total Marks 100 marks

Convert to 40 marks (Total x 0.40)

Comment:
__________________________________________________________________________
__________________________________________________________________________
__________________________________________________________________________
___

Signature of marker: _______________________

Name of marker: __________________________ Date: ________________

Table of Content
Q Description Page
1 Introduction
2 SWOT analsis
3 Industry analysis
4 Competitive analysis
5 Strategy formulation
6 Conclusion
7 Reference
Question 1 : Introduction
Strategic management involve allocation resources to achieve organisational objectives and
goals, transforming ideas into actionable plan that maintain competitive advantages (Sinnaiah, T et
al., 2023). Key elements include setting goals, analyzing plans, examining internal structure,
evaluating the competitive landscape, and ensuring implementation. The process includes
environmental scanning, strategy formulation, strategy implementation, evaluation and control
(Farid, 2022).
Environmental scanning analyzes internal and external environment using market research,
consumer feedback, industry reports, and performance indicators to understand consumer
preferences, market dynamics, and competitive factors, identify strengths, weaknesses,
opportunities and threats. Strategy formulation defines the organization’s mission, implementing
realistic objectives, creating policy guidelines and develop actions to achieve goals and addressing
challenges (I, I., J, S., & O, F. S., 2024). It’s essential for generating value, making investment
decisions, increasing the satisfaction of clients, and eliminating unethical behavior to maintain
competitive advantage and optimizing profitability (Maleka, S., 2014).
Strategy implementation involves putting the plan by allocating resources, budgets
development, programs creating, and procedures establishment. Effective collaboration between
management and staff is essential for achieving goals and improving performance. Evaluation and
control systematically examine a strategy’s effectiveness using techniques like time series analysis
and financial ratio analysis to ensure long-term performance and effective communication
throughout the organization (I, I., J, S., & O, F. S., 2024).
Dutch Lady Milk Industries Berhad (DLMI), founded in Petaling Jaya, Selangor, in 1963 is
Malaysia’s leading dairy company, producing milk, yogurt, and milk powder. DLMI offers both
homes and enterprises with the Dutch Lady brand known for quality and nutrition (Dutch Lady,
2024). Competing with companies like Nestle, Goodday, F&N Magnolia, and so on. They monitor
competitive changes and market participants in Malaysia's dairy industry, believing increased
competitiveness can raise awareness of issues like hunger and obesity.
DLMI's achievements include introducing UHT milk, launching specially designed milk powder
for children, and winning multiple Putra Brand Awards, continued success (Dutch Lady, 2024). In
fiscal year 2023, DLMI reported a strong profit of RM1.4 billion, reflecting positive consumer
attitudes and demand for Halal and sustainable dairy nutrition.
DLMI face challenges from global economic conditions and supply chain disruptions. The
economic downturn, influenced by the COVID-19 pandemic, tighter financial conditions, and
geopolitical conflicts like Russia's invasion of Ukraine, affected various industries. DLMI struggled
to balance affordable pricing with strong profit margins. Additionally, supply chain disruptions,
1
driven by geopolitical conflicts, inflation, and recessionary pressures, impacted product availability
and pricing (Dutch Lady, 2024).

Words : 404

2
Question 2 :
SWOT Analysis
SWOT analysis refers to the analysis and evaluation of strengths, weaknesses, opportunities and
threats in a company or organization in formulating strategies, aiming to analyze the impact of the
internal and external environment and implement a support strategic decision-making. （Moravská
Vysoká Škola ， 2023 ） . Let us use SWOT analysis to find out the strengths, weaknesses,
opportunities and threats of Dutch Lady company.

First let's discuss the strength of Dutch Lady company in the market. Dutch Lady is a group with a
strong brand and financial strength. Dutch Lady Malaysia's competitive strategy is a mix of low-
cost supplier and market differentiation. Dutch Lady has a wide range of markets, including both
children and adults. Dutch Lady has a wide range of drinking milk products in sales (Suhaimi Mhd
Sarif, 2016). This helps them to attract more different types of consumer groups and provides more
choices to consumers to buy the company's products. Dutch Lady does effectively implement the
characteristics of its products to differentiate from its competitors' products. Dutch Lady Malaysia
constantly seeks ways to reduce costs. They try to upgrade the factory's automation and robotic
production lines to improve production efficiency. The company has its own production lines, so it
can also reduce costs. Although Dutch Lady Malaysia faces downward pressure on profitability due
to competition in the food processing industry, its business strategy can still survive in the market
compared to its competitors.

In today's economic environment, Dutch Lady Malaysia is bound to have its own internal
weaknesses. According to the literature Dutch Lady Milk Industries lacked a market share
dashboard to monitor the business share between Dutch Lady and competitors, and it was difficult
for the company's administrative team to complete all manual data extraction and conversion.
(Sharmila Naidu Jayaveran, 2019). This will result in noticing a sudden drop in market share later
than competitors and making it difficult to monitor competitors' marketing patterns, allowing
competitors to take our market share. Besides this, Dutch Lady is only sold in large stores such as
supermarkets, grocery stores, hypermarkets and convenience stores, which results in the company
having no direct market experience. This is very important because direct market experience can
enhance the relationship between the company and the consumer, and the company can also
understand the consumer's needs.

Next, let us discuss the opportunities from Malaysian market environment brings to Dutch Lady
company. Since the Malaysians’ demand and recognition of the nutritional value of milk are
3
increasing, which is a very good opportunity for the Dutch Lady company future development (The
Star, 2024). According to data, Malaysians consume about 80 million liters of milk each year, with
an average growth rate of 8% since 2010 (Melissa Goh, 2023). Dutch Lady company has a certain
advantage in market demand. Dutch Lady's revenue rose slightly by 0.8% to RM364.53 million for
the last quarter ended Dec 31, 2023, from RM361.69 million in the previous quarter. Dutch Lady
reported a net profit of RM22.83 million for the quarter, thanks to revenue growth, rairy raw
material prices fall, and lower one-off costs (The Star, 2024). Therefore, we can see the positive
factors in the market environment, which can give Dutch Lady company greater advantages and
opportunities in operations and sales.

The market environment also brings some threats to company. According to Ramjeet Kaur Virik,
Managing Director of Dutch Lady, the impact of inflation after the epidemic has greatly affected the
company's business, and the company has also felt the impact of inflation (Sharen Kaur, 2023). The
cost of factories and raw materials has been affected. This is a difficult period for Dutch Lady,
because the entire industry must deal with the cost impact of inflation in raw materials. At the same
time, she also said that the company's product prices reached a historical high during the inflation
period. This leads to companies setting product prices higher than their competitors so that
consumers may switch to other competitors with lower prices. Therefore, some customers of Dutch
Lady will be lost. From this we can see that inflationary pressure does pose a great threat to the
company, because it will affect the company's production costs and thus increase the company's
product selling price.

The dairy industry has been changing over the years. Dutch Lady can use SWOT analysis to find
external and internal factors that affect the company and develop a development strategy.

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4
RBV
Resource-based view is a method of analysing internal resources and capabilities in order to identify
the competitive advantages of an organization. Resources are the tangible, intangible and human
assets. Capabilities is the ability of an organization to exploit its resources. Each organization must
able to determine its core competencies so that it can keep competitive in the industry.
First and foremost, Dutch Lady Milk Industry Berhad’s (DLMI) strong financial positon is one of
its tangible resources. Its increasing profit is the outcome of lower raw material costs. DLMI had a
great business performance in the first quarter of 2024, with earnings up 2% from 2023. The
company is able to spend in research and development (R & D) due to its financial position (61st
Annual General Meeting, n.d.). DLMI operates state-of-art production facilities in the year of 2024,
which located at the Bandar Enstek halal hub. Industry 4.0 technology was used into the new
production plant to satisfy demand from Malaysia and the surrounding area. The capacity of the
new factory has increased as well (Singh, 2024). During the 61 st Annual General Meeting of Dutch
Lady Milk Industry Berhad, the minority shareholders were informed that the facility helps the
company gain efficiency, sustainability, quality control, safety and more data on its processing
variables (61st Annual General Meeting, n.d.).
On the other hand, the intangible resources of Dutch Lady Milk Industries Berhad (DLMI) is its
brand. It is the most chosen brand in the dairy sector. DLMI was awarded No.1 Liquid Milk Brand
and No.1 IFT Company (61st Annual General Meeting, n.d.). Not only that, DLMI also won two
gold awards from the Putra Brand Award (Dutch Lady Wins Gold Again at Putra Brand Awards,
n.d.). Since its brand reached 14.4 million Malaysians, 131 million and 214 million packs are sold
and distributed through the School Milk Programme in 2023 respectively, demonstrating its
successful win over the hearts and minds of Malaysians (61st Annual General Meeting, n.d.).
Besides that, customers are the valuable resource. Strong customer loyalty is the foundation of its
brand. DLMI strives to promote nutrition-related issues and assist spread the word about the health
benefits of milk, taking into account the mental and physical well-being of families and children.
By carrying out nutritious projects for the community, it earns consumer royalties. For instance,
DLMI launched Program Cakna Susu in 2019 and offered 1 carton of DLMI’s Rakyat Pack every
month for 6 months. On World School Milk Day, they also promote the significance of educating
teachers and children about food nutrition (DLMI @ Work – Dutch Lady Malaysia, n.d.)
According to Dutch Lady Milk Industries Berhad (DLMI), human resource is their most valuable
and resilient asset (Annual Report 2020, n.d.). Skilled workforce and experienced leadership team,
both of which have made a substantial contribution to the business’s success. To guarantee that its
employees are knowledgeable in dairy production, quality control, marketing and logistics, DLMI
provides ongoing training. Through the Farmer2Farmer programme, local dairy farmers in Malaysia
5
were able to learn vast expertise and best practices from Dutch farmers, improving the overall
quality and volume of milk production (Dairy Development Programme – Dutch Lady Malaysia,
n.d.).
According to the resources identified above, Dutch Lady Milk Industries Berhad (DLMI) has the
capability to exploit them. Due to the strong financial position, DLMI able to conduct active
research and development (R&D) to innovate and develop new products to satisfy demand of
consumer. For example, the launch of Dutch Lady Chocolate Drink in 2012; Launch of +Proterin,
Kurma, Juicy Milk Strawberry & Orange in 2019; recipes improvement, new pack designs as well
as launch of Dutch Lady MaxGro and Juicy Milk Pomegranate in 2020; Launch of Juicy Milk
Lychee, Vanilla & Cookies & Cream and Signature Dutch Lady Can in 2022 (Annual Report 2023,
n.d.).
DLMI has the capacity to manage efficient supply chain operations with the introduction of the new
technology manufacturing facility. Based on Singh, S. (2024), the managing director Ramjeet Kaur
Virik stated that the new facility has doubled the capacity of the one in Petaling Jaya. They also
mentioned that they have extra land for future expansion which means that they have even more
capacity in the future (Singh, 2024). Besides that, Dutch Lady Milk Industries Berhad also the
largest purchaser of local fresh milk which obtains of 55% of its supply from local farmers.
Economies of scale are achieved and material costs are minimized, resulting in competitively low
prices (Singh, 2024).
Last but not least, the skilled workers are sufficient in the company as most of the employees began
manufacturing there as soon as the first construction of new facility was completed (Singh, 2024).
Since DLMI provides training to their employees, they have deep understanding of the new facility
which ensure the quality of the products (Recruitment, 2023). Not only that, independent testing
carried out by the Health Minsitry has demonstrated that Dutch Lady’s products are genuine and
safe, meeting both Malaysian and international food safety regulations (Nst, 2018).
Through evaluation above, Dutch Lady Milk Industries Berhad’s (DLMI) resources and capabilities
are valuable, rare, inimitable and well-organized which allows it to create strategic advantages. The
company can keep growing and extending its market presence while maintaining its competitive
advantages in the dairy industry.

877

6
 Question 3 : Industry Analysis

Porter's Five Forces can be used to analyse the attractiveness of the dairy industry, starting
with the threat of new entrants influenced by three entrance barriers. High capital requirements,
product differentiation, and economies of scale serve as significant barriers. The dairy industry
demands significant financial investment due to high input and feed costs (Ang et al., 2021).
Existing businesses with strong brands and loyal customers, like DLMI, are less vulnerable to new
competitors. DLMI ensures that their product is reasonably priced and maintains a solid reputation,
making it difficult for new competitors to succeed (Ariffin, A., 2023). Large-scale production
reduces costs, lowering rivalry from new entrants. In 2020, Malaysia had 801 dairy farms, mostly
small-scale (Frost & Sullivan GIC Malaysia Sdn. Bhd, 2022). Hence, the threat of new entrants is
moderate due to requiring higher capital to enter this industry.

The bargaining power of suppliers is moderate influenced by the industry's reliance on

specific vendors and the potential for backward integration. When customers can obtain comparable
goods or services from other vendors, their reliance on a certain source decrease. The dairy industry
faces challenges due to the short shelf life of milk, making it difficult to find quality raw material
supplier (Mojro Technologies Private Limited, n.d.). The industry that purchases raw materials from
vendors could start integrating backwards and acquiring raw materials directly. For example,
cutting costs can be achieved because DLMI make their own (Mojro Technologies Private Limited,
n.d.).

The bargaining power of buyers is the third force. Moreover, there are two elements that
show a buyer's power. Price sensitivity is the first factor. Consumer demand for fresh milk was
hardly affected by price changes (AHDB, n.d.). Product differentiation is the following factor.
Customers have more options for dairy products, increasing their bargaining power. Health
concerns and the demand for halal products influence consumer preferences. For example,
compared to rival like Nestle and Milo, Dutch Lady has fewer products that suited to Malaysian
taste (Suhaimi, M, S., 2016). Hence, the bargaining power of buyers is moderate.

The threat of substitute products or services is high. There are two factors under this
force. First is availability of substitutes. Plant-based milk alternatives, such as soya, almond, and oat
milk, are gaining popularity due to environmental concerns and health benefits (Statista, n.d.). The
next factor is Consumer Preferences which change rapidly, and there is a growing preference for
healthier options, which generates demand for substitutes. Due to growing consumer awareness of

7
environmental and health issues, plant-based milk consumption has increased significantly (Su et
al., 2023).

Rivalry among existing firms is high due to the numerous competitors and strong
competition for consumer attention. The dairy industry is highly competitive with major companies
like Fetureality.shop and YourGutt. Product and service characteristics refers to the requirement
that the industry have some sort of safeguard against competition. By utilizing a range of strategies,
such as cost cutting, product diversity, and focused packaging, Dutch Lady sets itself apart from the
competitors (Suhaimi, 2016).

Overall, Malaysia's dairy industry has medium attractiveness. While the growing market for
halal products presents opportunities, significant threats from competitors necessitating constant
innovation to maintain market position.

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Question 4 : Competitive Analysis

Dutch Lady Milk Sdn Bhd (DLMI), Nestle and Farm Fresh are each playing their own role in
the Malaysian dairy industry. DLMI is expanding its market share with well-known brands and a
wide range of dairy products including yoghurt, milk and nutritious snacks to cater to the varied
needs of consumers (Bursa Malaysia, 2023). Nestle is the main competitor in the industry with a
leading market share, offering a wide range of dairy products from regular milk to speciality
supplements. The company capitalises on its global brand and extensive local distribution network
(Nestlé Malaysia., 2023).Farm Fresh maintains a strong market presence despite having a smaller
market share than Dutch Lady and Nestlé because of its focus on freshness and local sourcing,
appealing to consumers looking for high-quality and sustainable options (Farm Fresh Berhad.,
2023).

9
 Financial Ratio (Corporate Finance Institute, n.d.)
Profitability ratios
1. Gross Margin

Dutch Lady’s gross margin is 29.69%, which, while profitable, is slightly lower than Nestlé’s
31.64%, indicating Nestlé converts sales into gross profit more efficiently. Farm Fresh lags behind
with a gross margin of 23.77%, suggesting challenges in cost control or pricing strategy.

2. Reuturn on Equity (ROE)

Dutch Lady’s ROE stands at 5.02%, modest compared to Nestlé’s exceptional 97.77%. This
shows Nestlé delivers significantly higher returns to its shareholders. Farm Fresh, with an ROE of
7.88%, outperforms Dutch Lady but remains far behind Nestlé, indicating better efficiency in using
shareholder equity.

10
Efficiency ratios
3. Payable turnover ratio
1.
Net credit Purchases = COGS - closing stock - opening stock
2.
Average Accounts Payable = (opening account payable + closing account payable)/2

Dutch Lady’s payable turnover ratio is 2.31, indicating slower supplier payments compared to
Nestlé’s 2.67, which suggests more effective payables management. Farm Fresh excels with a ratio
of 6.80, reflecting a faster payment process. In terms of payable turnover days, Nestlé settles its
debts in 137 days, compared to 159 days for Dutch Lady. Farm Fresh outperforms both competitors
with an impressive 54-day turnaround time.

11
Financial Leverage Ratio
4. Debt Ratio

Dutch Lady’s debt ratio is 53.82%, indicating moderate debt levels. Nestlé’s higher debt ratio
of 81.09% suggests greater reliance on debt financing, which may involve increased risk. In
contrast, Farm Fresh’s debt ratio of 40.16% shows a more conservative approach to leverage and
less dependence on debt.

12
Market Value Ratios
5. Earning Per Share (EPS)

Dutch Lady’s EPS is 113.12 sen, indicating reasonable profitability for its investors. Nestlé,
with an EPS of 280.32 sen, significantly outperforms, showcasing strong financial health and
effective management. Farm Fresh’s EPS of 2.69 sen is notably lower than its competitors,
suggesting potential inefficiencies and challenges in achieving profitability relative to its shares.

In 2023, Malaysia's dairy industry remains highly competitive. Farm Fresh’s emphasis on
freshness and local sourcing differentiates it, though it has a smaller market share compared to
DLMI, which holds a substantial market position with a diverse product lineup and strong brand.
Nestle, leading in profitability and market penetration, dominates the sector.

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 Question 5 ： Strategy Formulation (TOWS Matrix)

INTERNAL FACTORS

TOWS STRENGTHS WEAKNESSES

1. Strong brand and financial 1. Lack of a market share
strength. dashboard to monitor
MATRIX 2. Wide range of milk products business and competitor
for different consumer groups, activities.
children and adults. 2. Reliance on large retail
3. Efficient distinction of stores for distribution,
products. resulting in limited direct
4. Attempts to cut costs by market experience.
using robotic production lines
and automation.
5. Different packaging to
attract the consumers.

OPPORTUNITIES S-O Strategies W-O Strategies

1. Increasing demand and 1. Utilise brand power and 1. Create a dashboard for
recognition of the product variety to meet market share to improve
nutritional value of milk increasing demand (S1, S2, market understanding
products among O1) (W1, O1, O2)
Malaysians.
EXTERNAL FACTORS

2. An average growth rate 2. Grow educational 2. Improve channels of

of 8% annually since programs (S1, O3) distribution for direct
2010. market knowledge (W2,
3. Government O1, O2)
encouragement for
children to drink milk in
schools, which increases
market demand.

THREATS S-T Strategies W-T Strategies

1. Inflation affecting 1. Lessen the effect of 1. Boost market tracking
production costs and raw inflation with cost-reduction and response times (W1,
material prices. strategies (S4, T1) T2)
2. Price sensitivity among
consumers due to 2. Counter price sensitivity 2. Spread out distribution
increased product prices. with product differentiation to protect against the
(S3, T2) effects of inflation (W2,
T1)

14
S-O Strategies
For S-O strategies are the strategies to use its strength to maximise the opportunities. Dutch Lady
can utilise its brand power and product variety to meet increasing demand. By highlighting the
dependability and quality of its brand, Dutch Lady can attract more customers, encourage consistent
consumption, enhance its market share and sales. Besides, Dutch Lady can organize more
campaigns to emphasise the health benefits of its wide range of milk products, increasing
recognition among Malaysians of the nutritional advantages of milk, then it can increase market
demand and increase sales ultimately. Developing educational programs can also be profitable.
The promotion of milk consumption in schools by the Malaysian government offers a noteworthy
prospect. Dutch Lady can work with government agencies and educational institutions to establish
itself as the milk provider for school programs. This fosters enduring brand loyalty in addition to
raising product visibility and consumption among kids. Ultimately, with its strong brand known by
Malaysian, Dutch Lady can boost its sales.

S-T Strategies
S-T strategies involve using strengths to minimize external threats. Dutch Lady can lessen the
effect of inflation with cost-reduction strategies. Dutch Lady can save production costs and
improve operational efficiency by keeping up its investment in robotic manufacturing lines and
automation. Competitive pricing allows for the transfer of this cost advantage to customers,
sustaining sales volumes despite rising raw material expenses. Furthermore, by keeping
manufacturing costs low, the business may protect itself from the negative effects of inflation on its
finances and remain profitable. Next, Dutch Lady can counter price sensitivity with product
differentiation. Dutch Lady can emphasise the unique advantages of their products like better taste,
superior nutritional content, and innovative packaging to defend higher price. Despite price rises,
targeted marketing campaigns and promotions that highlight these distinctive qualities can support
the maintenance of consumer loyalty and sales volumes, lessen the negative effects of price
sensitivity.

W-O Strategies
W-O Strategies focus on minimises weaknesses to seize opportunities. Dutch Lady can create a
dashboard for market share to improve market understanding through investments in
advanced analytics and technology. This platform provide real-time insights on customer
preferences, rival strategy, and market trends, enable Dutch Lady to take well-informed strategic
decisions, adjust to changes fast, and profit from the rising demand for milk. Dutch Lady will be
15
able to keep ahead of the competition and aggressively handle market opportunities thanks to this
improved market insight. Ultimately, it can increase demand, sales and growth rate of company.
Next, Dutch Lady can improve channels of distribution for direct market knowledge. As we
know, Dutch Lady's direct market experience is limited due to its heavy reliance on huge retail
outlets. Dutch Lady can collaborate with smaller retailers and investigating direct-to-consumer sales
strategies including home delivery services and e-commerce platforms. With the help of this tactic,
Dutch Lady will be able to interact with more customers, build stronger bonds with them, and get
feedback straight from the source. Gaining a deeper understanding of the demands and preferences
of their customers may help Dutch Lady better adapt their products and marketing activities, which
will boost customer happiness and loyalty. Ultimately, it can increase demand, sales and growth
rate of company.

W-T Strategies
W-T strategies aim to avoid threats by reducing weaknesses. Dutch Lady can boost market
tracking and response times by creating a market share dashboard. This tools enable the
corporation respond quickly to changes in consumer behaviour, rival strategy, and economic
situations. It also can help to reduce the effect of price sensitivity. When have this market share
dashboard, the company knows it sets its product prices higher than its competitors immdiately and
will cause customer to switch to competitors, it can react rapidly by enhancing product features or
lowering product price to retain customer. Next, Dutch Lady can spread out distribution to
protect against the effects of inflation. Dutch Lady's production costs and sales prices are
susceptible to the effects of inflation because to its significant reliance on major retail outlets. Dutch
Lady may lessen this danger by working with smaller merchants, looking into internet sales, and
introducing direct-to-consumer delivery choices. By reducing the company's reliance on inflation-
driven cost rises, this diversification aids in preserving steady sales volumes. Dutch Lady's market
position can be further strengthened by interacting directly with customers through alternate
channels, which can also enhance brand loyalty and yield insightful market data.
726 words

16
Conclusion

Dutch Lady Milk Industries Sdn Bhd (DLMI) has shown resilience and adaptability in the
highly competitive dairy industry in Malaysia. With its well-established brands and diversified
product range, DLMI has effectively capitalised on its strengths, such as a solid financial position
and strong market share, to remain competitive (61st Annual General Meeting, n.d.). However, the
company has faced various challenges, including economic volatility and supply chain disruptions,
which have impacted its profitability and operational efficiency (Annual Report 2023, n.d.).

On a prospective basis, the company's future performance is likely to benefit from its new
strategies aimed at increasing its market share and operational efficiency. By investing in
technology and cost reduction strategies, Deloitte International is well positioned to mitigate the
adverse effects of inflation and rising production costs (Singh, 2024). In addition, focusing on
product differentiation and expanding distribution channels will help DLMI to capitalise on the
growing demand for nutritious and halal dairy products in Malaysia (The Star, 2024). These
strategic initiatives are expected to enhance DLMI's market position and ensure its continued
growth and profitability in the changing dairy industry landscape.

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