The objectives of this report is to present the findings of the tactical analysis conducted for Parkson Firm Sdn Bhd and recommend the key strategies that the organization should implement to be able to against with the competition. So, the survey begins by analyzing the general environment that affect the development of company, industry condition by using Porter's Five Pushes Analysis. The conversation part will identify the three stakeholders that have an effect on your choice making of company and group course. Next, review the strength, weakness, opportunities and dangers which can call SWOT examination. The SWOT evaluation determines and specifying the objective of the business enterprise or job and identifying the internal and exterior factors that are favorable and unfavorable for doing that purpose for company. Lastly, discuss about the main element selection conditions and recommendations for Parkson Company Sdn Bhd. to identify their ways of against their main competitive and keep maintaining its market show, market value and also their company reputation.
1. 3 Scope of the report
This report experienced covered the businesses of Parkson Company in China, Vietnam and Malaysia. For information, the statement had analyzed the inner and exterior environment and also its professional conditions and opponents which will be the factors of procedure growth for Parkson Organization Sdn Bhd. Additionally, the web research such as online article, online journal, online magazine that related to Parkson Organization Sdn Bhd is the major information resources for the analysis.
1. 4 Limitations
Parkson Corporation Sdn Bhd has their limitation too. Firstly, not all customers know the strategy of Parkson Company Sdn Bhd. It triggers them to lose their self-confidence towards the business. For example, from the operations of Parkson Company in China, it was proved that the market shares drop significantly. It highly rely upon China triggers customers to reduce confidence for their lack of the information about the company. Besides, the business sometimes demonstrated some uncertain of the real performance and problems. The real reason for is sometimes the activities do not indicate what the record have brought up so called transparency issues. Furthermore, Parkson Company Sdn Bhd cannot purchase their products through online. It show the inconvenient to the clients when they aren't free or busy. In addition, they have their limited marketplace. They only concentrate more on the high income females. Therefore, it demonstrates it does not have any obvious competitive advantages equate to other challengers. Thus, without the important information, the business will face plenty of difficult problem. In order to solve their problems for his or her company, they need to try to enhance their procedure management.
2. 0 Record Of The Organization
Parkson was one of the well known shopping malls. There is a great deal of Parkson shop can be found throughout the world. In other country such as China and Vietnam, there is a lot of Parkson wall plug were open to be shop. Parkson was one of the largest team store company in China and Parkson presently has 35 retailers in Malaysia. Parkson top quality shops was split into 36 brand and 2 Xtra branded. Parkson was set up in the year of 1987. In Malaysia, the founder of Parkson was the retailing arm of the Lion Group and it is rapidly became one of the most significant shopping malls in Malaysia. As an example, we will get Parkson shop in Kuala Lumpur such as Subang Parade, Pavilion and other stated as well in Malaysia. Inside the Parkson, it offers split into few departments. The departments were strategically split into different market sections and locations. The main purpose of the segmentations was protecting against the client to be baffling as the stores are categorized into 3 tiers depending on suitability of market and location. Because the Parkson was one of the successful retail center, it's been given a great deal of achievements as their growing from durability to power. Parkson always make an effort to get rid of the conventions and to bring a brand new point of view to the retail industry. For example, Parkson has been given a name of Malaysia Most Valuable Brands in '09 2009 or known as MMVB. MMVB is a part of a countrywide brand valuation study commissioned by an Association of Accredited Advertising Realtors Malaysia and conducted by Interbrand. Other achievements such as License of Excellence Awarded to Parkson Pavilion being the entire Best Retail Outlet in 2009/2010 and achievements that had attained by Parkson. Parkson has its moving forward aim for or mission. Parkson will constantly remains true to the needs and aspirations of the consumers. It offers promises to continue to boost themselves in order to remain relevant. Parkson has emergence of younger age group consumers who are well travelled, brand or image mindful and lifestyle-oriented would be the key of Parkson things to consider that may lead Parkson lead the Parkson brand strategy.
3. 0 SWOT Analysis
3. 1 Basic Environment
Demographic
First of most, the latest human population in 2011 is 26, 384, 446 in Malaysia. In Malaysia, there are numerous races. Hence, the ethic and gender diversity in the Malaysia workforce is on the rise. Although the workforce is on the rise, but one half of the Malaysian earn significantly less than RM3000 per month. Which means the buying vitality of Malaysian is quite low.
Economic
Nowadays, the unemployment rate was decrease to 2. 9%. But due to the recession, the show prices of Parkson have cut down from 5. 82 to 5. 39. During the downturn, the inflation occur, hence the buying power has reduced. For the reason that when the income makes from inflation period, it can only chase for fewer goods and services. Besides, the purchasers have higher price elasticity.
Political/Legal
There are some rules set by the Parkson. First, if we are surfing around the website of Parkson as a non-commercial consumer, we may download material shown on the website for non-commercial, personal only use. Second, if we are surfing the site as a worker, agent or person in any business company, we might download material displayed on the webpage limited to non-commercial purposes within your business or business.
Sociocultural
In order to get more potential buyers, Parkson is make an effort to understand each one of the customer segments, like the information about a common brand, spending electric power, types of purchase plus more. Besides, Parkson also support environment friendly, such as providing refillable perfume, KENZO, to lessen the impact of world.
Technology
The internet is more and more important. Many potential buyers more on the Web for information, entertainment, and shopping, retailers are discovering the necessity to use their online occurrence not simply to spur online sales, but to drive traditional-format sales as well.
Global
Going to globalization have to handle many problems. Trade obstacles continue to come down surrounding the world and since technology enables higher access to information, the world is now one-mega market of labor, capital, goods, and services. Besides, Globalization will also caused by the technology.
3. 2. Industry conditions (Porter's Five Forces Analysis)
It is proposed by Porter about determining five forces that would bring an
impact towards organization's behaviour on the market place.
Force 1:The risk of entry
It shows the market hurdle that hinder new competitors from getting into the
market. Besides that, it will show the effect of the prevailing and
potential competitors in the market.
Force 2:The degree of Rivalry
It shows the competitiveness and the level of competition on the market.
Besides that, it will also show determine the attractiveness of the particular
industry.
Force 3: The threat of substitute
It shows about how precisely easy can the goods be subsituted. For instance, can our current
goods be substituted with cheaper ones.
FOrce 4: Buyer power
Buyer power discusses the attention and size of the buyers. In addition, it shows
the impact that customers bring to for a certain industry.
Force 5:Supplier power
It is a reflection image of buyer vitality as it talks about the amount and size
of the supplier. Besides, it shows how much pressure the dealer can devote a
business.
3. 2. 1 The threat of the admittance of new competitors
The competitors of Parkson can be classified into 2 types which can be immediate and indirect competition. Direct competitors of Parkson are like Isetan and Carrefour as the indirect rivals of Parkson are like Mydin, Jusco and Tesco. It really is hard for opponents to project into this business because the hurdle of entry is high. The hurdle of entrance is high because these businesses have been completely well established on the market place.
Besides that, it needs a huge amount of capital to start a similar business. Because it has already been established since the yr of 1987, the trustworthiness of the company is quite strong. It brings about a group of hardcore customes in Parkson, if people are considered as the dedicated or perish hard customers of Parkson.
Therefore, we think that even although market is of interest, it is very hard for new competition to venture into the business.
3. 2. 2 The level of competitive rivalry
The competition within in the market place can be viewed as as strong because fundamentally these businesses target the same group of people which are the high income females. There are many campaign offered Parkson to be able to lure the clients. However, there are several brands such as Laniege are only available in Parkson however, not other retailers. It raise the competitiveness of Parkson towards its competitors.
Even though it mainly targets the high income women, it still will not give up other target marks. For example, we can easily see "ON HER BEHALF", "For Him", "For Kids" and "For Home" in Parkson's website. It demonstrates it has a great deal of target groupings but it stresses more on women as their main customers.
Some of the rivals of Parkson such as Carrefour have started out Original Equipment Maker (OEM). They start producing their own products like Carrefour water. It really is indeed a hazard for Parkson as it heavily rely on others products to market. Even though there exists Parkson elite greeting card points for the clients to redeem something, their rivals are providing the same service as well.
3. 2. 3 The threat of substitute products or services
Instead of buying from Parkson, the consumer might change in their preference to try other products. Besides that, manufacturers normally will provide a lower price compare to Parkson, it could move purchase goods from the manufacturers instead of Parkson.
Parkson in essence are giving a location in order for suppliers to do their business in it. Therefore, Parkson must always be familiar with what is occurring on the market so that their competitors will not offer a cheap to appeal to the sellers from Parkson to go to their opponents.
3. 2. 4 The bargaining power of customers (buyers)
In Parkson, we believe that there are two types of purchasers in it. One type is the sellers because they're renting host to Parkson to start their business. The other types of buyers will be the normal shoppers.
In Parkson, the bargaining forces for purchasers are low because every one of the prices of the merchandise are basically fixed and non negotiable. For the distributors, it is thought that the better the brand name, the better the bargaining vitality because Parkson needs famous companies to include variety in Parkson. Furthermore, whenever a huge companies venturing into Parkson, it will raise the value of Parkson in the eyes of people.
3. 2. 5 The bargaining vitality of suppliers
The bargaining power of suppliers are for the sellers as well because the products of Parkson come from them. Therefore, it relates to the better the brand, the better bargaining ability for suppliers as well because the Parkson needs them and vice versa.
Besides that, it is not all suppliers are allowed to simply project into Parkson. Parkson will examine about the firms first such as history, financial article, reputation and others first before allowing a specific company venturing involved with it. Thus, To be able to maintain the brand name of Parkson, most of the tenders in Parkson are well established. Therefore, these tenders will likewise have strong distribution channel.
3. 3. Description of key stakeholders
3. 4. SWOT examination predicated on stakeholder groups
SWOT evaluation scans both internal and exterior environment of the companies.
The internal environment include the Strength (S) and Weaknesses (W) whereby the
external environment includes the chance (O) and Menace (T).
The strength of the business are normally use to judge about the competitive
advantages of a specific company. When we discuss the weaknesses, it is more about the absensce of the strength of the company towards certain specific areas such as legal coverage.
When we talk about the opportunities, it is about the future potential development or progress of a corporation which will be able to make money. Threat is generally discussing the changes of exterior environment that might brings about some problems for the company.
3. 4. 1 SWOT- Product Market Stareholder
Strength:
In product market stakeholder, it has a good reputation because of its customers and suppliers. Parkson has already been established because the year 1897, the reputation was already established way back when. Besides that, the clients of Parkson are both the customers who shop in Parkson and the vendors because vendors need to pay in order to do business in Parkson. Since Parkson has a good reputation, sellers are rushing to start their business in Parkson and Parkson will always have a guaranteed provider to become listed on them.
Besides that, there are few ways for the customer to attain Parkson such as Facebook group, Parkson official website, telephone call and others. These are the feedback from the clients and it really will bring a direct effect towards the grade of services in Parkson. Furthermore, Parkson efficiently build and impression that it's a high course and brand name place. Therefore, whoever that shops in Parkson are believed as so called "top quality" people. This may definitely boost the earnings of Parkson.
Weakness
As what we have mentioned, Parkson does not have enough target marketplaces. It targets only those customers who are abundant specifically high income females. Therefore, the majority of the people won't shop in Parkson as it is thought to be only a place for high income females rather than everyone.
Besides that, when we compare Parkson with their comeptitors such as Isetan and Carrefour, we do not really see a clear competitive benefit that is very in Parkson. It is undeniable that business are about assistance, however, it is about survival as well. Parkson should give attention to its marketing strategy and expanding its comsumer located in order to fit into the industry and compete.
Opportunity:
The opportunity that Parkson has for product market stakeholder is certainly going online. With this informational age, everything is approximately the internet and swiftness. Therefore, it is a truly an opportunity if Parkson can impart the eye-sight to people that customers can also purchase goods online in Parkson website. Parkson should not only limit themselves in extending their physical store, however the tendency of the internet should be studied health care too.
Besides that, we are still yet to see any Parkson product that is originated from Parkson. Therefore, we think that it is an chance for Parkson to get started on Original Equipment Manufacture (OEM). Because the trustworthiness of Parkson was already more developed and there are numbers of hardcore customers, if Parkson starts using OEM, it could boost the revenue to Parkson, at the same time, customers are more confident towards the products produced in Parkson.
The other chance for Parkson is merger. Since Parkson does not have a competitive using its competitors, it shows that actually both companies using the same strategy to aim for the same group. If this is actually the case, it can be an chance of Parkson to combine with its opponents so that when both companies work together, it boosts the quality of the products and it will definitely boost the revenue of the companies. Besides that, it will improve the quality of the products bought from Parkson.
Threat:
The threat that Parkson faces is the transfer in consumer preference and it is hard for companies to cater to every one of the customers' need.
Besides that, during current economic climate downturn, the purchasing electric power of constomers might land. It causes the clients to purchase lesser goods from Parkson. This may cause the income of Parkson reduces.
There are extensive online businesses have already been well established such as Mudah. my in Malaysia. Therefore, when there are new competitors moving into the market, this is a threat of Parkson because a amount of customers will be enticed away.
Strategy copied
Economic downturn affect purchasing power
Merger of opponents and competitors
Shift in consumer taste
New regulation
Online business
3. 4. 2 Organizational Stakeholder
Strength:
In term of the organizational stakeholders, we went to a parkson wall plug to interview two Parkson personnel who willing to show themselves as anonymous. The very first strength that they talk about is the competent of management. Besides that, they believe with the good and ethical business practices. It does not only promote whoever that tend to be senior whereby it looks at the competency of the employees.
Besides that, the employees were being cured very reasonably with a good work life balance. There are several programs that are being given to the employees for example company trip and company dinner. Each one of these are treated generously and they're administered fairly too. Furthermore, Parkson allows open up communication between top management and other employees in order to generate Parkson to be a better company.
Weakness:
However, there are several weaknesses in Parkson too. Based on the interviewees, they mention that Parkson is growing with an extremely conservative view toward business risk. Quite simply, Parkson normally play safe instead of thinking big. It really is understandable that it's unsafe to have risk, however, risk creates creativeness, invention and opportunity.
In addition, there may be transparency issue within Parkson. The employees do not really understand about the real performance and issues that is going on within Parkson. It directs us to the transparency issues in Parkson. The employees declare that sometimes the activities of Parkson do not mirror what the reviews shows. Quite simply, whatever that the truth is from the article of Parkson may not be true.
Opportunity:
In order to expand the business and working environment of Parkson, Parkson should become more aggresive and expert dynamic approch towards taking and managing business risk. Besides that, there mist be a much better communication of concept within the organization. Parkson should let the employees know about the real issues that is going on within Parkson. Other than that, the employees should be informed about the activities taken up to solve the problems too.
Besides that, anonymous uncovers that we now have issues about employing and letting people go in the company. A number of the employees recruited are not as skillful as expected. However, some of the skilled employees left the company with out a clear reason. Therefore, there should be a better communication in Parkson towards this matter.
Threat:
The menace that Parkson is facing is about the assurance of employees towards Parkson. Since you can find transparency concern within the business, it might cause the employees to reduce assurance towards Parkson. The worse circumstance might happen are employees will be going out of the Parkson.
Besides that, the employees can move with Parkson if indeed they do not understand the vision of Parkson clearly. A company without vision won't move far. It is the same circumstance to Parkson, the employees should be imparted the vision of Parkson so the employees can understand about the business better. Finally, employees loyalty in the business are doubted. Due to the lack of self-confidence towards the business, the employees might leave the company. However, the worse circumstance might happen if the employees proceed to their competitors and it will result in a huge disadvantage towards Parkson compare with their rivals.
3. 5. Overview of situation analysis
Strength:
First of all, we believe that it is low risk to invest in Parkson. Parkson was already established because the season of 1987. Quite simply, it is a comparatively strong company in the market place. In fact, there is absolutely no question about the competitiveness of the business. Therefore, it is a very safe investment for capital market stakeholder to purchase Parkson. Other than that, it is almost a guaranteed return if investors spend money on Parkson. Based on the financial article of Parkson, the dividend sent to the stakeholder are bringing up gradually from the year of 2005 to the entire year of 2009. The dividend that is directed at the stakeholder is really as Table 1:
Year
Dividend Sent in US Us dollars (in million)
2005
0. 025
2006
0. 084
2007
0. 120
2008
0. 145
2009
0. 150
Table 1: Dividend Delivered to Parkson's Stakeholderm(Source: Parkson Financial Record)
Other than that, it is undeniable that the brand of Parkson is already proven. Wherever and whenever we discuss Parkson, people know about it. It shows the recognition and the knowing of the folks towards Parkson.
Last but not least, it is legally secured such as brand. It really is impossible for other users to copy the name "Parkson" to run their business without getting the authorization from the company. It shows that the trustworthiness of Parkson will never be easily shaken anticipated to pirated products.
Weakness
The weaknesses that Parkson encounters are mainly about the self confidence of capital market stakeholders towards Parkson. The administrative centre market stakeholders do not really know the investment strategy of Parkson. Therefore, it triggers the investors to lose self-confidence towards Parkson.
Based on Hwang DBS Vickers Research, the market stocks of Parkson have reduced from RM6. 20 to RM5. 51. The worthiness of the stocks demonstrates the performance of the company. Therefore, it causes the investors to reduce self-confidence towards Parkson as well. This happens because Parkson target the most in China instead of segregating their business similarly in every three countries they are investing in. In fact, they Parkson put in the most work in producing China's market. Therefore, if China experience slow economic expansion, it will directly affect the performance of Parkson.
Opportunity:
Business is focused on teamwork. So, the ability for Parkson to improve is merging with their competitors to enhance a greater revenue, reputation and brand. However, they really need to look into the assignments as merging is not always successful and it may end up in a tragic situation.
Besides that, it is recommended for Parkson to increase the transparency within the company. Parkson may show the administrative centre market stakeholders about the investment strategy that is putting into action and going to be integrated for example development strategy, expansion yet others.
Other than that, based on Hwang DBS Vickers Research, the international interest towards Parkson has increased from 20% in the year of 2009 to 25. 4% in the year of 2010. It shows interest of international traders towards Parkson which is indeed a great opportunity for Parkson.
Threat:
As we can easily see from the website of Parkson, there are a few areas that are "For Him, ON HER BEHALF, For Kids as well as for Home". However, most of the merchandise are for "For Her" category. It uses up about 50% of the search list in Parkson website. Based on Kelvin Chan, the Parkson's Executive Director, their major customers are high income earners. Therefore, I believe when Parkson aim for only high income earners, especially women aren't enough. Actually, Parkson should start focusing on a wider market.
If Parkson is not careful, it could be ingested alive by their rivals. Business world is awful and cruel. If Parkson is not alert, particularly when they are really one of the influential and famous companies on the planet, it is very important for Parkson to maintain its position in the market. If they fail to do this, we believe there are many companies getting ready to take over Parkson.
Other than that, market downturn might impact the overall performance of the company which is something that is absolutely out of these control. We might not exactly use SWOT analysis to look for growth in the company. However, it definitely is an eyesight opener for us so that we can understand about the business better.
4. 0 Strategic Options
Based on the situation analysis conducted, several strategic options or alternatives are proposed for the organisation. These strategic options include:
1. Set concentrate on customer higher
We suggest Parkson Holdings up grade their procedure system and relocation their business route by placed their concentrate on customer among medium course income and top school income customer. Parkson Holdings also can invite more top quality company such as Gucci, LV and other come place their shop great deal. You can find few shopping mall that sell luxury goods in Malaysia and previously Parkson Holdings' image in public already is a high cost expenses shopping mall. So now, we suggest Parkson Holdings try to upgrade their image and specific their customer portion, which medium and high classes' income customers.
2. Refurbishing and Create a new building
For example, Parkson renovate the whole structures by update its store image and account. Parkson can refine all the item to higher income products and brand blend. This indirectly can boost the efficiency of retail space.
Besides revamp the whole buildings, we would suggest that Parkson re-construct the building for case let Mahkota Parade to be the Parkson Holdings shopping organic. Parkson can do all their business activities inside the shopping complex. Besides that, they also can lease their shop tons to other suppliers or clients to earn earnings.
3. Preserving cash for potential M&A opportunities and retail property acquisition
Table 1. Major M&As Announced During 2006
Value (RM Billion)
Parkson Retail Group, Lion Diversified Holdings Bhd, and Amalgamated Pots Bhd
4. 3
Source: PWC Research
As we can easily see from the Desk 1 above, when Parkson Retail Group merged with Lion Diversified Holdings Bhd, and Amalgamated Pots Bhd, it can create the value of RM4. 3 billion. Thus, we claim that Parkson can choose to preserve some money for potential mergers and acquisition opportunities and retail property acquisition. As mentioned in the first strategy, we suggest Parkson aim for medium and high classes' income customers. Therefore, Parkson can choose to combine with Cold storage area makers that sell high quality products like organic foods and used organic development method. We select organic and natural foods as inexperienced products and services are now becoming the guts attention of consumers.
4. Diversified product line to other industry and Retail space
We suggest Parkson to invest in hotel industry apart from just Parkson shopping centre organic. For instance: we can refer to Hatten square which have their own properties for retail shopping complex and also hospitality service suites in addition turn out the ideas of IT (IT) in their structures. In addition, according to Parkson, it will target to grow its retail space by 15% - 20% every year or 9-12 new stores in the countries where it runs. Hence, we suggest that Parkson can target country like India as India now is an easy growing country. If globalization success, this indirectly can assists with the formation of international financial system.
5. Live green projects
For example, we can communicate to Parkson Subang Parade, Parkson Company Sdn. Bhd. by executed the 'No Vinyl Tote Day Every Saturday' green advertising campaign to lessen plastic carriers in response of Environmental Social Responsibility (ESR). However, this strategy only covers in Selangor Point out. Thus, we claim that this strategy can be further integrated to all parts of Malaysia. Furthermore, we also could follow the step of 1 1 Utama retail center in Petaling Jaya by come out a technique garden which includes the system that reduces its utilization of treated tube water by 30%, and a building automation system with detectors that automatically change lighting and temperature. Moreover, we can also could adopted the step of Tesco Greener Living by come out green products which using recycle materials to handmade products.
6. Involve in Charity
Apart from that, money that people earn from the Green tasks will contribute to the modern culture for charity work. Parkson can also sign up for charities and support groups that focus on eco-friendly lifestyles and options. Parkson can donate items to schools, churches, city night clubs and organizations. Parkson can promote themselves at eco-friendly happenings and give away items like free gifts or test at college fairs, carnivals, or local cities farmers market. Involved with such occasions and can help people may become aware of contributing to the fitness of our planet and indirectly to help Parkson build a superior images in market.
Key selection criteria
According to Brundtland Commission rate (1987), lasting development is development that fits the needs of today's without compromising the power of future generations to meet their own needs. Lasting development is a deserving goal for small and big businesses everywhere, especially for globalization firm. As members of various communities, we know that society, the environment, and the market are interconnected. In order to maintain lasting image and revenue, Parkson can look few strategies that try to create and even more focus on consciousness, reputation, make profit and efficiency when making strategies.
Profit maximisation is the aim of the owners and shareholders. Company will attempt to help make the most profit as is feasible. Among the essential factors for Parkson must concentrate its sales progress. Parkson need make as much sales as possible. This may be because we believe the success of the business depends upon being large. Large businesses can also benefit from economies of level. In order to this conditions, Parkson will attempt to up grade its store image and account, diversified product line to other industry and also can merger or joint-venture with other sector industry. When Parkson battle to merger with other sector industry or use differentiation strategy, it can benefit Parkson establish good reputation by thrust business into the limelight and open up entrance doors for Parkson. Besides, it also can assist Parkson to spouse with a larger company such as Lion Diversified Holdings Bhd, and Amalgamated Containers Bhd to access their large set of customers and it will frankly improve Parkson profitability and EPS. Parkson can promote the risks with partner and help to gain higher competitiveness; nonetheless it can be rigid Parkson to enter the new market and it will become hurdle to entry for Parkson.
Pay attention to the environmental impact of our economic practices, and make an effort to ensure that our communities are healthy, nice places to reside. Nowadays, organizations started to paying attention and positively producing greener products and services to create a center of attention consumers. Parkson Firm Sdn. Bhd. actively involved in sustainable development and follows the pace to adopt environmentally reasonable business key points and translate these into action. Parkson Firm CEO raises understanding and reputation at this time, and he feels that the positive impact for the environment is huge for 2011 and well into the future. He adopt this approach because he consider and aware that working a renewable business isn't just good for the environment but good for their business's important thing because conserving resources and reducing waste saves money However, Parkson Corporation Sdn. Bhd. promotes "No Plastic Handbag Day" only covers in Selangor Talk about in the beginning, it haven put into action in other areas. Environmentalism is not a enough for several places; it will engage numerous urban centers and every branch to advertise the use of friendly to the environment bags in order to obtain additional productive and successful results. Even extensive Parkson Firm Sdn. Bhd. got implement eco-friendly, nonetheless it still no enough to contributing to a wholesome world and better place for all of us and for the future. Parkson should put more improvement and augmentation to apply eco-friendly. For instance, we can follow the step of Tesco Greener Living by turn out green gifts which using recycle material to handmade products. We also can put more focus of store on the eco-friendly category. Parkson can let customers see that we now have exercising what their sell. If customers feel like you have a true passion about the surroundings, it can help them purchase these items with confidence. If customer is considering an item, try to offer them an identical item that is eco-friendly. It not only can make contribution to making the planet a better place; it also straightforwardly can enhance and create recognition to customers and build customer commitment.
In order to determine where it is going, the organization must know exactly where it stands, then determine where it desires to go and exactly how it will get there. Parkson need to carefully create unique value proposition and strategies in comparison to competitors, executed through operations offering different and designed value to customers and drives continual improvement within the business and steps it toward its eye-sight to be remembered as market leaders in market.
6. 0 Recommendation
Key Questions
Option/Hypothesis/ Recommendation
Decision Criteria
Pros
Cons
(i)Parkson had began to pay attention to environmentally friendly impact of your economic procedures, and try to ensure our neighborhoods are healthy, pleasant places to live on.
(i)Parkson should propose the shop outlet to truly have a zero plastic carrier day in order to archive a renewable environment concentrate on.
(ii)Zero plastic on Saturday was not enough to affect the customer to become more renewable environmental minded but should apply to other day as well.
(i)No plastic tote was presented with to the customer whenever the customers purchase their stuff in Parkson during Sunday period.
(ii)The clients who really or require the plastics tote will be fee for 20 cent each.
(i) A inexperienced business able to provide a better environment and also a good for their business's important thing because conserving resources and cutting down on waste preserves money.
(ii) Able to prevent damaging the environment from the chemicals in cleaning products that are sprayed out in to the air.
(i)There will be some of the client dislike the strategy of the Parkson
(ii)The client might be dislike to shop on Saturday.
(iii)The non given clear plastic bag strategy may cause the sales of the Parkson drops.
(iv)Other opponents might gains advantages on Parkson strategy and increase their sales.
Since everyone of the retail center had started to pay attention on the inexperienced environment activities, the Parkson also had started out the move onto it. Most of the shopping complex experienced their own strategy like no plastic material tote will be provide to the customer who purchase products or item on Sunday. We believe it isn't enough for Parkson to active on this program. Because of this, Parkson can improve it insurance agencies more zero vinyl bag times for the week. Nevertheless, it's important for the shop wall plug in Parkson to be commercial with them as well. The shop shop can also propose never to provide plastic handbag to the customer. In directly, it can benefit the environment to be an improved place and can also help them to save their cost.
(ii) How Parkson time and energy to times change improve their Parkson images and environment of the shopping organic?
(i) Parkson can create their own super market no need other very market or hyper market such as Cool Storage space. With this, Parkson can have an improved environment and gain more competitive advantages.
(ii) Once Parkson have their own brand, they can try to sell their product at other retail center in order to have a different shopping environment for the customer.
(i)Parkson always create or refurbish their building For example in Malacca( Mahkota Parade had relocate the shop location and coloring their building.
(i) Parkson able has a better management for the shop.
(ii) Parkson in a position to create new image, give new shopping feels and appeal to more customer to shopping.
(iii) They also can rent their shop tons to other suppliers or clients to earn income.
(v) Parkson upgrade their operation system and relocation their business direction.
(i)It might comsume a lot capital for the restoration and building development in order to truly have a new building.
(ii)Is difficult to find a fresh place or location to construct a fresh building
(iii)When there's a renovation, it could disturb the firms which are going on.
(iv)When there is a renovation, A whole lot of space consuming will be needed. Like the spot to store the reconstruction stuffs and auto parking lots.
When time recent, the customer might be began to get bored because of the unchangeable environment or shop in the Parkson. Because of this, Parkson had began to change their image and the shopping environmental. Even as we can see, almost all of the Parkson acquired reconstructs their building, painting their building and so forth. I believe it is not enough to meet the client needs. Parkson can try to create their own very market or hyper market rather than booking their space to the Cool Storage or Large. It can benefit them to get more competitive gain and have a better shopping environment for the customers. It might include a great deal of capital but we believe that Parkson in a position to generate more revenue in the foreseeable future. By that time, Parkson no more hinge to other very market or hyper market but it offers it own brand or name of the excellent market.
(iii)What functionality should Parkson develop to guarantee the success?
(i)High diversification to increase the profit.
(ii) Since Parkson have their own member card or member day, Parkson should have more attractive compensation which can redeem by the customer with the reward link point.
(iii) Parkson should catch the attention of more investor to purchase to their talk about as well. With a huge capital provide from the buyer, Parkson can develop more their shopping more or maybe have an improved management.
(i)High diversification.
(ii)Differentiation strategy.
(iii)Focusing on their products.
(i)Less risk with the high quality costing and increase retail consumer market.
(ii) Parkson in a position to gain more competitive advantages.
(iii) Having a interesting or attractive praise, it can indirectly effect the customer to invest more on their products.
(i)Economic depression.
(ii)Competitor strategy to counter the Parkson strategy.
(iii) If investment by the Parkson fail will cause the entrepreneur occurs damage.
(iv) The expense of the incentive to member might include a huge capital.
Parkson was one of the famous shopping mall. In every team of the Parkson, we will get a great deal of product sell by them and it includes show Parkson product is highly diversified. It is one of the good technique to increase the income. But there is a weakness included in this. A lot of the product sell by them were more to the feminine department looking at with section. Parkson should implement differentiation strategy and make the diversification directly into more wide area. Focus more on the product brand and make it balance well be one of the great solutions because of this matter.
7. 0 Conclusion
Based on the entire assignment, Parkson got do a great careers and able to maintain steadily its competitive positions. After evaluation the Parkson environment, stakeholder and other thing, it shows that Parkson able to develop more and gain more competitive advantage in futures. A lot of the product sell by Parkson gets the quality and branded products. Therefore it is able to compete with other competition such as Jusco and other malls. With all the strategy produced by Parkson such as zero clear plastic beg day, build new building and diversification product line will give an optimistic impact to them. The carrying on development of strategy shouldn't stop here and must continue every once in awhile in order to gain more competitive advantages and ensure the success of the Parkson. According to the swot analysis for each of the stakeholders, it had mentions the Parkson durability how to contend with others, weakness of the Parkson, opportunity that Parkson can reach perform better and the risk or barrier which stop the Parkson to improve their performances. Different swot examination to different stakeholders generates different results. Therefore the way to stay it also will be different. After the Parkson cases have been study, our communities experienced suggest a few advice which can help Parkson to be a much better place and better because of their performance. Being a conclusions for this assignments, we believe that Parkson acquired it owns style of doing its business. There was a great deal of thing can b develop and overtake the weakness which was presently facing by Parkson. Parkson also has its own images, influencing electric power, strength and top secret way to be a successful shopping malls.
