Company examination on gigantic hypermarket malaysia

This paper is a company analysis on Giant Hypermarket Malaysia generally, but specifically concentrating on Giant Hypermarket Sabah. Large Hypermarket is a significant supermarket and dealer chain in Malaysia. It is a subsidiary of Dairy products Plantation International Holdings (DFI) and is headquartered in Shah Alam, Selagor. In this paper, first of all we target our evaluation in figuring out the Strength-Weaknesses-Opportunities-Threats (SWOT) of Large; in addition, we constructed a SWOT Matrix for Large where we identified the SO, ST, WO and WT strategies, which we think Giant should apply to improve their competitiveness. Next we concentrate our analysis on the external as well as the internal analysis on Large. In the exterior analysis, we middle our analysis predicated on two instruments this is the General Environment which is also known as the PESTLE analysis to help us to understand the external environment in which the organization operates, and also Porter's Five Pushes Model to identify their industry competitiveness. On the other hand, in the inner analysis, we also used two instruments to analyze Giant, which is by doing an analysis on the Value String as well as by figuring out their market growth and market talk about in BCG Matrix. Last but not least, we conclude our examination with some advice that people suggest Large should focus on to better improve their supermarkets.

INTRODUCTION

Giant Hypermarket, which is possessed by Giant Capital Holdings (GCH), is one of the largest hypermarkets in Malaysia. It had been founded in 1944 by the Teng family in Kuala Lumpur. It's headquarter is situated at Shah Alam, Selagor, in the meantime Sabah-Sarawak-Brunei Regional headquarter is situated in Kolombong Wall plug, Kota Kinabalu. The key visitors to the success of Giant Hypermarket are the Teng Family themselves, and CEO Dato' John Coyle.

Giant is functioning under the retail industry. Its main competitors are Servay, Milimewah, and Chua Kah Seng in Sabah, while Mydin for the european part of Malaysia. Giant's mission was been to give you a wide variety of products at the cheapest possible price. Their slogan which says "Everyday Low Prices, big Variety and Great Value" communicates the company's mission to the public.

Although Large Hypermarket have been long operating at the european part of Malaysia, its operation is fairly not used to the local folks of Sabah. Knowing this fact, Large has included claims such as Sabah, Sarawak, and countries such as Brunei in their proper plan for expansion. In order to implement their tactical plan, their strategy includes determining stores to takeover (i. e. Likasmart in Sabah), and presenting low prices by having staffs surveying competitor's prices at major supermarkets outlets.

Giant Hypermarket currently has around 1, 000 employee in Sabah itself, and 10, 000 employees in total nationwide. A number of the employee benefits that Giant employee receives for working in Giant are worker insurance, a 10% discount when purchasing within group (i. e. Giant Hypermarket, Guardian Pharmacy, and Cold Storage area).

Besides having plenty of wall socket stores around Malaysia, Large also has outlet stores surrounding the Southeast Asia countries such as Singapore, Indonesia, Vietnam, India and also Hong Kong. Information about Large Hypermarket and marketing promotions details can be seen through Giant's Formal Website which is www. giant. com. my.

Below is the price comparison we did during our interview stop by at Large Kolombong, between Large house brand products with other major brands. It really is clear that Large house brand products are cheaper compared to other major brand which is really as the following

Product Large Brand

(RM) Other Brands

(RM)

Baby diapers (M) 27. 49 35. 99 (Pampers)

Dish washer 3. 79 4. 39 (Sunlight)

Liquid Softener 6. 29 6. 99 (Softlan)

Sos Ketchup Chili 1. 99 2. 29 (Maggi)

Box Cells (4's) 6. 99 7. 89 (Top)

Mineral Drinking water (1 L) 0. 89 2. 19 (Spritzer)

(500 ml) 0. 69 1. 19 (Spritzer)

BACKGROUND FROM THE COMPANY

Giant Hypermarket is a major supermarket and merchant string in Malaysia. It really is a subsidiary of Dairy products Plantation International Holdings (DFI).

The Large store brand was founded by the Teng family as a simple grocery store in another of the suburbs of Kuala Lumpur in 1944. Its objective was to offer a wide selection of products at the lowest possible prices. As its reputation grew, so have its business.

Dairy Farm, which acquired Large in 1999, regarded that the main element to Giant's success had been its capacity to consistently offer value for money products. It maintained this core process even as it began changing Giant into a national and international brand.

After six years of effort, including redesigning the stores, the launch of the non-food products into the Giant hypermarkets, the implementation of international retail criteria that includes security, cleanliness, organized training, and a captivating shopping environment as well as centralized buying functions and better operations, Dairy Plantation has made Giant the undisputed head in Malaysia's retail sector.

In 1999, the first Giant Hypermarket store opened in Shah Alam, Selangor. By 2007, the business had grown to operate a complete of 85 hypermarkets/ supermarkets in Malaysia with wall plug size ranging from the 350, 000 sq. feet hypermarket in Shah Alam to the 11, 000 sq. foot supermarket in Bangsar, Kuala Lumpur. The string also includes 7 stores in Singapore and 15 hypermarkets in Indonesia. Large hypermarkets offer a wide range of local products, such as fresh local fruits, fruit and vegetables, and seafood in a moist market environment.

SWOT ANALYSIS

A SWOT research summaries the main element issues from the business environment and the tactical capability of a business that are likely to impact on strategy development. Additionally it is useful as a basis against which to create tactical options and determine future training of action. The goal is to identify the scope to which the current durability and weaknesses are highly relevant to and with the capacity of interacting with the changes occurring in the business environment.

Here, we are going to examine the strength-weaknesses-opportunities-threats of Giant one by one in order to totally understand the obstacles Big face. First, we will discuss about their talents. Large indeed is one of the greatest players of the retail industry in Malaysia, having over 85 branches multiply throughout the united states making them one of the greatest supermarket chains in Malaysia, which is good because this way they can take the market show and little by little space out their challengers. Unlike TESCO and Carrefour which only centers their customers in major locations, Giant's 85 branches are strategically located throughout the united states and states, making them more appealing with their customers.

Besides that, having their own house brand is a good way of marketing their brand to their customers. Giant house brand is quite cheap in comparison to other major brands available in the market, which will make them more sellable to their consumers. In addition, Large has a trustworthiness of value for money, which offers low prices, sometimes even lower than cost, which is good in the attention with their customers.

Giant also has a good marketing team whom are in charge in marketing and promoting Giant brand name to the general public. The primary marketing tools of their marketing team is by buying billboards space, advertising in newspapers and by distributing flyers and brochures. These methods is proven to be useful particularly when Giant first launched their stores in Sabah, because relating to their professional, more and more customers will their supermarket in comparison to before when they initially opened. Another durability of Giant is the fact, they have a good marriage using their suppliers where in the recent standard opening with their store in Kolombong, they made a deal with their dealer to give them free products when they purchased more for the beginning day. The free products are subsequently promoted for only RM0. 10 on their opening day which in turn causes many to turn up to buy the products, and indirectly also purchased other products in their store.

The main weaknesses for Giant are that, they can be experiencing a higher turnover rate using their worker especially in the procedure department, many of their employee resigns after only working a couple of months in their supermarket, which is not good for them as they will need to find and employ new employees. Besides that, running a supermarket especially the hypermarket in Kolombong requires high maintenance, if they're unable to keep up with the maintenance, it'll damage their reputation. For example, their store in Karamunsing which is not taken care of well, the store has a certain smell which comes from their previously freezing section and the store product aren't organized well for the convenience of their customers.

Another weakness is the fact large size leads to inefficiency in bureaucracy; their decision making is centralized in their head office. Therefore, anything took place or anything they are doing, they need to first seek advice from their management team in Shah Alam. Also, Giant is experiencing a higher advertising cost, especially in Sabah, where they have to introduce their brand name to entice their customers and take market show.

Furthermore, in rates their products, Giant does use the traditional sticker type costing, they uses the shelf type costing which is puzzling to their customers, because the purchase price list on their shelf are not frequently updated and frequently wrongly place. There are many incident whereby a customer observed a different price of the product they want to purchased but when they extends to the counter, they may be asked to pay an alternative price which is a lot higher, this create unhappiness and dissatisfaction amongst their customers.

There are several opportunities for Giant. Firstly, they have got ready customers, homeowners now are increasing and everyone needs to buy home products, this creates a good demand for them. Another opportunity for them is to explore into new location in Malaysia, which is also together with their current proper plan which is to start to 40 branches throughout Sabah, Sarawak and Brunei. Besides that, they can make an effort to increase the variety of their residence brand, as well as introducing other products for his or her house brand to compete with their competition.

The hazards experienced by Large are that there is stiff competition within the industry, there are other major supermarket chains, such as Tesco, Servay, Milimewah, etc. in Malaysia which is competing alongside with Giant in the retail industry.

Another threat is that although their residence brand is known to their customers, but it is not their customers more suitable brand, their customer still prefers other proven brand name products compared to theirs. Also, survey done by Large shows that primarily Sabahan cannot accept Giant due to varied reasons, this can be scary on their behalf because if their customers still cannot recognize them for a long-tem period, thus less people will shop in their store and sales will lowers.

Lastly, the threat faced by Large is online shopping. We are actually in the IT age, people have become used of using pcs to do their daily process, for example to pay bills, transfer money, as well as to buy things. Websites which provides online shopping are such as www. ebay. com. my, www. lelong. com. my, and etc. Thus, online shopping can create risks for Giant classic brick-and-mortar type of business.

On the other hand, the SWOT matrix can be an important matching tool that helps professionals produces four types of strategies: SO (Strength-Opportunities), WO (Weaknesses-Opportunities), ST (Strength-Threats), and WT (Weaknesses-Threats).

SO strategies use a firm's inner strengths to have advantage of external opportunities. For the truth of Large, their SO strategies might be to explore into the areas in Malaysia, such just as Tawau, Semporna and Miri, as well concerning extend internationally in Southeast Asia countries including the Philippines, Thailand, and etc. Also, to increase variety and add product line with their existing house brand product to get customer's attention.

WO strategies purpose at improving inner weaknesses by firmly taking advantage of exterior opportunities. For his or her WO strategies, we think that Large should provide sufficient training and even more employee benefits to their staff especially in the procedure department, to reduce their turnover rate in the foreseeable future. Besides that, they also needs to renovate or refurbished their attained supermarkets to resemblance their Gigantic notion and reputation and also to continue maintenance of the outlet. (E. g. Giant Karamunsing wall plug is not managed well)

ST strategies use a firm's strengths to avoid or reduce the impact of exterior threats. ST strategies that might be appropriate for Giant is always to continue technique to open more branches to increase market show and also to eliminate competition. Besides, to increase marketing

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