Proton Market Share

SUMMARY Proton, a Malaysian automobile trademark, was developed and commercialized in 1983 by a joint venture between Mitsubishi Motor Corporation (MMC), Mitsubishi Corporation and Heavy Industries Corporation of Malaysia (Hicom). Since then, it was Malaysia's dominant carmaker until the establishment of Perodua in 1993. In 1993, a model called Proton Wira was introduced based on the Mitsubishi Lancer and more than 220,000 units were sold between 1996 and 1998. By 2002 Proton held a market share of over 60% in Malaysia, which was reduced to barely 30% by 2005 and in 2006, Proton's sales dropped 30.4% from 166,118 in 2005 to 115,538 for the Malaysian market, with a later report indicating a 55% fall of sales to 962.3 million ringgit; its lowest in at least seven years. Proton's market share fell from 40% in 2005 to 32% in 2006. Proton is planning a major extension of its production to superior services both in its domestic markets and to hit export sales with more dynamism in the next five years, by launching a number of new models brought to market over the next two years with the company set to decrease the number of platforms in its array while up scaling the number of diverse products it offers in a larger range of sectors. The company has adopted eight key strategies to ensure future growths, which are, product development as well as quality enhancement, cost improvement, enhancement of production and efficiency, vendor development, the development of human capital, enhancing sales distribution and after sales service and the establishment of strategic partnerships and alliances. Proton will also target a larger market share in export markets across four key regions including the UK and Western Europe, the Middle East, South East Asia and Australasia. QUESTION 1 Evaluate Protons current strategic position and its business environment using analytical concepts appropriate to the organisations situation. MARKET SUMMARY Proton is a Malaysian national automobile manufacturer which is established since 1983. Based on technology and parts from Mitsubishi Motors, production of the first model, the Proton Sagas builtup began in September 1985. 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. In 1993, a model called Proton Wira was introduced based on the Mitsubishi Lancer/Colt. More than 220,000 units were sold between 1996 and 1998 . Proton Perdana, based on the Mitsubishi Galant/Eterna, was first produced in 1995, intended for higher end market. The Proton Waja (Proton Impian in UK), which launched early 2001, is the first car model designed internally by Proton. By 2002 Proton held a market share of over 60% in Malaysia, which was reduced to barely 30% by 2005 and was reduced further in 2008.