Swot Analysis Dutch Lady

Dutch Lady Industries Berhad is a food and beverage industry. By using Porter's five forces analysis, the threat of new entrant is little as in Malaysia. The milk industry market had controlled by several big firms such as Nestle, Fonterra and Dutch Lady. But in food and beverage industry the threat of new entrant is high because food and beverage industry are quite easy to enter as the capital condition of entry is low. Next, the bargaining power of supplier is moderate as Dutch Lady has an interdependent relationship between Dutch Lady and Veterinary Service Department which is the provider of the Dutch Lady. Furthermore, the bargaining power of buyer is moderate because of only a rare alternatives for customers to choose if they want to

The government launched tax policy on this product to keep political stability. Many vacancies are available at Dutch Lady. Moreover, the political stability of the company is high. In economic factor, Dutch Lady affects the purchasing power of buyers and the firm's cost of capital. If the inflation decreases, the demands for the consumer increase, so the company needs to produce more goods. Otherwise, the economic growth of the company is quite healthy. In social factor, the demographic and cultural features of the external macro-environment in Dutch Lady influence his consumer needs and the size of potential markets. The social factors are importance on safety, population growth rate, health consciousness, age distribution career attitude, the role of the woman, for example, Dutch Lady decreased the demand for milk because more people are facing diabetes or concerned about health, so they have to reduce the sugar level in the products. Lastly, in technical factors can lower barriers to entry, decrease minimum sufficient production levels and impact outsourcing decisions. Technical factors are self-regulation, technology influences and rate of technology transformation. Dutch Lady is using high-tech machines to produce a vast bulk of dairy products. They have to decrease human labor to save

There are Nestle (Malaysia) Berhad and Fraser & Neave Holdings Berhad. In SWOT analysis for Nestle, the strength for Nestle is they sharing channels and geographic behavior, competency in organizations and benefits and the brand name evaluated at 7 billion dollars. The weaknesses are the failure to produce constant quality in food products and ineffective implementation of Corporate Social Responsibility. Next, the opportunities are rising demand for healthier food goods, obtaining startups specializing in manufacturing well-being products and building new joint ventures. Lastly, the threats are food contamination, the trend towards healthy eating, the growth of private labels and rising raw food prices. In SWOT analysis for Fraser & Neave, the strengths are managing market position stored on the powerful brand name, strength to maintain successful business enlargement contributing to stable financial performance with revenue growth and diversified enterprise operations linked with public geographic behavior. The weaknesses are fast maturing lease agreements and finish of the contract with the Coca-Cola company. The opportunities are unlocking value by uncovering interest in unprofitable business, high demand for real estate property in Asia and increasing demand for alternative lifestyle refreshments driven by rising health consciousness. The threats are the risk of foreign exchange