Swot Analysis Of Mydin

Situational Analysis
SWOT Analysis
Strengths
i. Transformational leadership
MYDIN’s strength is in its leaders itself, both Mr Mydin Mohamed and Dato’ Haji Ameer Ali. Mr Mydin is a leader who always seeks for opportunity and is not afraid of changes. In the beginning, Mr Mydin started his business as a sole proprietor. Later on, Mr Mydin proceeds to opening Syarikat Mydin Mohamed. Having been successful in two east coast states, Mr Mydin expands his business by opening a third branch of MYDIN in Jalan Masjid India, Kuala Lumpur. Under the reign of Mr Mydin, Islamic value and practice in the organization are encouraged. Mr Mydin constantly reflects Islamic values and practice in his actions. This has motivated MYDIN’s employees to follow these

In order to keep its operation cost low, MYDIN does not do excessive advertising. Its advertising activities in the media and flyer are only before the peak period like festive seasons. It depends mainly on membership drives among petty traders and wholesalers and word of mouth promotion from their satisfied customers. Although such advertising methods will keep the operation cost low, there are some disadvantages. Firstly, word of mouth promotion can sometimes bring negative image to MYDIN. For example, dissatisfied customer will voice his discontentment to other potential customers. This will tarnish MYDIN’s reputation. Since MYDIN has little advertising activities, it is difficult to convince other potential customers. Also, membership drives will only help maintain current customers. It is difficult to grab the attention of other potential customers since MYDIN’s competitors also have membership

This is a perception that MYDIN is a store for Muslims. Therefore, it is no wonder that majority of MYDIN’s customers are Muslims. This shows that MYDIN has received few supports from non-Muslim customers. This is a weakness to MYDIN because non-Muslim makes about % of the population in Malaysia. Hence, it is crucial for MYDIN to make it clear that its stores can meet the needs of non-Muslim customers.

v. Broad range of products and high level of inventories
Another weakness is the broad range of products MYDIN is handling. As MYDIN is operating hypermarkets, emporium, mini-markets, and convenience stores, MYDIN has over 200,000 unique products under its control. This requires MYDIN to keep track of each product’s flow daily. This also poses MYDIN with the difficulty of ensuring that these products are safe in the shelf.
With a broad range of products, MYDIN has a large amount of inventories in the warehouse that need to be managed properly. This large amount of inventories is also due to MYDIN’s strategy of buying in bulk. This is a weakness to MYDIN because it has to bear the cost of storing these inventories. Besides cost of storing, MYDIN has to bear with the possible of loss due to obsolescence, damaged, and expired products. Hence, bulk purchases are a part of weaknesses to MYDIN since MYDIN does not have necessary internal controls to reduce its cost of holding inventories in