Another Boost For Proton PETALING JAYA: Proton Holdings Bhd, a 51%-owned subsidiary of DRB-Hicom, has been on
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- Another Boost For Proton PETALING JAYA: Proton Holdings Bhd, a 51%-owned subsidiary of DRB-Hicom, has been on a roll with its latest plan to set up an assembly factory in Pakistan.The carmaker, which has been struggling in past years due to declining sales, is seeing signs of recovery following the emergence of China-based Geely which acquired a 49.9% stake in Proton in 2017. In a statement reply to StarBiz, Zhejiang Geely Holding Group said the move to set up a factory in South Asia was “part of Geely’s commitment to help restore Proton to its position as a bestselling brand in Malaysia and also a leading Asean brand.” Proton setting up factory in Pakistan will be its first facility in South Asia, tapping into a new market in a country with a population of 210 million.
- The plant will be a joint effort between the Malaysian carmaker and its local partner Alhaj Automotive. We are positive with the new Proton plant set-up in Pakistan, in order to cater to the local Pakistan market, as well as potentially, the regional South Asia market. “We understand that Proton will not incur capex for the Pakistan assembling plant, as Proton does not own the plant,” HLIB said in its recent report. Three months ago, Proton launched its first SUV model, the X70, which has boosted the carmaker sales significantly. Proton’s sales rose 42% year-on-year to 12,300 units in the first 2 months, of which almost half was from SUV X70 sales. The SUV X70 sales had also boosted DRB-Hicom earnings. The group recorded a net profit of RM73.02mil for its third quarter ended Dec 31, 2018, compared with a net loss of RM70.03mil in the previous corresponding period, due to better operating financial performances from all of its business divisions. Revenue in the third quarter rose to RM3.17bil from RM2.9bil a year earlier.
- Based on the above article, answer the following questions:
- a) Develop a SWOT analysis for Proton.
- b) Explain the pro and cons of international modes of entry used by Proton?
- c) Using the Hofstede framework, explain how this framework help Proton to understand the consumer behaviour of the car market in Pakistan.
- d) Proposed the best marketing mix strategies for Proton to Pakistan market. Justify your answer.
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