You have just been contracted by Handsome Berhad to prepare a business plan on the company's intended investment in the manufacture of GSM phones in the country. The following is a summary of the brief given to you and your own research:

Handsome Berhad is a multinational conglomerate involved in the manufacture and distribution of computer hardware accessories, networking hardware and allied products. With experience spanning four decades in the industry, the company's products enjoy a lion share of the market. As part of its diversification strategy aimed at sustaining its competitive advantage, the company intends to start the production of GSM phones, targeting the mass market in the country.

The company plans to control at least 50% of the low-end GSM phone market in the country in the next fiveyears.Handsome Berhad possesses therequisite humanresources and physical facilities necessary for the successful take-off and growth of the new venture. The company also intends to leverage on its extensive distribution network for its IT products covering major cities within the Asian sub-region to distribute its new GSM phones.The company also has modern equipment which can easily be converted into the production of GSM phones at little cost without significantly affecting the current production levels of other products. When this is done, the equipment will be able to produce more than 5 million GSM phones per annum.While the company intends to expand its production capacity radically within the first few years of manufacturing GSM phones,it is still struggling to cope with the country's incessant electric power failure which has made the company to rely almost exclusively on the use of generators to power its equipment. This constitutes the bulk of its overhead costs.The fim has signed a Memorandum of Understanding with a group ofreputable firms abroad, which guarantees steady supply of all required components and inputs.

The current value of the annual GSM phone demand in the country is estimated at RM520 billion.Estimated demand growth rate is put at 5%. There is currently nolocal producer, as all of the GSM phones in the market are imported. However, there is currently a large number of local firms that act as distributors to foreign producers.

Except for regulations aimed at ensuring that only high-quality products are manufactured, there are currently no legal restrictions on local production of GSM phones. Furthermore, to encourage manufacturing, the government offers tax holidays to all manufacturers in the first five years of operation.

Estimated cost per unit of GSM phones designed for themass market in the country is put at RM8,000 while the current average price stands at RM10,000.

Required:

From the given scenario provide:

1. A business environment analysis using S WOT analysis.
2. A competitive analysis using the Porter's Five Forces Model.