Swot Mamee

SWOT Analysis for Mamee

To gain a deeper insight into MAMEE-DOUBLE DECKER (M) BERHAD's operation, SWOT analysis is an appropriate tool. It thoroughly analyzes MAMEE-DOUBLE DECKER (M) BERHAD from the aspects of strength, weakness, opportunity and threat which can give a comprehensive overview on the company. Soon after the analysis is conducted, the market position and prospect of MAMEE-DOUBLE DECKER (M) BERHAD's should be clear and the suitable strategy can be devised and implemented as well.

Strengths

The strengths of MAMEE-DOUBLE DECKER (M) BERHAD lie on the improving quality, business network and appropriate market strategy. These strengths enable MAMEE-DOUBLE DECKER (M) BERHAD to continue competing in the market composed of Wangwang, Khongyuen and Oishi. They can survive there because of their strong promotion among the entire resident there.

Profit before Tax recorded a double-digit growth of 57.3% from RM9.6 million to MAMEE-DOUBLE DECKER (M) BERHAD's financial performance continued on the up trend with another set of commendable results. The efforts in penetrating into new export market has growing by 6.2% from RM242 million in 2002 to RM257 million. RM15.1 million for the year under review as a result of increased production efficiency in manufacturing coupled with reduction in operational costs in distribution channels.

MAMEE-DOUBLE DECKER (M) BERHAD has become a part of Malaysian household brand today. Every Mamee product reaches the consumer smoothly and promptly, from the beginning of manufacturing process to delivery to customer checkout point via an efficient distribution network and cutting-edge marketing strategies. Every year, MAMEE-DOUBLE DECKER (M) BERHAD invest generously into building and consolidating our relationship with our consumers. Around RM15.1 million is invested into advertising and promotions that are consumer-driven. This is the long-term strategy towards owing a larger slice of the market share.

One of MAMEE-DOUBLE DECKER (M) BERHAD s strengths lies in its extensive distribution network, whereby the Group's fleet of 150 vans make deliveries from 13 distribution centers to about 1,000 points of sales. Its local manufacturing facilities are held under 3 companies according to their respective lines, ie. Snack food and chilled products (KMM), instant noodles (PFP), and beverages (MDDB). The Group has a centralized marketing and distribution system, with domestic sales handled by MAMEE-DOUBLE DECKER (M) BERHAD Distribution (M) Sdn Bhd and Milk Specialities Distribution Sdn Bhd, and export sales managed by the export manager in each manufacturing subsidiary.

MAMEE-DOUBLE DECKER (M) BERHAD manufacturing excellence and products that deliver on great taste have been recognized worldwide. Besides the locally established Halal and SIRIM certification, the company has also been awarded the internationally recognized ISO 9002 and China Award certificates. The company are honored to receive two new awards during the financial year under review: The first award is The Chief Minister Award for "Promising Local Company Award" in recognition of MAMEE-DOUBLE DECKER (M) BERHAD's contribution to local industries. The second award was given to one of our diaries product namely Nutrigen Liteyo by Malaysian Star Award 2003 by Federation of Malaysian Manufacturer Packaging Council of Malaysia.

Weaknesses

MAMEE-DOUBLE DECKER (M) BERHAD are facing space constraints in the current factories to set up the necessary production lines. Beside this, the company's operation in China is still in a loss-making position, and the company does not have any plan for expansion yet until it breaks even in two years. The company needs to compete with others company such as Wangwang, Khongyuen and Oishi that they already have their own loyal customers in China. It is very hard for them to battle with the competitors. For Myanmar, in view of the financial instability and restriction, the company do not investing further until the situation improves.

The rise in euro against the US dollar also has a slight impact on Mamee's earnings given that some of its ingredients for products such as "Mister Potato" crisps are imported from Europe. The increase in vegetable oil, starch and flour has added pressure on profit margins to the company. So, MAMEE-DOUBLE DECKER (M) BERHAD must reduce its reliance on imported raw materials with its constant research and development.

MAMEE-DOUBLE DECKER (M) BERHAD cannot afford to meet the unexpected demand. By delivering the information through one easy-to-use source, the company still needing wholesale replacement of all of their systems.

Opportunities

Historically, savory snacks within Chinese society had been restricted to dried and preserved seeds and nuts. Snacks are known in Chinese as "xiao chi" or "little eats" and were traditionally sold by street vendors, who each specialized in one particular type of snack. The general trend was to provide snacks