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Question 1
ProMoto
Mr. Gary is entering his third year as the chief executive officer (CEO) of ProMoto, the national motorcycle company. All these years the company enjoyed remarkable growth and profit by relying only on the strength of demand from domestic customers. The company used to control more than 60 percent of market share in the country. ProMoto used to be the number one motorcycle brand among the local customers. However, due to globalisation, the situation has dramatically changed. The influx of foreign competitors in the last 2 years has significantly reduced the market share of ProMoto to just 30 percent. Poor management and lack of new product offerings in recent years has aggravated the problem. Faced with decline in sales and increasing competition, Mr. Gary is determined to stop the rot. To start the turnaround effort, he has decided to evaluate the internal and external environment of the company. As an expert in business strategies, you have been hired by the company to perform the evaluation process.
Based on the above information, perform a SWOT analysis on ProMoto. (40 marks)
Question 2 Using Porter’s Five Forces Model, analyse the Malaysian food delivery industry based on:
(i) Rivalry among competing firms. (30 marks)
(ii) Potential entries of new competitors. (30 marks)
