Strategy Analysis

MARKET ANALYSIS

New Zealand is a country with per capita car ownership is highest in the world, the market is close to saturation state, holds a large amount of used cars, but car sales remain slow growth trend. According to the New Zealand Automobile Association data, in August 2007 out of 6800 cars sold, an increase of 0.1%. Commercial vehicle sales of 2176, compared with an increase of 1.4%. And in 2007 1 ~ August car sales rose 1.6 percent, while commercial vehicles increased by 4.1%. As President of the Association Perry Kerr said, "auto sales market is enjoying a warm winter (Translator's Note: New Zealand is located in the southern hemisphere, is now in the winter)." A small country with a population of nearly four million, but around the world gathered in the major vendors. New Zealand, Japan and South Korea has become a mutual offense and defense and other automotive power Colosseum. August 2007, Toyota kept waiting for new passenger cars and commercial vehicles roles leader; Ford Motor Company to keep the second record auto sales market; Holden from Australia ranked second in the passenger area. Monthly selling models competition; Holden Commodore's become more than the Toyota Corolla monthly champion. 1 August 2004 Suzuki market share of 1.8%, while in January-August 2007 market share of 5.6%.

STRATEGY REVIEW

It is understood, Proton has been submitted recently to the Malaysian stock exchange report, the country's automobile industry the company has reached an agreement with New Zealand and New Zealand Automobile Car Malaysian distributor ALADO Corp. to explore assembling cars for each other and enter each other's markets feasibility. According to Proton, from the current until August, the two sides will study in these two countries and some other countries in Southeast Asia market strategy. That is to say, three months later, all the suspense will be announced.

If cooperation is successful, it will mean Proton and New Zealand will have the opportunity in New Zealand and Malaysia were assembled other brands of cars, and sold to New Zealand, Malaysia and the ASEAN market. Proton to produce in the fast-growing automotive market in New Zealand car, while New Zealand car will also have a car manufacturing platform in Malaysia, for the purposes of New Zealand, which means stranded in Malaysia for nearly a year project will eventually take place.

Dr. Mahathir's efforts to effect significant, last year, the Malaysian government to protect its auto industry from the impact, the introduction of the "car of the New Deal": require new car brand to enter the market may not be marketed locally to be one hundred percent export. Click to policy, chairman of the New Zealand Motor Corporation Malaysia car dream is no doubt suffered a blow. Later, though through the efforts of the provisions of the policy are still foreign auto companies in the horse cars produced only 20% can be sold in the domestic horse. This disrupted the New Zealand car market would like to set up factories in Malaysia to reduce costs, to better explore the Malaysian market, "good wishes", affected New Zealand autonomous vehicle assembly in Malaysia, a comprehensive plan ran aground. "So, if the success of this partnership, plagued by problems in New Zealand in cooperation with the automotive sector in Malaysia is likely to be solved.."

This mutual route through strategic alliances mode auto industry is the first in New Zealand, with imports, joint ventures, overseas factories, etc. The difference is that it can avoid local policy barriers, the effective use of local resources and existing production partners base and sales channels, we can also learn from each other and learn from the experience of production, management, marketing management, etc., making it quickly in a foreign country to be expanded.

EXTERNAL STRATEGIC ANALYSIS

• AFTA *(Asian Free Trade Area)

• Highly competitive Automotive Market

• Effect of financial crisis

• Pure consumer segmentation SOCIAL

• Growing concern toward the environmental issues

• Growing Population

• Customer loyalty- “Proton is National Brand”

• Poor introduction of new technologies

• Intellectual property

• Potential for development LEGAL

• Commitment for safety and environmental friendly cars

• Government protection

• New tariffs ENVIRONMENTAL

INTERNAL STRATEGIC ANALYSIS

• Manufacturing plants, operating divisions - domination in a local market

• Geographical location- opportunity for global investment and integration in business environment

• Government protection HR Management

• Collaboration with Universities (ratio of MS’s and PhD among Employees),

• Skills Development and Training (overseas trainings – RESULT – create new models and built new Hybrid Engines)

• PIIC - Proton Innovation & Invention Competition 2010 (annual event which enables PROTON staff to generate new ideas and interest in creating next generation cars among employees) Technology Development