COMPARATIVE ANALYSIS OF TWO LOCAL PRODUCTS BUSINESSESPresented by Chin Tze Wei, Tee Hing Nian, Siau See Sing, Thun Shao Xun and Yee Algel.

KEY SUMMARY Comparative analysis between Tean Ean Local Products (Penang) and Sin

Hup Heng Food Trading Co. (Klang)

Local Product Businesses

WHAT IS A LOCAL PRODUCT BUSINESS? Products that you can only find in a particular area. Includes : food, medicines, snacks, drinks, etc. Main targeted customers : Residents and tourists in the area. Acts as souvenirs to the tourists.

BACKGROUND OF THE TEAN EAN LOCAL PRODUCTS Located in Georgetown

20 workers and 10 staffs

Founded in 1995 by Mr. Teh Tatt Huat

Main Product : Tau Sar Pneah and Bah Kut Teh ingredients

BACKGROUND OF SIN HUP HENG Located in Klang

10 workers

Founded in 1974 by Mr Lee Xin Hup

Main Product : Biscuit Beh Teh Sor

CHALLENGES FACED BY TEAN EAN LOCAL PRODUCT Lack of workers Low supply of products from the supplier Lack of experiences while they just started their business in the 90s.

There are many of competitors in the market.

CHALLENGES FACED BY SIN HUP HENG FOOD TRADING CO.Lack of workersThere are many competitors in the market.Lack of modern machineries.

COMPETITORSTean Ean

Ghee Hiang, a 155 years old bakery.

Him Heang, one of the most famous local products shops in Penang.

Sin Hup Heng

Lian Bee Confectionery Sdn Bhd, Founded in 1963, it is very famous in Klang Valley.

NATURE OF THE LOCAL PRODUCT BUSINESS IN PENANG (TEAN EAN) Retail Food Business Medium private company Family business Average financial support Monopolistic Competition in Penang

Less than 100 firms Low pricing power Weak barrier to enter the market.

NATURE OF THE LOCAL PRODUCT BUSINESS IN KLANG VALLEY (SIN HUP HENG) Retail Food Business Small private company Runs by the owner only, Medium financial supports. Oligopoly Competition in Klang

A few sellers in the market Strong Pricing power Mutual dependence between the oligopoly firms Products sold either as standardized or differentiated

STRATEGIC

TEAN EAN’S STRATEGIES Promotes & give discounts on their products. Produces high quality products. Provides good customer services. Earn their customers’ faiths.

SIN HUP HENG’S STRATEGIES Maintains the quality of the products.

Improves the production quality.

Emphasizes on the skills of making the products.

SIMILIARITIESTean Ean and Sin Hup Heng both believe that pricing decisions do not affect their businesses’ performances.

FUTURE PLANS

TEAN EAN’S FUTURE PLANS Promotes their company via social sites:

Internet

To introduce their product to whole world

Facebook Twitter

SIN HUP HENG’S FUTURE PLANS Does not have any future plans for their business The owner is 60+ years old, he needs to find a replacement. However, the owner’s sons are not willing to take over his business.

RECOMMENDATION

TEAN EAN LOCAL PRODUCTSTean Ean should try to promote their products around the world through IT technologies to complement their Facebook website.

They should also try branching out a few shops to make Tean Ean an international brand.

SIN HUP HENG Sin Hup Heng needs to keep up to date with the latest trend in the

pastries market by introducing new varieties of pastries to attract more customers.

Sin Hup Heng should consider trying to relocate their shop to a better strategic location to solve the problem of limited parking spaces and air pollution around that area.

A complete makeover to make the place stylish and easy to spot in the eyes of customers

PHOTO TAKEN WITH MR TEHManaging Director of Tean Ean

PHOTO TAKEN WITH MR LEEThe owner of Sin Hup Heng

THANK YOU!!