1.

0 INTRODUCTION
Hartalega Holdings Bhd. manufactures a wide range of latex gloves. The Company's products
include natural rubber examination gloves, nitrile examination gloves, nitrile clean room
gloves and natural rubber surgical gloves. Hartalega has beginning their business in this
rubber glove industry in 1988. Hartalega has always been in the forefront of the glovemaking industry.
Hartalega also the strong company that offers a range of products, superior in quality and
critical protection. For Hartalega there is no compromise in their manufacturing standards, in
fact they consistently exceed international quality standards. This makes hartalega are known
and trusted in worldwide.Hartalega SdnBhd has since become a reputable manufacturer of
Latex and Nitrile gloves and is now a public listed company on the Main Board of Bursa
Malaysia Securities Berhad.
Hartalegas continued technological innovations help ensure our gloves are manufactured
with equal emphasis on efficiency and quality this are the key reason Hartalega being trusted
as the OEM manufacturer for some of the worlds biggest brands. Hartalega produce the
product for the manufacturing, healthcare and laboratory environment. They are concern
about the comfortable for the customer when they are using their product, protection, hygiene
and cost-effectiveness in Hartalegas range of glove.
For over 2 decades, Hartalega has been a reputed OEM, delivering consistent quality with
reliable turnaround time for some of the world's famous brands. Their promise of quality,
efficiency and cost-effectiveness has made them a sought-after producer for many famous
global brands. Their export markets include high quality demand countries such as America,
Germany, Japan and Australia among many others.
This report is to analyze Hartalegas internal strengths and weaknesses, external opportunities
and threats, competitors, financial strengths, the strategies, and their current position by
looking at the SWOT Analysis, strategic group map, financial ratio, space matrix and BCG
matrix.

2.0. VISION AND MISSION STATEMENT

2.1. vision
To be the Number One glove company that produces and delivers the best and
most innovative gloves in the world; and to be recognized as a caring company to the
community and environment
2.2. mission
To deliver the best possible protection to people who work with their hands in
exposed and challenging environments by providing consistently superior, safer, and
more convenient gloves in chosen product markets.
2.3. analysis of vision and mission
To be a number one vision is the future aspirations that lead to an inspiration
to be the best and innovative in its field of activity. Based on the vision of Hartalega
glove, we analyze that the vision is enough strong because it show the Hartalega
glove have the motivation to be the leader and to be recognized as caring company to
the community and environment. However, there is still a space to improve to become
more ambitious and realistic.
Mission is statement of the purpose of a company, organization or person, its
reasoning for existing and also should be guide the action of the organization, spell
out its overall goal, provide a path, and guide decision making. But based on the
Mission of Hartalega, we analyzed that the mission is how they provide the protection
towards the consumer. However to attract the customer we have to ensure the product
that have been produces are in a good quality. Not only that, Hartalega should give an
excellent service through continuous improvement and also continuous innovation in
order to meet the customer satisfaction
2.4 formulate vision
To be a number one company that produce excellent quality product with
excellent service and leading in eco-friendly product.

2.5 formulate of mission

To deliver the best protection towards customer with a good quality product
and at same time still balancing between the chemical and environment through
continuous improvement and innovation to ensure customer get the high protection
and indeed the product itself are safe to use.

3.0 SWOT ANALYSIS (EXTERNAL ANALYSIS)

3.1

OPPORTUNITIES
3.1.1

Supportive environment for rubber glove industry in Malaysia

Malaysia has been a dominant player in the rubber glove industry for many

years and 50 percentages of largest rubber glove exporters in this world. There is a
supportive environment in Malaysia for rubber glove industry and it plays a role in the
success of the Malaysian rubber glove players. In Malaysia rubber glove industry gets
strong government backing from bodies such as the Malaysian Rubber Export
Promotion Council (MREPC) and Malaysian Rubber Board (MRB). Also, Malaysia is
located near the key source of the major raw material, natural latex, which mainly
comes from Thailand. Malaysia is also blessed with good infrastructure, reliable
energy supply and a relatively stable government compared to some countries in the
region.
3.1.2

Market covers

Hartalega Holding Berhad has huge market covers and its give an opportunities for
them to expand their markets. Hartalega Holding Bhd is headquartered at Kuala
Lumpur, Malaysia, and it is exports products more to 137 international clients in 39
such as North America, Europe, Asia Pacific and other region. However, Hartalega
has made business meeting arranged by MATRADE in 2009 with Brazilian buyers
which is effort to expand their target market to Latin American and it successful in
registration for approval license. This is to gain the potential sales and initials to enter
Brazilian market.

3.1.3 Global hospital supplies markets

Malaysia is the top producer of medical gloves globally and the qualities of our gloves
are competitive if not the best. Additionally, medical gloves are an industry which is
growing much faster than the growth of any economies on average. The high quality
product given the critical nature of work which surgical gloves' end users are involved
in, quality standards and usage effectiveness is highly regarded. Hartalega Holding
Bhd may penetrate on hospital supplies market where important roles play on used
medical glove products. Beside, Hartalega may refer the awards or any certificate that
received from the MDL Health Canada on Medical Device License (Health care) to
promote and support their product quality in the global hospital supplies market. This
is easier to customer willing to purchase on their products base on the quality as
medical gloves.
3.1.4

Rising Healthcare Expenditure

The overall industry is poised for growth with huge potential in emerging markets due
to the increased awareness of health care and global health. The reforms, especially
the market for rubber gloves in Brazil is expanding because of the abated rules for
imports of rubber gloves while China's health care reform is set to boost its health
care industry. Therefore, Hartalega to focus on Brazilian market and it may able to
expand to Latin America.
3.2

THREATS
3.2.1

Unstable price and weak US$

Hartalega price is not stable and it could rise in the future. Even though most rubber
glove companies include Hartalega Berhad have pricing power and are able to pass on
any cost increase or savings back to its customers, the volatile Hartalega and weak
US$ could dampen their margins and earnings in the period before the prices are
adjusted.
3.2.2

Rising in energy cost

The overall industry is poised for growth with huge potential in emerging markets due
to the increased awareness of health care and global health. According to the graph
below, shown the Health care spending has grown much faster than the rest of the
4

economy in recent decades. The reforms, especially the market for rubber gloves in
Brazilian is expanding because of the abated rules for imports of rubber gloves while
China's health care reform is set to boost its health care industry. Therefore, Hartalega
to focus on Brazilian market and it may able to expand to Latin America.

3.2.3

Availability of substitute product

The availability of substitute product from other companies encourages the price
competition in examination glove segment. The substitute product comes from Top
Glove, Adventa, Kossan, Latex and Supermax. Therefore, it may cause Hartalega
decrease their economy of scale by other company.
3.2.4. Difficult to differentiate brand product
It is hard to identify two major companies between Top Glove and Hartalega which is
Top Glove is stand the largest in producing natural rubber gloves and Hartalega stand
the largest in producing nitrile gloves. Those companies are playing a significant part
on producing medical gloves. According to the medical gloves, it is made of different
polymers including latex, nitrile rubber, vinyl and neoprene. Due to increasing rate of
people who allergic latex that become wide used. On the other hand, due to
substantial rise of the latex price by cost of product nitrile gloves lower than natural
latex gloves. Recently, many players have started to shift from natural rubber to nitrile
rubber for medical fraternity. This may cause some players not sure to cater for nitrile

especially new target market even Hartakega already lead while the other players. The
comparison may summarize refer to the table below.

3.3 SWOT ANALYSIS (INTERNAL ANALYSIS)

3.3.1

STRENGTHS
3.1.1

High level of production efficiency

The Hartalega play a major role producing nitrile glove producers in the world. The
production technology and the stringent product quality have earned Hartalega Berhad
various international accreditations. This has been proven when they received all its
products are in compliance with ASTM, JIS T9113, JIS T9115, EN455, ISO 11193
and AS/NZ 4011 standards. The high quality product produced by Hartalega Berhad
has strengthened their reputation and facilitated the Group in winning new customers.
Hartalega has the latest high speed production lines which have ability to producing
45,000 pieces of glove per hour per line.
3.3.2

Active involvement in research and development (R&D)

Hartalega Berhad had invested heavily on research and development to develop new
application of glove. According to, over the previous years, Hartalega have received
numerous awards and received prestigious awards for outstanding R & D, innovation
and quality and good manufacturing practices. In 2007, they have received the award
from Selangor State Investment Centre in term of excellent in product design, product
6

safety, product research and development, technology and care towards the
environment and welfare and safety of workers.
3.3.3

Product patent

Hartalega Berhad has applied for worldwide patents for its products and envisions a
growing market for its new and innovative application-nitrile and latex gloves. It
make hard for the competitors to imitate their product.
3.4.4

Strong in return on equity (ROE) and net profit margin

Hartalega was a leader in the nitrile glove and latex gloves market causes was also
maintaining the high efficient and profitable glove maker. It presents the strong
financial result that gains the highest return on equity and net profit margin in the
industry. Moreover, Hartalega increasing profit for 11.7 percentages on ended March
31, 2015 which is from RM54.93million to RM49.15 million reported by Hong Leong
Investment Bank Research, (2015).
3.4.5 Technical recognition
Hartalega has mastered the technological know-how of rubber glove manufacturing
and is embarking on aggressive capacity expansion to keep pace with demand. There
is high in-house technical knowledge base to produce this application-nitrile glove
(including surgical glove) and latex gloves which are hard earned trust of the most
critical users, place Hartalega Berhad among the elite few in the industry capable of
attaining worldwide acceptance. Based on technological breakthrough, it have
mentioned that Hartalega Holding Sdn stand in the First in the industry on many
different term such as

First and only manufacturer that is able to run a production speed up to 35,000
gloves piece per hour on line.

First in biomass energy plant in the industry registered to the United Nations
Framework Convention on Climate Change (UNFCC) or Kyoto protocol in
2007.

First of producing high-stress, soft, thin nitrile gloves in 2002.

First in develop Robotic Stripping System in 1995 on the mimic human hand
motion

This is support the good view in the brand image of Hartalega and causes the
company recognition in the world gloves industry. Moreover, the company has
received many awards as in 2010 on Overall Best Managed Company in Malaysia
2010 (Small Cap) by Asiamoney.
3.4

WEAKNESSES
3.4.1

Declining Profitability

According to the first quarter ended June 30, 2014 stated the Hartalega Holding
Berhad net profit have fell for 9.3 % to RM57.1 million which is compare to last 2
year. There are several reasons that cause the company wear down on their operation
profit margin. First, there are high competitive selling price in glove manufacturing
industry so Hartalega started reduced in their average selling price. Second, the
increase in the electricity tariff, natural gas tariff and maintenance cost that was play
an important impacts to wears down their operation profit margin.
3.4.2. Higher tax rate
Since the profit fell down that it causes largely due to big amount cost of NGC and
some branding expenditure. The higher tax rate that pull down the net profit and
declared to interim dividend, it is lower than last years 3.5 sen/share. The company
crises effect directly to decrease the profit and impact to increase their tax.

S-strength

W-weakness

High level of production efficiency

Declining Profitability

Active involvement in research and

Higher tax rate

development (R&D)

Product patent

Strong in return on equity(ROE) and

net profit margin

Technical recognition
O-opportunity

T-treat

Supportive environment for rubber

Unstable price and weak US$

glove industry in Malaysia

Rising in energy cost

Market covers

Availability of substitute product

Global hospital supplies markets

Rising Healthcare Expenditure

4.0 COMPETITIVE PROFILE MATRIX

COMPETITIVE PROFILE MATRIX
Competitive Profile Matrix is an analysis tool that helps to provide information to the
company about its position among the competitors that share similar strategies in the
marketplace. The table below shows The Competitive Profile Matrix for Hartalega in the
industry. Our group has decided to make a comparison between Hartalega with Top Glove
and Latexx.
Competitive Profile Matrix between HARTALEGA, TOP GLOVE and LATEXX
Critical success factors

Weight
Hartalega

COMPANY
Score Top Glove Score

Latexx

Market share
0.13
3
0.39
4
0.52
Compatibility
0.11
3
0.33
3
0.33
Innovation Capability
0.13
3
0.39
3
0.39
Manufacturing Capability
0.10
3
0.30
4
0.40
Price competitiveness
0.10
3
0.30
4
0.40
Product quality
0.13
4
0.52
4
0.52
Consumer loyalty
0.13
3
0.39
4
0.52
Financial position
0.09
3
0.27
3
0.27
Brand name
0.08
3
0.24
4
0.32
Total
1.00
3.13
3.67
The CPM ratings represent:4: major strength; 3: minor strength; 2: minor weakness and 1: major weakness.

2
2
2
3
3
3
2
2
2

Scor
e
0.26
0.22
0.26
0.30
0.30
0.39
0.26
0.18
0.16
2.33

Based on the table, it shows that Top Glove has more competitive advantage compare with
Hartalega and Latexx. Based in the score, Top Glove gains the highest score for the critical
success factor which is 3.67 and followed by Hartalega which is 3.13. Hartalega get second
highest which is in the middle between top glove and latex. Based on that score, we can
conclude that Hartalega are the one of top competitors in this rubber glove industry and they
also have strong competitive advantage compare to Latexx. Therefore, to make this company
be more success in this industry and be the market leader, Hartalega should improve and
implement a new strategy to make sure that they can compete with Top Glove.

5.0 STRATEGIC GROUP MAP

10

A strategic group is a collection of companies that tend to behave in relatively the same way.
There are clusters of firms that share similar strategies. Mapping the position of competitors
in an industry allows for the identification of important strategic groups.

This graph shows the Malaysian rubber glove industry strategic group map based on quality
and price. The x-axis represents the quality of product and y-axis represents the price of the
product. We are using high, medium and low as a measurement. This map consists of 5
companies which are Hartalega, Top Glove, Supermax, Latexx and Kossan. We choose this
company because, this are the strategic group for Hartalega.
The size of circle represents the size of the company gain in the market share of the industry.
For the Hartalega and Supermax have almost the same market share in industry, which is they
have larger market share compare Kossan and Latexx. For the bigger market share, its lead by
the Top Glove.
Top Glove, Hartalega and Supermax make up a strategic group because they are close to each
other on these two strategic dimensions in this industry. Even though they are close but the
size of market share that they gain is different because of the others factor. For top glove, they
be a leader in this market share are because of the product quality that they produce, make
11

their customer be mo loyalty towards them. They also have a strong brand name in the
market. But Hartalega also try to make sure that their product will get place at their customer.
They produce the product with the high quality and make an innovation towards their
product. Based on the quality, Hartalega is the competitor that threatens them the most.
Furthermore, we also can compare these 5 companies based on the breadth of product line.
For Hartalega, has lower market share because of the variety of product that they produce and
the less breadth of product line. Hartalega focus on the healthcare, laboratory and industrial
while Top Glove produce gloves for examination, surgical, household, cleaning and apron
purposes and they expand globally to China, Thailand, USA and Germany. With more
breadth of product line than the other company, they manage to outperform the others and are
rated high on the map. Supermax, on the other hand, expands in more countries compared to
Top Glove, which is USA, Brazil, Germany, Canada, Australia, and Belgium. However they
produce less breadth of product line compared to Top Glove.
Meanwhile, Hartalega is in the middle. Although Hartalegas market share is larger than
Supermax, but they only expand in America, German, Japan and Australia, which is fewer
than Supermax. Hartalega expands in four other countries, same as Top Glove, but they
produce fewer breadth of product line.
In order to be at that place in the strategic group map, Hartalega should increase thequalityof
the product and breadth of their product line than Top Glove and expand in more countries
than Supermax. These are the strategies that can Hartalega use to make sure that they can lead
in market share.
Hartalega also should use this strategic group map to identify barriersto mobility and
opportunities to protect them from being attack by Top Glove and Supermax. The strategic
group map can also help cart the future directions of Hartalegas strategies and are helpful in
thinking through the implications of each industry trend for the strategic group as a whole.
6.0 FINANCIAL RATIO ANALYSIS
Financial ratios are mathematical comparisons of financial statement accounts or categories.
These relationships between the financial statement accounts help investors, creditors, and
internal company management understand how well a business is performing and areas of
needing improvement.Ratios allow us to compare companies across industries, big and small,
to identify their strengths and weaknesses. Financial ratios that we analysis, we had divided
12

up into five main categories which is liquidity ratio, solvency ratio, efficiency ratio,
profitability ratio and market prospect ratio..
Financial analysis is not just a tool for financial managers but also can be used effectively by
investors, lenders, suppliers, employees, and customers. Basically, managers use financial
ratios to:

Identify deficiencies in the firms performance and take corrective action.

Evaluate employee performance and determine incentive compensation.

Compare the financial performance of the firms different divisions.

Prepare, at both the firm and division levels, financial projections such as those
associated with the launch of a new product.

Understand the financial performance of Hartalegas competitors.

Evaluate the financial condition of a major supplier.

Within the internal company environment, financial ratios can be used by:

Lenders to decide whether or not to make a loan to Hartalega.

Credit-rating agencies to determine the Hartalegas creditworthiness.

Investors to decide whether or not to invest in a company.

Major suppliers to decide whether or not to grant credit terms to a company.

6.1 LIQUIDITY RATIO

Liquidity ratios analyze the ability of a company to pay off both its current liabilities as they
become due as well as their long-term liabilities as they become current. In other words, these
ratios show the cash levels of a company and the ability to turn other assets into cash to pay
off liabilities and other current obligations. It is also a measure of how easy it will be for the
company to raise enough cash or convert assets into cash.
LIIQUIDITY RATIO
RATIO

14

13

12

11

13

Current ratio

3.83

3.25

4.42

3.63

Quick ratio

2.94

2.54

3.28

2.81

Working capital

RM

RM

RM

RM

292,443,524

207,220,295

310,474,334
275,300,426
Summary of Hartalegas quick ratio performance within 5 years.

6.1.1 Current ratio

Based on the table, Hartalegascurrent ratioincreased slightly from 3.63 to 4.42 from 2011 to
2012 and decreased dramatically to 3.25 in 2013 but increase recently 3.83 in 2014.
From the analysis, we found that company is currently trying to increase their ability to pay
their current liabilities using assets that can be converted into cash in the near term. This
means that a company has a limited amount of time in order to raise the funds to pay for these
liabilities. In year 2014, the company is trying increase back their current ratio by 0.58
percent. This show the company has 0.58%, which means they are able to pay their current
liabilities in term of cash.
Currently, Hartalegas will more easily be able to pay off their current liabilities when they
become due without having to sell off long-term, and their revenue generating assets.
6.1.2 Quick ratio
Next is Hartalegas quick ratio. Based on the table, their quick ratioincreased slightly from
2.81 to 3.28 from 2011 to 2012 and decreased dramatically to 2.54 in 2013 but increase
again2.94 in 2014.
Higher quick ratios are more favorable for companies because it shows there are more quick
assets than current liabilities. A company with a quick ratio of 1 indicates that quick assets
equal current assets. This also shows that the company could pay off its current liabilities
without selling any long-term assets. In this analysis, Hartalegas show a highest an acid ratio
of 3.28 in 2012 and slightly decreased a bit 2.94 in year 2014. Basically, the company is able
and has twice as many quick assets than current liabilities.
This is a good sign for them, as well to their investors, but an even better sign to creditors
because creditors able to know when they will be paid back on time.

14

6.1.3 Working capital

Move on to their working capital performance. Based on the table, their working capital ratio
increased slightly from 2011 to 2012 and decreased RM 17 143,098 in 2013 but they able to
increase again to RM 35 173,908 in 2014.
The biggeramount is better for their performance. This mean the Hartalegascompany has
more internal funds available to pays their current liabilities on a timely basis and their
finance inventory expansion, additional account receivable and a large base of operation
without resorting to borrowing or raising more equity capital.

6.2 SOLVENCY RATIO

Solvency ratios, also called leverage ratios, measure a company's ability to sustain operations
indefinitely by comparing debt levels with equity, assets, and earnings. In other words,
solvency ratios identify going concern issues and a firm's ability to pay its bills in the long
term.Solvency ratios show a company's ability to make payments and pay off its long-term
obligations to creditors, bondholders, and banks. Better solvency ratios indicate a more
creditworthy and financially sound company in the long-term.
Summary of Hartalegas solvency ratio:
RATIO
14

LAVERAGE RATIO
13
12

11

total debt- to-

0.056

0.065

0.086

0.119

total assets
long term debt-

0.984

0.986

0.988

0.992

to- capital
debt to equity
long term debt

0.01
62.45

0.02
69.76

0.04
84.91

0.08
124.02

to- equity

6.2.1 Total debt to total assets

Total debt to total assets is defines the total amount of debt relative to assets. This enables
comparisons of leverage to be made across different companies. The higher the ratio, the
15

higher the degree of leverage, and consequently, financial risk. This is a broad ratio that
includes long-term and short-term debt (borrowings maturing within one year), as well as all
assets which include tangible and intangible.
Based on the analysis, the data show an improvement on their total debt to total assets ratio. It
shows the decreasing order of ratio year by year. Year 2011 shows the highest ratio which is
0.119 which indicated their company consequently at the highest risk compare to the other
year. Therefore, a company with a high degree of leverage may find it more difficult during a
recession than one with low leverage, but as we see, in year 2014 shows it the lowest ratio
which is 0.056. This indicated that company manages to endure the risk within their leverage.
6.2.2 Long term debt to capital ratio
The proportion of company long term debt relative to its available capacity. By using this
ratio, investor can identify the amount of leverage utilized by a specific company and
compare it with other to help analyzed the companys risk exposure. Generally, company that
finances a greater portion of their capital through debt is considered riskier than those the
lower leverage ratio.
From the above data, Hartalegas show the decreasing amount of ratio year by year. It slightly
decreases by 0.4% in 2012, 0.2% in year 2013 and 2014. In this analysis, they able to manage
their creditworthiness and balance sheet strength. Year 2014 shows the lowest amount which
is 0.984 which may indicates that the lower the ratio, the greater the capacity to borrow
additional funds.
6.2.3 Debt to equity
The debt to equity ratio shows the percentage of company financing that comes from
creditors and investors. A higher debt to equity ratio indicates that more creditor financing
(bank loans) is used than investor financing (shareholders).
From the data above, company are currently able to manage to balance between debt (fund
borrow both short and long term) and the amount invest in the interprise. In year 2014,
company shows the lower amount of ratio which is 0.01 which indicated they have a higher
credit rating and greater the companys ability to borrow additional funds. This is a good
signal in their balance sheet strength compare to 2013, 2012, and 2011.
6.2.3 Long term debt to equity
16

It shows the balances between long term debt and stockholders equity in the firm long term
capital structure.
From the analysis above, company are capable to manage their long term debt and
stockholder equity. It shows the company have drop down their debt in year to year. As we
can see, in year 2014, their long term debt to equity has the lower amount of ratio which is
62.45 compare to before. Company is trying to lower down their debt from 124.02 in year
2011 until 62.45 in year 2014. The difference is about 61.57 percent which means company
has greater capacity to borrow additional funds if needed.
6.3 Efficiency ratio
Efficiency ratios also called activity ratios measure how well companies utilize their assets to
generate income. Efficiency ratios often look at the time it takes companies to collect cash
from customer or the time it takes companies to convert inventory into cash. In other words,
make sales. These ratios are used by management to help improve the company as well as
outside investors and creditors looking at the operations of profitability of the company.
Summary of Hartalegas efficiency ratio:
RATIO
14

EFFICIENCY RATIO
13
12

11

Days of

48.49

46.27

56.11

51.11

inventory
Inventory

7.53

7.89

6.50

7.14

turnover
Average

49.26

45.62

45.92

50.16

collection period

6.3.1 Days of inventory

This ratio measures the management efficiency. Fewer days of inventory are usually better. It
measures the number of days it will take a company to sell its entire inventory. In other
words, itshows how many days a company's current stock of inventory will last.This is an
important to creditors and investors for three main reasons. It measures value, liquidity, and
cash flows. Both investors and creditors want to know how valuable a company's inventory.

17

The data shows us that year 2013 has the shorter days which are 46 days compare to other
year. This show that, it that year the company inventory moves as fast as possible to minimize
cost and to increase cash flow. Whereas in year 2014, it take 3 days more to sell their entire
inventory
6.3.2 Inventory turnover.
It measures how many times average inventory is "turned" or sold during a period. In other
words, it measures how many times a company sold its total average inventory dollar amount
during the year. This ratio is important because total turnover depends on two main
components of performance. The first component is stock purchasing. If larger amounts of
inventory are purchased during the year, the company will have to sell greater amounts of
inventory to improve its turnover. If the company can't sell these greater amounts of
inventory, it will incur storage costs and other holding costs.The second component is sales.
Sales have to match inventory purchases otherwise the inventory will not turn effectively.
The data shows that the company manages to increase their total turnover year by year. As we
can see in year 2012 it have the higher amount of ratio and good inventory control which is
7.89 times which mean the company does not overspend by buying too much inventory and
wastes resources by storing non-salable inventory. It also shows that the company can
effectively sell the inventory it buys. While the difference between year 2014 and 2013 is
about 36% only. Currently company is trying to manage their inventory control.
6.3.3 Average collection period
The average collection period is the average number of days between 1) the date that a credit
sale is made, and 2) the date that the money is received from the customer. The average
collection period is also referred to as thedays' sales in accounts receivable. It is indicated the
average length of time the firm must wait after making a sales to receive cash payment.
The data above show that year 2013 has the shorter period of time which is 45.62 times
compare to other year. It indicated that the company takes only around 46 times to collect on
its customers. While in year 2011, company has the problems in waiting to receive cash
payment from their customers. This could also indicate the company has loosened its credit
policies with customers, meaning that they may have been extending credit to companies
where they normally would not have. This could temporarily boost sales, but could also result
in an increase in sales revenue that cannot be recovered.
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6.3.4 Profitability ratio

Profitability ratios compare income statement accounts and categories to show a company's
ability to generate profits from its operations. Profitability ratios focus on a company's return
on investment in inventory and other assets. These ratios basically show how well companies
can achieve profits from their operations.Investors and creditors can use profitability ratios to
judge a company's return on investment based on its relative level of resources and assets. In
other words, profitability ratios can be used to judge whether companies are making enough
operational profit from their assets.
Summary of Hartalegas profitability ratio:
RATIO

PROFITABILITY RATIO
14

13

12

11

Gross profit

0.332

0.336

0.319

0.372

margin
Return on sales

0.938

0.9537

0.9538

0.949

Return on total

20.98

24.84

26.58

29.97

assets(ROA)
Return on

24.71

30.55

32.52

34.89

stockholder
equity

6.4.1 Gross profit margin

Gross profit margin measures company's manufacturing and distribution efficiency during the
production process. It is a measurement of how much from each dollar of a company's
revenue is available to cover overhead, other expenses and profits. It provides clues about
company's pricing, cost structure and production efficiency. Therefore, gross profit margin
can be used to compare company's activity over time.
From the data analysis, the trend of ratio slowly tends to be downward. In year 2011, it shows
the higher gross profit margin which is 37.2% compare to other. Then in year 2012 it
decrease about 5.3% and slightly increase a bit about 1.7% in year 2013 and back to decrease
about 0.4% in year 2014. This indicated that company has a low gross of profit margin which
mean they are not able to control its production cost. It should not fluctuate much from one

19

period to another, unless the industry it is in has been undergoing drastic changes which will
affect the costs of goods sold or pricing policies.
6.4.2 Return on sales
This measure of how much is profiting from its sales. A high return on sales indicated that
the company is selling its products well and its profits are likely sustainable while a low
return on sales indicates the opposite. Management often uses the return on sales to determine
how efficient the company is.
As the data analysis above, year 2012 and 2013 show the higher amount of ratio which is
0.954 which means the company sells their products well and the company is growing
efficiently. Whereas in year 2011 has the second highest percentage which 94.9% and in year
2014 it only has 93.8%. The different between these two years is around 1.1%. The company
should try to increase their percentage of return on sales so that the trends will be upward and
they are able to manage the company efficiency as well to their profits.
6.4.3 Return on assets
The ratio that measures the net income produced by total assets during a period by comparing
net income to the average total assets. In other words, the return on assets ratio or ROA
measures how efficiently a company can manage its assets to produce profits during a period.
Since company assets purpose is to generate revenues and produce profits, this ratio helps
both management and investors see how well the company can convert its investments in
assets into profits.
The data above shows that the company shows the fluctuation trend. The amount shows the
downward trend. The highest ratio is 29.97% in year 2011 then slowly fluctuated year by year
until 2014 which is 20.98%. The different between 2011 and 2014 is around 8.99% which
mean company need to improve their efficiency in managing their assets in order to produce a
higher profits.
6.4.4 Return on stockholder equity
Ratio that measures the ability of a firm to generate profits from its shareholders investments
in the company. In other words, the return on equity ratio shows how much profit each dollar
of common stockholders' equity generates.
20

So a return on 1 means that every ringgit of common stockholders' equity generates 1 ringgitr
of net income. This is an important measurement for potential investors because they want to
see how efficiently a company will use their money to generate net income.
The data above shows that in year 2014, the data tend to decrease 24.71, this indicate that
company is not able to use its investors funds effectively compare to other year. Whereas in
year 2011 it show the highest return on stockholders equity which means at that year
company are perform well and company progress.
6.5 MARKET PROSPECT RATIO
Market Prospect ratios are used to compare publicly traded companies' stock prices with
other financial measures like earnings and dividend rates. Investors use market prospect
ratios to analyze stock price trends and help figure out a stock's current and future market
value.
In other words, market prospect ratios show investors what they should expect to receive
from their investment. They might receive future dividends, earnings, or just an appreciated
stock value. These ratios are helpful for investors to predict how many stock prices will be in
the future based on current earnings and dividend measurements.
Summary of Hartalegas market prospect ratio:
RATIO
Earnings per

14
31.39

share (sen)
Price earning

5.81

MARKET PROSPECT RATIO

13
12
31.88
27.65
5.63

6.43

11
26.18
6.92

6.5.1 Earning per shares

This ratio measures the amount of net income earned per share of stock outstanding. In other
words, this is the amount of money each share of stock would receive if all of the profits were
distributed to the outstanding shares at the end of the year.It also shows how profitable a
company is on a shareholder basis.
From the data above, as we can see the trend are showing upward and this are good sign for
their company. The amount keeps increasing by year to year until in year 2013 but in year
21

2014 it shows slightly decrease by 0.49 sen. Basically company are in good performance
because they are showing a good trends and even though there are slightly decrease but the
value are still maintain by 31.39 sen.

6.5.2 Price earning

The ratio that calculates the market value of a stock relative to its earnings by comparing the
market price per share by the earnings per share. Price-earnings ratio shows how much
investor are willing to pay per ringgit of a current earnings, the higher this ratio, the higher
the significant prospects for future growth for the firm.
Here we can see that Hartalega price-earnings ratio is higher in 2011 with 6.92 times
earnings. While in year 2012, they are maintaining their earnings by 6.43 times. However in
2013 and 2014 there are slightly fluctuate into 5.63 times and 5.81 times. Basically, the
difference amount is not too far, and increases by 0.18 times.
So in this moment, Hartalega should concentrate on improving this measure because it is
important to have a higher future growth than the other competitors because investors often
use this ratio to evaluate what a stock's fair market value should be by predicting future
earnings per share. Companies with higher future earnings are usually expected to issue
higher dividends or have appreciating stock in the future.

22

7.0WEIGHTED COMPETITIVE STRENGTH

HARTALEGA

TOP GLOVE

SUPERMAXX

Ratin

Weighted

Ratin

Weighted

Weight

Score

Score

Rating

Score

Marketing strategy

0.10

0.6

0.7

0.60

Customer service

0.10

0.7

0.7

0.6

quality

0.15

1.2

1.2

1.05

Brand Image

0.13

0.91

1.17

0.91

Technology skill

0.15

1.2

1.35

1.2

Global market share

0.13

1.04

0.17

0.91

Financial resources

0.14

1.12

1.12

0.98

Product innovation

0.10

0.7

0.7

0.6

Total Score

1.00

strength

10 Major Strength

7.47
5 Average

Weighted

8.11

6.85

1 Major Weakness

Based on weighted competitive strength assessment (WCSA) of Hartalega company, we have

analyst that Hartalega is quite precede in innovative compare than the other its two rival the
reason that cause to this may be they has a good and strong competitive with other
competitors in ruber gloves Industry to keep survive and to attract customer. However,
Hartalega is good in sustainability like wahat they state in their mission.
In term of market share, Hartalega capture the market in a second place behind the
Top glove and infront of supermaxx. It shows that Hartalega doing a quite well in both
revenue and Subscriber market share. It intends to capitalise on its large customer base to

23

push more content and offer good quality of product. It has its eyes set on future growth and
regional expansion in their operational business.
Moreover, with other strength measure Hartalega also getting the high mark in the
rating because they stay strong with their product and service. Since its establishment,
Hartalega has been providing a by providing consistently superior, safer, and more
convenient gloves in chosen product markets. They also relay on their technology skill to
produce more quality and safer product to the customer. Hartalega also significant growth and
strong track record of bringing innovation, excellent customer service and value to
stakeholders has won the company numerous awards over the year.
After multiplying each score by its given weight, we were able to add all scores to
determine the strongest company. Hartalega ended up on second rank with the overall
strength rating is 7.47; left behind the Top Glove with the overall strength rating is 8.11. Even
though Hartalega did not get the highest rating, it still shows that Hartalega is one of the
stronger competitors among other companies in that rubber glove industry.
From the table above, we also can see that Hartalega position in the rubber glove
industry is strong because they are the nearest competitor for Top Glove with the different
between their strength ratings is only 0.64, and followed by Supermax.
We conclude that, from this analysis Hartalega should increase reasonable marketing
plan to make sure that their customer still loyalty with their product. Besides, its important
for them to do be acknowledging by customers and other stakeholders in order to increase
more market share and profit in their operating business.

24

8.0 SWOT MATRIX

Tows matrix

Strengths
1. High level of production
efficiency

Weaknesses
1. Declining Profitability
2. Higher tax rate

2. Active involvement in
research and development
(R&D)
3. Product patent
4. Strong in return on
equity(ROE) and net profit
margin
5. Technical recognition
Opportunities
1. Supportive
environment for
rubber glove
industry in
Malaysia
2. Market covers
3. Global hospital
supplies markets
4. Rising Healthcare
Expenditure

So strategy

Wo strategy

1.(S5, T3)

1.(W1,O1,O2)

Based on the strength of Hartalega that

have technical recognition, they can
take opportunity to fulfill the
increasing in the demand in global
hospital suplies market.as they have
good technology that win many
awards, they should produce more
glove especially application nitrite
glove( including surgical gloves) to
fulfill the demand

Since the decline in profitability the

opportunity that can Hartalega make is
by using the supportive environment
for rubber glove industry in Malaysia
and take the opportunity in market
cover. This can be advantages to
eliminate the weaknesses of the
company.The company need to focus
on the opportunity that they can get in
Malaysia, such as using a cheap raw
material from the other country like
thailand to produce more glove and
expand the market by exporting it
internationally (in region)

2.(S2, T1)
Based on the strength which the are
good and active in research and
development to develop a new
application, so it is very good as they
manufactured in malaysia that have
supportive environtment for rubber
glove industry as their opportunity.
Expanding the business not only in
Malaysia but establish themselves in
globalization by expanding in many
countries in the world as they can get
eassier the material not only in

2.(01, 03)
Since the company has the weaknesses
in decline profitability, they can use
the opportunity in demand of global
hospital suplies market.Hartalega
should do the segmentation by region
that they should focus that can give
more profit. They can produce more
on application nitrite glove that get
25

Malaysia, but also in Thailand.

3.(S1,T1)

high demand with the patent that they

get to prevent the imitation. The
company need to develop a latest
technology in order to response to the
problems.

Since the strength of Hartelega high

level of production efficiency that bost
their name internationally, they also
provides a good quality of product as
the sustainability as the main
standards to fulfill the opportunity in
raising healthcare expenditure. The
Company need to produce a good
quality ruber as the healthcare as the
main because of the demand in this
area and specific research and survey
about the awareness in health care
industry are also important to carter
their expectation.

Threats
1. Unstable price
and weak US$
2. Rising in energy
cost
3. Availability of
substitute product

Ts strategy

Wt strategy

1. (S1,S5,3T)

1. (T1, W1)

Still able to market its brand even

facing rapid of competitors and
many substitute products because
they are strong in term of patent to
protect their property right, high in
R&D (research and design) on
behalf of product development and
high level of production efficiency.
There products development led
the way with innovation base on
the original product that response
the demand of global impact.

Offering

discounts

and

customer-oriented products in
order

to

competitors

overcome
in

term

the
price

competitive. It is also trying to

attract the customers/suppliers
in order to selecting their
products as the first choice
during the crisis.
2.(T1, T2, W1)

2. (S4,T1, T2)

Increase domestic facilities and

Even though the unstable price of

recover from crises by making

rubbers gloves and weak US$ still

short term goals.

26

play an important role on their

productivity but it does not mean
will impact thru their return on
equity and net profit. This is
because of there are strong enough
to beating their competitors and
remain on their customers and
suppliers loyalty.

3.(W2, T1, T2, T4)

Reduce threat of competitively
priced and create loyalty with
customer relation and quality.
It may also provide high value
than competitors and create
strong

supplier

customer

relationship.

3.(S5,S1, 3T)
The high technology strategic that
may ensure their productivity,
create something different and
uniqueness.

It

response

the

demand of customers and suppliers

who willing to get the high quality
products and being recognize in
the market. Moreover, Hartalega
Holding Bhd is also represented
the capability to creating and
producing the first in industrial
within gloves rubber markets
4,.(S3,T3)
Overcome breached patents by
emphasizing more on product
designs.

27

9.0 SPACE MATRIX

SPACE Matrix or the Strategic Position and Action Evaluation are a management tool used to
analyze a company. It focuses on strategy formulation especially as related to the competitive
position of Hartalega. It is used to determine what type of a strategy company should
undertake.The SPACE matrix evaluates different variables and assigns them a score
considering how important they are for the situation of the company. It analyzes four different
areas (two internal to the company and two external) that will represent four quadrants in a
graphic.
The purpose of this matrix is to situate the company in one of these four quadrants and give a
suggestion in according to which quadrant results is about what type of strategies a company
should follow: conservative, aggressive, defensive or competitive The SPACE matrix can be
used as a basis for other analyses, such as the SWOT analysis, BCG matrix model, industry
analysis, or assessing strategic alternatives.
SPACE Matrix is a four-quadrant framework which indicates whether aggressive,
conservative, defensive, or competitive strategies are most appropriate for a given company.
The axes of the SPACE Matrix represent the two internal dimensions of a competitive firm
which are its financial strength (FS) and its competitive advantage (CA) and two external
dimensions which are environmental stability (ES) and industry strength (IS). These four
factors are the most important determinants of a company's overall strategic position in the
marketplace.
9.1Steps to develop SPACE Matrix
9.1.1 Select a set of variables to define industry strength (IS), competitive advantage (CA),
financial strength (FS), and environmental stability (ES).

28

9.1.2

Rate the factors using rating system specific to each dimension. Rate competitive
advantage (CA) and environmental stability (ES) using rating scale from -6 (worst) to
-1 (best). Rate industry strength (IS) and financial strength (FS) using rating scale

9.1.3

from +1 (worst) to +6 (best).

Compute an average score for IS, CA, FS, and ES by summing the values given to the
variables of each dimension and dividing by the number of variables included in the
respective dimension.

9.1.3 Plot the average scores for IS, CA, FS, and ES on the appropriate axis in the SPACE
Matrix.
9.1.4

Add the average score for the competitive advantage (CA) and industry strength (IS)

9.1.5

dimensions. This will be the final point on axis X on the SPACE matrix.
Add the average score for the SPACE matrix environmental stability (ES) and
financial strength (FS) dimensions to find the final point on the axis Y.

9.1.6

Draw a directional vector from the origin of the SPACE Matrix through the new
intersection point. This vector reveals the type of strategies recommended for the
organization: aggressive, competitive, defensive, or conservative.

9.2 Space Matrix of Hartalega

Axis X
Industry Strength
Rating:1 (Worst) To 6 (Best)
1) Growth potential
2) Financial stability
3) Profit potential
4) Productivity
5) Resources utilization
Competitive Advantage IS Total
1 Customer loyalty
2 Product quality
3 Market share
4 Technological know-how
5 Brand and image
CA Total

Ratings
4.0
4.0
4.0
3.5
3.5
19.0
-2.0
-2.0
-2.5
-2.0
-2.5
-11.0

Axis Y
Financial strengthRating is 1 (worst) to 6 (best)

Ratings
29

1 Earnings per share

2 Leverage ratio
3 Liquidity ratio
4 Working capital
5 Efficiency ratio
Environment stability
Rating: -1 (best) to -6 (worst)
1 Rate of inflation
2 Price competing product
3 Technological changes
4 Competitive pressure
5 Demand variability

5.0
3.5
4.5

FS Total

ES Total

3.0
4.0
20.0
-4.0
-3.0
-2.5
-3.5
-2.0
-15.0

9.2.1 Average score:

Formula: Total / Number of factors
1
2
3
4

Industry strength:
Competitive advantage:
Financial strengths:
Environment stability:

19 / 5 =
-11 / 5 =
20 / 5 =
-15 / 5 =

Total axis X score (IS + CA)

3.8
-2.2
4.0
-3.0

Total
axis
ES)
Totatttl
axisYYscore
score (FS
(FS +
+ ES)
4.0 + (-3) = 1.0

4.0 + (-3) = 1.0

3.8 + (-2.2) = 1.6

9.2.2 Graph of SPACE Matrix

Conservative

FS

Aggressive

Suggested strategy type

30

CA

IS

Defensive

ES

Competitive

For the industry strength dimension, it is considers as the external forces that belong to the
industry where the company develops its activities. We have rating Hartalega based on
growth potential, financial stability, profit potential, productivity and resources utilization
with the rating scale from 1 (worst) to 6 (best).
For the growth, financial stability and profit potential factors of Hartalega are good, so they
have been scored as 4.0.Whereas, in Hartalegas place at the forefront of the industry is
credited to their progressive systems which enhance the speed, efficiency and cost
effectiveness of their production. So for the productivity and resources utilization, we score it
for 3.5. Then, the total amount of scores for industry strength is 19.0.
For the competitive advantage dimension,this is the next variable considered in the internal
strategic dimension. Customer loyalty, product quality, market share, technologyknow-how
also brand and image are some of the variables to be considered. As in the other internal
strategic dimension, each variable considered is given a numerical value, but in this case from
-1 (being the best) to -6 (being the worst).
As Hartalega moves from strength-to-strength, new technologies will be continuously
embraced and introduced and they are dedication to developing new and innovative gloves
reflects their commitment to future progress.So we scored as -2.0 for customer loyalty,
technology know-how and for product quality factors because this is what they are excellent
at. Besides that, the rate for market share also brands and image we score as-2.5, making the
total for competitive advantage is -11.0.

31

For financial strength dimension,it includes everything that refers to the financials of the
company. Each one of these variables is given a numeric value from 1 (worst) to 6 (best)
according to our perception of how good the company is doing regarding that variable.the
rating given to Hartalega are based on earning per share, leverage, liquidity, working capital,
and efficiency ratio.
We can consider the earning per sharewith the higher earnings per share is always better
because the company is more profitable and the company has more profits to distribute to its
shareholders so for that factor we score Hartalegafor 5.0 because of their upward trend of
earning per share. For the leverage factor, we rate it as 3.5 because the company is able to
manage their debt whereas for liquidity we score it as 4.5 and 3.0 for working capital factor.
Hartalega are good in handling their liquidity ratio and lastly for efficiency factor we scored it
as 4.0 because the company tends to have an upward trend in their management efficiency. So
after we total up, for financial strength dimension is 20.0 scores.
Last, environment stability is considered. It refers to how stable is the market where the
company operates. Things like rate of inflation, price competing product, technology change,
competitive pressure and demand variability are considered. The more stable is the market;
more favorable is for the company to operate in it. A score from -1 (best) to -6 (worst) is
given to each of the variables considered.
The rate of inflation factors, we score it as -4.0 and for price competing product we rate it as
-3.0. As we know in group mapping Hartalega was the second highest competing in market
share. Because of innovation forms the foundation to Hartalega's global success and
Hartalega's status as the world's largest manufacturer of clinical Nitrile gloves, can be
attributed to their innovative manufacturing technologies and advanced technologies so that,
for technology change and competitive pressure, we score it around -2.5 and -3.5. Whereas,
in demand variability, we rate is as -2.0 because of their efficiency and cost effectiveness of
their production. Then, the total amount of scores for environment stability is -15.0.
After plotting the scored on the graph, Hartalega suggested strategy type is aggressive.
The aggressive posture in the SPACE Analysis Matrix occurs when all the dimensions are
positive. The implicit strategy is to aggressively grow the business raising the stakes for all
competitors.

32

Some of strategies that the company may follow are continue to invest in innovation to
sustain and build the competitive advantage which exists. Basically, company has a strong
competitive position inthe market so they only have tofollow up on possible opportunities in
the market (backward or forward vertical integration) as well to increase their rapid
growth.Besides that, companyalso needs to use their internal strengths to develop a market
penetration and market development strategy. This may include some integration with other
companies, product development, and acquisition of competitors.

33

10.0 BCG MATRIX OF HARTALEGA BERHAD

BCG or Boston Consulting Group Matrix is one of the famous approaches of portfolio
management. It is developed to achieve better understanding of the competitive position of a
portfolio of businesses within a corporation. It is also used to suggest strategic alternatives for
each business. BCG is a method to determine what priorities should be given in product
portfolio of a business unit. It is based on product life cycle theory.
To create a BCG matrix, businesses gather market-share and growth-rate data on their
business units or products. One large square is drawn and is divided into four equal
quadrants. Along the top of the box, a market share or cash generation is written, and a
growth rate or cash use is written down the left side. On the top left is high market share, and
low market share is on the left. On the left-hand side, high cash use is at the top and low cash
use or growth rate is at the bottom.
Within the diagram, "stars" go in the upper-left quadrant, and "question marks" are put in the
upper-right square. At the bottom, "cash cows" go on the left, and "dogs" are placed on the
right. The diagram visually shows that stars have high market share and a high growth rate,
while question marks have low market share and a high growth rate. On the bottom, cash
cows have a low growth rate but a high market share, and dogs have a low market share and a
low growth rate.
Placing products in BCG matrix result in 4 categories in portfolio of Hartalega, which are
stars, cash cows, question marks and dogs.
I.

Stars:The business units or products that have the best market share and
generate the most cash are considered stars. Monopolies and first-to-market
products are frequently termed stars. However, because of their high growth
rate, stars also consume large amounts of cash. This generally results in the
same amount of money coming in that is going out. Stars can eventually
become cash cows if they sustain their success until a time when the market

II.

growth rate declines. Companies are advised to invest in stars.

Question marks: These parts of a business have high growth prospects but a
low market share. They are consuming a lot of cash but are bringing little in
return. In the end, question marks, also known as problem children, lose
money. However, since these business units are growing rapidly, they do have

34

the potential to turn into stars. Companies are advised to invest in question
marks if the product has potential for growth, or to sell if it does not.
Cash cows: Cash cows are the leaders in the marketplace and generate more

III.

cash than they consume. These are business units or products that have a high
market share, but low growth prospects. Cash cows provide the cash required
to turn question marks into market leaders, to cover the administrative costs of
the company, to fund research and development, to service the corporate debt,
and to pay dividends to shareholders. Companies are advised to invest in cash
cows to maintain the current level of productivity or to "milk" the gains
IV.

passively.
Dogs: dogs have low market share and low growth rate and thus neither
generate nor consume a large amount of cash. However, dogs are cash traps
because of the money tied up in a business that has little potential. Such
businesses are candidates for divestiture.

10.1 Hartalega Business Segments

Hartalega focus on produce 2 different of product, which is:
(i)
(ii)

Latex Gloves
Nitrile Gloves

11.2 Net Revenue for Business Segment

SEGMENT

NITRILE GLOVE
SOUTH CHINA EUROP
AMERIC

LATEX GLOVE
SOUTH
CHINA EUROP

AMERICA

A
SALES
REVENUE

9 649

182

5 352

3 446

542

5 865

(PAIRS)
PERCENTAG

1.2%

37.8%

20.6%

6.2%

51.8%

-7.6%

E CHANGE

EXPORT GROWTH

RAW

35

ID

SEGMENTS

A
B

NITRILE GLOVE
LATEX GLOVE

SOUTH
AMERIC
A
74
26

CHIN
A

EUROPE MATERIAL
PRICE

25
75

48
52

15%
5%

10.3 The Boston Consulting Groups Growth Share Matrix

High
STARS

QUESTION MARKS

INDUSTRY
GROWTHCASH
RATE

COWS

DOGS

Low
High

RELATIVE
MARKET
SHARE

Low

1. Stars
Business segment for Nitrile glove is fall under Stars. Nitrile glove has gain the higher
industry growth and also gain the higher relative market share in rubber glove industry.
Because of the innovation and the concept of sustainability that they implement, they get
high revenue in South America. Not only that, based on the geographical segment, mostly
nitrile glove get the higher revenue in each of the segment. This will give the
opportunities to Hartalega to stabilize their nitrile gloves market at each country.
36

2. Question marks
From the BCG Matrix, we found that latex glove is fall under question marks categories.
Thats means latex glove have higher in industry growth but gain low in relative market
share. Hartalega should improve their strategy to improve the market share of the latex
glove to make sure that it will become the star. Indirectly, Hartalega will increase their
profit in this product. Moreover, even though latex glove has gain low market share, but
in Europe segment, this product get higher revenue. So, Hartalega should increase their
effort to make sure that consumer want their product so that they can get higher market
share and will become the star.

37

11.0 CONCLUSION.

As a conclusion, based on our term paper we analyze the major initiatives taken by Hartalega
holding, involving the performance in internal and external environments. Hartalega has the
strength in technology and innovation through their R&d but with the many weaknesses of
the company such as dechline profitability makes the Hartalega could not gain the
competitive advantage in the industry.
Then, in the competitive industry of the rubber industry is the field which admittedly
challengingHartalega need to rapidly expanding the business activities in various forms of
investments, especially those focused on the creating a new products and improvement the
product to the customer. Then, the greater supportive environtment and market demand can
open the opportunity for Hartalega to become more competitive in the industry.
Moreover, based on our analyzing on the competitor movement, we already provide the
strategy to overcome the weaknesses and reduce threat with the strength and opportunities
that Hartalega holding have. This is important because every of their movement is very
important to make sure the decision is not by the self-interest and Hartalega need to have
deep understanding to make sure Hartalega can beat the entire competitor in the industry.
Moreover, this we call a competitive advantage when Hartalega can use the blue ocean
strategy to make sure the company not going into the red ocean strategies that have many
competitors compete in the industry.
Lastly, Hartalega fight was far from complete. Efforts to strengthen Hartalega position as a
reputable company still continues. Hartalega needs to improve efficiency and make the
diversification on the strategic area by enhancing the new products to satisfy the customer

38

expectation to make sure Hartalega emerging to become top tier of rubber provider in the
future.

39

Reference

http://www.nst.com.my/node/83141
http://www.thesundaily.my/news/1132659
http://www.tendersinfo.com/business-intelligence/doc/38154-cr-hartalega-holdings-berhadharta-financial-and-strategic-swot-analysis-review#
http://www.hartalega.com.my/about-us/awards/
http://harta.irplc.com/medianews.htm?filepath=harta/HARTA-The%20Star-07052015.pdf
http://www.bionity.com/en/studies/4875/hartalega-holdings-berhad-harta-financial-andstrategic-swot-analysis-review.html
http://www.medica-tradefair.com/cipp/show,lang,2/oid,30405/xa_nr,2392565/~/WebExhDatasheet/exh_datasheet
http://www.solmed.com.au/coats-nitrile-gloves/
http://www.hartalega.com.my/innovation/manufacturing/
http://www.financialreport.biz/File/AR/2011/7/26/5168%20-%200100537896849.pdf
http://www.mrepc.com/marketplace/public/supplier/aboutus.php?userid=110
http://www.hartalega.com.my/about-us/
http://www.topglove.com.my/
http://www.supergloves.com/
https://www.google.com/search?
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