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Swot Analysis of Hong Leong Industries


SWOT Analysis
Strengths Weaknesses

1. High profitability and revenue 1. Inability to match the production

2. Monetary assistance provided
capabilities or sales volume of the top five
3. Barriers of market entry
4. Skilled workforce automakers.
2. Hard to market vehicles to the upwardly
3. Dependence on some national auto
markets that are in recession because of
falling price.

Opportunities Threats

1. Growth rates and profitability 1. Price changes

2. Growing economy 2. Tax changes
3. Venture capital 3. Increasing costs
4. Increasing rates of interest
Strategy adopted by Hong Leong

The Ansoff Growth matrix is a strategic direction tool that helps businesses decides their

strategies for growth. Ansoffs product growth matrix discuss about the strategies on which

the business deliver new or current products in new or current products. Overall output of

Ansoff product matrix is sets of strategies that set the direction for the business growth. Hong

Leong Industries Berhad adopted by intensive strategies. There are three categories in

intensive strategies such as market penetration, market development and product


Market Penetration

Market penetration is a general name of selling current products into current markets.

Seeking increased market share for present products or services in present markets through

greater marketing efforts also known as market penetration. Hong Leong industries

continuously introduce new products to customers to leap ahead. The companys most

incomes come from the reshape of current products will ensure market growth and increase

of usages by existing customers. Hong Leong industries berhad will be focused on the central

markets that it is very similar with, competitors are known, customer needs are defined and

returns are potential.

Market Development

Market development tells about the distribution of current products in new market. The

activities of subsidiaries are designing, manufacturing, assembling, testing and sale of

integrated circuits, semiconductor devices, electronic components and assembly of

motorcycles and scooters and related parts and products, distribution of motorcycles and

motorcycle components and manufacture and sale of ceramic tiles. HLI subsequently

expanded its business from the manufacture of mosaic tiles to become the industrial and

consumer arm of the Hong Leong Malaysia. Hong Leong industries currently distribute its

motorcycles through a well-established nationwide network of dealers, including exclusive

dealers of products.

Product Development

Product development is the name given to a growth strategy where a business aims to

introduce new products into existing markets. Hong Leong industries berhad will introduce

many new products in future. HLI aims to introduce different and creative products compare

to other companies. Moreover, Hong Leong industries will continue to invest in new

technologies and equipment to improve productivity and upgrade the skill of workers on the

transfer of technology.