UTOPIA

CINDY LIM XING-RU 232192

NG SHU WEI 232754
TEOH CHIEN WEI 232918
HO CHUN HOONG 234082
LIM WEI QIAN 234435
Company Backgrounds
Established in 1975
Offering wide range of
complementary medicines,
medicated tonic, beauty,
healthcare products and clinical
services.
First traditional healthcare company
listed on Bursa Malaysia Securities
Berhad since 1996
Business model: Direct selling in Multi
Level Marketing
Vision

We aim to become the premier

healthcare company in Malaysia and
thereby bringing the greatest value and
pride to our customers, business partners,
employees and shareholders.
Mission

We are committed to promoting

healthcare culture and improving human's
well-being.
Corporate Values
Corporate Structure

Wholesale
Multi Level Marketing
Retailing
Manufacturing
Others
(Pharmaceutical,
Chinese Consulting
Clinics)
Issues and Problems
Uninformed and negative scepticisms for the
traditional medicine
Lacking of new existing new products
Intense price competition
Economic downturn
Threat of substitute product
SWOT ANALYSIS (STRENGTH)

High and
Supportive
stable
distributors
income

Control over
Bumiputra
market
CONT. (WEAKNESSES)

Small market Low barrier of

capitalization market entry

Lack of belief
Homogeneous
in Chinese
product
medicine
CONT. (OPPORTUNITIES)

Possible of
Government going
incentives international
market

Possible JV as
going
international
CONT. (THREATS)

Intense Government
competition regulation
TOWS Analysis of Hai-O
External Opportunity
Internal Strength
 Strong Bumiputera-oriented MLM
structure
 Growing demands for traditional and
herbal medicines
 Government incentive and research
grants for R&D
 Strong foothold in China
 Expansion overseas Internal Weakness
Internal weakness
 Negative side effect of traditional
medication
 Growing demands for traditional and
herbal medicines
 Lack of new exciting products
 Government incentive and research
grants for R&D
 Future changes in consumer
preference and demand will impact
inventory
 TOWS Analysis of Hai-O
External Threat

Internal Strength Internal Weakness

 Strong Bumiputera-oriented MLM
structure
 New market entrance
 Own pharmaceutical manufacturing
capacity
 Weaker RM impact on imported
products
 Strong foothold in China
 Negative side effect of traditional
medication
 New market entrance
 Lack of new exciting products
 Weaker RM impact in imported
products
 Future changes in consumer
preference and demand will impact
inventory
General Forces (PEST ANALYSIS)

1. POLITICAL
- Exposed to pre- election effects
- Internal bickering within the ruling coalition
2. ECONOMICAL
- Rising demands from local and international users
3. SOCIALOGICAL
- Shift towards healthy lifestyle among Malaysians
4. TECHNOLOGICAL
- Improvement and extended in pharmaceutical and biotechnology
segment
5 FORCES

Bargaining power of buyer

•Intense competition
•Low switching cost
•Increasing demand
Bargaining power of supplier
•Homogeneous product
•Sources of supplier from oversea market
CONT.

THREAT OF SUBSTITUTE
•Modern medical specialty
•Similarity of substitute

THREAT OF NEW ENTRANCE

•Unable to achieve economies scale
•Low startup cost
CONT.

RIVALRY AMONG EXISTING

COMPETITORS
•Aggressive competitions
•Low product differentiations
•Size of competitors