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Malaysias Microeconomic And Macroeconomic Environment Marketing Essay

This chapter will discuss Malaysia's microeconomic and macroeconomic environment to help the proponents know how much market probable they might have as they start their product in the united states. This chapter includes the country's economical conditions, business environment and the consumer expenses of Malaysians. In addition, this section also discusses the market segment that the proponents would like to target to match as the users of the merchandise. An research for the industry and the rivals are also mentioned to determine the probabilities of success of the product.

Malaysia procedures a national parliamentary democracy with a constitutional monarchy where the monarch is elected every five years from among the tribal elders of peninsular Malaysia. Malaysia has three branches of federal including the Executive, Legislative and Judiciary. These government bodies provide as the parting of forces for a section of tasks to be performed in the united states. The Professional branch includes the Head of Express and referred to as the King for having ceremonial duties. The Legislative branch consists of the bicameral parliament which includes the home of Associates. The member-parties of the Country wide Front side coalition form the federal government. THE LOW House comprises 222 members elected for five years from solo member districts. 70 members of the Senate help 3-year conditions, with 26 of these elected by their state legislatures and 44 of these being appointed by the monarch or the Ruler in the Perfect Minister's suggestion. The Judicial branch involves the Federal Court docket, Judge of Appeals and high courts.

Source: http://www. malaysia. gov. my and Euromonitor International

Malaysia's subdivisions include 13 claims and three federal territories including Kuala Lumpur, Labuan Island and Putrajaya. A chief minister heads each condition for featuring its own set up and government. Nine out the says have hereditary rulers titled sultans and four says have governors in counterpart positions.

Source: http://www. state. gov/r/pa/ei/bgn/2777. htm

The Constitution of Malaysia was set up on the 31st of August in the entire year 1957, which commenced on the day of the nation's independence. The National Constitution of Malaysia has its basis from the Constitution of the Federation of Malaya. This can serve in an effort to protect the united states in having laws and regulations as basis to check out, linked to the authorities of the branches of the government.

Source: http://www. malaysia. gov. my

The ruler of Malaysia is Sultan Mizan Zainal Abidin who may have been the Head of Condition starting Dec 2006. 140 seating were earned by the Country wide Entrance while 31 car seats visited The People's Justice Get together. 28 seats were triumphed in by the Democratic Action Get together and 23 seating by the Islamic Get together. Najib Abdul Razak has been Malaysia's Primary Minister since April 2009.

Source: Euromonitor International


The market of Malaysia corresponding to Global Market Information Database is in a solid condition and expected to have faster improvement where the officers are longing for its performance boost as it pertains to innovations in making activities with a 60% concentrate on by 2020 in Gross Household Products for services.

Economic Prospects

According to Global Market Information Databases, real GDP is expected to increase 6. 7% this year 2010, showing its fastest development yet in a number of years for the first 1 / 2 of the year however the growth is expected to remain above 5. 0% as domestic demand grows better to continue recovery. This increase acquired its support from better exports, specifically to China. The demand domestically increase sooner due to better market conditions as it pertains to labor, thus having an impact to raise the spending of the private consumers.

Malaysia, just like in the Philippines, is known for their personnel providing labor services. The country's unemployment rate lowered to 3. 4% this year 2010 from 3. 6% in 2009 2009. A lot of the workforces are sent in manufacturing department. However, the performance for workforce is improperly trained but workers from Indonesia and Vietnam are cheaper if to be likened, making the government work on this for improvement. In cases like this, the government has been spending heavily to boost income disparities in several locations. This activity will be prolonged until 2025. The improvement for the tasks during period of financial weakness may be slowed scheduled to prioritizing of activities.

Government Funding and Market Potential

According to Global Market Information Data source, government deficit rose to 7. 5% of GDP scheduled to programs they execute. In exchange, their spending with the help of fiscal consolidation will continue to work together to reduce then 2010 deficit. General public personal debt will have its tendency to rise through the next many years, jumping from 52. 5% in '09 2009 to 41. 5% in 2008, equivalent to RM 354, 266 million in '09 2009. However, interest rates would relieve and found to be manageable. To hold up against all the bills, the government has the oil and gas industry of the united states to support almost half of the earnings of the federal government. They also make investments to achieve developments when it comes to manufacturing with higher value added activities, pushing service sector extension.

As an overview, Malaysia's economical performance is impressive scheduled to private investment restoration and offsetting expenses of the government. However, Total trade (exports plus imports) exceeded GDP, giving the country especially vulnerable to the consequences of the global recession. To boost economic growth and to attain currency markets stabilization, the government acts by having two stimulus programs put in place and the funds will be used to help credit-starved organizations, increase spending, support equity investment and finance off-budget projects.

The indicators of business environment shows Malaysia's ranking as it pertains to ease of doing business, as well as different information relevant and needed to be considered when opening a company in the united states. From the stand, it shows time or length of time estimations as you open or closes a company, duration for permits and fees, importing and exporting and tax rates. These estimations may vary every once in awhile for these factors are believed to be uncontrollable and are changeable, depending on the federal of Malaysia's decisions.

From the table, it shows a rise and a decrease of ratio throughout the years in Malaysia's monetary performance. In case the inflation rate increases, this means that prices of goods are at the mercy of change and rise, resulting as one factor to lower costs or ingestion of consumers. Between years 2007 to 2008, there can be an abrupt change in the percentage with a difference of 3. 4%, bringing on change of high prices. But for the last 2 yrs in 2010 2010 to 2011, there is an increase in percentage but not as bad as the performance within the former years to ease better utilization of the consumers.

The stand above shows Malaysia's GDP performance. Malaysia's GDP increased starting from 2009 to 2011 which really is a great value if to compare to the value from ex - years. Higher GDP connotes a good performance in monetary value of all the goods and services being stated in the country. In cases like this, Malaysian citizens have the ability to procure or spend goods as the federal government took its toll to improve and develop the country's efficiency in goods and services.

Malaysia's Gross National Income performance in the latest years were able to increase except for the entire year 2009 where it decreased. GNI is the riches in terms of value of a country that it attained from all its financial activities, either products, throughout the world. In cases like this, even if it lowered in '09 2009, it managed to restore as it increased this year 2010 which is sustained than the year before it stumbled down. This demonstrates the market of Malaysia were able to do well not only covering the country by themselves itself but also with its transactions all around the globe.

The data above shows the use expenses of Malaysians and the expenditure by resident homeowners that can provide as a basis and information for La Me personally Sa. The intake expenditure of Malaysian residents increased consistently, meaning as years go by, they still be capable of spend goods for either their needs or wishes.

La Me Sa is classified as a furniture yet it has a function which facilitates high technology electronic gizmos specifically desktop and portable computers used at home. The data above shows the consumer expenditure of Malaysians in household goods and services where home furniture enters in this category. Just how Malaysians spend for furniture increased regularly as well which ultimately shows a good demand indication for La Me personally Sa. Since the product is connected to computers, belongings of pcs by homes shown in Desk 2. 11 shows that it also increased consistently due to changes in high technology which will make life easier, faster plus more productive.


According to GMID, Malaysia's performance shows a minimal level when it comes to investments. The federal government then suggests using a cure for such deficiencies for the investment division by thinking about other functions for public companies to be able to contend with private sectors and fit to investment environment. However, the overseas investment in manufacturing began to recuperate this year 2010 as manufacturing masks 28. 2% of GDP and employs 7. 7% of the labor force and US$2 billion is likely to be committed in the next two years, including practically US$300 million in retail investment.

To encourage investment, the federal government has granted a ten-year exemption on venture capital and unveiled investment incentives using regions. This was followed in 2009 2009 by the reduction of local-equity requirements for traders in various parts of the service sector.

Foreign Trade

According to GMID, Exporters struggled as a result of the global slowdown, particularly because of its results on the world's electronic markets. Total exports contracted in 2009 2009 for the first time in eight years. Insurance plan makers are working to boost home demand and wean the economy off its reliance on exports.

Exports of equipment and transport equipment accounted for 46. 5% of total exports in 2009 2009. Singapore, the USA and EU-27 are Malaysia's major export markets, creating 14. 0%, 11. 0% and 10. 9% respectively in '09 2009.

The current bill surplus in 2010 2010 will be 14. 7% of GDP and slip to 13. 8% in 2011.


According to Global Market Information Database, the population of Malaysia grew at the average rate of 2. 3% per yr and reached 28. 6 million this year 2010. This is a rise of 10. 5 million in two decades. The median time is gradually rising in between ages 24-26 while the mean age is also steadily rising in between age range 27-28.

According to United Nations Department of Economic and Friendly Affairs, The ranking of Malaysia is 43 when categorized in the number of society of countries on earth. Its ranking among ASEAN countries is 6. Within the review period, the country's population increased by more than 31% with sturdy growth recorded in all age groups, and this growth is likely to continue within the forecast period. By 2015, the projected populace of Malaysia's will reach more than 30. 7 million.

A great deal of factors can affect a country's society. These factors include the net migration of men and women from a country into a different country and even the beginning and death rate of the united states. Aside from these, the life styles of people living in a country changes rapidly as well due to changes of choices may it be about healthy living or the environment itself that they are in to.

From the info above about the changes in society, there's a great move in quantity of deaths in between years 2006 to 2011 for increasing regularly. However, in live births, numbers are both ever more and decreasingly changing as well as in world wide web migration. Live births lowered due to the decision of folks as it pertains to marriage where they opt to marry in their later years and have just enough or fewer children.

According to Global Market Information Databases, Malaysia's population continued to endure an increasing age process through the review period. From the data above about the population of Malaysia by get older, the number of individuals with age range 80 and above also grew. Among the reasons for an extended life expectancy is as a result of improvement about medical good care system in the united states. There's been an increase in awareness in the united states when it comes to healthier products and much healthier lifestyle. The federal government also makes great efforts to ensure that they know the medical resources and alternatives available to them. In this case of increasing volumes in old age, consumer action also changes and the products entering the marketplace change to match for what the old-aged people would need. Obviously, products change through age ranges. Middle-aged people would be into fashion, portable consumer electronic digital products credited to swift changes as it pertains to technology and fast food. This just means that each age category has different preferences in which the market should offer something to consumers to match their needs and wants

The percentage for the populace of men and women remains greatly the same. The population for males is increasing constantly, as well as for the females. Despite the fact that the populace for both genders boosts throughout the years, the quantity doesn't really change too much as it pertains to variations.

Men and women have totally different buying behavior credited to needs and desires but changes have been occurring because most marketers and manufacturers are now seeking to sell products that could fit for both genders such as gadgets and other electronic products.

The society for urban area is increasing consistently from 2006 up to 2011 as the society for rural area is reducing constantly starting 2007 up to 2011. It is because of a great deal of job opportunities flourishing in the towns of Malaysia especially urban areas where different market sectors are beginning to get expansions.

Just like any other countries, the population is having urbanization quickly. If a place has a lot of people and a lot of businesses are opening in a place in several industry types, these just imply that the place will have a lot more to offer for the individuals residing in the place. These folks could either be in need of careers or will serve as consumers who will choose in a wide range of varieties offered in the market. In cases like this, there are lots of differences between metropolitan and rural areas, and folks moving into the areas. Additionally, people residing in urban areas are most likely to influence and give exposure to the folks surviving in rural areas.

After showing the demographics of Malaysia in general and totality as categorized by era, gender, metropolitan and rural areas and key factors that have an effect on changes of people, the data above shows the number of households in Malaysia and accompanied by percentages of homeowners that possess computer systems that could fit as the possible users of the La Me personally Sa. It shows that the rates are consistently increasing throughout the years because of abrupt changes and improvements as it pertains to technology. This contributes as a great factor for the huge benefits and utilization of La Me personally Sa.

In Malaysia, the civilizations present are adapted from different cultures from other countries including Malay, Chinese, Indian, Eurasian and even communities from North Borneo. In place, a unified Malaysian culture is appearing in the country and the festivities get together such as Chinese language New Calendar year, Moon Cake Celebration and Hari Raya Puasa.

Just like in the Philippines, in addition they celebrate Holiday but their party is merely celebrated in a small scale scheduled to a lesser quantity in populations who are Christians. Holiday is still treated as a general public holiday as in addition they improve their homes and business establishments with colorful adornments to experience the holiday atmosphere.

Source: http://www. worldtravel4indians. com/malaysia/festivals-in-malaysia. html http://allmalaysia. info/msiaknow/festivals/christmas. asp

Since a whole lot of cultures affected the culture in totality of Malaysia, Malaysia's cuisines are combined from different classes. Dishes such as grain and noodles are the popular food in the united states. However, since there will vary religions, Muslims specifically are forbidden to consume pork but are a popular dish for the Chinese and Buddhists are largely vegetarian. Exactly like in the Philippines, Malaysians are also known for his or her hospitality using their guests as they feature food as a welcome. The usual drink offered is tea or coffee with small snack foods.


Almost all the religions within the world can be found in Malaysia including Islam, Christianity, Hinduism and Buddhism. Each religious beliefs shows different presence in the modern culture, having strong sense in terms of practices, which makes it easier for the visitors to identify getting the same faith. In Malaysia, the federal government can be involved with Muslim procedures for having Islam as the highest percentage of all religions in the country with 60%. Muslim's holy place is named the Country wide Mosque situated in Kuala Lumpur in the year 1965. For the Christians who cover 10% in ratio, there are churches built for prayers, built as their holy place while temples are also built specifically for Buddhists.

Source: Culture of Malaysia - record, people, clothing, practices, women, beliefs, food, traditions, family http://www. everyculture. com/Ja-Ma/Malaysia. html#ixzz1DjTxtna0

Technology as a Culture

According to Global Market Information Data source, the Malaysian federal has been active with the improvements about high technology, specifically personal computers and the internet for providing these to academic institutions, businesses and federal government agencies as tools to be used to introduce these to modern information age. Usage of internet is also sorted for either public use or just home connectivity, since the majority of the homes have their computer systems with empowered internet services. This caused the increase in internet and computer users and business establishments offering services that would cater the needs of the consumers. These services include internet service providers, cordless services and developed broadband services.

Because technology is currently a part of the culture of the united states just like in virtually any other countries, La Me personally Sa would fit well as something to be utilized as well as these upgrading technology and popular use for devices and computers, should it be for school, for business or even government purposes.


When it involves technology, Malaysia makes it sure to be modified with the latest improvements as it pertains to gadgets and other electric products. Relating to Global Market Information Data source, Malaysia's consumer expenditure as it pertains to communications, tvs, media, telephones, personal computers, the internet and electric gizmos increased in percentages.

One of the quickest growing mobile telecommunications market in Southeast Asia belongs to Malaysia for reaching 71. 2% in 2008 as it pertains to total telecom income in comparison to 51% in 2003. Communications is an important role for a country especially to fill in business relationships in various sectors. Through high technology services, it'll be easier to conduct business trades for faster services and results. Apart from the normal phone calls and sending Text message to other customers, telecommunications companies now offer mobile internet to easily connect for either personal or business purposes. In this case, a person's work would be more productive for saving time to do something more important. Expenditures because of this category in totality have increased but for individual benefits, each one of the users reaches save money, in particular when it comes to habitual communications and international uses.

Aside from telecommunications, the use of pcs and the internet increased abruptly as well exactly like in virtually any other countries in the current generation. The number of internet and computer users in Malaysia grew from nearly 5 million users in 2000 to more than 12 million users in 2007. This development is about 144% and is also regularly increasing throughout the years.

Aside from the computers and the internet, more high technology electronic digital products are being popular in the country such as lightweight electronic products, laptops and different kinds of on the run devices and easy keep devices due to wireless, portability and convenience features made available from providers where competition in the said industry is starting to grow.

Just like the actual proponents discussed about technology being a area of the culture of the Malaysian, La Me personally Sa is an excellent choice of product to bring in in the market of Malaysia displaying technology and furniture industries.

Target Market Profiling

Description of Target Market

The proponents would like to focus on homeowners, residing a 25-34 calendar year old male or female in Kuala Lumpur with a disposable income above $15, 000 as their target market portion for La Me Sa.

The proponents will not base or concentrate their marketplace to students. The students may be a few of the finish users of the merchandise but the a long time preferred are the folks who are able to buy the product. Furthermore, businessmen or businesswomen, people who have careers such us for office works are also fit as users and are capable of purchasing the product.

The populace of Kuala Lumpur in Malaysia regularly heightens. The proponents choose Kuala Lumpur as the mark market city not only due to consistently increasing volume of society or being the best in conditions of inhabitants, but also because it is metropolis where most work at home opportunities are present. If the whole lot of business establishments are present in Kuala Lumpur, this just means that there will be a lot of jobs to be offered for the Malaysian citizens, making them make money to have the ability to invest their needs and needs.

Given the populace for Malaysia and Kuala Lumpur, the proponents used the data to obtain the percentage of Kuala Lumpur in the country. Since the society for different age brackets in Malaysia is also given, the proponents used the ratio of Kuala Lumpur to increase it with the populace by age to create apart the data only for the town.

Even though the percentage of Kuala Lumpur all together is decreasing, the population for the age range chosen by the proponents as marketplace is increasing constantly. The data for the population denseness in Malaysia or the population per device area is also shown where throughout the years, it raises constantly in conditions of number of folks in an area.

Consistently increasing volume of population could indicate greater probability or chance to have more consumers fit for the product. Linked to this factor, a greater impact would be present if these people in the given a long time are making profits for having careers. The technology nowadays, predicated on everyday experiences and lifestyles are seen to be always a requirement already and matching to Global Market Information Databases, middle-aged individuals are mostly to spend their money in high technology gizmos and products.

The proponents will concentrate on households with twelve-monthly disposal income of over $15, 000 and above. Because of insufficient data where in fact the throw-away income corresponds to specific ages, the proponents considered the data for Malaysia in totality as a basis. It implies that homeowners with the chosen disposable income aren't increasing constantly. Between years 2008 and 2009, the disposable income of Malaysians dropped abruptly but were able to increase for the entire year 2010. The great thing about the given data would be that the performance in conditions of income improved because it increase well for today's 12 months which is 2011. This means that it is getting more intensifying if to be weighed against the past years, making them in a position to spend more of what they need and want.

Psychographic and Behavior

25-34 calendar year olds in Malaysia are increasing in amount not only for the complete Malaysia but also for Kuala Lumpur itself, which is exactly what the proponents have chosen. It really is forecasted to increase and would cover 25% altogether population by 2015. In the Euromonitor International's report in their People and Homes category for Malaysia, it has been talked about that the said a long time would increase further in the future. Another report under categories of Technology, Communications and Marketing and Consumer Styles and Lifestyles, there's a significant upsurge in volume of middle older consumers together with their throw-away income. They dished up as a good influence as it pertains to sales of products including in-home consumer electronic products in particular.

Being bachelors or bachelorettes and having employment while surviving in the town, middle aged consumers are also those individuals who have a tendency to spend time with their families or deciding to get started on a family. Due to these behaviors and lifestyles, the center aged consumers are regarded as investing well as it pertains to household durables, gadgets and different home-related and home-improvement products and services.

Middle-aged Malaysians are already far more conventional in their spending habits than younger consumers, and the thought that new economical crisis are on the horizon could prompt many to curtail their spending even more. To connect this with the product of the proponents, La Me Sa will serve as a furniture that is wonderful for minimal space but has a whole lot of features and benefits and would fit to users as they wish for high technology gizmos even more as a result of fast-paced lifestyle nowadays, together with other communication establishments such providing internet, specifically cordless, to be utilized with the gizmos are starting to develop and the "smaller but better, much better" thought matters.

The stand above shows market stocks of companies in home furnishings industry in Malaysia. It implies that there are a lot of companies rivalling with each other in the same industry. However, the IKEA leads the marketplace share alongside the next three companies. The rest of the companies stated are definately not the shares the company market leaders have.

For the Philippines, there are no companies mentioned in Global Market Information Database but it shows an article about Cebu as a pre-recession furniture developing center and is dependent on exports to US by exporting well-designed middle to high-end furniture. Cebu has been producing a few of the finest furniture on the marketplace, and manufacturers there released many of the industry's most celebrated very Filipino designs innovations, like the use of indigenous Cebu raw materials like rattan, buri, natural stone build (using Cebu limestone), cane and iron and, most recently, abaca. Furniture made in Cebu was highly valued, and for many years manufacturers reaped the benefits associated with the booming US housing marketplace.

However, seeking to meet demand in their fast-growing local market, players in the Middle East have finally built new processing facilities in Saudi Arabia, Qatar and Dubai and have lured away a lot of Cebu's out-of-work finishers/polishers, craftsmen and other highly skilled workers.

Home Furnishing Companies in Malaysia

IKEA Malaysia

Strategic Direction

Grand Teak is likely to improve its sales, competitiveness and increase its brand image among consumers by aggressively promoting services and bringing out new trends and ground breaking ideas with better functions from its selection of products to suit every customer's needs.


The company focuses primarily on producing innovative and quality house ware and furniture, focusing on every consumer with low prices.


The company has no production facilities in Malaysia and most of the products are brought in to cater the needs of the Malaysian consumers.

Competitive Positioning

The company has a broad product stock portfolio specializing and innovating unique ideas in house ware and home furnishings. It retains a well-established worldwide distribution network with experience to constantly pay attention and understand consumers' requirements and requirements. The company is likely to increase its sales and improve its performance by bringing out and retailing better varieties of products in its stores.

Market Segmentation

As a company and a shop, Grand Teak positions itself in the middle and lower segments of the market for both house ware and home furnishings.

Market Share

Grand Teak is the marketplace leader in home furnishings in Malaysia with a show of 6% and is also expected to grow steadily because of its unique and impressive designs, ideas and the affordable prices of its products. Its current rank in home furnishings in Malaysia is #1 1.

Source: Euromonitor International

Macy Home Furnishings

Strategic Direction

Macy Home Furnishings is likely to display better sales and demand due to its brand name and its establishment in Malaysia among the pioneer brands in home furnishings and retailing by wanting to capture a larger share of the market as it increases further its brand name and increase its range of products offered to consumers.

IKEA is Macy Home Furnishing's main competition which retails similar products. The company is now presenting better types and lower prices with marketing promotions because of its products


Beside fabrics, the company also offers a comprehensive range of home furnishings accessories and provides services including interior consultancy, expert advice and practical guides to professional tailoring.


As an importer and dealer company, the company largely imports its products from neighboring countries to reduce costs. The business distributes imports and retails various home furnishing products throughout Malaysia from its shops and will not produce any products of its in Malaysia.

Competitive Positioning

The company not only focuses primarily on home furnishing products but it addittionally has other hobbies. It is also involved in providing new trends, home beautification ideas and alternatives for interior adornment in order to focus on a wider range of consumers with its products and services.

Market Share

The company currently ranks second in conditions of furniture stocks in Malaysia with a standard 5. 8% talk about. Its show has been growing credited to popular and the success of its strategic ideas in enhancing its overall sales.

Source: Euromonitor International


Strategic Direction

The company has its reputation as a renowned quality floor specialist for homes. The business's objective is to determine itself as the first choice in providing quality floor boards and floor furniture made from quality wood for both commercial and non-commercial use.


The company is only linked with the Swedish company Bona, and can usage of the latest equipment and technology in floor materials and maintenance and continuous R&D and international training.


The company has production facilities located in Selangor in Malaysia. The primary function of the processing crops is to produce high quality wooden floor and materials for the domestic and commercial building industries.

Competitive Positioning

The company is the sole one that deals with wooden flooring in any way phases and has custom-made installation and accuracy manufacturing facilities that make its products to the best specifications possible.

Market Segmentation

The company has a solid presence in the home furnishing sector and, given the existing market dynamics, it is put in both more mature and the growing market segments.

Market Share

Lumbermart's show is not mentioned. However, it is currently focusing on attaining more of a distinct segment position in the market.

Source: Euromonitor International

Grand Teak

Strategic Direction

Grand Teak's forecast to have a better progress and positive demand in the furniture and furnishing sector on account of the company's proper promotions and product extension.


The company has been providing free interior consultation and ideas for customers by just filling in an online form. It also provides new and creative ideas for home furnishing and interior design for home owners, increasing awareness among consumers about the services the business offers.


The company distributes imports and retails various home furnishing products throughout Malaysia from its retailers but it generally does not produce any products of its in Malaysia.

Competitive Positioning

The company strives to be the first choice in retailing and providing/creating home furnishing ideas. Hence, the business's efforts are concentrated entirely on the house furniture and furniture section.

Market Segmentation

Grand Teak happens to be positioned in the older and fast-growing sections of the home furnishing sector due to its knowledge and experience in building, and providing ideas and developments including retailing furniture ideas in its retail centers.

Market Share

Grand Teak's market show is not mentioned. However, the business is currently wanting to capture a more substantial share of the marketplace where it has specialized.

Source: Euromonitor International

Industry Analysis

The proponents would suggest the pros and downsides about the furniture industry in Malaysia with a relation to the merchandise La Me Sa by using Porter's Analysis method. The examination will focus after the beginning of the process or procedures in entering the marketplace in Malaysia that needs to be considered, La Me personally Sa's introduction to its competition offering the same products, the possible consumers and their preferences, the option of substitutes and the options of attracting the market of Malaysia.

Threat of Entry

In Malaysia's furniture industry, there are already a lot of furniture companies offering common products such as dining tables, chairs and different furniture. La Me Sa is some sort of furniture having unique features and advantages as an add on to the product because it links to the updating high technology criteria in demand in Malaysia such as electronic digital products where more portable products are better, especially with different cordless communications technology booming within the industry. These unique features will serve as a product differentiation strategy. However, consumers tend to be dedicated to existing brands of furniture in Malaysia, especially to IKEA to be number 1 in ranking and putting highest in market show. In this case, it will be not easy to remain competitive as a new competition even if the proponents give a different product in conditions of specifications, because a new competitor must have its name established first for the consumers to be aware with the product, making this a difficulty for the proponents as new entrants.

As for the time issues, the risk of entry appears to be average for having not too long in terms of duration in days to put on a small business in Malaysia. For cost, since the proponents are just starting, it'll be hard to hide all the expenditures needed. As a brand alongside the product offered, it could be hard to make devoted customers opt to shift brands however the uniqueness of the product helps it be quite easier for the proponents in conditions of threat of entry.

Rivalry among Industry Players

There are a whole lot of furniture vendors in Malaysia but the market leaders for this industry with little difference in market shares are limited. IKEA and Macy Home Furnishings rank as the top and the second in ranking. Regarding to GMID, both offer almost the same products, making them close competitors. All of those other furniture retailers curently have little shares. Competition is much more likely to be high if the vendors or the players in the industry share the same strategies in case the products are almost the same because they will be having price competition as well and making them lower the prices. Because the players are of different sizes in terms of market shares, your competition with La Me personally Sa is average since it differentiates with the existing products offered in Malaysia.

Bargaining Vitality of Suppliers

For Malaysia, suppliers do not necessarily have a solid power to change or raise the prices of the products they offer, especially for furniture retailers in the market that offer tables. Tables within Malaysia are experiencing only little differentiation in styles but the uses will always be the same. The materials used to produce a table will always be wood, glass or vinyl, but in various kinds. Variations will only vary on its specifications and uniqueness of its set up with additional uses to benefit the consumers.

If there will be no substitutes offered or the competition is little with high product differentiation, the energy of suppliers will definitely climb because they will be in a position to control the costs. In another circumstance, if the buying ability present has a great profitability, gleam opportunity for suppliers to change prices. Few suppliers offering popular products entails a larger opportunity for them to control the prices. As for La Me Sa, it is something with high variation if compared to existing tables available for sale, thus, creating a way to shape up their own prices that they can control.

Bargaining Ability of Buyers

Similar to suppliers, having a high bargaining power connotes that the purchasers have the energy to dictate the prices or to bring it down. The demand in Malaysia as observed in Table 2. 5 about their ingestion expenditure as it pertains to furniture and computers are increasing in years, predicting more possible to consumers for La Me personally Sa. Since there will be a higher number of potential customers, which means that the buyers will not be able to dictate prices to suppliers or merchants. If it so took place that La Me personally Sa will not click on the market and the individuals are price delicate and decided to just have another product to serve as an alternative, the small number of potential buyers that still decide to buy the product can easily dictate prices to suppliers to allow them to earn earnings.

Threat of Substitute

When it comes to furniture industry especially for tables, tables just cannot be substituted. You might have other furniture with different uses like putting books set up or having it in several figures or sizes to place it with designs, but its uses will be limited. A desk is a piece of furniture where you can place food or your computer with other things all in a single. For computer dining tables, especially a laptop table for our product, a regular table can do as an alternative to put and fit a computer or a laptop together with other products connected in utilizing it. From web sites of the furniture companies in Malaysia, most laptop tables that they offer only include drawers for storage but there are no audio system and lamps set to it. La Me Sa has a distinctive feature as a stand, having it fit for portable computers with predetermined sound system and a light that regular desks don't have.

Industry Conclusion

According to GMID, the demand for furniture and personal computers are increasing consistently due to abrupt changes and updates when it comes to technology. For computer systems, not only desktop computers are in demand. A lot of portable electronic digital products such as netbooks or notebook computers and different kinds of personal computers that are user friendly and easy to bring especially during travels or work are actually entering the market as it easily captures the consumers' attentions. These new portable electric products are backed up with the booming communications industry, offering cellular connection and broadband connectivity for internet utilization.

Having Porter's Model as a guide for the industry examination, it demonstrates there's a favorable market within Malaysia. La Me Sa corresponds well as a product that suits to both increase in furniture and upsurge in electric products specifically computers. There are a great number of furniture sellers existing in Malaysia but its offerings to the consumers contain little variants to products, making La Me Sa a unique product in the market. A wide array of requirements and possibility of having consumers can cause suppliers to control the product prices well. Having this as a fresh export product, La Me Sa will be making a name in the market, known for its innovation.

What separates La Me Sa from ordinary products existing on the market of Malaysia's furniture industry is the creativity. This advancement will serve as the main element success factor for the product insurance agencies unique features, features and benefits, creating an edge over other products. Malaysian people may have been used to viewing furniture with the same features again and again. It may be in different designs, sizes, color, materials used and the way to set up furniture such as detachable lower leg parts nonetheless they can swap to products that they can see is way better in your competition by considering what would fit to their lifestyle of experiencing their portable gadgets around they can place in a compact or right-sized fit with unique features already available with the primary purpose or use itself. This makes the users conserve space and makes them use something in a convenient way without quitting the style in the right price.

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