School of Architecture, Building & Design
Principle of Economics [FNBE0135]
FNBE April Intake
“A Comparative Analysis of 2 Business of Similar
Industry in Different Geographical Locations”
Prepared by: Karen Kong Chai Ni (0315480)
Lily Then (0313973)
Mak Mun Choon (0314928)
Lecturer: Chang Jau Ho
Table of Content
Background Information of Business
-Pink Petals Fashion
Comparative Analysis of Businesses‟ Competitive
This project aims to analyze and compare two businesses on different settings
and let students understand the market competition in real world. The business‟s
shop we had chosen was Pink Petals Fashion located at Kuala Lumpur and
Butik L‟Avenir located at Penang. This report had consisted of background
information about businesses and comparative analysis of businesses. Face-toface interview was used for us to obtain the information and compare the
businesses‟ competitive traits. After analysis, we had found that Pink Petals
Fashion is more commercially successful than Butik L‟Avenir. We also
recommended some suggestion on improving the competitiveness for each
Background information of Businesses
Pink Petals Fashion
Outlook Enterprise Sdn Bhd is a very popular retail-clothing company located
at Jalan Hang Tuah in Kuala Lumpur. Outlook Enterprise Sdn Bhd has 56branches of clothing shopes that located in different area. Pink Petals Fashion
is one of the branches of the Outlook Enterprise Sdn Bhd that located in Kuala
Lumpur. It located at G4, Kenanga Wholesale City. The address of Pink Petals
Fashion is No2, Jalan Gelugor, Kuala Lumpur. Mr Bong, the boss of Outlook
Enterprise Sdn Bhd had started this business at 2011 year. Mr Bong started this
business because this business belongs to his family business. Mr Bong had
started different type o business and pass to his daughter and sons take care the
business. One of his sons, Bong Siok Siong had taken care of Pink Petals
Fashion. He had hired a manager, Sam Liew and hired 3 workers, Ramlah
Junaidi, Dicky and Tan Siew Ping to help him take care of the shop. The main
product of the Pink Petals Fashion was clothes. There were two concepts of
clothes sold by Pink Petals Fashion that was Malay Concept and Fashion
Concept. Pink Petals Fashion sold Malay Concept such as Baju Kurung and the
Fashion Concept such as ladies clothing. Besides that, Pink Petals Fashion also
sold lady accessories such ashandbag, belt and scarf. The number ofcustomers a
day was 100 people.Two workers, Dicky and Tan Siew Ping had served the
customer of Fashion Concept, one workers, Ramlah Junaidi had served the
customer of Malay Concept while Sam Liew, manager will served all
customer.Pink Petals Fashion‟s monthly revenue figure was around $30000.
However, Pink Petals Fashion did not have any changes but the choices of
clothes increases over the past 1years. The office phone number of Pink Petals
Fashion is +60321449988. If customers have any question or want to make a
complaint can call this number.
First Avenue Mall is a spread over seven levels shopping mall with the fifth to
seventh floor consisting of parking spaces that located in Penang. It has opened
since November 2010, many of the first outlet in the building are women‟s
apparel stores. Butik L‟Avenir is a small clothing shop that located at 4 th floor,
First Avenue Mall. The address of Butik L‟Avenir is Jalan Magazine,
Georgetown, 10300 Georgetown, Penang, Malaysia. Nicholas, the boss had
started the business in August 2012 year. This is his first shop as he did not
opened any branch. Nicholas had started this business because he was interested
in doing the clothing business. He felt satisfied when he saw people wear
beautiful clothes. He had hired a worker, Eelyn to help him take care of the
shop. Eelyn also considered as manager as she can make small decisions
without asking him such as held a promotion or when purchase new clothes.
The main product of Butik L‟Avenir was Fashion ladies clothing. Butik
L‟Avenir carried out an assortment ladies cloting that has a range of size with
latest trends in style. In addition, Butik L‟Avenir also sold ladies accessories
such as earring, bracelet and necklaces. The number of customers of Bukit
L‟Avenir a day is not constant. For weekdays, the number of customers is about
3-7 peoples while the number of customers for weekend is about 10-20 peoples.
The monthly revenue figure of Butik L‟Avenir was around $10000 or below
and it is not constant. However, Butik L‟Avenir did nothave any changes as it
just started the business I years. If customers want to know when the new style
of clothes will arrive can call phone number of Eelyn, 016-3218381.
Comparative Analysis of Businesses‟Competitive Traits
1) Number of competitors of businesses in their respective markets
Pink Petals Fashion has many competitors. The range of number of
competitors around 2-10. However, Pink Petals Fashion has top three
competitors which are A To Z, Melody and Rafflesia as they are located
at the same building. For Pink Petals Fashion, A to Z is the strongest
competitors. It is because the size of the A to Z is bigger than Pink Petals
Fashion and the choices of clothes also more than Pink Petals Fashion. A
to Z also just located beside Pink Petals Fashion only. Besides that, the
top three competitors of Pink Petals Fashion also sell the same concept of
clothes with it which is Malay Concept and Fashion Concept with style
A to Z
The women is the manager of A to
Z while the man is manager of Pink
Butik L‟Avenir has many competitors. The range of number of
competitors is arounf 10-20. However, Butik L‟Avenir has top 3
competitors which are H&M, Teetoo and Belle as they are located at the
same building. H&M (Hennes & Mauritz AB) is a very well-known
multinational retail-clothing company. H&M is the strongest competitors
for Butik L‟Avenir. It is because H&M has a larger size and the choices
of Fashion clothes more than Bukit L‟Avenir. H&M also can get the
latest style of clothes with normal price faster than Bukit L‟Avenir. In
addition, Belle also is a strong competitor because it has more choices of
fashion clothes and cheaper than Bukit L‟Avenir.The three competitors of
Butik L‟Avenir sell more branded clothes than Bukit L‟Avenir.
Strong Competitors of Bukit L‟Avenir
2) Strategies compete with competitors and How successful business
The strategy that Pink Petals Fashion used to compete with its
competitors is lower the price. For example, when A to Z held a sale,
Pink Petals Fashion will held a promotion with „Buy 1 free 1‟ to attract
the customers. In addition to sell clothes, Pink Petals Fashion also sells
ladies accessories such as handbag, belt and scarf. Pink Petals Fashion
also will use the strategies „Get free handbag one if customers buy above
$150‟ to attract customer buy more. Pink Petals Fashion also has a
purpose that is always provide the best services to the customers.
Held promotion and lower the price of clothes to attract customers
The strategy that used by Bukit L‟Avenir almost same with the Pink
Petals Fashion that is lower the price. Bukit L‟Avenir also held a
promotion and sells ladies accessories such as earring, necklace and
bracelet to attract more female customers. Another strategy used to
compete with the competitors is the manager has to always follow the
trend to purchase different styles of clothes quickly.
Held promotion with„2 for $100‟ and sell ladies accessories
The result of Pink Petals Fashion compete with other competitors is quite
successful. There was around 100 people visit the shop and buy the
product a day no matter weekdays or weekend. The selling results of one
month also will not lose compare to other strong competitors. It is
because the price of the clothes of Pink Petals Fashion is cheaper than
other competitors and the quality of the clothes also will not lose
compare to the clothes of A to Z. The customers also can get the free
products if they reach the goal. Besides that, the workers of Pink Petals
Fashion always provide best service to the customers.
Butik L‟Avenir is quite unsuccessful compare to Pink Petals Fashion. The
highest number of customer is around 10-20 peoples for weekends only.
This is because the H&M has a good reputation on the market. Even
though Bukit L‟Avenir lower the price of product and held a promotion
but the quality of the clothes of H&M is better and it isbranded clothes.
So, it is difficult to compete with the H&M.
3) Obstacles faced by business strong or weak
The obstacle faced by Pink Petals Fashion is economics is not good. The
price of the product now had increased. People now prefer to save the
money to buy the item that is necessary only. However, for Pink Petals
Fashion, it is easy to overcome the obstacle. It is because Pink Petals
Fashion is the branch of the big and popular retail-clothing company,
Outlook Enterprise Sdn Bhd. It can fully support the needs of the Pink
Petals Fashion and invest capital into the Pink Petals Fashion.
The obstacle faced by Butik L‟Avenir is there is too many clothing shop
now and it is difficult to compete with other competitors. The owner also
must have a big capital before started a business. For Butik L‟Avenir, it is
difficult to overcome the obstacles compare to Pink Petals Fashion. It is
because Butik L‟Avenir just a small clothing shop. Butik L‟Avenir has
not big company that can fully support and invest it.
4) Nature of the businesses
Pink Petals Fashion is an oligopoly market. Oligopoly market is a market
that dominated by a few sellers. The competitors of the Pink Petals
Fashion also are an oligopoly market. This is because the market of
business is dominated by Pink Petals Fashion, A to Z, Rafflesia and other
competitors. Each of them controls their own market and cannot get
involved each other‟s market as there is a strong barrier to enter the
Butik L‟Avenir is an oligopoly market. One of the competitor, H&M is a
monopoly market but the other competitors are an oligopoly market. A
monopoly is the single dominating seller of a market. H&M consider as
monopoly market because it control 70% of the market. Other clothing
shops are difficult to compete with the H&M. Bukit L‟Avenir and other
competitors control their own market and do not get involved each
Comparative Analysis Summary Table
2. Barrier to Entry
(Weak or Strong? Why?)
Business B (Pink Petals
1. Number of
Competitors (in ranges
e.g. 2 to 10, 10 to 50, 50
to 150, etc.)
Business A (Butik
Fashion- Kuala Lumpur)
10 to 20
2 to 10
Because too many
Because economies not good.
3. Differentiated or
(if differentiated provide
2 to 3 examples)
Standardized Products (Fashion
4. Pricing Power (Price
Maker or Taker? Why?)
Because Butik L‟Avenir
is just a single business
shop and the owner can
decide the price by
Because Outlook Enterprise
Sdn Bhd is the head office of
Pink Petals Fashion and it
control and decide the price of
Pink Petals Fashion.
5. Other Characteristics
(e.g. Any close product
Ladies Accessories (Handbag,
6. Verdict (Monopoly?
clothes and Malay clothes)
Which Business is more commercially successful?
Based on our analysis, Pink Petals Fashion is more commercially
successful than Butik L‟Avenir. Monthly revenue of Pink Petals Fashion
is around above RM 30,000 while Butik L‟Avenir is around RM 10,000
and sometimes is below RM 10,000 and is not constant.
This is because Butik L‟Avenir is still considers as a new shop compare
to Pink Petals Fashion. They still don‟t know how to sustain in the market.
Besides that, location also is a reason that Pinks Petals Fashion more
commercially successful than Bukit L‟Avenir. Pink Petals Fashion is
located at Kenanga Wholesale City as many people live around the area
and there is many people will go there to buy the product while Butik
L‟Avenir is located at First Avenue Mall as not so much people live
around the area and they will go there to buy the product.
In addition, Pink Petals Fashion is selling Malay Concept, Fashion
Concept and Ladies Accessories has more choices than Bukit L‟Avenir is
just selling Fashion Concept and Ladies Accessories. In Malaysia, Malay
is considers as a common racial and largest consumers. So, Pink Petals
Fashion can earn more profit by have a business from different race.
Pink Petals Fashion
We had suggested that the shop should promote more man style of
clothes because the man also has choice to choose their clothes. If just
selling lady types of clothes, the shop can just doing business with lady.
So, the business of the shop will decrease. Other opinion is to open more
branches to sell their products in other shopping malls and places. It is
because it will let more people know more about their shop and product
that they selling, so the business will expand and the competitiveness also
will improve. Besides, the shop also has to improve their relationship
with supplier and customers. This is the most effective way to improve
the business, because have a good relationship with supplier, they will get
product faster so customers will come buy clothes with them.
We had suggested that the shop should increase the investment in the
marketing activities. The shop should do more promotion to promote
their product to customers, so that many people know more about their
product. Furthermore, they can produce more style of clothes like selling
man style clothes. If their shop just sell simply one type of clothes, the
customers will feel less selection in this shop, so increasing style of
clothes is necessary. Moreover, make a good relationship with the
customers to increase their trusted on their shop and product. If the shop
can get the trust from the customers, customers will help us to promote
our shop. This will increase the visibility of the shop.
Pink Petals Fashion
Pink Petals Fashion‟s
The man of the right side in the photo
is the owner, Mr Bong.
Main Product of Pink Petals Fashion
Other products of the Pink Petals Fashion
A to Z is the strongest competitor of
Pink Petals Fashion
The woman is the owner of the A
Sam Liew, the manager of
the Pink Petals Fashion
Main Product of A to Z
Fashion Concept Clothes and
Malay Concept Clothes
Bukit L‟Avenir‟s premises
Main Product of Bukit L‟Avenir
Fashion Concept Clothes
Eelyn, manager of the Bukit
Other products of Bukit
The most powerful competitors of
such as 2 for $100
1. When was the business founded?
2. Who are the key founders?
3. What are your main products?
4. Can u estimate the number of customers a day?
5. What is the business‟ monthly revenue figure?
6. Do you have many competitors? Who are they? Who are your top 3
7. What strategies have they used to compete with you?
8. Generally, do you feel it is easy or hard to enter this market? Why?
9. How often do you release a new product?
10. Are you pricing decisions strongly affected by your competitors?
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