1. SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN
FOUNDATION IN NATURAL BUILD ENVIRONMENT
PRESENTATION TITLE: Comparison of Business in Malaysia
GROUP MEMBERS:
Names Student ID Presentation / Research Report Roles.
Alwin Ng Kun Ket 0323596 Interviewer, Report Compilation, Comparative
Analysis, Methodology, Subtitles Transcript
Chung How Cyong 0324152 Minutes of meeting, Recommendations, Interview Note
Darren Leong 0323645 Leader, Key summary, Analysis, Interviewer, Video
editor, Artistic cover, comparison of business
Goh Jia Jun 0323302 Comparative Analysis, Business challenges, Subtitles
Transcript
Kenneth Tan 0322482 Description of Business, Photographer, Research On
Business to interview
Ng Sheng Zhe 0323830 Description of Business, Photographer
Yip Xiaojung 0323852 History of Business, Nature or Markets, Comparison of
business
Economics
LECTURER: Ms.Tay Shir Men
SUBMISSION & PRESENTATION DATE: 19th January 2015
2. 2
Table of contents
1. Key Summary 3
2. Brief Description of the Businesses
a) Klang Valley 4-5
b) Melaka 6-7
3. Comparative Analysis of the Businesses’ Competitive Traits
a) Part I, Competition Of Business 8-13
Part II, Bios of Competitors
Part III, Strategies employed to compete with competitors
b) Part IV, Challenges faced by new business 14
c) Part V, Nature of Markets 14
d) Part VI, Comparison of Business (similarities and differences) 15
Appendix 3 16
e) Part VII, Analysis of which business is more successful 17
4. Recommendation 18
5. Appendices 19-22
6. Reference 23
3. 3
Key Summary
This report is a comparative analysis of two Automotive Workshop (Tyre) businesses situated
in two different geographical locations that has been operating for a minimum 10 to 15 years.
The two selected workshop are E.H Auto Cares Service Centre Sdn. Bhd. which is located in
Bandar Sunway, Selangor and Hock Tyre Services and Battery Sdn. Bhd. which is located in
Melaka. This report is divided into different sections which are the key summary, brief
description of the history of local Automotive Workshop businesses in Malaysia, brief
description of the two selected businesses, comparative analysis of the two businesses’
competitive traits, recommendation, bibliography, appendices, attachments, and reference.
Interviews has been conducted with each of the businesses’ owner in order to obtain further
information of their businesses. The collected information is then carefully analysed and
reported.
Hock Tyres Sdn Bhd
EH Auto Cares Service
4. 4
Brief Bio of the Businesses
1.) E.H Auto Care Service Centre ( Klang Valley)
E.H Auto Cares Service Centre is a famous car service centre in Bandar Sunway. The shop
is located at 24, PJS 11/7, Bandar Sunway, 47500 Subang Jaya, Selangor which is just right
behind Sunway University. The interviewee was Mr Ng Chian Fain, the current owner of the
company. They had expanded their business with 3 branches of workshop including this also
ss2 and Klang. There are currently 8 employees in this branch including 1 clerk.
The main products sold in E.H Auto Care Service Centre are different brands of tyres,
batteries water, car accessories and etc. They also provide various types of services such as
wheel balancing, braking servicing, air conditioning services, vehicle repairs and gearbox
overhaul. The average number of estimated customer per month will be around 350 and most
of them are his regular customer. The average age group of his customer mostly are from the
5. 5
range 40-50 years old usually businessmen and they willing to spend their money. In
addition, the estimated annual revenue per year is approximately around 1.8 million ringgit.
In order to start up a business from scratch nowadays, around 300k-350k of capital is
required excluding the rental of the shop. This is because starting a business from scratch,
you need to purchase different types of machinery such as hydraulic jack and balancing
machine. Besides that, the owner must also need to have basic knowledge to run this kind of
business such as knowing how to solve technical problems and size of tyres to be used.
This is a family business and was founded by the Mr Ng Chian Fain’s father. His father used
to be an apprentice and worked in KLCC. From there, His father decided to start up his own
business after few years. . The business was first started in 1988 where the first branch was
initially opened at ss19, following that, in the year 1996 they shifted to the current location in
Bandar Sunway. The business had been operated for nearly 20 years.
According to Mr Ng, his strategy to keep his customers coming back is make sure they must
cater the need of the customers accordingly. He stated that car services centre is similar to a
clinic. Customers come to the workshop just hoping that they are able to solve their
problems. Other than that, as a businessman you must be humble to the customer. They must
know more about customers, communicate with them and satisfied customer will come back
also recommending to their friends.
Last but not least, E.H Auto Care Service Centre plan to increase the services provided in
the future is sending 2-3 employees for training course every 8 months to improve and learn
new technical skills in order to provide services to new model car such as hybrid car. Lastly,
they also make their business better by advertising though different sources such as
newspaper and Facebook page.
6. 6
2) Brief bio of the business (Melaka)
Hock Tyre Services & Batteries Sdn Bhd is a popular tyre repairing shop in Melaka. It
is located at 66, Jalan TTC 13, Taman Teknologi Cheng, Fasa 3C, 75250 Melaka, Malaysia.
This tyre shop can be found easily as it is located just in front of the Cowboy Supermarket.
There are initially 5 branches and this tyre shop we are interviewing is the second shop of
Hock Tyre Services & Batteries Sdn Bhd. Until today, there are only 4 shops left operating as
the first shop is no longer in operation. The second tyre shop is opened in year 1998 and it is
now managed by the founder’s daughter named Joan Lim. Miss Joan works as an accountant
leading her few employees in her shop. There are 1 assistant and approximately 4 technicians
in the shop.
The main products sold in the shop are tyres. They sell several brands of tyres such as
Silverstone, Toyo, Michelin, Yokohama and Kenda. However, they also sell accessories of
cars such as engine oil, battery, wiper, brake pad and more. In addition, they sell suspension
for cars which act as a shock absorbers for cars. Besides, they provide lots of services such as
dyno test, advance alignment, advance balancing, engine tuning and outdoor service. They
also help their customers to change tyres and engine oil. They even provide car repair
services now to attract more customers. They have hundreds of customers in a month and
they maintain their customer by having trust in each other.
7. 7
Hock Tyre Services & Batteries Sdn Bhd started their business since 1989 in their
first shop. In 1989, they were just selling tyres and provide tyre changing services. They sell
more products and provide more services to expand their business since the opening of their
second shop in Melaka. The founder of Hock Tyre Services & Batteries Sdn Bhd is Lim
Choo Hock. Mr Lim is assisted and supported by his wife, Low Giap Boon. They opened
their first shop at Taman Malim Jaya, Melaka on the 13th of November 1989. The first shop
was actually rented because Mr Lim did not have that much capital during that moment.
Their motive for starting the business was because there were not much tyre shop
during 1989 in that particular area. Therefore, Mr Lim found out that it was a suitable place
to make a fortune and opened their first tyre shop in that area. After being successful in this
industry, Mr Lim started opening a few branches during the year 1998, 2002 and 2007. Their
recent development is that they manage to open another branch in January, 2013. Although
they have 4 shops by now, they have a plan which is to open more branches in Melaka.
Furthermore, they have monopolized the tyre industry in that area as 4 of the shops are
opened in the similar area. Overall, Mr Lim and his family manage to do well in tyre industry
and there is no doubt that they are the most successful tyre shop in that particular area.
8. 8
Comparative analysis
Part I, II, III
E.H. Auto Care Service Centre Sdn. Bhd (Klang Valley)
E.H Auto Care Service Centre Sdn. Bhd. is located in an industrial estate in No.24, Jalan PJS
11/7, Bandar Sunway, Petaling Jaya, which is unfortunately located among several other
automotive shops. The top 3 competitors around the area are Apex Tire & Car Care Sdn.
Bhd, GT Car Service Centre Sdn Bhd workshop and Tek Ming Auto Service S/B . However,
Mr Ng state that each of the competitors have their own field of specialization and therefore
does not affect them much. Below are the brief bios of the competitors,
1. Apex Tire & Car Care Sdn. Bhd.
Apex Tire & Car Care Sdn. Bhd. is located at 2, Jalan PJS 11/20, Bandar Sunway, Petaling
Jaya, 46150 which is opposite E.H Auto Care Service Centre Sdn. Bhd. This company has 2
interconnected workshops together with a new decoration. They also specialize in continental
cars and provide vehicle maintenance such as oil changes, vehicle repairs, air conditioning
service, etc. It shows a lot of different rims ranging from 14-22 inch beside the shop. This
new design of the shop will attract more customers who don't have a specific car workshop
compare to E.H Auto Care Service Centre Sdn. Bhd.
9. 9
2. GT Car Service Centre Sdn Bhd
GT Car Service Centre Sdn Bhd is located at Jalan PJS 11/22, Bandar Sunway, 46150
Petaling Jaya, Selangor, Malaysia. This workshop located near E.H Auto Care Service
Centre. GT Car Service Centre is also one of the famous car service centres in that area
because it provides a lot of services and also the service performance is higher than others.
This company also sells car accessories and vehicle parts.
3. Tek Ming Auto Service S/B
Tek Ming Auto Service S/B is located at Jalan PJS 11/24, Bandar Sunway Industrial Park
46150 Petaling Jaya, Selangor, Malaysia which is located 130 meters away from E.H Auto
Care Service Centre Sdn. Bhd.. Tek Ming Auto Service specializes in tire sales and mainly
sell famous brand Silverstone tires and rims.
10. 10
The strategies employed to compete with competitors (Klang Valley)
Service
Mr Ng, the owner of E.H Auto Care Service Sdn. Bhd. told us that they provide various types
of service to able to compete with other car care centre. Mr Ng said that car service will be
like a doctor treat a patient, the owner of the vehicle will be the family member of the patient.
Doctor not only treat the patients but also need to deal with their family. Mr Ng always
communicates with his customer friendly and know their thoughts so customer will keep
coming back.
Pricing
Mr Ng always compares the price of his service with other workshops to make sure his
service won’t be too expensive or cheap so as his customer able to afford it
Advertisement
E.H Auto Care Service Centre Sdn. Bhd. promotes its company through newspaper and
Facebook page. This enables for this company to compete with other companies in PJS 11
Performance
E.H Auto Care Service always maintains good performance and high efficiency. 7 workers
with quantified and experienced working together to serve their customers. Workers able to
repair and solve customer’s problem in a short period so it will bring convenience to
customers.
11. 11
Hock Tyres Sdn Bhd (Melaka)
Hock Tyres Sdn Bhd is located at 66, Jalan TTC 13, Taman Teknologi Cheng, Fasa 3C,
75250 Melaka, Malaysia. It is also the biggest workshop in the area. Ms.Joan says it doesn’t
face much competition as it one of the most dominant automotive industry there (oligopoly).
The three main workshops it faces competition from are Cheng Fu Tyre Services, L and K
Car services and C and L Autoservices which are located nearby. Below are brief bios of the
competitiors,
1. Cheng Fu Tyre Services
Apex Tire & Car Care Sdn. Bhd. is located at 58, Jalan Ttc 13, Taman Teknologi Cheng,
75260 Melaka, Malaysia which is beside Hock Tyres. This company provides Common car
maintenance tasks including, check/replace the engine oil and replace oil filters, inspect or
replace windshield wipers and checking or refilling windshield washer fluid. Not a big threat
to Hock tyres because of its location which requires further travel to access
2. L and K Car services
L and K Car services is located at 36, Jalan Ttc 15, Taman Teknologi Cheng, 75260 Melaka,
Malaysia. This workshop quite a distance from Hock Tyres. L and K Car services is one of
the infamous car service centres in that area because it doesn’t provide a lot of services and
also the service performance is lower than others. This company also sells car accessories and
vehicle parts.
12. 12
3. C and L Autoservices
C and L Autoservices is located at No. 23, Jalan Ttc 15, Taman Teknologi Cheng, Melaka,
75250 Melaka, Malaysia which is located few blocks away from Hock Tyres. C and L
autoservices is often close and do not take in many customers, rarely a threat to hock tyres. It
runs tire sales and mainly sell Silverstone tires and rims.
13. 13
The strategies employed to compete with competitors (Melaka)
Service
Ms. Joan says that the upmost important is the customer service provided to attract
customers. A good customer service will ensure the customer to revisit the workshop.
Pricing
Ms. Joan sets the price of her service at a reasonable price. She often follows the latest
market pricing to obtain an estimated pricing for the services.
Advertisement
Hock Tyres promotes her workshop through the web. It is a good platform for advertising as
the social networking possibilities are limitless
Performance
Hock tyres ensure that the workshop provides the most up to date services to the customers to
fullfill their expectation of a fast and reliable service. This rises the customer satisfaction on
an overall scale.
14. 14
IV) Obstacles faced by new businesses who wish to enter their markets today
One of the main obstacles faced by new businesses is the start-up capital. According to Mr
Ng, start-up capital nowadays needs about RM 300, 000 not including the rental of the shop.
Apart from that, machines for tire servicing are also quite pricey.
Besides that, new businesses will face with their competitors who have started their business
long time ago and also automotive are competitive in Malaysia. Customers usually will visit
the workshop with experience worker.
Last but not least, choosing a new location is very important for new business. People would
like to go the nearest workshop rather than which is far away from the city. However, the
location is at the center of the city, the rental of the shop will be very expensive, which is not
affordable for an owner who wish to start a new business.
V) Nature of the Markets
The nature of the markets for the business in Bandar Sunway, E.H. Auto Care Service Centre
Sdn. Bhd. and Melaka, Hock Tyre Service Batteries Sdn. Bhd. are oligopoly. This meant that
both of the businesses and its rivals are dominating the market in that area. There are a few
sellers in the market.
These businesses has their own pricing power. However, they still receive competition from
the rivals in the area. Therefore, each decision they make on the pricing of their goods can
make a huge impact on the market. There is a mutual dependence between the businesses.
15. 15
VI) Similarities and Differences of Both Business
Similarity
E.H Auto Cares Service
Centre, Bandar Sunway
Similarities Hock Tyre Services & Battery,
Melaka
Automotive Workshop Type of Businesses Automotive Workshop
Family Business Business Establishment Family Business
Largely local and returning
customers
Main Consumer & Customer Largely local and returning
customers
Commercial Area Location Commercial Area
Corner Lot Shop lot Location Corner Lot
3 Amount of Branches 3
Differences
E.H Auto Cares Service
Centre, Bandar Sunway
Differences Hock Tyre Services & Battery,
Melaka
27-28 Years (1987/1988) Years of Establishment 27 years (1989)
8 Total amount of staffs 7
High, business is situated in
Bandar Sunway “Motorsport”
area, where majority of the
stretch of road is Automotive
related business
Competitiveness in Location Little, business basically
controls the whole area
~350 Average number of monthly
customers
~500
1.8 Million RM Annual Revenue Figure ~7 Million RM
16. 16
APPENDIX 3: Comparative Analysis Summary Table
Competitive Traits Business A (Melaka-
Based)
Business B (Klang Valley-
Based)
1. Number of
Competitors (in ranges
e.g. 2 to 10, 10 to 50, 50
to 150, etc.)
2 to 4 7 to 10
2. Barrier to Entry
(Weak or Strong?
Why?)
Weak, many connections
that is able to support the
business
Strong barrier, faces stiff
competition and high
modal
3. Differentiated or
Standardized Products
(if differentiated
provide 2 to 3
examples)
-Automotive services
-Selling of parts such as
tyres and engine oils
-Automotive services
-Selling of parts such as
tyres and engine oils
4. Pricing Power (Price
Makeror Taker?
Why?)
High, Price Maker,
Monopolises local area
industry
High, competition is high in
local area.
5. Other Characteristics
(e.g. Any close product
substitutes, mutual
dependence, constant
advertising)
First distributor of Toyo
tyres, relies on Toyo tyres
for advertising
Mutual dependence on
business in the area
6. Verdict (Monopoly?
Oligopoly? Perfect
Competition?)
Oligopoly Oligopoly
17. 17
VII) Conclusion of which business is more successful
Based on the comparative analysis, it can be conclude that Hock Tyre Services &
Battery in Melaka is more commercially successful compared to E.H Auto Cares Service
Centre which is located in Bandar Sunway, Selangor. This is based on our findings through
data collected and researching and analysing them.
First off, Hock Tyre Services & Battery has a higher annual revenue figure, with an
estimated 7 Million Ringgit compared to E.H Auto Cares Service Centre’s 1.8 Million
Ringgit. This could most likely be due to the amount of products that Hock Tyre carry. E.H
Auto Cares Service Centre acts more as a regular automotive workshop with certain
specialization. Hock Tyre also has a high amount of average monthly customer at 500,
compared to E.H Auto’s 350. Another thing that we analysed is the amount of products and
services that they provide. Hock Tyre’s carries much more products ranging from sport rims,
exhaust pipes and having their own in-house suspension. Whereas E.H Auto mainly provides
routine services and common products such as engine overhaul, tyre change and routine
engine maintenance.
Saying so, this can be concluded that Hock Tyre Services & Battery is more commercially
successful than E.H Auto Cares Service Centre. This statement can be justified with
supporting reasons and comparative analysis from our report.
(L-R) Kenneth Tan, Ng Chian Fain, Leong Darren, Goh Jia Jun
(L-R) Ng Sheng Zhe, Joan Lim, Yip Xiao Jun, Luke, Alwin Ng
18. 18
Recommendation
After completing the case study, we noticed that these businesses had some limitations that
restricted their ability to unleash their full potential in the market. The following are the 2
different recommendations provided for each business.
A) E.H. Auto Care Service Centre Sdn. Bhd. (Bandar Sunway)
I. Competitors
There are a lot of competitors located nearby the shop such as Kakimotor Sdn. Bhd. and GT
Auto. Both shops offer the same services, with slightly similar price. The recommendation is
for the shop to provide better services with guaranteed quality in order for them to compete
with other competitors. You cannot expect that to gain new customers every day. A customer
will come back to you if you provide satisfaction to them.
II. Attitude
Every business requires a good attitude towards the customers. Consumers expect fast and
nice services, from the workers to the shop owner. E.H. Auto Care has three branches, and it
is hard to guarantee that the workers have good attitude towards their customers. Therefore,
as a suggestion for the owner, every worker should undergo an interview and gain some
feedback of services from the consumers.
B) Hock Tyre Services & Batteries Sdn. Bhd. (Melaka)
I. Technician Issue
They face the issue of lacking of skilled manpower. As Ms. Joan stated, she would love to
expand her business but faces the lack of skilled technicians on the market. A suggestion is to
hold courses and training programmes to produce their own technicians instead of hiring the
limited ones.
II. Location
Each of the branches have their specific targeted customers. The branch that we interviewed
mainly focuses on the repair of 4-wheel drive vehicles. During the day of the interview, we
went to the branch and had to waste 30 minutes to get to the right place. The recommendation
for the shop is the owner should recreate a shop sign with bigger font and nice design. This is
to allow customers to notice the shop much more easily.
19. 19
Appendices
Photos: Klang Valley Interview
EH Auto Cares Service Centre
The Klang Valley Team
From the left: Kenneth, Mr. Ng, Darren, and Jia Jun
20. 20
EH Auto Care service Centre provides and sells many different types of engine oil and car
parts
A Car is being serviced by EH Auto Care Service Centres
Contact details:
EH Auto Cares And Services
Address: 24, Jalan PJS 11/7, Bandar Sunway, 47500 Subang Jaya, Selangor, Malaysia
Phone:+60 3-5634 2118
21. 21
Photos: Melaka Interview
Hock Tyres Services Sdn Bhd
The Melaka Team
From the Left: Sheng Zhe, Ms. Joan, Yip, How Cyong, Alwin
22. 22
Hock Tyres Sells many different brands of tyres
They also sell many other car related stuff such as engine oil and wipers
Contact Details:
Hock Tyres
Address: Jalan Ttc 13, Taman Teknologi Cheng, 75260 Melaka, Malaysia
Phone:+60 6-336 8189
