Integrated Research Report

中藥舖
Chinese Medical Hall
THE LEGENDARY

!
SCHOOL&OF&ARCHITECTURE,&BUILDING&AND&DESIGN&
FOUNDATION&IN&NATURAL&&&BUILT&ENVIRONMENT&
&&
PRESENTATION&TITLE:&RESEARCH&ASSIGNMENT&REPORT&(CHINESE&HERBAL&MEDICINE&SHOP)&
GROUP&MEMBERS:&
ENGLISH&II&/&ENGLISH&2&(ELG&30605&/&ENG&0205)&
LECTURER:&CASSANDRA&WIJESURIA&
SUBMISSION&&&PRESENTATION&DATE:&NOVEMBER&25,&2015.&2.00PM&
NAMES PRESENTATION&/&RESEARCH&REPORT&ROLES
YEAP&PHAY&SHIAN • LEADER&
• COMPARATIVE&ANALYSIS&BETWEEN&BOTH&
BUSINESSES&PART&I&
• APPENDIX&
• CONCLUSION
LEE&YET&YEE • VIDEO&EDITTING&
• PRESENTATION&SLIDES&
• MAKING&APPOINTMENT&WITH&THE&
INTERVIEWEE&
• FINAL&CHECKING
MADELINE&LIEW&ZHI&QI • COMPARATIVE&ANALYSIS&BETWEEN&BOTH&
BUSINESSES&PART&II&
• BRIEF&DESCRIPTION&OF&BUSINESS&
• ARTISTIC&COVER&
• MAKING&APPOINTMENT&WITH&THE&
INTERVIEWEE
HENG&SY&HUA • TRANSCRIPT&GATHERED&INFORMATION&
• RECOMMENDATION&
• REFERENCES&
• BIBLIOGRAPHY
TAM&ZHAO&WEI • HISTORY&OF&BUSINESS&
• SUMMARY&&
• MINUTES&OF&MEETINGS&
• COMPILATION&OF&RESEARCH&REPORT
FNBE!August!2015!ENG!II! Integrated!Project!Report 1

TABLE&OF&CONTENTS&
NO. TITLE PAGE&NUMBER
1 Ar=s=c!Cover @
2 Cover!Page 1
3 Table!of!Contents 2
4 Summary 3
5 Descrip=on!of!History!of!Business 4
6 Research!Report!
i. Brief!Biography!of!the!Businesses!
@ Brief!Descrip=on!of!the!Businesses!!
@ Similari=es!&!Diﬀerences!of!Both!Businesses!!
ii. Compara=ve!Analysis!
@ Number!of!compe=tors!!
@ Brief!Descrip=on!of!Compe=tors!
@ Compe==on!Strategies!
@ Obstacles!Faced!by!New!Firms!
@ Nature!of!the!Market!!
@ Compara=ve!Analysis!Summary!Table
6!
13
7 Recommenda=on 22
8 Conclusion 25
9 Bibliography 26
10 Interview!Ques=ons!&!Answers 27
11 Appendix 37
12 Minutes!of!Mee=ng 43
13 References 49

Summary&&
This! assignment! focuses! on! the! compara=ve! analysis! between! two! similar! businesses! at! two!
diﬀerent!geographical!loca=ons.!The!chosen!business!is!the!Chinese!herbal!medicine!which!is!a!
part! of! the! integrated! system! of! primary! health! care,! known! as! Tradi=onal! Chinese! Medicine!
(TCM).! The! Chinese! herbal! medicine! has! an! uninterrupted! history! of! development! da=ng! back!
thousands!of!years!in!China!and!other!parts!of!East!Asia.!Cze!Kong!Medical!Hall!&!Sundry!which!is!
located!at!Cheras,!Kuala!Lumpur!and!Chop!Yan!Tuck!Medical!Hall!which!is!located!at!Seremban!
Town,!Negeri!Sembilan!has!been!chosen!as!the!analysis!targets.!This!is!to!compare!the!business!of!!
one! medical! hall! with! sundry! business! and! one! with! no! sundry! business.! Interviews! have! been!
conducted! in! both! medical! halls! as! to! gather! further! informa=on! from! their! business.! The!
informa=on! gathered! has! been! analysed! and! further! categorised! into! respec=ve! topics! with!
reliable! sources! in! reference.! As! a! conclusion,! Chop! Yan! Tuck! Medical! Hall! is! commercially!
successful!than!Cze!Kong!Medical!Hall!&!Sundry!because!Chop!Yan!Tuck!Medical!Hall!has!a!greater!
annual!revenue,!wider!range!and!amount!of!customers!and!they!sell!beber!quality!Chinese!herbs,!
and! they! even! provide! tradi=onal! pulse! diagnosis.! Besides! these,! careful! analysis! on! the!
recommenda=ons!in!order!to!improve!their!compe==ve!skills!have!been!included!in!this!report!as!
to!show!diﬀerence!between!the!two!medical!halls.!!

History&of&TradiUonal&Chinese&Medicine&(TCM)&
Tradi=onal!Chinese!Medicine!(TCM)!has!a!long!and!rich!history,!and!it!is!the!third!oldest!form!
of!medicine.!TCM!dated!back!to!the!period!of!The!Huang!Di.!The$NeiJing$(The$Yellow$Emperor’s$
Canon$of$Internal$Medicine)$that!is!the!greatest!and!the!oldest!Chinese!medical!classic!is!milestone,!
which!has!established!the!theore=cal!founda=on!for!the!medical!system!and!philosophical!theory.!!
In!the!19th!century,!with!western!medicine!entering!and!developing!rapidly!in!China,!TCM!
development! was! affected! severely,! which! was! between! the! devil! and! the! deep! sea.! Ader! the!
Opium!Wars!in!China,!which!made!Chinese!to!have!falsity!belief!that!TCM!is!unscien=fic,!feudal.!
Hence,!TCM!had!always!been!in!the!posi=on!being!inves=gated,!examined,!queried!and!reformed,!
and!developed!on!thin!ice.!Ader!the!founda=on!of!the!People’s!Republic!of!China,!the!Government!
affirms! the! policy! to! protect! TCM.! The! stabilisa=on! of! TCM! allowed! it! to! be! spread! to! places!
outside!China.!This!includes!places!such!as!the!western!countries,!Southeast!Asia,!Japan,!Korea,!
India!and!etcetera.!!
TCM!in!Malaysia!was!brought!in!by!Chinese!immigrants!from!China!in!the!olden!days.!They!
came!to!Malaya!to!find!a!living.!Hence,!TCM!started!to!develop!in!Malaya.!It!was!quickly!accepted!
by!the!locals!as!they!were!effec=ve!in!curing!disease!and!helped!a!lot!in!maintaining!the!people’s!
health.!Ader!some!=me!then,!TCM!was!widely!used!in!Malaya.!Over!hundreds!of!Chinese!medical!
halls!were!established!in!all!over!Malaya!including!Kuala!Lumpur,!Ipoh,!Penang!and!etcetera.!Some!
of!them!are!s=ll!running!the!business!un=l!today!as!the!pioneers!passed!down!the!knowledge!and!
business!to!the!younger!genera=ons.!
!
!
Huang$Di$Nei$Jing Chinese$Medical$Hall$at$Malaya Pioneers$of$TCM$Malaysia

The!fact!that!the!tradi=onal!Chinese!medicine!has!existed!for!over!thousands!of!years,!and!is!
s=ll!used!today!is!because!of!its!value!as!a!form!of!healthcare.!The!value!of!TCM!is!judged!by!its!
poten=ali=es!as!well!as!its!present!applica=ons,!and!the!evalua=ng!work!should!be!based!more!on!
the!TCM!originated!from!the!ancient!=mes!and!collected!various!kinds!of!techniques!under!the!
direc=ng!of!its!theory.!TCM!theory!has!the!character!of!holism,!and!is!told!mainly!by!concepts!
related!to!Chinese!philosophy!and!culture.!TCM!theory!does!its!best!to!make!use!of!the!natural!
law,!and!finds!out!that!the!body!of!a!man!is!in!unity!with!his!mind!and!should!not!be!apart!from!
each!other!any=me!and!anywhere.!The!most!fundamental!theory!is!the!Yin!Yang!Concept!and!it!is!
the!founda=on!of!diagnosis!and!treatment.!
TCM! theory! emphasises! most! on! the! self@healing! power! of! man! for! curing! diseases! and!
keeping!fitness,!and!many!of!its!therapies!are!employed!for!enhancing!this!power.!Without!it,!TCM!
cannot!do!anything!to!promote!health!and!to!cure!diseases,!and!the!mechanism!of!TCM!would!
remain! a! mystery! to! us.! The! cul=va=on! of! mind! or! spirit! is! the! basis! of! those! methods! for!
flourishing!self@healing!power,!and!thus!TCM!theory!has!the!character!similar!to!that!of!religions!
that!ask!people!depend!on!themselves.!!
&
&
Yin$Yang$Concept$
TCM$focuses$on$allowing$the$selfChealing$power$of$
man$to$fight$diseases.

Brief&DescripUon&of&the&Business&&
A)&Cze&Kong&Medical&Hall&and&Sundry,&Kuala&Lumpur.&
Cze!Kong!Medical!Hall!and!Sundry!is!currently!located!at!Jalan!Medan!Midah,!Taman!Midah,!
56000,!Kuala!Lumpur,!and!it!is!a!family!business.!They!are!selling!both!tradi=onal!chinese!herbs!
and!sundry!to!be!compe==ve!to!the!other!business.!The!business!is!founded!at!1990!by!Mr.!Liew!
Cze!Kong!and!run!by!him!and!his!wife!together.!The!present!shop!is!opened!at!2000!as!he!shided!
the!shop!from!Ampang!to!Cheras.!He!learned!the!knowledge!of!tradi=onal!herbs!when!he!ﬁrst!
worked!in!a!tradi=onal!chinese!herbal!shop.!Then!he!opens!his!own!medical!hall!and!sundry!to!
earn!himself!a!living.!There!are!only!3!employees!in!the!shop!including!Mr.!Liew!and!his!wife.!
Cze Kong
Medical
Hall and

Cze! Kong! Medical! Hall! and! Sundry! sells! around! 500! tradi=onal! herbs! along! with! ready!
packaged!herbal!soup!and!sundry!such!as!oil,!milo!and!washing!powder.!According!to!Mr.!Liew,!the!
majority!of!the!customers!are!chinese!as!the!loca=on!of!the!business!is!in!a!chinese!residen=al!
area.!The!demand!of!the!ready!packaged!herbal!soup!is!the!highest!as!it!is!good!for!health!and!
aﬀordable! for! the! customers.! There! are! around! 50! customers! everyday! and! most! of! them! are!
senior!ci=zens!and!adults.!Most!of!the!customers!are!loyal!to!Cze!Kong!Medical!Hall!and!Sundry!
and!has!been!buying!herbs!and!sundry!from!the!shop!for!a!long!period!of!=me!as!Mr.!Liew! is!
honest!to!the!customers.!The!peak!hour!of!the!business!is!in!the!morning!as!it!is!just!located!next!
to!the!morning!market.!They!use!modern!equipments!such!as!electronic!balance!and!calculator!to!
replace!the!tradi=onal!ones!to!be!more!eﬃcient.!!

B)&Chop&Yan&Tuck&Medical&Hall,&Seremban&
Chop! Yan! Tuck! Medical! Hall! is! located! at! Jalan! Munawir,! Bandar! Seremban,! 70000,!
Seremban,! Negeri! Sembilan.! It! is! a! tradi=onal! chinese! medical! hall! that! provides! consulta=on,!
treatment!and!prescrip=on!to!their!customers.!They!also!sell!tradi=onal!chinese!herbs!and!also!
=dbits! such! as! groundnuts! and! sweets.! The! business! was! founded! by! his! grandparents! in! 1944!
during!the!Japan!occupa=on!of!Malaya.!It!started!oﬀ!with!a!simple!mo=ve!when!his!grandparents!
worked!in!Eu!Yan!Sang!and!decided!to!open!a!medical!hall!and!sundry!shop!to!earn!a!living.!In!
1995,!they!decided!to!focus!on!only!selling!tradi=onal!chinese!herbs!as!it!can!gain!more!proﬁt!as!
well!as!less!troublesome!handing!the!sundry.!There!are!11!employees!in!the!shop!including!Mr.!
Chong.!
Chop Yan
Tuck
Medical

Furthermore,!Chop!Yan!Tuck!Medical!Hall!provides!tradi=onal!pulse!diagnosis!that!is!carry!
out!by!a!chinese!sensei,!Ng!See!Heng!that!have!over!40!years!of!experience.!Most!of!the!customers!
visit!the!store!to!get!diagnosis!as!tradi=onal!chinese!medicine!is!natural!and!not!harmful!to!the!
body.!Thus,!there!are!more!than!100!customers!everyday!to!buy!herbs!and!get!diagnosis!from!the!
sensei.!They!use!tradi=onal!equipments!such!as!abacus!and!chinese!weighing!scale.!The!price!of!
their!products!range!from!RM1.40!up!to!a!few!thousands.!According!to!Mr.!Chong,!most!of!the!
customers!are!passed!from!genera=on!to!genera=on!as!they!have!trust!in!the!shop.!They!sell!high!
quality!chinese!herbs!to!diﬀeren=ate!themselves!from!others!as!others!sells!lower!grade!herbs.!

InformaUon&of&Interviewee&
Cze&Kong&Medical&Hall&&&Sundry&
Name:!Liew!Cze!Kong!
Job!Posi=on:!Owner!
Oﬃce!phone!number:!+603@91312553!
!
Chop&Yan&Tuck&Medical&Hall&&
Name:!Chong!Ngai!Loong!
Job!Posi=on:!Retailer!
Phone!number:!+6012@750!3802!

SimilariUes&&&Differences&of&Both&Business&
SimilariUes&
Differences&&
Cze&Kong&Medical&Hall&and&
Sundry
SimilariUes Chop&Yan&Tuck&Medical&Hall
Short!Term Future!Plans Short!Term
Local!Customer!!
Senior!Ci=zens
Targeted!Market Local!Customer!!
Senior!Ci=zens
None Current!Branches None
Family!Business Family!Business!
Through!word!of!mouth Adver=sing! Through!word!of!mouth
To!earn!a!living!and!have!
passion!towards!chinese!
herbal
Mo=ve! To!earn!a!living!and!have!
passion!towards!chinese!
herbal
Sundry
Differences Chop&Yan&Tuck&Medical&Hall
Liew!Cze!Kong!
He!worked!in!the!herbal!field!
as!an!appren=ce!when!he!was!
young.!Since!then,!he!built!a!
strong!bond!with!the!herbal!
field!and!decided!to!start!his!
own!business!ader!about!10!
years.!He!started!his!business!
in!Ampang!at!the!year!of!1990.!
However,!he!moved!and!
started!his!herbal!shop!in!year!
2000.!He!relocated!the!
business!because!he!found!
that!Taman!Midah!is!lack!of!
herbal!stalls!and!the!
popula=on!of!residents!at!this!
area!is!high.!!
Founder&and&History
Chong!Yan!Tuck!
Mr.Chong!Ngai!Loong’s!
grandfather!worked!in!Eu!Yan!
Sang!before.!He!learnt!a!lot!of!
knowledge!about!Chinese!
herbal!shop.!As!such,!he!
decided!to!start!his!own!
Chinese!herbs!business!in!
order!to!support!the!expenses!
of!his!growing!son.!He!also!
wanted!to!introduce!the!high!
quality!herbs!to!the!people!in!
Seremban.!
Taman!Midah,!Kuala!Lumpur LocaUon Bandar!Seremban,!Seremban
3 Employees 11

Monday!@!Saturday!,!8:00am!@!
6:00pm!
Sunday!,!8:00am!@!1:00pm
Working&Hours Monday!@!Saturday,!8:30am!to!
8:00pm!
Sunday,!10:00am!to!2:00pm
around!50 Number&of&customers more!than!100
Slightly!modern!shelves!with!
air!condi=oned!and!CCTV!
installed!
Shop&Layout&and&Atmosphere Tradi=onal!chinese!herbal!
shelving!with!lots!of!drawers,!
approx.!RM!1.5!mil Annual&Revenue& approx.!RM2!mil
N/A Services& Tradi=onal!Pulse!Diagnosis!
Chinese!Herbs!and!Sundry Main&Products Chinese!Herbs!
Calculator Means&of&CalculaUon Abacus!and!Calculator
Electronic!Balance Means&of&Weighing& Chinese!Weighing!Scale

ComparaUve&Analysis&Between&Cze&Kong&Medical&Hall&and&Sundry&and&&
Chop&Yan&Tuck&Medical&Hall&
I&c&Number&of&CompeUtors&
Cze!Kong!Medical!Hall!and!Sundry,!which!is!located!in!Cheras,!has!three!compe=tors!which!are!Eu!
Yan!Sang,!Kim!Loy!Medical!Hall!and!Sundry!and!Ban!Soon!Heng!Medical!Hall!and!Sundry.!On!the!
contrary,!Chop!Yan!Tuck!Medical!Hall!has!three!top!compe=tors,!that!is!Eu!Yan!Sang!and!Cheoon!
Lin!Medical!Hall!and!Lifecare!Chinese!Medical!Hall.!
II&c&Brief&DescripUon&of&CompeUtors&
Cze&Kong&Medical&&Hall&&&Sundry’s&Top&3&CompeUtors&
1.&Kim&Loy&Medical&Hall&&&Sundry&Shop&
Although!there!are!many!medical!hall!and!sundry!shops!in!this!area,!Mr.!Liew!knows!much!about!
his!compe=tors.!It!is!much!more!compe==ve!to!run!a!business!in!Klang!Valley!than!in!Seremban!
due!to!the!fast!development!of!Klang!Valley.!Kim!Loy!Medical!Hall!and!Sundry!is!one!of!the!strong!
compe=tors!as!they!have!modern!renova=ons!and!a!larger!shop!and!located!just!next!to!Cze!Kong.!
They!also!provide!over!500!types!of!medical!herbs!and!also!have!packaged!chinese!herbal!soup.!
There!are!more!stock!on!sundry!and!variety!compared!to!Cze!Kong.!The!shop!layout!is!refurnished!
recently!and!changed!their!shelves!to!modern!shelves!so!that!they!can!last!longer.!The!working!
hours!for!Kim!Loy!is!8am!to!8pm,!so!more!customers!will!go!to!Kim!Loy!during!noon!as!Cze!Kong!is!
closed!by!then.!
Exterior!view!of!Kim!Loy.

2.&Ban&Soon&Heng&Medical&Hall&&&Sundry&
!
Next,!Ban!Soon!Heng!Medical!Hall!and!Sundry!is!another!strong!compe=tors!since!it!is!located!next!
to!a!main!road!and!the!shop!has!a!larger!area.!The!products!provided!are!much!the!same!as!Kim!
Loy!Medical!Hall!and!Sundry.!The!shop!has!a!longer!working!hour,!that!is!8am!to!8pm,!so!many!
customers! that! are! coming! by! night! will! visit! Ban! Soon! Heng.! The! products! are! priced! slightly!
higher!compared!to!others!because!they!have!a!variety!of!sundry!that!others!do!not!sell!such!as!
frozen!food!and!ice!cream.!!
3.&Eu&Yan&Sang&&
Finally,!Eu!Yan!Sang!has!just!opened!this!branch!recently,!so!it!do!not!compete!much!with!Cze!Kong!
as!the!customers!are!diﬀerent.!Eu!Yan!Sang!was!established!in!1879!and!now!have!over!300!outlets!
across!Asia.!They!oﬀers!a!huge!variety!of!products!that!includes!health!supplement,!bird’s!nest,!
ginseng!and!others.!They!also!have!promo=ons!to!increase!their!sales!and!customers.!Apart!from!
that! they! oden! held! ac=vi=es! related! to! health! awareness! such! as! talk! about! detoxica=on! and!
Paren=ng!Sharing!Session!so!that!they!can!get!more!people!recognise!about!their!brand.!
Exterior!view!of!Ban!Soon!Heng.
Exterior!view!of!Eu!Yan!Sang.

Chop&Yan&Tuck&Medical&Hall’s&Top&3&CompeUtors&
1.&Eu&Yan&Sang&&
According! to! Mr.! Chong,! the! retailer! of! Chop! Yan!
Tuck,! Eu! Yan! Sang! is! the! only! compe=tor! as! the!
products! sold! is! much! the! same.! As! men=oned!
earlier,! Eu! Yan! Sang! has! over! 130! years! of! history,!
selling!varie=es!of!products!under!their!own!brand.!
The! herbs! sold! are! quality! guaranteed! by! their!
brand.!Most!of!the!customers!that!buy!Eu!Yan!Sang!
products!are!loyal!customers!as!they!are!rewarded!
by! the! membership! promo=on! that! Eu! Yan! Sang!
held!yearly.!
!
!
2.&Cheoon&Lin&Medical&Hall&
Apart!from!that,!Cheoon!Lin!Medical!Hall!is!also!an!
old!shop!in!the!area.!The!herbs!sold!are!similar!to!
Chop!Yan!Tuck!Medical!but!they!sell!liquor!as!well!to!
abract!customers.!The!interior!design!of!the!medical!
hall!is!modern!compared!to!Chop!Yan!Tuck!Medicial!
as! they! use! modern! drawers.! Their! sell! packaged!
ingredients!of!herbal!soup!to!provide!convenient!to!
the!customers.!!
!
Exterior!of!Eu!Yan!Sang.
Exterior!of!Cheoon!Lin!Medical!Hall.

3.&Lifecare&Chinese&Medical&Hall&&
Lifecare!Chinese!Medical!Hall!is!another!compe=tor!
of! Chop! Yan! Tuck! Medical! Hall! as! they! provide!
medical!diagnosis!and!treatment!to!their!customers.!
Apart! from! that,! acupuncture,! Chinese! herbal!
medicine,!remedial!massage,!exercise!and!breathing!
therapy! (such! as! qigong),! and! diet! and! lifestyle!
advice! are! available! here.! Most! of! the! customers!
here! come! here! for! acupuncture! weekly! to! treat!
their!diseases.!
!
Exterior!of!Lifecare!Chinese!Medical!
Centre.

III&c&CompeUUon&Strategies&
LocaUon Cheras&&
Sundry
Seremban&
Chop&Yan&Tuck&Medical&Hall
Number&of&
CompeUtors&
3!
a. Kim!Loy!Medical!Hall!and!
Sundry!
b. Ban!Soon!Heng!Medical!Hall!
and!Sundry!
c. Eu!Yan!Sang!
d.
3!
a. Eu!Yan!Sang!
b. Cheoon!Lin!Medical!Hall!
c. Lifecare!Chinese!Medical!Hall
Pricing The!products!are!priced!
reasonably!according!to!the!
market!price.!Mr.!Liew!does!not!
increase!the!price!to!get!profit!
from!it!but!he!keep!other!
expenses!such!as!u=li=es!low!to!
increase!his!profit.!
The!price!of!the!chinese!tradi=onal!
herbs!are!slightly!higher!than!other!
compe=tors!as!the!quality!of!herbs!
are!beber.!
Services Cze!Kong!is!very!friendly!to!his!
customers!and!provides!great!
services!for!them.!This!abracts!
many!customers!by!word!of!
mouth.!Apart!from!that,!he!gives!
discount!to!his!regular!
customers!as!a!promo=on.!
They!have!experienced!sensei!to!
provide!tradi=onal!pulse!diagnosis!for!
the!customers.!Ader!the!diagnosis,!
they!give!prescrip=on!to!the!customer!
if!needed.!This!has!established!a!close!
rela=onship!with!the!customers!
because!of!their!posi=ve!aotude!to!
the!customers.!
Products There!are!many!types!of!sundry!
available!to!abract!customers!
and!compete!with!other!shops.!
The!quality!herbs!are!imported!
from!China!and!stored!well!in!
refrigerator!for!preserva=on.!!
The!tradi=onal!herbs!are!mostly!
imported!from!China!as!well,!which!is!
high!quality.!This!is!to!differen=ate!
themselves!from!others!

IV&c&Obstacles&Faced&by&New&Firms&
(a) Cze&Kong&Medical&Hall&&&Sundry&
Several!obstacles!are!faced!by!the!new!businesses!that!wish!to!enter!the!Chinese!herbal!medicine!
market.!For!instance,!Cze!Kong!Medical!Hall!&!Sundry!indicates!that!it!is!hard!to!look!for!employees!
who!truly!have!a!keen!interest!in!Chinese!herbs.!Furthermore,!running!this!business!requires!long!
working!hours.!They!should!be!physically!and!mentally!prepared!to!work!long!hours.!The!younger!
genera=ons!would!be!more!willing!to!opt!for!working!hours!that!are!shorter!compared!to!working!
for!long!hours!in!a!Chinese!herbal!medicine!market.!Since!this!field!is!more!towards!the!tradi=onal!
side,!this!type!of!business!would!be!more!suitable!for!those!who!are!really!passionate!in!Chinese!
herbal!medicine.!Another!obstacle!would!be!the!fact!that!the!current!firms!would!already!have!
strong!customer!loyalty!where!their!trust!is!gained!throughout!the!years.!As!such,!it!would!be!hard!
for!new!firms!to!gain!their!compe=tors!customers’!loyalty!and!to!go!for!other!medical!halls.!
(b) Chop&Yan&Tuck&Medical&Hall&
Chop!Yan!Tuck!Medical!Hall!states!that!it!is!tough!to!enter!due!to!the!process!of!obtaining!a!license.!
Every!type!of!Chinese!herbs!requires!its!own!license.!The!process!of!geong!this!license!would!be!
quite!tedious.!To!start!up!a!new!Chinese!herbal!medicine,!a!huge!amount!of!capital!is!required.!Mr.!
Chong!stated!that!approximately!half!a!million!of!capital!is!needed!to!establish!this!business!these!
days.!Back!then!in!1944,!only!a!few!hundred!Ringgit!is!required!to!start!this!business.!Not!only!that,!
nowadays! aspiring! Chinese! herbal! medicine! owners! do! not! have! as! much! experience! and!
knowledge!to!run!the!firm!effec=vely.!According!to!the!term!economies!of!scale!from!principle!of!
economics,!this!means!that!the!firm!has!more!ability!to!produce!goods!at!a!lower!average!cost!
over!the!long!run.!Due!to!this!concept!of!economies!of!scale,!new!firms!would!require!some!=me!
to! be! able! to! compete! with! those! prices.! In! addi=on,! new! firms! would! have! to! install! air!
condi=oner! in! their! shop! due! to! hygienic! reasons.! Moreover,! they! have! to! choose! a! strategic!
loca=on!so!that!their!shop!can!be!easily!accessed!and!no=ced.!Mr.!Chong!also!added!the!fact!that!
luck!is!also!needed!to!help!assist!a!successful!Chinese!herbal!medicine!business!career.!!

V&c&Nature&of&the&Market&
(a)&Cze&Kong&Medical&Hall&&&Sundry&
The!nature!of!the!market!for!Cze!Kong!Medical!Hall!&!Sundry!is!monopolis=c!compe==on.!There!
are!a!number!of!businesses!selling!herbs!within!the!area.!!
This!business!consists!of!top!three!compe=tors!whereby!two!are!selling!almost!iden=cal!product!
that!is!both!herbs!and!sundry!items!while!the!other!one!is!solely!selling!herbs.!Since!there!are!
several!of!these!firms!in!the!market,!the!barriers!to!entry!for!new!firms!are!rela=vely!weak.!Due!to!
having!mul=ple!firms!selling!almost!iden=cal!products,!the!compe==on!level!is!quite!high.!As!such,!
the!firms!cannot!charge!at!a!high!price!or!else!the!customers!will!purchase!from!its!rivals.!Being!in!
a!monopolis=c!compe==on,!Cze!Kong!Medical!Hall!&!Sundry!has!weak!pricing!power,!that!is!to!say!
that!this!firm!is!a!price!taker!whereby!the!price!is!affected!by!the!supply!and!demand.!The!firm!
cannot!influence!their!prices!of!the!products!because!there!are!s=ll!compe=tors!out!there!that!
have!influence!on!the!pricing!as!well.!As!such,!if!one!firm!were!to!increase!their!price,!making!it!
higher!than!the!other!firms,!most!customers!would!opt!for!other!Chinese!herbal!medicine!shop.!To!
increase!the!pricing!power!and!protect!their!profit!from!their!compe=tors,!Cze!Kong!Medical!Hall!&!
Sundry!strive!to!differen=ate!their!products!by!providing!good!customer!service.!This!resulted!in!
their!customers!developing!abachment!for!their!products.!This!leads!to!their!customers!having!a!
stronger!abachment!and!would!be!harder!for!compe=tors!to!steal!their!customers!away.!!
(b)&Chop&Yan&Tuck&Medical&Hall&
The!nature!of!the!market!for!Chop!Yan!Tuck!Medical!Hall!is!oligopoly!compe==on.!This!business!is!
opera=ng!in!a!market!structure!dominated!by!very!few!Chinese!herbs!seller!in!the!market.!All!of!
these!businesses!are!selling!products!that!are!similar!but!not!iden=cal.!There!are!some!differences!
between! them.! Chop! Yan! Tuck! Medical! Hall! sells! Chinese! herbs! and! has! a! sensei! to! provide!
consulta=on! whereas! this! firm’s! compe=tors! are! selling! herbs,! herbs! &! liquor! and! providing!
consulta=on!respec=vely.!In!this!oligopoly!market,!there!are!strong!barriers!to!entry!for!new!firms.!
Since!there!only!a!small!number!of!firms!in!the!market!and!there!is!minimal!compe==on,!Chop!Yan!
Tuck!Medical!Hall!has!rela=vely!strong!pricing!power.!This!means!that!this!firm!is!able!to!set!high!
prices!and!make!enormous!profits.!Therefore,!Chop!Yan!Tuck!Medical!Hall!is!a!price!maker.!If!this!
firm! were! to! increase! their! price! slightly,! majority! of! their! customers! would! s=ll! purchase! from!
them!because!there!are!only!a!few!of!these!type!of!business!in!the!market.!!

ComparaUve&Analysis&Summary&Table
CompeUUve&Traits Cze&Kong&Medical&Hall&&&
Sundry&&
Chop&Yan&Tuck&Medical&Hall&&
1.&Number&of&
CompeUtors&
3!within!200!meters 4!within!200!meters
2.&Barrier&to&Entry&
(New&Firms)
Weak!barrier!to!entry!
@!Weak!to!some!extend!but!
since!this!is!a!Chinese!herbal!
industry,!the!barrier!to!entry!
is!leaning!towards!the!
strong!side.
Strong!barrier!to!entry!
@!Huge!start@up!capital!
@!Legal!Barriers!!
(Hard!to!obtain!a!license)!
@!Difficulty!in!hiring!experienced!
employees.!
3.&DifferenUated&or&
Standardized&
Products&
Differen=ated!products!
" Provides!good!
customer!service!
" Convenient!loca=on!
" Toiletries!
Differen=ated!products!
@!Rare!Chinese!herbs!
@!Has!a!Chinese!sensei!to!provide!
consulta=on!through!tradi=onal!pulse!
diagnosis.

4.&Pricing&Power Price!taker!
" Weak!pricing!power!
" The!business!does!
not!have!the!ability!
to!charge!at!a!higher!
price!unreasonably!
than!the!other!firms!
or!else!their!
customers!would!
switch!to!other!
compe=tors.!
" The!compe==on!
among!other!firms!is!
quite!intense.!
" Price!is!followed!
according!to!the!
market!price!that!is!
determined!by!
supply!and!demand.!
Price!maker!
" Strong!pricing!power!
" Few!firms!in!the!market!lead!to!
minimal!compe==on.!
" Able!to!set!at!a!high!price!and!
make!enormous!profit.!
5.&Other&
CharacterisUcs
Subs=tute!goods!!
" Modern!medicine!
Subs=tute!goods!!
@!Modern!medicine
6.&Verdict Monopolis=c!Compe==on! Oligopoly!Compe==on!!

RecommendaUons&
A) Cze&Kong&Medical&Hall&and&Sundry&
Overall,!Cze!Kong!Medical!Hall!and!Sundry!has!a!high!variety!of!products!for!both!sundry!and!
herbs.!The!shop!is!located!at!an!area!which!is!considered!as!decent!as!that!are!various!residen=al!
area!around!the!shop!and!the!number!of!customers!is!also!quite!high.!However,!there!are!some!
recommenda=ons!for!the!shop!so!that!the!business!of!Cze!Kong!Medical!Hall!and!Sundry!can!be!
improved.!
1.&InstallaUon&of&AutomaUc&Sliding&Door&
An!automa=c!sliding!door!at!the!entrance!
of!the!shop!should!be!installed!to!ensure!a!
cooler!environment.!This!is!also!make!sure!
that! the! herbs! and! sundry! items! are! in!
good!condi=on.!Not!only!that,!the!hygiene!
of!the!shop!will!be!improved.!!
!
!
2.&More&Manpower&
More! manpower! should! be! employed! in!
the! shop! to! lend! a! hand! in! the!
arrangement!of!products!in!the!shop!and!
to! control! the! stock! in! the! store! so! that!
the!outlook!of!shop!would!be!neater!and!
=dier.!!
There!is!no!proper!door!at!the!entrance!of!the!shop.
There! are! only! three! workers! including! the! owner!
and!his!wife.

3.&More&Cabinets&
More! cabinets! should! be! placed! in! the!
shop! so! that! the! products! will! not! be!
arranged! on! the! floor,! that! is! below! the!
customer’s!eye!level.!Placing!the!products!
o n! t h e! g ro u n d! wo u l d! b e! m o re!
inconvenient!for!the!customers.!
!
B) Chop&Yan&Tuck&Medical&Hall&
Overall,!Chop!Yan!Tuck!Medical!Hall!is!considered!as!a!more!tradi=onal!shop.!Its!loca=on!is!
strategic!as!it!is!located!at!the!heart!of!the!city!town!of!Seremban.!As!the!shop!only!sells!herbs,!
there!is!a!wide!variety!of!herbs!sold!in!the!shop.!Hence,!Chop!Yan!Tuck!Medical!Hall!can!be!said!to!
have!the!largest!amount!of!Chinese!herbs!sold!among!all!other!medical!halls!in!that!area.!Apart!
from!that,!there!are!also!some!recommenda=ons!that!can!be!implemented!to!improve!the!
business.!
1.&&Use&of&Modern&Technology&
Digital!balance!and!calculator!can!be!used!instead!of!tradi=onal!weighing!scale!and!abacus!in!the!
shop!so!that!the!measurement!and!calcula=on!process!can!be!done!in!a!shorter!period!of!=me!and!
it!would!be!more!efficient.!
Some!of!the!products!are!place!on!the!floor.
The! owner! of! the! medical! hall! is! using! the!
abacus.
The! workers! are! using! tradi=onal! weighing!
scale.

2.&Policy&of&Uniform&and&Proper&Hygiene&Afre&
Policy! of! uniform! and! proper! hygiene! aore!
should!be!implemented!such!as!wearing!mask,!
bouﬀant! cap! and! gloves.! With! these,! the!
hygienic! level! will! certainly! be! improved! in! the!
shop.!
!
!
3.&Provide&a&Proper&Room&for&ConsultaUon&
A!proper!room!should!be!provided!for!the!sensei!
when! abending! his! pa=ents! to! increase! the!
privacy!level!of!the!pa=ents.!
&
Improper!wear!and!handling!of!the!herbs.
The!consulta=on!is!taken!place!right!in!front!
of!the!shop.!

Conclusion&
According!to!the!compara=ve!analysis,!Chop!Yan!Tuck!Medical!Hall!in!Seremban!is!more!
commercially! successful! as! compared! to! Cze! Kong! Medical! Hall! and! Sundry! in! the! Cheras,!
Klang! Valley.! Cri=cal! analysis,! jus=fica=ons,! research! and! the! applica=on! of! economic!
principles!have!supported!this!statement.!!
First!of!all,!there!are!more!types!of!herbs!sold!in!Chop!Yan!Tuck!Medical!Hall!than!in!Cze!
Kong! Medical! Hall! and! Sundry.! The! fact! is! that! some! of! the! herbs! sold! in! Chop! Yan! Tuck!
Medical! Hall! are! more! expensive! compared! to! Cze! Kong! Medical! Hall! and! Sundry! because!
those!herbs!are!more!rare.!Even!though!the!business,!Chop!Yan!Tuck!Medical!Hall!is!more!on!
the!tradi=onal!side!in!terms!of!its!outlook!of!its!shop!and!the!method!of!handling!the!herbs,!
this!business!is!more!successful!than!the!more!modern!Cze!Kong!Medical!Hall!and!Sundry.!The!
business’! annual! revenue! figure! of! Chop! Yan! Tuck! Medical! Hall! is! stated! to! be! higher! in!
comparison!to!Cze!Kong!Medical!Hall!and!Sundry.!!
The!strategic!loca=on!of!Chop!Yan!Tuck!Medical!Hall!had!result!in!the!increase!of!the!
amount!of!customers.!Chop!Yan!Tuck!Medical!Hall!is!more!assessable!than!Cze!Kong!Medical!
Hall!as!it!is!located!at!the!city!town!of!Seremban.!On!the!other!hand,!Cze!Kong!Medical!Hall!
that!is!located!at!the!corner!of!the!street!tends!cause!inconvenience!to!customers.!Hence,!the!
approximate!number!of!customers!who!visit!Chop!Yan!Tuck!Medical!Hall!daily!is!way!more!
than!the!customers!who!go!to!Cze!Kong!Medical!Hall!and!Sundry.!There!are!even!are!tourists!
who!visit!Chop!Yan!Tuck!Medical!Hall!to!purchase!Chinese!herbs.!For!Cze!Kong!Medical!Hall!
and! Sundry,! their! customers! are! mostly! residents! staying! nearby.! As! straighporward! as! it!
looks,!more!customers!would!generally!result!in!an!increase!in!revenue.!Hence,!the!amount!of!
profit!generated!for!Chop!Yan!Tuck!Medical!Hall!would!be!higher.!A!high!profit!is!a!good!sign!
for!the!business!economically!and!has!proven!to!be!doing!well.!
Another!reason!why!Chop!Yan!Tuck!Medical!Hall!is!more!commercially!successful!than!
Cze! Kong! Medical! Hall! and! Sundry! is! because! Seremban! has! a! limited! number! of! Chinese!
herbal!firms!around.!Fewer!Chinese!herbal!firms!in!Seremban!led!to!the!firms!to!have!more!
customers.! On! the! other! hand,! Klang! Valley! has! more! Chinese! herbal! firms! available! so!
customers!would!have!a!wider!variety!of!firms!to!choose!from.!

Bibliography&
C.Wiart!(2009).!Medicinal!Plants!From!the!East.!United!Kingdom:!Noongham!University!Press.!
No!author.!(2009).!Malaysian!Herbal!Monograph!Volume!2.!Kuala!Lumpur:!Forest!Research!
Ins=tute!Malaysia.!
Thomas!S.C.Li!(2009).!Chinese!and!Related!North!America!Herbs:!Phytopharmacology!and!
Therapeu=c!Values!Second!Edi=on.!United!Stated:!Taylor!and!Francis!Group.!
W.!Craig!Dodd!Esq.!(1996).!A!Gid!Of!Health:!A!Garden!of!Herbal!Remedies.!Singapore:!New!
Holland!(Publishers)!Ltd.!

Interview&QuesUons&&&Answers&
Brief&DescripUon&of&the&Businesses&c&Cheras&
i) Their&names&
Cze!Kong!Medical!Hall!and!Sundry!
ii) Current&locaUons&
Taman!Midah!
iii) Number&of&branches&and&employees&
No!branches!and!3!employees.!
iv) Main&products&or&services&sold&
Herbs!and!sundry!
v) EsUmated&current&number&of&customers.&&
50!customers!per!day!
vi) When&was&the&business&started?&&
2000!
vii) Who&are&the&founders?&&
Mr.!Liew!Cze!Kong!
viii) What&was&their&moUve(s)&for&starUng&the&business&
To!earn!a!living!in!order!the!support!the!family.!Also,!the!owner!wanted!to!use!its!own!
strength!to!try!to!improve!the!health!of!the!neighbourhood!as!well!as!a!small!contribu=on!
towards!the!society.!

ix) Their&recent&development&&
(i.e.&what&has&the&business&accomplished&or&what&changes&have&occurred&in&the&business&
over&the&past&3&c&5&years).&&&
Their!business!had!become!one!of!the!most!popular!herbal!shop!in!the!neighbourhood!.!
They!had!also!gained!some!regular!customers!whom!constantly!support!them!for!the!past!
15!years.!!For!the!recent!development,!the!shop!had!just!included!computer!system!due!to!
the! establishment! of! GST! by! the! government.! They! had! also! replace! a! new! refrigerator!
with!the!old!one!and!installed!CCTV!control!system.!
ComparaUve&Analysis&of&the&Businesses’&CompeUUve&Traits&
i) Number&of&compeUtors&in&their&respecUve&geographical&markets&
3!
ii) Besides&business&compeUtors,&what&others&challenges&faced&
The! changes! of! price! of! the! herbs! in! the! market.! The! number! and! age! range! of! the!
residents!in!Taman!Midah!is!also!a!challenge.!The!next!one!would!be!the!geographical!
loca=on! of! the! shop.! The! requirement! established! by! the! government! is! another!
challenge.!In!addi=on,!the!quality!and!quan=ty!of!the!products!available!in!the!market!
serves!as!another!challenge.!
iii) Brief& bios& of& each& business’& top& 3& compeUtors& (E.g.& who& are& they?& What& are& their&
products?&etc.)&
1. Eu!Yan!Sang!@!Located!opposite!the!shop,!sells!herbs!and!supplement.!
2. Kim!Loy!Tradi=onal!Medical!Hall!and!Sundry!@!Located!beside!the!shop,!sells!herbs!and!
sundry.!
3. Ban!Soon!Heng!Trading!@!Located!beside!the!shop,!selling!herbs!and!sundry.!

iv) How& do& the& businesses& compete& with& their& compeUtors?& What& strategies& were/are&
employed&(e.g.&pricing,&adverUsing,&product&variety,&etc.)&and&how&successful&are&they?&&
They!always!have!promo=ons!on!certain!types!of!herbs.!They!will!increase!or!decrease!the!
price!of!their!products!according!to!the!market!price!and!also!set!at!lower!price!than!the!
other!shops!located!around!them.!They!will!check!on!their!products!regularly!and!later!will!
package!it.!Also,!they!will!check!the!freshness!of!the!herbs!in!order!to!maintain!the!quality!
of!their!products.!Moreover,!they!will!serve!the!customers!with!a!friendly!aotude!and!
always!remembers!to!put!their!customers!as!their!first!priority!so!that!their!customer!will!
feel!welcomed!whenever!they!go!to!the!shop.!These!strategies!are!indeed!successful!as!
they!are!able!to!maintain!their!good!image!and!ensure!that!the!quality!of!their!product!is!
good.!
v) What&are&the&obstacles&faced&by&new&businesses&who&wish&to&enter&their&markets&today?&
Are&they&easy&or&difficult&to&overcome?&Why?&&
For! them! who! wish! to! enter! their! markets,! they! should! be! physically! and! mentally!
prepared,!as!they!will!have!to!work!for!long!hours.!This!is!because!as!the!owner!of!the!
shop!they!have!to!be!responsible!and!they!must!always!be!in!their!shop!and!monitor!their!
employees.!Besides,!they!will!have!to!learn!and!memorise!the!names!of!the!herbs!and!the!
way!to!use!some!tradi=onal!apparatus.!Some!of!the!methods!include!packing!the!herbs!
using!paper!and!the!way!to!keep!and!clean!the!herbs.!They!should!also!build!up!a!new!
social! circle! where! it! consists! of! the! suppliers! of! the! herbs! and! sundry! as! well! as! the!
professional! who! can! determine! the! quality! of! the! herbs.! Moreover,! they! should! also!
observe!the!market!price!and!the!price!set!by!their!compe=tor.!Hence,!this!business!is!
more!suitable!for!those!who!are!more!experienced!in!the!herbal!market!as!it!can!be!a!very!
difficult!and!dull!task!if!one!is!not!interested.!
vi) What&is&the&nature&of&their&markets&(e.g.&perfectly&compeUUve,&oligopoly,&monopolisUc&
compeUUve)&and&your&jusUficaUons.&
The!nature!of!the!market!for!Cze!Kong!Medical!Hall!&!Sundry!is!monopolis=c!compe==on.!
There!are!a!number!of!businesses!selling!herbs!within!the!area.!Since!there!are!several!of!
these!firms!in!the!market,!the!barriers!to!entry!for!new!firms!are!rela=vely!weak.!Due!to!
having!mul=ple!firms!selling!almost!iden=cal!products,!the!compe==on!level!is!quite!high.!
Cze!Kong!Medical!Hall!&!Sundry!has!weak!pricing!power,!that!is!to!say!that!this!firm!is!a!
price!taker!whereby!the!price!is!affected!by!the!supply!and!demand.!!

APPENDIX&2:&Suggested&List&of&Interview&QuesUons&&&
1) Who&are&your&customers?&&
The!residents!in!the!nearby!neighbourhood!!
2) What&is&the&business’&annual&revenue&figure?&&
About!1.5million!
3) Is& the& business& constantly& facing& strong& compeUUon& from& other& compeUtors?& What&
strategies&have&they&used&to&compete&with&you?&&
Yes.!They!had!hung!lot!of!banners!outside!their!shop!as!a!form!of!adver=sement!to!abract!
their! customer’s! aben=on.! They! also! decrease! the! price! of! their! products! and! provide!
more!variety!of!products!in!their!shop.!Besides,!some!of!them!installed!air@condi=oning!
service!into!the!shop!to!create!a!more!comfortable!ambience.!
4) How& much& capital& is& required& to& start& this& business?& What,& if& any,& specialized& field& of&
knowledge&do&you&need&to&run&this&business?&&
About!60@80!thousands!Ringgit!is!needed!nowadays!to!start!this!business.!A!lot!of!specific!
knowledge!is!required!to!run!this!business.!First!of!all,!one!must!memorise!the!names!of!
the!herbs!and!must!be!familiar!with!the!tradi=onal!way!to!prepare!as!well!as!measure!and!
pack!the!herbs.!Besides,!one!must!also!be!updated!to!the!latest!market!price!and!must!be!
able!to!differen=ate!between!the!good!and!bad!quality!of!the!herbs.!
5) Generally,&do&you&feel&it&is&easy&or&hard&to&enter&this&market?&Why?&&
I!think!it!will!be!easier!if!you!are!very!interested!in!this!market.!This!is!because!you!need!to!
work!for!long!hours!and!you!have!to!manipulate!some!specific!technique!in!this!market.!
6) How&do&you&compete&with&your&compeUtors&i.e.&what&strategies&do&you&employ&to&divert&
customers&away&from&your&compeUtors?&&
I!work!with!a!very!polite,!honest!and!sincere!aotude.!I!will!always!try!my!best!to!makes!
my!customers!feel!comfortable!when!they!walk!into!my!shop.!I!will!set!the!most!valuable!
price!for!the!products!and!always!maintain!the!quality!of!my!products.!I!do!not!do!any!sort!
of!adver=sing.!My!form!of!adver=sement!is!through!words!of!mouth!from!my!customers.!
By! having! this! kind! of! aotude! towards! my! business,! my! customer! can! feel! that! our!
products!are!trustworthy!and!worth!buying.!!

7) How&onen&do&you&release&a&new&product&(this&assumes&the&business&sells&diﬀerenUated&
products)?&&
I! will! release! a! new! product! depends! on! the! requirement! of! my! customers.! I! will! also!
constantly! observe! the! trend! in! this! market! to! decide! on! the! products! that! I! should!
release.!!
8) Are&your&pricing&decisions&strongly&aﬀected&by&your&compeUtors?&
Yes.!In!order!to!compete!with!the!other!herbal!shops!I!need!to!survey!on!the!pricing!trend!
in! the! area! nearby! me.! Also,! I! want! to! give! my! customers! the! most! valuable! and! fair!
pricing.!

Brief&DescripUon&of&the&Businesses&c&Seremban&
i) Their&names&&
Chop!Yan!Tuck!Medical!Hall!
ii) Current&locaUons&
9,Jalan!Datuk!Abdul!Rahman.!
iii) Number&of&branches&and&employees&
No!branches!and!11!employees.!
iv) Main&products&or&services&sold&&
Up!to!1000!types!of!Chinese!herbs.!!
v) EsUmated&current&number&of&customers.&&
100!pax!per!day!
vi) When&were&the&businesses&started?&&
In!the!year!1944!
vii) Who&are&the&founders?&&
Mr.Chong!Ngai!Loong’s!(retailer!of!the!shop)!grandfather!
viii) What&was&their&moUve(s)&for&starUng&the&business&
Mr.Chong!Ngai!Loong’s!grandfather!worked!in!Eu!Yan!Sang!before.!He!learnt!a!lot!of!
knowledge!about!Chinese!herbal!shop.!As!such,!he!decided!to!start!his!own!Chinese!
herbs!business!in!order!to!support!the!expenses!of!his!growing!son.!He!also!wanted!to!
introduce!the!high!quality!herbs!to!the!people!in!Seremban.!

ix) Their&recent&development&&
(i.e.! what! has! the! business! accomplished! or! what! changes! have! occurred! in! the!
business!over!the!past!3!@!5!years).!!
Mr.Chong! Ngai! Loong’s! father! had! just! passed! the! business! to! his! brother! Mr.Chong!
Ngai! Soong.! The! new! owner! is! more! outgoing! and! young;! he! had! request! a! license!
pharmacist! to! help! out! in! his! shop.! Hence,! the! shop! became! more! professional! and!
eventually!the!business!improved.!Moreover,!computer!system!is!also!implemented!in!
the!shop!ever!since!GST!started!in!1!April.!!!
ComparaUve&Analysis&of&the&Businesses’&CompeUUve&Traits&&
i) Number&of&compeUtors&in&their&respecUve&geographical&markets&
4!
ii) Besides&business&compeUtors,&what&others&challenges&faced&
A!lot!of!new!rules!from!the!government!were!implemented.!The!government!wanted!all!
of!the!employees!in!herbal!shop!to!go!for!a!speciﬁc!course!so!they!are!always!up!to!
date.!Moreover,!herbal!shops!are!also!required!to!sell!their!items!in!a!more!presentable!
package!to!replace!the!tradi=onal!packaging.!Besides,!herbal!shops!are!also!required!to!
improve! their! hygiene! by! ensuring! that! the! employees! in! the! shop! wear! gloves! and!
bouﬀant!cap!all!=me!and!the!shop!should!be!air@condi=oned!for!hygienic!purposes.!
iii) Brief&bios&of&each&business’&top&3&compeUtors&&
(E.g.!who!are!they?!What!are!their!products?!etc.)!
1. Eu!Yan!Sang!–!Sells!mainly!herbs!of!their!own!produc=on!
2. Cheoon!Lin!@!Sells!herbs!and!liquor!
3. Lifecare! Chinese! Medical! Centre! –! Provides! consulta=on,! prescrip=on! and! sells!
herbs.!

iv) How&do&the&businesses&compete&with&their&compeUtors?&What&strategies&were/are&
employed& (e.g.& pricing,& adverUsing,& product& variety,& etc.)& and& how& successful& are&
they?&&
So!far,!the!business!is!geong!more!successful!compared!to!the!past.!This!is!because!
they! are! selling! beber! grade! of! herbs! that! shows! a! huge! difference! as! compared! to!
herbs!of!second!grade.!Moreover,!they!also!provide!the!customers!with!good!service!
and!make!the!customers!feel!welcomed.!Lastly,!their!strategies!in!adver=sing!do!not!
involve! adver=sement! but! only! from! the! recommenda=on! between! customers! that!
they!believe!is!more!useful!than!self@adver=sing.!!
v) What& are& the& obstacles& faced& by& new& businesses& who& wish& to& enter& their& markets&
today?&Are&they&easy&or&difficult&to&overcome?&Why?&&
The!level!of!difficulty!is!actually!depends!on!the!individual!who!is!going!to!start!a!new!
business!in!this!market.!Firstly,!they!have!to!have!keen!interest!in!Chinese!herbs!as!they!
have!to!spend!a!lot!of!=me!learning!and!memorising!the!names!and!the!characteris=cs!
of!the!herbs.!Next,!they!have!to!be!able!to!tolerate!with!long!working!hours!to!look!ader!
the! shop! and! the! herbs.! It! is! also! tough! to! enter! due! to! the! process! of! obtaining! a!
license.!Every!type!of!Chinese!herbs!requires!its!own!license.!To!start!up!a!new!Chinese!
herbal!medicine,!a!huge!amount!of!capital!is!required.!Moreover,!they!have!to!choose!a!
strategic!loca=on!so!that!their!shop!can!be!easily!accessed!and!no=ced.!Other!than!that,!
family! support! and! luck! are! also! some! criteria! that! is! essen=al! in! order! to! start! a!
successful!business.!!
vi) What&is&the&nature&of&their&markets&
(e.g.& perfectly& compeUUve,& oligopoly,& monopolisUc& compeUUve)& and& your&
jusUficaUons.&&
The!nature!of!the!market!for!Chop!Yan!Tuck!Medical!Hall!is!oligopoly!compe==on.!This!
business!is!opera=ng!in!a!market!structure!dominated!by!very!few!Chinese!herbs!seller!
in! the! market.! All! of! these! businesses! are! selling! products! that! are! similar! but! not!
iden=cal.!In!this!oligopoly!market,!there!are!strong!barriers!to!entry!for!new!firms.!Since!
there!only!a!small!number!of!firms!in!the!market!and!there!is!minimal!compe==on,!
Chop!Yan!Tuck!Medical!Hall!has!rela=vely!strong!pricing!power.!

APPENDIX&2:&Suggested&List&of&Interview&QuesUons&
1) What&are&your&main&products?&&
Wide!range!of!herbs!of!high!quality!!
2) Who&are&your&customers?&
Most!of!our!customers!are!from!genera=on!to!genera=on!star=ng!from!year!1944!!
3) What&is&the&business’&annual&revenue&ﬁgure?&&
RM2!million!and!above!
4) Can&you&provide&us&a&brief&history&of&your&business&and&its&most&recent&developments?&
This!business!is!actually!a!family!business.!My!grandfather!was!the!one!who!started!this!
business!as!he!worked!in!Eu!Yan!Seng!before!and!he!acquired!knowledge!about!Chinese!
herbs!during!his!working!period.!Ader!that,!he!decided!to!start!his!own!business,!as!he!
wanted!to!support!his!own!family!as!well!as!him!having!the!eagerness!to!introduce!high!
quality!herbs!to!the!people!in!Seremban.!Upon!his!interest!and!strong!bond!with!Chinese!
herbs,!he!also!wanted!to!contribute!to!the!society!by!providing!the!best!consulta=on!for!
Chinese!herbs!in!Seremban.!Ader!my!grandfather!has!passed!away,!my!brother,!Chong!Ngai!
Soong! took! over! the! business! and! developed! the! shop! into! a! more! technological! and!
implement!more!strategies!in!order!to!complete!with!the!Chinese!herbal!shops!around!us.!
The! most! recent! developments! in! our! shop! include! the! implementa=on! of! computer!
system!and!CCTV!security!system.!
5) Is& the& business& constantly& facing& strong& compeUUon& from& other& compeUtors?& What&
strategies&have&they&used&to&compete&with&you?&&
The!compe==on!in!this!area!is!actually!quite!compe==ve!as!there!are!more!than!4!other!
herbal! shops! around! our! shop! within! 200m.! Some! of! them! adver=se! by! hanging! large!
banners!to!abract!customers’!aben=on!while!some!of!them!will!distribute!brochures!and!
vouchers.!There!are!also!shops!that!are!having!sales!from!=me!to!=me!by!giving!discount!to!
the!customers.!Some!will!choose!to!sell!lower!quality!herbs!so!that!they!can!lower!down!
the!price!and!compete!with!the!other!herbal!shops.!

6) How& much& capital& is& required& to& start& this& business?& What,& if& any,& specialized& field& of&
knowledge&do&you&need&to&run&this&business?&&
Half!a!million.!Knowledge!in!Chinese!herbs.!
7) How&onen&do&you&release&a&new&product?&&
(This&assumes&the&business&sells&differenUated&products)&
We!already!have!more!than!1000!types!of!different!herbs!so!the!new!products!we!released!
are!mostly!ready@made!product!such!as!Panadol!and!sour!plum.!
8) Are&your&pricing&decisions&strongly&affected&by&your&compeUtors?&
Our!pricing!decisions!are!seldom!affected!by!our!compe=tors!but!mostly!affected!by!the!
market!price!and!the!supply!and!demand!in!the!market.!The!herbs!that!can!be!found!easily!
in!the!market!for!instance,!Angelica!Sinensis!!(Dang!Gui)!is!sold!in!a!lower!price.!Oppositely,!
the!herbs!that!are!considered!rare!in!the!market!will!be!sold!in!a!rela=vely!higher!price.!

Appendix&
This! appendix! is! a! compila=on! of! interview! documents! and! photos! of! both! Chinese! herbal!
medicine!halls.!It!also!includes!informa=on!of!their!respec=ve!compe=tors!that!were!recorded!in!
the!process!of!inves=ga=ng,!analyzing!and!comparing!both!of!the!businesses.!
(a)Cze!Kong!Medical!Hall!&!Sundry,!Cheras,!Klang!Valley.!
!
 
Interior!view!of!the!shop.
Front!view!of!the!shop.

!
 
A!group!photo!taken!with!Mr.!Liew!ader!the!interview!session.
Founder/Owner!of!Cze!Kong!Medical!Hall!&!Sundry:!Liew!Cze!Kong

Products&&
 
Sundry!items!are!also!available.Pre@packaged!herbs!are!sold!as!shown!
above!or!according!to!the!amount!
that!the!customers!want.
Drawers!ﬁlled!with!Chinese!herbs.!Each!
drawer!is!labeled!with!the!name!of!the!
herb.
Rows!of!herbs!neatly!arranged!on!the!
shelves.
Rare!herbs!are!also!sold!there.Self!packaged!herbs.

(b)&Chop&Yan&Tuck&Medical&Hall&
 
Close!up!view!of!Chop!Yan!Tuck.
Tons!of!small!drawers!for!the!storage!of!herbs!
and!packaged!products!displayed!to!be!sold.
Interior!view!of!Chop!Yan!Tuck.
Front!view!of!Chop!Yan!Tuck.

s 
Working!desk!and!a!cupboard!
consis=ng!of!informa=on!about!
the!various!types!of!Chinese!
herbs.
Mr.!Chong,!a!retailer!in!Chop!Yan!Tuck. A!group!photo!taken!with!Mr.!Chong!and!his!brother!
who!is!the!owner!of!the!shop.
The!wooden!drawers!for!the!placement!of!
Chinese!herbs!create!a!tradi=onal!
atmosphere.!

Products&and&Services&provided&
!
 
The!workers!are!weighing!the!amount!of!
herbs!that!the!elderly!wants!to!purchase!
using!a!tradi=onal!weighing!scale.
Chop!Yan!Tuck!has!a!‘sensei’!(Chinese!
doctor)!that!provides!consulta=on!and!
would!prescribe!the!herbs!to!the!
pa=ent.!The!method!of!consulta=on!is!
the!tradi=onal!pulse!diagnosis.!
Ader!weighing!the!herbs,!the!herbs!are!
packed!into!a!clear!plas=c!by!using!a!
piece!of!paper!to!act!as!a!funnel.
Commercialized!Chinese!
medicine!products!are!
available!as!well.
Other!herb!sold.White!ginseng!is!one!of!
their!popular!products.

Minutes&of&MeeUng&1&
Apendees:&
Minutes:&
Date: October!21,!2015
Time: 9.00pm@10.30pm
Venue: Online!Skype!Discussion
Names&of&Group&Members Tutorial&Group Role
Yeap!Phay!Shian Friday!8.00am Leader
Lee!Yet!Yee Monday!12.00pm N/A
Madeline!Liew!Zhi!Qi Wednesday!2.00pm N/A
Heng!Sy!Hua Monday!12.00pm N/A
Tam!Zhao!Wei! Wednesday!2.00pm N/A
No. AcUvity AcUon&Taken&By Details
1 Introduction Yeap Phay Shian Brieﬁng of the assignment tasks and
submission requirements.
2 Research All Members Research on interesting business to focus on.
3 Discussion All Members Discussed on what business to focus on. All
members gave opinions and suggestions.
4 Voting Session All Members A few options been given by group members.
All members get to vote the most suitable
choice of all.
5 Conclusion Yeap Phay Shian Concluded all discussion and decision made.
Conﬁrm next meeting session.
6 End All Members Meeting adjourned.

Apendees:&
Minutes:&
Time: 3.00pm@4.00pm
Venue: Event!Hall!1,!Taylor’s!University!Library
1 Introduc=on Yeap!Phay!Shian Briefing!on!mee=ng!topics!and!assigned!
works.
2 Research All!Members Research!in!common!interview!ques=ons!
and!how!Tradi=onal!Chinese!Medical!had!
been!conducted.
3 Discussion All!Members • Discussed!on!the!interview!ques=ons.!
Then,!the!final!set!of!interview!
ques=ons!have!been!concluded!
• Decide!on!the!interview!dates!
• Delegate!works!for!the!interviews
4 Making!appointment Madeline!Liew!
Lee!Yet!Yee
Madeline!and!Yet!Yee!made!appointments!
with!the!interviewees!at!on!October!30,!
2015!respec=vely!in!the!adernoon!and!at!
night.
5 Plan!I=nerary All!Members Planed!the!i=nerary!for!the!interviews.
6 Delega=on!of!Work Yeap!Phay!Shian Delegated!different!jobs!to!all!members!
evenly!in!order!to!ensure!smooth!
interview!session.!
7 Conclusion Yeap!Phay!Shian Recap!on!all!discussed!maber.!
8 End All!Members Mee=ng!adjourned.

Table&2.1&Roles&and&DuUes&for&Both&the&Interviews&at&Cheras&and&Seremban&
Table&2.1&IUnerary&for&the&Interview&Session&at&Cheras,&Klang&Valley.&
Group&Members Roles
Yeap!Phay!Shian
• Leader!
• Record!informa=on!
• Interviewer
Lee!Yet!Yee
• Take!photos!
• Video!recorder!
• Interviewer
Madeline!Liew!Zhi!Qi
• Interviewer!
• Record!informa=on
Heng!Sy!Hua
• Interviewer!
• Take!photos
Tam!Zhao!Wei!
• Interviewer!
• Record!informa=on!
• Take!photos
Time AcUvity
12:30PM Gather!at!Taylor’s!University!and!ﬁnal!brieﬁng!before!the!
interview.
1:00PM Depart!Taylor’s!University.
1:30PM • Reached!Cze!Kong!Medical!Hall!&!Sundry.!!
• Observed!the!shop’s!surroundings.!
2:00PM Interview!session!with!Mr.!Liew!Cze!Kong,!the!founder!of!Cze!
Kong!Medical!Hall!&!Sundry.
2:45PM • Group!photo!with!Mr.!Liew.!
• Photo!taking!of!the!exterior,!interior!and!products.
3:00PM • Depart!Cze!Kong!Medical!Hall!&!Sundry.

Table&2.1&IUnerary&for&the&Interview&Session&at&Cheras,&Klang&Valley.&
Time AcUvity
7:20PM Gather!at!Lee!Yet!Yee’s!house.
7:30PM Depart!Lee!Yet!Yee’s!house.
7:50PM Reached!KFC!for!the!interview!session.!!
(The!reason!behind!the!choice!for!this!interview!loca=on!is!
because!Chop!Yan!Tuck!Medical!Hall!is!located!nearby!the!night!
market.!This!would!disrupt!the!interview!session!due!to!the!noise!
caused.)
8:00PM Interview!session!with!Mr.!Chong!Ngai!Loong,!the!retailer!of!Chop!
Yan!Tuck!Medical!Hall.
9:00PM Depart!KFC

Apendees:&
Minutes:&
Date: October!30,2015
Time: 3.00pm@4.00pm
Venue: Keretapi!Tanah!Melayu!(KTM)
1 Introduc=on Yeap!Phay!Shian A!short!brieﬁng!on!the!assigned!work.
2 Discussion All!Members • Revised!on!the!informa=on!gathered!
• Analyse!and!interpret!the!informa=on!
gathered
3 Research All!Members Further!researches!had!been!conducted!
as!to!support!the!informa=on!gathered.
4 Giving!Sugges=ons All!Members All!members!sound!out!their!
recommenda=ons!to!improve!the!
business!of!Cze!Kong!Medical!Hall
5 Announcement Lee!Yet!Yee There!was!a!change!in!plan!with!the!
interviewee.!The!on@site!observa=on!of!
the!shop!was!postponed!to!the!following!
day!ader!the!interview!session.
6 Conclusion Yeap!Phay!Shian Recap!on!all!discussed!maber.!
7 End All!Members Mee=ng!adjourned.

Apendees:&
Minutes:&
Time: 11.00am@12.30pm
Venue: Lee!Yet!Yee’s!house
1 Introduc=on Yeap!Phay!Shian A!short!brieﬁng!on!the!assigned!work.
2 Discussion All!Members • Revised!on!the!informa=on!gathered!
• Analyse!and!interpret!the!informa=on!
gathered!
• Select!and!edit!the!best!photos!to!be!
inserted!in!the!research!report
3 Research All!Members Further!researches!had!been!conducted!
as!to!support!the!informa=on!gathered.
4 Giving!Sugges=ons All!Members All!members!sound!out!their!
recommenda=ons!to!improve!the!
business!of!Chop!Yan!Tuck!Medical!Hall
5 Delega=on!of!Work Yeap!Phay!Shian Works!including!the!presenta=on!slides,!
research!report!and!the!video!were!
distributed!evenly!to!all!members.
6 Conclusion Yeap!Phay!Shian • Recap!on!all!discussed!maber!
• Conﬁrmed!dates!to!start!work!
7 End All!Members Mee=ng!Adjourned.

References&&
Annie!Wu!(1998@2015).!The!History!of!Chinese!Medicine.!Retrieved!from!website:!!!!!!!!!!
!hbp://www.chinahighlights.com/travelguide/chinese@medicine/history.htm!
Australian!Acupuncture!&!Chinese!Medicine!Associa=on!LTD!(AACMA)!(2015).!Retrieved!from!!!!
website:!hbp://www.acupuncture.org.au/health_services/chinese_herbal_medicine.aspx!
Cze!Kong!Liew,!personal!communica=on,!30!October!2015.!
Jo!Whitehead.!(2011).!What$You$Need$to$Know$About$Strategy.!United!kingdom:!!Capstone!
Publishing!Ltd.!
Ngai!Loong!Chong,!personal!communica=on,!31!October!2015.!
Penelope!Ody.!(2010).!The$Chinese$Medicine$Bible!.!London:!Octopus!Publishing!Group!Ltd!2010.!
Ping@Chung!Leung,!Charlie!Changli!Xue,!&!Yung@Chi!Cheng.!(2003).!!A$Comprehensive$Guide$to$
Chinese$Medicine.!Singapore:!World!Scien=ﬁc!Publishing!Co.!Pte.!Ltd!!
Research!Gate!(2008@2015).!Retrieved!from!website:!hbp://www.researchgate.net/publica=on/
272747903_Tradi=onal_Chinese_Medicine_(TCM)_treatment_in_Malaysia_Preliminary_ﬁndings_o
n_Country_of_Origin_and_Image!
Vengedasalm,!D.!&!Madhavan,K.!(2010).!Oligopoly.!Principles!of!Economics.!Oxford!University!
Press.!
William!Koh!(2012).!The!Eu!Yan!Sang!way:!Renewing!a!Century!of!Heritage.!Singapore:!Cengage!
Learning!Asia!Pte!Ltd.!

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