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Assignments: A comparative analysis of 2 businesses of similar industry in different
geographical locations
Report title: Factories
Group members:
Names: Roles:
JOSEPH SOH (0323887) -Contact the interviewee
-Video recorder
LOH WEN JUN (0323551) -In charge of interview
-Report writing
TAN JIT KIM (0323854) -Report editor
-Information collector
TEH WEI HONG (0323743) -Video editing
-Designing covers
THOMAS TING SHII KAI (0323962) -Organizing roles
-Report editor
CAROL TANG NGIE BING (0323963) -Slides designer
-Gather information (slides)
CHRISTINA CHUA YI MEI (0323859) -Prepare questions
-Slides designer
English 2 (ELG30605)
Lecturer: Mr GopiGhantan Mylvaganam
Submission and presentation date: 15 January 2016
2 | P a g e
Table of Content:
No: Title: Page
Number:
1 Key Summary 3
2 Descriptions of the history of the trade 4
3 Descriptions of the businesses 5-13
4 Comparative analysis of competitive traits 14-20
5 Recommendation 21-22
6 Appendices 23-30
7 Bibliography 31
8 References 32
3 | P a g e
Key Summary:
Based on our research, LED lightings are quite advantageous and safe to the
environment. We have chosen two particular businesses, Nitto Optotronics in
Puchong, Selangor and Opto Semiconductor in Taiping, Perak. Both have a similar
advantage, which give a greener environment. With eco-friendly usage, they believe
that a green practice represents the future which is essential to all businesses in order
to achieve sustainable and profitable growth. They managed to find a more unique
way by using LED lightings to support energy efficiency and make lesser carbon
emission to environment as LED generates lesser heat and more lights compare to
normal lightings.
(102 Words)
4 | P a g e
Description of history of trade:
Light is the element and the essence of life. As human being, we practically
uses light almost all the time, it is ubiquitous to us. Light helps to improve our vision
especially during the dark, it serves as an aid to help us see better in life.
As technology is getting better and more advance, LED lights are being
introduced to the market due to its energy conserving feature as compared to other
normal lightings which lacks in the efficiency. For example, making lights we need
plastic and resources underneath the earth such as petroleum in order to make it. Not
only that, we will also need power supply to light it up. Therefore, by using the
advances of this technology, it will have longer lifespan and could save the power
needed to light it up. To relate this, power from 36 watts for normal lightings, LED lights
only need 18 watts of power supply. It also generates a brighter and clearer view. At
the same time, it serves as a safety measure as human can see much better as LED
lightings lights up instantly when switched on.
Instantaneously, LED lightings also have a difference between normal lightings
as LED generates 80 percent of lights and 20 percent of heat and for normal lightings,
they would generate 80 percent of heat and 20 percent of light. As for this situation, it
will be a waste on heat than getting more lights. This will also be energy efficient as
without releasing much heat to the surrounding, it will be much cooler to the
surrounding even though when the LED lights are turned on for longer period of time.
Without heat, we can actually save a lot of things such as reducing the cooling time in
a room and reducing the carbon emission which is harmful to humans and
environment.
However, purchasing LED lightings will cost a higher price than the other
lightings due to the advance of the technology. But consider in a long-term usage, it
will reduce the cost compare to normal lightings such as current saving and
maintenance of the lightings.
Nowadays, LED lightings can be purchase everywhere but there is several
types or grades of LED lightings that could generates a brighter light but could not last
long or the other way round. This type of LED will use more energy as brighter bulbs
use more power supply compared to the other LED lights. That is to say competition
occurred and they have to make a lower cost LED with potential as LED lightings can
last a longer period of time, greener to environment and bright enough.
5 | P a g e
Description of business:
The research of this assignment is based on the analysis of two-auto semiconductor
business. Both of the companies are located about 350 km away from each other.
Nitto Optotronics is located in the city of Puchong, Selangor and Opto Semiconductor
is located in Taiping, Perak.
Location of 1st company, Nitto Optotronics:
Location of 2nd company, Optotronic Semiconductor:
6 | P a g e
Company 1: Nitto Optotronics
Location: B-6F-05, IOI Boulevard, Jalan Kenari 5, Bandar Puchong Jaya, 47170
Puchong, Selangor
Number of branches: 2
Number of estimated employees: 500
Main service: General lighting
Estimate current number of customers: 25
Business started: Since 2010
Founders: Group of Consortium
Motive for starting the business: Going green and eco-friendly to a greener
environment
Recent development: Ikano shopping centre
Changes: More type of lightings and streetlights, from down-lights to high bay lights
7 | P a g e
LED lighting products from Nitto Optotronics:
There are varieties of LED lightings, which is used for different purposes. Each type
of LED lightings serves different functions.
1.NITTO LED STREET LIGHT
-Power consumption: 80w, 120w, 160w, 200w, 240w, and 280w
Beam angle: Type 2 & 3
Input voltage: AC 100 ~ AC305
Power factor: More than 0.95
Efficiency: More than 90
Weight (kg): 8.3, 9.5, 10.7, 11.9, 15.0, and 16.3
Operation temperature: -40`C~50`C, 10%~90% RH
2.NITTO LED HIGHBAY LIGHT
-Power consumption: 100w and 150w
Beam angle: 35’, 60’ and 90’
Input voltage: AC 100~AC 305
Power factor: 0.99, 110 Vac and 0.96, 220 Vac
Efficiency: More than 90%
Weight: 2.40 kg
Operation temperature: -30’C~60’C
3.NITTO LED FLOOD LIGHT
-Power consumption: 100w and 150w
Beam angle: 35’, 60’ and 90’
Input voltage: AC 100~AC 305
Power factor: 0.99, 110 Vac, 0.96, 220 Vac
Efficiency: More than 90%
Weight: 2.4 kg
Operation temperature: -30’C~60’C
8 | P a g e
4.NITTO LED ROUND DOWNLIGHT
-Power consumption: 3w, 5w, 7w, 9w, 12w, 16w, 20w, 24w and 30w
Beam angle: 90’
Input voltage: AC 85`265V
Efficiency: More than 90%
5.NITTO LED LIGHT BULB
-Power consumption: 5w, 5w-D, 7w, 7w-D and 10w
Beam angle: 335’
Input voltage: AC 10~AC 265V
Efficiency: More than 85%
6.NITTO CHROMO-SPOT LIGHT
-Power consumption: 4.5w, 7w
Beam angle: 45’
Input voltage: AC/ DC 12V
Efficiency: More than 85%
9 | P a g e
Nitto Optotronics:
This is the main branch of Nitto’s company, where it is located at IOI Boulevard,
Puchong. It is an office and the place where LED lights are displayed.
The LED lighting display:
The LED lights are displayed so that customers can have a look and know more detail
about the LED lightings that customers want to purchase. LED light can be switched
on to compare the brightness with normal lightings.
10 | P a g e
Company 2: Optotronics Semiconductor
Location: Lot 10563, Jalan Perusahaan 3, Kemunting Industrial Estate, 34600
Kamunting Perak
Number of branches: 3
Number of estimated employees: 650
Main service: Automotive semiconductor
Estimate current number of customers: 2
Business started: 16 years ago
Founder: Group of Consortium, a few people took over 5 years
Motive for starting the business: Specific players, clean and strategic
Recent development: Automotive lights for Toyota car and LED modules for alarm
system
Changes: Highly automated line service by using robot and reduce the number of
labour cost
11 | P a g e
Type of LED products from Optotronics Semiconductor:
The types of LED chipset are solid-state lighting, semi-conductor chip, no filament gas
or mercury.
-The contract manufacturing service provider specializes in semiconductor based
activities from package assemblies to light modules.
Automotive Rear Lighting:
LED chipset that are manufactured in the factories are then placed in the car rear
lights. These lights include brake lights and signal lights of cars. The LED has a longer
lifespan so that maintenance is less, brighter light produce and the time to produce the
light is faster compare to normal lighting. These ensures the safety of the other driver
especially driving during the night.
12 | P a g e
Philips Supply Chain Security:
Besides LED automotive lightings, other electronics appliances such telephones,
CCTV cameras and monitor are also applicable of using LED chipsets and LED
modules. The LED lights were created for installation in the electronics products as
shown below.
Implementation products:
• Background check
• Screening and validating
• CCTV & Alarm System
• Security Lock and Seal
• Procedural control
13 | P a g e
Facilities and capabilities:
These are the machine in the factory of the Optotronic Semiconductor industry. The
purpose is to produces LED chipset lights for automotive cars and other LED lights
modules for other products.
14 | P a g e
Comparatives analysis of business competitive traits:
Business 1: Nitto Optotronics
Nitto Optotronics is located in IOI Boulevard, Puchong. It encounters a few other
competitions. This is because other competitors realized the chances and
opportunities to earn profits in this area due to the high usage of LED lightings. With
the same products at different price range will cause more competitors but not the
quality of the products. In order to compete with other competitors, to compete they
would have to offer a lower price of the product but does not change in the quality of
the LED products.
15 | P a g e
Top 3 competitors:
The top 3 competitors of Nitto Optotronics are Philips, Osram and GE. They all sell the
same products of LED lightings but different type quality produce.
Competitor 1: Philips
Philips is located in Petaling Jaya. Lighting systems from Phillips help people feel
comfortable, productive and safe. They beautify spaces and transform environments.
Phillips lightings system combines with LED luminaries and digital controls that deliver
illumination experiences. Phillips lighting systems focuses on energy efficiency,
sustainability and operational cost reduction.
Competitor 2: Osram
Osram is also located in Petaling Jaya. Osram is one of the guiding lights especially
LED lightings in technological development and in the production of high quality
products. For the past four decades, the high tech company had been investing in
research and developing new products of LED lights on the technological cutting edge.
Semiconductor is standards in the field of illumination and visualization.
16 | P a g e
Competitor 3: GE
GE lighting is located in Sentral of Kuala Lumpur. GE’s LED solution is the choice
illumination for external environment and signage for Malaysia’s premier residential
development D’ island residence. The products that were specified are GE’s roadway
light system. The GE lighting brings an excellent quality to the development. GE
lighting also offers its client reduced cost and lowered on the environmental impact.
Strategies employed by Nitto Optotronics to compete with other
competitors:
To compete with other competitors, Nitto Optotronics factory had being producing the
LED lightings that are brighter, longer lifespan and varieties of grades than other
producer. Besides that, Nitto Optotronics also manufactured different variety of LED
lightings such as down lights, street light, downlights and round down light which is
explosion proof and is safer to be used.
By developing these products, Nitto Optotronics become more competitive compare
to the other businesses. To ensure that the LED lights are comfortable and beneficial
to the environment, Nitto Optotronics also produced lights that are energy efficiency,
longer lifespan and greener towards environment compared to other producer. Energy
efficiency is also one of the aims which Nitto Optotronics want to achieve at a higher
level. By using energy in the smart way, the LED lightings will release 20% heat and
80% even after switching it on for a long time comparing to normal lightings they will
be the other way around.
17 | P a g e
Business 2: Optotronics Semiconductor
Optotronics Semiconductor is located in Taiping, Perak. Since there are only a few
companies in the world that relate to this automotive semiconductor industry because
the safety standard for the automotive vehicles requirements are very high, there were
no competitors for that are qualifies for this business, which is creating semiconductor
for automotive vehicles. It can be considered that Optotronics Semiconductor is one
of the company in the list of automotive semiconductor companies in Malaysia that
involve in this industry.
18 | P a g e
Comparison between Nitto Optotronics and Optotronics Semiconductor
Similarities
TYPE OF LIGHTINGS LED
TARGET/ACHIEVEMENT Create LED lighting that have longer lifespan, brighter
and energy efficiency
INDUSTRY Manufacture from factory
FOUNDER Group of Consortium
STRATEGIES Tolerate the price and maintaining the quality
Differences and Contrast
Nitto Optotronics Optotronics Semiconductor
COMPETITORS 3 None
ESTABLISHED
YEAR
5 16
FIRST PLACE
COMPANY
ORIGIN
Yes No
NUMBER OF
BRANCHES
2 3
NUMBER OF
ESTIMATED
EMPLOYEES
500 650
NUMBER OF
CLIENTS
25 2
REVENUE OF
COMPANY
20 to 40 millions 60 to 70 millions
MOTIVE Going green and eco-friendly to
save environment
Being more safety, clean and
quality
HOW OFTEN
RELEASE NEW
PRODUCT
Every quarter of the year No new product
19 | P a g e
Obstacle faced by new businesses
Obstacle Information
Insufficient budget to
open a business
Starting a new business of manufacture factory required a
huge amount of money and could not gain much profit. It
is almost impossible to find a businessman who is willing
to lend money. Even if borrow money from bank loan, the
huge sum of money have to be returned to the bank. It
might take longer period of time until the money is
completely returned.
Competitors are
located everywhere
LED lighting are beneficial in Malaysia, especially many
places require LED lights to work. Due to the modern
technology, LED lights have been invented and many
competitors are selling their own LED lighting products.
They also offered a lower price to attract more customers.
Energy efficiency are also important for LED lights as it
save energy and greener to environment.
Certification of
production
Not all businesses could achieve this qualification as it is
based on the requirements. A company had to follow the
requirements, specification and guideline. This standard,
which applies to the requirement of quality management
system of a business. It is the model for quality assurance
in production, installation and services.
This obstacles and problems faced by new businesses having low chances to
overcome it, as it is based on high budget and they required a lot of sacrifices from a
businessman and bank loan.
20 | P a g e
Conclusion of Analysis
Based on what we had research between the 2 businesses, both company that
sell LED lights products are very competitive. Although one of the company sells
general LED lightings and the other company sells automotive LED lightings. Both the
company resources are set up with the same quality of LED lighting products. Since
Optotronic semiconductor industry had no competitive in Malaysia, it had been the
only business that involve in selling automotive semiconductor with high grades LED
products it had been a high profit and is high demand to the market. Automotive vehicle
could install the brake light and signal light with the use of Optotronic semiconductor
of LED products for a longer lifespan. It is also safer for other driver to notice that the
brake light and signal light of the vehicle especially during the night as it is brighter.
Although Nitto Optotronics had competitors which sell their own lighting design using
the LED products but Nitto Optotronic have variety of lightings and grades. Their
products have longer lifespan and more energy efficiency. These businesses had
been very competitive among each other and they would continuously compete to
achieve a higher profit and maintain the quality of their products.
21 | P a g e
Recommendations:
Business 1: Nitto Optotronics
CURRENT AREA OF
IMPROVEMENT
RECOMMENDATION
Not enough branches and
companies around.
Open more branches and companies of Nitto Optotronics
somewhere further than the current location. Maybe in
other states so that it is easier to travel to the nearest
factory.
Technology of internet
communication for selling
products and marketing
purpose are still inactive.
Advertise more of the LED products online especially
internet marketing and sell more of the products on the
website and published it and making online selling.
Not a good location since
its located on the highest
floor of the building making
it difficult for people to
notice it.
Before opening another branch of Nitto Optotronics,
choose a good location where it is beneficial to the
surrounding environment. Choose a place where it is
larger and easier for people to see and notice it. It is better
if it is located beside the roadway so that people would
pass through it and have a look.
22 | P a g e
Business 2: Optotronics Semiconductor
CURRENT AREA OF
IMPROVEMENT
RECOMMANDATION
Do not make market
much and did not have
much communication
through internet
Introduce more automotive semiconductor products to the
market so that the products will be more recognized in the
market and promote the LED products through the internet
to communicate with others. Effective communication is
also important for the company to improve the current
situation.
Cost had increased
causing the reduction of
buyers in the market
Try to tolerate the price of the products to increase the
number of buyers in the market and the profit earned.
Optotronic
Semiconductor only
have two customers
which is Toyota car and
Phillips Lumileds
Advertise and promote more of the LED products so that
other customer would want to use more of the automotive
semiconductor, which is energy efficient and brighter.
23 | P a g e
Appendices
Appendix 1: Survey questionnaires and answers
Date: 2 January 2016
Time: 12.30 pm
Location: Nitto Optotronics, IOI Boulevard, Puchong
Interviewed person: Mr. Loh Hoi San
Job position: Senior Sales Manager
Office phone number: +6013 – 80754377
INTRODUCTION
1) May I know your name?
-Mr.Loh
2) What is your position in this company?
-Senior sales manager
3) How long have you been working for this company?
-8 years
4) What is the full name of this company?
-Nitto Optotronics
HISTORY OF THIS COMPANY
5) When was this company first started?
-Since year 2010
24 | P a g e
6) How did this company first originated?
-By lighting
7) Who is the founder of this company?
-Group of Consortium
8) Is this the first place that the company originated from or it had been relocated?
-It is the first place and it has not been relocated
9) How many branch companies that your companies have?
-2, Bukit Minyak, Penang and Taiping Kamunting, Perak
10) How many employees in total are there?
-500 and above
11) Can you estimate the number of clients that you have now
-20 locals and 5 overseas
12) How much is the revenue your company generates per annum?
-Around 20 to 40 millions
13) What is the progression over these five years?
-Explore more overseas market, Sri Lanka, Australia
14) What is the motives that drive your company?
-Going green and eco friendly to save the environment
25 | P a g e
15) How does the company make use of technology for Internet communication and
outside marketing like email, internet, World Wide Wed, videoconferencing etc?
-Energy saving and trace electric consumption by server
16) How often does this company release new product
-Every quarter of the year
17) Was the pricing of the products strongly influenced by the other competitors?
-Yes
COMPETITION
18) How many company that are doing the same business around the area?
-Osram, Philips and GE
19) Can you list a few competitors and also their products?
-Philips LED lightings
20) Would you prefer having a lower pricing for your products, advertising and also
your products?
-Yes and also maintaining the quality
21) What was the company’s plan in five years?
-Trying to explore overseas market
26 | P a g e
Date: 6 January 2016
Time: 3.30 pm
Location: Optotronics Semiconductor, Taiping, Perak
Interviewed person: Mr.Simon Soh
Job Position: Co-founder
Office phone number: +6012 - 80754377
INTRODUCTION
1) May I know your name?
-Mr. Soh
2) What is your position in this company?
-Co-founder
3) How long have you been working for this company?
-5 to 6 years, 15 years register
4) What is the full name of this company?
-Optotronics semiconductor
HISTORY OF THIS COMPANY
5) When was this company first started?
-16 years ago
6) How did this company first originated?
-By Subcon
27 | P a g e
7) Who is the founder of this company
-Group of Consortium, a few people took over 5 years
8) Is this the first place that the company originated from or it had been relocated?
-No
9) How many branch companies that your companies have?
-3 manufacturing plants
10) How many employees in total are there?
-650
11) Can you estimate the number of clients that you have now
-1 or 2 main OEM of Phillips lumileds, automotive light, Toyota car
12) How much is the revenue your company generates per annum?
-Around 60 to 70 millions
13) What is the progression over these five years?
-Highly automated line service by using robots and reduce the number of
labours
14) What is the motives that drive your company?
-Being more safety, clean and quality
15) How does the company make use of technology for Internet communication and
outside marketing like email, internet, World Wide Web, video conferencing etc?
-We did not market much and uses Internet for communication
16) How often does this company release new product
-Did not release new product, because the product are high end products
28 | P a g e
17) Was the pricing of the products strongly influenced by the other competitors?
-Did not have much competitor, cost had increase because of currency
exchange will have little impact
COMPETITION
18) How many company that are doing the same business around the area?
-In this world only a few company because the safety standard requirement is
very high
19) Can you list a few competitors and also their products?
-AL automotive lightings with all kinds of lightings
20) Would you prefer having a lower pricing for your products, advertising and also
their products?
-Can be negotiated
21) What was the company’s plan in five years?
-Market in IPO (Initial public offering)
29 | P a g e
Appendix 2: Minutes of Group Meetings
English 2 Final Project Meeting
Date: 30 December 2015
Time: 3.30 pm – 4.15 pm
Venue: Joseph Soh’s house
Attendence: Joseph Soh (Leader)
Loh Wen Jun (Co-leader)
Tan Jit Kim
Teh Wei Hong
Thomas Ting
Carol Tang
Christina Chua
No Progress Mission Person in
Duties
1 Business selection
Within Klang Valley:
-Nitto Optotronics
Outside Klang Valley:
-Optotronics Semiconductor
Contact the businesses
by making phone calls
to the owner of both
companies to make an
appointment for
interview. Interviewing
both businesses had
been accepted
Joseph
30 | P a g e
2 Our journey and dividing
task
Before and during the trip to
IOI Boulevard, Puchong and
Kamunting, Perak. Each of
us was given a task while
we were interviewing
Interview questionnaire
preparations
Video Recorder
Interviewer
Information collector
Driver
Christina
Chua
Joseph
Wen Jun
Jit Kim
Joseph
3 Tasks for report had been
collected
Minutes of Meeting
Content for report
writing
Information about the
businesses
Wen Jun
Joseph
Jit Kim
4 Checking and finalization
of the report
Grammar and
sentences
Content
Information placement
and arrangement
Thomas
Ting
Jit Kim
Christina
5 Others:
After we had done our
report, we had to prepare
slides for our presentation
We had to burn the slides,
report and video in a CD
and design the CD cover
Artistic cover
Slides Designer
Information for slides
CD cover
Wei Hong
Christina
Carol Tang
Wei Hong
31 | P a g e
Bibliography
1) Nitto energy efficiency solutions (2015/2016 ed., p. 28). (1996). IOI Boulevard, Puchong,
Selangor
2) Optotronics semiconductor Sdn. Bhd (2011 ed., p. 24). (1996). Manufacturing Plant P1
Kamunting, Perak
3) Smith, F. Reading. Cambridge: Report writing (2008) Retrieved from
http://www.skillsyouneed.com/write/report-writing.html
32 | P a g e
Reference
1) Nitto Optotronics. (n.d). Retrieved from http://www.nitto-opto.com
2) Optotronics Semiconductor. (n.d). Retrieved from http://www.optotronic.net/about.html

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English final print

  • 1. Assignments: A comparative analysis of 2 businesses of similar industry in different geographical locations Report title: Factories Group members: Names: Roles: JOSEPH SOH (0323887) -Contact the interviewee -Video recorder LOH WEN JUN (0323551) -In charge of interview -Report writing TAN JIT KIM (0323854) -Report editor -Information collector TEH WEI HONG (0323743) -Video editing -Designing covers THOMAS TING SHII KAI (0323962) -Organizing roles -Report editor CAROL TANG NGIE BING (0323963) -Slides designer -Gather information (slides) CHRISTINA CHUA YI MEI (0323859) -Prepare questions -Slides designer English 2 (ELG30605) Lecturer: Mr GopiGhantan Mylvaganam Submission and presentation date: 15 January 2016
  • 2. 2 | P a g e Table of Content: No: Title: Page Number: 1 Key Summary 3 2 Descriptions of the history of the trade 4 3 Descriptions of the businesses 5-13 4 Comparative analysis of competitive traits 14-20 5 Recommendation 21-22 6 Appendices 23-30 7 Bibliography 31 8 References 32
  • 3. 3 | P a g e Key Summary: Based on our research, LED lightings are quite advantageous and safe to the environment. We have chosen two particular businesses, Nitto Optotronics in Puchong, Selangor and Opto Semiconductor in Taiping, Perak. Both have a similar advantage, which give a greener environment. With eco-friendly usage, they believe that a green practice represents the future which is essential to all businesses in order to achieve sustainable and profitable growth. They managed to find a more unique way by using LED lightings to support energy efficiency and make lesser carbon emission to environment as LED generates lesser heat and more lights compare to normal lightings. (102 Words)
  • 4. 4 | P a g e Description of history of trade: Light is the element and the essence of life. As human being, we practically uses light almost all the time, it is ubiquitous to us. Light helps to improve our vision especially during the dark, it serves as an aid to help us see better in life. As technology is getting better and more advance, LED lights are being introduced to the market due to its energy conserving feature as compared to other normal lightings which lacks in the efficiency. For example, making lights we need plastic and resources underneath the earth such as petroleum in order to make it. Not only that, we will also need power supply to light it up. Therefore, by using the advances of this technology, it will have longer lifespan and could save the power needed to light it up. To relate this, power from 36 watts for normal lightings, LED lights only need 18 watts of power supply. It also generates a brighter and clearer view. At the same time, it serves as a safety measure as human can see much better as LED lightings lights up instantly when switched on. Instantaneously, LED lightings also have a difference between normal lightings as LED generates 80 percent of lights and 20 percent of heat and for normal lightings, they would generate 80 percent of heat and 20 percent of light. As for this situation, it will be a waste on heat than getting more lights. This will also be energy efficient as without releasing much heat to the surrounding, it will be much cooler to the surrounding even though when the LED lights are turned on for longer period of time. Without heat, we can actually save a lot of things such as reducing the cooling time in a room and reducing the carbon emission which is harmful to humans and environment. However, purchasing LED lightings will cost a higher price than the other lightings due to the advance of the technology. But consider in a long-term usage, it will reduce the cost compare to normal lightings such as current saving and maintenance of the lightings. Nowadays, LED lightings can be purchase everywhere but there is several types or grades of LED lightings that could generates a brighter light but could not last long or the other way round. This type of LED will use more energy as brighter bulbs use more power supply compared to the other LED lights. That is to say competition occurred and they have to make a lower cost LED with potential as LED lightings can last a longer period of time, greener to environment and bright enough.
  • 5. 5 | P a g e Description of business: The research of this assignment is based on the analysis of two-auto semiconductor business. Both of the companies are located about 350 km away from each other. Nitto Optotronics is located in the city of Puchong, Selangor and Opto Semiconductor is located in Taiping, Perak. Location of 1st company, Nitto Optotronics: Location of 2nd company, Optotronic Semiconductor:
  • 6. 6 | P a g e Company 1: Nitto Optotronics Location: B-6F-05, IOI Boulevard, Jalan Kenari 5, Bandar Puchong Jaya, 47170 Puchong, Selangor Number of branches: 2 Number of estimated employees: 500 Main service: General lighting Estimate current number of customers: 25 Business started: Since 2010 Founders: Group of Consortium Motive for starting the business: Going green and eco-friendly to a greener environment Recent development: Ikano shopping centre Changes: More type of lightings and streetlights, from down-lights to high bay lights
  • 7. 7 | P a g e LED lighting products from Nitto Optotronics: There are varieties of LED lightings, which is used for different purposes. Each type of LED lightings serves different functions. 1.NITTO LED STREET LIGHT -Power consumption: 80w, 120w, 160w, 200w, 240w, and 280w Beam angle: Type 2 & 3 Input voltage: AC 100 ~ AC305 Power factor: More than 0.95 Efficiency: More than 90 Weight (kg): 8.3, 9.5, 10.7, 11.9, 15.0, and 16.3 Operation temperature: -40`C~50`C, 10%~90% RH 2.NITTO LED HIGHBAY LIGHT -Power consumption: 100w and 150w Beam angle: 35’, 60’ and 90’ Input voltage: AC 100~AC 305 Power factor: 0.99, 110 Vac and 0.96, 220 Vac Efficiency: More than 90% Weight: 2.40 kg Operation temperature: -30’C~60’C 3.NITTO LED FLOOD LIGHT -Power consumption: 100w and 150w Beam angle: 35’, 60’ and 90’ Input voltage: AC 100~AC 305 Power factor: 0.99, 110 Vac, 0.96, 220 Vac Efficiency: More than 90% Weight: 2.4 kg Operation temperature: -30’C~60’C
  • 8. 8 | P a g e 4.NITTO LED ROUND DOWNLIGHT -Power consumption: 3w, 5w, 7w, 9w, 12w, 16w, 20w, 24w and 30w Beam angle: 90’ Input voltage: AC 85`265V Efficiency: More than 90% 5.NITTO LED LIGHT BULB -Power consumption: 5w, 5w-D, 7w, 7w-D and 10w Beam angle: 335’ Input voltage: AC 10~AC 265V Efficiency: More than 85% 6.NITTO CHROMO-SPOT LIGHT -Power consumption: 4.5w, 7w Beam angle: 45’ Input voltage: AC/ DC 12V Efficiency: More than 85%
  • 9. 9 | P a g e Nitto Optotronics: This is the main branch of Nitto’s company, where it is located at IOI Boulevard, Puchong. It is an office and the place where LED lights are displayed. The LED lighting display: The LED lights are displayed so that customers can have a look and know more detail about the LED lightings that customers want to purchase. LED light can be switched on to compare the brightness with normal lightings.
  • 10. 10 | P a g e Company 2: Optotronics Semiconductor Location: Lot 10563, Jalan Perusahaan 3, Kemunting Industrial Estate, 34600 Kamunting Perak Number of branches: 3 Number of estimated employees: 650 Main service: Automotive semiconductor Estimate current number of customers: 2 Business started: 16 years ago Founder: Group of Consortium, a few people took over 5 years Motive for starting the business: Specific players, clean and strategic Recent development: Automotive lights for Toyota car and LED modules for alarm system Changes: Highly automated line service by using robot and reduce the number of labour cost
  • 11. 11 | P a g e Type of LED products from Optotronics Semiconductor: The types of LED chipset are solid-state lighting, semi-conductor chip, no filament gas or mercury. -The contract manufacturing service provider specializes in semiconductor based activities from package assemblies to light modules. Automotive Rear Lighting: LED chipset that are manufactured in the factories are then placed in the car rear lights. These lights include brake lights and signal lights of cars. The LED has a longer lifespan so that maintenance is less, brighter light produce and the time to produce the light is faster compare to normal lighting. These ensures the safety of the other driver especially driving during the night.
  • 12. 12 | P a g e Philips Supply Chain Security: Besides LED automotive lightings, other electronics appliances such telephones, CCTV cameras and monitor are also applicable of using LED chipsets and LED modules. The LED lights were created for installation in the electronics products as shown below. Implementation products: • Background check • Screening and validating • CCTV & Alarm System • Security Lock and Seal • Procedural control
  • 13. 13 | P a g e Facilities and capabilities: These are the machine in the factory of the Optotronic Semiconductor industry. The purpose is to produces LED chipset lights for automotive cars and other LED lights modules for other products.
  • 14. 14 | P a g e Comparatives analysis of business competitive traits: Business 1: Nitto Optotronics Nitto Optotronics is located in IOI Boulevard, Puchong. It encounters a few other competitions. This is because other competitors realized the chances and opportunities to earn profits in this area due to the high usage of LED lightings. With the same products at different price range will cause more competitors but not the quality of the products. In order to compete with other competitors, to compete they would have to offer a lower price of the product but does not change in the quality of the LED products.
  • 15. 15 | P a g e Top 3 competitors: The top 3 competitors of Nitto Optotronics are Philips, Osram and GE. They all sell the same products of LED lightings but different type quality produce. Competitor 1: Philips Philips is located in Petaling Jaya. Lighting systems from Phillips help people feel comfortable, productive and safe. They beautify spaces and transform environments. Phillips lightings system combines with LED luminaries and digital controls that deliver illumination experiences. Phillips lighting systems focuses on energy efficiency, sustainability and operational cost reduction. Competitor 2: Osram Osram is also located in Petaling Jaya. Osram is one of the guiding lights especially LED lightings in technological development and in the production of high quality products. For the past four decades, the high tech company had been investing in research and developing new products of LED lights on the technological cutting edge. Semiconductor is standards in the field of illumination and visualization.
  • 16. 16 | P a g e Competitor 3: GE GE lighting is located in Sentral of Kuala Lumpur. GE’s LED solution is the choice illumination for external environment and signage for Malaysia’s premier residential development D’ island residence. The products that were specified are GE’s roadway light system. The GE lighting brings an excellent quality to the development. GE lighting also offers its client reduced cost and lowered on the environmental impact. Strategies employed by Nitto Optotronics to compete with other competitors: To compete with other competitors, Nitto Optotronics factory had being producing the LED lightings that are brighter, longer lifespan and varieties of grades than other producer. Besides that, Nitto Optotronics also manufactured different variety of LED lightings such as down lights, street light, downlights and round down light which is explosion proof and is safer to be used. By developing these products, Nitto Optotronics become more competitive compare to the other businesses. To ensure that the LED lights are comfortable and beneficial to the environment, Nitto Optotronics also produced lights that are energy efficiency, longer lifespan and greener towards environment compared to other producer. Energy efficiency is also one of the aims which Nitto Optotronics want to achieve at a higher level. By using energy in the smart way, the LED lightings will release 20% heat and 80% even after switching it on for a long time comparing to normal lightings they will be the other way around.
  • 17. 17 | P a g e Business 2: Optotronics Semiconductor Optotronics Semiconductor is located in Taiping, Perak. Since there are only a few companies in the world that relate to this automotive semiconductor industry because the safety standard for the automotive vehicles requirements are very high, there were no competitors for that are qualifies for this business, which is creating semiconductor for automotive vehicles. It can be considered that Optotronics Semiconductor is one of the company in the list of automotive semiconductor companies in Malaysia that involve in this industry.
  • 18. 18 | P a g e Comparison between Nitto Optotronics and Optotronics Semiconductor Similarities TYPE OF LIGHTINGS LED TARGET/ACHIEVEMENT Create LED lighting that have longer lifespan, brighter and energy efficiency INDUSTRY Manufacture from factory FOUNDER Group of Consortium STRATEGIES Tolerate the price and maintaining the quality Differences and Contrast Nitto Optotronics Optotronics Semiconductor COMPETITORS 3 None ESTABLISHED YEAR 5 16 FIRST PLACE COMPANY ORIGIN Yes No NUMBER OF BRANCHES 2 3 NUMBER OF ESTIMATED EMPLOYEES 500 650 NUMBER OF CLIENTS 25 2 REVENUE OF COMPANY 20 to 40 millions 60 to 70 millions MOTIVE Going green and eco-friendly to save environment Being more safety, clean and quality HOW OFTEN RELEASE NEW PRODUCT Every quarter of the year No new product
  • 19. 19 | P a g e Obstacle faced by new businesses Obstacle Information Insufficient budget to open a business Starting a new business of manufacture factory required a huge amount of money and could not gain much profit. It is almost impossible to find a businessman who is willing to lend money. Even if borrow money from bank loan, the huge sum of money have to be returned to the bank. It might take longer period of time until the money is completely returned. Competitors are located everywhere LED lighting are beneficial in Malaysia, especially many places require LED lights to work. Due to the modern technology, LED lights have been invented and many competitors are selling their own LED lighting products. They also offered a lower price to attract more customers. Energy efficiency are also important for LED lights as it save energy and greener to environment. Certification of production Not all businesses could achieve this qualification as it is based on the requirements. A company had to follow the requirements, specification and guideline. This standard, which applies to the requirement of quality management system of a business. It is the model for quality assurance in production, installation and services. This obstacles and problems faced by new businesses having low chances to overcome it, as it is based on high budget and they required a lot of sacrifices from a businessman and bank loan.
  • 20. 20 | P a g e Conclusion of Analysis Based on what we had research between the 2 businesses, both company that sell LED lights products are very competitive. Although one of the company sells general LED lightings and the other company sells automotive LED lightings. Both the company resources are set up with the same quality of LED lighting products. Since Optotronic semiconductor industry had no competitive in Malaysia, it had been the only business that involve in selling automotive semiconductor with high grades LED products it had been a high profit and is high demand to the market. Automotive vehicle could install the brake light and signal light with the use of Optotronic semiconductor of LED products for a longer lifespan. It is also safer for other driver to notice that the brake light and signal light of the vehicle especially during the night as it is brighter. Although Nitto Optotronics had competitors which sell their own lighting design using the LED products but Nitto Optotronic have variety of lightings and grades. Their products have longer lifespan and more energy efficiency. These businesses had been very competitive among each other and they would continuously compete to achieve a higher profit and maintain the quality of their products.
  • 21. 21 | P a g e Recommendations: Business 1: Nitto Optotronics CURRENT AREA OF IMPROVEMENT RECOMMENDATION Not enough branches and companies around. Open more branches and companies of Nitto Optotronics somewhere further than the current location. Maybe in other states so that it is easier to travel to the nearest factory. Technology of internet communication for selling products and marketing purpose are still inactive. Advertise more of the LED products online especially internet marketing and sell more of the products on the website and published it and making online selling. Not a good location since its located on the highest floor of the building making it difficult for people to notice it. Before opening another branch of Nitto Optotronics, choose a good location where it is beneficial to the surrounding environment. Choose a place where it is larger and easier for people to see and notice it. It is better if it is located beside the roadway so that people would pass through it and have a look.
  • 22. 22 | P a g e Business 2: Optotronics Semiconductor CURRENT AREA OF IMPROVEMENT RECOMMANDATION Do not make market much and did not have much communication through internet Introduce more automotive semiconductor products to the market so that the products will be more recognized in the market and promote the LED products through the internet to communicate with others. Effective communication is also important for the company to improve the current situation. Cost had increased causing the reduction of buyers in the market Try to tolerate the price of the products to increase the number of buyers in the market and the profit earned. Optotronic Semiconductor only have two customers which is Toyota car and Phillips Lumileds Advertise and promote more of the LED products so that other customer would want to use more of the automotive semiconductor, which is energy efficient and brighter.
  • 23. 23 | P a g e Appendices Appendix 1: Survey questionnaires and answers Date: 2 January 2016 Time: 12.30 pm Location: Nitto Optotronics, IOI Boulevard, Puchong Interviewed person: Mr. Loh Hoi San Job position: Senior Sales Manager Office phone number: +6013 – 80754377 INTRODUCTION 1) May I know your name? -Mr.Loh 2) What is your position in this company? -Senior sales manager 3) How long have you been working for this company? -8 years 4) What is the full name of this company? -Nitto Optotronics HISTORY OF THIS COMPANY 5) When was this company first started? -Since year 2010
  • 24. 24 | P a g e 6) How did this company first originated? -By lighting 7) Who is the founder of this company? -Group of Consortium 8) Is this the first place that the company originated from or it had been relocated? -It is the first place and it has not been relocated 9) How many branch companies that your companies have? -2, Bukit Minyak, Penang and Taiping Kamunting, Perak 10) How many employees in total are there? -500 and above 11) Can you estimate the number of clients that you have now -20 locals and 5 overseas 12) How much is the revenue your company generates per annum? -Around 20 to 40 millions 13) What is the progression over these five years? -Explore more overseas market, Sri Lanka, Australia 14) What is the motives that drive your company? -Going green and eco friendly to save the environment
  • 25. 25 | P a g e 15) How does the company make use of technology for Internet communication and outside marketing like email, internet, World Wide Wed, videoconferencing etc? -Energy saving and trace electric consumption by server 16) How often does this company release new product -Every quarter of the year 17) Was the pricing of the products strongly influenced by the other competitors? -Yes COMPETITION 18) How many company that are doing the same business around the area? -Osram, Philips and GE 19) Can you list a few competitors and also their products? -Philips LED lightings 20) Would you prefer having a lower pricing for your products, advertising and also your products? -Yes and also maintaining the quality 21) What was the company’s plan in five years? -Trying to explore overseas market
  • 26. 26 | P a g e Date: 6 January 2016 Time: 3.30 pm Location: Optotronics Semiconductor, Taiping, Perak Interviewed person: Mr.Simon Soh Job Position: Co-founder Office phone number: +6012 - 80754377 INTRODUCTION 1) May I know your name? -Mr. Soh 2) What is your position in this company? -Co-founder 3) How long have you been working for this company? -5 to 6 years, 15 years register 4) What is the full name of this company? -Optotronics semiconductor HISTORY OF THIS COMPANY 5) When was this company first started? -16 years ago 6) How did this company first originated? -By Subcon
  • 27. 27 | P a g e 7) Who is the founder of this company -Group of Consortium, a few people took over 5 years 8) Is this the first place that the company originated from or it had been relocated? -No 9) How many branch companies that your companies have? -3 manufacturing plants 10) How many employees in total are there? -650 11) Can you estimate the number of clients that you have now -1 or 2 main OEM of Phillips lumileds, automotive light, Toyota car 12) How much is the revenue your company generates per annum? -Around 60 to 70 millions 13) What is the progression over these five years? -Highly automated line service by using robots and reduce the number of labours 14) What is the motives that drive your company? -Being more safety, clean and quality 15) How does the company make use of technology for Internet communication and outside marketing like email, internet, World Wide Web, video conferencing etc? -We did not market much and uses Internet for communication 16) How often does this company release new product -Did not release new product, because the product are high end products
  • 28. 28 | P a g e 17) Was the pricing of the products strongly influenced by the other competitors? -Did not have much competitor, cost had increase because of currency exchange will have little impact COMPETITION 18) How many company that are doing the same business around the area? -In this world only a few company because the safety standard requirement is very high 19) Can you list a few competitors and also their products? -AL automotive lightings with all kinds of lightings 20) Would you prefer having a lower pricing for your products, advertising and also their products? -Can be negotiated 21) What was the company’s plan in five years? -Market in IPO (Initial public offering)
  • 29. 29 | P a g e Appendix 2: Minutes of Group Meetings English 2 Final Project Meeting Date: 30 December 2015 Time: 3.30 pm – 4.15 pm Venue: Joseph Soh’s house Attendence: Joseph Soh (Leader) Loh Wen Jun (Co-leader) Tan Jit Kim Teh Wei Hong Thomas Ting Carol Tang Christina Chua No Progress Mission Person in Duties 1 Business selection Within Klang Valley: -Nitto Optotronics Outside Klang Valley: -Optotronics Semiconductor Contact the businesses by making phone calls to the owner of both companies to make an appointment for interview. Interviewing both businesses had been accepted Joseph
  • 30. 30 | P a g e 2 Our journey and dividing task Before and during the trip to IOI Boulevard, Puchong and Kamunting, Perak. Each of us was given a task while we were interviewing Interview questionnaire preparations Video Recorder Interviewer Information collector Driver Christina Chua Joseph Wen Jun Jit Kim Joseph 3 Tasks for report had been collected Minutes of Meeting Content for report writing Information about the businesses Wen Jun Joseph Jit Kim 4 Checking and finalization of the report Grammar and sentences Content Information placement and arrangement Thomas Ting Jit Kim Christina 5 Others: After we had done our report, we had to prepare slides for our presentation We had to burn the slides, report and video in a CD and design the CD cover Artistic cover Slides Designer Information for slides CD cover Wei Hong Christina Carol Tang Wei Hong
  • 31. 31 | P a g e Bibliography 1) Nitto energy efficiency solutions (2015/2016 ed., p. 28). (1996). IOI Boulevard, Puchong, Selangor 2) Optotronics semiconductor Sdn. Bhd (2011 ed., p. 24). (1996). Manufacturing Plant P1 Kamunting, Perak 3) Smith, F. Reading. Cambridge: Report writing (2008) Retrieved from http://www.skillsyouneed.com/write/report-writing.html
  • 32. 32 | P a g e Reference 1) Nitto Optotronics. (n.d). Retrieved from http://www.nitto-opto.com 2) Optotronics Semiconductor. (n.d). Retrieved from http://www.optotronic.net/about.html