This document analyzes and compares two tire businesses - Yuen Chuan Huat Tyres & Batteries and Hup Shun Tyres Auto Car Care - located in different areas of Malaysia. While both businesses sell tires and offer tire services, Hup Shun has been more commercially successful due to its larger size, greater product variety, competitive pricing, and advertising. Both businesses operate in a monopolistically competitive market and face challenges from competitors, location constraints, and a need for improved customer service and facilities.

1. ANALYSIS OF 2 BUSINESSES OF
SIMILAR INDUSTRY IN DIFFERENT
GEOGRAPHICAL LOCATIONS
MELVYN POH
CHLOE SIM
RACHEL YEO
KAREN CHOO
LEE ZHI ANG

2. HISTORY OF TYRE
DEVELOPMENT
Standard type of Tires
Bridgestone, Goodyear,
Michelin
Malaysia – third largest
rubber manufacturer
Modern pneumatic tires
Synthetic rubber, fabric &
wire
Inflatable structure with
doughnut-shaped body
During the 1800s
Bands of leather Then iron, steel, placed on
wooden wheels

3. DECRIP

4. MELACCA
KUALA LUMPUR

5. Yuen Chuan Huat Tyres & Batteries
Sdn Bhd
LOCATION:
4940, Jalan Semabok, 75050,
Malacca, Malaysia

6.  Founded in the year 1992 by Yuen Chuan Huat
 Used to learn about tires and car care
 Opened up his own business
 Running the business with his wife
Yuen Chuan Huat

7. Home-based business
Single branch
5-8 local workers
Opens daily from 7am to
7pm
Around 10-15 customers per day
Usually local adults
Of different races
Through recommendation of customers and friends
Daily revenue is around 3-4K

8. Products :
Tires, Rims
Services :
Tyre services

9. Hup Shun Tyres Auto Car Care Sdn
Bhd
Location :
No.11,JLN PJS 11/7 Bandar
Sunway 46150 Petaling Jaya
Selangor

10. Hup Shun
• Founded in the year 1995 by Mr. Ti
• No specific reason on why he started the business
• Used to work for his brother under the same industry
• Decided to start his own business
• Managed by his son, Mr. Ivan
• Opened up another branch

11. -Around 20 customers per day
-Usually businessman
-Daily revenue is around 5-10K
-Through media, magazine and newspapers
-2 branches
-10 local worker 1 foreigner
-Opens on Monday –Saturday 9am
to 6:30pm

12. Products: Tyres, sport
rims, exhaust systems
Services: Tyre services

14. • Selling tyres and
providing tyre services
• Provides similar
services to Yuen
Chuan Huat’s
• Reseller for the brand
Bridgestone and
Silverstone

15. • Sell tyres, provides tyre
repairing serives and
also care maintenance
services
• located 500m aways
from Yuen Chuan Huat

16. • A very old shop
which provides tyre
servicing
• Reseller for
Silverstone tyres

18. • Products of tyres and sport rims
are always available in stock.
• Varieties of tyres and rims to be
chosen from

19. • Awards and certifications received are
displayed in the shop
• Attract customers as it shows high
credibility
• Prove that the company is trustable one

20. • Reasonable and affordable
• Standard price
• Does not raise up the price to earn eatra profit

22. • Certified tyre reseller
of Michelin
• Main competitor to
Hup Shun
• Large variety of tyres
• Less sports rims
compared to Hup
Shun

23. • Reseller mainly
for LingLong
Tyres
• Provides top to
toe car care
services

24. • Small Tyre shop
located right next
to Hup Shun
• Sells tyres and
sports rims

26. • Large variety of sports rims and tyres
• Big brake kits, car body parts, suspension and
exhaust systems
• Price are reasonable and standardized
• Official sole distributor for the official Vossen
Wheels and BC Forged Wheels

27. • Provides the best services and maintenance
services for customers
• 9 out of 10 workers are local which can
communicated well with their customers
• Workers are highly trained

28. • Promotes company through Facebook pages,
own public website, magazines, newspaper
and articles.

30. Yuen Chuan Huat Differences HupShun
1992 Year Founded 1995
Yuen Chuan Huat Founder Mr T
4940, Jalan Semabok,
75050, Malaka,
Malaysia
Location No.11,JLN PJS 11/7
Bandar Sunway 46150
Petaling Jaya Selangor
Around RM 3 to 4
thousand
Daily Revenue Around RM 5 to 10
thousand
0 Branch 1

31. 2 Units of shops 3
Less than 10 Number of
employees
11
Around 15 a day Number of
customers
Around 20 a day
3-5 Number of
competitors
More than 5
7am-7pm Business Hour 9am-6:30pm
Through recommendation
of customers and friends;
Awards received
Advertising Through media,
magazine and
newspapers
More improve services
and quality of products
Future plans Extend the business and
improve service and
quality of products
Sports rims, different
brands of tyres, car
batteries, tyre services
Type of products
and services
Different brands of tyres,
car sports rims, exhaust
systems, suspensions,
tyre services
Lead by owner and his
wife
Leaders Lead by the owner and
his son

32. Yang Chuan Huat Similarities Hupshun
1 Number of
founders
1
Family influence What prompted to
start this business
Family influence
tyres Main products tyres
Businessman Main customers Businessman
Provide good
services and quality
products
Strategy Provide good
services and quality
products

33. Home base Business
operation
Home base
Around 300k
including machinery
Capital is required
to start this
business
Around 300k
including machinery
Depends on the
season
Best seller Depends on the
season

34.  Provides professional,
consistent and quality
services
 More affordable prices
 More variety of tyres and
sport rims compared to
Yuen Chuan Huat
 Larger shop
 Good advertising
Hup Shun Tyres Auto Car Care Sdn bhd is
more commercially successful

35. Lack of
capital to
start business
Competitors
Location and
Usage of
Space

36. Monopolistic Competition
 New firms can enter and exit the market
easily
 Weak pricing power

38. Active in promoting
 Should distribute flyers to housing area
nearby
 Investing in newspaper advertisement to
increase publicity

39. Regular customers
 Ensure company does not only receive
business from regular customer but also first-
timers
 Expand business by branching out in different
area

40. Size of shop
 Limits number of vehicles that can fit in
 Insufficient space to park
 Extend the size of shop lot so that it is more
spacious

41. Waiting Area Facilities
 No air-conditioned waiting area for customers
 Limited sears for customers to wait for
services
 Install an air-conditioner in waiting area
 Put more seats for waiting customers

42. Waiting duration
 Keeps customer for waiting to get their
vehicles fixed will waste a lot of time
 Hire more workers

43. Location
 Parking problem
 No space to park their vehicles
 Make specific land of space mainly for their
customer

44. Employees’ Performance
 Train their employees to a much qualified and
better standard to compete with others
 Improve efficiency to gain more trust from
customers

45.  Economicsonline, (2015) Perfect competition [Online].
http://www.economicsonline.co.uk/Business_economics/Perfect_c
ompetition.html (viewed on 19th of November)
 Facebook, (2015) Hupshun Tires [Online]
 https://www.facebook.com/HupShun-Tires-195131380566062/
(viewed on 18th of november 2015)
 Hupshuntyres ,(2015) Hupshun Tyres Auto Car Care Sdn Bhd
[Online] http://www.hupshuntyres.com/ (viewed on 21st of
November 2015)
 Tyrepress, (2015) Malaysian tyre market to grow 9% (CAGR) in next
five years [Online]. http://www.tyrepress.com/2014/11/malaysian-
tyre-market-to-grow-9-cagr-in-next-five-years/
 (viewed on 20th of November 2015)