1. 1
Name of Module: ENGLISH 2 (ELG30605)
Report Title : A Tale Of Two Businesses – A Comparative
Analysis Of 2 Businesses Of Similar Industry In Different
GeographicalLocation
Group Members :
Amanda Chiong (0320328)
Bridget Hsu (0320218)
Chau Xet Nee (0320222)
Foo Zhi Fung (0320226)
Le Jia Nian (0319957)
Marco Leong (0320026)
Ngo Jia Haur (0320144)
Wong De-Vin (0319814)
2. 2
Table of Content
Content Page
Cover Page
1
Table Content
2
History of Dried Meat
3
Key Summary
4
Brief Bio Of Businesses
5-8
Comparative Analysis Of Business Competitive Traits
9-15
Recommendation
15-16
Appendices
17-29
References
30
3. 3
History of Dried Meat
Dried meat is also known as Bakkwa or Rougan in mandarin are
sweetened barbecued dried meat slices that is similar to jerkeys. This
product and the way of cooking it is originated from mainland China in a
provincenamed Fujian and it is considered as a Hokkien delicacy.
This type of dried meat is actually preserved and prepared with a
special technique originated from China. Although this product has been
on the market for centuries, the method for production have remained
the same until today. The Bakkwa is often made with beef, pork or
chicken, which are prepared with spices, sugar, salt and soy sauce and
then dried on racks at around 50 to 60 degree Celsius.
Today, there are slight changes to the product like softer texture, lighter
colour and also less sugar. The bakkwa products that are sold in the
market nowadays have higher water content that cause it to have softer
texture and less sugar are used in them as well due to the health
concerned of the society these days. Even though there are changes
made throughout the years, they still do have similar shelf life as the
ones before. The meat nowadays has also been modified and most
commonly served in square-shaped slices in the form of flat thin sheets.
Bakkwa is extremely famous in South East Asia especially in Singapore
and Malaysia where most eaten during Chinese New Year. When the
Chinese immigrant brought this delicacy over to South East Asia, the
way of preparing and cooking it has slightly changed. The most notable
changed would the the preparation of Bakkwa. The meat was once still
air-dried and now they grill them over charcoal instead. This also gives
a smokier flavour to the meat. The Singaporeans and Malaysian versions
of Bakkwa are also slightly different than the ones in mainland China
due to the variations adapted to suit the locals such as Satay Flavoured
Bakkwa.
4. 4
Key Summary
This assignment aims to conduct a comparative analysis between two
businesses of similar industry but the different geographical locations,
where are Tuck Kee Dried Meat & Meat Floss in Pulau Penang and the
another one is Oloiya Dried Meat in Klang Valley. For this assignment,
we had chosen two Dried Meat shops in food industry to carry out face-
to-face interview to obtain the businesses’ information and compare the
businesses’ competitive traits such as number of competitors, main
products or services sold, market share of the businesses, nature of
markets and others. Dried Meat is a type of meals snack that is popular
among people with different ages mostly in Chinese community. After
analysis all the information obtained, we concluded that Oloiya Dried
Meat had a higher popularity as it boasts many outlets nationwide in
Malaysia but Tuck Kee Dried Meat & Meat Floss not so popular in the
market. Both of them shares a common similarities which they provide
export services internationally.
5. 5
Brief Bio of the Businesses
Tuck Kee Dried Meat
1. The dried meat business was interviewed in Penang - ‘Tuck
Kee Dried Meat’. This business was founded in 1980an and the
name of the founder is Chong Man Tuck at the age of 27. ‘Tuck
Kee Dried Meat’ is named due to the founder’s name is related
and also a remembering on his effort on the dried meat
business.
2. The current location is strategically located in the famous
tourist spot in Penang Road, Georgetown. There is a well-
known chendol stall named Teowchew Chendul. With the
corporation of both of their famous business, Penang Road had
been a must for tourist and local to visit if they have their foot
in Penang.
3. Before the first outlet debuted, the founder is just pushing a
cart selling dried meat in every place in Georgetown. Later on,
the Mr. Chong gained his first capital to buy a shop and roots in
Penang Road to run his business together with 10 numbers of
employees.
4. For sure, the main product is dried meat but Mr. Chong has
also doing services like exporting his dried meat oversea and
retail & wholesale. Besides, Mr Chong is also selling bird nest
and tea leaves as his sideincome.
5. During the 15 minutes interview, we saw there are 3
customers came into the shop to buy dried meat. Mr Chong run
his business at about 12 hours a day. With our estimation,
there are about 150 customersvisited him in a day.
6. 6
6. It was founded because in the beginning after he married his
wife, he was a fruit man selling fruit on a push cart soon he
realize that not much profit he can make to feed the family
from selling fruit. He soon got his motive and discover how to
make dried meat because dried meat are popular among the
Chinese community in all ages and start selling a little amount
of dried meat on a push cart. Through this dried meat business,
he makes a lot of profit and decided to open a shop lot. He
passes his recipe to his son and his daughter. He is no longer
operating the business as his children hold all his business
right now.
7. In recent time, the business has used their revenue to improve
his product improving the taste of the meat and make it better
packaging. Besides, they are using their revenue to invent new
taste of the dried meat using different type of meat. The
business revenue gain thought their development is current
RM50, 000 per month where they start business with capital
around RM100 in theearlier year.
7. 7
Brief Bio of the Business
Oloiya
1. In 1970an, the founder – Khue Chow Kong (grandfather of
Raymond Khue) ventured into making orange juice. He had a
Taiwanese friend who willing to exchange his recipe of making
dried meat with him who always visit him when he reached
Malaysia. When he met Mr. Khue, he would shout at him and
said ‘Oloiya’ which is a Hakka language which mean ‘Here I
Come’. Hence, a huge business is start up by using the name –
‘Oloiya’
2. The original Chinatown centred on Petaling Street. The street
was popular as it was higher than the rest of the town and was
therefore less prone to floods, and the wealthier population
were inclined to build their shop and houses here. Due to all of
the reason, Mr Khue took this opportunity and start his
business selling dried meat close to the Petaling Street. The
men were mainly Cantonese and Hakkas from China who had
come to the city because of the tin trade. Thus, this would
made Mr Khue dried meat business enlarged as people around
would buy dried meat before they sail back to their country.
Besides, the worker that working as coolies in the mines will
also bought dried meat as snacks.
3. In 1975, there were only 1 outlet which was located in Petaling
Street and still the founder was operating it. Until 2010, there
were 36 outlet all over Malaysia. Raymond Khue very honestly
said that the number of roadside stalls has decreased while the
number of outlets in malls and shoplots continue to grow.
Raymond Khue also said that there were approximately 100
employees all over the company include factories, offices, agent
and salesman. Mr Khue is now passed away, his grandson now is
inheriting his huge business.
8. 8
4. They are variety of product been sold in every branches and
franchises of ‘Oloiya’ such as savoury minced chicken dried meat,
gold coin ham & chicken dried meat, chicken and pork floss,
minced pork dried meat, lovely heart dried meat, bacon slice, chili
pork dried meat and hakka-style beef dried meat and duck dried
meat is also available. Raymond told us that the bestselling product
is the traditional dried meat – savoury minced chicken dried meat.
Those products usually for the purpose of gift and as a hamper for
others. Dried meat also as a snacks for foreign.
5. As the interview held in the office, we could not estimate the real
number of customers but we also asked this question to Raymond,
he said there are approximately 500 customers visited to the shop
and there are mosty local to visit them as only local who know the
dried meat brand – ‘Oloiya’.
6. In 1970, the couple opened their first stall in Chinatown. In those
days, pork was used to make dried meat and the couple soon
realised that the sliced dried meat was not suitable for the elderly
and young as it was rather difficult to chew. Mr Khue started the
first of many innovations in the dried meat industry. He created
minced chicken dried meat and went on to introduce minced pork
and duck delicacies. This is not meant that it was more palatable
for the young and elderly, it also gave their customers more variety
on buying dried meat.
7. Their recent development have plans in the pipeline to expend the
business globally. In addition to focussing on countries that have a
significant non-halal countries such as Thailand, China, Vietnam,
Singapore and so on. But the first step to go into global business is
to export and open branch in Thailand. Besides, they also plan to
list their company in Bursa Malaysia but there are many obstacles
blocking them to the way through.
9. 9
Comparative Analysis of Business
Competitive Traits
1. In Penang, dried meat shop there are at least 8 competitors
specifically in Georgetown ;There is an large number of dried
meat shop in Klang valley counting more than 50 firm .
Specifically in Petaling Street, there are at least 10 firms.
2. In Penang , Teic Kee share is small and its top competitor in
market would beLoong Kee , Oloiya , Bak Kueh Eng ; in Klang
Valley Oloiya share is big in the market , its top competitors
would be BeeCheng Hiang, WingHeong, Loong Kee .
3. TUCK KEE
a) Loong Kee Dried Meatfounded in 1976 and has been a
name in this industry for almost 40 years. Loong Kee is
famous for festive favorites such as dried meat , meat
floss, meat fluff, mooncakes as well as feel-good all-year-
round treats such as cookies and pastries. There are
currently 21 Loong Kee branches nationwide and 3 of
them located in Penang, one in Ayer Itam, one in
Butterworth and one in Gurney Plaza. Loong Kee is also
an active participant of food fairs, food exhibitions and
festive events. The presence of Loong Kee is definitely an
influence to Tuck Kee as they many varieties of not only
dried meat but also pastries.
10. 10
b) Oloiya is one of the dominant company in this industry
since the early 70s and has never fail to impress their
customers in the sense of not only the quality of their
product but also the price and the service they have
provided. Although there are only 2 outlets in Penang,
which is one in Penang Island and Butterworth, they are
never any worse than their competitors due to their
popularity and quality they have provided to their
customers. Their main product would be chicken dried
meat and that is also their best seller because they are
the first shop in Malaysia to actually sell chicken dried
meat. They also have a huge variety of dried meat and
pastries that makes them one of the best dried meat store
in Malaysia. Oloiya has been on the top list in this field for
decadesand it is a huge competitor for Tuck Kee.
c) Bak Kueh Eng is not a chain nor a franchise like Loong
Kee or Oloiya. It is a small shop just like Tuck Kee and
they grill their dried meat not like the big chain’s where
they have factory but in their own shop. The location of
this shop is in Lebuh Cecil, Georgetown. The product they
are selling are more or less the same like Tuck Kee except
they also sell Roasted Pork which give them a huge boost
to their business. Although it is just a small business, it is
also a competitor to Tuck Kee due to the loyal customers
they have and also the quality they give to them.
11. 11
OLOIYA
a) Bee Cheng Hiang is a well known or arguably the biggest
dried meat chain originated from Singapore and it has many
branches all around Asia including Korea , China , Malaysia ,
Macau , Thailand ,Philippines , Indonesia , Taiwan , Hong Kong
and of course Singapore. This dried meat store start since the
1930’s and has been tremendously famous ever since. Bee
Cheng Hiang has existed for almost 90 years and not only they
are maintaining what they already provide but also expand and
grow their business in very well.The main products that are
keeping this business growing is their dried meat, meat floss ,
chinese sausages , mooncakes and some snack like grilled
cuttlefish. It currently has more than 200 stores in the world
and still growing. A business like Bee Cheng Hiang is truly a
huge competitor to Oloiya as they are recognized worldwide.
Oloiya’s director even mentioned that Bee Cheng Hiang is a
company that he truly admire by their way of organising their
business and how they grow it. Even their price is expensive
but there are also customers that are willing to pay the price
for what they’re getting in BeeCheng Hiang.
b) Wing Heong is a dry meat chain that has 6 stores all located in
Klang Valley. Wing Heong is founded in the early 1970’s and
has expanded to 6 stores from then. The main products they
are selling is chicken , beef and pork dried meat. Although it is
not a very big chain, it is also a competitor to Oloiya due to the
loyal customers Wing Heong has already attracted throughout
the years.
c) Loong Kee is one of the main competitors to Oloiya due to the
size of their business they have expanded throughout the
years. It has been founded for almost 40 years and has already
been a competitor to Oloiya since Oloiya is founded. Although
they have been around for awhile and selling almost the same
product for many many years but they have their own unique
way of attracting customers. Even though they are strong
12. 12
competitors Oloiya’s director did mention that they compete in
a fair manner and they have never sabotage each other in
anyway.
4. TUCK KEE
- Mr. Chong claim that he lower the price of his dried meat to
compete with his competitors.
- Mr. Chong encourages his employees to spent time with
their customer to receive feedback for them to reflect and
make their product better. Besides getting face to face
feedback, he also get feedback from social media example
like Facebook.
- Mr. Chong will have annual meeting with his employee to
create new dried meat flavor or other related product and
promotetheir new producton social media.
OLOIYA
- New product are produce every year or on special event like
Mother’s Day, ChineseNew Year and etc.
- Oloiya is the first dried meat shop that use chicken to make
dried meat this make Oloiya very special.
- Marketing department of Oloiya also promote themselves in
social page like Groupon, Facebook and etc.
5. To enter the dried meat market according to both of the
interviewee back in the 80s is easy as long as you have money
you can start a dried meat shop but these day you need to have
large amount of capital.One of the obstacle being point out from
the Executive Director form Oloiya is strict qualification from
the government for new businesses to enter the market. Besides
strict qualification, nowadays is not easy to make bank loan as
bank required high requirementto give bank loan.
13. 13
6. Nature of the market
- Tuck Kee Dried Meat & Meat Floss is an oligopoly market, which is
dominated by a few sellers. Tuck Kee is protected by strong barriers to
entry as it resembles a significant role in the market and it has a wide
source of customers that mostly emphasis in the original customers.
Tuck Kee also has high popularity among the local residents and is also
famous for the foreigner tourists. Tuck Kee also provided high quality
standardized products. It is considered as price taker because it does
not affect the market price if it increases the price of its products, which
in turn will lose its customers dueto the increasing in price.
- In the other hand, Oloiya is an oligopoly market, which is dominated
by a few strong competitors in the range of 2 to 10 large firms. Oloiya
has the biggest share of the market that is more that a half with an
approximate percentage to 55% of the market shares. It is protected by
strong barriers as it required a huge capital for the new businesses to
enter the market and it is economy stable in the market and has a high
position in the market. It is considered as price maker as it has launched
a lot of special self-invented products that can only be found in Oloiya
such as gold coin ham and chicken dried meat, lovely heart dried meat,
bacon slice (blooming beauty ham), Hakka style duck dried meat, old
style burger and other products. Oloiya often do advertising for their
new brand products, launching new products according to the season
and also held special events constantly.
14. 14
7. Summary table
CompetitiveTraits TuckKee DriedMeat&
Meat Floss(Pulau
Penang-Based)
Oloiya(KlangValley-Based)
1. Number of Competitors In range 5 to 10 competitors In range 10 to 50 competitors
2. Barrier to Entry Protected by strong barriers
to entry.
Because this is an old
historical shop. Thus, they
have many original
customers and won high
popularity in the local and
tourisms.
Protected by strong barriers to
entry.
Because it has a very stable
economy status and is well equipped
with advanced technology for the
efficiency production.
3. Differentiated or
Standardized Products
Standardized products. Differentiated products.
- Gold coin ham & chicken dried
meat
- Lovely heart dried meat
- Bacon slice (Blooming beauty ham)
- Hakka style duck dried meat
- Old style burger
4. Pricing Power Price Taker
- Because the price that he
sets does not bring any
affect to the market price
instead he will lose plenty of
customers as the demand
will decrease when the price
increase. (Refer to the
demand theory)
Price Maker
- Because it has many types of
special products that is self-
invented. Thus, they can set the
price by themselves because the
customers only can find these
specific products at their shop.
5. Other Characteristics Many close products
substitutes, inconstant
advertising, rarely having
promotions for the products
and rarely invented special
season products.
No close products substitutes,
mutual dependence, constantly
advertisements, holding promotions
for special events constantly, often
invented special season products
and launching new products
annually.
6. Verdict Oligopoly Oligopoly
15. 15
8. Based on our analysis, Oloiya would be more commercially successful
business. One reason is that Oloiya is a very well-known Brand in all over
Malaysia. Oloiya have special product that cam attract people , example
heart shape dried meat , and chicken flavor dried meat ; Tuck Kee only
have all standardized product .
Recommendation
Tuck Kee Dried Meat
Since this ‘Tuck Kee Dried Meat’ shop is only well known in
Penang. We had suggested that the shop should make more
advertising, creating an official website and promotional
campaigns to promote their products all over the Malaysia
especially the place which is significant with Chinese as dried
meat is origin from Chinese culture. If ‘Tuck Kee Dried Meat’
makes a strong advertising, people will feels it’s a lost if they do
not buy the dried meat when they reach Penang,
Due to there are only less product been sold in the shop, in our
opinion, we would recommend Mr. Chong to invent more
products. This is because customers will feel bored if people keep
on buying the same product. If a new product launched, people
will feels fresh and this can enhance the revenue of ‘Tuck Kee
Dried Meat’. So, the owner can invent new products that never
been in the marketto attract costumer.
Everyone knows Penang has a serious traffic jam just like Kuala
Lumpur. If Mr Chong can create also a delivery service and online
shopping just like the huge companies such as IKEA, Tesco and so
on. These companies will always make their customers at first and
let customers buy their product in the fastest and easiest way.
Hence, if Mr. Chong can also apply these services into his business,
it will comesa large of profitto ‘Tuck Kee Dried Meat’ too.
16. 16
Oloiya Dried Meat
Oloiya is been a very success dried Meat Company in Malaysia but
out of Malaysia, no one recognize Oloiya. It is an opportunity for
Oloiya for them to step themselves into Asia Pacific such as
Thailand, Vietnam, China and Singapore as those countries are
non-halal countries and also concentrated by Chinese. But at first,
Oloiya must have branches and makes advertising in those
countries for people to know more about what is dried meat as
those countriesknow nothing about dried meat.
Based on our knowledge after interviewing Oloiya, they have not
enough of capital for them to enlarge their companies. It is an
obstacle for them to step themselves into Asia Pacific. In my
opinion, I suggest them to list their company on BursaMalaysia to
gain capital from others but this decision had to gain approval
shareholders. Maybe Oloiya is a family business, they will not
willing to sell their shares to public but if the mastermind can
convince the shareholders, I think those shareholders will
approveto carry their businessinto whole Asia Pacific.
Inventing new product without pork is a success step into the
market due to in Malaysia majority of it are Malay but
unfortunately, those product never get verified by halal. If Oloiya
want to carry themselves into Asia Pacific, at first, they have to get
verified by halal as most of the countries are Islamic countries
such as Indonesia, Brunei and Philippine. If Oloiya’s dried meat
able to get verified by halal, they step into those countries.
30. 30
Video Link
Part 1
https://www.youtube.com/watch?v=SS6zDDUoKV0
Brief Bio of Businesses
Part 2
https://www.youtube.com/watch?v=msI56HzK8AQ
Comparative of Businesses
Part 3
https://www.youtube.com/watch?v=m8bie1BkGnI
Recommendation of Businesses
REFERENCES
Oloiya Dried Meat. (n.d.). Retrieved May 5, 2015, from
http://www.oloiya.com/
Tuck Kee Dried Meat & Meat Floss (德记肉干) @ Pulau Tikus. (2012,
March 25). Retrieved May 8, 2015, from
http://www.jeremee89.com/2012/03/tuck-kee-dried-meat-meat-floss-
德记肉干-pulau-tikus/
Oloiya Dried Meat. (n.d.). OLOIYA.
Perraton, G. (2006). Food & technology (2nd ed.). Milton, Qld.: John
Wiley & Sons.
Brozen, Y. (1975). The competitive economy: Selected readings.
Morristown, N.J.: General Learning Press.
Goldsmith, H. (1989). Import/export: A guide to growth, profits, and
market share. Englewood Cliffs,N.J.: Prentice Hall.
