Study between two business of the same industry

1. SCHOOL OF ARCHITECTURE, BUILDING AND DESIGN
Centre for Modern Architecture Studies in Southeast Asia
Foundation of Natural & Built Environments (FNBE)
Principles of Economics [ECN30205]
Prerequisite: None
Lecturer: Tay Shir Men
Report Title : A Comparative Analysis of 2 Businesses of Similar
Industry in Different Geographical Locations
Group Members:
Alfred Loh Kai Xuan (0323581)
Carol Tang Ngie Bing (0323963)
Chong Yi Hui (0324404)
Joshua Lim Sie Khai (0323959)
Yew Wing Kee (0323555)
1

2. Table Of Content
2
Cover Page 1
Table Of Content 2
Key Summary 3
Brief Bio Of Business 4-7
Comparative Analysis Of The Business’ Competitive Traits 8-11
Recommendation 12
Appendices 13-18
Interview Notes 19-22
Comparative Analysis Summary Table 23
References 24

3. Key Summary
We were given an assignment to compare the analysis of two businesses of similar industry
in different geographical locations. We chose to compare stationery businesses in Perak and in
Klang Valley. The stationary shop we chose in Perak is Pustaka Chiew Sdn Bhd which is located in
Bidor and in Klang Valley we chose Vision Art & Stationery Suppliers, which is located in Bandar
Sunway. After completing interview and analysis the report, we have investigated various stationery
shops dotted around Vision Art & Stationery Suppliers and thus understanding this particular
market current condition. In order to have a fairer analysis of the market, the investigation subjects
were carefully selected prior to the interview. Various factors are discovered to be playing an
integral part in its success. One of the deciding factors is the strategic location of the shops which
ensure its exposure and widen its range of customers. Pricing is also important as the market has
different natures in pricing due to the geographical locations.
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4. Brief Bio Of The Businesses
Vision Art & Stationery Suppliers
1. The stationery shop that we had interviewed in Bandar Sunway is named as Vision Art &
Stationery Suppliers. The interviewee is the Co-owner which is the owner’s wife, Winny Haiu.
2. The Vision Art & Stationery Suppliers is strategically located near the famous tourist spot which
is Sunway Pyramid Shopping Complex.
3. Vision Art & Stationery Suppliers has the one and only outlet opened for the business at PJS
11/28, Bandar Sunway, Subang Jaya. Vision Art & Stationery Suppliers has in total 5 employees.
The 5 employees of Vision Art & Stationery Suppliers consists of the owner(Mr Franky), the co-
owner(Winny Haiu), and 3 permanent full time employees.
4. The main product of Vision Art & Stationery Suppliers are the material of arts & stationery. For
example, sketching pencils, outline pens and et cetera. Other than that, Vision Art & Stationery
Suppliers also provides retailing and servicing such as photostat, binding and printing services.
5. In recent times, the co-owner(Winny Haiu) of Vision Art & Stationery Suppliers said that the
range of customer source is 90% of students and 10% of outsiders( people who wish to make
advertisement). Winny Haiu has estimated that there is around 100++ of customer everyday
during school days but when all the student is having their holiday, there will be a decrease from
100 students a day to less than 100 student a day in the estimated numbers of customer in Vision
Art & Stationery Suppliers.
6. The Vision Art & Stationery Suppliers business was founded by Mr Franky (55 years old) in
1994. The co-owner, Winny Haiu married into the family of Mr. Franky and helped continue the
stationery business. Vision Art & Stationery Suppliers has been doing good to the students by
supplying art materials, stationeries, retailing and services for more than 20 years.
4

5. 7. Vision Art & Stationery Suppliers was founded by Mr. Franky started with a very small shop in
PJS area during 1994 to 1997. They started their business there because they was targeting the
student from Satio Academic Of Graphic Design. In 1998, Vision Art & Stationery Suppliers
change the business strategic to Bandar Sunway. The aim is to target a better market, which is
The One Academy College, Monash University, Sunway University & Taylor’s University
Lakeside students. The result is better and profit of the business increase and bigger model.
8. The main motive of Mr Franky Started this business is to find a business which can make
money, and know where to find the source. Mr Franky was introduce to a stationery supplier by
his friend.
9. Over the past 3 to 5 years, Vision Art & Stationery Suppliers has gained more and more profit.
They were happy that a lot of student goes there to buy stationeries and art supply. This means
that they had accomplish to make Vision Art & Stationery Suppliers famous among the art
students.
5

6. Pustaka Chiew Sdn Bhd
1. The stationery shop the we had interview in Bidor, Perak is named as Pustaka Chiew Sdn Bhd.
The interviewee is the manager of Pustaka Chiew Sdn Bhd in Bidor who is Sevon Tang Siew
Fung.
2. The Pustaka Chiew Sdn Bhd is strategically located Jalan Dewan Orang Ramai, Bidor, Perak.
The location there is strategic because there are parking spaces there and a primary school is
located near there.
3. According to the manager, Sevon, Pustaka Chiew Sdn Bhd has 15 outlets. All of the outlets are
located in West Malaysia. Pustaka Chiew Sdn Bhd has a total of 5 employees. The 5 employees
of Pustaka Chiew Sdn Bhd consists of one manager, Sevon Tang, 3 full time workers and 1 part
time worker.
4. The main product of Pustaka Chiew Sdn Bhd are stationery, practical work book and also art
supplies. Other than that, Pustaka Chiew Sdn Bhd also provides retailing and servicing such as
photostat, binding and printing services.
5. In recent times, the manager, Sevon Tang said that the estimated number of customers is around
30 customers per day. She also stated that most of the customers who come are teachers from
both primary and secondary school.
6. Pustaka Chiew Sdn Bhd business was founded by Mr. Chiew in 1997. The outlet in Bidor started
in year 2013. It is still new to Bidor but they have gained a good reputation among the people of
Bidor.
7. The main motive of Mr Chiew started this business is to find more profit to support his family.
He didn't know his business will go this way and have about 15 outlets in whole west Malaysia.
6

7. 8. Over the past 3 to 5 years, Pustaka Chiew Sdn Bhd has gained a lot of profit. Pustaka Chiew Sdn
Bhd make enough profit to support all the 15 Pustaka Chiew Sdn Bhd outlets in West Malaysia.
They hope their profit can support for more outlet until East Malaysia.
7

8. Comparative Analysis Of The Business’ Competitive Traits
8
1 In Klang, the Vision Art & Stationery Suppliers has 123 competitors, specifically in Klang
Valley. There are at least 5 competitors in Bandar Sunway market.
In Perak, the Pustaka Chiew Sdn Bhd has 160 competitors, specifically in Perak. There are at
least 1 competitors in Bidor, Perak.
2 In Klang, the Vision Art & Stationery Suppliers’ market share is big. There are at least 5
competitors which are near and threat to them which is Popular Bookstore located in Sunway
Pyramid Shopping Complex, JS Stionery & Photocopy located in PJS 11/20, Bandar Sunway,
Stationery & Media Shop located in PJS 8/2, Bandar Sunway, MCE Stationery(Chain Store)
Sdn Bhd located in PJS 11/7, Bandar Sunway, Tee Seng Resources located in Taylor’s
University Lakeside Campus & Heng Co Stationery Shop located in PJS 7. Among this 5
competitors, the top competitors in the market would be Popular Bookstore.
In Perak, the Pustaka Chiew Sdn Bhd’s market share is smaller than Vision Art & Stationery
Suppliers. There is one competitor which is near Pustaka Chiew Sdn Bhd and is a threat to
Pustaka Chiew Sdn Bhd which is KC Yue Enterprise located in Jalan Bidor Raya.
3 Vision Art & Stationery Suppliers:
Heng Co Stationery Shop
Khor Sai Ngob is the founder of the stationery shop. In 1960s, Khor Sai Ngob started business
at Sungai Wang. The target customer is the villagers from the area. But sadly, she passed away 3
years after the business started leaving her husband and son to continue her business. In the 90s,
they moved to PJS 7 because the government wanted to demolish the previous location to build
double story houses. The business revenue decrease day by day due to the changing of location.

9. 9
B. Tee Seng Resources
Loo Tee Seng, the founder of this stationary shop. He graduated from UK in 1985 with a degree
in economics. He travel for a few years and studying about the psychology of humans. He then
worked with his brother in a stationary shop located at KL Jalan Ampang in 1996. After
working with his brother for more than 20 years, he decided to retire from his work and find a
more relaxing work to pass his time. In 2010, Mr Loo meet his old friend, Datuk Loy. With the
relationship he have with Datuk Loy, he rented one of the shop lot in the commercial block of
Taylor’s U Residence to start his stationary shop business. His business in Taylor’s University
started 5 years ago. In the beginning, his business was not that good because of the lacking in
students. However, after the first year of bad business, the business finally turn around and
became more profitable.
Pustaka Chiew Sdn Bhd:
A. KC Yue Enterprise
Mr Yue is the founder of KC Yue Enterprise. He started his stationery business in Bidor earlier
than Pustaka Chiew because Pustaka Chiew did not have an outlet in Bidor yet. KC Yue
Enterprise’s stationery business went well throughout the years as there were not a lot of other
stationery businesses in Bidor. A lot of teacher’s and students went there for their stationery
supply. But when Pustaka Chiew Sdn Bhd opened a new outlet in 2012, KC Yue Enterprise’s
business started to drop as the customers went to Pustaka Chiew Sdn Bhd to buy their
stationeries. Based on the customers review, the prices of stationeries in KC Yue Enterprise are
more expensive than those in Pustaka Chiew Sdn Bhd. And Pustaka Chiew also has a discount
card for customers.

10. 10
4 Vision Art & Stationery Suppliers:
Their strategy is to stock their products once the product is finish. Mr. Franky will call the
supplier and order for new stock. Therefore, they do not have a fix time for ordering new stocks.
It all depends on how much stock there is left. The owner will stock more of the product if that
particular product is selling better. The supplier will introduce them to new products. They do
not do much about market surveying and research. They never visit any other stationary shop
for special purpose because they are quite successful in the stationery business.
Pustaka Chiew Sdn Bhd:
Actually, Pustaka Chiew Sdn Bhd has no intend to divert customers away from the competitor.
They just wanted to open another outlet anywhere to increase business sales so that they can
profit more. Customers have the right to choose where they prefer to buy stationeries. However,
because of its location that is at the commercial block, people tend to buy things there.
Therefore, the location is their strategy to attract customers to go there. Near that commercial
block, there is a tuition centre. Students and tuition teachers from that tuition centre find it
convenient to just walk down to buy stationeries and exercise books. Besides, the pricing of
stationeries in Pustaka Chiew Sdn Bhd is cheaper than the competitor.
5 Nowadays, it is hard to enter this market because the competitors out there are much more
stronger than imagined. One cannot stand still in this business if they are not competitive
enough. To start a stationery business, you need around RM150,000.00 capitals. Besides, you
need to know a good and cheap supplier and also some basic knowledge about the machine
being used for a stationery business. Due to Good & Services Tax( GST ), Income Tax and et
cetera starting a stationery business is hard.
6 Vision Art & Stationery Suppliers:
Their business is very good. Because Vision Art & Stationery Suppliers is famous among art &
design students around Bandar Sunway. Vision Art & Stationery Suppliers’ is a monopolistic
business.
Pustaka Chiew Sdn Bhd:
Pustaka Chiew Sdn Bhd’s stationery business is more succssful than KC Yue Enterprise because
of its lower stationery prices and also a discount card for loyal customers. Putsch Chiew Sdn
Bhd is a monopolistic business.

11. 11
Competitive Traits
Vision Art & Stationery
Suppliers
Pustaka Chiew Sdn Bhd
Number of Competitors 120-125 firms 150-170firms
Barrier to Entry
• Weak
• More diversified and
specialised goods with
cheaper price
• They has high capital
• It is located in the vicinity of
Sunway Pyramid and a
residential area
• High exposure to the public
• Wider range of customer
• Weak
• Less diversifies goods but
with cheaper price
• Low capital
• Located at a commercial block
with a tuition centre nearby
• Exposed to the towns people
in Bidor only
• Narrow range of customers
Differentiated or
Standardized Products
• Differentiated
• Their goods more specify to
Art & Design materials
• A1 to A5 size drawing paper
& mounting board
• Art Eraser
• Colour Spray
Standardised
Pricing Power
• Price Maker
• Few different products
• High exposure to the public
• Price Maker
• Normal stationery products
• Less exposure to public
Other Characteristics
• No close product substitutes
found nearby
• Inconstant advertising
• Mutual dependence
• Many Close Product
substitutes found around the
area
• Constant advertising
• No mutual dependence
Verdict Monopolistic Competition Monopolistic Competition
8 Based on my analysis, Vision Art & Stationery Suppliers wound be the more
commercially successful business. One of the reason why Vision Art & Stationery
Suppliers is more successful is because although it is located in Klang Valley and
has a lot of competitors, Vision Art & Stationery Supplier still remains popular
among a lot of students from various university in Klang Valley. Although in
Perak the number of competitors are less, but Pustaka Chiew Sdn Bhd is not as
commercialised as Vision Art even with its 15 outlets.

12. Recommendation
Vision Art & Stationery Suppliers
- Limited space in Vision Art is the biggest problem in running the business. Since Vision Art is
popular among the arts students, it is always crowded by customers. This makes it hard for
anyone to move around. Sometimes, when the suppliers comes, they will carry big boxes of
stationeries. They tend to block the entrance into Vision Art. Therefore, a larger space is needed
for the customers and the existing stocks.
- Besides, some students complain that the pricing in Vision Art is quite expensive. Students who
have little income has difficulty in buying stationeries because too expensive. They should come
up with a student discount card and prices.
Pustaka Chiew Sdn Bhd
- Pustaka Chiew is lacking in art suppplies. They have a lot of exercise books for school because
teachers will buy the books there for their classes. But Pustaka Chiew needs to widen their
customer target to not only school teachers. They should target also art students. Therefore, they
should supply more art products.
- They should survey their stocks that come in because some of their products spoil easily after the
customers bought them.
12

13. Appendices
Vision Art & Stationery Suppliers
Contact Details : (Stationery Shop)
Contact Details : (co-manager)
13
Address 3G, Jalan PJS 11/28, Bandar Sunway, 47500 Subang Jaya,
Selangor Darul Ehsan.
Contact Number 03-5636 0168
Fax Number 03-4636 0163
Email Address visionart@hotmail.com
Name Winny Haiu
Contact Number 016-297 9978
019-336 7457

14. Interview notes
14

15. Picture
15

16. Pustaka Chiew Sdn Bhd:
Contact Details : (Stationery Shop)
Contact Details : (Manager)
16
Address 12, PT 2328, Jalan Dewan Orang Ramai, 35500 Bidor, Perak
Darul Ridzuan.
Contact Number 05-434 1091
Fax Number 05-434 1091
Email Address none
Name Sevon Tang Siew Fung
Contact Number 05-434 1091

17. Interview notes
17

18. Picture
18

19. Interview
Business type: Stationery
Business name: Vision Art & Stationery Suppliers
Location: 3G, Jalan PJS 11/28, Bandar Sunway, 47500 Subang Jaya, Selangor Darul Ehsan.
Office number: 03-5636 0168
Interviewee: Winnie Haiu, Co-owner
1. When was the business founded?
In 1994.
2. Who are the key founders?
Mr Franky is the founder.
3. What prompted the founders to start this business?
They started their business there because they was targeting the student from Satio Academic Of
Graphic Design. He started this business to make money.
4. What are your main products or services?
Art materials & stationery. We also provide retailing and services such as photostat, binding and
printing services.
5. Who are your customers?
The estimated number of customers is around 100++ per day. 90% of the customers are students
while the other 10 % are outsider or promoters.
6. What is the business’ annual revenue figure?
10K
7. How many branch of stores do you have?
This is the only outlet.
8. Can you provide us a brief history of your business and its most recent developments?
Mr Franky just wanted to do something that can make profit. Mr Franky was introduce to a
stationery supplier by his friend. From then on, he started his stationery business until now.
9. Do you have many competitors? Who are they?
There are a few competitors near here but we did not bother about them. I can name a few.
They are POPULAR in Sunway Pyramid and JS Stationery & Photocopy,
10. Is the business constantly facing strong competition from other competitors?
19

20. Of course there is competition but i wouldn’t say that the competition is a problem to us
because we are famous among the arts students already.
11. What strategies have you used to compete with them?
Sell more products to get more profits. With the profit, we buy more stock and sell more to earn
more.
12. How often do you release new products?
We release new products if the supplier supply new products for us. And if we think that the
product is OK, then we will stock and sell.
13. Are your pricing strongly affected by your competitors?
No.
20

21. Business type: Stationery
Business name: Pustaka Chiew Sdn Bhd
Location: 12, PT 2328, Jalan Dewan Orang Ramai, 35500 Bidor, Perak Darul Ridzuan.
Office number: 05-434 1091
Interviewee: Sevon Tang Siew Fung, Manager
1. When did the business here started?
In 2013.
2. Who are the key founders?
Mr Chiew is the founder.
3. What prompted the founders to start this business?
The main motive of Mr Chiew started this business is to find more profit to support his family.
He did not know that this business will have 15 outlets.
4. What are your main products or services?
The main products are stationery, practical work book and also art supplies. Besides, they also
provide retailing and servicing such as photostat, binding and printing services
5. Who are your customers?
The estimated number of customers is around 30 per day. Most of the customers are teachers.
6. How many branch of stores do you have?
All together there are 15 outlets.
7. Can you provide us a brief history of your business and its most recent developments?
Mr Chiew was just a normal guy who wanted to provide for his family. That is why he started
this business. Throughout the years, Pustaka Chiew has gained a lot of profit.
8. Do you have many competitors? Who are they?
There are not many competitors in Bidor as Bidor is a small town. There is only one competitor
which is KC Yue Enterprise. KC Yue Enterprise has been in the area long than this outlet. But
Business is going well for us. No worries.
9. Is the business constantly facing strong competition from other competitors?
We are not facing much competition from the other outlet because our prices is cheaper than
KC Yue Enterprises. We also have friendly staffs.
10. How often do you release new products?
We release products depending on the main outlet. It is very hard to say.
21

22. 11. Are your pricing strongly affected by your competitors?
No.
22

23. Comparative Analysis Summary Table
23
Competitive Traits
Vision Art & Stationery
Suppliers
Pustaka Chiew Sdn Bhd
Number of Competitors 120-125 firms 150-170firms
Barrier to Entry
• Weak
• More diversified and
specialised goods with
cheaper price
• They has high capital
• It is located in the vicinity of
Sunway Pyramid and a
residential area
• High exposure to the public
• Wider range of customer
• Weak
• Less diversifies goods but
with cheaper price
• Low capital
• Located at a commercial block
with a tuition centre nearby
• Exposed to the towns people
in Bidor only
• Narrow range of customers
Differentiated or
Standardized Products
• Differentiated
• Their goods more specify to
Art & Design materials
• A1 to A5 size drawing paper
& mounting board
• Art Eraser
• Colour Spray
Standardised
Pricing Power
• Price Maker
• Few different products
• High exposure to the public
• Price Maker
• Normal stationery products
• Less exposure to public
Other Characteristics
• No close product substitutes
found nearby
• Inconstant advertising
• Mutual dependence
• Many Close Product
substitutes found around the
area
• Constant advertising
• No mutual dependence
Verdict Monopolistic Competition Monopolistic Competition

24. References
Websites
Facebook logo. (n.d.). Retrieved January 18, 2016, from https://www.facebook.com/pages/Pustaka-
Chiew-Bidor/570078379740073
Google. (n.d.). Retrieved January 18, 2016, from https://www.google.com/?gws_rd=ssl#q=pustaka
chiew bidor
Google. (n.d.). Retrieved January 18, 2016, from https://www.google.com/?gws_rd=ssl#q=vision
art
PUSTAKA CHIEW (BIDOR). (n.d.). Retrieved January 18, 2016, from https://foursquare.com/v/
pustaka-chiew-bidor/5311b8e111d286ccf2f348ad
Vision Art & Stationary Suppliers. (n.d.). Retrieved January 18, 2016, from https://foursquare.com/
v/vision-art--stationary-suppliers/4d9ea7df9bf0a35dace3ff0a
Eyeing the Four Basic Market Structures. (n.d.). Retrieved January 18, 2016, from http://
www.dummies.com/how-to/content/eyeing-the-four-basic-market-structures.html
Person
Haiu, W. (2016, January 1). Vision Art Interview [Personal interview].
Tang, S. (2015, December 27). Pustaka Chiew Interview [Personal interview].
Map
Vision art - Google Search. (n.d.). Retrieved January 18, 2016, from https://www.google.com/
search?q=vision art&rlz=1C5CHFA_enMY671MY675&oq=vision art&aqs=chrome..
69i57j69i60j69i59l2j69i60l2.2438j0j7&sourceid=chrome&es_sm=119&ie=UTF-8#q=stationery
shop in klang&rflfq=1&rlha=0&tbm=lcl
Vision art - Google Search. (n.d.). Retrieved January 18, 2016, from https://www.google.com/
search?q=vision art&rlz=1C5CHFA_enMY671MY675&oq=vision art&aqs=chrome..
69i57j69i60j69i59l2j69i60l2.2438j0j7&sourceid=chrome&es_sm=119&ie=UTF-8#q=stationery
shop in perak&rflfq=1&rlha=0&tbm=lcl
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