AEON invitation to Japan to help modernize the

AEON CO.(M) BHD Retail Malaysia
AEON CO. (M) Bhd is one of the largest retailers in Malaysia. They were incorporated on 15 September 1984. AEON was the first company to respond to the Malaysian government’s invitation to Japan to help modernize the Malaysian retail industry. AEON is principally engaged in the operation of chain departmental stores and supermarkets, selling a range of commodities, including clothing, food and household items, and other merchandise and property management services in the malls.
As at 31 December 2017, AEON CO. (M) Bhd currently has operated 34 stores and also operates a total of 26 shopping malls. At present, the stores and malls are diversely spread out geographically in Malaysia which is Kuala Lumpur, Selangor, Johor, Perak, Melaka, Penang, Negeri Sembilan, Kelantan, and Sarawak. Moreover, they are targeted urban middle and upper middle class households.

AEON SWOT Analysis
Strengths Ranked among the top ten worldwide in the retail market.
Good revenue and financial position with consistent performance.

They have a strong workforce of over 80,000.
Weaknesses Very less presence of world wise compared to global leaders.

The inventory holding is large.

Opportunities It is increasing demand of products.

They also operates sister companies in China, Hong Kong and Malaysia.

Threats The price of raw material is increasing nowadays due to SST and Inflation.

The local and international competition is higher than before.

Government policies that affecting the business.

Competitive Analysis for AEON Retail Malaysia
99 Speedmart
99 Speedmart is considered to be one of AEON Retail’s largest competitors in Malaysia. The business started at 1987 and founded by Mr Lee Thiam Wah and as a Managing Director of the 99 Speedmart Sdn Bhd in Klang, Kuala Lumpur. 99 Speedmart currently has 1000 outlets in Malaysia. The stores are located all over the Selangor, Negeri Sembilan, Kuala Lumpur, Perak, Pahang, Melaka, Johor, Sabah, and Sarawak.

Back in time in 1987 year, 99 Speedmart was known as ‘Kedai Runcit Hiap Hee’. It was open in residential area, which is in the area of Jalan Tepi, Sg. Selangor. Many people around that area can easily buy their needs and wants. Mr Lee Thiam Wah, the CEO of 99 Speedmart see that opportunitu in going further in retailing business is there. Hence, he was enlarging his small mini markets and changed the name ’99 Speedmart’ in year 2000.

99 Speedmart target audience is basically a residential area. This is because it is easy for the consumers. At the same time, it is also significant with their slogan which is “Near” and “Save”.
99 speedmart SWOT Analysis
Strengths The company has a wide range of products available.
Good quality and cheap products.

Wide supplier network that help them source products at very low cost to their stores and help them sell at low price.

They have more than 5000 employees and the staffs are very good at selling and push sales up.

Weaknesses High customer and product overcrowding can affect the business.

People who perceive it as cheap and this might hurt attracting new customers who do not want to be associated with the cheapest store.
Opportunities With the global recession and spending cuts, they have a huge potential to tap into new customers.

To build a brand of the business and eliminate it as a shame for cheap stores.

Threats Some people are opposed to the establishment 99 speedmart, because people think that they will tone down the glamour of the high street.
Criticized their safety procedures, they were fined in two separate inferior product cases.
GCH Retail (M) Shn BhdGiant in Kuala Lumpur was established in 1944, it is a small grocery store. And in 1974, Teng Minimarket Center was opened in Bangsar. Moreover, Dairy Farm International Holdings was purchased a 90% of share in the chain in 1999, and Teng family retained the balance. By 2003, the chain’s holding company had been renamed Dairy Farm Giant Retail Sdn Bhd, which has eight Giant hypermarkets and 10 supermarkets included 3 Cold Storage supermarkets. Presently, the company is operating as a subsidiary of Dairy Farm International Holdings Limited and its name is changed to GCH Retail (M) Sdn Bhd.

GCH Retail (M) Sdn Bhd currently operates 54 Giant Stores in nationwide. The stores are located all over the Selangor, Negeri Sembilan, Kuala Lumpur, Perak, Pahang, Melaka, Johor, Sabah, and Sarawak. In addition to this, they are also a retailer chain in Singapore, Brunei, Indonesia, Cambodia, and Vietnam.
Giant SWOT Analysis
Strengths Giant is one of the largest retailers in retail industry of Malaysia. They have over 85 branches (including offices and buildings) spread throughout the country.

Giant branches are strategically located throughout the country and state. It is easier for their customers.

Weaknesses Giant are experiencing a high turnover rate with their employee especially in the operation department. For example, many of their employees resign after only working one or two months in their supermarket, which is not good for them as they will need to employ new employees.

The large size leads to inefficiency in bureaucracy. This means that their decision making is centralized in their headquarters.
Opportunities Giant have ready customers, households now are increasing and everyone needs to buy household products, this creates a good demand for them.
Giant can try to increase the variety of their house brand to compete with their competitors.

Threats There is stiff competition within the industry.

Although their house brand is known by their customers, but it is not their customers preferable brand, their customer still prefers other established brand name products compared to their.
Online shopping also as a threat that faced by Giant. In IT era, online shopping can create threats for Giant conventional brick-and-mortar type of business.

Tesco is a British multinational grocery and general merchandise retailer headquartered in Welwyn Garden City, Herfordshire, England. It has stores in seven countries in Asia and Europe and is a leader in the UK grocery market (with a market share of approximately 28.4%), Ireland, Hungary and Thailand.
Jack Cohen is the founder of Tesco in 1919 as a group of market stalls. Tesco’s name first appeared in 1924, after Cohen purchased a batch of tea from TE Stockwell and added the first letter to the first two letters of his last name and the 1931 in Burnt Oak, Barnet. A Tesco store is combined. His business expanded rapidly, and by 1939 he had more than 100 Tesco stores across the country.
In May 2002, Tesco was established its first store in Malaysia with the opening of its first hypermarket in Puchong, Selangor. Tesco Malaysia currently operates 49 Tesco and Tesco Extra stores.

Tesco SWOT Analysis
Strengths Tesco has increasingly diversified geographically, relates to the field of books, clothing, electronics, furniture, gasoline and software retail, financial services, telecommunications and Internet services, etc.
Tesco follows the new advanced packaging technology to provide consumers with a unique and differentiated positioning.
Tesco has more than 500,000 employees in worldwide.

Have nearly 6500 stores around 14 countries.

They adopted innovative marketing and advertising strategies.

Listed on London Stock Exchange and FTSE Index.

Weaknesses The company faced controversies which created a few issues.

They are limited presence in those emerging countries when compared to few competitors.
Opportunities Tesco may planning to enter into emerging markets and expand their business.

Use digital media to expand its reach.

The acquisition of smaller chains store and tie-ups can help drive Tesco’ business.

Threats Constantly improvement is required to achieve uniqueness, if not the Goods and services can be imitated by their competitors.

The business operations can be threatened by government policies and taxation.

There are high competitions from supply sides since it is difficult maintaining the relationship with them.


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