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Proton Supply Chain Challenges

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Submitted By CWChoong
Words 7705
Pages 31
GLOBAL SUPPLY CHAIN
Term Paper : Proton Supply Chain Challenges

Table of Contents

1.0 Company Background 1-4
2.0 Problem Statement 5-7 3.0 Significant of Study 8-10 4.0 Proton Supply Chain Weaknesses 11-18 5.0 Recommendation 19-29 6.0 Conclusion 30 7.0 References 31-32

1.0) Company Background
First national car, Proton Saga project was formed embark from the Look East Policy. Perusahaan Otomobil Nasional Sendirian Berhad (PROTON) was formed in 1983 as a company of national car to manage the operation of the national car project. "The Proton Saga is more than just a quality automobile. It is a symbol of Malaysians as a dignified people" quoted by Tun Mahathir Mohammad during the launched of the first model of national car, Proton Saga in 1985.
Anyhow, PROTON facing the downfall when Perusahaan Otomobile Kedua Sendirian Berhad (PERODUA) launched in 1993, producing minicars and superminis models which target the different market segments as Proton. For example in 2002, Proton become the 1st of the car supplier in Malaysia, acquired 49.43% of the market share. Anyhow, in 2006, Perodua overtake Proton as the 1st car supplier in Malaysia with 42% of market share, and Proton was 10% behind it. This trend maintain consistently until latest statistic in 2011, Perodua still become the 1st supplier in Malaysia acquired 34% of the market share while Proton maintain the 2nd place with 33% market share. Furthermore, in view of the stock market, the Proton performance also become very poor, from earning per share 216 cents in 2002, reduce drastically to 8.5 cents in 2006, basically it has lost the trust from the shareholders and stakeholders.
Perusahaan Otomobil Nasional Berhad, better known as Proton, was founded in May 1983 as a joint venture between the state owned Heavy industries

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