Strategic and Change

Management
G RO U P M E M BE R
1.
2.
3.
4.

HAIDAR MOKHTAR
WU HAOTAO
SEMA
RAM

Company Background

Parkson opened its first store at Sungei Wang Plaza

in 1987
It was opened by The Lion Group
Parkson has more than 35 outlets in Malaysia
It has more than 30 branded department stores
Now Parkson operates in Malaysia, China, Vietnam,
Indonesia, Myanmar and Sri Lanka
Parkson headquarters is in Klang, Selangor, Malaysia

Porters Five Forces

The Threat of New Entrants
The competitors of Parkson can be classified into

two types, direct and indirect

Direct as Isetan and Indirect as Tesco
It is hard for competitors to venture into this
market because the barrier of entry is very high
The barrier of entry is high because these
businesses are already well established in the
market place

Porters Five Forces

Rivalry among Competitors
The competition in the market place is considered to

be strong because these businesses target the same

group of people
Promotions are made by Parkson to lure the
customers
Parkson elite card where shopping can be rewarding

Porters Five Forces

The Threat of Substitute
The consumer might not choose to purchase from

Parkson and look for another market

Parkson are giving a place for vendors to work their
business
Other competitors might offer a lower price for the
vendors to attract them to leave Parkson

Porters Five Forces

The Bargaining Power of Buyers
The bargaining power of buyers in Parkson are low

because all of the prices are fixed and non-negotiable

For the vendors, it is believed that the better the
brand name, the better the bargaining power of
buyers
When huge companies venture into Parkson, it will
raise the value of Parkson in the eyes of the people

Porters Five Forces

The Bargaining Power of Suppliers
The bargaining power of suppliers are for the

vendors because the goods of Parkson come from

them
The better the brand name, the better bargaining
power for suppliers
Not all vendors are allowed to simply venture into
Parkson. Parkson will study about the company first

SWOT Analysis
Strengths
Good reputation for its customers and suppliers
Customers and vendors both are customers of

Parkson
Quite easy to reach Parkson, such as facebook,
Parkson official website

SWOT Analysis
Weaknesses
It targets only those customers who are rich

specifically high income ladies, and most of the

people believed Parkson just a place for high income
ladies instead of everyone
Should focus on marketing strategy and expanding
consumer to fit into the marketplace and compete

SWOT Analysis
Opportunities
Should be proactive approach towards talking and

managing business risk.

Must be better communication of message within the
organization.
Should let employees know about the real issues

SWOT Analysis
Threats
The shift in consumer taste and its hard for

companies to cater to every single one of the

customers need
During economy downturn, the purchasing power of
customers might fall.

STRATEGIC COMPETITIVE ADVANTAGE AND MAJOR

WEAKNESS.
Profit maximisation is the aim of the owners and
shareholders. Company will try to make the most profit
as possible.
Parkson needs to focus on its sales growth in order to
achieve and maximise their revenues and profits
The change in outlook reflects that Parkson Retail
Group's weak performance will continue for some time
due to China's economic slowdown and intensified
competition in the retail sector," said vice-president and
senior analyst Alan Gao in a report.

SWOT ANALYSIS BASED ON COMPETITIVE ADVANTAGE

Strength
Parkson was one of
the famous
shopping mall.
In every department
Parkson the product
is highly
diversified.
It is one of a good
strategy to increase
the profit.

Weakness
Most of the product sell by them
were more to the female department
comparing with department.
Parkson should implement
differentiation strategy and make
the diversification in to more wide
area.
Focus more on the product line and
make it balance well be one of the
great solutions for this matter.

Opportunities
Parkson will attempt to upgrade its
store image and profile, diversified
product line to other industry and
also can merger or joint-venture
with other sector industry.
Parkson mergers with other sector
industry or use differentiation
strategy, helps Parkson establish
good reputation by thrust business
into the limelight and open doors
for Parkson.

Threats
Other competitors
might gains
advantages on
Parkson strategy
and increase their
sales.
There will be
some of the
customer dislike
the strategy of the
Parkson.

RECOMMENDATION

Parkson had started to pay attention to the environmental

impact of our economic practices.
To ensure that our communities are healthy, pleasant places to
live.
Parkson should propose the shop outlet to have a zero plastic
bag day in order to archive a green environment target.
Zero plastic on Saturday was not enough to influence the
customer to be more green environmental minded but should
apply to other day as well.

STRATEGIC RECOMMENDATION OF PARKSON

The strategic recommendation based from the companys
competitive environment which is their customer gets bored with the
unchangeable environment to shop in Parkson.
Moreover, Parkson has to change their image and shopping
environment to create good customer value.
Most of Parkson outlet had reconstructs their building, painting
their building. Therefore, I believe that it is not enough to satisfy the
customer needs.

Parkson can try to create their own super market or hyper market
instead of renting their space to Cold Storage or Giant which can help
them gain more competitive advantage and have a better shopping
environment for their customers.
On the other hand, Parkson needs to diversify high in order to
increase the profit.
Moreover, like I mentioned above Parkson needs to focus on their
product line where Parkson would able to gain more competitive
advantages.
Likewise, with an interesting or rewards which have been
attractive, enhances the influence for their customers to spend more
on their products.

FEASIBILITY

JUSTIFICATION OF STRATEGY
ACCEPTABILITY

The justification strategy of Parkson, demote and reflects the

growth of the structural challenges which Parkson is currently
facing.
This includes intense competition from various high rental,
retailers, and problems in upgrading new stores.
Moreover, the drawbacks of development together with it
aggressive store expansion strategy will continue to pressure the
companys profitability and credits of their organization.

Conclusion
Based on the overall assignment, Parkson had did a

great jobs and able to maintain its competitive

positions. After analysis the Parkson environment
and other things, it has shown that Parkson able to
develop more and gain more competitive advantage
in futures.