A. KDH Food Industry Berhad (KDH) was established in 1975. KDH is a manufacturer of biscuits...

 

Transcribed Image Text:

A. KDH Food Industry Berhad (KDH) was established in 1975. KDH is a manufacturer of biscuits and snacks. KDH was committed to producing high quality and healthy food products and continuing to satisfy its customers. KDH continuously strive for perfection, in which every piece of biscuits and snacks is baked and produced with much love and passion. Until now, KDH had a well-established market position and brand recognition in Malaysia. For its future business growth, KDH management view that the company needs to expand its market. The expansion is vital due to the high intensity of competition and limited future growth with the market reaching saturation in the Malaysian market. In the recent management meeting, top management decides to move into new markets in other countries, offering its existing product range. For the first move, KDH agreed to enter the market in Indonesia. Mrs Cindy, a Marketing Director, proposed that the easy way to enter an international market is through a joint venture with a company already established in Indonesia. She then asked the business development team to undertake a feasibility study to explore the viability of the proposed strategy to sell KDH's products in Indonesia. As part of the feasibility study, there will need to be some assessment of industry competition and the attractiveness of the market in Indonesia. REQUIRED: (a) (b) Discuss how KDH's business management team could use Porter's Five Forces model to assess Indonesia's biscuits and snacks industry competition. (10 Marks) Determine how KDH could use information technology/systems in Porter's Five Forces model to win the market over its competitor in Indonesia. (5 Marks) A. KDH Food Industry Berhad (KDH) was established in 1975. KDH is a manufacturer of biscuits and snacks. KDH was committed to producing high quality and healthy food products and continuing to satisfy its customers. KDH continuously strive for perfection, in which every piece of biscuits and snacks is baked and produced with much love and passion. Until now, KDH had a well-established market position and brand recognition in Malaysia. For its future business growth, KDH management view that the company needs to expand its market. The expansion is vital due to the high intensity of competition and limited future growth with the market reaching saturation in the Malaysian market. In the recent management meeting, top management decides to move into new markets in other countries, offering its existing product range. For the first move, KDH agreed to enter the market in Indonesia. Mrs Cindy, a Marketing Director, proposed that the easy way to enter an international market is through a joint venture with a company already established in Indonesia. She then asked the business development team to undertake a feasibility study to explore the viability of the proposed strategy to sell KDH's products in Indonesia. As part of the feasibility study, there will need to be some assessment of industry competition and the attractiveness of the market in Indonesia. REQUIRED: (a) (b) Discuss how KDH's business management team could use Porter's Five Forces model to assess Indonesia's biscuits and snacks industry competition. (10 Marks) Determine how KDH could use information technology/systems in Porter's Five Forces model to win the market over its competitor in Indonesia. (5 Marks)

Answer rating: 100% (QA)

a Porters Five Forces model can be a valuable tool for KDHs business management team to assess the competition within Indonesias biscuits and snacks industry Heres how they could apply each force Thre... View the full answer