Bonia Corporation Bhd has posted positive earnings in FY17 including its latest fourth quarter ending June 30, 2017, but analysts are unsure if the company’s strategy to move into higher margin products will pay off. The company is mainly involved in the manufacturing and retailing of luxury leather goods, apparel, accessories as well as licensed international brands such as Braun Buffel. To improve its earnings potential, Bonia has adjusted its pricing strategy by introducing higher-margin products, reducing discounts given out to customers as well as adjusting the prices for new product ranges, in particular for the Bonia and Braun Buffel brands. But will this be enough to sustain its profit record? Analysts say it could be a tough road ahead for Bonia.

Assume that you are one of the analysts and Bonia has approached you to assist them. What would be your recommendations? You are required to obtain as much information as possible on the status and forecast about the industry from the internet or any other sources. You may use Porter’s Five Forces model to help you in the analysis before you make your recommendations.

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Company Background Brief Introduction Bonia is a wellknown and recognized Asian Fashion Brand which sells luxury leather products such as handbags purses apparel and accessories It was formed in the y... View the full answer