Question: Answer based on the case study. Fresh by name and nature The Segi Group is best known among the general public for its Segi Fresh

Answer based on the case study. Answer based on the case study. Fresh by name and
Answer based on the case study. Fresh by name and
Fresh by name and nature The Segi Group is best known among the general public for its Segi Fresh supermarkets, but the group actually consists of five business units that cumulatively give it full control over sourcing, logistics and retail. Segi Agriculture Sdn Bhd and Segi Marine Sdn Bhd source for fresh produce, and seafood and meat respectively, Segi Cash & Carry Sdn Bhd operates the supermarkets, Segi Logistics Sdn Bhd manages its extensive distribution and transportation network and Segi Realty Sdn Bhd is in charge of store location sourcing and maintenance. Yes, the company even has its own property arm. In fact, the brand new store, a 30,000 sq ft wonderland of affordable essentials in Pandamaran Klang is located on land owned by the group that used to host its wholesale warehouse While Segi Fresh is not yet a nationwide name with outlets centred in Selangor, Kuala Lumpur, Putrajaya, Negeri Sembilan, Melaka and Perak, it is only a matter of time before it expands further north and south. Competition is rife but the supermarket chain has a stronghold in the markets within which it operates due to the observations Chui made when he was a night market trader Quality and affordability were key in pushing the brand to prominence. By establishing direct relationships with manufacturers, farmers, and fisherman, Chui was able to bring in groceries and the freshest fruit, vegetables, meat and seafood at low prices, transferring that cost savings to customers. In the early years, Segi Fresh was positioned as a concept store, bringing that pasar malam energy into cleaner and cooler store environments with all-day operating hours. Customers could even haggle over prices of the fresh produce but the practice was phased out recently as acquiring total control over the supply chains allowed the group to offer the best value. Bargaining is no longer relevant to us. It used to be a mechanism to attract customers but all our products, including our own brand items are already competitively priced," says chief operating officer Fong Leong. "We now focus on freshness (it's in our name, after all), quality and variety. In a year, for instance, we bring in over 100 types of fish according to the season. Our customers comprise lower to middle income individuals or families and bulk buyers such as restaurants, with over 90% of our customer base representing the Malay market." Unlike hypermarkets, which are large enough to be standalone destinations and can draw people to them, Segi Fresh supermarkets bring their business to customers, mostly in residential areas. This proximity to customers worked well for the company during the Movement Control Order and its subsequent phases, with fresh produce, meat and seafood flying off its shelves. Ensuring that inventory keeps up with demand is the SAP (Systems, Applications and Products in Data Processing) system the Segi Group subscribe to making it one of the few companies locally to invest in the state-of-the-art enterprise-wide management software. The sprawling business employs some 1,500 employees. It priorities talent development and has an in-house training programme that grooms staff progression. "Job creation and employing local talent are some of the ways we give back to the community," explains Fong. "Malaysia is overly reliant on foreign workers but we always hear about graduates who are unemployed. We are trying to attract locals back into the retail industry while offering them value. The fast-track programme not only realises potential and rewards performance but also Fresh by name and nature The Segi Group is best known among the general public for its Segi Fresh supermarkets, but the group actually consists of five business units that cumulatively give it full control over sourcing, logistics and retail. Segi Agriculture Sdn Bhd and Segi Marine Sdn Bhd source for fresh produce, and seafood and meat respectively, Segi Cash & Carry Sdn Bhd operates the supermarkets, Segi Logistics Sdn Bhd manages its extensive distribution and transportation network and Segi Realty Sdn Bhd is in charge of store location sourcing and maintenance. Yes, the company even has its own property arm. In fact, the brand new store, a 30,000 sq ft wonderland of affordable essentials in Pandamaran Klang is located on land owned by the group that used to host its wholesale warehouse While Segi Fresh is not yet a nationwide name with outlets centred in Selangor, Kuala Lumpur, Putrajaya, Negeri Sembilan, Melaka and Perak, it is only a matter of time before it expands further north and south. Competition is rife but the supermarket chain has a stronghold in the markets within which it operates due to the observations Chui made when he was a night market trader Quality and affordability were key in pushing the brand to prominence. By establishing direct relationships with manufacturers, farmers, and fisherman, Chui was able to bring in groceries and the freshest fruit, vegetables, meat and seafood at low prices, transferring that cost savings to customers. In the early years, Segi Fresh was positioned as a concept store, bringing that pasar malam energy into cleaner and cooler store environments with all-day operating hours. Customers could even haggle over prices of the fresh produce but the practice was phased out recently as acquiring total control over the supply chains allowed the group to offer the best value. Bargaining is no longer relevant to us. It used to be a mechanism to attract customers but all our products, including our own brand items are already competitively priced," says chief operating officer Fong Leong. "We now focus on freshness (it's in our name, after all), quality and variety. In a year, for instance, we bring in over 100 types of fish according to the season. Our customers comprise lower to middle income individuals or families and bulk buyers such as restaurants, with over 90% of our customer base representing the Malay market." Unlike hypermarkets, which are large enough to be standalone destinations and can draw people to them, Segi Fresh supermarkets bring their business to customers, mostly in residential areas. This proximity to customers worked well for the company during the Movement Control Order and its subsequent phases, with fresh produce, meat and seafood flying off its shelves. Ensuring that inventory keeps up with demand is the SAP (Systems, Applications and Products in Data Processing) system the Segi Group subscribe to making it one of the few companies locally to invest in the state-of-the-art enterprise-wide management software. The sprawling business employs some 1,500 employees. It priorities talent development and has an in-house training programme that grooms staff progression. "Job creation and employing local talent are some of the ways we give back to the community," explains Fong. "Malaysia is overly reliant on foreign workers but we always hear about graduates who are unemployed. We are trying to attract locals back into the retail industry while offering them value. The fast-track programme not only realises potential and rewards performance but also

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!