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An Exploratory Sudy on the Market Potential for Industrial Rubber Boots in Malasia

Autor:   •  November 20, 2018  •  1,498 Words (6 Pages)  •  421 Views

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costs in Malaysia would result to increased manufacturing costs, as compared to China which enjoys low labor costs.

Advancement in technology has resulted to the presence of cheaper substitutes such as industrial boots made from PVC, PU, etc.

Conclusion/Recommendation

Based on the results of the Harvik company, determining the status both internal and external factor that affects the company. Identifying the challenges that occur, the company must have to analyze carefully and implement those necessary strategies that could also prevalent the realistic implementation. After identifying the challenges that the company needs to address and analyzing its strengths, weaknesses, opportunities and threats. The following recommendations are based on the study scenario that conducted of the research and based on the facts that company status nowadays.

The study recommended that Harvik should focus on its competitive edge, that is, manufacturing high value and high quality rubber boots that are less price-sensitive compared to the low-end products of China and Eastern Europe, considering as well that its highly skilled workforce (aging workforce)and advanced technology contribute significantly to its success in the rubber industry.

The study also recommended that Harvik could consider shifting its strategy from being an original equipment manufacturer (OEM) to own-brand manufacturing (OBM), which will enhance earning potential (better pricing), product standardization (improved productivity) and quick response (short delivery lead time) that little by little will be known publicly not only exclusive for European market but also in the world wide market.

The company must consider, explore and add other product categories such as mining boots, chainsaw production boots and hiking boots in order to hold another strength that the company could probably gain.

Additional recommendations and conclusion

Harvik company earned success in the rubber boots industry in the market, aside of having an aging workforce where no age limit is implemented (aging workforce). Harvik must consider as well of giving promotion in the workforce, must promote intensive rewards and benefits in order to attract employees and other millennial to work in the company. Another strategy that could possibly work-out despite of another cost, the company must assign employee to participate international marketing like learning another culture in different respective country that probably in the future will helps its expansion. Perhaps, Viking Fotty A/S is well-known in the European market, Harvik extension of finding answers is a cross cultural study directly by sending employee to train and skilled to process genuine answer of implementing prices of the product as well as its volume that should produce in that particular area.

Harvik should widen its internal function by hiring skilled marketing practitioners to perform the place of Viking Fotty A/S in Europe which is the large competency of the company.

;It should maximize its internal marketing function by recruiting seasoned marketing practitioners who would not only replace but also outperform Viking Fottoy A/S in Europe which is its largest target market. It might not be a wise decision to explore the possibility of tapping into the market potential of second-hand quality rubber boots in Malaysia because doing so would go against the company’s core strength which is manufacturing high quality products. The irreparable damage this could cause to the company’s positive reputation which it took many years to build might outweigh its potential financial benefits, considering that the market in Malaysia for second-hand quality rubber boots might not be significant. To address the problem of an aging workforce and shortage of workers in Malaysia for the rubber boots industry, the company should offer competitive compensation packages and retirement benefits that would attract skilled workers into the company. Harvik could also conduct advertising and public relations campaigns in order to build public awareness and good corporate image that would make people want to belong to the company. The timing of recruitment and training of new workers should also be strategically done in response to the older workers who are actually due for retirement.

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