A CASE STUDY OF SAIC MAXUS AUTOMOBILES IN MALAYSIA

Publication Date : 01/05/2018


Author(s) :

WENDY EE WEI CHY, NORMALA S.G.


Volume/Issue :
Volume 3
,
Issue 2
(05 - 2018)



Abstract :

SAIC Motor Corporation Limited is a state-owned automotive company in China. It mainly performed the manufacture, production, sales and development of the passenger cars, commercial vehicles as well as the auto parts of the vehicles. SAIC Motor has established its own brand, Roewe, MG and Maxus. Maxus products ranged from multipurpose vehicles (MPV), sport utility vehicles (SUV) to recreational vehicles (RV) and various types of light-and medium-sized trucks. In Malaysia, Maxus automobiles are distributed by Weststar Maxus Sdn Bhd.Maxus has strong brand image and favourable brand reputation and it received huge support and attention from Chinese and Shanghai government. Moreover, Maxus is outstanding in technologies such as the Zebra Smart Interconnect System. However, Maxus has weak presence and low brand awareness in Malaysia and its channel of distribution is lagging behind. Not onlythat, Maxus also faced high overall costs in its automobile production. Currently, the automotive industry is transforming into an intelligent automotive industry and there is a rising trend in low carbon economy and new energy vehicles. Furthermore, Maxus faced fierce competition in Malaysian automobile industry and there is a risk of elimination of traditional automobiles. In Malaysia, Maxus is facing high bargaining power of buyers, low bargaining power of suppliers, low threat of substitutes, low threat of new entrants and low intensity of rivalry. The 4Ps marketing mix has determined what strategy Maxus used for its product, price, place as well as promotion. Under the VRIO model, both Maxus G10 and Maxus V80 are valuable to Maxus and Maxus is organized to exploit the resources that they have. However, Maxus automobiles are not rare and it is not difficult for the competitors to imitate the automobiles. Based on the research data, Maxus should focus more on the segments of adults that are ranged between 15 to 64 years old and reside at Kuala Lumpur, Putrajaya as well as Selangor. Meanwhile, Maxus targets its customer for Maxus G10 based on lifestyles and Maxus V80 based on their occupations. In order to be sustainable in Malaysia, Maxus has to increase its brand awareness among Malaysian and establish more distribution centres in Malaysia. Not only that, Maxus can bring over its competitive technologies in China to Malaysia, such as the Zebra Smart Interconnect System and the new Advanced Driver Assistance System (ADAS) intelligent assisted autopilot system.


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