PLC

The main stages of the product life yes are: Start Up – introductory phase of a lunch of a product Growth -? new entrance are attracted into the market Turbulence – where increasing product capacity result in overcapacity, and then turmoil in the market resulting in shakeout Maturity -where demand and supply in balance Decline – where the market is saturation and therefore replacement or new product development is required. Start up When proton first launched their product in the market there's lots of uncertainty from consumer during that time. Since it's new, there's no guarantee of the success of the brand.Start-up phase is where allocation of trust needs to be in consumers mind because Proton was facing great competition with famous, successful car brand out there. Competing with these is not easy. Since proton already know about the market environment and their competitors Proton was smart, to segment their Proton brand to economy or affordable car market. S ales of proton during this phase was low due failure to meet demand in the market. Growth The successful launch and introduction of the Xerox, the first truly Malaysian MAP in 2009, helped to improve the total production volume from 157,643 nits to 173,057 units.Although it is new, the Xerox alone has contributed to 20% of the total volume in its first year of production, a testament of its high demand. In July 2010, the new Xerox Special edition was launched and continued to capture the MAP segment with its enhanced styling and product specification. The Saga will also be upgraded by having a two phase facilitate, the first facilitate targeted in November 201 0 with minor appearance modification and a second involving an engine upgrade in 201 1. This facilitate is planned despite its continuing streak of high bookings.In fact in the last financial year, the Saga was a best seller several times for the Malaysian automobile market; due to its impressive selling points of consistent q uality, value for money and reliability. The launch of the Persona ‘Elegance' in March 2010 is another example of PROTON's commitment to continuously improve its products. The Elegance is equipped with better specifications including a bit ACE which means increased functionality, better engine performance and increased diagnostic capabilities.These combined with an enhanced stylish body kit, alloy rims and interior trim leather makes the Elegance a much sought after car in its class. We expect the Elegance to continue its reign as one of the top revenue generating models in our stable. Efforts to improve productivity and quality remain a core focus within the Manufacturing Division. Quality levels improved in 2009, and with the increase in production volume, we are also taking steps to raise our productivity index. In term of market shares, the company's market share later grew to 65% in 1987.Proton maintained a majority market share in the following years, which peaked in 199 3 at 74% with over 94, 100 units sold. Turbulence The financial year 2009/2010 has been a challenging yet exciting year for proton. They started cautiously in the wake of the drastic market slowdown due to the 2008 global economic crisis. This had severely affected the automotive industry domestically and globally. Market analysts had originally forecasted an 1 1% decline in total industry volume growth in 2009 as compared to 2008 due to the effect of the economic downturn.And Automobile sales in Malaysia plunged from 404,000 units in 1 997 to 163,851 in 1 998 due to the 1997 Asian Financial Crisis. Proton's revenue and profits ere severely affected, but a majority market share was still maintained into the early 20005. Maturity New sales and product distributions Effectively, PROTON gained an additional 2% market share, increasing to 28% from 26% in the previous year. This marked improvement of 13% increase in overall performance was primarily driven by the popularity of four core models namely the Saga, Persona, Xerox and Austria Neo.These made up 94% of the total registration. The Saga continued to be the lead model amongst the top four PROTON models and had managed to become the best-selling model in Malaysia for 3 institutive months from January 2010 to March 2010. With better systems and improved processes in place, the overall monthly average of unregistered stock against registered ratio remained healthy at below 1 month, resulting in better cash flow. Decline The mid-asses witnessed a decline in Proton's revenues and sales. In 2006, Proton's market share was 32%, down from 40% in 2005.Proton lost its majority domestic market share for the first time in 20 years to Periods, the second Malaysian automobile manufacturer. Factors which contributed to the fall of Proton included the revision of the National Automotive Policy (NAP), Proton's newer indigenously designed models (I. E. The Proton Wag, Gene-2 and Saws) which were poorly designed and manufacture d compared to the former Mediumistic-based Protons and stronger competitors, specifically Periods with their best-selling Mimi which launched in 2005.Both Proton's total sales volume and market share failed to recover to its pre-2002 figures and Periods remained the domestic market leader from 2006 onwards. Business Risk Factors Corporate and Operational Risks Corporate risks are primarily risks caused by external events that have potential impact on the strategic decision or activities of the Group. The Board is responsible in ensuring that the corporate risks of the Group are identified proactively. This was performed via product development, quality improvement and process improvement programs.Operational risk is defined as the risk of loss resulting from inadequacy or failure of internal processes, people and system. As the Group progresses towards operational excellence, the Group faces a multitude risks relating to financial risks, vendor capacity and capability in achieving b usiness objectives. Appropriate measures were undertaken to ensure that controls are in place to avoid any sorption Of operations. Export Market Risks Proton conducts its businesses across regions.This exposed the Group to risks such as changes in market regulation, infringement of Intellectual Property Rights (PR) and stiff market competition which may impact the Group's ultimate objectives. As the Group's future lies in expanding into the export markets, it is imperative that efforts are taken to ensure that a risk faced by the organization is effectively managed. Various risk assessments were performed in the year in review specifically for our operations in China, Middle East and Sean.Updates on mitigation plan were reported to the GRAM and BRIM respectively on a quarterly basis. Business Environment Risk Business environment risk is inherent in all businesses. The strengthening global call for reduction in greenhouse gas emissions is now widely acknowledged in both developed an d developing nations and is a catalyst for the â€Å"Green Vehicle† concept to be promoted. In view of this challenge, the Group has deliberated the challenges and opportunities in the green technology and ways to catapult this idea into a feasible end state.