Analysis on GUM Industry

(The Totoya crisis)

using Porters 5 forces
PRESENTED BY :
MUHAMMAD HAZIQ
SITI NAZURAH BT ABD MAJID
DINIE SUNI BT MD SUHAIMI
NABILLA ANATIE BT AHMAD BOKHARI

For threat of substitute

There is a high threat from substitutes for
GUM Industries. Cars or automobiles are still
the most convenient way of transport for the
majority of the market to the consumers. The
switching costs associated with using a
different kinds of transportation may be high
in terms of personal time and comfort.

For threat of new entrants

Threat of new entrants to the GUM Industries
and the material handling equipment industry
is weak. Totoya is not only a company that
established in Japan but has been operating
around the world and standards for cars have
been universally accepted.

For bargaining power of suppliers

There are several suppliers for GUM Industries
but mainly is Totoya Motor Corporation. There
are many demand for Totoya products such as
forklift trucks and spare parts automobile.
Therefore, they command high bargaining
power because of the high quality involved to
produce an automobile.

For bargaining power of buyers

The bargaining power of GUM industries is
low because they too depending on Totoya.
Thus, Totoya lowering GUM industries
negotiating power with them and forces
GUM industries to follow the prices that is
given.

For rivalry among competitors

The rivalry among existing competitors of
GUM Industries is strong. There are several
competitors of GUM Industries in the
automotive industry likeTan Choong Instrial
Motors (TCIM), Federal Otto, MHE-Dumag
(M) Sdn.Bhd (MHE) and East Asian
Company (EAC). These major competitors
are so closely balanced that it increases
the rivalry.