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Proton Holding Berhad

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CONTENT NO. | PARTICULAR | PAGE | 1 | BACKGROUND OF PROTON | 2 | 2 | PORTER’S FIVE FORCES MODEL | 5 | 3 | SWOT ANALYSIS | 10 | 4 | TOWS MATRIX | 13 |

BACKGROUND OF PROTON

Figure 1 Global PROTON Logo

Perusahan Otomobil National Berhad (PROTON) was incorporated in May 7, 1983 to manufacture, assemble and sell motor vehicles and related products, including accessories, spare parts and other components. PROTON produced Malaysia’s first car, the Proton Saga, commercially launched on July 9, 1985 by then Malaysian Prime Minister, Dato’ Seri Mahathir Mohamed, who had originally conceived the idea of a Malaysian car.

PROTON’s main plant in Shah Alam, with an area of 923 900 sq. meters, was originally designed for a capacity of 80 000 units per year. In 1997, capacity increased to 230 000 units per year with the construction of the Medium Volume Factory, which is next to the Main Plant. Today, the Shah Alam factory is capable of producing 240 000 vehicles per year. Besides being shareholders, Mitsubishi Corporation and Mitsubishi Motors Corporation are also PROTON’s technical assistance partner and component supplier. PROTON has a total of 11 subsidiaries and 11 associate companies, which are involved in manufacturing, research and development, sales and service activities.

In December 30, 1996, marked the launch of the Proton Putra, a two-door coupe, as well the production of our millionth car from the Shah Alam plant. PROTON made a major step in upgrading its engineering capabilities with the acquisition of Lotus Group International Limited, a British automotive engineering company and manufacturer of luxury sports cars in October 1996. Together, PROTON and Lotus offer large scale manufacturing capabilities with world-class engineering expertise.

Despite of all these success achievement by the Proton, they also faced some hard time and failure in promoting

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