SME Essay

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INTRODUCTION This case study is about the achievement of SME Corporation which aimed to improve and build people’s welfare and restructure ethnic economic imbalance. Small and Medium Industries Development Corporation (SMIDEC) is a specialized agency that to stimulate the development of Small and Medium Enterprises (SMEs). The SMIDEC purpose in stimulate the SMEs is to develop Malaysian SMEs that capable and competitive to compete in global market. SMIDEC also provides various facilities to help SMEs which is infrastructure, financial assistance, advisory services, and market access and support programs. According to SMIDEC, the recent data shows that SMEs now have contributed more than 90% from their organization in the manufacturing, services and agriculture. SMEs also provide 65% of the total employment and the data shows that the SMEs will be increased in the range of RM120 billion or 50% of total production in the manufacturing sector in 2020. Malaysian SMEs have been given great attention and commitment by the government since the 1970s with the introduction of the New Economy Policy in 1971. Various efforts made by the government on the development of SMEs which are the Industrial Master Plan (IMP2), and followed by the Third Industrial Master Plan (IMP3), from 2006 to 2020 which is coinciding to vision of the country in 2020. Although the SMEs do not compete directly with large enterprise, but, according to the Kotelnikov (2007), SMEs are driver’s economic growth and innovation. However, the contribution of SMEs to the national economy is still small. And the government has made SMEs as the primary economic development. This case said like that because, SMEs has been a priority in the national development of the Ninth Mal... ... middle of paper ... ...soy sauce was produced but, when the MUDIM soy sauce was marketed, they offered a lower prices and offer products that meet the requirement of customer, the customer of JALEN soy sauce will be change their requirement to choose the MUDIM soy sauce as their substitute products. This will give a negative impact on the JALEN Sdn Bhd because they unable to confine the bargaining process of the goods to the consumer. With the availability of substitute product, JALEN Sdn Bhd need to implement a new strategy by offering reasonable prices and always ensure the quality of JALEN soy sauce always in good condition. This suggests that the bargaining power of producers were weakened cause of the substitute product from the competitor. To face competition in the market, each company may decide to precede campaigns that advertise the benefits of manufactured goods to consumers.

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