Basic strategies used to respond to uncertainty ( Defender) The ability of Top Glove to grow substantially over the years is mainly due to its continuous effort in improving its product quality, capacity expansion and building a efficient management team that add values to its shareholders. Top Glove promoting its business direction of ‘Top Glove, Top Quality, Top Efficient’ that emphasize on consistently high quality with efficient low cost.
Top Glove vision is to be the world’s leading manufacturer with excellent quality glove products and services that enrich and protect human lives where as its mission is to be a world class glove manufacturer that providing the top quality products with excellent services through continuous improvement and innovation. By the way, THE bosses of the four leading latex glove manufacturers in Malaysia are all convinced that their sales orders will keep swelling despite the ripples created by the faltering US economy.
They also reckon that the stronger players are in a position to gain market share when competitors fail to adapt to the challenging environment today. For the listed glove manufacturers, it is important to hammer home the point that because the products are often either necessary or mandatory, the industry is inherently resilient. That means demand will stay firm no matter how severely people slash their spending.
This matters because the glove industry is facing mighty headwinds, and investors need to be assured that the companies’ financial performance will not be further hurt by the economic downturn, bearing in mind that many of the glove producers have major customers in the US. In many respects, the issues challenging the glove manufacturers are neither new nor peculiar to the industry.
Volatility in raw material and fuel prices are certainly problems faced by just about every manufacturer, particularly given the extraordinary leaps in the global commodity market. The stocks of the top glove manufacturers are hit hard perhaps because they had mostly performed well in recent years, and in the process, they attracted quite a following among institutional investors. As such, when things became less certain, the investors would rather lock in their gains and sell.