Established in 1885 by Yong Koon, R Bes Pewter (originally known as Ngeok Foh) was a small store that specialized in crafting pewter items for ceremonial purposes. These items, such as joss stick holders, incense burners, and candle holders, were commonly used in Chinese households and temples. To create a polished finish on the pewter pieces, Yong Koon utilized “stone leaf” (tetracera scandens), a tropical leaf renowned for its effective abrasive properties.
With the arrival of British colonials, the offering expanded to include tankards, ashtrays, and tea services. The brand, known as Selangor Pewter, began exporting in the 1970s to Singapore, Hong Kong, and Australia. The market further expanded into Europe and Japan during the 1980s.
In 1992, the company underwent a name change to Royal Selangor, in order to reflect its royal endorsement from the Sultan of Selangor at that time, Almarhum Sultan Salahuddin Abdul Aziz Shah. This change also aimed to acknowledge the company’s diverse product range, which had expanded beyond pewter. The name Royal Selangor has been in use for 115 years. It is evident that the RBesM market has been experiencing a decline over time. In 2001, it stood at 83%, but decreased by 1.6% in 2002 and further decreased to 79% in 2003, representing a reduction of 2%.
In 2004, RBesM’s market share dropped by 7% to 72%, after a previous drop of 4%. This decline in market share can be attributed to the growing number of competitors and the increase in companies selling alternative products like gifts, jewelry, and other metal items. The rise in competition and decrease in company earnings have led to a continuous decrease in RBesM’s market shares. Customers usually look for products that provide quality and uniqueness at an affordable price.
Customer buying decisions are greatly influenced by prices. When prices are lower, customers tend to choose the company with the lowest price. However, RBesM faces a challenge as their prices are higher compared to competitors. Moreover, these competitors provide discounts for corporate finance partners. This indicates a growing level of competition, forcing RBesM to compete with rivals who offer lower prices.
R Bes Pewter is currently encountering difficulties in product maintenance and overall company sustainability, much like they did 115 years ago. In the present market, there are countless comparable products that make it challenging to distinguish their offerings. Additionally, the utilization of lower-quality materials in manufacturing has diminished, with some products now incorporating inferior substances. Consequently, this detrimentally affects both the overall quality of the products and subsequently impacts the company’s reputation.
Examining the processing materials is crucial for upholding quality at RBes Pewter. Additionally, the company is confronted with a predicament regarding their future successors. Encouraging younger individuals to participate in this field poses challenges due to the lack of interest in the family business among some of the upcoming generations. Consequently, it is imperative for the company to give increased consideration to this issue.
Finding a suitable successor for the company is challenging because they need to have comprehensive knowledge of the company’s operations, production processes, business partnerships, and other aspects. To achieve this, it is crucial for the person to be actively engaged in the company for a specific duration to acquire a thorough understanding.
RBesM also faces difficulties in finding skilled manpower for pewter processing. The manufacturing of pewter requires intricate skills, making highly proficient individuals necessary. However, recruiting capable staff is challenging due to limited interest in this field, particularly among local candidates.
In recent years, RBesM has primarily focused on manufacturing and selling pewter. However, a company cannot thrive by solely selling one product. Customers may have different needs that go beyond the company’s current production. To address these issues, RBesM needs to implement strategic planning.
Strategic planning involves several steps, including strategy formulation, implementation, and evaluation. RBes Pewter, for instance, must identify its mission and vision as part of the formulation process. Clearly, RBes Pewter aims to become one of the largest manufacturers globally. To accomplish these goals, the company must implement specific strategies.
Following this, the company should conduct a situational analysis by identifying both internal and external factors. Internally, strengths and weaknesses are assessed through a SWOT analysis. Externally, opportunities and threats are considered.
An important strength of the company lies in their capability to manufacture exceptional quality finished products. This is achieved by using top-notch materials. Additionally, the proficiency and know-how of their employees play a crucial part in attaining this level of excellence.
The company’s products may be expensive, but their prices are a true reflection of the exceptional quality. Only affluent customers who highly value quality are willing to purchase from them. Moreover, the company exclusively focuses on manufacturing and selling pewter, without offering a wide range of products.
The company has the chance to expand its market both domestically and internationally, which will enable them to enter the global market. Nevertheless, they also encounter threats from heightened competition within their industry. This presents a challenge as they strive to compete and retain customer loyalty.
A company must set clear objectives and ensure its manufacturing employees have the necessary skills to produce excellent products in order to achieve its goals. Equally important is providing training for designers so they can create unique products that match customer preferences. Furthermore, the company has expanded its product portfolio from one offering to multiple offerings.
Gold and silver are used in the production and sale of various items such as pewter, jewelry, decorative pieces, and silverware. The company aims to expand its customer base by offering a wider range of high-quality products. Furthermore, the company introduces its products globally and promotes them in multiple countries. To assess the effectiveness of this approach, a strategy evaluation is conducted. If the strategy’s objectives are not met, it must be reassessed and improved.
The success of RBes Pewter strategies can be attributed to their global recognition and foreign awards. Recommendations for the company include focusing on product differentiation, which is crucial in marketing. Product differentiation allows the company to stand out and be easily recognizable to customers, ultimately showcasing customer loyalty.
The company can meet the needs of local customers by enabling them to customize and manufacture their own products, ensuring customer satisfaction. Nonetheless, it would be beneficial for the company to further decrease prices to enhance affordability for a broader range of customers. By reducing prices, a wider audience will have the opportunity to purchase their products, not limited to affluent individuals.
