R Bes Pewter founded in 1885 by Yong Koon, his little shop called Ngeok Foh (Jade Peace), handcrafted pewter objects mainly for ceremonial use – such as joss sticks holders, incense burners and candle holders for altars of Chinese homes and temples. The pewter objects sold by Yong Koon were polished with “stone leaf” (tetracera scandens), a wild tropical leaf of a fine, abrasive nature.
With the arrival of British colonials, the offering expanded to include tankards, ashtrays and tea services. The brand was then known as Selangor Pewter.In the 1970s, the company started exporting, first to Singapore and Hong Kong and then to Australia. Towards the 1980s, the market expanded into Europe and later into Japan.
In 1992, the company changed its name to Royal Selangor to reflect its royal endorsement from His Royal Highness The Sultan of Selangor that time, Almarhum Sultan Salahuddin Abdul Aziz Shah, and to reflect its diverse product range, which has extended beyond pewter and the name Royal Selangor still remain until now and it has been 115 years in the industry.Obviously, we can see that the RBesM market has been decreasing from time to time. That is from 2001 it shows 83%, in 2002 it decrease by 1. 6%, in 2003 also decreasing to 79% by means it reducing by 2.
4% and the current year 2004 it decline by 7% making it market share decrease to 72%. RBesM market share declining year by year is because of there are an increasing numbers of competitors in the same industry as well as the increasing in the number of companies selling other products including gifts, jewelry and other metal products.As the numbers of competitors rose or the earnings of companies decreasing, the market shares of RBesM also decreasing. Customers always look for some products that have the quality as well as the uniqueness of the product but it have to come with an affordable price.
Prices determine everything where when the prices are lower, customers tend to buy it from the company that gives the lowest price. Here, we can say that prices that set by RBesM are higher compare to the other competitors. The competitors also gives discount to corporate finance who dealing with them.It means that the level of competition is increasing, and thus, RBesM have to compete with the competitors whose prices are lower than them.
Other than that, R Bes Pewter faced problems in maintaining their products as well as maintaining the company like 115 years ago. As what we can see nowadays, there are so many products that similar and difficult for us to differentiate it. Also the materials used in manufacturing nowadays are not good in quality which are some are added with some more materials or items, where it can affect the quality of the products. When the quality affected, it also will affect the company as well.
It is important to check the materials used in processing to maintain the quality. RBes Pewter also facing problem in who will inherit the company in the future. It is difficult to convince youngster to get involve in these industry. Some of their future generations are not into the family business and thus turning it into a problem that the company should pay more attention into.
Selecting someone to inherit the company would be a problem where someone that in the future will manage the company should know well how the company operating, the productions, who the company dealing with and much more.In order to do so, the person shall involve or taking part in the company for some time so that they understand the company well. Manpower also becomes an issue to RBesM because in pewter processing, it needs someone who are skillful to produce it where it require a fine touch in making it. To select a skillful staff are difficult because not many people nowadays especially the locals have their interest in this field.
In the past few years, RBesM are focusing in manufacturing and selling pewter and thus, the marketing is only based on only selling pewter.A company as we can see cannot sustain if they are only selling or produce one item. Customer might need something different in the company’s production. In order to solve problems that are faced by RBesM, strategic planning shall be used.
There are few steps in strategic planning that is strategy formulation, strategy implementation and strategy evaluation. In strategy formulation, RBes Pewter needs to identify their mission and vision. As what we can see, RBes Pewter goals are to be one of the largest manufacturers in the world.In order to achieve these objectives, the company should implement some strategies.
Then, the company should perform the situational analysis, which means they have to identify what are their internal and external factors. Internal and external factors here are the SWOT analysis which is strength and weakness in internal factors and opportunity and threats in external factors. The company’s strength is the quality of the finished products where they produce it using good quality materials.The skillful employees are also contributing in this quality of products.
While their weakness is the products produce are high in price. The quality of the product drives the setting of price. Only the rich or customers that buy quality products are willing to buy from the company. Also, their company is only produce and sells pewter instead of varieties of products.
As for their external factors, their opportunities are they can market and introduce their products internationally and thus enter the global market as well as the domestic markets.Threats here we can say the competition in the same industry. As we can see, the number of competitor in this industry is increasing from time to time. This is a threat for the company because they have to compete in order to win the customer loyalty.
In this strategy formulation, a company should know how to establish the objectives. In order to achieve the objectives the company should make sure the employees involve in manufacturing is skillful enough to produce the products for a better quality.Then the designer also are trained to design more unique or based on the customer desire. The company also switched from only one product to more products.
That mean from manufacture and selling pewter to gold and silver where gold are used to make jewelry and silver for making decorative items and silverware. Then the strategy implementation is implemented where the company produces more unique and quality products to attract more customers. The companies also introduce the product to other countries and also market it to global.Strategy evaluation is to check whether the strategy worked or not and if the strategy are not working and did not meet with the objectives, then the strategy should be modified and reformulated.
Here we can say the strategies are successful because RBes Pewter are recognized globally and have won foreign award. Some recommendations for the company are the product differentiation. Product differentiation plays an important role in marketing where it will show the company in a glimpse of eye.It means that with product differentiation, customers will recognize the company by the products and it will also show the loyalty of the customer to the company.
For the locals, the company can provide them their desire design where they design the products they want and the company will produce it based on what they have design. With this, it can gives satisfaction to the customer. As for the price, the company maybe should lower it a bit more so that others can afford to buy the products. By reducing the price, there will be more customer buying their products and not only for the rich.