Firstly, I would like to thank to Allah and his blessings. Finally, I had completed this assignment successfully. Furthermore, I would give a big credit to my family because pray to my success and always supports me like give me an idea and advice to doing this assignment. To my lovely lecture Madam Zaleha Binti M.
Rajoli because help to know and teach how PEST analysis work. Madam Zaleha also guides me to complete this assignment and who had worked hard developing our trip to Kuala Lumpur. Thanks also to my friend because help me, support me; cheering me and accompany me to finish this assignment. To MATRADE, MITI, and PWTC we will never forget your kindness and your knowledge you give to me. That’s all thank you.
In this assignment I had to go trip to Kuala Lumpur in order to make a study tour. We go two day one night and go on 3 September until 4 September. We started to depart at 6. 00 A. M. and arrive 10. 00 A. M. First place we had visit was a Ministry Of International Trade Malaysia had known as MITI. At MITI we were given a talk about what is MITI? What MITI do? Before this I don’t know anything about MITI after I go there I get more knowledge. MITI is as organization want to help entrepreneur to international their product. MITI has made many programs to achieve their target to help entrepreneur for example MATRADE. After MITI our trip go to Malaysia External Trade Development Center had known as a MATRADE.
MATRADE is under MITI; in MATRADE we can find many products entrepreneur have showing in their exhibition hall we also go to their library has contain many information useful to internationalize entrepreneur product. In MATRADE we accompany by Mr. Ridzuan, Mr. Ridzuan as Assistant Manager Client Relation Unit Exporters Development Division in MATRADE, he give a talk about MATRADE and how MATRADE help entrepreneur to enter another country. After MATRADE we go to International innovation and Entrepreneurship Exhibition at PWTC, Kuala Lumpur. In this program many new product have shown for example Puncak Selera known as Kedah Best.
Kedah best produce cat fish in tin it quite interesting right. In this program we have to choose one new product and do an interview to get information about their company and their product. In this exhibition I attract to one product, the product is a pneumatic tube system produce by Aerocom Company from German.
I choose pneumatic tube systems as my product research because this product can give many benefit to government sector or private sector for example government can use pneumatic tube systems at their hospital and it can reduce the risk in missing item or money. For private sector with this product private sector can reduce human resource and give a safety to avoid stolen.
Aerocom has grown to become a world leader in pneumatic tube systems technology. In addition to possessing the widest range of standard products in the industry, they also have the experience and expertise to custom design system solutions for just about any application in pneumatic materials logistics. They can provide special technical solutions to meet individual customer specifications. They provide factory direct representation with offices and distributors in 65 countries around the globe .
Founded in 1952, Aerocom was quickly established as a leader in pneumatic tube systems technology. They offer custom pneumatic systems for a wide range of applications. Aerocom technical solutions and expertise empower them to meet the most demanding customer requirements. Aerocom systems are in use in more than 65 countries worldwide. With their six sales offices in Europe (Belgium, France, Italy, Spain, Switzerland, and Netherlands), as well as Australia and Jakarta and then factory outlets in Germany they are always ready to serve their customer. Aerocom also work together with other reputable companies.
In collaboration with these partners they have built up an unequalled sales and service network.
HOW AEROCOM PRODUCT WORK
The standard types and sizes of Aerocom AC pneumatic tube systems range from simple point-to-point applications to multi-line, multi-station systems with up to 512 stations. System tubing sizes range from 2. 25″ to 12. “. Aerocom systems can carry everything from records, mail and small parts or supplies to fragile laboratory samples and pharmacy items safely, reliably, efficiently at speeds up to 25 feet per second. Aerocom tube systems are in use all over the world. In banks, hospitals, factories, office buildings, retail stores just about anywhere you could imagine. Inside new and existing buildings, underground or outside in the open subject to extremes of heat and cold. Made in Germany – this is not just a claim that we make for the quality of our products but a standard that applies to the entire range of our products and services.
The blower produces pressure or vacuum. The material is transported in properly matching carriers. The selection of the target and the input of the filled carriers are made at the stations. For connecting all stations in a tube-network diverters are used. With these diverters it is possible to transfer a carrier in the network to – for example – station 14 and at station 75 it will be discharged from the tube-network. For all this to work correctly, highly integrated controllers are used. The system’s operations are quite simple.
After choosing the carrier’s destination, the carrier it’s put into the sending station. At the receiving station, the carrier sit automatically presented and can be removed from the system, and its contents put to use. The system is now available for its next transmission. An Aerocom pneumatic tube system provides you the most flexible, easy and efficient means of transferring needed materials and information throughout your facility.
PEST ANALYSIS TO ENTER TAIWAN MARKET
From my interview section with Mr. Mohd Izham as a Project Manager in Aerocom (M) Sdn. Bhd, from him I know Aerocom is a company who made Pneumatic Tube system. Pneumatic Tube system is a device for safety and to reduce the human work for example if blood has contained H. I. V virus and carry by nurse or worker is very dangerous right? With Pneumatic tube systems we can avoid the risk like the blood spilt out. Aerocom want to enter Taiwan market before that Aerocom have to make a research to know about political factor, economic factor, social cultural factor and technology factor because Aerocom want to know it give advantages to Aerocom to enter Taiwan market or not.
Taiwan is a tear-drop shaped island with a total area of 36,000 sq km (14,400 sq mi). It is located in Southeast Asia among the island chains of eastern Asia, and is bordered in the west by the Pacific Ocean. Taiwan’s northern neighbors are Japan and the Ryukyu Islands, while the Philippines are in the south. (Taiwan is a tear-drop shaped island with a total area of 36,000 sq km (14,400 sq mi) http://www. medicaltravel. org. tw/en/about. aspx Firstly, for the political factors have a huge influence upon the regulation of businesses, and the spending power of consumers.
The political of Taiwan is rather stable and the world situation has been peaceful and sound in recent years because they not have political issue like war, mob, which is good for Aerocom development to enter Taiwan market. The Taiwan government had many preferential policies for the development of the company including tax advantages and government funding. For the tax advantages Taiwan tax charge is less than Malaysia and same with Korea, tax charges Taiwan give more advantages to Aerocom to gain more profit.
For the government funding, Taiwan has launch six emerging industries to give more attention to medical devices like Pneumatic Tube system had been made by Aerocom, Taiwan enjoying advantages medical devices it’s give more an advantages to Aerocom to enter Government Hospitals. Taiwan also support electronic industries in medical sector with buy large medical electronic product, it good for Aerocom product. (Taiwan enjoying advantages medical devices) About the economic factor in the past 50 years, Taiwan gave rise to the world famous Economic Miracle.
Products made in Taiwan figure large on the global market, and rank in the top 14 trading countries of the the world. Taiwan is also the primary nation of foreign investment from China and many Southeast Asian countries since the mid-1970s; the private sector has played a dominant role in spearheading investment activities, with far greater involvement than the public sector. During the decade, the economy recorded an average growth rate of 11. 3%, which slid to 7. 3% in the 1980s and 5. 4% in the 1990s. Large-scale liberalization in financial areas such as banking, the stock market, trade, and finance was undertaken during the 1990s.
Taiwan’s conservative financial approach and its entrepreneurial strengths allowed the country to withstand the Asian financial crisis in 1997–99. The economy continued to grow at an annual average rate of 4. 0% during 2000–2008. During 2002 Taiwan start returned the first quarter by rebounding export technology product. However, the economy contracted by 1. 9% in 2009 due to the global economic crisis. The Taiwanese economy recovered to grow at 10. 8% in 2010. ” From the Taiwan economy report it’s suitable to Aerocom to enter Taiwan market.
Furthermore, Taiwan has launched White Paper Outline to help Private sector enter Taiwan market. (‘White Paper on Taiwan Industrial Technology to help private sector to enter Taiwan market’)The social and cultural landscape factors cover the demographics, education and healthcare scenario in Taiwan. The social welfare policies of the government along with the country’s performance in terms of healthcare, income distribution and education are also provided. This also influences on business vary from country to country.
It is very important factors must International Company like Aerocom considered. For a multinational company like Aerocom, a cultural difference influences the growth of the company greatly. Taiwan cultural style is healthy style, according to the WHO World Health Report year 2006, Taiwan average lifespan theoretically ranked 39th out of 192 nation in the world. From the statement Aerocom can conclude Taiwan is a country who care about the safety in their health development such as hospital clinics and pharmacy, within it Aerocom know pneumatic tube delivery system can be accepted in Taiwan market if Aerocom enter their market.
For the language Aerocom should not to worry because Aerocom target is hospital building not people like food market has to consider it the language factor. Taiwan can consider use English as their second language it give an advantages to Aerocom because if Aercom want to enter Japan market their have to pick someone to be an translators to translate japan writing to English writing and also their conversation. Aerocom can see with many diversified international restaurant had built at Taiwan country. WHO World Health Report year 2006, Taiwan average lifespan theorically ranked 39th out of 192 nation in the world)
For technology factor is a vital for competitive advantage, and is a major driver of globalization. It is especially true for IT like Aerocom industry whose growth is by a large extend dependent on technology innovation and advancement and Aerocom innovation strategy has a significant relationship with cross-functional cooperation and NPD (new product development) and performance (Cooper and Kleinschmidt 1987).
Besides that, NPSA as National Patient Safety Agent alert related safety in hospital to achive good safety in manufacturing and good in logistic safety level it suit with Aerocom product has create for safety in logistic. Furthermore technological advances such as the pneumatic tube delivery system has made by Aerocom can help improve the delivery, safety and governance arrangements it suitable with Taiwan. Why? Taiwan has create a opportunities for Aerocom in Taiwan plan like “Diamond Action Plan for the Biotechnological Takeoff” in this plan factor of safety and to reduce cost on worker or logistic has been consider.
Beside China popular as country who copies another country product or technology Taiwan also does it. The simple design of Aerocom product was easy to copy it give disadvantages to Aerocom. If Aerocom enter Taiwan market Aerocom product fate will be the same like Dyson Company. Dyson had produce no fan blade after their international their product China copy their technologies to produce it and sell it with price more inexpensive. The global technology landscape is ever changing with new products and inventions being introduced every day, the competition facing Aerocom are ever fierce. “Diamond Action Plan for the Biotechnological Takeoff” the factor of safety and logistic has been consider)
Lastly, after Aerocom consider political, economic, social cultural and technological factor, I think Aerocom should not enter Taiwan market. For me Taiwan has in good situation in political and their economic growth can give advantages to Aerocom if Aerocom enter the Taiwan market. For the Taiwan cultural also give more edge to Aerocom because Taiwan people use healthy life style but all the advantages can hold in while.
It because in factor technology Taiwan can copy Aerocom technology also produces it and sell cheaper than Aerocom. It’s like Aerocom stab himself. For example Dyson had produce no fan blade after their international their product China copy their technologies to produce it and sell it with price more inexpensive. It’s make people think China who create the products because consumer always want to buy product who give the cheaper price. If Aerocom lost Taiwan market they have more country can Aerocom enter like Netherlands has popular as Hopital County.
- http://www. asia-monitor. com/file/97413/beijing-granting-taiwan-greater-political-latitude. html
- http://www. reportlinker. com/p0168570-summary/Country-Analysis-Report-Taiwan-In-depth-PESTLE-Insights. html
- http://investtaiwan. org/matter/show_eng. jsp? ID=999991&MID=4
- www. miti. gov. my
- www. matrade. gov. my