ASSIGNMENT COVER SHEET

PROGRAMME : Bachelor (Hons) in Finance (BFIN)

SUBJECT CODE AND : MGT2034 Operation Management
TITLE
ASSIGNMENT TITLE : Proton Holdings Berhad

LECTURER : Dr Arsalan Najmi ASSIGNMENT DUE 10th Nov 2023

DATE:

STUDENT’S DECLARATION
1. I hereby declare that this assignment is based on my own work except where
acknowledgement of sources is made.
2. I also declare that this work has not been previously submitted or concurrently
submitted for any other courses in Sunway University/College or other institutions.
[ Submit “Turn-it-in” report (please tick √): Yes __√__ No _____]

NO. NAME STUDENT ID SIGNATURE DATE

NO.
1. Liew Jun Yan 19035054 ELDON 28 October 2023
2. Bryan Ong Zhe Syuen 20028494 BRYAN 28 October 2023
3. Lee Penny 21013750 PENNY 28 October 2023
4. Nicole Ong Jia Ying 21017017 NICOLE 28 October 2023
5. Lim Chi Suen 21021571 GRACE 28 October 2023
6.

E-mail Address / Addresses (according to the order of names above):

1. [email protected] 4. [email protected]
2. [email protected] 5. [email protected]
3. [email protected] 6.

APPROVAL FOR LATE SUBMISSION OF ASSIGNMENT (If applicable)

IF extension is granted, what is the revised due date?
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Signature of Lecturer: ___________________________________ Date:

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 Marker’s Comments:

Marks and / or Grade Awarded: ___________________________ Date:

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 TABLE OF CONTENTS

TABLE OF CONTENTS.........................................................................................................2
1.0 INTRODUCTION..............................................................................................................3
2.0 THE TRANSFORMATION PROCESS OF GOODS AND SERVICES......................4
2.1 Input (Acquisition of Resources)...................................................................................5
2.2 Process (Manufacturing and Service Delivery)...........................................................5
2.3 Output (Deliverables).....................................................................................................6
2.4 Feedback (Continuous Improvement)..........................................................................6
3.0 EXAMINE THE SWOT ANALYSIS...............................................................................7
3.1 Strengths..........................................................................................................................8
3.2 Weaknesses......................................................................................................................9
3.3 Opportunities................................................................................................................10
3.4 Threats...........................................................................................................................10
4.0 EVALUATE THE COMPETITIVE ADVANTAGE......................................................11
5.0 PRODUCT LIFE CYCLE (PLC) MODEL...................................................................13
5.1 Introduction Stage........................................................................................................14
5.2 Growth Stage................................................................................................................14
5.3 Maturity Stage..............................................................................................................15
5.4 Decline Stage.................................................................................................................15
6.0 PRODUCT LIFE CYCLE (PLC) MODEL – ISSUES FACED...................................15
5.1 Introduction Stage........................................................................................................15
5.2 Growth Stage................................................................................................................16
5.3 Maturity Stage..............................................................................................................16
5.4 Decline Stage.................................................................................................................16
7.0 SOLUTIONS/RECOMMENDATIONS.........................................................................17
7.1 Solution – Introduction Stage......................................................................................17
7.2 Solution – Growth Stage..............................................................................................17
7.3 Solution – Maturity Stage............................................................................................17
7.4 Solution – Decline Stage...............................................................................................18
8.0 CONCLUSION.................................................................................................................18
9.0 REFERENCES.................................................................................................................18
1.0 INTRODUCTION

Proton Holdings Berhad, informally known as Proton, is a prominent Malaysian automotive

manufacturer and one of the leading automotive companies in Southeast Asia (DBpedia,
n.d.). Proton established in 1983 and has played a pivotal role in the development of the
Malaysian automotive industry. It is a subsidiary of DRB-HICOM, a conglomerate with
holdings in various sectors, including automotive, services, and property (DRB-HICOM,
2023). Proton is headquartered in Shah Alam, Selangor, and operates several manufacturing
facilities across Malaysia.

Proton's core mission is to produce high-quality, reasonably priced vehicles that cater to the
diverse needs of consumers. The company's product line spans a variety of vehicles,
including compact cars, sedans, and SUVs. Proton continuously strives to enhance the safety,
quality, and technology of its vehicles to become a competitive player in the automotive
market (Pang, 2014).

The organizational structure of Proton is characterized by a hierarchical model, typical of

large manufacturing companies. The executive leadership teams are at the top of the
hierarchy, headed by a CEO who oversees the company's strategic direction and management.
There are various departments such as engineering, manufacturing, sales, marketing, and
finance, working collaboratively to achieve the company's goals (Pang, 2014). Also, to better
serve its customers, Proton has a vast network of dealerships and service centers domestically
and internationally.

Proton's significance in Malaysia extends beyond its role as an automotive manufacturer. It

has contributed to the development of the local automotive ecosystem, including local
suppliers' expansion and the development of the industry's skilled labor force. Furthermore, it
actively participates in motorsports, igniting Malaysians' passion for automobile engineering
and design.

2.0 THE TRANSFORMATION PROCESS OF GOODS AND SERVICES

2.1 Input (Acquisition of Resources)
Proton considers market research to be an essential first step in their quest for quality and
customer preference alignment. By carefully gathering and analyzing data, they hope to
understand consumer preferences, predict market demands, and decipher industry trends. To
make sure that Proton's products satisfy the changing needs and tastes of its target market,
this information is used as a guide throughout the design and development of new vehicle
models. Hence, the transformation process starts with the procurement of resources necessary
to launch and keep its operations. These resources include steel, polymers, electronics, and
other raw materials used in making vehicles. The company also heavily depends on its
personnel, which consists of engineers, designers, technicians, and production specialists.
Together, this labor force plans the conversion of concepts and raw materials into finished
automobiles. Concurrently, Proton sustains an extensive network of vendors that offer
essential parts and components, so proving a convoluted web of supply chains (FZE, 2021).

2.2 Process (Manufacturing and Service Delivery)

The core of Proton's operations are its production facilities, where cutting-edge machinery
and technology transform raw materials into finished goods. The manufacturing process at
Proton is methodical and involves several critical stages:

Design and Engineering: Proton starts the process by participating in creative design work
and technical engineering. (Lee, 2014) The vehicles' design and operation are painstakingly
crafted at this stage, which is a furnace of innovation. The technical issues about safety,
performance, and environmental considerations are figured out concurrently.

Body Assembly: Following the design and engineering phase, the vehicle's structural
framework takes shape in this phase. This includes fabricating the frame with high-strength
steel, precisely aligning and welding body panels, integrating interior components, and
routing electrical systems. This meticulous process is fundamental for ensuring the vehicle's
structural integrity, safety, and overall functionality, laying the foundation for the subsequent
stages of manufacturing.

Painting: Proton undergoes a meticulous painting process on its vehicles. The process begins
with meticulous surface preparation, cleaning, and contaminant removal to establish a
pristine canvas. Subsequently, priming ensures paint adhesion and durability. The application
of the base coat, featuring the vehicle's primary color, is executed with precision. A clear coat
is then applied to shield against UV radiation and moisture, enhancing longevity. Rigorous
quality inspections guarantee a flawless finish that aligns with Proton's exacting standards.

Final Assembly: In this phase, all the major components and parts coalesce to form a
complete vehicle. Proton's stringent quality control standards ensure that every vehicle rolling
off the assembly line meets international safety standards and customer expectations.

2.3 Output (Deliverables)

The primary output of Proton's transformation process is the assortment of vehicles its
manufactures. These vehicles cater to a diversified consumer base by offering a wide range of
alternatives in terms of size, amenities, and price points. Proton's steadfast dedication to
quality and safety guarantees that the final product is a dependable, secure, and consumer-
friendly form of transportation. (Chan, (n.d.))

Proton supplies a wide variety of cars that are suited to various market niches and satisfy a
wide range of consumer tastes. To inspire trust in its goods, they strictly adhere to safety rules
and quality standards while prioritizing quality and safety in the construction of their
vehicles. Additionally, Proton does continuous market research to build transportation
solutions that are easy to use and have features that meet the expectations of modern
consumers. These automobiles serve as a symbol of Proton's dedication to quality within the
automotive sector.

2.4 Feedback (Continuous Improvement)

Proton's transformation process appears well-structured and focused on delivering high-
quality vehicles that meet consumer demands. The company's commitment to market
research to align with customer preferences and industry trends. The stages in manufacturing,
from design and engineering to final assembly, reflect attention to detail and quality control.
However, for continuous improvement, Proton should consider implementing feedback loops
from customers and internal stakeholders to further refine their products and processes. This
feedback-driven approach can lead to enhanced customer satisfaction and greater innovation
in the automobile industry.
3.0 EXAMINE THE SWOT ANALYSIS

Strengths Weaknesses
 Local Manufacturing  Quality Perception
 Strong Brand Recognition  Dependence on Government
 Government Support  Global Market Presence
Opportunities Threats
 Rising Demand for EVs  Intense Competition
 International Expansion  Economic Fluctuation

Table 1.0

SWOT analysis is a strategic planning tool that helps organizations identify their internal
strengths and weaknesses, as well as external opportunities and threats.

3.1 Strengths
Based on the table above, Proton, the national automobile manufacturer of Malaysia, benefits
greatly from local production in several important ways. The fact that Proton creates jobs and
grows the economy by manufacturing cars in the country is demonstrated by the fact that its
workforce consists of engineers, support personnel, and workers in factories. For instance,
Proton's cooperation with regional suppliers of materials and components enables it to better
regulate the quality of its output, protecting its brand and fostering customer trust. By using
this strategy, Proton is also able to have a thorough grasp of the tastes of the local market and
customize its goods to specifically address the demands of Malaysian customers. In the end,
Proton's economic effect and influence inside Malaysia's automotive sector are mostly driven
by local production (Mary Salang, 2018). Besides, Proton has been successful in becoming
Malaysia's national automaker thanks in large part to government funding. Its expansion has
been made possible by financial incentives, governmental support, and regulatory assistance.
With this assistance, Proton has been able to forge a significant name for itself in the car
industry, generate employment, boost economic expansion, and influence the course of the
country's auto industry. Government assistance has also made it possible for Proton to
produce high-quality, innovative automobiles that meet consumer preferences and national
and international norms, and to compete more successfully in the global market. In Malaysia,
people hold Proton in high regard as a representation of automotive innovation and pride in
the country. Its legendary significance as a Malaysian automobile brand and its enduring
presence in the local market serve as prime examples of this appreciation. One example of the
brand's lasting attraction to customers is the Proton Saga, a flagship model that has been a
noticeable sight on Malaysian roads for decades. This widespread acknowledgment not only
fosters confidence among home purchasers but also establishes Proton as a major participant
in Malaysia's automotive sector, helping to define the country's character and boost its GDP
(Fresh. A, 2022).

3.2 Weaknesses
For Proton, quality perception has always been a problem. Customer trust and the company's
image have suffered because of past criticism of the vehicles' build quality and dependability.
Some of its models have been plagued by problems with perceived value, durability, and fit
and finish. For Proton, overcoming this notion is still a major issue since it affects the brand's
competitiveness in the market and its capacity to charge higher prices for its cars. Proton has
worked hard to improve the quality of its products to remedy this vulnerability. The company
has concentrated on tight quality control standards, improved materials, and improved design.
In the car sector, though, it might take a long time and consistent work to alter consumer
attitudes and establish a formidable reputation for quality (Mary Salang, 2018). Proton's
reliance on government assistance in the past has had unintended consequences. Government
assistance, in the form of funding, policy incentives, and infrastructure development, has
been crucial in its founding and expansion. Proton was able to grow into a major force in
Malaysia's automotive sector because to this assistance. Over-reliance on government
support, meanwhile, has also shown to be a drawback. It may make it more difficult for
Proton to run its own business, adjust to the demands of the market, and successfully compete
internationally. To maintain long-term viability and competitiveness, Proton has had to
cultivate more financial independence and less reliance. This shift is difficult for the
corporation because it must balance the advantages of government assistance and the
requirement to become more adaptable and self-sufficient in the fiercely competitive car
industry. The issue of achieving various safety and pollution criteria established by many
nations is known as global regulatory compliance. Regulations in Asia or the United States
may not be the same as those in Europe, for instance. To guarantee that cars follow several
regulations, this complexity necessitates significant testing and development, which may be
expensive and time-consuming. Reaching compliance is essential for Proton and other
automakers to get access to foreign markets since non-compliance can result in fines and
other obstacles. Research & development must be continuously funded to be competitive
worldwide and adhere to changing regulatory requirements.

3.3 Opportunities
For Proton, the expanding worldwide market for eco-friendly and electric cars offers a
substantial opportunity. Proton can create and promote electric or hybrid automobiles that
correspond with the global trend of customers prioritizing environmental sustainability. For
instance, a mild hybrid system is installed in the Proton X50, a small SUV, to increase fuel
economy and lower emissions. Proton can position itself for long-term growth and
sustainability by increasing the range of electric and eco-friendly vehicles it offers. This will
allow the company to meet the growing demand for environmentally conscious transportation
while also entering markets where green vehicle adoption is being driven by consumer
preferences and government incentives (Patrick Hertzke, 2018). Moreover, Proton has a great
chance to expand internationally thanks to its improved quality and well-known brand.
Proton may increase income by expanding into new areas and reaching a wider audience. For
example, the company's introduction of its models, such the Proton X70, to a broader
audience has been made possible by its debut on the UK market. Proton may diversify its
sales channels, become less reliant on a particular market, and achieve its objective of being a
competitive worldwide participant in the automobile industry by expanding overseas (Hitesh.
B, 2019). Many international automobile industries have begun to mass-produce electric cars.
Proton can capitalize on this trend by investing in electric cars technology and incorporating
it into its product line-up. Proton can cater to environmentally conscious consumers while
also positioning itself as a forward-thinking and environmentally responsible car brand by
developing reliable and affordable electric vehicle models. Furthermore, entering emerging
markets presents a promising opportunity for Proton. Rapid economic growth in these regions
has led to a growing middle class with increasing purchasing power and increased demand
for automobiles. Using a strategic way to enter those markets, Proton can develop new
customers segment to increase their sales and revenue. Proton also can produce modern
technologies as an opportunity for innovations and market competitiveness. Using cutting-
edge technologies such as autonomous driving technology, Apple and Android car play, and
AI tech can increase the functionality and attractiveness of Proton vehicles. By developing
these technologies, it can provide consumers with safer, efficient, convenient, and
technologically advanced vehicles that meet the ever-changing needs of the modern
automobile market.

3.4 Threats

Graph 1.0

Intense competition in automobile industries brings a significant threat to Proton Holdings

Berhad. Due to the influence of competitors, it can be seen from the graph 1.0 above that
Proton’s market share is significantly falling, where it reached the lowest of 11% by
comparing with others. Proton is seriously threatened by fierce competition in the automobile
sector. Both seasoned international automakers and up-and-coming regional producers fight
for market share and devoted customers. For instance, Proton's portfolio is immediately
challenged by the extensive range of automobiles offered by companies like Toyota, Honda,
and Hyundai, which are well-known in several regions, including Malaysia. Price pressure,
higher marketing costs, and the necessity for ongoing product innovation to have a
competitive edge can all result from this increasing competition. To survive in this incredibly
competitive market, Proton will need to come up with ways to set itself apart and satisfy
customers (Tan). Proton is seriously threatened by changes in the economy. Automobile sales
often dip during economic downturns, like the global financial crisis of 2008. These
downturns are generally caused by decreased consumer expenditure and economic
uncertainty. For instance, Proton's income and profitability were impacted when the market
for their cars declined in the wake of the 2008 financial crisis. Proton's manufacturing costs
can be impacted by economic instability, which makes it difficult to maintain both financial
stability and competitive prices. As a result, the business must have policies in place to lessen
the impact of market swings and maintain resilience in trying times (Zain, Z.M., Rahim, L.N.,
Thaheer, A.S., & Samsudin, A.N. 2020).

4.0 EVALUATE THE COMPETITIVE ADVANTAGE

Since its founding in 1983, Malaysian automaker Proton Holdings Berhad has solidified its
position in the Southeast Asian vehicle market. This evaluation centres on its primary
advantages, which include a dedication to innovation, a well-known brand, and strategic
partnerships.

Primarily, Proton's unwavering focus on product innovation is a major competitive

advantage. Proton has overcome previous quality difficulties with its automobiles by
continuously investing in research and development, leading to technological advancements.
This dedication has produced state-of-the-art electric vehicles that stand out for their
exceptional quality (Proton Holdings, 2023). Proton has been able to not only meet but also
surpass shifting market needs because to its unwavering innovation. Proton has addressed its
prior narrow product range by offering a diversified selection of vehicles, including small
cars, sedans, and SUVs. This allows Proton to efficiently respond to a wide spectrum of
consumer tastes. This diversity, which offers a wide range of options, has turned into a
strength. Furthermore, Proton's dedication to environmentally beneficial technologies, such
as electric and hybrid cars - aligns with the industry's rising focus on sustainability. (The
Star, 2023).

Brand recognition is another of Proton's remarkable competitive advantages. With nearly four
decades of industry experience, the company has established a formidable reputation for
dependability, affordability, and a deep grasp of the demands of regional customers (Geely
group, 2023). This reputation has increased market share over foreign rivals in addition to
cultivating a devoted consumer base. Proton's reputation for safety and dependability has
further bolstered its competitive edge, instilling trust, and confidence in its customers, which
is a testament to the brand's enduring appeal and strength (Debby, 2019).

Proton's competitive advantage is primarily derived from its strategic partnerships and
alliances. The company has aggressively pursued partnerships with globally recognized
automakers, including the formidable Chinese automotive behemoth - Geely (Ng, 2023).
Through these strategic alliances, Proton has gained access to invaluable resources,
knowledge, and technology, which has accelerated its growth and product development.
Geely's involvement in Proton's operations has facilitated knowledge transfer and has been
instrumental in improving Proton's competitive position globally. Beyond the addition of
technical expertise, Proton has harnessed these alliances to investigate uncharted territory in
terms of markets and distribution methods, greatly broadening its clientele and solidifying its
position as a leader in the field (Greg Kable, 2023).

Proton's strong presence in its home country, Malaysia, presents an additional layer of
competitive advantage. The government provides policies and incentives to support domestic
manufacturing and research and development, which benefits the company. This favourable
environment has guaranteed Proton's resilience in addition to promoting its growth. The
company's substantial contribution to Malaysia's economy and employment sector has earned
it the support of various stakeholders, including consumers, suppliers, and policymakers,
positioning Proton as a domestic champion with deep roots (Kamarul Azhar and Liew Jia
Teng, 2020).
5.0 PRODUCT LIFE CYCLE (PLC) MODEL

Proton Holding Berhad’s product life cycle

Sales

Introduction Growth Maturity Decline

Time

Figure 5.1

The Product Life Cycle model is the total life cycle of the product throughout its age in the
market, which consists of four stages: Introduction, Growth, Maturity and Decline. The
Proton Holding Berhad’s product life cycle is shown in Figure 5.1.

5.1 Introduction Stage

Proton's primary goal in the introduction phase of the Product Life Cycle (PLC) is to
introduce new car models to the market. Significant research and development work,
including the design and engineering of novel vehicles, is involved in this phase. Through
marketing and advertising activities, Proton hopes to generate interest and awareness among
potential consumers about its new offers. Given the importance of first impressions, the
corporation can additionally spend on quality control to guarantee that the first cars live up to
exacting standards. At this stage, Proton must establish consumer loyalty and trust through
after-sales support and customer care to establish a strong presence in the market (Kopp, C.
M, 2010).
5.2 Growth Stage
Proton saw a sharp increase in sales and market share for its cars during the growth period.
This is frequently fueled by the popular launch of fresh, cutting-edge models that grab buyers'
interest. For instance, Proton may launch an economical and fuel-efficient hybrid vehicle that
appeals to customers concerned about the environment and looking for economical
transportation options. To maintain this growing pace, the firm sees a spike in demand,
expands into new areas, and makes marketing and distribution investments. The expansion
stage denotes Proton's capacity to reach a larger customer base and make a name for itself as
a serious contender in the car sector.

5.3 Maturity Stage

During the maturity period, Proton concentrates on maintaining and improving its current car
models in a cutthroat industry. This entails enhancing product attributes, optimizing
manufacturing procedures, and putting cost-cutting strategies into place. To sustain its
attractiveness and competitiveness in the mid-size sedan market, Proton has been making
steady efforts to enhance the quality, safety, and technological features of its well-liked sedan
model, the Proton Saga. Proton might potentially broaden its market reach by venturing into
other markets or investigating joint ventures to maintain the relevance of its goods and
prolong their lifespan. Proton wants to protect its position against rivals and increase its
market share and profitability at this point.

5.4 Decline Stage

In the decline stage, Proton experiences a decrease in sales as it becomes outdated, or
consumer preferences may change. For instance, Proton would be in the decline stage if its
popular car model was experiencing diminishing sales because of shifting consumer tastes or
the entry of more sophisticated competitors. Proton would have to make important choices
during this stage, such as whether to stop selling the model, concentrate on cutting expenses,
and perhaps even stop promoting the product. To maintain growth and adjust to fluctuating
market conditions, the corporation may also think about directing resources and innovation
towards more recent, more promising car models (Kopp, C. M, 2010).
6.0 PRODUCT LIFE CYCLE (PLC) MODEL – ISSUES FACED

Based on the analysis above, it had stated the process for Proton in every stage of the PLC
Model whereby it is absolutely that there will be challenges or issues being faced in every
different stage.

5.1 Introduction Stage

Developing customer awareness and brand identification for these new items is one of the
crucial issues Proton faced throughout the launch period. For example, Proton had trouble
convincing people of the advantages of electric cars and allaying worries about range
restrictions and charging infrastructure when it debuted an electric car model. To gain traction
in the market, Proton could also need to make significant investments in marketing and
advertising, which might put a burden on its finances. Also, early users of the new models
may have technical problems that Proton needs to promptly resolve to preserve customer
happiness and confidence. To effectively introduce new vehicle models to the market, the
introduction stage necessitates significant expenditures, market education, and the resolution
of early teething issues.

5.2 Growth Stage

Additionally, Proton has several difficulties during the growth stage, including stepping up
production for new EV models, fierce competition in the EV industry, and making sure the
supply chain can handle rising demand without sacrificing product quality. For example,
Proton must spend money on R&D when launching a line of EVs to remain competitive
when new companies join the market. Effective supply chain management and striking a
balance between expanding production capacity and product quality are needed throughout
this period. Proton must strategically adjust to these obstacles to take advantage of market
possibilities

5.3 Maturity Stage

Furthermore, the maturity stage is the stage where sales level off after a period of rapid
growth. At this point, rival companies will release an increasing number of comparable
goods. As a result, the market will become saturated. When there are a lot of identical
products on the market, market saturation happens. Customers can locate Proton product
alternatives with ease in this situation. Price competition will result from this, and Proton's
profit margins will begin to shrink. Proton's current client base is its only source of income
when the market is saturated. However, keeping the allegiance of current clients and drawing
in new ones might also be among Proton's difficulties (Hargrave, 2006).

5.4 Decline Stage

Moreover, Proton encounters difficulties in the decline stage, such as declining sales and
profitability for car models. For example, a compact car is losing market share to larger or
more popular models. Additionally, rivals' pricing pressure may result from this drop,
impacting profit margins. To properly handle these issues, Proton must determine whether to
stop the fading model, reduce expenses, and reallocate resources to developing areas, such
electric vehicles.

7.0 SOLUTIONS/RECOMMENDATIONS

7.1 Solution – Introduction Stage

One way to solve the problem that arises during the introduction phase is to keep coming up
with innovative ideas and ways to change their cars while keeping essential aspects of the
brand. For example, Proton may add new features, like hybrid choices or sophisticated safety
systems, to meet changing consumer tastes while maintaining their reputation for high-quality
and reasonably priced family cars. Proton is recognized for making dependable and
reasonably priced family automobiles. Proton may support brand consistency and keep its
competitiveness in the market even as they change to satisfy changing consumer needs by
skillfully striking a balance between innovation and fundamental brand values.

7.2 Solution – Growth Stage

Moreover, to effectively scale up production and solve the issue of production in new EV
model, it might invest in automation and cutting-edge manufacturing technology. Proton may
also concentrate on ongoing innovation, both in terms of EV technology and customer
experience, to stay competitive in the expanding EV industry and make sure that its products
are appealing and up to date. Proton can satisfy growing demand while supporting excellent
product quality by strategically partnering with dependable suppliers and managing the
supply chain efficiently. Furthermore, combining ability development with quality assurance
requires careful financial planning and resource allocation. Proton's success and ongoing
market penetration will depend on its ability for innovation and adaptation throughout this
growth era.

7.3 Solution – Maturity Stage

At maturity stage, to stand out in a saturated market, Proton should focus on product
differentiation, cost reduction, and diversification. Differentiate products by introducing
unique features and minimize production costs through efficiency improvements. Explore
international markets to tap into new customer bases. Additionally, to counter declining profit
margins, Proton can optimize production costs, supply chain, and distribution. This could
involve lean manufacturing and efficient resource utilization. Additionally, shifting consumer
preferences may cause obsolescence. Proton needs to establish enduring ties with their clients
to solve this issue. Through aggressively seeking out and considering customer feedback,
Proton will be able to better understand the features and car-buying preferences of its
customers. Through this relationship, Proton will be better able to comprehend what kinds of
vehicles and features today's customers want and need. Their sales will rise because of this.
In addition to fostering enduring relationships with clients, Proton can carry out market
research to comprehend how client preferences are evolving.

7.4 Solution – Decline Stage

Last but not emphatically least, to revive customer interest, Proton must think about product
diversity through the introduction of new features or versions. Proton may also look at
foreign markets where there might still be a need for the product, thereby prolonging its
lifespan. Moreover, cost-cutting strategies like reducing marketing initiatives or improving
production procedures can support profitability maintenance. Lastly, to maintain long-term
sustainability and growth even if certain goods fall, Proton should carefully reallocate
resources and concentrate on investing in new product lines, such electric vehicles.

8.0 CONCLUSION
In summary, Proton, a national automaker, has proven to be resolute in its dedication to
satisfying customer demands and market developments. Its wide selection of cars, each
designed for a different market niche, enables it to successfully meet the always changing
needs of its clientele. Because of the company's commitment to quality and safety standards,
customers can trust that its goods are dependable and secure. It is essential for supporting
employment growth, economic development, and the establishment of a domestic car supply
chain. Proton's indigenous automobile production not only lessens reliance on imports but
also advances infrastructural and economic expansion. Despite obstacles facing the industry,
Proton's dedication to innovation and sustainability, especially in the development of eco-
friendly vehicles like electric and hybrids, maintains it in step with current automotive trends.
Maintaining the company's position in the automotive sector is vital because of its strengths,
which include local production and government assistance, which enable it to expand and
adapt in a competitive market.
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