Assalamualaikum friends..how are you? Alhamdulillah we meet again on our second case study. On this second case study we will analyze on UMW Holdings business.
UMW Holdings is one of the biggest corporations in Malaysia. The headquarters of UMW Holdings was located in Shah Alam. Currently this company has widened its business internationally in Singapore, Indonesia, Thailand, Myanmar, Vietnam, Papua New Guinea, Turkmenistan, Taiwan, China, Australia, India and Oman. During year 1917, this company started the business in bicycle spare parts which currently had 110 subsidiaries operated in their core business. Nowadays, UMW Holdings core businesses is automotive assembly and distribution, while the other sub unit business of UMW Holdings are automotive component and lubricants OEM and REM heavy equipment and oil and gas drilling service industries.
As this company has many s.b.u. they have to ensure the sustainability of the company. In order to solve this problem, we have analyzed the corporate strategy of this company that has been implemented since the year of establishment. Based on our findings by using Porter’s Generic Strategy, UMW Holdings implement Broad Differentiation and Focus Differentiation in expanding and maintaining their business.
Besides that, the core business and the other sub business unit of UMW Holdings have contributed 72% and 28% in the revenue of the Groups respectively. Thus, the CEO of the Groups, Dato Syed Hisham wants to have a balance contribution in both type of business. He plans to have 50-50 contribution in revenue from core business and other s.b.u. of UMW Holdings.
Last but not least, UMW Holdings was established for almost 100 years. It is not an easy thing to keep sustain in the industry with many type of business. However, UMW Holdings are successful to make them sustain in the industry for almost 100 years.
That is all for today.
Thank you.
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