(i) Threat of new
paint industry in Malaysia is a conquered by few companies that making
difficult for anyone entering the industry. Establish foreign company may pose
a threat by virtue of the knowledge and expertise. Brand, distribution network,
working capital efficient and technology also play a crucial role. These
factors are making hard for the new comers to make a step into the
industry. Thus, the threat of new entrants is very low.
(ii) Power of suppliers
is raw material intensive based industry. More than 100 products are required
to produce the final products. Splatter is two type of marketing channel which
is direct and indirect. Direct channel of marketing does not realized on
supplies, Splatter are marketing the product directly to the customer by online
transaction. In other hand, indirect channel marketing need supplier’s support
to bring product to the customer whom can’t reach by ecommerce website. In
Malaysia there are a large number of suppliers who are distributing paint product,
which is not easy to persuade the suppliers to compete our product in the market.
Rivalry among competing sellers firms in other industries providing substitute
products suppliers of raw materials and components buyer potential new
entrants. The raw material price is increasing and some of the items have to be
imported. Thus, the suppliers have a medium bargaining
power is compared to other firms.
Power of buyers
has two types of buyers which are household users and industrial users.
Household user includes contractors and the end customers. The contractors have
had high barging powers and are more prices sensitive. The end customers have a
number of options and decision is made based on a number of factors. Industrial
users are those who are highly knowledgeable about the product and market. Thus,
The barging power of consumer is high due to
availability of wide choice.
number of substitute available for chemical free paint is very minimal.
Moreover, the markets are very small and alternate measure not yet develops in
Malaysia. Thus, the threat of substitute is very low.
current condition of the market looks brighter with ample growth opportunities
for all the competitors. More than 80% of market has been occupied by the top
players Jotun, Nippon and KCC whom produce convention paint. However, Splatter
manufacture biodegradable paint which does not have any exacts competitor.
Therefore, rivalry between competitors’ can be concluding as medium.