A competitive analysis and formulation of strategy of university spin off company

Abstract

A company is required to develop core competencies through the understanding of its competitive advantage to survive in a business environment. Identifying opportunities for competitive advantage requires an understanding of industry competition. A company need to assess the level of competition and company’s position in the industry, and must react to changes in the external environment. Then, a company can arrange appropriate strategies to win the competition. This article obtains data from interviews, observation, books, scientific journals, and the internet. It uses Porter’s Five Forces Model, PEST analysis, and SWOT analysis to analyze the competitive advantages and formulating the strategy. Porter’s Five Forces Model is used to provide the level of competition and the company’s position in the industry, meanwhile PEST analysis is used to analyze the macro environment of an organization, and finally, SWOT analysis formulate a strategy based on Porter and PEST analysis that has been done before. Based on qualitative and quantitative data, it can be concluded that the company has competitive pressures on average high and it has some of opportunities in the industry of health supplements and cosmetics such as population and economic growth of Malaysian is high, and health awareness is also high, this will be followed by the increasing of purchasing healthcare products, technological advance such as online shopping. Strategy formulation of the company also can be defined by SWOT matrix, such as expanding marketing methods by selling a product in third party products online store in Malaysia.