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Management Case

Essay by   •  July 7, 2012  •  Essay  •  255 Words (2 Pages)  •  1,095 Views

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Since 1983, Proton has established its automotive position consistently in producing cars. Currently, Proton has risen to a level where it has exported to more than fifty countries which include traditional export markets such as United Kingdom, Asia and South America including Australia, Turkey, Russia, India, Laos, Egypt and Argentina. Other than that, Proton is also aggressively expanding their business in other countries including Middle East and South Africa.

Proton started its exports from Malaysia to other right hand drive markets like New Zealand in the late 1980. However, it was not as success as compared to the United Kingdom. When Proton first export of cars in Europe was started in 1988 where it exported to Republic of Ireland and a year later, they expand their export market to United Kingdom There was a large unit of cars being exported to United Kingdom and Ireland in 1989 since the United Kingdom is the largest export market of Proton. They export the cars through its distributor in UK which is its subsidiary, Proton Cars (UK) Ltd. When Proton decided to export their car in UK, it shows a significantly improvement on the overall sales performance and increase in production units. However, poor quality product has made Proton's image in UK being affected included the sales of the car dropped in 1993 to 1998. Besides, Proton also has suffered for intensive competition from other countries in automotive industry such as Japanese and South Korean carmakers. Therefore, Proton is too rely on its major export market in United Kingdom

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