Hup Seng Competitive Advantages

Hup Seng is one of the known biscuit manufacturers in Malaysia. Hup Seng was founded by four brothers of the Kerk family with their other partners in the Malay Village of Parit Linau Kechil, Bukit Pasir in Batu Pahat, Johor. They started the business with a capital of RM1,500 to sell confectioneries that include biscuits. In 1974, the company officially became Hug Seng Perusahaan Makanan (M) Sdn Bhd (HPSM). Let’s have a look at ‘Hup Seng Competitive Advantages’.

Hup Seng Perusahaan Makanan is now a part of Hup Seng Industries Bhd, which was listed on Bursa Malaysia in 2000. According to the Independent Market Report by ACNielsen (M) Sdn. Hup Seng Industries Berhad holds the second-largest market share in the biscuits market in West Malaysia. This is based on the total sales value that was between August 1998 and July 1999 for West Malaysia. 

Hup Seng competitive advantages 

Hup Seng has a different way of handling competitions. Their business model is pretty simple with simple products. It has mainly three subsidiaries. One is a biscuit confectionery, the next one is to supply and sell and the next one is it acquires, Incomix. It is not a top-level business. 

They compete against well popular brands like Kraft and Nestle. The main competitive advantage of Hup Seng is its relatively lower price and the customers may prefer its taste more than the others. Their products are quite affordable and even normal people can afford them. This makes it a greater advantage. Their customers prefer their taste over others and this is another advantage.  

The SWOT analysis says

Strength 

1. Hup Seng is in a good financial position in the current times (with a few debts). 

2. They have a skilled workforce and only a little training is required.

3. The brand name is recognized at the local, regional or national level.

4. They have their work premises, that is there is no extra spending for rents.

Weakness:

1. The number of customers they have is less in number when compared to others.

2. They have a lot of waste.

3. They have low customer retention.

4. The product quality is less compared to others

5. Low integrity of the annual report.

Opportunities:

1. They have skilled laborers, which means they can be trained in other parts of the business so they can increase the business profit.

2. They can use the takeover opportunity, that is when their competitors go bankrupt, they can use that opportunity to build their business.

3. They can move their product into a new marketing sector.

Threats:

1. The competition they face is large and increasing. 

2. Another threat is the tax increase

3. The rising cost of wages, even from the basic pays.

4. If the current held location is not satisfying, they need to relocate and this can be another threat.

5. When local authorities restrict them from expanding their business in the future.

6. New channels of distribution can be another threat. 

The other most important thing is that the company cannot sustain its competitiveness in the long run in the export business. This is because there are a lot of competitors these days who export their products. Here, the competitors who sell biscuits do the export business and maybe they are good at exporting when compared to Hup Seng. This can be a challenge. The business can change and fluctuate over time and there is no proper explanation for this.

This can happen when there is no contact with the customer. The ultimate winner of the business is when the company learns and understands the customer’s needs. Then, they provide the needed items at an affordable range without compromising the quality.

Conclusion

Hup Seng Industries Berhad has unique competitive advantages to maintain its position in the market share in West Malaysia. One of the main competitive advantages of Hup Seng Industries Berhad is that they concentrate more on improving the quality of its products. Another competitive advantage is that they expand their business by expanding their product range to meet the needs of their customers. “Quality is our promise”, this is the promise they give to their customers. This shows their commitment to their customers. Hug Peng has a quality control team that is responsible for formulating and implementing the Group Quality Management System according to ISO 9002.

Frequently Asked Questions

1. What is the accounting strategy of Hup Seng?

Hup Seng Sdn Bhd is a company that has one of the greatest financial backgrounds. This means that it can expand its market globally. The financial factor is essential if they want to go global. Hup Seng has been one of the leading biscuit producers. They have a history of 58 years in the market with experience and expertise in the field of biscuit manufacturing.

2. What is the main activity of Hup Seng?

Hup Seng is one of the biscuit manufacturers in Malaysia. They produce high-quality biscuits and snacks. 

3. What is the responsibility of the director of Hup Seng industries?

The Director of the Company is responsible for maintaining and improving the organizational administration system, and company performance.