Cases For Publication (UCWC101)
Abstract

HOW CAR MANUFACTURERS IN MALAYSIA WITHSTOOD THE STORM

SYED ANAS ALHABSHI
SYED OMAR SYED AGIL

The 2008 financial crisis has been an extremely challenging one for many businesses worldwide. Malaysia has not been spared from the difficulties posed by this economic disaster even though we are supposed to be somewhat isolated from being hit very hard. This case study examines the challenges faced by the Malaysian companies, in particular Automobile manufacturers or sometimes known as the Automotive Original Equipment Manufacturers (OEM's) due to the global economic slowdown. This case study will also try and single out the least affected companies in Malaysia and try to understand what the best practices are in having a sustainable competitive advantage. The case study has also shown that car sales in Malaysia have seen a sharp decline especially between in the 2 nd half of 2007 and the 1 st half of 2008. This is mainly attributed to the global economic condition which has also had an affect on Malaysia. Nevertheless, some companies have been harder hit than others and this is what the case study has tried to analyze and to understand the strategies which the successful ones have employed. It has been found that while short term strategies may have had some influence into the performance of automotive companies in Malaysia, the long term strategies have a more profound influence over the performance of companies even during the more difficult times. Companies which have been steadfast in their long term strategies and have not been swayed by the different conditions have been less affected than those which have chosen to adopt short term strategies which are not well coordinated. The paper will also share some possible lessons learnt from other OEM's in trying to become competitive players in the Malaysian automotive Industry.