CY-Handee Rubber Mouldings Sdn Bhd: The Fluctuating Company’s Profit Margin - A Case Study
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Date
2014
Authors
Tan, Hui Huang
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
CY-Handee (CYH) Rubber Mouldings Sdn Bhd is currently one of the major exporters of rubber bathmat in the world. The company has been focusing on the design, manufacture and marketing of bathroom suction mats. In recent years, CYH has been experiencing fluctuating in profit margin making it a perfect choice as a case study. This case focuses on identifying factors that affect CYH‟s fluctuating profit margin. In-depth interviews were carried out with seven subjects from CYH to find out the issues and challenges in the aspect of production, marketing and management as well as the customer requirements in rubber bathmat industry. From literature review, this study found that CYH is bounded in a “commodity trap” as commoditization of rubber bathmat has put the firm into a purely price-based competition. SWOT analysis is employed to find out the external factors that affects CYH‟s fluctuating profit margin and Fishbone Analysis is used to identify the issues and challenges from production, marketing and management aspects. Recommendations for production, marketing and management aspects are proposed to ensure CYH can stay as a market leader in rubber bathmat industry as well as to assure its sustainability.
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Keywords
Identifying factors that affect CYH‟s , fluctuating profit margin