DIPLOMA IN INVESTMENT ANALYSIS (BA114)
FIN382 – COMPANY ANALYSIS
(KOSSAN COMPANIES)
PREPARED BY:
NAME
STUDENT ID
FATIN AEINA SHAMIERA BINTI MOHAMED SALIM
2019400224
NOOR SYAFIQAH BINTI SALAHUDIN
2019400914
NURFATEN SYAFIQAH BINTI MOHD KHIRI
2019425412
NUR AZLIN ZURITA BINTI ABDULLAH
2019275614
SITI NURSAKINAH BINTI HASSIM
2019236648
CLASS: JBA1145F
PREPARED FOR:
MADAM NIK NUR SHAFIKA MUSTAFA
ACKNOWLEDGEMENT
In playing out our task, we needed to take the assistance and rule of some regarded
people, who merit our most noteworthy appreciation. The fruition of this assignment waives
us much delight. We might want to show our appreciation Madam Nik Nur Shafika Mustafa,
Lecture FIN382, UiTM Segamat for giving us a decent guideline for task all through various
counsels. We might likewise want to extend our most profound appreciation to every one of
the individuals who nave straightforwardly and in a roundabout way guide us recorded as a
hard copy this task.
Many individuals, particularly our group members itself, have offered significant remark
ideas on this proposition which gave us a motivation to work on our task. We thanks every
one individuals for their assistance straightforwardly and by implication to finish our task.
TABLE OF CONTENTS
Analysis Content
Page
3.1 Company Background………………………………………………....…………………
1
3.2 Principal Activities………………......……………………………………………………..
2
3.3 Corporate Information…………………………………………………………………….
3
3.3.1 Company’s Objectives…………...………………………………………........
3
3.3.2 Company’s Vision………………………………………………………...........
3
3.3.3 Company’s Mission…………………………………………………………….
3
3.4 Major Shareholders……….…………………………………………………………….
4
3.4.1 List of Major Shareholders…………………………………………………..
5-7
3.4.2 Share Information…………………………………………………………….
8
3.5 Company Development…………………………………………………………………
9-10
3.5.1 Recent Development…………………………………………………………
9
3.5.2 Prospects………………………………………………………………………
10
3.6 Competitors and Market Control……………………………………………………….. 11-14
3.6.1 Competitor……………………………………………………………………..
11
3.6.2 Market Control………………………………………………………………… 13-14
3.7 Company SWOT Analysis………………………………………………………………. 15-16
3.7.1 Strength…………………………………………………………………………
15
3.7.2 Weaknesses……………………………………………………………………
15
3.7.3 Opportunities…………………………………………………………………...
16
3.7.4 Threats…………………………………………………………………………..
16
LIST OF TABLES
Table
Page
1. Table 3.1 The List of Director’s shareholders……………………………………………
4
2. Table 3.2 The List of Major shareholders………………………………………………..
5-7
3. Table 3.3 The Market Share ……………………………………………………………...
12
4. Table 3.4 The Market Size…………………………………………………………………
13
CHAPTER 3
COMPANY ANALYSIS
3.1 Company Background
Kossan Rubber Industries Bhd was established in 1979 with the goal of producing rubber
cutlass bearings for fishing boats. Dato' Lim Kuang Sia, the company's founder, was a chemist
and an engineer. With an annual compounding capacity of 10,000 metric tonnes, the firm is
now one of Malaysia's major makers of technical rubber goods, as well as the world's second
largest manufacturer of disposable latex gloves.
Next, Kossan Rubber Industries manufactures specialised rubber goods for a variety of
applications, including printing, automotive, marine and construction. They also make latex
and nitrile examination gloves for use in hospitals and clean rooms. Both rubber product lines
comply to national and international standards. Their gloves have a low protein content and
are devoid of irritants that might be hazardous to customers.
In addition, Kossan Rubber Industries exports its goods to over 170 countries and has
over 250 active clients. The firm exports around 60% of its technical rubber goods with the
remaining 40% supplied to domestic markets. Overseas, more than 95% of their latex and
nitrile gloves are sold to countries such as the United States, Europe, South America, the
Middle East and others.
Customers who buy rubber goods from Kossan Rubber Industries enjoy the company's
exceptional customer service and high level of professionalism. Their goods are of the greatest
quality and the firm has provided rubber bearings for many large projects including the Second
Penang Bridge, Asia's longest bridge. Customers rely on Kossan Rubber Industries to provide
high-quality rubber goods in a timely and professional manner.
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3.2 Principal Activities
Principal activity is the fundamental action did by a unit (APE), among its exercises, the
one that creates the most added esteem. The essential not really set in stone as indicated by
the breakdown of the organization's different exercises. The principal activity so can be
distinguished as the movement which contributes most to the absolute worth added of a unit
viable.
Kossan Businesses Sdn Bhd (KIND) is probably the biggest maker of dispensable gloves
in the world and one of the biggest specialized elastic items producers in Malaysia with an
expansive based market reach worldwide. It offers a wide scope of items outfitted with strong
assembling capacities with mechanization possibilities. With its drawn out feasible
development model, Kossan Enterprises Sdn Bhd (KIND) keeps on fashioning strong
organizations and vital customer relations and stays submitted in serving the necessities
especially of the medical care, cleanroom and wellbeing areas for the Gloves division, and in
businesses, for example, car, foundation, marine, aeronautics, rail and digging for the
Specialized Elastic Items division. Kossan Businesses Sdn Bhd (KIND) venture proceeds with
future-sealing drives while adjusting to the always changing scenes of the business and
commercial center.
Kossan Enterprises Sdn Bhd (KIND) has to-date a yearly gloves creation limit of 32 billion
pieces and an intensifying limit of specialized elastic items surpassing 10,000 metric ton for
each annum. A preferred Original Equipment Manufacturer (OEM) and business partner,
Kossan Enterprises Sdn Bhd (KIND) is perceived for its capacities in delivering creative items
with consistency in quality, upheld by proficient business morals and vigorous monetary
history. In 2020 Nexteer Car (Nexteer), China, granted Kossan Enterprises Sdn Bhd (KIND),
the organization's specialized elastic items division, in acknowledgment of its outstanding item
quality exhibition among Nexteer's provider local area. The honor is given to performing
providers exceptional outcomes in their conveyance instrument with zero-deformity reports
more than a year time span.
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3.3 Corporate Information
3.3.1
Company’s Objectives
Kossan andits Group of Companies are committed to promote and maintain high
standards of transparency accountability, ethics and integrity in conducting its
business processes and operation
3.3.2
Company’s Vision
To be the most respected global leader in the latex glove manufacturing industry.
3.3.3
Company’s Mission
To be the most respected global leader, we will need to be:

Operational and financial excellence through continuous
technological advancement and innovation

People-centric with focus on
peoples’
competencies
development, team work, professionalism and welfare

A good and responsible corporate citizen with effective
policies to protect the earth and promote sustainability
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3.4 Major Shareholders
A shareholder, sometimes known as a stockholder, a person, corporation or organisation
who holds at least one share of a firm's equity. Because shareholders basically own the firm,
they profit from the company's success. These benefits take the shape of higher stock values
or financial earnings given as dividends.
When a corporation loses money, the share price lowers automatically, causing
shareholders to lose money or see their portfolios deteriorate.
These are the list of Director’s shareholders :
No
Name of Directors
Direct Interest %
Indirect Interest
%
1
Tan Sri Dato’ Lim Kuang Sia
5,018,904
0.20
1,203,962,404
47.17
-
Own Account
-
Cimsec
Nominees
(Tempatan) Sdn Bhd
CIMB for Lim Kuang
Sia (PB)
2
Lim Leng Bung
250,000
0.01
1,200,784,420
47.05
3
Tan Kong Chang
-
-
100,000
0.00
4
Lim Siau Tian
-
-
-
-
5
Lim Siau Hing
-
-
-
-
6
Lim Ooi Chow
-
-
-
-
7
Lee Choo Hock
-
-
-
-
8
Hoh Kim Hyan
-
-
-
-
9
Mohamed Shafeii Bin Abdul -
-
-
-
Gaffoor
Table 3.1 The List of Director’s shareholders
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3.4.1
List of Major Shareholders
These are the list of major shareholders of Kossan Rubber Industries Sdn Bhd with
their number of shares and percentage :
No
Name
No of Shares
%
1
KOSSAN HOLDINGS (M) SDN BHD
1,040,784,420
40.78
2
CITIGROUP
BHD
210,268,800
8.24
SENDIRIAN
160,000,000
6.27
NOMINEES
(TEMPATAN)
SDN
EMPLOYEES PROVIDENT FUND BOARD
3
MALAYSIA
NOMIEES
(TEMPATAN)
BERHAD
PLEDGED SECURITIES ACCOUNT FOR KOSSAN
HOLDINGS (M) SDN BHD (05-00042-000)
4
KUMPULAN WANG PERSARAAN (DIPERBADANKAN)
40,274,900
1.58
5
TIAN SENN RESOURCES SDN BHD
32,204,600
1.26
6
CITIGROUP
BHD
28,200,000
1.10
CARTABAN NOMINEES (TEMPATAN) SDN BHD PAMB
28,193,600
1.10
22,284,975
0.87
19,708,400
0.77
18,060,600
0.71
17,607,300
0.69
16,488,842
0.65
16,338,486
0.64
NOMINEES
(TEMPATAN)
SDN
URUSHARTA JAMAAH SDN BHD. (2)
7
FOR PRULINK EQUITY FUND
8
CITIGROUP NOMINEES (ASING) SDN BHD
CBNY FOR NORGES BANK (F1 17)
9
CARTABAN NOMINEES (ASING) SDN BHD
EXEMPT AN FOR STATE STREET BANK & TRUST
COMPANY (WEST CLT OD67)
10
HSBC NOMINEES (ASING) SDN BHD
JPMCB NA FOR VANGUARD EMERGING MARKETS
STOCK INDEX FUND
11
CITIGROUP NOMINEES (TEMPATAN) SDN BHD GREAT
EASTERN LIFE ASSURANCE (MALAYSIA) BERHAD
(PAR 1)
12
HSBC NOMINEES (ASING) SDN BHD
J.P. MORGAN SECURITIES PLC
13
HSBC NOMINEES (ASING) SDN BHD
JPMCB NA FOR VANGUARD TOTAL INTERNATIONAL
STOCK INDEX FUND
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14
HSBC NOMINEES (ASING) SDN BHD
14,145,866
0.55
MORGAN STANLEY & CO. INTERNATIONAL PLC (FIRM
A/C)
15
PERTUBUHAN KESELAMATAN SOSIAL
12,601,100
0.49
16
CITIGROUP NOMINEES (TEMPATAN) SDN BHD
11,647,600
0.46
10,783,600
0.42
9,446,100
0.37
EXEMPT AN FOR AIA BHD
17
DB (MALAYSIA) NOMINEE (TEMPATAN) SENDIRIAN
BERHAD
DEUTSCHE TRUSTEES MALAYSIA BERHAD FOR
EASTSPRING INVESTMENTSSMALL-CAP FUND
18
AMANAHRAYA TRUSTEES BERHAD
PUBLIC ISLAMIC SELECT TREASURES FUND
19
LEMBAGA TABUNG HAJI
9,072,000
0.36
20
MAYBANK NOMINEES (TEMPATAN) SDN BHD
9,062,900
0.36
9,036,300
0.35
8,468,900
0.33
8,176,900
0.32
8,073,400
0.32
7,285,152
0.29
MAYBANK
TRUSTEES
BERHAD
FOR
PUBLIC
REGULAR SAVINGS FUND (N14011940100)
21
HSBC NOMINEES (ASING) SDN BHD
JPMBL
SA
FOR
STICHTING
DEPOSITORY
APG
EMERGING MARKETS EQUITY POOL
22
DB (MALAYSIA) NOMINEE (ASING) SDN BHD
BNYM SA/NV FOR PEOPLE’S BANKOF CHINA (SICL
ASIA EM)
23
AMANAHRAYA TRUSTEES BERHAD
PUBLIC ISLAMIC OPPORTUNITIES FUND
24
CARTABAN NOMINEES (TEMPATAN) SDN BHD
PAMB FOR PRULINK EQUITY FOCUS FUND
25
HSBC NOMINEES (ASING) SDN BHD
HSBC BK PLC FOR SAUDI ARABIAN MONETARY
AUTHORITY
26
ATTRACTIVE FEATURES SDN BHD
7,176,200
0.28
27
HSBC NOMINEES (ASING) SDN BHD
7,000,000
0.27
SBL OF MORGAN STANLEY & CO. INTERNATIONAL
PLC
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28
CITIGROUP NOMINEES (TEMPATAN) SDN BHD
6,758,000
0.26
5,913,700
0.23
5,803,300
0.23
1,800,865,941
70.55
GREAT EASTERN LIFE ASSURANCE (MALAYSIA)
BERHAD (PAR 3)
29
HSBC NOMINEES (ASING) SDN BHD
CACEIS BK LUX FOR MOST DIVERSIFIED PORTFOLIO
SICAV-TOBAM
ANTI-BENCHMARK
EMERGING
MARKETS EQUITY FUND
30
HSBC NOMINEES (ASING) SDN BHD
JPMCB NA FOR BLACKROCK INSTITUTIONAL TRUST
COMPANY, N.A. INVESTMENT FUNDS FOR EMPLOYEE
BENEFIT TRUSTS
TOTAL
Table 3.2 The List of Major shareholders
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3.4.2
Share Information
There are four (4) that share information state for the share information for Kossan
Rubber Industries Sdn Bhd which are :
i.
Total Number of Issued Shares : 2,557,871,616
ii.
Class of Shares : Ordinary Shares
iii.
Number of Shareholders : 26,079
iv.
Voting Right : 1 vote per Ordinary Vote
The class of share for KOSSAN RUBBER INDUSTRIES SDN BHD is ordinary share.
Number of shareholders is 26,079 and total number of issued shares is 2,557,871,616.
For voting right is 1 vote per ordinary vote.
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3.5 Company Development
3.5.1
Recent Development
Kossan Rubber Industries have been received awards since 2015 until 2020. One of
the awards they got is The Brand Laureate Billion Dollar Brand 2015 in two categories, The
Entrepreneur of The Year and also Billion Dollar Brand Awards 2014-2015. Next, they also
receive award for Malaysia’s Top 5 Exporters of Rubber Gloves and Non-Glove Rubber
Products. Besides, Kossan also receive ASEAN Business Awards and SME Recognition
Awards 2015 under The Platinum Entreprenur 2015 Award.
In 2016, Kossan receive Employer Branding Awards under Malaysia Best Employer
Brands Award 2016. In addition, they also receive glove innovation award on The
BrandLaureate Most Sustainable Awards 2015-2016. Then, Frost & Sullivant Asia Pacific
Award 2016; Growth Excellence Leadership in Medical Glove, and lastly, Sin Chew Business
Excellence Awards 2016; Business Excellence Person of The Year and Product and Service
Excellence Award.
In 2017, they got Brand Excellence in Manufacturing-Gloves on The Brand Laureate
Most Sustainable Brand Awards 2016-2017. Next, The BrandLaureate Industry Champion
Brand Icon Leadership Awards 2017; Industry Champion Brand Icon Leadership Awards
2017. They also got Asia's Best Employer Brand Awards 2017 in Asia’s Best Employer Brand
Awards 2017 for the 2nd year in a row. Furthermore, ASEAN Business Awards 2017 in Priority
Integration Sector Excellence Awards 2017 (Rubber Sector). They also own Asia Pacific
Entrepreneurship Awards (APEA) 2017, GRC Wickham Awards 2017; Technology
Commercialization Award by Global Rubber Conference (GRC), and the last one Frost &
Sullivan 2017 Best Practices Award; Global Medical Gloves Technology Innovation.
Next, in 2018, they receive 2018 Frost & Sullivan Asia Pacific Best Practices Awards:
Global Halal Glove Company of the Year, FMM Icon 2018; An Achievement of Honour, The
BrandLaureate: World Halal Best Brands Award 2018, MREPC Industry Awards 2018; Export
Excellence Award (Big Corporation Category), and Malaysia's Best Employer Brand Awards
2018: Best Employer Brand.
Furthermore, In 2019, Sin Chew Business Excellence Awards 2019; in Lifetime
Excellence Achievement Award 2019, Asia’s Best Employer Brand Awards 2019, 2019 Frost
& Sullivan Asia Pacific Best Practices Awards; Global Halal Glove Company of the Year, and
lastly, Supplier Quality Excellence Award from General Motors.
The latest award on 2020, Perfect Quality 2020 Award Achievement and General
Motors: Supplier Quality Excellence Award 2020.
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3.5.2
Prospects
In general, Kossan Rubber Industries Berhad is engaged in a variety of activities
ranging from healthcare services to glove manufacture, processing, and trading. In recent
years, Kossan has introduced a number of different glove products. These gloves are utilised
in a variety of settings, including the medical field and the cleaning industry. Not only that, but
Kossan also manufactures technical rubber products for a variety of applications. As a result,
we will explore Kossan's potential futures project in the context of company analysis. Kossan
will be evaluated in comparison to other companies in the same industry. For example, Top
Glove and Hartalega.
First and foremost, the abrupt decline in the share price of Top Glove as a result of the
worker's infection, as well as the suspension of their products by the United States government
during the pandemic COVID 19 virus, has provided an opportunity for Kossan to extend its
glove sellers.
Secondly, UOB Kay Hian (UOBKH); a brokerage firms said on The Business Times,
Singapore, that Malaysia’s glove sector average selling prices are dropping to 21% on the
third quarter. Top Glove and Supermax’s net profit also shrinking, to RM602.9 million for Top
Glove and RM638.5 million for supermax. UOBKH also mentioned they look forward for
companies in Malaysia to restock the inventory but not over 15-20% as Malaysia Rubber
Glove Manufacturer Association’s demand because they concern that the supply will exceed
the demand. This article showing opportunities for Kossan to shine as Top Glove is dropping
in the third quarter. They need to increase the supply and the average selling prices in the
futures. This might be a chance for Kossan to expanding their products and bring a bright
future to the company.
Analyst expecting Kossan to maintain their performance on first quarter 2021, but the
glove market likely to be downtrend in September 2021 due to the competitors from China.
Still, there are chances for Kossan because, based on The Malaysian Reserve article on 22
October 2021, Kossan’s revenue on the third quarter 2021 (3Q21), September 30, escalated
to RM1.3 billion, from 3Q20; RM1.03 billion. The increment is because of higher revenue on
gloves and clean-room division. The glove division alone, increase from RM0.947 billion on
3Q20, to RM1.22 billion on 3Q2 because of high average selling prices. The article from The
Edge Market published on 26 November 2021, stated that Bursa Malaysia’s Healthcare Index
are increasing almost 4%, Friday in the morning. Top Glove increasing RM0.33 or 14.67% to
RM2.58 compared to Kossan, only increase 20 sen or 10.05% to RM2.19.
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3.6 Competitors and Market Control
3.6.1 Competitor
Malaysia is the world's biggest glove maker, producing over 240 billion rubber gloves
annually and supplying nearly 70% of global demand for 360 billion gloves by 2020. Following
increased demand due to the Covid-19 outbreak, the number of new industry operators in the
gloves sector has expanded, and they are seen poised to enhance glove production facilities
across Malaysia. Based on five companies that listed on the Bursa Main Market and the ACE
Market that manufacture and trade gloves. Top glove is the most significant major competitor
in Kossan Industry. It can also be classified as a big enemy in the health and care industry
because they both produce medical equipment and are in the same sub-sector.
Furthermore, Top glove’s revenue higher than the kossan industry in 2020 made it a very
competitive match in the rubber glove industry, as high demand from the Covid-19
transmission resulted to a significant increase in medical equipment demand. Both firms also
produce a variety of rubber gloves that are utilised in a variety of medical equipment
purchases. Furthermore, customers can purchase more from Top glove firms due to the wide
range of medical equipment available, as well as the fact that it is easier for suppliers to deal
with one company rather than moving back and forth, which can generate a variety of
problems for a party.
However, Kossan Industry is seeing a positive phase in the sale of medical equipment like
gloves, as they have grown over time to comprehend and anticipate the needs of the medical
healthcare community. One of the key reasons is that they view innovation as a driving force
in ensuring that product solutions are always available to meet current and future industry
demands. In addition, they strive to maintain integrity in all aspects of product and service
delivery so that all users and business partners regard them as respected and trustworthy.
Based on data analyst from 2019 to 2020, Top Glove sales are expected to increase. By
comparing sales growth from 2019 to 2020, Top Glove comes out on top with 50.74 percent,
while Kossan comes in second with 22.33 percent. As a result of the strong demand, the Top
Glove market is more dominated by suppliers who desire medical equipment as well as
additional production processes, forcing the Kossan company to compete and become more
stronger than his competitor.
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3.6.2 Market Control
Market Share
COMPANY
SALES
MARKET SHARE
RANK
(%)
KOSSAN RUBBER
3,638,472
27
2nd
7,237,427
53
1st
2,131,808
16
3rd
475,629
4
4th
13,483,336
100
INDUSTRIES BERHAD
TOP GLOVE
CORPORATION BERHAD
SUPERMAX CORP
BERHAD
CAREPLUS GROUP
BERHAD
TOTAL
Table 3.3 The Market Share
MARKET SHARE
16%
4%
53%
27%
TOP GLOVE CORPORATION
BERHAD
KOSSAN RUBBER
INDUSTRIES BERHAD
SUPERMAX CORP BERHAD
CAREPLUS GROUP BERHAD
For the year 2020, the table and pie chart above show the market share of healthcare
equipment and services in Malaysia. Measurements are made by looking at each company's
sales and then determining their position. According to the data, Top Glove Corporation
Berhad will have a 53 percent market share in 2020 and total sales of RM 7,237,427. Kossan
Rubber Industries Berhad is in second position, with a 27 percent market share and sales of
RM 3,638,472. Supermax Corp Berhad came in third place with a 16 percent market share
and RM2,131,808 in sales. Finally, the fourth place is managed by Careplus Group Berhad
with 4% market share and total sales of RM 475,629. The total percentage for all market
shares indicates 100% to find out which company dominates the market share. In short, Top
Glove Corporation Berhad leads and dominates the market share and is followed by Kossan
Rubber Industries Berhad, Supermax Corp Berhad and Careplus Group Berhad.
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Market Size
COMPANY
PAID UP CAPITAL
MARKET SIZE (%)
RANK
5.295b
41.22
1st
1.535b
11.95
3rd
4.922b
38.31
2nd
1.094b
8.52
4th
12.846b
100
(000,000,000)
KOSSAN RUBBER
INDUSTRIES BERHAD
DUOPHARMA
BIOTECH BERHAD
KPJ HEALTHCARE
BERHAD
PHARMANIAGA
BERHAD
Total
Table 3.4 The Market Size
MARKET SIZE (%)
9%
KOSSAN RUBBER INDUSTRIES BERHAD
41%
38%
DUOPHARMA BIOTECH BERHAD
KPJ HEALTHCARE
PHARMANIAGA BERHAD
12%
The market size for 2020 is shown in the pie chart above. By calculating market
capitalization of a firm we know how to determine its market size. To raise more funds and
enhance output, a corporation requires more shareholders that paid to investors and it referred
as paid-up capital. According to the research, KPJ Healthcare controls the market in this
business. It indicates to the table above, this company has the biggest market share of 38
percent, with a total paid-up capital of RM 4.922 billion. As we know, KPJ has been at the first
private speciality hospital in Johor when it opened. As a global provider of premium healthcare
services, KPJ is devoted to world-class excellence in every aspect of healthcare in order to
expand their market share. Additionally, their superior medical skills and facilities enable us to
provide one-stop ongoing care to suit the needs of the continually developing market in which
they operate. Next, Duopharma Biotech Berhad was the second-largest market size. They
have a paid-up capital of RM 1.535 billion and control 12% of the market. Duopharma is a
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Malaysian investment holding company with subsidiaries that undertake pharmaceutical
industry. Lastly, Pharmaniaga Berhad came in third place, with a paid-up capital of RM1.094
billion and barely 9% of the industry's market size. Pharmaniaga Berhad is one of Malaysia's
leading integrated pharmaceutical firms, with a strong commitment to defending the country
by providing accessible and affordable healthcare solutions make its more known well in this
country. In conclusion, KPJ Healthcare has a significant market size that has potential clients
to whom Kossan can sell its products or services in order to increase revenue, as they require
medical equipment on a regular basis in order to continue working.
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3.7 Company Strength, Weaknesses, Opportunities and Threats (SWOT Analysis)
3.7.1
i.
Strength
Wide Products Range
Kossan Rubber Industries produce a wide products range of each types of rubber
disposable gloves for healthcare, speciality, and cleanroom. For example, the
product range for latex gloves are PL78 puresafe latex powder-free, PL185
puresafe latex powder-free, PS60Y, and PS68D latex powder-free. While for nitrile
gloves are CL67 chemax nitrile powder-free, CS30 chemax nitrile powder-free,
CS35Y chemax nitrile powder-free and more. Because of the broad variety of
gloves items available, consumers will have an easier time selecting the ideal
gloves for themselves.
ii.
Intellectual Property Rights
Patents and copyright are being used more frequently by Kossan Rubber to protect
their inventions. In this way, they can keep their product invention from being
copied by others in the future.
3.7.2
i.
Weaknesses
Cost of Production
The rising cost of utilities such as gas and electricity will raise Kossan's production
costs. This is due to the fact that Kossan is a manufacturer company that produces
rubber gloves, so a lot of electricity was required during the manufacturing process,
causing Kossan to incur the higher production costs of rubber gloves.
ii.
Significant Investment in Technology
Kossan Rubber will have to make significant investments in the purchase of
modern machinery, as well as in the hiring of more experienced employees to help
them with their manufacturing process. The machineries that were purchased were
exceedingly expensive. As a result, machine maintenance is expensive, and if any
minor or significant accessories are damaged, it will be extremely expensive for
the corporation to fix or replace them.
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3.7.3
i.
Opportunities
Extending the E-Commerce and Social Media Oriented Business Model
The e-commerce business model can assist Kossan Rubber in collaborating with
local suppliers and logistics providers in the international market to sell their
products on online platforms such as Shopee, Amazon, and ebay with product
guarantees. Kossan Rubber has a fantastic potential to boost its online sales
during the covid-19 epidemic season since Kossan Rubber product is essential
during this pandemic and many people prefer to purchase goods online.
ii.
Artificial Intelligence Advances
Kossan Rubber can use artificial intelligence advancements, such as Machine
Learning algorithms, to predict changes in consumer demand as precisely as
possible. Kossan Rubber can sense changes in consumer demand faster and
focus on consumer needs or come up with new product innovations as a result of
this.
3.7.4
i.
Threats
High Levels of Competition
The top four key players in Malaysia's glove sector are Kossan Rubber, Top Glove,
Hartalega, and Supermax. This company poses a threat to Kossan since the
company must compete in order to keep its place in the market. Increased
competition in the gloves sector also may put additional pressure on profit margins
and profitability in the future.
ii.
Customer Dissatisfaction
There is dissatisfaction among Kossan Rubber customers. It's reflected in the
feedback on various online platforms. This dissatisfaction may pose a threat to
Kossan Rubber because most people will consider the feedback before purchasing
the product, resulting in low demand for the product.
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