Proton- The national automaker: A Porter’s 5 forces investigation

Ariful Islam, Abdul Rashid Bin Abdullah

Faculty of Economics and Management
University of Putra Malaysia

Abstract- The Malaysian government policies previously adopted Japanese economic improvement
model for Proton that reflects significant authority involvement considering import tariff,
subsidiaries and suppliers. However, Proton was unable to succeed in obtaining the desired
technology from its Japanese partner, or in developing the ability to survive independently and
compete effectively, especially in the international market. These factors contributed to inferior
quality vehicle models, low export level and decline at market shares. As a result, the focused
automotive industry may perhaps expanded in terms of sales, production, employment and local
content, but failed in industrial upgrading and international competitiveness. It also makes
impossible for Proton to compete with other major auto makers at national and international
premises without government support. It holds some non-core strategic capabilities that specify the
importance of new set of tactics to transform its abilities into essential-competencies. In point of
fact, revision of strategy is needed for Proton. The study has organised 20 semi-structured
interviews considering Malaysian automobile industry related participants as well as used data
based on secondary sources to reveal the competitive strategic issues that shape the competition for
Proton in the automobile industry based on Porter’s 5 forces model. The investigation has explored
major insights related with competitive rivalry, threat of substitutes, buyer power, supplier power,
entry barriers, threat of new entrants, internal environment and support activities. The outcomes of
the study may possibly support both policy makers and other concern automobile related entities to
identify the critical dynamics to initiate appropriate competitive strategic steps towards the business
success for Proton.
Keywords- Automakers, Key players, Strategy, Supplier
Introduction
Malaysia’s fourth Prime Minister Dr. Mahathir bin Mohammed launched a financial scheme named
National Car Project during his 22 years of reign, under which Proton was established at May 7,
1983 (Drebee et al., 2014). Its vision implies to become a Malaysian key player at global context
whereas major missions are to maintain exact standard for each business operation, providing
proper support and care for customers, T&D for employee base, implement intellectual ability to the
design and expertise. The recent product lineup includes Satria Neo at City Car segment,
Saga/BLM/Saga FL/Saga FLX/Saga SV/Iriz/Gen-2/ Suprima S/Preve at Sub Compact series,
Inspira/Persona at Compact series, Elise, Exige at Sports and Proton Edar/ T-Bikes at Bike/Bi-

1
Cycle series (Wozniak et al., 2016). However with time Proton failed to obtain desired success in
improving the ability to compete efficiently or survive strongly, especially considering the growth
at international premises. Facing three straight years of severe losses from 2007 to 2010, later at
2012, Khazanah Nasional divested stakes (42.7% at $425 million) of Proton to DRB-HICOM-a
leading automotive distributor and assembler at Malaysia (DRB-HICOM, 2016). Actually, Proton is
facing organisational and internal restructuring from the very beginning of their journey. This
scenario can be illustrated by the recruitment of new owner, partner, Chairman, response on
sustainable concerns and in the promotion of new models in a determination to gain an international
presence and increase profitability (Hadadi and Almsafir, 2014). However, this study attempts to
analyse different factors that formulate the competition for Proton within the industry through
porter’s 5 forces framework with an aim to recommend major issue involved at this struggling
scenario with rise of domestic competitor Perodua.

Methodology

The basis for explorative study was the acknowledgment that the information assembled
would be from individual sources, and along these lines conceivably abstract conclusions.
Also, the examination is exploratory and no cause and end effect relationship was being
tested, nor was a clarification of associations being looked for. The research outline has
consumed a qualitative investigation design in association with judgemental purposive
sampling method. This sampling method indicates deliberate selection of interviewees based
on criteria set for the research based on porter’s 5 forces analysis. The interviewees were
investigated and sorted out into substantial concern related groupings from which the centre
topics had inferred. The reflected participants were involved in automobile industry of
Malaysia. All meetings with reflected participant’s assent were audio taped for facilitate
examination and were arranged toward the finish of the investigation. The whole procedure
has completed within 5 to 6 weeks’ timeline. All the interviews conducted with face to face
approach on basis of fixed appointments. Before executing an interview procedure, selected
respondents are served basic information about research details as well as given declaration
about their identity security. NGO reports, statistics, financial reports, books, websites, thesis,
project papers and documentary videos have also been utilised for the study as source of
secondary data. Last of all, the context examination with inductive coding has been utilised to
interpret obtained information.

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 Porter’s 5 Forces Analysis

Competitive Rivalry:

The competitive rivalry within current Malaysian automotive scenario can be considered as
Moderate. That indicates the market is disciplined and contains limited business opportunities.
Main reason behind is the utilization of protectionist policy at the domestic market.

Figure 1: Market Share and Sales

Source: MAA (2016)

Utilizing altered NAP, policy makers are trying to create competitive gain for domestic automakers.
As a result of this level playing field the market shares of domestic giants as Proton and Perodua are
gradually declining (Figure 1). Toyota and Honda are major competitors who gained the market
share from them. Main reasons of this gain are improved features and innovations (Lye et al., 2016).
The analysis of related findings is basically showing tight oligopoly trend containing less domestic
rivalry with an indication of improvement.

Some interviewees point that the competitive rivalry at Thailand considering Proton can be
demonstrated as High. In fact, the competition is much intense between Toyota, Honda, Mazda and
Nissan all Japanese automakers at Thai market (Figure 2). Market share is relatively very low for
Proton. Little product differentiation and low market growth are the main contributors behind this
intensity. It is noted that within this kind of competitive rivalry; the sales performance of Proton is
very weak. On the other hand Chinese auto market also holds intense rivalry between FAW-
Volkswagen, Shanghai-Volkswagen, Shanghai-GM, Cherry and FAW-Toyota whereas market the
industry CAGR is still attractive by 11.4 % (McKinsey, 2015).
3
Figure 2: Thailand Domestic Sales

Source: Thailand Autobook (2016)

Threat of Substitutes:

Product substitutes can reduce profit potential at any industry. Malaysian public transport
(RapidKL, LRT, Monorail, KTM) can be a substitute for automobiles. But poor service quality of
public transport comparing to high motorization level and concern for comfort among Malaysian
people makes the threat comparatively low till now (Khalid et al., 2014).

Figure 1: Number of Different Registered Vehicles (Subject: Penang Area)

Source: www.jpj.gov.my

Figure 1 shows that use of motorcycle is significantly high at different Malaysian region. So it can
be considered as another threat of substitute product. However, the comfort provided by these

4
substitutions is very low considering private motor vehicles. Private cars offer better comfort and
service quality as opposed to other sources of transportation at Malaysian premises.

Figure 2: Electric Bicycle Production in China

Source: Navigant Research (2016)

Chinese automotive scenario is facing moderate threats from substitute product as E-bicycle (Figure
2). This product has an electric motor and can speed up to 20miles/hour. It also offers low cost,
emission free transport option for general people segment. Conversely it is banned at some major
Chinese cities regarding safety issues (Li et al., 2016). There is also threat from new technology
products like autonomous transportation system at Chinese market within 2020. 75% of Chinese car
owners are willing to ride this type of safe accident free transport option (Pettersson and Karlsson,
2015).

Buyer Power:

Buyer power actually indicates the gravity customers can exert into business market in order to
purchase higher quality products. A large of portion of reflected participants criticise that Malaysian
policy makers put domestic automakers ahead comparing to foreign automakers by the use of
protectionist guideline. This scenario limits the choice for buyers and pushes them to buy cars
produced by local manufacturers. Here the tendency is towards low priced vehicles from
consumers. Table 1 shows that tax free price of Proton Iriz Premium 1.6 CVT is almost equal to
Honda Jazz 1.5S. Obviously Honda holds more values than Proton. This may improve the
bargaining power of Malaysian buyer considering low cost switching to other car makers.

Table 1: Price Comparison between Proton and Honda

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Source: www.aam.org.my

On the Other hand, due to high import duties and other charges foreign superior quality vehicles are
much expensive in Chinese market comparing to local brands. Audi A8 costs $86,000/- at Seattle,
USA comparing to almost $200,000/- in Beijing, China. Matter of fact that some locally
manufactured vehicles as Audi Q5 also priced higher (150000/- Yuan) than imported one
(Tailormade Chinese, 2016). Chinese customers are more price sensitive and always look for higher
quality premium products. Due to high demand sometimes dealers mark-up the price several times
upper than the original price especially at premium car segment. However, currently customers
have access to accurate information to compare products or prices from company or dealer
websites. High quality of info indicates strong force regarding bargaining power of buyer
(Filipovic, 2015).

Supplier Power:

Bargaining power of supplier explores the force they can exert into business market through raising
prices, controlling the availability and lowering quality or their items. There are more than 800
producers who are manufacturing body panels, break parts, engine components, rubber parts,
steering parts and electrical units at Malaysia (MACPMA, 2016). At 2013 this segment generated
sales, import and export revenues of RM 9.75 billion, RM 7.17 billion and RM 2.88 billion
respectively (Figure 1). ASEAN region, Thailand and China are the major export destinations for
component manufacturers. Recent NAP sets target to upgrade 180 vendors to Level 5 (Tier-1) in
order to help domestic automakers (MAA, 2016). Supplier competitiveness can greatly improve the
performance of domestic automakers. It may become easy to avail quality components at lesser
price for better quality vehicle production

However, still the automakers depend on Japanese and Thai producers for relatively critical vehicle
components at this region (Table 1). Proton Waja model successfully implemented 95% of local

6
contents except powertrain. But generally local content requirement remains in between 40% to
55% (Lye et al., 2016). Multinational Producers: Delphi
Automotive Systems, TRW, ZF,
Figure 1: Malaysian Motor Components and Parts Business Scenario
Bosch, Denso.

Local Producers: APM Automotive,

Sapura, Delloyd, TCM, Ingress.

Source: MIDA (2016)

Table 1: Local Content Ratio for Major Automakers

Source: MAA (2016)

Above analysis arguably indicates that weak force of supplier power is operating at Malaysian
automotive market (Proton and Perodua holding 50%+ market share) and automakers can easily
shift to different producer which renders better quality and lower price.

7
Actually, due to high density of different kind of part makers, the bargaining power of suppliers is
weak at Thai market. Thai auto industry contains 690 Tier 1 and 1700+ Tier 2, 3 auto components
manufacturers (Figure 2). However, critical electronic components are imported mainly from Japan
(Caiyuan and Long, 2015). To encourage local producers, policy makers are offering maximum tax
breaks considering electric component. Parts of eco-friendly or fuel efficient vehicles also
appreciating import tax reductions.

Figure 2: Structure of Thai Part Producers

Source: Thai Auto parts Manufacturers Association (2014)

Threat of New Entrants and Entry Barriers:

Whenever a company enters into particular business industry; the competition increases naturally.
To control this threat, there must be some entry barriers at that particular industry. Previously
protectionist scheme, duty/tariff, local content requirement sheltered domestic automaker Proton
from threat of new entrants. However, altered NAP guideline reduces import duty on CKD and
CBU vehicles from ASEAN countries to 0% and 5% respectively. Provision of 100% investment
tax allowance has been offered for EV or Hybrid vehicle production. But the restriction on re-
issuing commercial vehicle license is still under freeze (MAA, 2016). Actually relaxation of entry
barriers may attract investment to Malaysian automotive market but creating threat of new entrants
for Proton is actually low to moderate. On the other side, Toyota, Honda, Nissan and other big
names are operating in Malaysian market with two major domestic players (Figure 1). This is
another reason for less threat of new entry at the market.

Figure 1: Automakers at Malaysian Market (2015)

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Source: www.left-lane.com

Figure 2: Market Share in Chinese Automotive Scenario

Source: CAAM (2016)

China is not a single market. Every province as Shanghai, Guangzhou, Jiangsu has different
obligation for automobile industry (Lu and Ruan, 2016 ). Another entry barrier is China’s highly
regulated infrastructure that foreign automakers can only setup manufacturing plant through joint
ventures. There is also presence of high taxation, protective policy for domestic automakers and
high capital requirements. Major domestic players: SAIC, Dongfeng and FAW have joint ventures
with GM, VW, Honda, Nissan and Toyota (Figure 2). These big names also restricted the threat of
new entrants at the market. Though low end vehicle segment is still uncontested at Chinese market
and holds significant business opportunity for new entrants considering lower price and better
quality.

In case of Thai market, the threat of new entrant is relatively weak. It requires a lot of capital to
establish a manufacturing plant, brand presence, distribution network and R&D framework to bring
9
out differentiated product lines into order to compete at Thai market (Natsuda and Thoburn, 2013).
Government regulations, taxation and high import duties are another entry barriers is this aspect.
Thai market is dominated by foreign automakers as Toyota, Ford, Suzuki, Nissan and Mazda who
already have captured the market and struggling to make significant profit (Wozniak et al., 2016).

Analysis of Internal Environment:

Value chain analysis (VCA) is a strategic tool introduced by M. Porter (1985) to investigate and
analyze a firm’s internal activities and processes. It is very useful and flexible to develop
competitive gain on both cost and product differentiation (Fearne et al., 2012). This framework also
provides deeper insights on strengths and weaknesses of any company. This framework criticized
by Lucas and Tsai (2013) on basis of manufacturing business focus and segmentations of
operational procedure. Here this report attempts to explore how to pursue a competitive advantage
for Proton based upon primary and secondary activities of the concern framework.

Figure 1: Value Chain Analysis of Proton

Source: M. Porter (1985)

Primary Activities:

[a] Inbound Logistics:

Proton’s inbound logistics handle receiving of components, warehousing and inventory control of
input items. Previously Proton was maintaining 287 vendors, 3000 sub suppliers and 5000+ auto
components in which only 10% held “A” grade level of efficiency (MAA, 2016). That hampered
the image of Proton with defected and unfinished products related to low quality of suppliers.
Result of this Proton decided to reduce the number of suppliers and vendors by 60%. Currently
10
Proton is holding 141 vendors among them 32 are Tier-A to fulfill their manufacturing requirements
and increase the efficiency of inbound control (Schöneberg et al., 2014). There is also presence of
Just-in-Time (JIT) tactics regarding inventory management of Proton. This tactics provides the
benefits of developing high quality products, reducing inventories and good relationship with
vendors/suppliers. Purchases are completed when wanted and all stocks are reserved in warehouse
situated at manufacturing plant or sourced warehouses at other locations considering proper quality
check. Proton helps in supplier integration through periodic meetings and other activities.

Table 1: Market Share of Domestic Cars

Source: www.theibjm.com

Proton’s vendor list includes key players like: GSK Technology, HICOM Die-casting, HIL
Industries, Ingress, LC Rims etc (PVA, 2016). Ingress Corporation is major vendor for Proton who
has strong international presence at Thailand and Indonesia. Proton receives door components, body
panels, break parts, bonnet and stamping components from them (Ingress Corporation Berhad,
2016). In fact majority of Tier-1 suppliers or vendors can play a significant role satisfying product
improvement requirement of Proton regarding business growth. Table 1 proves that quality of
received product from Tier-1 or reliable suppliers can impact on market share (averaged 27% at that
time span). It is to be noted that Tier-1 segment is furthermore able to operate its own research
framework for product development.

[b] Operations:

This part includes value creating initiatives that converts the inputs at finished product. Operational
activities at Proton can be categorized at several dimensions as product plan, engineering services
(product development), styling and technology improvement, process perfection and cost reduction
(Figure 1).

Figure 1: Basic Operational Procedure

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Source: www.theijbm.com

In engineering segment, Proton always upgrades the features of their vehicles under numerous
systematic evaluations and improvement initiatives. As an example: Proton Persona has been
undergoing continuous improvement and new model holds 1.6 fuel efficient VVT engine, light
weight, keyless start option, VSC system and better breaking performance comparing to previous
models (Proton, 2016). Currently the company is trying to use modern styling and improved
technological capacity for produced vehicles in order to explore overseas markets. Result of this
newly launched Proton Persona (2016 Model) is very assertive regarding styling with association of
slim headlights and grills, chrome bars, stylish executive dashboard. This model also holds
advanced safety options for consumers (Solutions, 2016). At Life Cycle Management stage this
company is positioning their focus on remanufacturing tactics. It may save energy by 60% and raw
material by 70% (Fujimoto, 2013). However, Proton previously criticized for it’s lead acid batteries,
break fluids, catalytic convertors and disposal procedure. All these indicate lack of lean
manufacturing framework (Shamsudin et al., 2016). The company also emphasize on cost reduction
and quality control. Implementation of digital design tools for designing the vehicles and lessening
the use of costly raw materials are major initiatives regarding cost control. Dedicated quality
improvement team has been working to ensure proper operational quality regarding high quality
vehicle production (Sim, Ki Youn and Keun Lee, 2014). Total operational procedure executed at
two plants: Shah Alam and Tanjung Malim plants with respective capacity of 240,000 and 150,000
vehicle units per year in association with workforce of 6000 personnel (Proton, 2016). Workforce is
also supported by robotics technology. Actually Proton received their operational competitive
advantage from partner global automakers like: Mitsubishi, Renault, Peugeot, Lotus and years of
continuing operation. This is surely a major strength area for Proton regarding business
competence.

[c] Outbound Logistics:

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This part holds the systematic processes which are important to deliver the finished product to the
consumers. To complete the production process external involvement is necessary. In this stage
Proton transfers the responsibility to EDAR (Proton-Edar, 2016).

Figure 1: Overseas Logistics Operations of Proton

Source: www.marketresearch.com

All completed vehicles usually shift to EDER warehouses all around Malaysia. The amount of
distribution depends on customer request. Proton also has two own reserve destinations as
Sijangkang (store up to 7000 units) and Tanjuang Malim (store up to 6000 units). These warehouses
operate under CLASS 2 standard and basically used for export purposes (Rozar et al., 2015). The
warehouse activities allow reduction of storing costs up to 40%, less waiting time maximum of 3
days and fewer secondary defects. Though Proton has some sort international presence at Uk, South
Africa, China, Mid East, Bangladesh, Indonesia and some other regions (Figure 1); obviously they
need to use shipping tool to meet the customer requirements. At this part they monitor shipping
notification and the delivery process carefully (Wad and Govindaraju, 2011). They also practice
return of goods in case of rejected items.

[d] Marketing and Sales:

Domestically marketing and sales activities are managed by Proton EDAR (Proton-Edar, 2016).
They are accountable to market and sell available Proton car products throughout Malaysia. All
newly launched models go through some channels like: newspapers, radio, brochures, road shows
and advertisement at TV. EDAR has own marketing executives which control other sales
representatives to promote sales of Proton vehicles.

Figure 1: Proton EDAR Profit and Benchmark Score

13
Source: www.emis.com

Proton EDAR created great brand presence for the company by proper positioning of the brand and
capitalizing the opportunities to attract potential buyers. Recently the profit margin of EDAR
showing downward trends (Figure 1). Lack of online sales is a vital reason behind the scenario
(Filipovic, 2015). Nevertheless, Proton also operates sales and marketing channels at different
countries like: China, Uk, Indonesia, India and Bangladesh etc. But the market share is reasonably
low at those countries for Proton. It actually illustrates the importance of new product or product
development initiatives for Proton in association with aggressive sales and marketing activities at
both domestic and international premises.

[e] Services:

Service initiatives hold after sales support or customer support activities that help to increase the
value of the product. Proton offers various services and maintenance for their customers after
purchasing the unit. They always sell genuine motor components for servicing. They have 32
authorized service centers that operate 24/7 for better customer satisfaction. Online booking option
is available for better service experiences. There is also existence of mobile assistance for
emergency road side support (Proton, 2016). Quality improvement team (QIT) is active and
customer driven to solve new issues and problems (Rouse, 2015).

Figure 1: Malaysia Customer Service Index

14
Source:www.marketresearch.com

But in spite of all these options Malaysian customer service index has given the lowest rating to
Proton (Figure 1). After sales service is a vital concern for boosting any automakers brand image
(Shahrouzi Fard and Hosseini, 2014). So it is needed to increase the service level efficiency at least
near standard level considering brand loyalty in order to compete with foreign brands.

Support Activities:

[a] Procurement:

Figure 1: Procurement Functions of Proton

15
Source: Self-Made**

Proton’s procurement functions involve a) import parts or b) acquire domestically (Figure 1).
Domestic procurement has two options: a) in house manufacturing and b) outsourced through
subcontracts.

Table 1: Domestic Procurement of Different Components

Self-Made** (source:www.protonvendors.com)
Proton acquires most of the non-body, transmission and engine components from domestic
premises (Table 1). Proton prefers to outsource locally to control the expenses. Relationship
management has been practiced with vendors through exchange of engineers.

[b] Technology Development:

Proton nurtures its technology part by implementing different tools (PTAC & PTR) with association
of value chain activities (Kobayashi et al., 2015). As instance PTAC (Proton Tech Advisory
Council) is accountable for specific arrangements and risk minimization of technology. Conversely,
PTR (Proton Tech Roadmap) serves as an outline for future car manufacturing. Technology
department also holds styling studio, CAD/CAM options, test labs, engine development unit, test
track and noise lab (Proton, 2016). Proton benefitted from technological transfer considering Lotus
acquisition. Lotus is basically a British sports car manufacturing company and famous for faster
engine technology (El-Sayed, 2012). Steering, rims, bumper, dashboard, outlook, exhaust etc
16
engineered and designed by Louts technology for Proton. Proton also has achieved the capacity to
build CamPro engine of 1.6L with low fuel consumption (Motor Trader, 2016). Direct injection
technology is also used at several models regarding low fuel consumption and better engine
efficiency. The findings also explore that currently the company is struggling to attain the
production ability of environmental friendly vehicles (Hybrid and EV) to sustain in the market.
However, Proton invested more than RM 18 billion for their R&D enhancement over 30 years (The
Star Online, 2016). The EMAS project in under pipeline in association of Lotus Range Extender
Engines. This is actually a hybrid concept but acts like fully E-vehicle. Nevertheless it is necessary
to enhance Proton’s R&D capacity by joint ventures.

[c] Human Resource Management:

The company has collaborations with different institutes to safeguard fresh skills sets in its
operational procedures (Figure 1). It has links with University of Putra (UPM), University of
Teknologi (UTM) in order to achieve intellectual manpower capital applicable for concern industry.
The joint effort was invigorated by the organization as the method for enhancing demonstrable skill
among young people that will empower the organization to fortify its Research and Development
procedures adapting to new innovation and obtaining of new talented staffs (Tan, 2014)

Figure 1: Strategic Collaboration with Different Institutes

Source: http://ii.islam.gov.my

Talent management unit under HR recruits foreign expatriates and international workers to integrate
new intelligence, skill sets and culture (Juhdi et al., 2013). It actually divides the core responsibility
17
under career acceleration and functional breadth. There is also presence of Training and
Development Programs to improve employee skills regarding better performance. Periodic
competitions (PIIC) bring out innovative ideas into implementation. Moreover, Proton’s HR
strategy much focused on leadership development (Figure 2). Today’s organizational success ratio
is fully dependent on capable corporate leaders (Ciucur and Pîrvuţ, 2012).

Figure 2: Proton Leadership Development Tactics

Source: http://ii.islam.gov.my

Efficient HR activities may perhaps help Proton to secure a competitive position in recent
automotive business scenario. But it is also criticized for Industrial Co-ordination Act (ICA)
whereas the policy is accountable for 30% Bhumiputera at senior level management. Thlis kind of
quota may bring down the efficiency level (MIDA, 2016).

[d] Infrastructure:

A company’s infrastructures part indicates financial side as well as legal side in association with
quality management. Proton Malaysian national carmaker is owned by DRB-HICOM and holds
sufficient production capacity to explore overseas markets. DRB-HICOM has significant
international presence and recently they started a joint venture with Goldstar (50%) and Lotus
(10%) in China. Total investment at this joint venture is RM 1.61 billion. However, Proton has been
trying to improve the structure by industry collaborations, partnerships in association with
continuing government subsidy and incentives (Salleh et al., 2012). The firm also practices
centralized information system under top-down management style.

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Figure 1: Financial Position of DRB-HICOM

Source: www.drb-hicom.com

Considering its current financial scenario, this report identifies significant decrease in DRB-
HICOM’s profit margin comparing to previous years (Figure 1). Net loss of the owner company is
RM 991.90 million at March 2016 fiscal year. The recovery plan includes RM1.5 billion loan from
policy makers with an aim to expand market in local and international premises (The Star Online,
2016). On the other hand recent altered legal environment impact the domestic automaker Proton to
put much focus on lean technology of production (Bednár, 2014). Proton is required to contribute
efficiently with more EEV models to maintain reasonable profitability.

Proton initialized the total quality management (TQM) activities and improved 50% quality
considering eliminating defects at all plants (Proton, 2016). Zero defect schemes improve the
quality level for Proton by solving the root of the cause. TQM is vital for improved quality culture
and quality ownership (Muruganantham et al., 2016). Workforces are also trained to analyze and
solve or enrich operational execution based upon PDCA. Outsourced teams also play a part
contributing at productivity and quality concerns under different projects.

Conclusion

The worldwide automobile industry is quick re-structuring, activated by R&D progressions and
changing purchaser inclinations in association with sustainable concerns (Sarmah, 2016).
Expanding digitization and robotization is soon going to alter the business where everything will
happen at the squint of an eye. As indicated by McKinsey report (2015), in 2030, the offer of
electric vehicles units (fuel cell, hybrid, hybrid plug in) could extend from 10 percent to 50 percent
of new-automobile purchase deals. So it required for Proton to attain brilliance, innovative
competencies and efficient performance under a sustainable framework to ensure future business
growth and further existence.
19
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