Assignments: A comparative analysis of 2 businesses of similar industry in different geographical locations

Report title: Factories

Group members:

Names: Roles:JOSEPH SOH (0323887) -Contact the interviewee

-Video recorder

LOH WEN JUN (0323551) -In charge of interview-Report writing

TAN JIT KIM (0323854) -Report editor-Information collector

TEH WEI HONG (0323743) -Video editing-Designing covers

THOMAS TING SHII KAI (0323962) -Organizing roles-Report editor

CAROL TANG NGIE BING (0323963) -Slides designer-Gather information (slides)

CHRISTINA CHUA YI MEI (0323859) -Prepare questions-Slides designer

English 2 (ELG30605)

Lecturer: Mr GopiGhantan Mylvaganam

Submission and presentation date: 15 January 2016

Table of Content:

No: Title: PageNumber:

1 Key Summary

2 Descriptions of the history of the trade

3 Descriptions of the businesses

4 Competitive analysis of competitive traits

5 Recommendation

6 Bibliography

7 Appendices

8 Attachments

9 References

Key Summary:

Based on our research, LED lightings are quite advantageous and save to the environment. We have chosen two particular businesses, Nitto Optotronics in Puchong, Selangor and Opto Semiconductor in Taiping, Perak. Both have a similar advantage, which give a greener environment. With eco-friendly usage, they believe that a green practice represents the future. An essential component of businesses could achieve sustainable and profitable growth. They managed to find a more unique way by using LED lightings to reduce the energy cost and make most of their energy efficient. Although having competitors such as Philips and Toyota.

(100 Words)

Description of history of trade:

People needs lights to see as when the sun rises or the sun is still rising we need lights to see as lights is the natural resources that we basically needed to survive the surrounding environment. Especially, we need lights during the dark and at night, the vision become darker and turned black as lights are the most important things to see things in the dark.

As technology is getting better and more advance. LED lights are invented as this technology can help to save energy compare to using normal lightings which would use more energy. For example, making lights we need plastic and the resources underneath earth such as petroleum to form it. Not only that, we will also need power supply to light it up. Therefore, by using the advances of this technology, it will have longer lifespan and could save the power needed to light it up. To relate this, power from 36 watts for normal lightings, LED lights only need 18 watts of power supply. It also generates a brighter and clearer view. At the same point, it create safety measures as human can see much better as LED lightings lights up instantly when switched on.

Instantaneously, LED lightings also have a difference between normal lightings as LED generates 80 percent of lights and 20 percent of heat and for normal lightings, they would generate 80 percent of heat and 20 percent of light. As for this situation, it will be a waste on heat than getting more lights. This will also be energy efficiency as without releasing much heat to the surrounding, it will be much cooler to the surrounding even though when the LED lights are turned on for longer period of time. Without heat, we can actually save a lot of things such as reducing the cooling time in a room and reducing the carbon emission, which is harmful to humans.

However, purchasing LED lightings will cost a higher price than the other lightings due to the advance of the technology. But consider in a long-term usage, it will reduce the cost compare to normal lightings such as current saving and maintenance of the lightings.

Nowadays, LED lightings can be purchase everywhere but there is several types or grades of LED lightings that could generates a brighter lights but could not last long or the other way round. This type of LED will use more energy as brighter bulbs uses more power supply compare to the other LED lights. That is to say competition occurred and they have to make a lower cost LED with potential as LED lightings can last a longer period of time and bright enough.

Description of business:

The research of this assignment is based on the analysis of two-auto semiconductor business. Both of the companies are located 150 km away from each other. Nitto Optotronics is located in the city of Puchong, Selangor and Opto Semiconductor is located in Taiping, Perak.

Location of 1st company, Nitto Optronics:

Location of 2nd company, Opto Semiconductor:

Company 1: Nitto Optotronics

Location: B-6F-05, IOI Boulevard, Jalan Kenari 5, Bandar Puchong Jaya, 47170 Puchong, Selangor

Number of branches: 2

Number of employees: 500

Main service: General lighting

Estimate current number of customers: 5 projects

Business started: Since 2010

Founders: Group of Consortium

Motive for starting the business: Going green and eco-friendly to save the environment

Recent development: Ikano shopping centre

Changes: More type of lightings and streetlights, from down-lights to high bay lights

LED lighting products from Nitto Optotronics:

There are a different variety of LED lightings, which is used for different purpose. Each type of LED lightings serves different functions.

NITTO LED STREET LIGHT

Power consumption: 80w, 120w, 160w, 200w, 240w, and 280wBeam angle: Type 2 & 3Input voltage: AC 100 ~ AC305Power factor: More than 0.95Efficiency: More than 90Weight (kg): 8.3, 9.5, 10.7, 11.9, 15.0, and 16.3Operation temperature: -40`C~50`C, 10%~90% RH

NITTO LED HIGHBAY LIGHT

Power consumption: 100w and 150wBeam angle: 35’, 60’ and 90’Input voltage: AC 100~AC 305Power factor: 0.99, 110 Vac and 0.96, 220 VacEfficiency: More than 90%Weight: 2.40 kgOperation temperature: -30’C~60’C

NITTO LED FLOOD LIGHT

Power consumption: 100w and 150wBeam angle: 35’, 60’ and 90’Input voltage: AC 100~AC 305Power factor: 0.99, 110 Vac, 0.96, 220 VacEfficiency: More than 90%Weight: 2.4 kgOperation temperature: -30’C~60’C

NITTO LED ROUND DOWNLIGHT

Power consumption: 3w, 5w, 7w, 9w, 12w, 16w, 20w, 24w and 30wBeam angle: 90’Input voltage: AC 85`265VEfficiency: More than 90%

NITTO LED LIGHT BULB

Power consumption: 5w, 5w-D, 7w, 7w-D and 10wBeam angle: 335’Input voltage: AC 10~AC 265VEfficiency: More than 85%

NITTO CHROMO-SPOT LIGHT

Power consumption: 4.5w, 7wBeam angle: 45’Input voltage: AC/ DC 12VEfficiency: More than 85%

Nitto Optotronics:

As this is the first branch of Nitto’s company, this is the main place where it is located in IOI Boulevard, Puchong. This is also the office and the place where LED lights are displayed

The LED lighting display:

The LED lights are displayed so that other buyers can have a look at the type of LED lighting they want to purchase. The LED light can be switched on to differentiate the brightness. The type of LED lighting that was shown is streetlight, high-bay light, flood light and round down light.

Company 2: Optotronics Semiconductor

Location: Lot 10563, Jalan Perusahaan 3, Kemunting Industrial Estate, 34600 Kamunting Perak

Number of branches: 3

Number of employees: 650

Main service: Automotive semiconductor

Estimate current number of customer: 2 projects

Business started: 16 years ago

Founder: Group of Consortium, a few people took over 5 years

Motive for starting the business: Specific players, clean and strategic

Recent development: Automotive lights for Toyota car and LED modules for alarm system

Changes: Highly automated line service by using robot and reduce the number of labour

Type of LED products from Optotronics Semiconductor:

The types of LED chipset are solid-state lighting, semi conductor chip, no filament gas or mercury.

The contract manufacturing service provider specializes in semiconductor based activities from package assemblies to light modules.

LED module

Automotive Rear Lighting:

LED chipset that are manufactured in the factories are then placed in the car rear lights. These lights include brake lights and signal lights. The LED that has a longer lifespan and brightness ensures the safety of the other passengers especially driving during the night.

Philips Supply Chain Security:

Besides automotive LED lights, other electronics such telephones, CCTV cameras and monitor are also applicable of using LED chipsets and LED modules. This LED lights were created for installation in the electronics products.

Implementation products:

• Background check• Screening and validating• CCTV & Alarm System• Security Lock and Seal• Procedural control

Facilities and capabilities:

The factory is the main facilities of the Opto Semiconductor industry. The purpose is to produces LED chipset lights for automotive cars and other LED lights modules for other products.

Comparatives analysis of business competitive traits:

Business 1: Nitto Optotronics

Nitto Optotronics is located in IOI Boulevard, Puchong. It encounters a few other competitions. This is because other business realized the chances and opportunities to earn profits in this area due to the usage of the LED light products. They sell the same products at different price range will cause more competitors. In order to compete with other businesses, each business would have to offer a lower price of the product but not change in the quality of the LED products.

Top 3 competitors:

The top 3 competitors of Nitto Optotronics are Philips, Osram and GE. They all sell the same products of LED lightings.

Competitor 1: Philips

Philips is located in Petaling Jaya. Lighting systems from Phillips help people feel comfortable, productive and safe. They beautify spaces and transform environments. Phillips lightings system combines with LED luminaries and digital controls that deliver illumination experiences. Phillips lighting systems focuses on energy efficiency, sustainability and operational cost reduction.

Competitor 2: Osram

Osram is also located in Petaling Jaya. Osram Opto Semiconductors is one of the guiding lights especially LED lightings in technological development and in the production of high quality products. For the past four decades, the high tech company had been investing in research and developing new products of LED lights on the technological cutting edge. Semiconductor is standards in the field of illumination and visualization.

Competitor 3: GE

GE lighting is located in Sentral of Kuala Lumpur. GE’s LED solution is the choice illumination for external environment and signage for Malaysia’s premier residential development D’ island residence. The products that were specified are GE’s roadway light system. The GE lighting brings an excellent quality to the development. GE lighting also offers its client reduced cost and lowered on the environmental impact.

Strategies employed by Nitto Optotronics to compete with other competitors:

To compete with other competitors, Nitto Optotronics factory had being producing the LED lightings that are brighter than the others. Besides that, Nitto Optotronics also manufactured different variety of LED lightings such as down lights, street light and round down light which is explosion proof and is safer to be used.

By developing these products, Nitto Optotronics become more competitive compare to the other businesses. To ensure that the LED lights are comfortable and beneficial to the environment surroundings, Nitto Optotronics also produced lights that consume less current and save the power supply so that the LED lights have a longer lifespan compare to others. Energy efficiency is also something that Nitto Optotronics want to achieve. By using energy in the smart way, the LED lightings will not release heat even after switching it on for a long time.

Business 2: Optotronics Semiconductor

Optotronics Semiconductor is located in Taiping, Perak. Since there are only a few companies in the world that relate to this automotive semiconductor industry because the safety standard for the automotive vehicles required are very high, there were no competitors for these business, which is creating semiconductor for automotive vehicles. It can be considered that Optotronics Semiconductor is the only few companies in Malaysia that involve in this industry.

Comparison between Nitto Optotronics and Optotronics Semiconductor

Similarities

TYPE OF LIGHTINGS LEDTARGET/ACHIEVEMENT Create LED lighting that have longer lifespan

INDUSTRY Manufacture from factory

FOUNDER Group of Consortium

STRATEGIES Tolerate the price

Differences and Contrast

Nitto Optotronics Optotronics SemiconductorCOMPETITOR

S3 None

ESTABLISHED YEAR

5 16

FIRST PLACE COMPANY

ORIGIN

Yes No

NUMBER OF BRANCHES

2 3

NUMBER OF EMPLOYEES

500 650

NUMBER OF CLIENTS

20 2

REVENUE OF COMPANY

20 to 40 millions 60 to 70 millions

MOTIVE Going green and eco-friendly to save environment

Be specific players, clean and strategic

HOW OFTEN RELEASE

NEW PRODUCT

Every quarter of the year No new product

Obstacle faced by new businesses

Obstacle Information

Insufficient budget to open a business

Starting a new business of manufacture factory required a huge amount of money and could not gain much profit. It is almost impossible to find a businessman who is willing to lend money. Even if borrow money from bank loan, the huge sum of money have to be returned to the bank. It might take longer period of time until the money is completely returned.

Competitors are located everywhere

LED lighting are beneficial in Malaysia, especially many places requires LED lights to works. Due to the modern technology, LED lights had been invented and many competitors are selling their own LED lighting products. They also offered a lower price to attract more customers. Energy efficiency are also important for LED lights as it save energy and the environment.

Certification of production

Not all businesses could achieve this qualification as it is based on the requirements. A company had to follow the requirements, specification and guideline. This standard, which applies to the requirement of quality management system of a business. It is the model for quality assurance in production, installation and servicing.

This obstacles and problems faced by new businesses had low chances to overcome, as it is based on their budget and they required a lot of sacrifices from a businessman and bank loan.

Conclusion of Analysis

Based on what I had research between the 2 businesses, both company that sell LED light product are very competitive. Although one business sells LED lighting and the other sell automotive semiconductor. The resources are set up with LED lighting products. Since semiconductor industry had no competitive in Malaysia, it had being the only business that involve in selling automotive semiconductor from LED products. Semiconductor industry could earn a higher profit and is very affordable to the market. Automotive vehicle could install the brake light and signal light with the use of semiconductor of LED products for a longer lifespan. It is also safe for other driver to notice that the brake light and signal light of the vehicle especially during the night. Although Nitto Optotronics had competitors which sell their own lighting design using the LED products. These businesses had being very competitive among each other and they would continuously compete to earn a higher profit of their lighting products.

Recommendations:

Business 1: Nitto Optotronics

CURRENT AREA OF IMPROVEMENT

RECOMMENDATION

Not enough branches and companies around

Open more branches and companies of Nitto Optotronics somewhere further than the current location. Maybe in other states so that it is easier to travel to the nearest factory.

Technology for internet communication for selling products and marketing are still inactive

Advertise more of the LED products online especially internet marketing and sell more of the products on the website and published it.

Not a good location since its located on the highest floor of the building making it difficult for people to notice it and recognize

Before opening another branch of Nitto Optotronics, choose a good location where it is beneficial to the surrounding environment. Choose a place where it is larger and easier for people to see and notice it. It is better if it is located beside the roadway or other places so that people would pass through it.

Business 2: Optotronics Semiconductor

CURRENT AREA OF IMPROVEMENT

RECOMMANDATION

Don’t really market much, did not have much communication through internet

Advertise more of the automotive semiconductor product to the market so that the products will be more recognized by the market and promote the LED products through the internet to communicate with others. Strategy is also another important factor to improve the current situation.

Cost had increased causing the reduction of buyers in the market

Try to tolerate the price of the products to increase the number of buyers in the market and the profit earned.

Opto Semiconductor only had two customer which is Toyota car and Phillips Lumileds

Advertise and promote more of the LED products so that other customer would want to use more of the automotive semiconductor, which is energy efficient, and reduce the usage of the power supply.

Bibliography

1) Nitto energy efficiency solutions (2015/2016 ed., p. 28). (1996). IOI Boulevard, Puchong, Selangor

2) Optotronics semiconductor Sdn. Bhd (2011 ed., p. 24). (1996). Manufacturing Plant P1 Kamunting, Perak

3) Smith, F. Reading. Cambridge: Report writing (2008) Retrieved from http://www.skillsyouneed.com/write/report-writing.html

Reference

1) Nitto Optotronics. (n.d). Retrieved from http://www.nitto-opto.com

2) Optotronics Semiconductor. (n.d). Retrieved from http://www.optotronic.net/about.html

Appendices

Appendix 1: Survey questionnaires and answers

Date: 2 January 2016

Time: 12.30 pm

Location: Nitto Optotronics, IOI Boulevard, Puchong

Interviewed person: Mr. Loy

Job position: Senior Sales Manager

Office phone number: +6013 – 80754377

INTRODUCTION

1) May I know your name?

-Loy

2) What is your position in this company?

-Senior sales manager

3) How long have you been working for this company?

-8 years

4) What is the full name of this company?

-Nitto Optotronics

HISTORY OF THIS COMPANY

5) When was this company first started?

-Since year 2010

6) How did this company first originated?

-By automotive lighting

7) Who is the founder of this company?

-Group of Consortium

8) Is this the first place that the company originated from or it had been relocated?

-It is the first place and it has not been relocated

9) How many branch companies that your companies have?

-2, Bukit Minyak, Penang and Taiping Kamunting, Perak

10) How many employees in total are there?

-500 and above

11) Can you estimate the number of clients that you have now

-20 locals and 5 overseas

12) How much is the revenue your company generates per annum?

-Around 20 to 40 millions

13) What is the progression over these five years?

-Explore more overseas market, Sri Lanka, Aus

14) What is the motives that drive your company?

-Going green and eco friendly to save the environment

15) How does the company make use of technology for Internet communication and outside marketing like email, internet, World Wide Wed, videoconferencing etc?

-Energy saving and trace electric consumption by server

16) How often does this company release new product

-Every quarter of the year

17) Was the pricing of the products strongly influenced by the other competitors?

-Yes

COMPETITION

18) How many company that are doing the same business around the area?

-Osram, Philips and GE

19) Can you list a few competitors and also their products?

-Philips

20) Would you prefer having a lower pricing for your products, advertising and also their products?

-Tolerate the price but not quality

21) What was the company’s plan in five years?

-Trying to explore overseas market

Date: 6 January 2016

Time: 3.30 pm

Location: Optotronics Semiconductor, Taiping, Perak

Interviewed person: Simon Soh

Job Position: Co-founder

Office phone number: +6012 - 80754377

INTRODUCTION

1) May I know your name?

-Simon Soh

2) What is your position in this company?

-Co-founder

3) How long have you been working for this company?

-5 to 6 years, 15 years register

4) What is the full name of this company?

-Optotronics semiconductor

HISTORY OF THIS COMPANY

5) When was this company first started?

-16 years ago

6) How did this company first originated?

-By subcon

7) Who is the founder of this company

-Group of Consortium, a few people took over 5 years

8) Is this the first place that the company originated from or it had been relocated?

-No

9) How many branch companies that your companies have?

-3 manufacturing plants

10) How many employees in total are there?

-650

11) Can you estimate the number of clients that you have now

-1 or 2 main OEM subcon of Phillips lumileds, automotive light, Toyota car

12) How much is the revenue your company generates per annum?

-Around 60 to 70 millions

13) What is the progression over these five years?

-Highly automated line service by using robot and reduce the number of labour

14) What is the motives that drive your company?

-Be specific players, clean and strategic

15) How does the company make use of technology for Internet communication and outside marketing like email, internet, World Wide Wed, videoconferencing etc?

-We did not market much, use Internet for communication

16) How often does this company release new product

-Did not release new product, because the product are high end product

17) Was the pricing of the products strongly influenced by the other competitors?

-Did not have much competitor, cost had increase because of currency exchange will have little impact

COMPETITION

18) How many company that are doing the same business around the area?

-In this world only few company because the safety standard required is very high

19) Can you list a few competitors and also their products?

-Toyota

20) Would you prefer having a lower pricing for your products, advertising and also their products?

-Can negotiate a little

21) What was the company’s plan in five years?

-Market in IPO (Initial public offering)

Appendix 2: Minutes of Group Meetings

English 2 Final Project Meeting

Date: 30 December 2015

Time: 3.30 pm – 4.15 pm

Venue: Joseph Soh’s house

Attendence: Joseph Soh (Leader) Loh Wen Jun (Co-leader)

Tan Jit Kim

Teh Wei Hong

Thomas Ting

Carol Tang Christina Chua

No Progress Mission Person in Duties

1 Business selection

Within Klang Valley:-Nitto Optotronics

Outside Klang Valley:-Optotronics Semiconductor

Contact the businesses by making phone calls to the owner of both companies to make an appointment for interview. Interviewing both businesses had been accepted

Joseph

2 Our journey and dividing task

Before and during the trip to IOI Boulevard, Puchong and Kamunting, Perak. Each of us was given a task while we were interviewing

Interview questionnaire preparations

Video Recorder

Interviewer

Information collector

Driver

Christina Chua

Joseph

Wen Jun

Jit Kim

3 Tasks for report had been collected

Minutes of Meeting

Content for report writing

Information about the businesses

Wen Jun

4 Checking and finalization of the report

Grammar and sentences

Content

Information placement and arrangement

Thomas Ting

Jit Kim

5 Others:

After we had done our report, we had to prepare slides for our presentation

We had to burn the slides, report and video in a CD and design the CD cover

Artistic cover

Slides Designer

Information for slides

CD cover

Charles Teh

Christina Chua

Carol Tang