99 Speedmart: Growing SME Providing Consumers with Products and Services - Essay Sample

Introduction

99 Speedmart enterprise is one of the growing small-medium enterprises which deals with provision groceries product and services to the customers in Malaysia. Identification and considerations of this SME come in due to its efficiency in operation and meeting consumers' demands and desires(Arshad, 2016). For instance, the business is the primary provider of the consumer's product to several consumers in Malaysia. Growth and development of the 99 Speedmart attributed to the increased desires to retail the fruits and vegetables in the agricultural sector of Malaysia.

99 Speedmart History

The establishment of the 99 Speedmart business entered into operation in the year 1987. It first came into the market with a traditional name known as "mom and pop" sundry mart called Pasar Raya Hiap Hoe by Mr Lee Thiam Wah in Tepi Sungai Klang. The establishment of 99 Speedmart underwent a series of trials and journey to success (Tee, et al., 2018). He started the business so low and which he finally archived his dreams only through proper interaction with the suppliers and customers. Mr Lee First introduced the company into operation and first launched in during the year 1987. Mr Lee struggled with the business during the early years of the service after five years; he established the first 99 Speedmart in the region of Klang Utama. Several other branches were opened from the years 1992-1998. Its global recognition occurred in 2006 when it got a reward for the first Consumer Choice Award. This marked one of their most significant achievement, which attracted most of the customers.

The business later launched its 100th outlet during the year 2008, which has improved its operation over time. 99 speedmart has high dependability which is, the measure of how dependable the company is when it comes to timely delivery of products to its customers, under planned prices and costs.

Evolution Of The 99 Speedmart Strategy, How It Changed From The Beginning

The evolution of the strategies significantly improved the performance of 99 Speedmart business. For instance, the use of strategy placed company to a better position to take control of the market, policies evolved due to a series of events. The strategies include the following.

The basic low-cost strategy. The strategy evolved due to the desire to minimize the operation cost of the business. The business adopted this strategy during its early years of operation after a series of struggles with the cost challenges. This strategy played a crucial role in enhancing the profitability of the 99 Speedmart at the later stage.

The bare minimum prices Strategy evolved as a result of the desire to promote the market across the region. 99 Speedmart adopted the use of this strategy to strategically penetrate the Malaysian market by minimizing the prices of commodities hence making the goods more accessible and affordable to the clients and customers across the region. This strategy promoted the market environment significantly (Malaysia, 2003). Formation of this strategy also attributed to reorganization and negotiation of buyers and sellers based on the prices; this impacted the retail landscape of the small media business such as 99 Speedmart.

The subsequent strategy was; use of competitive prices; this evolved as a result of the intensification of the competition in the market. The origin of competitions induced the development and emergence of a strategy to keep 99 Speedmart up against its competitors. This, therefore, motivated the conception of this strategy to encounter its competitors. The initiation of this strategy meant the enhancement of the market power for the business to continue performing. This strategy's inception has played an integral role in the current operation and viability of the 99 Speed mart.

Finally, the psychological pricing strategy evolution emerged due to the desire to protect customers' loyalty through the pricing of the company products. The strategy originated with a desire to enhance the marketing of the products as well as the incorporation of prices, which were less in the minds of customers. This strategy's origin meant the strengthening of the market structure.

Mission, Vision, And The Primary Goals Of The 99 Speedmart Enterprise.

Vision And Mission

Its vision is to keep up with the image as one of Malaysia's market leaders in the retail groceries sector, aiming to fulfil the customer's needs by providing a wide range of groceries with different aspects in goal-oriented mini markets by working together with the suppliers.

Its vision is to achieve the best economies that are fully supported by a vast range of network coverage and distribution and logistics systems to complete the outlets resulting to increased prosperity and reduced costs and also incorporation of time-saving element.

Goals Of 99 Speedmart.

• To develop a new application called e-grocery, which helps in capitalizing existing strong supply chain and strategically located stores nearer to customers.
• To build an interactive promotion via social platforms, for example, Facebook and Instagram.
• To enhance customer retention strategy, such as via application.
• To become the best distributing grocery enterprise in Malaysia within a short period.

Swot analysis:

Strength.

The 99 Speedmart enterprise has substantially achieved most of its goals. Therefore their strength has led to the contribution of their growth, branding and good reputation.

The 99 Speedmart has maintained its strength through a series of events which include;

Good branding which mostly attracts the customer since they can be able to identify a particular product hence buying the goods, thus enhancing profitability and operation in general

Products.

The 99 Speedmart enterprise focuses on providing high-quality products and in large quantities, usually comprised of daily use products to enable customers to meet their needs. Both of the 99 Speedmart provide a grocery ray, and it has more than 3,000 items, including cereals.

Place. The reason behind the 99 Speedmart success is its location. This makes it easy for customers to reach the nearest 99 Speedmart available they use fewer resources to reach the shop; hence this attracts more customers and therefore leading to success.

Less labour.

99 Speedmart has less labour; therefore, it requires little workforce hence leading to higher productivity, it's friendliness, less workforce, and small shop helps to decrease the overhead cost, which is an ongoing process for operating a business. These factors, therefore, attribute to the occurrence of profits within the industry.

Weakness.

Although 99 Speedmart is the most popular enterprise in a retail business, it also has weaknesses, just like any other retail business experiences. The listed below include the examples of the weakness such as insufficient staff which can lead to low management and mobilization of resources, which can lower productivity, hence its failure. Insufficient staff also result in delaying of services, thus rendering the process of SME slow in terms of service provision. Such actions profoundly impact on profitability.

Store Layout And Arrangements

The 99 Speedmart enterprise has inadequate arrangements for goods. Unlike other enterprises, thus making it difficult for customers to choose the kind of products they need easily hence giving them a hard time. The inadequate arrangements also affect the operational structure of the business.

Opportunities;

Diversification Of Products And Enlarging Premises

The 99 Speedmart enterprise can be in a position to open more of the premises and also expand them, thereby bringing more different types of products, and hence this can increase profitability. The company can also bring different or alternatives products in the market, for example, jewelers products hence making a lot of profits at the same time.

Partnership With Large Scale Mall

The 99 Speedmart can collaborate with known large scale mall so that they can be in a position to benefit from them for instance in terms of giving them space outlets hence these can enable them to cut the costs for renting spaces (Lamarco, & Seidel, 2019).. Therefore, this will help identify the correct place and position of the outlets, thus allowing them to face a healthy competition.

Global Expansion.

The company can also be able to open its branches in some other neighboring countries, for instance, Australia. This will enable it to partner with other retailers who are popular hence allow them to come out with a market strategy which will make it to enter and outperform in the market. Which will make them make a vast profit trough other countries

Threats:

Competitors:

Competitors are the major threats in the 99 Speedmart enterprise; therefore, to defeat other competitors, 99 Speedmart tend to reduce the price of some products. At the same time, other retailers are doing so.in order to curb the competition; the 99 Speedmart should come out with different strategies such as branding. It is whereby the company comes up with a sound branding system to attract customers, giving offers to customers like buy one get one free which motivates the consumers to purchase the goods (Mei, 2013). The provision of different goods and alternatives products and services can also help to curb competition.

New Entries

New entries affect the company, especially when there is a new growing market, and it has the power to make a high profit; this attracts more customers, increasing the number of markets Which will change position. New entrants for the fresh fruits and other grocery supply (Cai et al., 2013). Negatively impact on the productivity of the business.

Strategies The Business Should Adopt And Pursue.

The operation of the 99 Speedmart has seen a significant improvement over time. The business should, however, adopt sufficient strategies to survive in the more changing world and improve its operation. The continuity of the profitability, the industry should take the following approach, first of all, marketing strategies. Marketing plays a fundamental role in ensuring the continuous improvement of the business. 99 Speedmart should adopt a global range of marketing to market its products through a series of advertisement practices to earn a worldwide reputation.

Secondly, 99 Speedmart should adopt the use of social networking. Such will improve the awareness of the products; besides, the knowledge of social networks will also facilitate the current technological sales and purchases of its products on a global scale; as a result, improving the operation of the business, it will also increase the productivity of 99speedmart and the general production sector as well as trade-in Malaysia.

Conclusion

In conclusion, the operation of the business in the 21st century has shifted its lane from traditional ways of action to modern technological means of purchases and selling. The incorporation of the same to 99 Speedmart will improve the operation significantly. This will subsequently increase the economy of scale for 99 Speedmart globally.

References

Arshad, F. M. (2016). The New Supply Chains in Malaysia: Implications to the Fruits and Vegetable Producers. In Organized Retailing and Agri-Business. Springer, New Delhi. Retrieved from https://www.springer.com/gp/book/9788132224754

Cai, X., Chen, J., Xiao, Y., Xu, X., & Yu, G. (2013). Fresh-product supply chain management with logistics outsourcing. Omega, 752-765. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S0305048312001806

Department of Statistics Malaysia (2013). Retail trade. Putrajaya: department of statistics. Retrieved from https://www.dosm.gov.my/v1/images/stories/files/LatestReleases/mms/BI/MMS_July13BI.pdf

L...