Porter’s Five Forces Analysis & Porter's Value

Chain For Kabsah Kerepek

Introduction• Kabsah Kerepek is a wholly owned Bumiputra company,

which is based on the creation and production of chips IKS (Industri Kecil dan Sederhana). Kabsah also distributes its products to dealers and sell direct to customers.

• Initially, the project was carried out on a small scale . All the production process are made in the home until a small piece of contribution received from the government to develop this enterprise more broadly. A production area developed in a land area of 0.5hektar . Snack products produced are various types of chips, among them banana, yam and others.

Porter’s Five Forces AnalysisThreat of substitute

products and services

Threat of entry of new

competitors

Intensity of competitive

rivalry

Bargaining power of buyers

Bargaining power of suppliers

Threat of substitute products and services

• The threat of new entrants to the industry to compete with Kabsah kerepek is low, because the market is highly saturated and substantial amount of financial resources associated with location and properties are required in order to enter into the industry

Intensity of competitive rivalry

• Rivalry Kabsah Kerepek among existing competitors is medium high within the industry

• There is a lot of junk food produce by high manufacturer such as biscuit, chocolate, sweet,

• There is competition from other producers chips close to the production site

Threat of entry of new competitors

• Accretion of small producers in the vicinity of various chips

Bargaining power of buyers

• Kabsah Kerepek customers possess large amount of bargaining power because there is no and minimal switching cost for customers, and there is an abundance of offers available for them.

Bargaining power of suppliers

• Only a small number of farmers planting raw material for Kabsah Kerepek like banana, yams , sweet potatoes, cassava and other

• There is competition from other chips manufacturers for buying raw materials

• More farmers entering highly profitable �industry

Porter's Value Chain

Inbound Logistics Operation Outbound

LogisticsMarketing &

sale Service

Infrastructure• Storage and packaging area, frying area, etc

Human Resource Management• small loans to employees

Technology Development• Frying and cutting raw technology to increase efficiency

Procurement• Van for deliver product

Inbound Logistics

• Strategic relationships with supplier always supply the raw, and to make sure the supplier can deliver raw time

• Strategic relationship with reseller to make sure all the product can sell in theirs shop.

Operation

• Get the some certification for easy market in Singapore

• Deliver product to reseller on time

Outbound Logistics

• Customer pick-up from Kabsah Kerepek factory

• Transport planning to deliver Kabsah Kerepek to customer or reseller

Marketing & Sale

• Reliance on word of mouth marketing• Put some sticker on the packaging with

contact number and details, so buyer can contact them to buy in large amount.

Service

• Wholesale with low price• Delivery to customer around Johor Bharu,

Batupahat and Ayer Hitam

Reference

• http://research-methodology.net/starbucks-porters-five-forces-analysis/

• http://research-methodology.net/ikea-porters-five-forces-analysis/

• http://www.mindtools.com/pages/article/newTMC_08.htm