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 3

2 Descriptions of the history of the trade 4

3 Descriptions of the businesses 5-13

4 Comparative analysis of competitive traits 14-20

5 Recommendation 21-22

6 Appendices 23-30

7 Bibliography 31

8 References 32

Key Summary:

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Based on our research, LED lightings are quite advantageous and safe 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 which is essential to all businesses in order to achieve sustainable and profitable growth. They managed to find a more unique way by using LED lightings to support energy efficiency and make lesser carbon emission to environment as LED generates lesser heat and more lights compare to normal lightings.

(102 Words)

Description of history of trade:

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Light is the element and the essence of life. As human being, we practically

uses light almost all the time, it is ubiquitous to us. Light helps to improve our vision especially during the dark, it serves as an aid to help us see better in life.

As technology is getting better and more advance, LED lights are being introduced to the market due to its energy conserving feature as compared to other normal lightings which lacks in the efficiency. For example, making lights we need plastic and resources underneath the earth such as petroleum in order to make 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 time, it serves as a safety measure 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 efficient 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 and environment.

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 light but could not last long or the other way round. This type of LED will use more energy as brighter bulbs use more power supply compared 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, greener to environment and bright enough.

Description of business:

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The research of this assignment is based on the analysis of two-auto semiconductor business. Both of the companies are located about 350 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 Optotronics:

Location of 2nd company, Optotronic Semiconductor:

Company 1: Nitto Optotronics

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

Number of branches: 2

Number of estimated employees: 500

Main service: General lighting

Estimate current number of customers: 25

Business started: Since 2010

Founders: Group of Consortium

Motive for starting the business: Going green and eco-friendly to a greener 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:

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There are varieties of LED lightings, which is used for different purposes. Each type of LED lightings serves different functions.

1.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

2.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

3.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

4.NITTO LED ROUND DOWNLIGHT

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

5.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%

6.NITTO CHROMO-SPOT LIGHT

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

Nitto Optotronics:

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This is the main branch of Nitto’s company, where it is located at IOI Boulevard, Puchong. It is an office and the place where LED lights are displayed.

The LED lighting display:

The LED lights are displayed so that customers can have a look and know more detail about the LED lightings that customers want to purchase. LED light can be switched on to compare the brightness with normal lightings.

Company 2: Optotronics Semiconductor

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

Number of branches: 3

Number of estimated employees: 650

Main service: Automotive semiconductor

Estimate current number of customers: 2

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 cost

Type of LED products from Optotronics Semiconductor:

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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.

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 of cars. The LED has a longer lifespan so that maintenance is less, brighter light produce and the time to produce the light is faster compare to normal lighting. These ensures the safety of the other driver especially driving during the night.

Philips Supply Chain Security:

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

Implementation products:

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

Facilities and capabilities:

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These are the machine in the factory of the Optotronic 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:

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Business 1: Nitto Optotronics

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

Top 3 competitors:

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

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 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

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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, longer lifespan and varieties of grades than other producer. Besides that, Nitto Optotronics also manufactured different variety of LED lightings such as down lights, street light, downlights 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, Nitto Optotronics also produced lights that are energy efficiency, longer lifespan and greener towards environment compared to other producer. Energy efficiency is also one of the aims which Nitto Optotronics want to achieve at a higher level. By using energy in the smart way, the LED lightings will release 20% heat and 80% even after switching it on for a long time comparing to normal lightings they will be the other way around.

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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 requirements are very high, there were no competitors for that are qualifies for this business, which is creating semiconductor for automotive vehicles. It can be considered that Optotronics Semiconductor is one of the company in the list of automotive semiconductor companies in Malaysia that involve in this industry.

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Comparison between Nitto Optotronics and Optotronics Semiconductor

Similarities

TYPE OF LIGHTINGS LED TARGET/ACHIEVEMENT Create LED lighting that have longer lifespan, brighter

and energy efficiencyINDUSTRY Manufacture from factory

FOUNDER Group of Consortium

STRATEGIES Tolerate the price and maintaining the quality

Differences and Contrast

Nitto Optotronics Optotronics SemiconductorCOMPETITORS 3 None

ESTABLISHED YEAR

5 16

FIRST PLACE COMPANY

ORIGIN

Yes No

NUMBER OF BRANCHES

2 3

NUMBER OF ESTIMATED EMPLOYEES

500 650

NUMBER OF CLIENTS

25 2

REVENUE OF COMPANY

20 to 40 millions 60 to 70 millions

MOTIVE Going green and eco-friendly to save environment

Being more safety, clean and quality

HOW OFTEN RELEASE NEW

PRODUCT

Every quarter of the year No new product

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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 require LED lights to work. Due to the modern technology, LED lights have 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 greener to 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 services.

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

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Conclusion of Analysis

Based on what we had research between the 2 businesses, both company that sell LED lights products are very competitive. Although one of the company sells general LED lightings and the other company sells automotive LED lightings. Both the company resources are set up with the same quality of LED lighting products. Since Optotronic semiconductor industry had no competitive in Malaysia, it had been the only business that involve in selling automotive semiconductor with high grades LED products it had been a high profit and is high demand to the market. Automotive vehicle could install the brake light and signal light with the use of Optotronic semiconductor of LED products for a longer lifespan. It is also safer for other driver to notice that the brake light and signal light of the vehicle especially during the night as it is brighter. Although Nitto Optotronics had competitors which sell their own lighting design using the LED products but Nitto Optotronic have variety of lightings and grades. Their products have longer lifespan and more energy efficiency. These businesses had been very competitive among each other and they would continuously compete to achieve a higher profit and maintain the quality of their products.

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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 of internet communication for selling products and marketing purpose 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 and making online selling.

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

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 so that people would pass through it and have a look.

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Business 2: Optotronics Semiconductor

CURRENT AREA OF IMPROVEMENT

RECOMMANDATION

Do not make market much and did not have much communication through internet

Introduce more automotive semiconductor products to the market so that the products will be more recognized in the market and promote the LED products through the internet to communicate with others. Effective communication is also important for the company 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.

Optotronic Semiconductor only have two customers 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 brighter.

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Appendices

Appendix 1: Survey questionnaires and answers

Date: 2 January 2016

Time: 12.30 pm

Location: Nitto Optotronics, IOI Boulevard, Puchong

Interviewed person: Mr. Loh Hoi San

Job position: Senior Sales Manager

Office phone number: +6013 – 80754377

INTRODUCTION

1) May I know your name?

-Mr.Loh

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

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6) How did this company first originated?

-By 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, Australia

14) What is the motives that drive your company?

-Going green and eco friendly to save the environment

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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 LED lightings

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

-Yes and also maintaining the quality

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

-Trying to explore overseas market

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Date: 6 January 2016

Time: 3.30 pm

Location: Optotronics Semiconductor, Taiping, Perak

Interviewed person: Mr.Simon Soh

Job Position: Co-founder

Office phone number: +6012 - 80754377

INTRODUCTION

1) May I know your name?

-Mr. 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

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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 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 robots and reduce the number of labours

14) What is the motives that drive your company?

-Being more safety, clean and quality

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

-We did not market much and uses Internet for communication

16) How often does this company release new product

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

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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 a few company because the safety standard requirement is very high

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

-AL automotive lightings with all kinds of lightings

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

-Can be negotiated

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

-Market in IPO (Initial public offering)

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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

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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

Joseph

3 Tasks for report had been collected

Minutes of Meeting

Content for report writing

Information about the businesses

Wen Jun

Joseph

Jit Kim

4 Checking and finalization of the report

Grammar and sentences

Content

Information placement and arrangement

Thomas Ting

Jit Kim

Christina

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

Wei Hong

Christina

Carol Tang

Wei Hong

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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

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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

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