Name of Module: ENGLISH 2 (ELG30605)

Report Title : A Tale Of Two Businesses – A Comparative Analysis Of 2 Businesses Of Similar Industry In Different Geographical Location

Group Members :Amanda Chiong (0320328)Bridget Hsu (0320218)Chau Xet Nee (0320222)Foo Zhi Fung (0320226)Le Jia Nian (0319957)Marco Leong (0320026)Ngo Jia Haur (0320144)Wong De-Vin (0319814)

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Table of Content

Content Page

Cover Page 1

Table Content 2

History of Dried Meat3

Key Summary 4

Brief Bio Of Businesses 5-8

Comparative Analysis Of Business Competitive Traits 9-15

Recommendation 15-16

Appendices 17-29

References 30

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History of Dried Meat

Dried meat is also known as Bakkwa or Rougan in mandarin are sweetened barbecued dried meat slices that is similar to jerkeys. This product and the way of cooking it is originated from mainland China in a province named Fujian and it is considered as a Hokkien delicacy.This type of dried meat is actually preserved and prepared with a special technique originated from China. Although this product has been on the market for centuries, the method for production have remained the same until today. The Bakkwa is often made with beef, pork or chicken, which are prepared with spices, sugar, salt and soy sauce and then dried on racks at around 50 to 60 degree Celsius.

Today, there are slight changes to the product like softer texture, lighter colour and also less sugar. The bakkwa products that are sold in the market nowadays have higher water content that cause it to have softer texture and less sugar are used in them as well due to the health concerned of the society these days. Even though there are changes made throughout the years, they still do have similar shelf life as the ones before. The meat nowadays has also been modified and most commonly served in square-shaped slices in the form of flat thin sheets.

Bakkwa is extremely famous in South East Asia especially in Singapore and Malaysia where most eaten during Chinese New Year. When the Chinese immigrant brought this delicacy over to South East Asia, the way of preparing and cooking it has slightly changed. The most notable changed would the the preparation of Bakkwa. The meat was once still air-dried and now they grill them over charcoal instead. This also gives a smokier flavour to the meat. The Singaporeans and Malaysian versions of Bakkwa are also slightly different than the ones in mainland China due to the variations adapted to suit the locals such as Satay Flavoured Bakkwa.

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Key Summary

This assignment aims to conduct a comparative analysis between two

businesses of similar industry but the different geographical locations,

where are Tuck Kee Dried Meat & Meat Floss in Pulau Penang and the

another one is Oloiya Dried Meat in Klang Valley. For this assignment,

we had chosen two Dried Meat shops in food industry to carry out face-

to-face interview to obtain the businesses’ information and compare the

businesses’ competitive traits such as number of competitors, main

products or services sold, market share of the businesses, nature of

markets and others. Dried Meat is a type of meals snack that is popular

among people with different ages mostly in Chinese community. After

analysis all the information obtained, we concluded that Oloiya Dried

Meat had a higher popularity as it boasts many outlets nationwide in

Malaysia but Tuck Kee Dried Meat & Meat Floss not so popular in the

market. Both of them shares a common similarities which they provide

export services internationally.

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Brief Bio of the Businesses

Tuck Kee Dried Meat

1. The dried meat business was interviewed in Penang - ‘Tuck Kee Dried Meat’. This business was founded in 1980an and the name of the founder is Chong Man Tuck at the age of 27. ‘Tuck Kee Dried Meat’ is named due to the founder’s name is related and also a remembering on his effort on the dried meat business.

2. The current location is strategically located in the famous tourist spot in Penang Road, Georgetown. There is a well-known chendol stall named Teowchew Chendul. With the corporation of both of their famous business, Penang Road had been a must for tourist and local to visit if they have their foot in Penang.

3. Before the first outlet debuted, the founder is just pushing a cart selling dried meat in every place in Georgetown. Later on, the Mr. Chong gained his first capital to buy a shop and roots in Penang Road to run his business together with 10 numbers of employees.

4. For sure, the main product is dried meat but Mr. Chong has also doing services like exporting his dried meat oversea and retail & wholesale. Besides, Mr Chong is also selling bird nest and tea leaves as his side income.

5. During the 15 minutes interview, we saw there are 3 customers came into the shop to buy dried meat. Mr Chong run his business at about 12 hours a day. With our estimation, there are about 150 customers visited him in a day.

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6. It was founded because in the beginning after he married his wife, he was a fruit man selling fruit on a push cart  soon he realize that not much profit he can make to feed the family from selling fruit. He soon got his motive and discover how to make dried meat because dried meat are popular among the Chinese community in all ages and start selling a little amount of dried meat on a push cart. Through this dried meat business, he makes a lot of profit and decided to open a shop lot. He passes his recipe to his son and his daughter. He is no longer operating the business as his children hold all his business right now.

7. In recent time, the business has used their revenue to improve his product improving the taste of the meat and make it better packaging. Besides, they are using their revenue to invent new taste of the dried meat using different type of meat. The business revenue gain thought their development is current RM50, 000 per month where they start business with capital around RM100 in the earlier year. 

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Brief Bio of the BusinessOloiya

1. In 1970an, the founder – Khue Chow Kong (grandfather of Raymond Khue) ventured into making orange juice. He had a Taiwanese friend who willing to exchange his recipe of making dried meat with him who always visit him when he reached Malaysia. When he met Mr. Khue, he would shout at him and said ‘Oloiya’ which is a Hakka language which mean ‘Here I Come’. Hence, a huge business is start up by using the name – ‘Oloiya’

2. The original Chinatown centred on Petaling Street. The street was popular as it was higher than the rest of the town and was therefore less prone to floods, and the wealthier population were inclined to build their shop and houses here. Due to all of the reason, Mr Khue took this opportunity and start his business selling dried meat close to the Petaling Street. The men were mainly Cantonese and Hakkas from China who had come to the city because of the tin trade. Thus, this would made Mr Khue dried meat business enlarged as people around would buy dried meat before they sail back to their country. Besides, the worker that working as coolies in the mines will also bought dried meat as snacks.

3. In 1975, there were only 1 outlet which was located in Petaling Street and still the founder was operating it. Until 2010, there were 36 outlet all over Malaysia. Raymond Khue very honestly said that the number of roadside stalls has decreased while the number of outlets in malls and shoplots continue to grow. Raymond Khue also said that there were approximately 100 employees all over the company include factories, offices, agent and salesman. Mr Khue is now passed away, his grandson now is inheriting his huge business.

4. They are variety of product been sold in every branches and franchises of ‘Oloiya’ such as savoury minced chicken dried meat,

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gold coin ham & chicken dried meat, chicken and pork floss, minced pork dried meat, lovely heart dried meat, bacon slice, chili pork dried meat and hakka-style beef dried meat and duck dried meat is also available. Raymond told us that the bestselling product is the traditional dried meat – savoury minced chicken dried meat. Those products usually for the purpose of gift and as a hamper for others. Dried meat also as a snacks for foreign.

5. As the interview held in the office, we could not estimate the real number of customers but we also asked this question to Raymond, he said there are approximately 500 customers visited to the shop and there are mosty local to visit them as only local who know the dried meat brand – ‘Oloiya’.

6. In 1970, the couple opened their first stall in Chinatown. In those days, pork was used to make dried meat and the couple soon realised that the sliced dried meat was not suitable for the elderly and young as it was rather difficult to chew. Mr Khue started the first of many innovations in the dried meat industry. He created minced chicken dried meat and went on to introduce minced pork and duck delicacies. This is not meant that it was more palatable for the young and elderly, it also gave their customers more variety on buying dried meat.

7. Their recent development have plans in the pipeline to expend the business globally. In addition to focussing on countries that have a significant non-halal countries such as Thailand, China, Vietnam, Singapore and so on. But the first step to go into global business is to export and open branch in Thailand. Besides, they also plan to list their company in Bursa Malaysia but there are many obstacles blocking them to the way through.

Comparative Analysis of Business Competitive Traits

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1. In Penang, dried meat shop there are at least 8 competitors specifically in Georgetown ;There is an large number of dried meat shop in Klang valley counting more than 50 firm . Specifically in Petaling Street, there are at least 10 firms.

2. In Penang , Teic Kee share is small and its top competitor in market would beLoong Kee , Oloiya , Bak Kueh Eng ; in Klang Valley Oloiya share is big in the market , its top competitors would be Bee Cheng Hiang, Wing Heong, Loong Kee .

3. TUCK KEE

a) Loong Kee Dried Meatfounded in 1976 and has been a name in this industry for almost 40 years. Loong Kee is famous for festive favorites such as dried meat , meat floss, meat fluff, mooncakes as well as feel-good all-year- round treats such as cookies and pastries. There are currently 21 Loong Kee branches nationwide and 3 of them located in Penang, one in Ayer Itam, one in Butterworth and one in Gurney Plaza. Loong Kee is also an active participant of food fairs, food exhibitions and festive events. The presence of Loong Kee is definitely an influence to Tuck Kee as they many varieties of not only dried meat but also pastries.

b) Oloiya is one of the dominant company in this industry since the early 70s and has never fail to impress their customers in the sense of not only the quality of their

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product but also the price and the service they have provided. Although there are only 2 outlets in Penang, which is one in Penang Island and Butterworth, they are never any worse than their competitors due to their popularity and quality they have provided to their customers. Their main product would be chicken dried meat and that is also their best seller because they are the first shop in Malaysia to actually sell chicken dried meat. They also have a huge variety of dried meat and pastries that makes them one of the best dried meat store in Malaysia. Oloiya has been on the top list in this field for decades and it is a huge competitor for Tuck Kee.

c) Bak Kueh Eng is not a chain nor a franchise like Loong Kee or Oloiya. It is a small shop just like Tuck Kee and they grill their dried meat not like the big chain’s where they have factory but in their own shop. The location of this shop is in Lebuh Cecil, Georgetown. The product they are selling are more or less the same like Tuck Kee except they also sell Roasted Pork which give them a huge boost to their business. Although it is just a small business, it is also a competitor to Tuck Kee due to the loyal customers they have and also the quality they give to them.

OLOIYA

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a) Bee Cheng Hiang is a well known or arguably the biggest dried meat chain originated from Singapore and it has many branches all around Asia including Korea , China , Malaysia , Macau , Thailand ,Philippines , Indonesia , Taiwan , Hong Kong and of course Singapore. This dried meat store start since the 1930’s and has been tremendously famous ever since. Bee Cheng Hiang has existed for almost 90 years and not only they are maintaining what they already provide but also expand and grow their business in very well.The main products that are keeping this business growing is their dried meat, meat floss , chinese sausages , mooncakes and some snack like grilled cuttlefish. It currently has more than 200 stores in the world and still growing. A business like Bee Cheng Hiang is truly a huge competitor to Oloiya as they are recognized worldwide. Oloiya’s director even mentioned that Bee Cheng Hiang is a company that he truly admire by their way of organising their business and how they grow it. Even their price is expensive but there are also customers that are willing to pay the price for what they’re getting in Bee Cheng Hiang.

b) Wing Heong is a dry meat chain that has 6 stores all located in Klang Valley. Wing Heong is founded in the early 1970’s and has expanded to 6 stores from then. The main products they are selling is chicken , beef and pork dried meat. Although it is not a very big chain, it is also a competitor to Oloiya due to the loyal customers Wing Heong has already attracted throughout the years.

c) Loong Kee is one of the main competitors to Oloiya due to the size of their business they have expanded throughout the years. It has been founded for almost 40 years and has already been a competitor to Oloiya since Oloiya is founded. Although they have been around for awhile and selling almost the same product for many many years but they have their own unique way of attracting customers. Even though they are strong competitors Oloiya’s director did mention that they compete in

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a fair manner and they have never sabotage each other in anyway.

4. TUCK KEE- Mr. Chong claim that he lower the price of his dried meat to

compete with his competitors. - Mr. Chong encourages his employees to spent time with

their customer to receive feedback for them to reflect and make their product better. Besides getting face to face feedback, he also get feedback from social media example like Facebook.

- Mr. Chong will have annual meeting with his employee to create new dried meat flavor or other related product and promote their new product on social media.

OLOIYA- New product are produce every year or on special event like

Mother’s Day, Chinese New Year and etc. - Oloiya is the first dried meat shop that use chicken to make

dried meat this make Oloiya very special. - Marketing department of Oloiya also promote themselves in

social page like Groupon, Facebook and etc.

5. To enter the dried meat market according to both of the interviewee back in the 80s is easy as long as you have money you can start a dried meat shop but these day you need to have large amount of capital.One of the obstacle being point out from the Executive Director form Oloiya is strict qualification from the government for new businesses to enter the market. Besides strict qualification, nowadays is not easy to make bank loan as bank required high requirement to give bank loan.

6. Nature of the market

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- Tuck Kee Dried Meat & Meat Floss is an oligopoly market, which is dominated by a few sellers. Tuck Kee is protected by strong barriers to entry as it resembles a significant role in the market and it has a wide source of customers that mostly emphasis in the original customers. Tuck Kee also has high popularity among the local residents and is also famous for the foreigner tourists. Tuck Kee also provided high quality standardized products. It is considered as price taker because it does not affect the market price if it increases the price of its products, which in turn will lose its customers due to the increasing in price.

- In the other hand, Oloiya is an oligopoly market, which is dominated by a few strong competitors in the range of 2 to 10 large firms. Oloiya has the biggest share of the market that is more that a half with an approximate percentage to 55% of the market shares. It is protected by strong barriers as it required a huge capital for the new businesses to enter the market and it is economy stable in the market and has a high position in the market. It is considered as price maker as it has launched a lot of special self-invented products that can only be found in Oloiya such as gold coin ham and chicken dried meat, lovely heart dried meat, bacon slice (blooming beauty ham), Hakka style duck dried meat, old style burger and other products. Oloiya often do advertising for their new brand products, launching new products according to the season and also held special events constantly.

Competitive Traits Tuck Kee Dried Meat & Meat Floss (Pulau Penang-Based)

Oloiya (Klang Valley-Based)

1. Number of Competitors In range 5 to 10 competitors In range 10 to 50 competitors

2. Barrier to Entry Protected by strong barriers to entry.Because this is an old historical shop. Thus, they have many original customers and won high popularity in the local and tourisms.

Protected by strong barriers to entry.Because it has a very stable economy status and is well equipped with advanced technology for the efficiency production.

3. Differentiated or Standardized Products

Standardized products. Differentiated products.- Gold coin ham & chicken dried

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meat- Lovely heart dried meat- Bacon slice (Blooming beauty ham)- Hakka style duck dried meat- Old style burger

4. Pricing Power Price Taker- Because the price that he sets does not bring any affect to the market price instead he will lose plenty of customers as the demand will decrease when the price increase. (Refer to the demand theory)

Price Maker- Because it has many types of special products that is self-invented. Thus, they can set the price by themselves because the customers only can find these specific products at their shop.

5. Other Characteristics Many close products substitutes, inconstant advertising, rarely having promotions for the products and rarely invented special season products.

No close products substitutes, mutual dependence, constantly advertisements, holding promotions for special events constantly, often invented special season products and launching new products annually.

6. Verdict Oligopoly Oligopoly

7. Summary table

8. Based on our analysis, Oloiya would be more commercially successful business. One reason is that Oloiya is a very well-known Brand in all over Malaysia. Oloiya have special product that cam attract people , example heart shape dried meat , and chicken flavor dried meat ; Tuck Kee only have all standardized product .

Recommendation Tuck Kee Dried Meat

Since this ‘Tuck Kee Dried Meat’ shop is only well known in Penang. We had suggested that the shop should make more advertising, creating an official website and promotional

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campaigns to promote their products all over the Malaysia especially the place which is significant with Chinese as dried meat is origin from Chinese culture. If ‘Tuck Kee Dried Meat’ makes a strong advertising, people will feels it’s a lost if they do not buy the dried meat when they reach Penang,

Due to there are only less product been sold in the shop, in our opinion, we would recommend Mr. Chong to invent more products. This is because customers will feel bored if people keep on buying the same product. If a new product launched, people will feels fresh and this can enhance the revenue of ‘Tuck Kee Dried Meat’. So, the owner can invent new products that never been in the market to attract costumer.

Everyone knows Penang has a serious traffic jam just like Kuala Lumpur. If Mr Chong can create also a delivery service and online shopping just like the huge companies such as IKEA, Tesco and so on. These companies will always make their customers at first and let customers buy their product in the fastest and easiest way. Hence, if Mr. Chong can also apply these services into his business, it will comes a large of profit to ‘Tuck Kee Dried Meat’ too.

Oloiya Dried Meat Oloiya is been a very success dried Meat Company in Malaysia but

out of Malaysia, no one recognize Oloiya. It is an opportunity for Oloiya for them to step themselves into Asia Pacific such as Thailand, Vietnam, China and Singapore as those countries are non-halal countries and also concentrated by Chinese. But at first, Oloiya must have branches and makes advertising in those countries for people to know more about what is dried meat as those countries know nothing about dried meat.

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Based on our knowledge after interviewing Oloiya, they have not enough of capital for them to enlarge their companies. It is an obstacle for them to step themselves into Asia Pacific. In my opinion, I suggest them to list their company on Bursa Malaysia to gain capital from others but this decision had to gain approval shareholders. Maybe Oloiya is a family business, they will not willing to sell their shares to public but if the mastermind can convince the shareholders, I think those shareholders will approve to carry their business into whole Asia Pacific.

Inventing new product without pork is a success step into the market due to in Malaysia majority of it are Malay but unfortunately, those product never get verified by halal. If Oloiya want to carry themselves into Asia Pacific, at first, they have to get verified by halal as most of the countries are Islamic countries such as Indonesia, Brunei and Philippine. If Oloiya’s dried meat able to get verified by halal, they step into those countries.

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Video Link

Part 1https://www.youtube.com/watch?v=SS6zDDUoKV0Brief Bio of BusinessesPart 2https://www.youtube.com/watch?v=msI56HzK8AQComparative of BusinessesPart 3https://www.youtube.com/watch?v=m8bie1BkGnIRecommendation of Businesses

REFERENCES

Oloiya Dried Meat. (n.d.). Retrieved May 5, 2015, from http://www.oloiya.com/

Tuck Kee Dried Meat & Meat Floss (德记肉干) @ Pulau Tikus. (2012, March 25). Retrieved May 8, 2015, from http://www.jeremee89.com/2012/03/tuck-kee-dried-meat-meat-floss-德 记 肉干 -pulau-tikus/

Oloiya Dried Meat. (n.d.). OLOIYA.

Perraton, G. (2006). Food & technology (2nd ed.). Milton, Qld.: John Wiley & Sons.

Brozen, Y. (1975). The competitive economy: Selected readings. Morristown, N.J.: General Learning Press.

Goldsmith, H. (1989). Import/export: A guide to growth, profits, and market share. Englewood Cliffs, N.J.: Prentice Hall.

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