Discuss the globalisation strategy adopted by toyogo

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Reference no: EM133294874

Business-to-Business Marketing - Strategic Planning for Global Business Markets

Case Study

When Singapore and Malaysia were growing rapidly more than 30 years ago, there was a growing demand for plastic products by consumers. However, many of the brands offered in the market were unsatisfactory due to poor and inconsistent quality of their products. Mr Chua Kee Tee, the founder of TOYOGO saw an opportunity to enter the two markets by producing a local brand of plastic products that rivalled the quality of Japanese products. As a result, TOYOGO - a name which sounds like "have everything" in Chinese - was born. The company wanted to produce good quality products at value for money prices.

Today, TOYOGO is one of the market leaders in plastic goods for household as well as industrial use. The company has production and logistics plants in the Senai Industrial Estate in Malaysia's Johor Bahru. Products, for household and industrial use, are widely distributed in Singapore and in more than 30 countries worldwide. Mr Chua says, "We have more than 3,000 products in our catalogue, and we are one of the leading plastic manufacturers in the world which produces
the most plastic products varieties."

TOYOGO's range of products includes plastic containers used to store anything from food to utensils to clothes. Other products also include handcarts, ladders, shelves, stools, garbage bins, dust pans, pails, ice buckets and laundry baskets. It also sells industrial products like pallets, crates and baskets, and tool crates

"Our products are easy-to-use, durable, high in quality and economical in price," Mr Chua says. They are all specially designed and made to cater to the needs of consumers and business customers.

In the past, the company lacked specialised equipment and technology, which led to high manpower and operational costs. Many of the production processes had to be done manually, resulting in significant labour cost. Productivity was also low. Today, smaller products like teaspoons to bigger items like pallets and 660-litre containers are all made in an automated production line. TOYOGO's Malaysian factory owns one of the bigger 4,000-ton injection machines in Asia. Productivity is also much higher now. "Over time we have overcome our initial
challenges and minimised their impact on cost and quality," Mr Chua says. "We can continue to produce good quality products, and price our products competitively for consumers as well as business customers."

Another challenge the company faced was in its initial attempts to market its plastic containers as eco-friendly, reusable products. "Few people understood the idea of conservation then, when everybody was throwing away used paper cardboard containers," he says. TOYOGO did not give up pushing its ideas.

Today, plastic containers are one of TOYOGO's top selling products. "From design, casting, production, marketing, to direct sales, each process is full of challenges," Mr Chua says. TOYOGO's development team checks rigorously for quality in its products, and also observes market trends so it can manufacture items that are economical, practical, trendy, and modern, he adds.

Looking ahead, TOYOGO will continue creating products that are useful, modern, durable and affordable to its customers. The company will continue to spend on research and development, and improve its productivity and innovation capabilities. "We hope to build a TOYOGO Hub to cater to research and development, production, selling and distribution," he says. "No one in this industry has done this before." Mr Chua hopes that the TOYOGO brand which is locally born and nurtured, will continue on for generations and generations.

Case Study Questions

Question 1. Based on your understanding of the case, discuss the type of competitive strategy that TOYOGO has adopted for its plastic products.

Question 2. Discuss TOYOGO's competitive position in the market for plastic products and propose possible strategic options the company can adopt in order to retain its competitive position.

Question 3. Discuss the globalisation strategy adopted by TOYOGO.

Reference no: EM133294874

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