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SWOT Analysis of Bonia Corporation Berhad Assignment

Bonia Corporation Berhad is a Malaysian fashion brand known for high quality leather goods. Some of its strengths include its strong brand recognition, skilled workforce, and high visibility through both online and physical stores. However, it also faces weaknesses such as high material costs, less diverse product offerings, and slower adaptation to fashion trends compared to competitors. Opportunities for growth include expanding its global market, increasing its product lines, and leveraging information technology for marketing. Threats include intense competition in the industry, economic downturns affecting consumer spending, and high employee turnover rates.

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5K views5 pages

SWOT Analysis of Bonia Corporation Berhad Assignment

Bonia Corporation Berhad is a Malaysian fashion brand known for high quality leather goods. Some of its strengths include its strong brand recognition, skilled workforce, and high visibility through both online and physical stores. However, it also faces weaknesses such as high material costs, less diverse product offerings, and slower adaptation to fashion trends compared to competitors. Opportunities for growth include expanding its global market, increasing its product lines, and leveraging information technology for marketing. Threats include intense competition in the industry, economic downturns affecting consumer spending, and high employee turnover rates.

Uploaded by

Joanne
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SWOT analysis of Bonia Corporation Berhad

Strengths
1. High quality of products
-Bonia is well-known with their high quality of leather goods that made with the high quality
materials. Most of their competitors are selling the products that made with artificial leather
goods but not real leather goods. Those leather goods are the unique selling points of BONIA
and help to gain the competitive advantage over their competitors.

2.Strong brand name


- Bonia owns the strong brand name in Malaysia and it is an international livery brand. Bonia
was founded in 1974 and it has been developed for 42 years. As compared to their competitor
like Charles & Keith and Aldo, Bonia has long history and has strong brand name in the
Malaysia fashion market.

3. Skilled workforce
- The employees of Bonia are well-trained, helpful and able to help the customers in fulfilling
their needs and wants. The employees have the knowledge in helping the customers to solve
their problems. Besides, the employees of Bonia has provide an excellent and a warm
customer service and this help to increase the customer satisfaction.

4. Partnership
- Bonia has partnered with some departments stores such as Parkson Grand, Isetan and Aeon
and sells its products inside the department stores. Besides, Bonia also cooperates with the
online retailer such as Zalora. This helps Bonia to market their products at different platforms
to reach more customers.

5. High Visibility
- Bonia has the high visibility of their products as it owns the both in online and offline store.
Customers can easily find the physical retail stores in the department stores or shopping
malls. Besides, customer also can choose to purchase Bonia’s products through their online
website.
Weaknesses
1. High Material Costs
- As we know that the material costs for Bonia’s products are high as compared to their
competitors like Charles & Keith and Aldo. This is because Bonia’s products are made with
their leather materials. This had caused the material costs of Bonia’s products are high.
However, the materials costs for Coach is much higher than Bonia as Coach’s products also
made with the high quality leather goods.

2. Less Choices of Products


- Bonia offers leather goods such as leather handbags, footwear and accessories for the both
women and men. Bonia also provides the non-leather goods such as clothing for men.
However, Bonia does not provide the clothing products for women.

3. Similar Products with Competitors


- The products that produced within fashion industry that has almost the same and
undifferentiated. For instance, Bonia has sells the handbags, accessories and footwear in their
store. However, the competitors of Bonia which are Charles & Keith, Coach and Aldo that
also had provides the similar products just like what Bonia provided. This had led to the low
switching cost for the consumers switch form one brand to the other brand.

4. Inactive social media presence


- Bonia had started to sell the products on its online store within these two years while the
most of the fashion brands started to sell the products earlier than Bonia. Besides, Bonia less
frequently updates its social media sites and have less online marketing strategies.

5. Slowly adapt to changes of the fashion trends


- Nowadays, the fashion trends had change very fast and the marketers have to be alerted to
the changes of trends and adapt to the changes quickly than other competitors. However,
Bonia is considered as a follower and adapt to the changes of the fashion trends and
sometimes is unable to catch up the trends. In comparison, its competitors such as Charles &
Keith, Coach and Aldo are able to catch up and adapt to the latest fashion trends faster than
Bonia. Bonia had always take a long time to release the new products as compared with its
competitors.
Opportunities
1. Market or Global expansion
- Bonia has expanded its branches to Malaysia, Singapore, Vietnam, Indonesia and other 12
countries. It mostly mainly focus on the Asia countries. There are many fashion brands have
expanded their businesses to more markets and their existing markets. Bonia can expand its
brands globally to more western countries as the markets size at there is big.

2. Product Expansion
- The products of Bonia are mostly focus on the fashion products such as bag accessories and
foot wear. For the clothing section, Bonia only provides the clothing for men but not women.
Bonia also can expand its product categories or choices to young peoples or even expand its
products to other field like cosmetic products.

3. Increase the middle-income group


- The middle-income group in Malaysia are those people who have a monthly salary for RM
5000 in urban area and RM3000 in rural area. The middle-income groups in Malaysia are
able to purchase Bonia’s handbag as one handbag is only cost twenty percent (middle income
groups at urban area) or thirty percent (middle income group at rural area) of their monthly
salary.

4. Growing in IT
- Used of information technology can help the brand or business to market their products or
services better and reach to more customers. Growing in IT enables the brand and business to
leverage the information technology in marketing their products more efficiently. Customers
can easily get what information they want or search for the products through the use of
information technology.

5.Innovation
- Innovation means new product with new features, existing products with new features or
new products with existing features. Bonia can modify their products into better products
with existing features. Bonia can modify their products into better products and deliver the
better value to the customers. This helps Bonia to attract new customers and retain the
existing customers.

Threats
1. Implementation of GST
- The implementation of GST in Malaysia has affected all the businesses across all the
industries. The implementation of GST has increase the cost of livings in Malaysia as the
people have to pay for the extra 6%goods and services tax. For example, customer only has to
pay for RM 1000 for a Bonia’s handbag before the implementation of GST. But the customer
has to pay for an extra RM60 which is RM1060 for a Bonia’s handbag after implementation
of GST.

2. Intense Competition
- The competition in the fashion industry is very intense as there are many competitors. The
fashion product are easily be substituted by another product. So, the intense competition
within the fashion industry has increase the difficulty for the fashion brand or business to
survive on the market. Bonia is facing the strong competition with its competitors in order to
stand on the Malaysia fashion market.

3. Economy Downturn
- The economy is facing downturn in these few years and Malaysia currency exchange rate is
fluctuated on the market. This has affect the standard of living of Malaysia’s people and
people tends to save their money rather than spending their money. This will affect the sales
of the fashion products drop due to the economy downturn.

4. Change of Customer Preferences


- The customer will change their preferences towards a product or brand easily as the fashion
trends change frequently. So, it is very difficult for a fashion brand must know the needs and
wants of the customers and satisfy their needs and wants in order to keep the customers.

5. High employee turnover rate


- The employee turnover rate is high in the fashion industry as the employee tends to change
from a working place to another working place in a three-month times. This will cause the
business having difficulty in keeping the talents in their store and have to look and train for a
new employee again. All of these will increase the cost of business and decrease their profit
earned.

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