Space Matrix Analysis on Power Protection Relay in Malaysia

Objective: Although the SWOT Matrix has been done last week, and it is widely used in strategic planning, it has some limitation, which did not show how to achieve a competitive advantage. Hence, the SPACE Matrix, another useful matching tool, is used here, to identify whether aggressive, conservative, defensive, or competitive strategies are most appropriate.

Financial Strength

1. Total revenue from Engineering Project decrease from 6M to 2.5M

2. Net profit drop from RM740,000 in 2008 to RM148,000 in 2009

3. Return on equity drop 0.59 to 0.15

4. Inventory turnover increased 12.40

5. Fixed Asset turnover reduce from 3.09 to 1.66 1.0

1.0

1.0

5.0

1.0

9.0

Industry Strength

1. Government Policy to regular compulsory annual power feeder commissioning testing

2. High level of expertise requirement to enter power industry

3. Regulation to safety certification by chartered professional engineer

4. The power industry require high reliability and high safety margin

5. Limited power utility supplier 6.0

6.0

5.0

6.0

1.0

24.0

Environmental Stability

1. New Technology and Philosophy are frequently updated and developed

2. Low switching cost

3. Few but equally strong competitors

4. Customer is moving to green technology, opening up a new market

5. Currency exchange fluctuation -1.0

-3.0

-6.0

-1.0

-4.0

-16.0

Competitive Advantage

1. Limited regulated power utility supplier, and low switching cost

2. Our products provide outstandingly 10 years warranty

3. Our products come with integrated logic variable, high customized automation capability

4. Strong technical team which we could customize solution to customer

5. Market share in power utilities grow from 8% to 11% -6.0

-1.0

-1.0

-1.0

-4.0

-13.0

Conclusion

ES Average is ( -16 / 5 ) = -3.2

CA Average is ( -13 / 5 ) = -2.6 IS Average is ( 24 / 5 ) = 4.8

FS Average is ( 9 / 5 ) = 1.8

Directional Vector Coordinates: x-axis: -2.6 + ( +4.8 ) = +2.2

y-axis: -3.2 + ( +1.8 ) = -1.4

Therefore, my company should pursue Competitive Strategies.

Forward integration

• Direct proposal to private sector

Private sector typically takes power utility supplier's advices and recommendation to install their own incomer power feeder. Therefore, my forward integration is not to take over power utility company, which is impossible due to they're regulated supplier. Instead, we take our initiative to approach the potential private sector to consult them on our solution in incomer power feeder. What more is, we could customize various sub-station automation solutions for their power generator which restore and normalize automatically.

Market penetration

• Penetration with better service quality

We