Question

1. What is the SWOT & TOWS of Hong Leong MSIG Takaful Malaysia ? Give an Explanation

2. What is Porter 5 Forces of Hong Leong MSIG Takaful Malaysia ?

Answer 1

1. Hong Leong MSIG Takaful Malaysia is a company based in Malaysia that offers a variety of products like Islamic Investments, Banking, and Islamic Wealth Management, etc. in an integrated manner. It follows all the rules and regulations according to Sharia. It provides financial services to corporates and retail clients.

SWOT: The strength of this is that it majorly aims at focusing the Muslims and it focuses on them. So, it has fixed customers who will not go anywhere else. The weakness is that it offers financial services based on Islam. So, only one community is benefitted by that and they are only users of this company and its services. There are limitations in the number of customers and expansion is a bit problem for them. The major opportunity is that they can take away the Muslim clients who are dealing with different institutions based on following the Sharia law. They have the benefit to involve people based on religion. The major threat is that people may move towards different service providers if they find better offers.

TOWS: Hong Leong MSIG Takaful Malaysia should focus on the external and internal factors to take a competitive edge over its customers. The company must focus on cross-selling of the products to increase its market coverage. This will prove to be one of the strengths of the company. They also must focus on capturing new market segments to increase their working capability and business expansion. One of the threats is that the new entry of the customers is very less. Only one segment is targeted which results in limiting the target market segment. The Company must utilize its strengths to limit the threats.

2. Porter’s five forces for Hong Leong MSIG Takaful Malaysia:

a. The threat of new entry is that the company is focusing on only one segment so there are limitations in their market coverage.

b. The people can choose other financial institutions as they can get more luring services to form some different institutions. This will result in a threat of substitution for the company.

c. Few companies like this offer services based on Sharia. People sometimes do not prefer to take services from such institutions due to less market coverage. But there are a large number of other financial institutions and people rely much on them. This is a threat of rivalry for Hong Leong MSIG Takaful Malaysia.

d. The limited number of such companies limits the power of both the supplier and the customers. This is the threat of power (both supplier and the consumer)