Top Glove Corporation SWOT Analysis
Top Glove Corporation is one of Malaysia’s most prominent rubber glove manufacturers. The company also manufactures dental dams, face masks, and more. Currently, they have approximately 50 manufacturing facilities in Thailand, Malaysia, Vietnam, and China. This SWOT analysis of Top Glove Corporation includes some crucial factors – strengths, weaknesses, opportunities, and threats. The internal factors cover strengths and weaknesses, whereas the external factors include opportunities and threats. With this critical analysis, one can easily identify the challenges or difficulties that Top Glove Corporation is facing in Malaysia.
A SWOT is the perfect methodological approach to identify the major business factors of Top Glove Corporation. The obtained information or data can help managers to benchmark the company’s performance.
These four factors impact the business performance of the company. It is always important for the company’s managers to enhance its strength, fix weaknesses, find new opportunities, and eradicate threats. This can help the company to maintain its profitability and return on resources. In this article, we will conduct SWOT analysis of Top Glove Corporation for the healthcare sector.
Company Name: Top Glove Corporation Berhad
Founders: Lim Wee-Chai
Headquarters: Shah Alam, Malaysia
Parent Company: Great Glove (Xing Hua) Co. Ltd.
Type: Public Limited Company
Sector: Disposable Rubber Glove
Tagline: Must Know, Must Do, Must Teach
Unique Selling Proposition: To become one of the largest manufacturers of disposable rubber gloves.
Customers: Healthcare companies and medical institutions
Target Consumers: Medical institutions
Net Income: (2021)
Strengths of Top Glove Corp
Strengths represent the company’s resources, capabilities, and competitiveness in the market. The company can use its strengths to develop and design new products and services to serve to the needs of the consumers.
At Top Glove Corporation, there is no shortage of skilled workforce. Its human resources department is very competent when it comes to hiring the right and experienced employees. On the other hand, the company invests so much in employee training programs. This factor plays an important role in the success of Top Glove Corporation in the supply industry and medical equipment.
Catering to Various Customers Segments
With a diverse range of products, the company almost caters to the needs of different segments. They have invested so much in several customer segments, especially in medical equipment and supplies. This has helped the company multiply its revenue stream and market share.
Success of New Products
There is no doubt about it that Top Glove Corporation has an extensive product portfolio. They provide a mix of excellent products to its consumers. Due to this reason, the organization is very popular in different customer segments.
First Mover Advantage
Top Glove Corporation was the first mover in the supplies industry and medical equipment. So, it holds a particular position and status in the industry. They are enjoying the benefits of higher profitability and margins because they were the first mover in the healthcare industry.
Compared to the other companies, Top Glove Corporation earns the most revenue because they are very conscious of quality. This strength allows the company to stay on top.
Strong Market Position
Without any doubt, Top Glove Corporation is the market leader when it comes to market share. They have maintained a solid position in the medical and supply industry. This allows the company to produce new products.
Weaknesses of Top Glove Corp
The lack of resources or planning represents areas for improvement. The company can turn its weaknesses into strengths by fixing weaknesses. It is easy to determine weaknesses using a SWOT analysis. Besides being a successful rubber glove manufacturing company in Malaysia, Top Glove Corporation also has some weaknesses. Let’s discuss its shortcomings.
Right now, the industry in which Top Glove Corporation operates has become more competitive. This competitiveness is putting immense pressure on its working and profitability. So, it becomes really difficult for the company to manage its performance and profitability.
Higher Turnover Rate
The biggest problem Top Glove Corporation is facing right now is the high turnover rate. It is a big concern for the company. They are spending too much on salaries and other expenses to retain the employees. It is a big weakness for Top Glove Corporation.
Investment Needed to Build New Logistics Network
Building a new logistics and supply chain network takes so much money and resources. The emergence of technology has altered everything, especially the way of doing business. The internet and AI are transforming everything, making it difficult for companies to sustain or survive.
Top Glove Corporation needs to build a robust business model that can satisfy customers, suppliers, and vendors. The business model of the company could be more powerful. So, it is highly susceptible to failure. Competitors of Top Glove Corporation can take advantage of this to put pressure on the performance and margin of the company.
The company utilizes local monopolies and niche markets to enhance its business. But, it has failed to exploit this factor due to the changing market conditions. So, it is not supporting the company’s motive.
Decreasing Market Share
The healthcare sector and its demands are growing with every passing day. It is hard for companies like Top Glove Corporation to meet the needs of the markets. So, its market share is decreasing day by day. In such scenarios, it is really difficult for an organization to keep running its business. Top Glove Corporation should analyze each factor before taking the next step by figuring out the needs and demands of the future.
Opportunities for Top Glove Corp
Opportunities are those areas in which an organization can identify its market potential for increasing its market share, growth, and profits. The following are some of the opportunities for Top Glove Corporation:
Launching of New Products
By launching or introducing new products in the medical and supplies industry, Top Glove Corporation can enhance its market position and revenue stream. They can be trendsetters in the industry by launching successful products. They should think about it in order to take their business one step ahead.
Lower Inflation Rate
Top Glove Corporation can take advantage of the lower inflation rate. They can take advantage of this factor because the lower inflation rate brings stability in the market. It enables people to use the products of Top Glove Corporation at a large scale.
Collaborations and Partnerships
The firm should think about partnerships and collaborations with local distributors and manufacturers. This will help the company to enhance its business and supply chain. They can also collaborate with international firms for global reach. It is a big opportunity for the company and they should exploit it wisely.
The emergence of AI and technology has improved the productivity of industries and organizations. They can now produce high-quality, flawless services and products with minimum effort and cost. As a result, Top Glove Corporation can invest in other fields and areas.
Customer Spending Behavior
These days, people are more conscious about the quality of a product. They prefer quality over quantity. This spending behavior of consumers gives a great opportunity to Top Glove Corporation. They can make products according to the requirements of the customers. In short, they can meet the requirements of lower as well as higher-end consumers. This will directly give a huge boost to its profitability.
Expansion of Economy
The firm has so many growth opportunities in the country. However, they can also expand their business into other countries like the US. The company can also target other areas or countries despite having a strong international presence.
Threats for Top Glove Corp
As Top Glove Corporation operates in such a competitive environment, it faces a lot of competition from other companies. However, the volatile economic and ever-changing market conditions make it difficult for the company to maintain its position. The company can manage threats, but they can’t be controlled.
Right now, there are so many rubber glove manufacturing companies at both local and national levels in Malaysia. But don’t forget that Top Glove Corporation is still a leader in the country. Its innovative products are enough to give tough competition to its competitors. But, any strategic move or innovation from the competitors can destroy the business performance and profitability of the firm.
Trade Tension between China and US
Current trade tension between the USA and China is affecting international companies, including Top Glove Corporation. This kind of trade tension can affect the business of Top Glove Corporation in the long run.
Shortage of Skilled Employees
Due to the high turnover rate, Malaysia has a scarcity of skilled workforce. There is a chance that Top Glove Corporation will face human resources problems in the future. This could be the biggest threat to the company as well.
Growing Technological Advancement
Local players in Malaysia are using the latest technologies to manufacture high-quality products for the medical industry. These domestic players or companies can threaten the profitability of the company. Top Glove Corporation must keep a close eye on these firms.
Threat of Lawsuits
The environment in which Top Glove Corporation operates is highly susceptible to lawsuits and legal actions. This kind of activity can ruin the brand image of the company. The company should follow all the rules and laws to avoid the risk of legal action.
Volatile Political Condition
The changing political environment, such as the US and China conflicts, Brexit, and more, affect the company’s business strategies.
The instability in Asia and the Middle East also threatens the company. This kind of environment affects both local and international organizations.
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