Porter 5 Force
Industrial Analysis
The Plastic Pipe Manufacturing Industry
Prepared by
Lau Yee Leong, Mike
Master of Management, Taylors University Lakeside
Contents No. | Description | Page Number | | | | 1.0 | Market Assessment | 3 | | | | 2.0 | Internal Rivalry | 4 | | | | 3.0 | Barriers to Entry | 5 | | | | 4.0 | Supplier Power | 6 | | | | 5.0 | Buyer Power | 7 | | | | 6.0 | Substitutes | 9 | | | | 7.0 | Conclusion | 10 | | | | 8.0 | List of References | 11 | | | | 9.0 | Appendices (A to W) | 16 | | | |
1.0 Market Assessment
The plastic pipe manufacturing industry makes up approximately 7% in the entire plastic market in Malaysia (See Appendix A). They are a new technology which has grown over the years as increased innovation results in more efficient and improved plastic materials, and hence better pipes (See Appendix B). The production process of plastic pipes can be found in Appendix C. Within plastic pipes, there exist many different types of plastic materials which spread out the applications for each different material type. The following pie chart shows the proportion of each type of plastic material in the Malaysian market.
Figure 1: The different types of plastic materials and the proportion in the market in Malaysia (ABS - Acrylonitrile butadiene styrene, PVC – Polyvinyl chloride, PS – Polystyrene, PP – Polypropylene, PE – Polyethylene) (Resintech Bhd., 2007)
In Malaysia, there exist many different firms that manufacture plastic pipes. Some manufacture one type of material pipe (eg. PE only), or many different types of materials (eg. PE with PVC, etc). Moreover, some offer complementary services with the sale of pipes (eg. Engineering, welding or fabrication services) or offer pipe fittings (see Appendix D). Besides that, the firms differ in terms of the size and type of pipe that they are selling (Differences of pipe size is explained in Appendix E). Examples of such
The Plastic Pipe Manufacturing Industry
Prepared by
Lau Yee Leong, Mike
Master of Management, Taylors University Lakeside
Contents No. | Description | Page Number | | | | 1.0 | Market Assessment | 3 | | | | 2.0 | Internal Rivalry | 4 | | | | 3.0 | Barriers to Entry | 5 | | | | 4.0 | Supplier Power | 6 | | | | 5.0 | Buyer Power | 7 | | | | 6.0 | Substitutes | 9 | | | | 7.0 | Conclusion | 10 | | | | 8.0 | List of References | 11 | | | | 9.0 | Appendices (A to W) | 16 | | | |
1.0 Market Assessment
The plastic pipe manufacturing industry makes up approximately 7% in the entire plastic market in Malaysia (See Appendix A). They are a new technology which has grown over the years as increased innovation results in more efficient and improved plastic materials, and hence better pipes (See Appendix B). The production process of plastic pipes can be found in Appendix C. Within plastic pipes, there exist many different types of plastic materials which spread out the applications for each different material type. The following pie chart shows the proportion of each type of plastic material in the Malaysian market.
Figure 1: The different types of plastic materials and the proportion in the market in Malaysia (ABS - Acrylonitrile butadiene styrene, PVC – Polyvinyl chloride, PS – Polystyrene, PP – Polypropylene, PE – Polyethylene) (Resintech Bhd., 2007)
In Malaysia, there exist many different firms that manufacture plastic pipes. Some manufacture one type of material pipe (eg. PE only), or many different types of materials (eg. PE with PVC, etc). Moreover, some offer complementary services with the sale of pipes (eg. Engineering, welding or fabrication services) or offer pipe fittings (see Appendix D). Besides that, the firms differ in terms of the size and type of pipe that they are selling (Differences of pipe size is explained in Appendix E). Examples of such
References: 3. MRPI Pipes Sdn. Bhd., 2010. MRPI Pipes Sdn. Bhd. (Process of Extruder Line) [online] Available at: <http://www.mrpi.com.my/about_company.htm> [Accessed 20 January 2011] 4 5. Spirolite (M) Sdn. Bhd., 2002. Spirolite (M) Sdn. Bhd. [online] Available at: <http://spirolite.net/spirolite.htm> [Accessed 30 January 2011] 6 7. Malaysian Plastic Manufacturers Association, 2009. Malaysian Plastics Industry Directory 2009/2010 (Ordinary Members by Production Process) Petaling Jaya: Malaysian Plastic Manufacturers Association 8 9. Bina Plastic Industries Sdn. Bhd., 2010. Bina Plastic Industries Sdn. Bhd. (Company Profile) [online] Available at: <http://www.binaplast.com/UPVC-Products-Malaysia-HDPE-Products-ABS-Products/> [Accessed 18 January 2011] 10 11. Malaysian Plastic Manufacturers Association, 2009. Malaysian Plastics Industry Directory 2009/2010 (Ordinary Members Listing) Petaling Jaya: Malaysian Plastic Manufacturers Association 12 13. Yeow C., 2011. Discussion on output of Spirolite machines. [conversation] (Personal communication, 17 January 2011). 14. Choong N., 2011. Competitors Competency. Petaling Jaya: Spirolite (M) Sdn. Bhd. 15. SIRIM QAS International Sdn. Bhd., 2010. Product Certification Licence, MS 1058: PART 2: 2005 Malaysia Licence no. PS006001 16 17. IKRAM QA Services Sdn. Bhd., 2006. Senarai Bahan/ Barangan Binaan Tempatan (HDPE Pipes- Forenede Plast Sdn. Bhd.) Kajang: IKRAM QA Services Sdn. Bhd. 18. IKRAM QA Services Sdn. Bhd., 2006. Senarai Bahan/ Barangan Binaan Tempatan (HDPE Pipes- UAC Pipes Sdn. Bhd.) Kajang: IKRAM QA Services Sdn. Bhd. 19. IKRAM QA Services Sdn. Bhd., 2010. Senarai Bahan/ Barangan Binaan Tempatan Kajang: IKRAM QA Services Sdn. Bhd. 22. Leong L. Y., 2011. Spirolite Pipe, RIBFLO Pipe in Spirolite Factory, Bangi. [photograph] (Bangi: Personal collection) 23 24. Leong L. Y., 2011. Raw material in Spirolite Factory, Bangi. [photograph] (Bangi: Personal collection) 25 26. Malaysian Industrial Development Authority, 2008. Import duty. [online] (Updated 13 August 2010) Available at: <http://www.mida.gov.my/en_v2/index.php?page=import-duty> [Accessed 2 February 2011] 27 28. Borouge, 2010. Why has PE100 Pipe been so successful in Europe? [online] Available at: <http://www.borouge.com/IndustrySolution/PDF%20Files/PE100%20compounds.pdf> [Accessed 2 February 2011] 29 32. Ranhill Engineers and Construction Sdn. Bhd., 2010. Purchase Order of supplying pipes to Setiu, Terengganu. Johor Bahru: Ranhill Engineers and Construction Sdn. Bhd. 33. Spirolite (M) Sdn. Bhd. 2010. List of Trade Debtors to Spirolite (M) Sdn. Bhd. Subang Jaya: Spirolite (M) Sdn. Bhd. 34. Spirolite (M) Sdn. Bhd. 2010. Price List of Spirolite (M) Sdn. Bhd in year 2010. Subang Jaya: Spirolite (M) Sdn. Bhd. 35. Hong L. K., 2011. Discussion on buyers of small pipe products for Spirolite. [conversation] (Personal communication, 25 January 2011). 36. Hong L. K., 2011. Discussion on substitute materials against plastic pipes. [conversation] (Personal communication, 30 January 2011).