Case Study
Read the following case and answer ALL questions.
DRB-Hicom focuses on digital transformation.
KUALA LUMPUR: DRB-Hicom Bhd is focusing on digital transformation across multiple sectors, including banking and postal services, to improve operational efficiency. For other sectors, including aerospace and defence, services, and properties, the conglomerate stated that it remained committed to strengthening business resilience and ensuring long-term stability.
“The group maintains a satisfactory outlook for the financial year ending Dec 31, 2024,” DRBHicom said in a statement.
In the third quarter ended Sept 30, DRB-Hicom posted a net loss of RM5.3mil compared with a net profit of RM70.8mil in the same quarter last year. Revenue, however, climbed to RM4.13 bil, compared to RM4 bil. The group posted a loss per share of 0.27 sen for the quarter, compared with earnings per share of 3.66 sen.
“This revenue growth reflects the group’s resilience and ability to adapt to evolving market conditions, driven by contributions from its core sectors despite ongoing challenges,” DRBHicom said.
During the quarter under review, the automotive and postal sectors experienced a decline in revenue. The automotive sector faced reduced vehicle sales volume due to intensified competition in the local car market.
Meanwhile, its postal sector’s revenue decreased mainly due to a decline in international business and bulk mail volume within the mail business segment, driven by lower cross-border volumes amidst an industry-wide slowdown.
In the first nine months, it posted a net profit of RM 69.2mil, down 67.4% from RM 212.4mil, while revenue rose 1.2% to RM 12.2bil against RM 12.08bil a year ago. “As Proton builds momentum with improved sales performance in the third quarter, the company is set to debut Malaysia’s first electric vehicle (EV), known as Proton e.MAS 7.
“This SUV model equipped with advanced technology and sustainable features marks a significant milestone toward Malaysia’s green mobility aspirations,” DRB-Hicom said.
“This new addition is set to further elevate Proton’s market presence while reinforcing the group’s commitment towards sustainable innovation.”
Questions:
1. Look into all of DRB Hicom’s array of products and services, then identify one of their subsidiaries that you feel is a leader or has the potential to be a leader in the market. Source credible articles to support your choice.
Based on those articles, report on the extent of digitalization that this particular organisation is at currently.
2. Identify the same organization’s competitors domestically and internationally. Compare the level of digitization that those competitors are at against your answer in Q1.
3. Consider and discuss the opportunities and threats that this organization will potentially need to focus on to either maintain or ascend its position in the market.
4. Suggest a strategic digital transformation plan based on the factors discussed in Q3 that you would implement to ensure the organization’s success, given that cost was not a factor