SWOT ANALYSIS

STRENGTHS	WEAKNESSES
ü  Modern equipment especially payment system ü  Convenient service from washing, drying, ironing to home delivering	ü  Store with limited space ü  Small number of washers and dryers ü  Low brand awareness ü  Unclear price list
OPPORTUNITIES	THREATS
ü  Small number of self-service laundry stores in Malaysia ü  Large amount of working people and students ü  Cheap labour source	ü  Daily habit of washing clothes by hand at home ü  The business model is easy to copy

CUSTOMER SEGMENTATION OF THE LAUNDRY LOUNGE

GEOGRAPHIC		DEMGRAPHIC
NATION	CITY	OCCUPATION	AGE
MALAYSIA	RAUB	STUDENTS / HOUSEWIFE / EMPLOYEES	18 – 35 Years Old

PORTER'S FIVE FORCES ANALYSIS FOR A LAUNDRY LOUNGE IN RAUB, PAHANG

Bargaining power of customers	Bargaining power of suppliers
ü  Low costs of switching to similar services (ââ) ü  Tight budget (â) ü  Large number of Students (0) ü  Clean clothes as necessity of life (0) ü  Uniqueness of Laundry Lounge (0) ü  Few substitute service available (0)	ü  Small number of commercial laundry equipment suppliers (ââ) ü  High cost of switching to other laundry equipment supplier (ââ) ü  High importance of washing and drying machines in the business (ââ) ü  Start-up company (ââ) ü  Large number of suppliers for Laundry Lounge’s additional services (0) ü  Numerous premise for lease (0)
Rivalry of existing competitors
ü  Existing brand recognition is low (+) ü  Low industry growth rate (0) ü  Small number and small size of self-service laundry stores (0) ü  No outstanding competitors (0) ü  Poor diversity (0) ü  Information about the industry is no yet complicated (0) ü  No or very small advertising expenses (0)
Threats of new entrants	Threats of substitute services
ü  Easy to copy (â) ü  No proprietary factors in the industry (â) ü  Brand value in the industry is still low (â) ü  Moderate capital requirements (+) ü  Difficulties in finding suppliers (0)	ü  Daily habit of washing and drying clothes by hands at home (â) ü  Low or moderate quality ü  High price (0) ü  Clear differentiation (0)

INTERNET USERS IN MALAYSIA

INFLATION RATE & CUSTOMER SPENDING RATE AT MALAYSIA

Malaysia Inflation Rate 

The inflation rate in Malaysia was recorded at 3.30 percent in July of 2015. Inflation Rate in Malaysia averaged 3.68 percent from 1973 until 2015, reaching an all time high of 23.90 percent in March of 1974 and a record low of -2.40 percent in July of 2009. Inflation Rate in Malaysia is reported by the Department of Statistics Malaysia.

 

Malaysia GDP Annual Growth Rate

The Gross Domestic Product (GDP) in Malaysia expanded 4.90 percent in the second quarter of 2015 over the same quarter of the previous year. GDP Annual Growth Rate in Malaysia averaged 4.77 percent from 2000 until 2015, reaching an all time high of 10.30 percent in the first quarter of 2010 and a record low of -6.20 percent in the first quarter of 2009. GDP Annual Growth Rate in Malaysia is reported by the Department of Statistics Malaysia.

 

Malaysia Consumer Spending

Consumer Spending in Malaysia decreased to 134900 MYR Million in the second quarter of 2015 from 135507 MYR Million in the first quarter of 2015. Consumer Spending in Malaysia averaged 94217.40 MYR Million from 2005 until 2015, reaching an all time high of 138638 MYR Million in the third quarter of 2014 and a record low of 56768 MYR Million in the second quarter of 2005. Consumer Spending in Malaysia is reported by the Department of Statistics Malaysia.

WHY GO INTO THE COIN LAUNDRY BUSINESS?

1. Coin laundries are a basic-need business
2. Coin laundries are low risk business
3. There are very few employees.
• Generally only two employees per shift
4. Very little retail inventory (no waste)
• Soap
• Bleach
• Fabric softener
• Coffee
• Soft drinks / snacks
5. Coin laundries are an all cash business.
6. Owner have the only keys to the cash boxes
7. Coin laundries are an excellent absentee owner business.
8. Good coin laundries are very high in demand and easy to sell.

Company Objectives

It is our goal to offer our clients a valuable long-term laundry service but also a place where you can relax, have a nice coffee and meet people. We go beyond just looking at immediate problems by asking the appropriate questions to help customers plan for the future. We understands that a strategic plan combined with a pragmatic mind-set is required for a business to remain competitive:

 

1. We are dedicated to total satisfaction.
2. To be present in all the target market areas.
3. We will achieve superior performance, as measured by return on investment, through systematic, substantial and profitable growth.
4. We are committed to operating as an independent Laundromat service firm.
5. Be able to expend our services in the region of choice.