Elba Holdings Case Study Analysis

Essay by triptaUniversity, Bachelor'sA+, April 2004

download word file, 28 pages 4.1


A detailed analysis has been carried out on a Malaysian incorporated company: Elba Holdings Bhd. Basically they deal in the manufacturing and retailing of garments and they carry three brands: Elba, Edwin, and Adax. The analysis was done by using the following theories:

The PEST analysis was studies to give a better understanding as to how the external macro environment affects the company. There are many external risks involved here especially when foreign competition enters the Malaysian market. Government rules and regulations have affected how Elba can trade and furthermore, the sociological factors are changing in line with technological changes. Thus each factor in the PEST analysis is intertwined and it can't be unbundled and looked at separately, because changes in one factor may affect the other.

Porters 5 forces are based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment.

Especially, competitive strategy should base on and understanding of industry structures and the way they change. Looking at Elba, we are able to identify the height of entry and exit barriers, intensity of rivalry, threat of substitutes, and bargaining power of buyers and suppliers.

Competitors' analysis gives a brief description on each of Elba's competitors including Padini, Bonia, Esprit, Giordano, Lee Cooper, and Levis. Future goals, strategies, strengths and weaknesses of each competitor is also being discussed.

Customers analysis looks at the buying behaviour of the Malaysian consumers, and how time and technology and Western influence has changed the way they dress. It also looks into who are Elba's target markets.

Financial analysis looks into several ratios, such as profitability ratio, leverage ratio, activity and liquidity ratio. After the analysis, it is seen that Elba is not doing very well assuming that it is just recovering from...