Dutch Lady Swot

Strengths

Despite of its brand name, Dutch Lady is known and recognized for meeting international quality standards by acquiring MS ISO/IEC accreditation. Meanwhile, Quality Control Laboratory (QC Lab) of Dutch Lady Milk is accredited under Skim Akreditasi Makmal Malaysia (SAMM) for meeting requirements of management and technical as well as operation compliance with Quality Management Systems MS ISO 9001. This certification assures consumers that Dutch Lady’s products are safe and nutritious. For this company, food safety is always prioritized as it certifies with Hazard Analysis Critical Control Point System (HACCP) and Halal Standards. Moreover, Dutch Lady allocated RM 20 million of capital in improving food safety and capacity among others. These accreditations make consumer more confidence about their products hence increases trustworthiness of Dutch Lady.

Opportunities

Unlike Nestle, it seems to be much knotty to Dutch Lady with less household staples in Malaysia. In the recent downturn, diversification is seen to be a major ingredient to bring the sales up. Dutch Lady products are almost made up of milk. Nestle has a variety of product range makes it as a relatively stable consumer stock. Dutch Lady tends to strategize product line expansion in order to seize sufficient market share or equivalent. It seems to be obvious that diversification is the key term separating Dutch Lady form Nestle which always one step ahead. To be specific and relistic, Dutch Lady could start from milk-related products such as chocolates, coffees, cheese, butter and etc.

Threats

According to Rahul Colaco, the managing director of Dutch lady, they are conservatively optimistic about the prospect of Dutch Lady’s performance in this year. The most controversial issue is in fact, prices of core products are forced to increase