Integrated Research Report

中藥舖Chinese Medical Hall

THE LEGENDARY

!

SCHOOL&OF&ARCHITECTURE,&BUILDING&AND&DESIGN&

FOUNDATION&IN&NATURAL&&&BUILT&ENVIRONMENT&

&&

PRESENTATION&TITLE:&RESEARCH&ASSIGNMENT&REPORT&(CHINESE&HERBAL&MEDICINE&SHOP)&

GROUP&MEMBERS:&

ENGLISH&II&/&ENGLISH&2&(ELG&30605&/&ENG&0205)&

LECTURER:&CASSANDRA&WIJESURIA&

SUBMISSION&&&PRESENTATION&DATE:&NOVEMBER&25,&2015.&2.00PM&

NAMES PRESENTATION&/&RESEARCH&REPORT&ROLES

YEAP&PHAY&SHIAN • LEADER&• COMPARATIVE&ANALYSIS&BETWEEN&BOTH&BUSINESSES&PART&I&

• APPENDIX&• CONCLUSION

LEE&YET&YEE • VIDEO&EDITTING&• PRESENTATION&SLIDES&• MAKING&APPOINTMENT&WITH&THE&INTERVIEWEE&

• FINAL&CHECKING

MADELINE&LIEW&ZHI&QI • COMPARATIVE&ANALYSIS&BETWEEN&BOTH&BUSINESSES&PART&II&

• BRIEF&DESCRIPTION&OF&BUSINESS&• ARTISTIC&COVER&• MAKING&APPOINTMENT&WITH&THE&INTERVIEWEE

HENG&SY&HUA • TRANSCRIPT&GATHERED&INFORMATION&• RECOMMENDATION&• REFERENCES&• BIBLIOGRAPHY

TAM&ZHAO&WEI • HISTORY&OF&BUSINESS&• SUMMARY&&• MINUTES&OF&MEETINGS&• COMPILATION&OF&RESEARCH&REPORT

FNBE!August!2015!ENG!II! Integrated!Project!Report �1

TABLE&OF&CONTENTS&

NO. TITLE PAGE&NUMBER

1 Ar=s=c!Cover @

2 Cover!Page 1

3 Table!of!Contents 2

4 Summary 3

5 Descrip=on!of!History!of!Business 4

6 Research!Report!

i. Brief!Biography!of!the!Businesses!

@ Brief!Descrip=on!of!the!Businesses!!

@ Similari=es!&!Differences!of!Both!Businesses!!

ii. Compara=ve!Analysis!

@ Number!of!compe=tors!!

@ Brief!Descrip=on!of!Compe=tors!

@ Compe==on!Strategies!

@ Obstacles!Faced!by!New!Firms!

@ Nature!of!the!Market!!

@ Compara=ve!Analysis!Summary!Table

6!

13

7 Recommenda=on 22

8 Conclusion 25

9 Bibliography 26

10 Interview!Ques=ons!&!Answers 27

11 Appendix 37

12 Minutes!of!Mee=ng 43

13 References 49


Summary&&

This! assignment! focuses! on! the! compara=ve! analysis! between! two! similar! businesses! at! two!

different! geographical! loca=ons.! The! chosen! business! is! the! Chinese! herbal!medicine!which! is! a!

part! of! the! integrated! system! of! primary! health! care,! known! as! Tradi=onal! Chinese! Medicine!

(TCM).! The! Chinese! herbal! medicine! has! an! uninterrupted! history! of! development! da=ng! back!

thousands!of!years!in!China!and!other!parts!of!East!Asia.!Cze!Kong!Medical!Hall!&!Sundry!which!is!

located! at! Cheras,! Kuala! Lumpur! and!Chop! Yan! Tuck!Medical!Hall!which! is! located! at! Seremban!

Town,!Negeri!Sembilan!has!been!chosen!as!the!analysis!targets.!This!is!to!compare!the!business!of!!

one!medical! hall! with! sundry! business! and! one!with! no! sundry! business.! Interviews! have! been!

conducted! in! both! medical! halls! as! to! gather! further! informa=on! from! their! business.! The!

informa=on! gathered! has! been! analysed! and! further! categorised! into! respec=ve! topics! with!

reliable! sources! in! reference.! As! a! conclusion,! Chop! Yan! Tuck! Medical! Hall! is! commercially!

successful!than!Cze!Kong!Medical!Hall!&!Sundry!because!Chop!Yan!Tuck!Medical!Hall!has!a!greater!

annual!revenue,!wider!range!and!amount!of!customers!and!they!sell!beber!quality!Chinese!herbs,!

and! they! even! provide! tradi=onal! pulse! diagnosis.! Besides! these,! careful! analysis! on! the!

recommenda=ons!in!order!to!improve!their!compe==ve!skills!have!been!included!in!this!report!as!

to!show!difference!between!the!two!medical!halls.!!


History&of&TradiUonal&Chinese&Medicine&(TCM)&

Tradi=onal!Chinese!Medicine!(TCM)!has!a!long!and!rich!history,!and!it!is!the!third!oldest!form!

of!medicine.! TCM!dated!back! to! the!period!of!The!Huang!Di.!The$NeiJing$ (The$Yellow$Emperor’s$

Canon$of$Internal$Medicine)$that!is!the!greatest!and!the!oldest!Chinese!medical!classic!is!milestone,!

which!has!established!the!theore=cal!founda=on!for!the!medical!system!and!philosophical!theory.!!

In! the!19th!century,!with!western!medicine!entering!and!developing! rapidly! in!China,!TCM!

development! was! affected! severely,! which! was! between! the! devil! and! the! deep! sea.! Ader! the!

Opium!Wars! in!China,!which!made!Chinese!to!have! falsity!belief! that!TCM!is!unscien=fic,! feudal.!

Hence,!TCM!had!always!been!in!the!posi=on!being!inves=gated,!examined,!queried!and!reformed,!

and!developed!on!thin!ice.!Ader!the!founda=on!of!the!People’s!Republic!of!China,!the!Government!

affirms! the! policy! to! protect! TCM.! The! stabilisa=on! of! TCM! allowed! it! to! be! spread! to! places!

outside!China.! This! includes!places! such!as! the!western! countries,! Southeast!Asia,! Japan,!Korea,!

India!and!etcetera.!!

TCM!in!Malaysia!was!brought!in!by!Chinese!immigrants!from!China!in!the!olden!days.!They!

came!to!Malaya!to!find!a!living.!Hence,!TCM!started!to!develop!in!Malaya.!It!was!quickly!accepted!

by!the!locals!as!they!were!effec=ve!in!curing!disease!and!helped!a!lot!in!maintaining!the!people’s!

health.!Ader!some!=me!then,!TCM!was!widely!used!in!Malaya.!Over!hundreds!of!Chinese!medical!

halls!were!established!in!all!over!Malaya!including!Kuala!Lumpur,!Ipoh,!Penang!and!etcetera.!Some!

of!them!are!s=ll!running!the!business!un=l!today!as!the!pioneers!passed!down!the!knowledge!and!

business!to!the!younger!genera=ons.!

!

!


Huang$Di$Nei$Jing Chinese$Medical$Hall$at$Malaya Pioneers$of$TCM$Malaysia

The!fact!that!the!tradi=onal!Chinese!medicine!has!existed!for!over!thousands!of!years,!and!is!

s=ll!used!today!is!because!of! its!value!as!a!form!of!healthcare.!The!value!of!TCM!is! judged!by! its!

poten=ali=es!as!well!as!its!present!applica=ons,!and!the!evalua=ng!work!should!be!based!more!on!

the!TCM!originated! from! the!ancient!=mes!and! collected! various! kinds!of! techniques!under! the!

direc=ng! of! its! theory.! TCM! theory! has! the! character! of! holism,! and! is! told!mainly! by! concepts!

related! to!Chinese!philosophy!and!culture.!TCM!theory!does! its!best! to!make!use!of! the!natural!

law,!and!finds!out!that!the!body!of!a!man!is!in!unity!with!his!mind!and!should!not!be!apart!from!

each!other!any=me!and!anywhere.!The!most!fundamental!theory!is!the!Yin!Yang!Concept!and!it!is!

the!founda=on!of!diagnosis!and!treatment.!

TCM! theory! emphasises! most! on! the! self@healing! power! of! man! for! curing! diseases! and!

keeping!fitness,!and!many!of!its!therapies!are!employed!for!enhancing!this!power.!Without!it,!TCM!

cannot!do!anything! to!promote!health! and! to! cure!diseases,! and! the!mechanism!of! TCM!would!

remain! a! mystery! to! us.! The! cul=va=on! of! mind! or! spirit! is! the! basis! of! those! methods! for!

flourishing!self@healing!power,!and!thus!TCM!theory!has!the!character!similar! to!that!of!religions!

that!ask!people!depend!on!themselves.!!

&

&


Yin$Yang$Concept$TCM$focuses$on$allowing$the$selfChealing$power$of$

man$to$fight$diseases.

Brief&DescripUon&of&the&Business&&

A)&Cze&Kong&Medical&Hall&and&Sundry,&Kuala&Lumpur.&

Cze!Kong!Medical!Hall!and!Sundry!is!currently!located!at!Jalan!Medan!Midah,!Taman!Midah,!

56000,!Kuala! Lumpur,!and! it! is! a! family!business.!They!are! selling!both! tradi=onal! chinese!herbs!

and!sundry!to!be!compe==ve!to!the!other!business.!The!business!is!founded!at!1990!by!Mr.!Liew!

Cze!Kong!and!run!by!him!and!his!wife!together.!The!present!shop!is!opened!at!2000!as!he!shided!

the! shop! from!Ampang! to! Cheras.! He! learned! the! knowledge! of! tradi=onal! herbs!when! he! first!

worked! in! a! tradi=onal! chinese!herbal! shop.! Then!he!opens!his!own!medical!hall! and! sundry! to!

earn!himself!a!living.!There!are!only!3!employees!in!the!shop!including!Mr.!Liew!and!his!wife.!


Cze Kong Medical Hall and

Cze! Kong! Medical! Hall! and! Sundry! sells! around! 500! tradi=onal! herbs! along! with! ready!

packaged!herbal!soup!and!sundry!such!as!oil,!milo!and!washing!powder.!According!to!Mr.!Liew,!the!

majority!of! the! customers! are! chinese! as! the! loca=on!of! the!business! is! in! a! chinese! residen=al!

area.!The!demand!of! the! ready!packaged!herbal! soup! is! the!highest!as! it! is!good! for!health!and!

affordable! for! the! customers.! There! are! around! 50! customers! everyday! and! most! of! them! are!

senior!ci=zens!and!adults.!Most!of! the!customers!are! loyal! to!Cze!Kong!Medical!Hall!and!Sundry!

and! has! been! buying! herbs! and! sundry! from! the! shop! for! a! long! period! of! =me! as!Mr.! Liew! is!

honest!to!the!customers.!The!peak!hour!of!the!business!is!in!the!morning!as!it!is!just!located!next!

to!the!morning!market.!They!use!modern!equipments!such!as!electronic!balance!and!calculator!to!

replace!the!tradi=onal!ones!to!be!more!efficient.!!


B)&Chop&Yan&Tuck&Medical&Hall,&Seremban&

Chop! Yan! Tuck! Medical! Hall! is! located! at! Jalan! Munawir,! Bandar! Seremban,! 70000,!

Seremban,! Negeri! Sembilan.! It! is! a! tradi=onal! chinese! medical! hall! that! provides! consulta=on,!

treatment! and! prescrip=on! to! their! customers.! They! also! sell! tradi=onal! chinese! herbs! and! also!

=dbits! such! as! groundnuts! and! sweets.! The! business!was! founded! by! his! grandparents! in! 1944!

during!the!Japan!occupa=on!of!Malaya.!It!started!off!with!a!simple!mo=ve!when!his!grandparents!

worked! in!Eu!Yan!Sang!and!decided! to!open!a!medical!hall! and! sundry! shop! to!earn!a! living.! In!

1995,!they!decided!to!focus!on!only!selling!tradi=onal!chinese!herbs!as!it!can!gain!more!profit!as!

well! as! less! troublesome!handing! the! sundry.! There!are!11!employees! in! the! shop! including!Mr.!

Chong.!


Chop Yan Tuck

Medical

Furthermore,! Chop!Yan!Tuck!Medical!Hall! provides! tradi=onal! pulse!diagnosis! that! is! carry!

out!by!a!chinese!sensei,!Ng!See!Heng!that!have!over!40!years!of!experience.!Most!of!the!customers!

visit! the! store! to!get!diagnosis!as! tradi=onal! chinese!medicine! is!natural!and!not!harmful! to! the!

body.!Thus,!there!are!more!than!100!customers!everyday!to!buy!herbs!and!get!diagnosis!from!the!

sensei.!They!use!tradi=onal!equipments!such!as!abacus!and!chinese!weighing!scale.!The!price!of!

their!products! range! from!RM1.40!up! to!a! few! thousands.!According! to!Mr.!Chong,!most!of! the!

customers!are!passed!from!genera=on!to!genera=on!as!they!have!trust!in!the!shop.!They!sell!high!

quality!chinese!herbs!to!differen=ate!themselves!from!others!as!others!sells!lower!grade!herbs.!


InformaUon&of&Interviewee&

Cze&Kong&Medical&Hall&&&Sundry&

Name:!Liew!Cze!Kong!

Job!Posi=on:!Owner!

Office!phone!number:!+603@91312553!

!

Chop&Yan&Tuck&Medical&Hall&&

Name:!Chong!Ngai!Loong!

Job!Posi=on:!Retailer!

Phone!number:!+6012@750!3802!


SimilariUes&&&Differences&of&Both&Business&

SimilariUes&

Differences&&

Cze&Kong&Medical&Hall&and&

Sundry

SimilariUes Chop&Yan&Tuck&Medical&Hall

Short!Term Future!Plans Short!Term

Local!Customer!!

Senior!Ci=zens

Targeted!Market Local!Customer!!

Senior!Ci=zens

None Current!Branches None

Family!Business Family!Business!

Through!word!of!mouth Adver=sing! Through!word!of!mouth

To!earn!a!living!and!have!

passion!towards!chinese!

herbal

Mo=ve! To!earn!a!living!and!have!

passion!towards!chinese!

herbal

Cze&Kong&Medical&Hall&and&

Sundry

Differences Chop&Yan&Tuck&Medical&Hall

Liew!Cze!Kong!

He!worked!in!the!herbal!field!

as!an!appren=ce!when!he!was!

young.!Since!then,!he!built!a!

strong!bond!with!the!herbal!

field!and!decided!to!start!his!

own!business!ader!about!10!

years.!He!started!his!business!

in!Ampang!at!the!year!of!1990.!

However,!he!moved!and!

started!his!herbal!shop!in!year!

2000.!He!relocated!the!

business!because!he!found!

that!Taman!Midah!is!lack!of!

herbal!stalls!and!the!

popula=on!of!residents!at!this!

area!is!high.!!

Founder&and&History

Chong!Yan!Tuck!

Mr.Chong!Ngai!Loong’s!

grandfather!worked!in!Eu!Yan!

Sang!before.!He!learnt!a!lot!of!

knowledge!about!Chinese!

herbal!shop.!As!such,!he!

decided!to!start!his!own!

Chinese!herbs!business!in!

order!to!support!the!expenses!

of!his!growing!son.!He!also!

wanted!to!introduce!the!high!

quality!herbs!to!the!people!in!

Seremban.!

Taman!Midah,!Kuala!Lumpur LocaUon Bandar!Seremban,!Seremban

3 Employees 11


Monday!@!Saturday!,!8:00am!@!

6:00pm!

Sunday!,!8:00am!@!1:00pm

Working&Hours Monday!@!Saturday,!8:30am!to!

8:00pm!

Sunday,!10:00am!to!2:00pm

around!50 Number&of&customers more!than!100

Slightly!modern!shelves!with!

air!condi=oned!and!CCTV!

installed!

Shop&Layout&and&Atmosphere Tradi=onal!chinese!herbal!

shelving!with!lots!of!drawers,!

approx.!RM!1.5!mil Annual&Revenue& approx.!RM2!mil

N/A Services& Tradi=onal!Pulse!Diagnosis!

Chinese!Herbs!and!Sundry Main&Products Chinese!Herbs!

Calculator Means&of&CalculaUon Abacus!and!Calculator

Electronic!Balance Means&of&Weighing& Chinese!Weighing!Scale


ComparaUve&Analysis&Between&Cze&Kong&Medical&Hall&and&Sundry&and&&

Chop&Yan&Tuck&Medical&Hall&

I&c&Number&of&CompeUtors&

Cze!Kong!Medical!Hall!and!Sundry,!which!is!located!in!Cheras,!has!three!compe=tors!which!are!Eu!

Yan!Sang,!Kim!Loy!Medical!Hall!and!Sundry!and!Ban!Soon!Heng!Medical!Hall!and!Sundry.!On!the!

contrary,!Chop!Yan!Tuck!Medical!Hall!has!three!top!compe=tors,!that!is!Eu!Yan!Sang!and!Cheoon!

Lin!Medical!Hall!and!Lifecare!Chinese!Medical!Hall.!

II&c&Brief&DescripUon&of&CompeUtors&

Cze&Kong&Medical&&Hall&&&Sundry’s&Top&3&CompeUtors&

1.&Kim&Loy&Medical&Hall&&&Sundry&Shop&

Although!there!are!many!medical!hall!and!sundry!shops!in!this!area,!Mr.!Liew!knows!much!about!

his!compe=tors.! It! is!much!more!compe==ve!to!run!a!business! in!Klang!Valley!than! in!Seremban!

due!to!the!fast!development!of!Klang!Valley.!Kim!Loy!Medical!Hall!and!Sundry!is!one!of!the!strong!

compe=tors!as!they!have!modern!renova=ons!and!a!larger!shop!and!located!just!next!to!Cze!Kong.!

They!also!provide!over!500!types!of!medical!herbs!and!also!have!packaged!chinese!herbal!soup.!

There!are!more!stock!on!sundry!and!variety!compared!to!Cze!Kong.!The!shop!layout!is!refurnished!

recently! and! changed! their! shelves! to!modern! shelves! so! that! they! can! last! longer.! The!working!

hours!for!Kim!Loy!is!8am!to!8pm,!so!more!customers!will!go!to!Kim!Loy!during!noon!as!Cze!Kong!is!

closed!by!then.!


Exterior!view!of!Kim!Loy.

2.&Ban&Soon&Heng&Medical&Hall&&&Sundry&

!

Next,!Ban!Soon!Heng!Medical!Hall!and!Sundry!is!another!strong!compe=tors!since!it!is!located!next!

to!a!main!road!and!the!shop!has!a!larger!area.!The!products!provided!are!much!the!same!as!Kim!

Loy!Medical!Hall!and!Sundry.!The!shop!has!a! longer!working!hour,! that! is!8am!to!8pm,!so!many!

customers! that! are! coming! by! night! will! visit! Ban! Soon! Heng.! The! products! are! priced! slightly!

higher!compared!to!others!because!they!have!a!variety!of!sundry!that!others!do!not!sell!such!as!

frozen!food!and!ice!cream.!!

3.&Eu&Yan&Sang&&

Finally,!Eu!Yan!Sang!has!just!opened!this!branch!recently,!so!it!do!not!compete!much!with!Cze!Kong!

as!the!customers!are!different.!Eu!Yan!Sang!was!established!in!1879!and!now!have!over!300!outlets!

across!Asia.! They!offers! a!huge! variety!of!products! that! includes!health! supplement,!bird’s!nest,!

ginseng!and!others.!They!also!have!promo=ons!to!increase!their!sales!and!customers.!Apart!from!

that! they! oden! held! ac=vi=es! related! to! health! awareness! such! as! talk! about! detoxica=on! and!

Paren=ng!Sharing!Session!so!that!they!can!get!more!people!recognise!about!their!brand.!


Exterior!view!of!Ban!Soon!Heng.

Exterior!view!of!Eu!Yan!Sang.

Chop&Yan&Tuck&Medical&Hall’s&Top&3&CompeUtors&

1.&Eu&Yan&Sang&&

According! to! Mr.! Chong,! the! retailer! of! Chop! Yan!

Tuck,! Eu! Yan! Sang! is! the! only! compe=tor! as! the!

products! sold! is! much! the! same.! As! men=oned!

earlier,! Eu! Yan! Sang! has! over! 130! years! of! history,!

selling!varie=es!of!products!under!their!own!brand.!

The! herbs! sold! are! quality! guaranteed! by! their!

brand.!Most!of!the!customers!that!buy!Eu!Yan!Sang!

products!are! loyal! customers!as! they!are! rewarded!

by! the! membership! promo=on! that! Eu! Yan! Sang!

held!yearly.!

!

!

2.&Cheoon&Lin&Medical&Hall&

Apart!from!that,!Cheoon!Lin!Medical!Hall! is!also!an!

old! shop! in! the! area.! The!herbs! sold! are! similar! to!

Chop!Yan!Tuck!Medical!but!they!sell!liquor!as!well!to!

abract!customers.!The!interior!design!of!the!medical!

hall!is!modern!compared!to!Chop!Yan!Tuck!Medicial!

as! they! use! modern! drawers.! Their! sell! packaged!

ingredients!of!herbal!soup!to!provide!convenient!to!

the!customers.!!

!


Exterior!of!Eu!Yan!Sang.

Exterior!of!Cheoon!Lin!Medical!Hall.

3.&Lifecare&Chinese&Medical&Hall&&

Lifecare!Chinese!Medical!Hall!is!another!compe=tor!

of! Chop! Yan! Tuck! Medical! Hall! as! they! provide!

medical!diagnosis!and!treatment!to!their!customers.!

Apart! from! that,! acupuncture,! Chinese! herbal!

medicine,!remedial!massage,!exercise!and!breathing!

therapy! (such! as! qigong),! and! diet! and! lifestyle!

advice! are! available! here.! Most! of! the! customers!

here! come! here! for! acupuncture! weekly! to! treat!

their!diseases.!

!


Exterior!of!Lifecare!Chinese!Medical!

Centre.

III&c&CompeUUon&Strategies&

LocaUon Cheras&&Cze&Kong&Medical&Hall&and&Sundry

Seremban&Chop&Yan&Tuck&Medical&Hall

Number&of&CompeUtors&

3!

a. Kim!Loy!Medical!Hall!and!

Sundry!

b. Ban!Soon!Heng!Medical!Hall!

and!Sundry!

c. Eu!Yan!Sang!

d.

3!

a. Eu!Yan!Sang!

b. Cheoon!Lin!Medical!Hall!

c. Lifecare!Chinese!Medical!Hall

Pricing The!products!are!priced!

reasonably!according!to!the!

market!price.!Mr.!Liew!does!not!

increase!the!price!to!get!profit!

from!it!but!he!keep!other!

expenses!such!as!u=li=es!low!to!

increase!his!profit.!

The!price!of!the!chinese!tradi=onal!

herbs!are!slightly!higher!than!other!

compe=tors!as!the!quality!of!herbs!

are!beber.!

Services Cze!Kong!is!very!friendly!to!his!

customers!and!provides!great!

services!for!them.!This!abracts!

many!customers!by!word!of!

mouth.!Apart!from!that,!he!gives!

discount!to!his!regular!

customers!as!a!promo=on.!

They!have!experienced!sensei!to!

provide!tradi=onal!pulse!diagnosis!for!

the!customers.!Ader!the!diagnosis,!

they!give!prescrip=on!to!the!customer!

if!needed.!This!has!established!a!close!

rela=onship!with!the!customers!

because!of!their!posi=ve!aotude!to!

the!customers.!

Products There!are!many!types!of!sundry!

available!to!abract!customers!

and!compete!with!other!shops.!

The!quality!herbs!are!imported!

from!China!and!stored!well!in!

refrigerator!for!preserva=on.!!

The!tradi=onal!herbs!are!mostly!

imported!from!China!as!well,!which!is!

high!quality.!This!is!to!differen=ate!

themselves!from!others!


IV&c&Obstacles&Faced&by&New&Firms&

(a) Cze&Kong&Medical&Hall&&&Sundry&

Several!obstacles!are!faced!by!the!new!businesses!that!wish!to!enter!the!Chinese!herbal!medicine!

market.!For!instance,!Cze!Kong!Medical!Hall!&!Sundry!indicates!that!it!is!hard!to!look!for!employees!

who!truly!have!a!keen!interest!in!Chinese!herbs.!Furthermore,!running!this!business!requires!long!

working!hours.!They!should!be!physically!and!mentally!prepared!to!work!long!hours.!The!younger!

genera=ons!would!be!more!willing!to!opt!for!working!hours!that!are!shorter!compared!to!working!

for!long!hours!in!a!Chinese!herbal!medicine!market.!Since!this!field!is!more!towards!the!tradi=onal!

side,!this!type!of!business!would!be!more!suitable!for!those!who!are!really!passionate!in!Chinese!

herbal!medicine.!Another!obstacle!would!be! the! fact! that! the! current!firms!would! already!have!

strong!customer!loyalty!where!their!trust!is!gained!throughout!the!years.!As!such,!it!would!be!hard!

for!new!firms!to!gain!their!compe=tors!customers’!loyalty!and!to!go!for!other!medical!halls.!

(b) Chop&Yan&Tuck&Medical&Hall&

Chop!Yan!Tuck!Medical!Hall!states!that!it!is!tough!to!enter!due!to!the!process!of!obtaining!a!license.!

Every!type!of!Chinese!herbs!requires!its!own!license.!The!process!of!geong!this!license!would!be!

quite!tedious.!To!start!up!a!new!Chinese!herbal!medicine,!a!huge!amount!of!capital!is!required.!Mr.!

Chong!stated!that!approximately!half!a!million!of!capital!is!needed!to!establish!this!business!these!

days.!Back!then!in!1944,!only!a!few!hundred!Ringgit!is!required!to!start!this!business.!Not!only!that,!

nowadays! aspiring! Chinese! herbal! medicine! owners! do! not! have! as! much! experience! and!

knowledge!to!run!the!firm!effec=vely.!According!to!the!term!economies!of!scale!from!principle!of!

economics,! this!means! that! the!firm!has!more! ability! to!produce! goods! at! a! lower! average! cost!

over!the!long!run.!Due!to!this!concept!of!economies!of!scale,!new!firms!would!require!some!=me!

to! be! able! to! compete! with! those! prices.! In! addi=on,! new! firms! would! have! to! install! air!

condi=oner! in! their! shop! due! to! hygienic! reasons.! Moreover,! they! have! to! choose! a! strategic!

loca=on!so!that!their!shop!can!be!easily!accessed!and!no=ced.!Mr.!Chong!also!added!the!fact!that!

luck!is!also!needed!to!help!assist!a!successful!Chinese!herbal!medicine!business!career.!!


V&c&Nature&of&the&Market&

(a)&Cze&Kong&Medical&Hall&&&Sundry&

The!nature!of!the!market!for!Cze!Kong!Medical!Hall!&!Sundry!is!monopolis=c!compe==on.!There!

are!a!number!of!businesses!selling!herbs!within!the!area.!!

This!business!consists!of! top!three!compe=tors!whereby!two!are!selling!almost! iden=cal!product!

that! is! both! herbs! and! sundry! items!while! the! other! one! is! solely! selling! herbs.! Since! there! are!

several!of!these!firms!in!the!market,!the!barriers!to!entry!for!new!firms!are!rela=vely!weak.!Due!to!

having!mul=ple!firms!selling!almost!iden=cal!products,!the!compe==on!level!is!quite!high.!As!such,!

the!firms!cannot!charge!at!a!high!price!or!else!the!customers!will!purchase!from!its!rivals.!Being!in!

a!monopolis=c!compe==on,!Cze!Kong!Medical!Hall!&!Sundry!has!weak!pricing!power,!that!is!to!say!

that! this!firm! is!a!price! taker!whereby! the!price! is!affected!by! the!supply!and!demand.!The!firm!

cannot! influence! their! prices! of! the! products! because! there! are! s=ll! compe=tors! out! there! that!

have! influence!on!the!pricing!as!well.!As!such,! if!one!firm!were!to! increase!their!price,!making! it!

higher!than!the!other!firms,!most!customers!would!opt!for!other!Chinese!herbal!medicine!shop.!To!

increase!the!pricing!power!and!protect!their!profit!from!their!compe=tors,!Cze!Kong!Medical!Hall!&!

Sundry!strive!to!differen=ate!their!products!by!providing!good!customer!service.!This! resulted! in!

their!customers!developing!abachment!for!their!products.!This! leads!to!their!customers!having!a!

stronger!abachment!and!would!be!harder!for!compe=tors!to!steal!their!customers!away.!!

(b)&Chop&Yan&Tuck&Medical&Hall&

The!nature!of!the!market!for!Chop!Yan!Tuck!Medical!Hall!is!oligopoly!compe==on.!This!business!is!

opera=ng!in!a!market!structure!dominated!by!very!few!Chinese!herbs!seller! in!the!market.!All!of!

these!businesses!are!selling!products!that!are!similar!but!not!iden=cal.!There!are!some!differences!

between! them.! Chop! Yan! Tuck! Medical! Hall! sells! Chinese! herbs! and! has! a! sensei! to! provide!

consulta=on! whereas! this! firm’s! compe=tors! are! selling! herbs,! herbs! &! liquor! and! providing!

consulta=on!respec=vely.!In!this!oligopoly!market,!there!are!strong!barriers!to!entry!for!new!firms.!

Since!there!only!a!small!number!of!firms!in!the!market!and!there!is!minimal!compe==on,!Chop!Yan!

Tuck!Medical!Hall!has!rela=vely!strong!pricing!power.!This!means!that!this!firm!is!able!to!set!high!

prices!and!make!enormous!profits.!Therefore,!Chop!Yan!Tuck!Medical!Hall!is!a!price!maker.!If!this!

firm!were! to! increase! their! price! slightly,!majority! of! their! customers!would! s=ll! purchase! from!

them!because!there!are!only!a!few!of!these!type!of!business!in!the!market.!!


ComparaUve&Analysis&Summary&Table

CompeUUve&Traits Cze&Kong&Medical&Hall&&&Sundry&&

Chop&Yan&Tuck&Medical&Hall&&

1.&Number&of&CompeUtors&

3!within!200!meters 4!within!200!meters

2.&Barrier&to&Entry&(New&Firms)

Weak!barrier!to!entry!

@!Weak!to!some!extend!but!

since!this!is!a!Chinese!herbal!

industry,!the!barrier!to!entry!

is!leaning!towards!the!

strong!side.

Strong!barrier!to!entry!

@!Huge!start@up!capital!

@!Legal!Barriers!!

(Hard!to!obtain!a!license)!

@!Difficulty!in!hiring!experienced!

employees.!

3.&DifferenUated&or&Standardized&Products&

Differen=ated!products!

" Provides!good!

customer!service!

" Convenient!loca=on!

" Toiletries!

Differen=ated!products!

@!Rare!Chinese!herbs!

@!Has!a!Chinese!sensei!to!provide!

consulta=on!through!tradi=onal!pulse!

diagnosis.


4.&Pricing&Power Price!taker!

" Weak!pricing!power!

" The!business!does!

not!have!the!ability!

to!charge!at!a!higher!

price!unreasonably!

than!the!other!firms!

or!else!their!

customers!would!

switch!to!other!

compe=tors.!

" The!compe==on!

among!other!firms!is!

quite!intense.!

" Price!is!followed!

according!to!the!

market!price!that!is!

determined!by!

supply!and!demand.!

Price!maker!

" Strong!pricing!power!

" Few!firms!in!the!market!lead!to!

minimal!compe==on.!

" Able!to!set!at!a!high!price!and!

make!enormous!profit.!

5.&Other&CharacterisUcs

Subs=tute!goods!!

" Modern!medicine!

Subs=tute!goods!!

@!Modern!medicine

6.&Verdict Monopolis=c!Compe==on! Oligopoly!Compe==on!!


RecommendaUons&

A) Cze&Kong&Medical&Hall&and&Sundry&

Overall,!Cze!Kong!Medical!Hall!and!Sundry!has!a!high!variety!of!products!for!both!sundry!and!

herbs.!The!shop!is!located!at!an!area!which!is!considered!as!decent!as!that!are!various!residen=al!

area!around!the!shop!and!the!number!of!customers!is!also!quite!high.!However,!there!are!some!

recommenda=ons!for!the!shop!so!that!the!business!of!Cze!Kong!Medical!Hall!and!Sundry!can!be!

improved.!

1.&InstallaUon&of&AutomaUc&Sliding&Door&

An!automa=c!sliding!door!at!the!entrance!

of!the!shop!should!be!installed!to!ensure!a!

cooler!environment.!This!is!also!make!sure!

that! the! herbs! and! sundry! items! are! in!

good!condi=on.!Not!only!that,!the!hygiene!

of!the!shop!will!be!improved.!!

!

!

2.&More&Manpower&

More! manpower! should! be! employed! in!

the! shop! to! lend! a! hand! in! the!

arrangement!of!products! in!the!shop!and!

to! control! the! stock! in! the! store! so! that!

the!outlook!of!shop!would!be!neater!and!

=dier.!!


There!is!no!proper!door!at!the!entrance!of!the!shop.

There! are! only! three! workers! including! the! owner!

and!his!wife.

3.&More&Cabinets&

More! cabinets! should! be! placed! in! the!

shop! so! that! the! products! will! not! be!

arranged! on! the! floor,! that! is! below! the!

customer’s!eye! level.!Placing! the!products!

o n! t h e! g r o u nd! wou l d! b e! mo re!

inconvenient!for!the!customers.!

!

B) Chop&Yan&Tuck&Medical&Hall&

Overall,!Chop!Yan!Tuck!Medical!Hall!is!considered!as!a!more!tradi=onal!shop.!Its!loca=on!is!

strategic!as!it!is!located!at!the!heart!of!the!city!town!of!Seremban.!As!the!shop!only!sells!herbs,!

there!is!a!wide!variety!of!herbs!sold!in!the!shop.!Hence,!Chop!Yan!Tuck!Medical!Hall!can!be!said!to!

have!the!largest!amount!of!Chinese!herbs!sold!among!all!other!medical!halls!in!that!area.!Apart!

from!that,!there!are!also!some!recommenda=ons!that!can!be!implemented!to!improve!the!

business.!

1.&&Use&of&Modern&Technology&

Digital!balance!and!calculator!can!be!used!instead!of!tradi=onal!weighing!scale!and!abacus!in!the!

shop!so!that!the!measurement!and!calcula=on!process!can!be!done!in!a!shorter!period!of!=me!and!

it!would!be!more!efficient.!


Some!of!the!products!are!place!on!the!floor.

The! owner! of! the! medical! hall! is! using! the!

abacus.

The! workers! are! using! tradi=onal! weighing!

scale.

2.&Policy&of&Uniform&and&Proper&Hygiene&Afre&

Policy! of! uniform! and! proper! hygiene! aore!

should! be! implemented! such! as!wearing!mask,!

bouffant! cap! and! gloves.! With! these,! the!

hygienic! level! will! certainly! be! improved! in! the!

shop.!

!

!

3.&Provide&a&Proper&Room&for&ConsultaUon&

A!proper!room!should!be!provided!for!the!sensei!

when! abending! his! pa=ents! to! increase! the!

privacy!level!of!the!pa=ents.!

&


Improper!wear!and!handling!of!the!herbs.

The!consulta=on! is! taken!place! right! in! front!

of!the!shop.!

Conclusion&

According!to!the!compara=ve!analysis,!Chop!Yan!Tuck!Medical!Hall!in!Seremban!is!more!

commercially! successful! as! compared! to! Cze! Kong!Medical! Hall! and! Sundry! in! the! Cheras,!

Klang! Valley.! Cri=cal! analysis,! jus=fica=ons,! research! and! the! applica=on! of! economic!

principles!have!supported!this!statement.!!

First!of!all,!there!are!more!types!of!herbs!sold!in!Chop!Yan!Tuck!Medical!Hall!than!in!Cze!

Kong! Medical! Hall! and! Sundry.! The! fact! is! that! some! of! the! herbs! sold! in! Chop! Yan! Tuck!

Medical! Hall! are!more! expensive! compared! to! Cze! Kong!Medical! Hall! and! Sundry! because!

those!herbs!are!more!rare.!Even!though!the!business,!Chop!Yan!Tuck!Medical!Hall!is!more!on!

the!tradi=onal!side!in!terms!of!its!outlook!of!its!shop!and!the!method!of!handling!the!herbs,!

this!business!is!more!successful!than!the!more!modern!Cze!Kong!Medical!Hall!and!Sundry.!The!

business’! annual! revenue! figure! of! Chop! Yan! Tuck! Medical! Hall! is! stated! to! be! higher! in!

comparison!to!Cze!Kong!Medical!Hall!and!Sundry.!!

The!strategic! loca=on!of!Chop!Yan!Tuck!Medical!Hall!had!result! in!the! increase!of! the!

amount!of!customers.!Chop!Yan!Tuck!Medical!Hall!is!more!assessable!than!Cze!Kong!Medical!

Hall!as!it!is!located!at!the!city!town!of!Seremban.!On!the!other!hand,!Cze!Kong!Medical!Hall!

that!is!located!at!the!corner!of!the!street!tends!cause!inconvenience!to!customers.!Hence,!the!

approximate!number!of! customers!who! visit! Chop!Yan!Tuck!Medical!Hall! daily! is!way!more!

than!the!customers!who!go!to!Cze!Kong!Medical!Hall!and!Sundry.!There!are!even!are!tourists!

who!visit!Chop!Yan!Tuck!Medical!Hall! to!purchase!Chinese!herbs.!For!Cze!Kong!Medical!Hall!

and! Sundry,! their! customers! are! mostly! residents! staying! nearby.! As! straighporward! as! it!

looks,!more!customers!would!generally!result!in!an!increase!in!revenue.!Hence,!the!amount!of!

profit!generated!for!Chop!Yan!Tuck!Medical!Hall!would!be!higher.!A!high!profit!is!a!good!sign!

for!the!business!economically!and!has!proven!to!be!doing!well.!

Another!reason!why!Chop!Yan!Tuck!Medical!Hall!is!more!commercially!successful!than!

Cze! Kong!Medical! Hall! and! Sundry! is! because! Seremban! has! a! limited! number! of! Chinese!

herbal!firms!around.!Fewer!Chinese!herbal!firms!in!Seremban!led!to!the!firms!to!have!more!

customers.! On! the! other! hand,! Klang! Valley! has! more! Chinese! herbal! firms! available! so!

customers!would!have!a!wider!variety!of!firms!to!choose!from.!


Bibliography&

C.Wiart!(2009).!Medicinal!Plants!From!the!East.!United!Kingdom:!Noongham!University!Press.!

No!author.!(2009).!Malaysian!Herbal!Monograph!Volume!2.!Kuala!Lumpur:!Forest!Research!

Ins=tute!Malaysia.!

Thomas!S.C.Li!(2009).!Chinese!and!Related!North!America!Herbs:!Phytopharmacology!and!

Therapeu=c!Values!Second!Edi=on.!United!Stated:!Taylor!and!Francis!Group.!

W.!Craig!Dodd!Esq.!(1996).!A!Gid!Of!Health:!A!Garden!of!Herbal!Remedies.!Singapore:!New!

Holland!(Publishers)!Ltd.!


Interview&QuesUons&&&Answers&

Brief&DescripUon&of&the&Businesses&c&Cheras&

i) Their&names&

Cze!Kong!Medical!Hall!and!Sundry!

ii) Current&locaUons&

Taman!Midah!

iii) Number&of&branches&and&employees&

No!branches!and!3!employees.!

iv) Main&products&or&services&sold&

Herbs!and!sundry!

v) EsUmated&current&number&of&customers.&&

50!customers!per!day!

vi) When&was&the&business&started?&&

2000!

vii) Who&are&the&founders?&&

Mr.!Liew!Cze!Kong!

viii) What&was&their&moUve(s)&for&starUng&the&business&

To! earn! a! living! in! order! the! support! the! family.! Also,! the!owner!wanted! to! use! its! own!

strength!to!try!to!improve!the!health!of!the!neighbourhood!as!well!as!a!small!contribu=on!

towards!the!society.!


ix) Their&recent&development&&

(i.e.&what&has&the&business&accomplished&or&what&changes&have&occurred&in&the&business&

over&the&past&3&c&5&years).&&&

Their!business!had!become!one!of!the!most!popular!herbal!shop! in!the!neighbourhood!.!

They!had!also!gained!some!regular!customers!whom!constantly!support!them!for!the!past!

15!years.!!For!the!recent!development,!the!shop!had!just!included!computer!system!due!to!

the! establishment! of! GST! by! the! government.! They! had! also! replace! a! new! refrigerator!

with!the!old!one!and!installed!CCTV!control!system.!

ComparaUve&Analysis&of&the&Businesses’&CompeUUve&Traits&

i) Number&of&compeUtors&in&their&respecUve&geographical&markets&

3!

ii) Besides&business&compeUtors,&what&others&challenges&faced&

The! changes! of! price! of! the! herbs! in! the! market.! The! number! and! age! range! of! the!

residents! in! Taman!Midah! is! also! a! challenge.! The! next! one!would! be! the! geographical!

loca=on! of! the! shop.! The! requirement! established! by! the! government! is! another!

challenge.! In! addi=on,! the! quality! and! quan=ty! of! the! products! available! in! the!market!

serves!as!another!challenge.!

iii) Brief& bios& of& each& business’& top& 3& compeUtors& (E.g.& who& are& they?& What& are& their&

products?&etc.)&

1. Eu!Yan!Sang!@!Located!opposite!the!shop,!sells!herbs!and!supplement.!

2. Kim!Loy!Tradi=onal!Medical!Hall!and!Sundry!@!Located!beside!the!shop,!sells!herbs!and!

sundry.!

3. Ban!Soon!Heng!Trading!@!Located!beside!the!shop,!selling!herbs!and!sundry.!


iv) How& do& the& businesses& compete& with& their& compeUtors?& What& strategies& were/are&

employed&(e.g.&pricing,&adverUsing,&product&variety,&etc.)&and&how&successful&are&they?&&

They!always!have!promo=ons!on!certain!types!of!herbs.!They!will!increase!or!decrease!the!

price!of!their!products!according!to!the!market!price!and!also!set!at!lower!price!than!the!

other!shops!located!around!them.!They!will!check!on!their!products!regularly!and!later!will!

package!it.!Also,!they!will!check!the!freshness!of!the!herbs!in!order!to!maintain!the!quality!

of! their! products.!Moreover,! they!will! serve! the! customers!with! a! friendly! aotude! and!

always!remembers!to!put!their!customers!as!their!first!priority!so!that!their!customer!will!

feel!welcomed!whenever! they!go! to! the!shop.!These!strategies!are! indeed!successful!as!

they!are!able!to!maintain!their!good!image!and!ensure!that!the!quality!of!their!product!is!

good.!

v) What&are&the&obstacles&faced&by&new&businesses&who&wish&to&enter&their&markets&today?&

Are&they&easy&or&difficult&to&overcome?&Why?&&

For! them! who! wish! to! enter! their! markets,! they! should! be! physically! and! mentally!

prepared,!as! they!will!have! to!work! for! long!hours.! This! is!because!as! the!owner!of! the!

shop!they!have!to!be!responsible!and!they!must!always!be!in!their!shop!and!monitor!their!

employees.!Besides,!they!will!have!to!learn!and!memorise!the!names!of!the!herbs!and!the!

way! to!use!some!tradi=onal!apparatus.!Some!of! the!methods! include!packing! the!herbs!

using!paper!and! the!way! to!keep!and!clean! the!herbs.!They! should!also!build!up!a!new!

social! circle! where! it! consists! of! the! suppliers! of! the! herbs! and! sundry! as! well! as! the!

professional! who! can! determine! the! quality! of! the! herbs.! Moreover,! they! should! also!

observe! the!market! price! and! the! price! set! by! their! compe=tor.! Hence,! this! business! is!

more!suitable!for!those!who!are!more!experienced!in!the!herbal!market!as!it!can!be!a!very!

difficult!and!dull!task!if!one!is!not!interested.!

vi) What&is&the&nature&of&their&markets&(e.g.&perfectly&compeUUve,&oligopoly,&monopolisUc&

compeUUve)&and&your&jusUficaUons.&

The!nature!of!the!market!for!Cze!Kong!Medical!Hall!&!Sundry!is!monopolis=c!compe==on.!

There!are!a!number!of!businesses!selling!herbs!within!the!area.!Since!there!are!several!of!

these!firms!in!the!market,!the!barriers!to!entry!for!new!firms!are!rela=vely!weak.!Due!to!

having!mul=ple!firms!selling!almost!iden=cal!products,!the!compe==on!level!is!quite!high.!

Cze!Kong!Medical!Hall!&!Sundry!has!weak!pricing!power,!that! is!to!say!that!this!firm!is!a!

price!taker!whereby!the!price!is!affected!by!the!supply!and!demand.!!


APPENDIX&2:&Suggested&List&of&Interview&QuesUons&&&

1) Who&are&your&customers?&&

The!residents!in!the!nearby!neighbourhood!!

2) What&is&the&business’&annual&revenue&figure?&&

About!1.5million!

3) Is& the& business& constantly& facing& strong& compeUUon& from& other& compeUtors?& What&

strategies&have&they&used&to&compete&with&you?&&

Yes.!They!had!hung!lot!of!banners!outside!their!shop!as!a!form!of!adver=sement!to!abract!

their! customer’s! aben=on.! They! also! decrease! the! price! of! their! products! and! provide!

more!variety!of!products! in! their! shop.!Besides,! some!of! them! installed!air@condi=oning!

service!into!the!shop!to!create!a!more!comfortable!ambience.!

4) How&much& capital& is& required& to& start& this& business?&What,& if& any,& specialized& field& of&

knowledge&do&you&need&to&run&this&business?&&

About!60@80!thousands!Ringgit!is!needed!nowadays!to!start!this!business.!A!lot!of!specific!

knowledge!is!required!to!run!this!business.!First!of!all,!one!must!memorise!the!names!of!

the!herbs!and!must!be!familiar!with!the!tradi=onal!way!to!prepare!as!well!as!measure!and!

pack!the!herbs.!Besides,!one!must!also!be!updated!to!the!latest!market!price!and!must!be!

able!to!differen=ate!between!the!good!and!bad!quality!of!the!herbs.!

5) Generally,&do&you&feel&it&is&easy&or&hard&to&enter&this&market?&Why?&&

I!think!it!will!be!easier!if!you!are!very!interested!in!this!market.!This!is!because!you!need!to!

work!for!long!hours!and!you!have!to!manipulate!some!specific!technique!in!this!market.!

6) How&do&you&compete&with&your&compeUtors&i.e.&what&strategies&do&you&employ&to&divert&

customers&away&from&your&compeUtors?&&

I!work!with!a!very!polite,!honest!and!sincere!aotude.!I!will!always!try!my!best!to!makes!

my!customers!feel!comfortable!when!they!walk!into!my!shop.!I!will!set!the!most!valuable!

price!for!the!products!and!always!maintain!the!quality!of!my!products.!I!do!not!do!any!sort!

of!adver=sing.!My!form!of!adver=sement!is!through!words!of!mouth!from!my!customers.!

By! having! this! kind! of! aotude! towards! my! business,! my! customer! can! feel! that! our!

products!are!trustworthy!and!worth!buying.!!


7) How&onen&do&you&release&a&new&product&(this&assumes&the&business&sells&differenUated&

products)?&&

I! will! release! a! new! product! depends! on! the! requirement! of! my! customers.! I! will! also!

constantly! observe! the! trend! in! this! market! to! decide! on! the! products! that! I! should!

release.!!

8) Are&your&pricing&decisions&strongly&affected&by&your&compeUtors?&

Yes.!In!order!to!compete!with!the!other!herbal!shops!I!need!to!survey!on!the!pricing!trend!

in! the! area! nearby! me.! Also,! I! want! to! give! my! customers! the! most! valuable! and! fair!

pricing.!


Brief&DescripUon&of&the&Businesses&c&Seremban&

i) Their&names&&

Chop!Yan!Tuck!Medical!Hall!

ii) Current&locaUons&

9,Jalan!Datuk!Abdul!Rahman.!

iii) Number&of&branches&and&employees&

No!branches!and!11!employees.!

iv) Main&products&or&services&sold&&

Up!to!1000!types!of!Chinese!herbs.!!

v) EsUmated&current&number&of&customers.&&

100!pax!per!day!

vi) When&were&the&businesses&started?&&

In!the!year!1944!

vii) Who&are&the&founders?&&

Mr.Chong!Ngai!Loong’s!(retailer!of!the!shop)!grandfather!

viii) What&was&their&moUve(s)&for&starUng&the&business&

Mr.Chong!Ngai! Loong’s! grandfather!worked! in! Eu! Yan! Sang! before.!He! learnt! a! lot! of!

knowledge! about! Chinese! herbal! shop.!As! such,! he! decided! to! start! his! own!Chinese!

herbs!business!in!order!to!support!the!expenses!of!his!growing!son.!He!also!wanted!to!

introduce!the!high!quality!herbs!to!the!people!in!Seremban.!


ix) Their&recent&development&&

(i.e.! what! has! the! business! accomplished! or! what! changes! have! occurred! in! the!

business!over!the!past!3!@!5!years).!!

Mr.Chong! Ngai! Loong’s! father! had! just! passed! the! business! to! his! brother!Mr.Chong!

Ngai! Soong.! The! new! owner! is! more! outgoing! and! young;! he! had! request! a! license!

pharmacist! to! help! out! in! his! shop.! Hence,! the! shop! became!more! professional! and!

eventually!the!business! improved.!Moreover,!computer!system!is!also!implemented!in!

the!shop!ever!since!GST!started!in!1!April.!!!

ComparaUve&Analysis&of&the&Businesses’&CompeUUve&Traits&&

i) Number&of&compeUtors&in&their&respecUve&geographical&markets&

4!

ii) Besides&business&compeUtors,&what&others&challenges&faced&

A!lot!of!new!rules!from!the!government!were!implemented.!The!government!wanted!all!

of! the!employees! in!herbal! shop! to! go! for! a! specific! course! so! they!are!always!up! to!

date.!Moreover,!herbal!shops!are!also!required!to!sell!their!items!in!a!more!presentable!

package!to!replace!the!tradi=onal!packaging.!Besides,!herbal!shops!are!also!required!to!

improve! their! hygiene! by! ensuring! that! the! employees! in! the! shop! wear! gloves! and!

bouffant!cap!all!=me!and!the!shop!should!be!air@condi=oned!for!hygienic!purposes.!

iii) Brief&bios&of&each&business’&top&3&compeUtors&&

(E.g.!who!are!they?!What!are!their!products?!etc.)!

1. Eu!Yan!Sang!–!Sells!mainly!herbs!of!their!own!produc=on!

2. Cheoon!Lin!@!Sells!herbs!and!liquor!

3. Lifecare! Chinese! Medical! Centre! –! Provides! consulta=on,! prescrip=on! and! sells!

herbs.!


iv) How& do& the& businesses& compete&with& their& compeUtors?&What& strategies&were/are&

employed& (e.g.& pricing,& adverUsing,& product& variety,& etc.)& and& how& successful& are&

they?&&

So! far,! the! business! is! geong!more! successful! compared! to! the! past.! This! is! because!

they! are! selling! beber! grade! of! herbs! that! shows! a! huge! difference! as! compared! to!

herbs!of! second!grade.!Moreover,! they!also!provide! the! customers!with!good! service!

and!make! the! customers! feel!welcomed.! Lastly,! their! strategies! in! adver=sing! do! not!

involve! adver=sement! but! only! from! the! recommenda=on! between! customers! that!

they!believe!is!more!useful!than!self@adver=sing.!!

v) What& are& the& obstacles& faced& by& new& businesses& who&wish& to& enter& their& markets&

today?&Are&they&easy&or&difficult&to&overcome?&Why?&&

The!level!of!difficulty! is!actually!depends!on!the!individual!who!is!going!to!start!a!new!

business!in!this!market.!Firstly,!they!have!to!have!keen!interest!in!Chinese!herbs!as!they!

have!to!spend!a!lot!of!=me!learning!and!memorising!the!names!and!the!characteris=cs!

of!the!herbs.!Next,!they!have!to!be!able!to!tolerate!with!long!working!hours!to!look!ader!

the! shop! and! the! herbs.! It! is! also! tough! to! enter! due! to! the! process! of! obtaining! a!

license.!Every!type!of!Chinese!herbs!requires!its!own!license.!To!start!up!a!new!Chinese!

herbal!medicine,!a!huge!amount!of!capital!is!required.!Moreover,!they!have!to!choose!a!

strategic!loca=on!so!that!their!shop!can!be!easily!accessed!and!no=ced.!Other!than!that,!

family! support! and! luck! are! also! some! criteria! that! is! essen=al! in! order! to! start! a!

successful!business.!!

vi) What&is&the&nature&of&their&markets&

(e.g.& perfectly& compeUUve,& oligopoly,& monopolisUc& compeUUve)& and& your&

jusUficaUons.&&

The!nature!of!the!market!for!Chop!Yan!Tuck!Medical!Hall!is!oligopoly!compe==on.!This!

business!is!opera=ng!in!a!market!structure!dominated!by!very!few!Chinese!herbs!seller!

in! the! market.! All! of! these! businesses! are! selling! products! that! are! similar! but! not!

iden=cal.!In!this!oligopoly!market,!there!are!strong!barriers!to!entry!for!new!firms.!Since!

there! only! a! small! number! of! firms! in! the!market! and! there! is!minimal! compe==on,!

Chop!Yan!Tuck!Medical!Hall!has!rela=vely!strong!pricing!power.!


APPENDIX&2:&Suggested&List&of&Interview&QuesUons&

1) What&are&your&main&products?&&

Wide!range!of!herbs!of!high!quality!!

2) Who&are&your&customers?&

Most!of!our!customers!are!from!genera=on!to!genera=on!star=ng!from!year!1944!!

3) What&is&the&business’&annual&revenue&figure?&&

RM2!million!and!above!

4) Can&you&provide&us&a&brief&history&of&your&business&and&its&most&recent&developments?&

This!business! is! actually! a! family!business.!My!grandfather!was! the!one!who! started! this!

business! as!he!worked! in!Eu!Yan!Seng!before!and!he!acquired!knowledge!about!Chinese!

herbs! during! his!working! period.! Ader! that,! he! decided! to! start! his! own! business,! as! he!

wanted! to! support!his!own! family!as!well! as!him!having! the!eagerness! to! introduce!high!

quality!herbs!to!the!people!in!Seremban.!Upon!his! interest!and!strong!bond!with!Chinese!

herbs,!he!also!wanted! to!contribute! to! the! society!by!providing! the!best! consulta=on! for!

Chinese!herbs!in!Seremban.!Ader!my!grandfather!has!passed!away,!my!brother,!Chong!Ngai!

Soong! took! over! the! business! and! developed! the! shop! into! a! more! technological! and!

implement!more!strategies!in!order!to!complete!with!the!Chinese!herbal!shops!around!us.!

The! most! recent! developments! in! our! shop! include! the! implementa=on! of! computer!

system!and!CCTV!security!system.!

5) Is& the& business& constantly& facing& strong& compeUUon& from& other& compeUtors?& What&

strategies&have&they&used&to&compete&with&you?&&

The!compe==on! in! this!area! is!actually!quite!compe==ve!as! there!are!more!than!4!other!

herbal! shops! around! our! shop! within! 200m.! Some! of! them! adver=se! by! hanging! large!

banners!to!abract!customers’!aben=on!while!some!of!them!will!distribute!brochures!and!

vouchers.!There!are!also!shops!that!are!having!sales!from!=me!to!=me!by!giving!discount!to!

the!customers.!Some!will!choose!to!sell! lower!quality!herbs!so!that!they!can! lower!down!

the!price!and!compete!with!the!other!herbal!shops.!


6) How&much& capital& is& required& to& start& this& business?&What,& if& any,& specialized& field& of&

knowledge&do&you&need&to&run&this&business?&&

Half!a!million.!Knowledge!in!Chinese!herbs.!

7) How&onen&do&you&release&a&new&product?&&

(This&assumes&the&business&sells&differenUated&products)&

We!already!have!more!than!1000!types!of!different!herbs!so!the!new!products!we!released!

are!mostly!ready@made!product!such!as!Panadol!and!sour!plum.!

8) Are&your&pricing&decisions&strongly&affected&by&your&compeUtors?&

Our!pricing!decisions! are! seldom!affected!by!our! compe=tors!but!mostly! affected!by! the!

market!price!and!the!supply!and!demand!in!the!market.!The!herbs!that!can!be!found!easily!

in!the!market!for!instance,!Angelica!Sinensis!!(Dang!Gui)!is!sold!in!a!lower!price.!Oppositely,!

the!herbs!that!are!considered!rare!in!the!market!will!be!sold!in!a!rela=vely!higher!price.!


Appendix&

This! appendix! is! a! compila=on! of! interview! documents! and! photos! of! both! Chinese! herbal!

medicine!halls.! It!also! includes! informa=on!of!their!respec=ve!compe=tors!that!were!recorded!in!

the!process!of!inves=ga=ng,!analyzing!and!comparing!both!of!the!businesses.!

(a)Cze!Kong!Medical!Hall!&!Sundry,!Cheras,!Klang!Valley.!

!


Interior!view!of!the!shop.

Front!view!of!the!shop.

!


A!group!photo!taken!with!Mr.!Liew!ader!the!interview!session.

Founder/Owner!of!Cze!Kong!Medical!Hall!&!Sundry:!Liew!Cze!Kong

Products&&


Sundry!items!are!also!available.Pre@packaged!herbs!are!sold!as!shown!

above!or!according!to!the!amount!

that!the!customers!want.

Drawers!filled!with!Chinese!herbs.!Each!

drawer!is!labeled!with!the!name!of!the!

herb.

Rows!of!herbs!neatly!arranged!on!the!

shelves.

Rare!herbs!are!also!sold!there.Self!packaged!herbs.

(b)&Chop&Yan&Tuck&Medical&Hall&


Close!up!view!of!Chop!Yan!Tuck.

Tons!of!small!drawers!for!the!storage!of!herbs!

and!packaged!products!displayed!to!be!sold.

Interior!view!of!Chop!Yan!Tuck.

Front!view!of!Chop!Yan!Tuck.

s


Working!desk!and!a!cupboard!

consis=ng!of!informa=on!about!

the!various!types!of!Chinese!

herbs.

Mr.!Chong,!a!retailer!in!Chop!Yan!Tuck. A!group!photo!taken!with!Mr.!Chong!and!his!brother!

who!is!the!owner!of!the!shop.

The!wooden!drawers!for!the!placement!of!

Chinese!herbs!create!a!tradi=onal!

atmosphere.!

Products&and&Services&provided&

!


The!workers!are!weighing!the!amount!of!

herbs!that!the!elderly!wants!to!purchase!

using!a!tradi=onal!weighing!scale.

Chop!Yan!Tuck!has!a!‘sensei’!(Chinese!

doctor)!that!provides!consulta=on!and!

would!prescribe!the!herbs!to!the!

pa=ent.!The!method!of!consulta=on!is!

the!tradi=onal!pulse!diagnosis.!

Ader!weighing!the!herbs,!the!herbs!are!

packed!into!a!clear!plas=c!by!using!a!

piece!of!paper!to!act!as!a!funnel.

Commercialized!Chinese!

medicine!products!are!

available!as!well.

Other!herb!sold.White!ginseng!is!one!of!

their!popular!products.

Minutes&of&MeeUng&1&

Apendees:&

Minutes:&

Date: October!21,!2015

Time: [email protected]

Venue: Online!Skype!Discussion

Names&of&Group&Members Tutorial&Group Role

Yeap!Phay!Shian Friday!8.00am Leader

Lee!Yet!Yee Monday!12.00pm N/A

Madeline!Liew!Zhi!Qi Wednesday!2.00pm N/A

Heng!Sy!Hua Monday!12.00pm N/A

Tam!Zhao!Wei! Wednesday!2.00pm N/A

No. AcUvity AcUon&Taken&By Details

1 Introduction Yeap Phay Shian Briefing of the assignment tasks and submission requirements.

2 Research All Members Research on interesting business to focus on.

3 Discussion All Members Discussed on what business to focus on. All members gave opinions and suggestions.

4 Voting Session All Members A few options been given by group members. All members get to vote the most suitable choice of all.

5 Conclusion Yeap Phay Shian Concluded all discussion and decision made. Confirm next meeting session.

6 End All Members Meeting adjourned.



Apendees:&

Minutes:&



Venue: Event!Hall!1,!Taylor’s!University!Library








1 Introduc=on Yeap!Phay!Shian Briefing!on!mee=ng!topics!and!assigned!

works.

2 Research All!Members Research!in!common!interview!ques=ons!

and!how!Tradi=onal!Chinese!Medical!had!

been!conducted.

3 Discussion All!Members • Discussed!on!the!interview!ques=ons.!

Then,!the!final!set!of!interview!

ques=ons!have!been!concluded!

• Decide!on!the!interview!dates!

• Delegate!works!for!the!interviews

4 Making!appointment Madeline!Liew!

Lee!Yet!Yee

Madeline!and!Yet!Yee!made!appointments!

with!the!interviewees!at!on!October!30,!

2015!respec=vely!in!the!adernoon!and!at!

night.

5 Plan!I=nerary All!Members Planed!the!i=nerary!for!the!interviews.

6 Delega=on!of!Work Yeap!Phay!Shian Delegated!different!jobs!to!all!members!

evenly!in!order!to!ensure!smooth!

interview!session.!

7 Conclusion Yeap!Phay!Shian Recap!on!all!discussed!maber.!

8 End All!Members Mee=ng!adjourned.


Table&2.1&Roles&and&DuUes&for&Both&the&Interviews&at&Cheras&and&Seremban&

Table&2.1&IUnerary&for&the&Interview&Session&at&Cheras,&Klang&Valley.&

Group&Members Roles

Yeap!Phay!Shian

• Leader!

• Record!informa=on!

• Interviewer

Lee!Yet!Yee

• Take!photos!

• Video!recorder!

• Interviewer

Madeline!Liew!Zhi!Qi• Interviewer!

• Record!informa=on

Heng!Sy!Hua• Interviewer!

• Take!photos

Tam!Zhao!Wei!

• Interviewer!

• Record!informa=on!

• Take!photos

Time AcUvity

12:30PM Gather!at!Taylor’s!University!and!final!briefing!before!the!

interview.

1:00PM Depart!Taylor’s!University.

1:30PM • Reached!Cze!Kong!Medical!Hall!&!Sundry.!!

• Observed!the!shop’s!surroundings.!

2:00PM Interview!session!with!Mr.!Liew!Cze!Kong,!the!founder!of!Cze!

Kong!Medical!Hall!&!Sundry.

2:45PM • Group!photo!with!Mr.!Liew.!

• Photo!taking!of!the!exterior,!interior!and!products.

3:00PM • Depart!Cze!Kong!Medical!Hall!&!Sundry.


Table&2.1&IUnerary&for&the&Interview&Session&at&Cheras,&Klang&Valley.&

Time AcUvity

7:20PM Gather!at!Lee!Yet!Yee’s!house.

7:30PM Depart!Lee!Yet!Yee’s!house.

7:50PM Reached!KFC!for!the!interview!session.!!

(The!reason!behind!the!choice!for!this!interview!loca=on!is!

because!Chop!Yan!Tuck!Medical!Hall!is!located!nearby!the!night!

market.!This!would!disrupt!the!interview!session!due!to!the!noise!

caused.)

8:00PM Interview!session!with!Mr.!Chong!Ngai!Loong,!the!retailer!of!Chop!

Yan!Tuck!Medical!Hall.

9:00PM Depart!KFC



Apendees:&

Minutes:&

Date: October!30,2015


Venue: Keretapi!Tanah!Melayu!(KTM)








1 Introduc=on Yeap!Phay!Shian A!short!briefing!on!the!assigned!work.

2 Discussion All!Members • Revised!on!the!informa=on!gathered!

• Analyse!and!interpret!the!informa=on!

gathered

3 Research All!Members Further!researches!had!been!conducted!

as!to!support!the!informa=on!gathered.

4 Giving!Sugges=ons All!Members All!members!sound!out!their!

recommenda=ons!to!improve!the!

business!of!Cze!Kong!Medical!Hall

5 Announcement Lee!Yet!Yee There!was!a!change!in!plan!with!the!

interviewee.!The!on@site!observa=on!of!

the!shop!was!postponed!to!the!following!

day!ader!the!interview!session.

6 Conclusion Yeap!Phay!Shian Recap!on!all!discussed!maber.!

7 End All!Members Mee=ng!adjourned.



Apendees:&

Minutes:&



Venue: Lee!Yet!Yee’s!house








1 Introduc=on Yeap!Phay!Shian A!short!briefing!on!the!assigned!work.

2 Discussion All!Members • Revised!on!the!informa=on!gathered!

• Analyse!and!interpret!the!informa=on!

gathered!

• Select!and!edit!the!best!photos!to!be!

inserted!in!the!research!report

3 Research All!Members Further!researches!had!been!conducted!

as!to!support!the!informa=on!gathered.

4 Giving!Sugges=ons All!Members All!members!sound!out!their!

recommenda=ons!to!improve!the!

business!of!Chop!Yan!Tuck!Medical!Hall

5 Delega=on!of!Work Yeap!Phay!Shian Works!including!the!presenta=on!slides,!

research!report!and!the!video!were!

distributed!evenly!to!all!members.

6 Conclusion Yeap!Phay!Shian • Recap!on!all!discussed!maber!

• Confirmed!dates!to!start!work!

7 End All!Members Mee=ng!Adjourned.


References&&

Annie!Wu!(1998@2015).!The!History!of!Chinese!Medicine.!Retrieved!from!website:!!!!!!!!!!

!hbp://www.chinahighlights.com/travelguide/chinese@medicine/history.htm!

Australian!Acupuncture!&!Chinese!Medicine!Associa=on!LTD!(AACMA)!(2015).!Retrieved!from!!!!

website:!hbp://www.acupuncture.org.au/health_services/chinese_herbal_medicine.aspx!

Cze!Kong!Liew,!personal!communica=on,!30!October!2015.!

Jo!Whitehead.!(2011).!What$You$Need$to$Know$About$Strategy.!United!kingdom:!!Capstone!

Publishing!Ltd.!

Ngai!Loong!Chong,!personal!communica=on,!31!October!2015.!

Penelope!Ody.!(2010).!The$Chinese$Medicine$Bible!.!London:!Octopus!Publishing!Group!Ltd!2010.!

Ping@Chung!Leung,!Charlie!Changli!Xue,!&!Yung@Chi!Cheng.!(2003).!!A$Comprehensive$Guide$to$

Chinese$Medicine.!Singapore:!World!Scien=fic!Publishing!Co.!Pte.!Ltd!!

Research!Gate!(2008@2015).!Retrieved!from!website:!hbp://www.researchgate.net/publica=on/

272747903_Tradi=onal_Chinese_Medicine_(TCM)_treatment_in_Malaysia_Preliminary_findings_o

n_Country_of_Origin_and_Image!

Vengedasalm,!D.!&!Madhavan,K.!(2010).!Oligopoly.!Principles!of!Economics.!Oxford!University!

Press.!

William!Koh!(2012).!The!Eu!Yan!Sang!way:!Renewing!a!Century!of!Heritage.!Singapore:!Cengage!

Learning!Asia!Pte!Ltd.!


http://www.chinahighlights.com/travelguide/chinese-medicine/history.htm

http://www.acupuncture.org.au/health_services/chinese_herbal_medicine.aspx

http://www.researchgate.net/publication/272747903_Traditional_Chinese_Medicine_(TCM)_treatment_in_Malaysia_Preliminary_findings_on_Country_of_Origin_and_Image

Education

Integrated Research Report