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Much has been written about Proton lately. It seems that the national car industry, as a whole, is at a crossroads. Falling sales, thin margins and increased competition from Korean carmakers are the problems of the year for Proton.

The key to Proton's future success will be its ability to adapt to changing business environments. With oil prices at its highest level in decades, sooner or later public opinion of a car as a means of transportation would change. Most car companies have already changed their marketing strategies in the face of competition from Korea by giving deep discounts, attractive financing and forming alliances and merging with another.

All these efforts are just to retain market share. Why is this so? Simple, because consumers prefer global brands when buying products/goods that need technical back-up, plus they demand reliability. The automobile market is moving towards an oligopoly.

I like the idea of Proton-Volkswagen tie-up. Proton would gain access to Volkswagen's marketing network worldwide. This would ensure Proton's survival in the near future. The other choice is to continue with high tariffs for foreign cars to protect Proton and other local carmakers. Anyone who visited India in the 1980s and early 1990s would tell you that Indian cars were from the 1950s.

But if that is not palatable to the Proton board and its shareholders (after all, any tie-up like that would have to be approved by a majority of shareholders), I can offer a marketing idea that might work for Proton.

If we visit Dell website, we can buy a computer online and tailor it to our own specifications; bigger monitor, smaller hard drive, more memory and add a few accessories. Well, what if we can buy a car that way?

Proton could offer three or four models based on one platform, then offer these cars for sale online and let buyers choose their specifications, for example, paint colour, sedan or station wagon, manual or power windows, etc.

Then buyers can add up the prices or they can buy the recommended package and choose to pay cash or arrange financing that suits them. Don't forget to tell the buyers their expected delivery date and ask where they would like their new car to be delivered to (I think Proton could appoint a logistics companies to do the delivery).

Without doubt, the entire Proton supply chain management would have to be managed online. Savings from low inventory and the cutting out middlemen could be passed on to buyers in the form of lower prices.

Cars are fast becoming like a commodity - one car is not much different than another. These days, when people buy a car, they expect to use it for a set number of years and then get rid of it.

How I wish I could buy my Mitsubishi brake light lenses just like I bought my computer component, off the Internet.


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