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Strategy for Mak’s Noodle to Enter Malaysia Market

1.0 Analysis of the product and main competitors

1.1 Mak’s Noodles restaurant

Mak’s Noodle is a renowned Cantonese restaurant based in Hong Kong which specializes in wonton noodles (Mak’s Noodles, 2018). The brand is reputable for its springy, thin plump wontons and noodles filled with Chunky sprawn in flavor soup. It dates back to 1920 when it was first established in Guangzhou, China but later moved its headquarters to Hong Kong during World War II. Mak’s noodles products are distinct from the uniqueness of the Cantonese traditional eateries and have found an attractive market in Asian countries.

1.2 Product layer analysis of Mak’s Noodles

1.2.1 Core benefits

Mak’s Noodles have been branded as the “best wanton noodle in Hong Kong” as the brand ensures following the exact recipe handed down for generations which were based on traditional health nutrition (Mak’s Noodles, 2018). Wanton noodles served in the restaurant are an attractive option for healthy eating since they are low in saturated fat and cholesterol and high in energy and fiber. However, they have high sodium content, especially in the soup. As obesity becomes a health concern, Wanton noodles provide a medically proven diet for weight loss due to their low calories content.

1.2.2 Actual product

Wonton noodles are served in a tiny bowl since they were originally meant as a snack rather than a full dish. The noodles don’t become mushy because of the small serving size. The noodle texture and flavor are springy (Mak’s Noodles, 2018). Mak’s noodles take pleasure in the fact that each wonton contains marinated prawns. Mak’s family has a secret recipe that has been passed down through three generations. The wonton noodles are lush and delicate, and the prawns within are cooked just long enough to provide a pleasant bite. The noodles are ample and cooked to perfection (not too firm, not too soft). The soup is thick, flavourful, and greasy (in a good way) (Mak’s Noodles, 2018).

1.2.3 Augmented products

Although the serving in Mak’s Noodles is quite modest, it works well as a mid-afternoon snack. The hospitality offered in the restaurant reflects international standards. The complimentary tea that arrived with the noodles is a lovely surprise to all guests. The restaurant also provides updates and promotions to customers on digital platforms. Lastly, Mak’s Noodle is currently available in Honestbee delivery services hence allowing customers to order and receive their wontons timely (Mak’s Noodles, 2018).

1.3 Value proposition of Mak’s Wanton noodles

Mak’s Wanton Noodles are uniquely prepared using a more than 100 years formula passed over generations which maximizes health benefits, taste, and attractiveness coupled with the modest serving provided in the Cantonese restaurant.

1.4 Five-forces analysis

Threats to new entry

  • There are limited threats to other firms entering the industry.
  • Many firms and restaurants focus on modern recipes and formulas for wonton noodles production.
  • Mak’s recipe is a secret formula that immunizes the firm against possible competitors.
Competitive rivalry

  •  There is high competition in the market Mak’s noodles operates.
  •  However, the brand enjoys great cushioning from the traditional aspect of its products recipe which distinguishes it from the rivals’.
Supplier power

  •  There are few suppliers of the raw material for Mak’s noodle recipe hence there is limited supplier bargaining for the brand.
Buyers bargaining power

  • There is low bargaining power for the buyers of Mak’s Noodles.
Threats of substitutes

  • There are many types of wonton noodles in Hong Kong and Asian countries hence there are cheaply available substitutes for the highly-priced Mak’s Noodles.

2.0 Business analysis of Malaysia


  • The estimated GDP of Malaysia in 2020 is 381.523 billion US dollars, ranking it as 33rd globally (Fadhil et al., 2015).
  • The country’s economy is enormously growing due to excessive and volatile exports including gas, oil, and petroleum products.
  • The lower unemployment ratio in the country is approximately 3.2 in 2019.

  • The constitutional monarchy system, bureaucracy, and local administration systems of governance used in Malaysia are in complete agreement making the government very stable (Siddiquee and Mohamed, 2017).
  • Corruption is highly reported in the country attaining position 61 out of 180 countries in 2018.

  • Malaysia embraces cultural diversity with Indian, Chinese, and indigenous Malay people living together (Noor and Leong, 2013).
  • The country appraises social status with a desire for luxury clothes, jewelry, and the latest models of electronics and automobiles.
  • The lower tax improved health, and education makes the living style high.
Technological factors

  • Angkasa is a Malaysian national space agency that provides space education and experiment programs hence developing a satellite named “RazakSAT” (Ismail, 2022).
  • Malaysian astronauts work in the international space agency.
  • Malaysian people embrace high-tech companies such as Google, Intel, amazon etc with internet connectivity of more than 70%.

2.1 Opportunities for entering the nation

Malaysia as described above have immense financial strength. This implies that the purchasing capacity of most people is high. Mak’s Noodle’s which are highly-priced will find an attractive market in Malaysia due to the financial stability of the country. Secondly, the country enjoys great peace and harmony which provides a conducive environment for the development and growth of the brand. Government stability, as well as social harmony, is primary for the company to thrive. The technological aspects of the country will aid the brand in creating more awareness because most people are connected to the internet.

2.2 Challenges for entering the nation

Malaysia is ranked 61 out of 180 most corrupt countries (Beh, 2019). The term “sweetener” as referred in Malaysia is a bribe. Its common in all political social and economic circles and an incoming brand will be challenged by various personnel calling for bribes. Secondly, the country registers one of the least unemployment in the world. This will mean that there is no available labor for the brand to harness.

3.0 A review of possible entry strategies

3.1 Direct exporting market entry

Direct exporting, the most prevalent kind of entrance approach, is an option for the brand (Ali et al., 2015). The corporation ships or sells items in the Malaysian market as part of its exporting strategy. This might be accomplished through the company’s existing overseas market outlets. Indirect exporting, on the other hand, entails the exporting business selling its products to another customer (importer), who then sells them to other international markets (Wölfl 2014, p. 73). Exporting can also take the form of online marketing, which involves conducting business through the internet. The brand may sell its products to the Malaysian market over the internet if it continued to manufacture in its native economy.

3.2 Licensing and franchising

Mak’s Noodles creates a license agreement with a foreign company in Malaysia, allowing that company to control specific intellectual property. A domestic corporation agrees to pay a royalty or a proportion of overall sales returns in exchange for these rights. The rights may differ according to the type of agreement, the patent item or brand, design features, or trademarks. The fundamental benefit of licensing is that when Mak’s Noodles enters or foreign market, it accrues the least entry expenses. There is a dispersion of business risks, and a multinational investor might increase its portfolio by leveraging the success characteristics of a local firm (Root, 2018).

4.0 Recommended entry strategy

It recommended that Mak’s Noodle uses licensing and franchising entry strategy to enter Malaysia. The fundamental benefit of licensing is that it allows a foreign company to join a new or foreign market with the lowest possible entry expenses. There is a dispersion of business risks, and a multinational company might increase its portfolio by leveraging the success characteristics of a local firm (Root, 2018). The majority of company operations are standardized in this manner of entry. Franchising has been referred to as specialized licensing by several worldwide marketing experts. This form is mostly utilized by service businesses that want to make long-term, binding agreements with one another (Gillespie and Hennessey, 2011). This form of entrance has the benefit of allowing for fast or exponential growth at cheap expenses. Franchised enterprises, according to international trade experts, have some control over the activities of domestic enterprises (Root, 2018).

Because it is little or very no investment, the licensor’s risk is modest. A licensee/franchisee is a person who lives in the same nation as the government, limiting government intrusion. As a result, there are no roadblocks in the way of business. Because he is a local person, the licensee has a better awareness of the market and relationships, ensuring that marketing objectives are met. No other foreign entity, except Licensee/Franchise, is permitted to use such trademarks and licenses.


Ali, A., Krapfel Jr, R., & LaBahn, D. (2015). Product innovativeness and entry strategy: impact on cycle time and break‐even time. Journal of Product Innovation Management: An International Publication of the Product Development & Management Association, 12(1), 54-69.

Beh, L. (2019). Public ethics and corruption in Malaysia. In Public Administration in Southeast Asia (pp. 171-191). Routledge.

Fadhil, M. A., & Almsafir, M. K. (2015). The role of FDI inflows in economic growth in Malaysia (time series: 1975-2010). Procedia Economics and Finance23, 1558-1566.

Gillespie, K., & Hennessey, H. D 2011, Global marketing. Australia, Cengage Learning, South-Western.

Green, D. H., Barclay, D. W., & Ryans, A. B. (1995). Entry strategy and long-term performance: Conceptualization and empirical examination. Journal of marketing, 59(4), 1-16.

Ismail, N. A. (2022). Space Sector Development in Malaysia. In ASEAN Space Programs (pp. 43-55). Springer, Singapore.

Mak’s Noodles. (2018, June 20). Sassy Hong Kong.

Noor, N. M., & Leong, C. H. (2013). Multiculturalism in Malaysia and Singapore: contesting models. International Journal of Intercultural Relations37(6), 714-726.

Root, F. R 2018, Entry strategies for international markets, Jossey-Bass, San Francisco.

Siddiquee, N. A., & Mohamed, M. Z. (2017). The paradox of public sector reforms in Malaysia: A good governance perspective. Public Administration Quarterly, 284-312.

Wölfl, A. 2014, ‘Productivity growth in services industries: is there a role for measurement?’ International Productivity Monitor, vol. 8, pp. 66-80.


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