THE COMPETITIVENESS ANALYSIS OF EDIBLE BIRD NEST INDUSTRY IN MALAYSIA: APPLYING PORTER'S FIVE FORCE

Abstract

The demand for EBN is continuous to growth and about 70 percent of world demand still cannot be fulfilled. Unfortunately, Malaysia only contributes 20 percent from world demand. The aims for this industry are to contribute about RM5 billion to Malaysian agricultural export and to achieve at least 40 percent of world demand. As being one of the most demanded EBN and being in the competition for leadership in world bird nest market, it can be specified that new market entrants and investments are important to fulfil the aims of government to this industry and for the growth of EBN industry. Thus, the objectives of this paper are to analysing the current competition condition of EBN industry in Malaysia and its opportunities for new entrants. This study revealed that the need of a huge capital and knowledge to conduct this business is essential and must come together. There is relatively low threat of substitution if the business premise is a shop lot. Despite the existence of buyer power in price negotiations, swiftlet house owners too could influence the process and assure themselves of higher markups when they organise a tender process with the help of the rancher’s association. Threat of rivalry is low especially with the setup of the rancher’s association to help each member who faced problems.