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http://cdr.uum.edu.my/jspui/handle/123456789/205| Title: | NKNY GROUP BUSINESS DISTRIBUTION MODEL: CHANGE OR NOT TO CHANGE? |
| Authors: | Zainuddin, Nizamuddin Md. Ashraf Ali, Abdul Kafi Deraman, Norita Mohd Yusoff, Yuhainis |
| Keywords: | Distribution channel;decision-making;business model;halal frozen food |
| Issue Date: | 2025 |
| Abstract: | NKNY Group, a publicly listed company since 1985, has actively participated in the halal F&B industry. The company has undergone continuous brand evolution to adapt to changing industry trends and market demands. NKNY operates two subsidiaries, KG Sdn Bhd and KV Sdn Bhd, specializing in manufacturing high-quality halal food products like burgers, nuggets, sausages, meatballs, and a wider range of frozen food items. These subsidiaries currently offer 33 different products. The company boasts a 36,350 square meter factory capable of producing approximately 30 tons of frozen food daily. Additionally, NKNY possesses the largest cold storage capacity in the northern region (4,000 metric tons) and ranks among the top five nationwide. NKNY aspires to become the market leader in the frozen food industry, emphasizing volume share, quality, innovation, service, and profitability. Currently, the company's distribution channels primarily reach distributors, wholesalers, hypermarkets/supermarkets, international key accounts, Original Equipment Manufacturer (OEMs), and cash-and-carry stores (e.g., Tesco, Giant, AEON Big, Mydin). Additionally, NKNY supplies products to OEM brands like Sushi King and Deliwest. Their primary focus lies in serving wholesalers, retailers, food and beverage businesses, and OEMs. The COVID-19 pandemic significantly accelerated the growth of e-commerce across various industries. Recognizing this shift, NKNY's General Manager, Tuan Haji Ahmad, is actively considering transitioning or enhancing the company's current B2B model to explore B2C options or other avenues to capitalize on the booming e-commerce market. With the growing importance of e-commerce and anticipating a surge in demand, NKNY's General Manager faces a crucial decision. The company needs to explore alternative business models and enhance its distribution channels to boost revenue, prevent inventory pileup, and avoid future distribution limitations. This necessitates a calculated risk assessment to determine whether to maintain and improve the existing model, adopt a new model entirely, or implement a combination of both approaches. |
| URI: | http://cdr.uum.edu.my/jspui/handle/123456789/205 |
| Payment Link: | http://epay.uum.edu.my/go.php?billcode=CDRCASE&productid=TC250-1 |
| Appears in Collections: | Cases in CDR |
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