Driving Transformation in the Malaysian Palm Oil Industry and Supply Chain: A SWOT-Based Strategic Plan for Collaboration and Sustainability
Keywords:Sustainability, Palm Oil Supply chain, SWOT-QSPM technique, IFE and EFE Matrix.
In recent times, the palm oil industry has faced a growing number of obstacles, encompassing negative public perception, environmental apprehensions, and stringent regulatory measures. The industry's sustainability has been jeopardised due to a combination of factors, including trade barriers, limited collaboration, and hindered market access. In order to effectively tackle these urgent concerns, the present study proposes a compelling strategic blueprint. The SWOT analysis of the Malaysian palm oil supply chain was conducted using qualitative analysis techniques to identify its strengths, weaknesses, opportunities, and threats. Afterwards, a comprehensive analysis of various strategies was conducted using the SWOT-Quantitative Strategic Planning Matrix (QSPM). The results revealed that the industry possesses advantageous conditions and a well-functioning supply chain, which can be considered a notable strength. However, it also faces significant weaknesses in terms of its environmental impact and sustainability challenges. The research conducted identified the promotion of certified sustainable palm oil as the most significant opportunity to address the increasing global demands. Additionally, the study highlighted those stricter regulations, which restrict market access, pose the primary threat to the palm oil industry. Furthermore, a comprehensive assessment of both internal and external factors has underscored the significance of diversity and competitive strategies. The QSPM identified the prioritisation of activating pre-existing infrastructure as the primary focus. This study makes a valuable contribution to the academic field by offering a comprehensive analysis and proposing a plan for enhancing the palm oil supply chain in light of adverse perceptions, advocacy efforts, and trade restrictions. Through strategic navigation of these challenges, businesses have the ability to unlock the full potential of the industry and establish a foundation for long-term and sustainable success.