Halal logistics in Malaysia: a SWOT analysis

Abstract

Purpose – The purpose of this strengths or weaknesses, and its external opportunities or threats (SWOT) analysis study on Halal logistics industry in Malaysia is to identify SWOT in the Halal logistics environment and to uncover strategies to leverage on the strengths and opportunities and rectifying the weaknesses as well as overcoming the threats. Design/methodology/approach – This study comprises two methods: literature review and interviews. Extensive literature reviews were obtained from leading databases and the articles recorded matches or related with the keywords. In addition, the respondents from the interviews consist of middle- and top-level managers with reputable knowledge, expertise and experience in the Logistics and Halal industry. After the literature was reviewed and information was transcribed from the interviews, reduction techniques were used to group and summarize the variables into the four SWOT categories. Findings – The SWOT categories, consisting of SWOT, are generated from the literature reviews and supported by the respondents’ views and vice versa. Examples of SWOT analyses done are as follows: strength (strong government support), weakness (inconsistent Halal definition), opportunity (Muslims’ population growth) and threat (no uniformity on Halal standards). Research limitations/implications – The SWOT analysis done for this study only demonstrates the internal and external environments and not the assumption that they are certain to be correct, as they contain every imaginable matter in relation to Halal logistics. Plus, the analysis done does not show how to achieve competitive advantage, merely as a guideline and the SWOT analysis done may be outdated as the environments are constantly changing. Practical implications – The study hopes to contribute in future studies and act as a guide for the Halal logistics players to have better understanding in their business environment. Originality/value – This study is the first of its kind, to incorporate SWOT and Halal logistics. Hence, this study will add in more value to the existing academic research done on SWOT analysis and broadening the Halal and logistics business understanding, not only in Malaysia but globally as well.