CCK retail stores was facing increase risks from existing and new competitors who offer similar products , example: chicken wings , prawn , hot dog ,egg and others .Competitors of CCK are also compete on the basis of pricing.To reduce this problem, we are continuously looking at means to improve our competitive edge. The management of CCK not only focuses on pricing of products but also in evolving business models which improve the customers’ shopping experience.
Competition among poultry and meat producers can still affect CCK earnings despite its strong position in the East Malaysian market.
An outbreak of livestock diseases may drastically affect consumer confidence, and thus the business.
There is a small exposure of foreign currency risk from the export of products overseas, more notably in USD and Indonesia Rupiah.
The poultry and meat processing business is a competitive arena. In Sarawak, CCK is faced with competitions from West Malaysian players such as QL Bhd and Lay Hong Bhd, and in addition to other smaller local players. Lay Hong has a notable retail presence in Sabah through G Mart. However, CCK is leveraging on its geographical strength by focusing its business in the Sarawak market where it is already a household name. As the Sarawak market has not been fully tapped, especially in the rural areas, there is still potential for growth.