1.

Company Situation

i) Introduction and Brief Company Overview

As we probably are aware, we have well-established and biggest Malaysian-claimed

organization that includes in the matter of retailing and wholesaling which is MYDIN Mohamed

Holding Berhad and known as MYDIN. MYDIN is a popular brand grocery store in wholesales

Malaysia. It was worked as a holding organization which is a chain of mini markets, general

store, hypermarket, franchise stores, emporium, bazaar and 24-hours accommodation shops

through all Malaysia. There are more than 200 outlets operating currently and being the best

homegrown company in distributing the Halal goods and services. The organization was

established in 1940 and it's situated in Subang Jaya, Malaysia. It has store areas in

Terengganu, Perak, Selangor, Kelantan, WP Putrajaya, WP Kuala Lumpur, Pahang, Melaka,

Pulau Pinang, Negeri Sembilan, Johor, and Kedah, Malaysia.

In addition, it also offered households products, soft-line products that comprise fabric

and textile products, hard-line products that includes hardware, electrical, stationery, porcelain

and toys, dairy products, and also drinks and beverages. MYDIN was starting the first operation

in Kelantan, where the company known for the competitive and affordable priced offers among

budget-conscious consumers. MYDIN also was considered as a supplier of goods to the middle

and lower class customers.

In MYDIN, they are particularly fond of the Win-Win principle, and seek to create an

environment in which their worker can fully improve their skills and contributing to the

companys performance actively. Besides that, the consumers will be able to feel the 1

Malaysias atmosphere when they entered the MYDIN hypermarket. This is because of MYDIN

was attracting customers from the other ethnic groups as well.

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 Last but not least, MYDIN business concept was different compared to Walmart in the

United States and Mohamed Mustaffa in Singapore because MYDINs business was focused to

wholesalers. All the MYDIN items packaged to meet the needs of wholesalers and retailers. At

the same time, MYDIN is a local dealer.

ii) Corporate Strategic Issue

The issue that faced by MYDIN is they got losses because of the weaker currency in

Malaysia. It also was supported by MYDIN Mohamed Holding Bhd, the main factor for their

losses is the weaker Ringgit against the US dollar not about the implementation of government

policies or the goods and services tax (GST). This is because the goods and services tax (GST)

had never been a reason for the MYDINs losses because this tax was only replacing the

previous sales and services tax.

Besides that, most of MYDINs products were imported and causing the MYDIN

hypermarkets nationwide had suffered losses due to the weakening Ringgit. This is because,

MYDIN need to pay more for the products it orders without increasing the price for the

customers. In addition, MYDIN is hard to increase the product price because they need to

through the junk process in the Anti-Profiteering Act, which is the MYDIN required to state the

detailed reasons with regard to why they had to increase the price for any product they have

sold. Thus, it was difficult to pass the costs to consumers because the weakening Ringgit had

already resulted in reduced the purchasing power in turn affecting the groups business.

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 2. Strategic Posture

i) Strategic History of the Company

Contrasted with his dad's period, Dato' Ameer Ali daringly opened the third branch which

did not concentrate on the Malay people group just, not at all like what his dad early

organizations in Kota Bharu and Kuala Terengganu. In this unique market condition, MYDIN has

turned into the store of decision profoundly inserted in the client's heart, generally because of

the esteem for-cash items. He began his business in a leased 600 square feet working in Jalan

Masjid India, and later purchasing the building. The choice to purchase the building was

severely contradicted by his dad. Being an amazingly cheap man by nature, Mr. MYDIN

Mohamed did not need his child to settle on a monetarily unsound choice, as the building that

his child needed to buy would neglect to draw in clients because of its non-key area. In any

case, Dato' Ameer Ali was resolved and exceptionally resolved to swim against the tide, and he

told his dad, that he will influence them to walk to this site so that they will come and shop in my

store. Furthermore, that he did without a doubt; clients walked a significant separation simply

to shop in his store. In 1998, as Malaysia was made up for lost time in the turmoil of monetary

emergency, MYDIN profited hugely and turned into the decision of numerous clients as they

turned out to be more cost cognizant because of the expanded costs of buyer items around

then. With the business slogan "why pay more", MYDIN effectively situated itself in the

commercial center. Thinking back upon the difficulties and obstacles that he had experienced

while overseeing MYDIN, he submissively conceded that it was difficult to get financing for the

hypermarket since the brokers were hesitant to fund MYDIN Mohamed Holding hypermarket.

With extraordinary certainty, he opened MYDIN discount hypermarket in USJ 1, Subang

Jaya on 19 August 2006, alongside its nearest business equal, Giant. To the astonishment of

many individuals including the investors, this hypermarket was making RM 20 million for a long

time while its nearby rival just figured out how to round up around MYR 8 million. The result of

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his strong choice to broaden extremely paid off, and that is the thing that earned him the regard

of workers, companions and adversaries alike. With the advancement of its first hypermarket,

the financiers saw the achievement and increased more certainty on Dato' Ameer Ali's

administration style. Thusly, MYDIN's scan for financers were finished, as there are numerous

financial specialists who are regularly eager to purchase an offer of MYDIN, since huge

numbers of them have the certainty to put resources into the organization.

Recognizing the great reaction that his privately-run company had gotten before from the

nationals of Terengganu in the 1980s, Dato' Ameer again settled on another noteworthy choice

to open the second MYDIN hypermarket in Kuala Terengganu on January 2007, not as much as

a year after the opening of its first hypermart in Subang Jaya. As what he had estimated before

making the brilliant move, the hypermarket got a mind-boggling reaction from the neighborhood

clients from that point forward. Alluding to MYDIN's hypermarket's prosperity, Dato' Ameer Ali

credits the general accomplishment to the uniqueness of its business arrange; an organization

that is essentially (if not by any means) concentrated on the value structure. Customers today

are exceptionally touchy to value vacillations and they need items that have an incentive for

cash. This successful promoting procedure mirrors his capability in being a market driven

pioneer who comprehends purchasers' needs and needs, and obliges to fulfill them utilizing

MYDIN's key showcasing approach.

ii) Company Mission or Strategic Vision

MYDINs vision is to be the world's leading distributor of competitive "Halal" goods and

services. When consumer, especially Malay people, they are more attracted to Halal goods

and services because it is Shariah compliance. It is also to avoid consumer from prohibited

stuffs such as usury, gambling and uncertainty. This vision will make people more comfortable

4
and benefit with for shopping in the MYDIN since there will be zero curiosity about the products

and services.

Apart from that, MYDINs mission is to be the leading local wholesale & retails company

by providing the best value for money for the best assortment of goods, by providing service to

our customers and by striving for excellence. We also aim to inspire more Malaysians to open

outlets with our own proven success formula. From this mission, we can analyze that the

MYDINs mission have the components which are customer, product or services, market,

philosophy and profitability. Those are the components that highlighted in the mission. The

components mission is reflecting MYDIN in how they give services and sell goods towards the

consumer.

iii) Current Business-Level Strategy

According to Dato Ameer, todays leader must be willing to change and adapt to the

current needs and requirements. In this sense, Dato Ameer strongly believes in making change

as effective as possible. For him, business must change with time. With a specific end goal to

transform, he sets aside opportunity to tune in to the perspectives of his staffs. In connection to

the valuing of merchandise, they know better about which things are not making any benefits.

Knowing the client is the way to MYDIN's prosperity, as the business offers an exhibiting variety

of items to take into account the varying needs. As a market-driven pioneer, he effectively

applies showcasing logic in his everyday business exercises. His promoting allure can be

obviously seen from his amazing correspondence and open connection (PR) abilities while

engaging guests, providers, and clients from a huge number of foundations.

Furthermore, one can see the solid participation and joint effort among the divisions and

this is a sign of MYDIN's powerful inner showcasing procedure among the workers from various

units. Thus, with the help of his representatives, this rationality is effectively changed and

5
implanted in the authoritative every day working society. Dato' Ameer is exceptionally proficient

at conveying his competency and capacity in promoting, which is exhibited through his

overseeing encounters. To Dato' Ameer, MYDIN knows its clients extremely well and

concentrate on the lower and center pay gatherings.

Customization and adaptability in offering stock exists in MYDIN. For him, his adage is

everyone can purchase at MYDIN, and his business slogan called "why pay all the more" viably

situated and tied down MYDIN's business systems. With reference to MYDIN's buyer, Dato'

Ameer stressed on the significance of choosing the correct target advertise. With a specific end

goal to take into account distinctive market fragments such as lower to privileged shopper,

diverse client gatherings, distinctive ethnic and nationalities, he had thought of an arrangement

of various business configurations, for example, the hypermarkets, emporiums, accommodation

stores and smaller than expected markets, that ended up being to a great degree fruitful. Every

business design is modified and concentrates on fulfilling an unmistakable fragment of clients all

through Malaysia.

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 3. Environmental Analysis

i) Porters Five Forces

a) Rivalry among competing firm

The importance of this force is the number of competitors and their ability to threaten a

company. The larger the number of competitors, along with the number of equivalent products

and services they offer, dictates the power of a company. Suppliers and buyers seek out a

company's competition if they are unable to receive a suitable deal. While the details into price,

switching cost, customer loyalty, promotions and distribution channel. Along with other major

hypermarkets such as Tesco and Carrefour participated in the TUKAR program under the

Economic Transformation Program. The company is responsible for training the shops and

providing assistance after transforming as mini marts along with Tesco.

b) Bargaining power of supplier

His force addresses how easily suppliers can drive up the price of goods and services.

It is affected by the number of suppliers of key aspects of a good or service, how unique these

aspects are and how much it would cost a company to switch from one supplier to another. The

fewer number of supplier and the more a company depends upon a supplier, the more power a

supplier holds which is by raw materials, packaging plastic or tin, machine and designer.

MYDIN's then ventured into the high-end retailing with the opening of the first SAM's

Groceria outlet at the Gurney Paragon in Penang MYDIN Mohamed Holdings Sdn Bhd sealed

its partnership with Global Halal Data Pool (GHDP) to improve the efficiency of its supply chain.

By integrating their supply chain with GHDP, MYDIN aims to enhance the quality, selection and

standard adherence of local brands throughout all its stores. Through GHDP, MYDIN will be

connected directly to not only accredited halal suppliers but real-time company and product

information.

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 c) Bargaining power of customer
This specifically deals with the ability customers have to drive prices down. It is

affected by how many buyers, or customers, a company has, how significant each customer is

and how much it would cost a customer to switch from one company to another. The smaller

and more powerful a client base, the more power it holds. The one who is working at their

Customer Service department in MYDIN is basically; the Customer Service department is on

operation side. And need to handle customers that have some issue related to the item they

bought and others.

d) Potential of New Entrants into an Industry

A company's power is also affected by the force of new entrants into its market. The

less money and time it costs for a competitor to enter a company's market and be an effective

competitor, the more a company's position may be significantly weakened. The arrival of

competitors such as Tesco, Carrefour, Giant and many more to dominate the west coast where

the life style competency is higher was a big threat. Though the east coast market favours

MYDIN, the other end was against it and MYDIN had to plan out new methods to standing

alongside the big guns of wholesales industry.

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 e) Threat of Substitutes

Competitor substitutions that can be used in place of a company's products or services

pose a threat. For example, if customers rely on a company to provide a tool or service that can

be substituted with another tool or service or by performing the task manually and this

substitution is fairly easy and of low cost, a company's power can be weakened. MYDIN

purchases in bulk to enjoy lower prices. Sources of merchandise vary both locally and abroad

which indicates unlimited choice of supplier. Emergence as a retail hypermarket has posed stiff

competition to local major players like Carrefour, Giant and Tesco.

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 4. Internal Analysis

i) Value, Rareness, Imitability and Organization (VRIO) Analysis

1. The Product

Valuable

In MYDIN, they give the halal item. They generally underlined about their item and the

nature of the item. MYDIN truly take nurture the Halal item, where there need client which is

Muslim have no uncertainty and faltering to purchase their basic supplies and their needs in

MYDIN. MYDIN have an alternate idea with other hypermarket like in high caliber and the lower

value which is reasonable with the nation. In the meantime, MYDIN likewise deal with the

picture and client connection. It offers an incentive to client to tie them wind up noticeably

steadfast client and which parallel to target to expand the quantity of client.

Rare

In MYDIN, they give the quality item and at the most reduced value contrasted with their

rivals like Tesco. The MYDIN's trademark "why pay more". MYDIN additionally utilize a value

roof idea where a value roof is a legislature forced value control, or breaking point, on how high

a cost is charge from condition that could make wares restrictively costly.

Imitability

MYDIN not have imitability this is on the grounds that the contenders likewise offer a

similar item. In the meantime, the item that gives by MYDIN is anything but difficult to duplicate.

MYDIN just create the basic item like, pieces, fun fries, bites et cetera, these item are anything

but difficult to duplicate by the contenders.

Organization

In MYDIN they have a strong organization support, because In MYDIN, they have a solid

relationship among manager and the staff. The creation staffs in an association resemble a

family foundation that has originated from the family's basic or favor.

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 2. Customer Service

Valuable

MYDIN really take care of their customers. So, they always find the ways to make their

customers always satisfied with their service by provide the customers service to make

customers easy to get information about the placement of the goods and so on. Hence, they

also take care of their employee, MYDIN will give the preparation program to create more

productive worker and can give more profit to the organization.

Rare

In the MYDIN, they do not have any rare in term of customer services. This is because,

the concept of hypermarket almost same. At the hypermarket, they will have one counter of

customer service, so, customers can go there to get the information.

Imitability

All hypermarkets always use the same concept in customer service. Customer service is

measured by scale starting from bad customer service to excellent customer service. As for

MYDIN, they focus on their staff appearance, way of speech and very good quality service. By

experience, customers can redeem prizes if they buy more and MYDIN can sustain it customer

loyalty when customers experience excellent customer service while redeeming. The staffs are

also very helpful to their customers. In conclusion, their customer service can be imitated but it

hard to practice and sustain.

Organization

By offering a variety of options and continually changing their type of hypermarket.

MYDIN is taking advantages of this capability. With a lot of options, most people can find

something they like and people who like to try new hypermarket frequently can easily do so with

MYDIN.

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ii) Organizational Structure and Culture Analysis

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 Cultural analysis tells us about the culture that they practice in a company. In MYDIN

they have a strong relationship among employer and the staff. The creation staff in an

organization is like a family establishment that has come from the family's simple or fancy. In

MYDIN culture, interactions among staff and management can produce a close family

relationship and always cooperate to do their work daily. The MYDIN management confident

with their activities in the branch, such as Yassin recital ceremony monthly, Iftar in Ramadan,

staff Birthday Celebration, sport between branches, Lunch Joint Staff of the Department, and a

meeting between the staff at the branch every Saturday to bridge and strengthen the family

relationship among staff. The changes taking place on the day begins with a sense of

compassion, concern and friendship to highlight our dreams in this world. Everything can be

achieved if everyone plays their part.

In the meantime, in MYDIN, they generally stressed about the cooperation. Like we

expressed some time recently, everything can be accomplish if everybody their part. Working

confidence without modesty and cooperation culture and don't separate between each different

has figured out how to whip the mansion between staff from various societies and nations.

Collaboration between all of cleaners, salespersons, providers, customers, outside clients,

investors, Board of Directors and each of the 8,500 representatives of MYDIN will dependably

make MYDIN a nearby example of overcoming adversity. The pith of achievement lies in the

quality of assurance, a solid family foundation, memory and correspondence between singular

every day to have the capacity to fortify the association and nations like Malaysia.

Presently, MYDIN is a discount celebrated brand grocery store in Malaysia. As we

entered the MYDIN hypermarket, we will have the capacity to feel the environment of 1

Malaysia. MYDIN even considered a provider of products to clients from the center and lower

classes, their clients likewise comprises of the illuminators like the Minister and the Royal

Family. MYDIN offers an extensive variety of items with the best esteem. MYDIN clients not

restricted to the Malays or Indians but rather MYDIN is building 1 Malaysia. They pull in clients

13
of other ethnic gatherings too. Everyone needs an aggressive cost. Regardless of whether

clients are shopping since advancement offered amid the opening of another branch or their

MYDIN individual care contrast and contenders, all clients will be excited with the costs offered,

the assortment of merchandise and items sold in grocery stores are privately delivered.

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 5. Strategic Direction and Action Plans

i) SWOT Analysis

a) Strength

Cheap price

MYDIN is well-known for selling its product at wholesale price (40% of its business is

wholesale). As compared to its rival, (Giant and Tesco) MYDIN is a favourite place for shopping

especially in period of economic down turn. This proves that as MYDIN grow organically, they

gain strength in volume, thus can sell cheaper as compared to its rivals.

Strong brand

A strong brand name is a major strength of MYDIN. This gives MYDIN the capacity to

charge higher costs for their items in light of the fact that shoppers put extra esteem in the

"Brand Name" has a critical effect, so an analyst ought to put more weight into it.

b) Weaknesses

Slow decision making

Taking a decision gradually expands business dangers and decreases benefits for

MYDIN, in light of the fact that they are in charge of the strength of the business "Powerless

decision will have a long haul negative effect on this entity, which subtracts from the entitys

quality. This announcement will have a fleeting negative effect on this entity, which subtracts

from its esteem. "Weak Management" is a troublesome subjective component to succeed, so

the venture will need to invest a great deal of time attempting to beat this issue.

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 c) Opportunity

New Market

New markets allow MYDIN to expand their business and diversify their portfolio of

products and services. New Markets will have a long-term positive impact on the entity, which

adds to its value. This statement will have a short-term positive impact on this entity, which adds

to its value. New Markets is a difficult qualitative factor to defend, so competing institutions will

have an easy time overcoming it. New Markets offer MYDIN new opportunities to expand the

business and increase sales. This qualitative factor will lead to a decrease in costs.

d) Threats

Substitute product

The availability of substitute products hurts MYDINs ability to raise prices, because

customers can easily switch to another product or service. "Substitute Products of MYDIN" has

a significant impact, so an analyst should put more weight into it. Substitute Products - MYDIN

will have a long-term negative impact on this entity, which subtracts from the entity's value. This

statement will have a short-term negative impact on this entity, which subtracts from its value.

This qualitative factor will lead to an increase in costs. Substitute Products - MYDIN is a difficult

qualitative factor to overcome, so the investment will have to spend a lot of time trying to

overcome this issue.

Intense competition

Intense competition from Tesco and Giant are the most significant competitors can lower

MYDINs profits, because competitors can entice consumers away with superior products.

Intense Competition has a significant impact, so an analyst should put more weight into it.

Intense Competition will have a long-term negative impact on this entity, which subtracts from

the entity's value.

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 ii) Key Strategic Issue

The difficulties in business world these days in some cases can raise question on an

organization's maintainability and furthermore its future improvement. In this way MYDIN has

shaped and executed a few techniques to address its future difficulties. However those efforts

ought to not simply stop there but rather MYDIN likewise need to continue inspecting its

methodology execution to ensure the targets are accomplished and assess whether any new

procedure is should have been actualized. These are urgent strides to keep up MYDIN business

manageability and furthermore its intensity among other organization in a similar industry.

1. Low cost business strategy

MYDIN is proudly promoting MYDIN as business that is born in Malaysia and still

Malaysia. It provides low price with acceptable quality products to customers. Meanwhile, more

foreign owned hypermarkets and superstores are having a strong foundation of selling in

Malaysia. They grab the entire customer through providing foreign branded product. It becomes

a great challenge to Malaysian company such as MYDIN to compete with them. MYDIN use

low price with acceptable quality to attract lower a medium income group in Malaysia. Lower

and medium income group are willing to purchase at lower in price and high quality.

2. Online Marketing Strategy (e-commerce)

MYDIN has less publicity among the potential customers because it only allocate a small

portion of cost for advertisement which advertisement in the media only available during certain

months of the year. In the Malaysian market, not only Malaysia companies but foreign

companies also compete to grab customer. Less advertisement will affect MYDIN consumers to

move to other competitors who also provide the same or similar products. As a customer, they

need more consent from supplier just like sending those flyers or pamphlet. It will make them

remember the company and attract them to com for MYDIN. A more aggressive marketing

17
strategy will allowed them to overcome the issue of less publicity and market recognition among

their consumers, which is crucial to compete with foreign competitors in Malaysia such as

Carrefour and Tesco.

3. Aggressive Geographic Placement Threatens Competitors

MYDIN outlets initially opened in less created states where rivalry was near nil and when

costs were to a great degree low. As of now, they put themselves in territories that are available

to property holders and dealers, such as in little private towns and additionally the congested

Kuala Lumpur. Some of their stores are set in more forceful positions than others. Their

emporiums in the Klang Valley provide food for the majority of individuals who work in the city

and need to do snappy, simple and moderate shopping their lunch breaks. Subang Jaya

occupants, Saiful and Husna, visit the MYDIN hypermarket twice or, then again thrice a month

for staple goods and infant equipment. Since their price comparisons, they have never visited

Giant, which sits right next to MYDIN or Carrefour which is only 15 minutes away because of the

strong slogan of theirs why pay more. The variety of areas speaks to the mass item range and

target market that MYDIN have worked towards.

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 6. Conclusion

In the conclusion, we can conclude that MYDIN has implemented huge expansion and

organic growth of its company. MYDIN try to gain their market share by becoming more

competitive toward its rival. In becoming so, a transformation throughout the organization is

done. Based on the marketing planning carried out, MYDIN is currently on the right direction

towards its corporate objectives. MYDIN develop strategic marketing mix to successfully market

their product. However, there is some areas that should be improved and focus on. In terms of

product, MYDIN can try to attract non-Muslim customers by having a promotion or creating an

image of MYDIN as a place for anyone.

Besides that, MYDIN has wide channel of distribution. However, MYDIN should also

consider dealing with diseconomies of scales. One of the choices is by introducing measures to

remove productive inefficiencies. MYDIN might count the effectiveness of each of the business

format. The marketing strategies indicate that MYDIN can gain higher market share from its

competitive advantage in promotion and price.

In positioning their product, MYDIN had done it well through their USP, slogan and CSR

played. MYDIN manage to give clear perception of the business to public. Hence, MYDIN can

gain more customers in the future. In operation management and human resources, MYDIN try

to centralize their management to hinder business runs at loss and to generate efficiencies.

MYDIN decision is to cooperate with Microsoft Corp. that is a right choice to place MYDIN at top

amongst other key players.

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 In the year 1997-1998 was a period where the world underwent economic crisis and at

that moment, the government decided not to defer it by taking up financial aids, leaving us to

face inflation for the future betterment. Most products price had to be increased as sources

were scarce and for wholesalers who try to sell things cheap, it would have been a terrible

moment trying to make profit. Government policies often, government policies tend to change

much to the disagreement of business prospects such as MYDIN fluctuating exchange and

interest rate, various schemes and so on would have been quite troublesome. The arrival of

competitors is to the arrival of competitors such as Tesco, Carrefour, Giant and so on. This is to

dominate the west coast where the life style competency is higher was a big threat Though the

east coast market favors MYDIN, the other end was against it and MYDIN had to plan out new

methods to standing alongside the big guns of wholesales industry.

So, the recommendation that we can suggest to MYDIN is be more aggressive in

promoting their stores. MYDIN should improve the way the promote as used to promoting their

stores with the materials of their competitor using the corresponding billboard and purchase

similar ads in it at the same time hen the need arose. In addition, MYDIN also needs to provide

MYDINs business format especially focusing on price structure. This is because it is understood

that customers are sensitive to price fluctuations and they ant products that have the value of

money. This is also because of the uncertain economic condition of the country can also cause

the price of uncertain items to cause customers to become more sensitive to price fluctuations.

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