Tender bidding failure: the case of OTIS Elevator (M) Sdn Bhd / Nurul Aini Norazman

According to Otis Final Report 2013, Malaysia Gross Domestic Product has been growing at a 5.6% since 3 years and Kuala Lumpur accounts for over 50% of the construction projects in Malaysia with focus on commercial and residential projects. This situation gives opportunity for OTIS Elevator (M) Sdn Bhd to win for more projects in future. However, recently OTIS had lost over a numbers of project lead to lowering their market coverage. This study will find out what are the factors that leads to OTIS bidding failure and which factor is most dominant. Another objective is to find out the recommendation on how to overcome this problem. Interview and observation method was used to find the information supported with documents from OTIS itself. Five variables were found out but at the end only four factors lead to this issue. The most dominant factor is quite difficult to overcome thus researcher suggestion most on discounting and services elements. As going more details, this study found out a negative relationship between findings from interview and researcher observation. Researcher also has successfully met all her research objectives.