OSIM International Ltd was believed a planetary leader in healthy life style merchandises. The company was originally founded by Ron Sim in Singapore in 1980 ( OSIM Ltd. , 2010 ) . During that clip OSIM was under the name of R Sim Trading, an electrical and family contraption company ( OSIM Ltd. , 2010 ) . Using their little start-up capital, the company engages with the publicity of family merchandises such as knife sharpeners, knife and nomadic apparels drying rods. Apparently, in 1989, the company listed with the name “ Health Check and Care ” , and subsequently on shifted their chief focal point to healthy lifestyle merchandises. The clip following this created great development for the company, and it manages to bring forth mercantile establishments in Indonesia and Malaysia ( AsiaPulse News, 2002 ) .
The company ‘s vision was to go the planetary leader in healthy life manner merchandises whereas their mission was to dispute the spirit of their clients. The end of the company was to convey the healthy life style to their consumers ( Business Times-Malaysia, 2003 and New Straits Times, 2003 ) .
Fiscal Standing[ 1 ]
The profitableness ratios ( Daroca, & A ; Nourayi, 1996 ) in Appendix, the OSIM International Ltd ‘s 2009 grosss grew by 1 % from 62 % in 2008 to 63 % in 2009. This along with an addition in selling, general and administrative costs has contributed to a decrease in net income from a addition of -21 % in 2008 to a addition of 5 % in 2009. From the record of OSIM ‘s balance sheet ( see Appendix ) , the company really suffers from net income diminution due to the consequence of planetary recession ( Offers Style: New OSIM Store Now Open, 2004 ) .
Figure 1. OSIM ‘s Net income and Employee turnover
Beginning: Osim International Ltd. , 2009
As seen in Figure 1, the 2007 and 2009 public presentation is expressive compared in 2008. From these consequences, we can divert that OSIM was non executing good in 2008 as compared to their expressive 2007 and 2009. Despite of some downswings in 2008 due to the planetary concern crisis, the twelvemonth 2010 shows interesting tendency. From the gathered information, it is expected that in 2010 both the gross and net income of OSIM will be invariably traveling upward ( See Appendix for complete inside informations ) .
OSIM ‘s PESTLE Analysis
Political Conditions – political influences include authorities stableness, revenue enhancement policy, foreign trade ordinances and societal public assistance policies ( Davies, & A ; Lam, 2001 ) . The political state of affairs of Singapore is really stable now or even in the knowing hereafter, all of these are provided by its stable and high visibleness jurisprudence ( CIA Worldfact 2010 ) . This will guarantee OSIM and other foreign concerns that the political status of Singapore will assist them to hold a stable operation in country. Actually, the corruption-free authorities, first-class political status and extremely developed and competent substructure of Singapore have caught the attending of investings from more than 7,000 transnational corporations from the United States, Japan, and Europe ( Transparency International, 2009 ) .
Economics- Singapore is an attractive market for medical place attention engineering shapers and the newest tendencies. The gap of OSIM and the growing of medical place attention engineerings is back uping the demand for wellness services in Singapore. OSIM does non worry that the statute law could badly put back their most effectual selling ( New Straits Times, 2003 ) . Actually, Singapore is a extremely developed and successful free-market economic system. As of 2009 Economic Indicators, the CPI or the consumer monetary value index of Singapore is 100 with Annual Inflation Rate of 0.6 ( CIA Worldfact, 2010 ) . Singapore has besides 3 % ( 2009 est. ) unemployment rate with the GDP of $ 235.7 billion ( 2009 est. ) ( CIA Worldfact, 2010 ) . Actually, Singapore enjoys an outstandingly unfastened and corruption-free background, stable monetary values, and a per capita GDP higher than that of most developed states. The economic system depends to a great extent on exports, peculiarly in consumer electronics, information engineering merchandises, pharmaceuticals, and on a turning fiscal services sector ( CIA Worldfact, 2010 ) . Real GDP growing averaged 6.8 % between 2004 and 2008, but contracted 2.1 % in 2009 as a consequence of the planetary fiscal crisis ( CIA Worldfact, 2010 ) . As seen, there are batch of foreign concerns found in about all sectors of the economic system of Singapore. Basically, more than two-thirds of fabricating part and direct export gross revenues are provided by foreign concern, although there are services sectors that remain ruled by government-linked concerns ( CIA Worldfact, 2010 ) .
Social cultural – In footings of societal facet, OSIM is rather in advantage in Singapore sing that the criterions of life of people in finishs served by OSIM is good and most of them have the capacity to pay for their place health care engineering demands. However, OSIM still needs to see the gustatory sensations and life styles of people particularly, their willingness to purchase technology-based place attention merchandises ( New Straits Times, 2004 ) since Singaporean consumers could prefer traditional medical specialty or Chinese doctor instead than high tech equipment. But because of the coming of new engineerings in any scene, this is a good timing for OSIM to catch the chance ( Barton, Newell, & A ; Wilson, 2002 ) . The nature of its work force is besides portion of external environment of OSIM whereas the Singaporeans are able to get by with the alterations implemented in OSIM.
Technological – Today, e-business has become an built-in portion of operations in any concern industry, with ultimate aims of non merely accomplishing cost economy but besides bring forthing extra gross ( Hormozi, Hostetler, & A ; Middleton, 2003 ) . Beyond to heighten their current merchandise line, their farther investing should be focus on bettering and integrating appropriate new engineering. In Singapore, OSIM implemented and ambitious to go Asia ‘s prima Home Health-care merchandises maker and distributer and the company is determined to supply greater easiness and convenience for its clients and concern partners-enhancing efficiency and economic benefits, every bit good as making new chances for farther concern growing ( New Straits Times, 2004 ) .
Legal – As with any other concern industry of the universe, there are regulations and ordinances that restrict or support the facilitation of the concern in the Home Health-care merchandises market in the countries where OSIM operates ( New Straits Times, 2004 ) .
Environmental – There are presently no major environmental issues faced by the OSIM in Singapore sing that Home Health-care merchandises are non merely good for people but besides to our environment ( New Straits Times, 2004 ) .
OSIM ‘s SWOT Analysis
With regard to the given information in the company web site, the undermentioned presentation will demo the SWOT analysis of OSIM. Actually, SWOT analysis can supply a model for placing and analysing strengths, failings, chances, and menace ( Feist, Heely, Lu, & A ; Nersesian, 1999 ) .
Adapted from: hypertext transfer protocol: //marketingteacher.com/lesson-store/lesson-swot.html
From the SWOT presented the TOWS matrix for OSIM ‘s operation in Singapore is made.
( O )
( T )
1. Enhance and spread out the market of its Internet Business
2. Growth of the company ‘s subordinates.
3. Increased client trueness.
4. International consumer range through the usage of e-commerce or cyberspace selling
1. Emergence of extremely competitory company.
2. Economic downswing.
3. Increasing monetary values of cardinal inputs.
( S )
Concentrating on cyberspace selling attack to heighten internet market.
Supplying high quality content to derive client trueness and good client relationship
Strong repute and resources of OSIM to pull industrial expertness which can better clients ‘ trust in sing its Internet channel.
Consideration of joint venture and sustainable amalgamation and acquisition to better and spread out market portfolio in other parts of the Earth.
Enhancing place health care merchandises and services to run into the demand of the mark market.
1. Good Customer relationship
2. Diversified merchandises and services offered to different clients in the international contexts
Internal Weaknesses ( W )
Pull offing fiscal resource efficaciously to understate failings
see joint venture and other investing to international market to heighten client range
Using strategic direction construction to derive stockholders and stakeholders ‘ trusts
Investing in information engineering substructure
Enhancing trade name trueness though client satisfaction.
1. Inability to pull off funding beginnings
2. Limited entree to international markets.
Adopted from: hypertext transfer protocol: //www.mindtools.com/pages/article/newSTR_89.htm
Porter ‘s Five Forces of OSIM
A Five-Force theoretical account ( Ali, 1993 ) was conducted in the context of the planetary place wellness attention industry. Despite being a market leader, OSIM is non yet resting on its awards of success, but alternatively, continuously introducing and developing their company in order to keep what it has managed to accomplish up to this clip. The undermentioned identifies the five forces of OSIM:
Industry Competitors- In the planetary concern industry, regulative and technological alterations are the chief accelerators, doing entrenched competitory constructions disused and mandating the development of new merchandises, new procedures, new schemes, and new public policies toward the industry under analysis ( Leuz, Pfaff, & A ; Hopwood, 2004 ) . Fiscal Centres, in vigorous competition with each other, hold undergone farther regulative alteration in their attempts to capture a greater portion of international trade in fiscal services, even as common attempts at the regional and planetary degree have tried to back up safety and soundness and a moderately flat competitory playing field ( Pike, & A ; Neale, 1999 ) . Basically, there are legion place wellness attention participants in the industry, included in the list is OSIM, who strive for market leading in all their concern facets. As such, the degree of industry competition is really stiff and really aggressive.
Potential Entrants- Natural barriers to entry in the planetary place wellness attention industry include the demand for capital investing, human resources, and engineering and the importance of economic systems of graduated table. It besides includes the function of undertaking costs avoided by a close relationship between the seller and its client, which in bend is related to the turning away of timeserving behavior by either party.
Buyers – Home health-care merchandises have a long history — a history rich in merchandise diverseness, international range, and, above all, uninterrupted alteration and version. These competitory alterations have forced versions, and in general have improved the degree and efficiency offer to clients, thereby increasing transactional volume. Coupled with these, the clients have become informed refering home-health attention merchandises that OSIM-like companies offer.
Suppliers- The providers to this industry are chiefly the suppliers of engineering and stuffs in place health-care houses use in the behavior of their concerns. There is an tremendous assortment of new ‘hard ‘ and ‘soft ‘ engineerings at work within the said industry. Hard engineerings include progresss in telecommunications, computing machines, analytics, package tools, and picture communications, which are enabling participants to hold better information at lower cost ; to incorporate this information with thought, communicating, and analysis ; and, eventually, to utilize the ensuing cognition along with other engineerings to administer services to clients more expeditiously, efficaciously, and economically.
Substitutes -There is a high degree of replacements for the healthy and lifestyle merchandises industry, evidenced by the legion Numberss of major participants in the planetary market. The cost to reassign to another beauty house is besides comparatively low, so the permutation rate is reasonably high.
Grand Strategy Matrix
Adapted from: hypertext transfer protocol: //www.slideshare.net/suresh.singh/grand-strategy-presentation-805769
In footings of expansive distinction scheme of the company, OSIM belong to the market in which the growing was slow. However, the company was the taking concern in this industry that defines their strong competitory place.
In order to put OSIM as a leader in Home Healthcare Products, there should be a alleged distinction scheme that clearly identifies why OSIM is different from other trade names. The distinction scheme of OSIM was based on their:
Wide experience in place wellness attention market – as they have been in the concern for about 42 old ages now, their managers can see their experience in operating venture as strength ( OSIM Ltd. , 2010 ) .
Reasonable monetary value offerings of merchandises and services- since they able to maintain their operating expenses low, this allows them to hold better control of their monetary values. This is considered strength because of course, people would look for a reasonably-priced topographic point to remain in that every bit do non give service and merchandise quality ( OSIM Ltd. , 2010 ) .
Already has developed a good repute for value for money – since they have been runing for great figure of old ages, they already have built a name for themselves, pulling a figure of loyal clients along the manner ( OSIM Ltd. , 2010 ) .
Good industry skills – the managers of different divisions of OSIM are natural for the concern that they ventured into, both being outgoing and friendly, the most of import public relation accomplishments that clients look for ( OSIM Ltd. , 2010 ) .
The Boston Consulting Group Approach ( BCG Matrix )
There are 9 of import concern units for the OSIM, which are grouped harmonizing to the metropolis or state that their operation is located: Singapore, China, Hong Kong, Indonesia, Malaysia, Taiwan, Canada, UAE and USA.
Figure 1 BCG Matrix
Adapted from: hypertext transfer protocol: //www.netmba.com/strategy/matrix/bcg/
Cash Cow – a concern unit that has a big market portion in a mature and decelerate turning industry. Therefore, it requires a small investing and generates hard currency that can be used in other concern units ( QuickMBA 2007 ) . Malaysia is the lone concern unit that was included in the said class. This is because OSIM is considered as one of the most outstanding and celebrated place health-care merchandises distributer. Above all, one of the most of import facets to be considered is the figure of rivals in the state.
Star – a concern unit that has a big market portion in a fast growth industry. This concern unit generates hard currency, nevertheless, due to the rapid growing of the market, they require investing in order maintain the lead of a specific company ( QuickMBA 2007 ) . Hong Kong and Singapore are the two concern units which included in the said class. OSIM is considered as one of the first place wellness attention merchandises maker and distributer in the universe, peculiarly in Hong Kong and Singapore. Because of that, OSIM had been able to derive competitory advantage, in footings of image towards the Chinese, Singaporeans and foreign visitants. However, because of the turning economic system of the said metropoliss, it had resulted to the turning figure of participants in the industry, therefore pushed OSIM Hong Kong and Singapore to concentrate on different strategic program and execution that will keep their competitory advantage.
Question Mark or Problem Child – a concern unit that has a little market portion in a high growing market. A job kid requires resources in order to turn market portion, nevertheless, the fact if they will be successful and become stars is non certain ( QuickMBA 2007 ) . Canada, China and Indonesia are the three concern units that were included in the said class. In China, OSIM has a little portion in the market because of the extended competition, chiefly from the local participants in the country. The said state of affairs is the same in Canada. On the other manus, the OSIM was included in the said class because ; the hotel was one of the freshly developed hotels of the group.
Dog – a concern unit that has a little market portion in a mature industry. UAE, Taiwan and USA are three of concern units that belong to the said class. The ground behind the said analysis is because of the fact that UAE, Taiwan and USA are considered as three of the most outstanding metropoliss in the universe. Therefore, there are different immense companies that have already started their operations in at that place. Although it is of import to see that a Canis familiaris may non necessitate significant dramatis personae, it is connected to the capital that could be better be deployed elsewhere, nevertheless in the instance of the OSIM UAE, Taiwan and USA, it is considered as strategic intent of the group in order to present their trade name in the West and some parts of Asia.
Competitive Profile Matrix ( CPM )
Critical Success Factors
Adapted from: hypertext transfer protocol: //www.soopertutorials.com/business/strategic-management/1031-competitive-profile-matrix-harleyhonda-and-yamaha.html
With respects to competitory profile matrix, OSIM surpasses their top rivals OMRON and Sanyo. Actually, OSIM leads the triumph in footings of market portion and monetary value fight. The said cardinal factors are OSIM ‘s border against their rivals sing that their primary markets are located in Singapore, Hong Kong and presently no company poses a important menace to them as a major rival ( Osim International Ltd. 2009 ) . The company believed that they have the have a competitory border over their rivals in their primary markets as their extended distribution web of mercantile establishments is dedicated to home health-care merchandises. As portion of the concern development of the company, they presently exercise the full control over their point-of-sales web and dictate to their distribution concatenation ‘how ‘ to sell and non merely ‘what ‘ to sell ( Osim International Ltd. 2009 ) . Furthermore, OSIM besides control their supply concatenation, from the design of the merchandises up to the distribution and selling of the merchandises. In general, the company considers Sanyo and Omron as their rivals.
Overall Recommendation for Future Development
For the success and future development of OSIM, it is recommended that internal status must be considered. Basically, the most of import to see was the human factor as it is the bosom that ‘s drive the company. Having the right civilization and people to make contributing environment, and be lead by strong airy leaders and title-holder direction that capable to pull off its people and procedure. The external status on the other manus, as shown in the PESTLE analysis must be besides considered. With strong and stable external environment will lend for the demand to alter strategic option. Furthermore, the full support from our Group and re-alignment with our other Hub is of import without it it ‘s impossible to accomplish the vision and mission. In footings of fiscal facet all strategic option should affect fiscal investing that in term will convey cost benefit and growing. Particularly in its market development by acquisition potency BPO that is more desirable and can convey in capital and value to OSIM. Apparently, in order to get by with the alteration the organisation construction besides need to realine and alter. Particularly in its organic growing, where holding the right type of people and civilization is the key to success. It construction direction is of import to put to death the strategic option. Furthermore, external market tendency is more into engineering with faster and dependable system. With high velocity connectivity the market had been more competing and broaden it market widely. As seen each strategic option has really ain hazard but with austere control and better hazard direction can extenuate any possible hazard and minimise the impact.
For continues success of the company, OSIM must besides see alteration direction that will be the possible barrier since OSIM is still in it comfort zone. By making an organizational development and larning it can place the hazard and get the better of the barrier of alteration.
OSIM is passionate with client importance and makes every attempt to be an “ all-weather umbrella ” to its clients, by sing diverse schemes for changing state of affairss. It had to ramify out in order to compare gross and outgo, cut down hazard and remain profitable, with an equal importance in its ability to expect alteration. The concern of OSIM has begun a scheme of major enlargement and growing with one clear aim, which is to set up themselves as one of the universe ‘s top distributer of Home Health attention merchandises, and these schemes are based around a doctrine of organic growing and a passage towards going a client-oriented concern.
With this item, the concern must travel on to happen advanced package plans and associate efficaciously to other companies that produce these package plans to go updated with the latest betterment in the World Wide Web. The concern must economically and expeditiously bring forth a good connexion with their patronage and stockholders, to endlessly run. OSIM must invariably gestate and put to death good undertakings to be able to put tendencies in the industry. Apart from developing concern schemes, the concern have to concentrate on edifice employee and client associations, in harmoniousness to strategic direction constructs, for it is necessary to set up and concentrate on the demands of the patronage, as patronages are the motivation for being alive in the concern.
In the terminal, concerns engaged so much in engineering has its portion of good and bad impacts, socially, economically and even environmentally. In add-on, it has to be noted that retailing of place wellness attention merchandises is non one industry but many. Hence, the accomplishment of sustainable particular purpose concern or its continual development for the corporate benefits of the universe, may therefore depend on a alteration in scheme and planning of the industry in order to place common land more easy, and to work farther returns without giving the 1 that lays the aureate egg, in mode of speech production. All said, future research may hold to concentrate on participatory planning affecting concern, authoritiess, host communities and candidates with a greater position to common land.
Evaluation of Learning
In this undertaking, I learned I batch of things when it comes to strategic direction and managing a concern. I learned that to prolong the development of a certain concern, they should non merely on a regular basis assess the value of their portfolio of its concern but besides the overall concern patterns and motion in the planetary market. They need to be positioned on aggressive chances, whether geographically or by market section through taking to put in concerns with long-run tail-wind profiles.
In reflecting OSIM ‘s instance, there are legion concern schemes that can be use in order to keep concern advancement and development. All these attempts are conducted to guarantee that the public assistance of the concern organisation is preserved along with purposes and ends toward sustainable organisational success and development. The fact remains that there are ever unexpected every bit good as unintended hazard environments that can non be controlled by the members of the direction executives and staff of concern organisations. As such it is of import to see the module, benefits every bit good as advantages of implementing and using strategic direction, tools and techniques. At the degree and planetary jeopardies present in the current concern market environments, it is wise to guarantee that the image and overall wellbeing of the concern organisation is invariably protected. These are possible through strategic usage and application of company policies from which the company will profit.
I besides learned in this undertaking that the concern procedure and pattern in footings of concern direction schemes clearly indicated the importance of direction in debaring and wholly preventing detrimental concern pandemonium that economic systems may convey to concern organisations. In the instance of OSIM, it is apparent that strategic direction are extremely influential in the preparation of concern schemes. It was taken into history that any concern and fiscal enterprise that will be implemented by concern organisations should be assessed and evaluated utilizing the bing company policies that are greatly influenced by the precautional direction.
The consequences of the analysis carried out on public presentation, fiscal and selling indicated really important effects on concern sustainability, even amidst the menaces of unrest ( Riahi-Belkaoui, 1998 ) . Therefore, we could reason that the concern schemes such fiscal and selling could still be expected to better concern sustainability faster than norm.
The schemes of OSIM focal point more on the direction and entree of information instead the creative activity of irrelevant services and merchandises. For this ground, OSIM has developed a alone set of steering rules – simpleness, cost-efficiency and effectivity. Entire committedness to these rules makes the merchandises of OSIM really user-friendly to its clients. OSIM was able to accomplish a wide market leading through assorted acquisition trades over the old ages even there is a stiff competition in the market. The schemes of OSIM are focused chiefly on driving the growing of its place wellness attention merchandises and services and bettering the company ‘s fiscal public presentation. These inventions have besides helped procure important acquisitions and partnerships. And more significantly, these inventions have led to the release of the potencies of the company ‘s employees, therefore constructing a quality performance- based civilization.
On the other manus, OSIM ‘s schemes in the place wellness attention and engineering industry changed for the better at the start of the new millenary and began prosecuting merchandises distinction. True plenty, the differentiated place wellness attention merchandises of OSIM were able to fulfill the demands of clients through a sustainable competitory advantage. This besides justified that the bargaining power of their client is high while the dainty of their replacement and new entrant is low because of their extended attempts in keeping the quality of their merchandises. Furthermore, this allowed OSIM to desensitise the monetary values of their merchandises and alternatively focused on the values that generated non merely a relatively higher monetary value but besides a better border since these things could assist to avoid concern ruin.