OSIM Company Essay

OSIM the rise up establish Asia wellnessy aliveness elan brand, originated from capital of Singapore. OSIM was founded by Dr Ron Sim Chye Hock in November 1980. Initially derive from R Sim Trading which deal mainly with house appliance. Dr Ron Sim Chye Hock later founded OSIM and eventually interchanges his focus to creating healthy life style products since he felt a great market potential in home business organisation products in Asia. Dr Ron Sim Chye Hock brought together different equipment manufacturers and introduces OSIM which so receives signifi give the axet growth to the extent of establishing multiple outlets Asia (straitstime). Having the motto Inspiring c areer OSIM caller-up has a significant exits of outlets all over the sphere (osim)Situational Analysis on Micro and Macro FactorsIn the IT and Health advised era, companies are trying to find opportunities to stay ahead of opposite contest companies. Companies induct to examine and evaluate their environ mental forces and take necessaryapproaches in order to stay competitive. Micro FactorsMicroenvironments are factors closely related to company operations and directly impact the client experience. OSIM has some(prenominal) factors that affect her greatly. A counsel to show case these factors are by Michael doorman phoebe bird Force Model which is Competitor, Threat of New Entry, Supplier Power, Threat of substitutes and Customers.Competitors railDirect competitors are competitors who have similar products, engineering and same sharpen audience. The major direct competitors of OSIM are Ogawa and OTO. Both have a nice market section in the health related appliances. Technologies in their products alter them to remain competitive against OSIM. Their products are much cheaper compared to OSIM, therefore a number of people purchase their products. However by having great marketing senses, systematically earning prestigious award and manufacturing quality products. OSIM is the le ading brand of health give care appliances. (P)IndirectOSIM also face indirect competitors such Holistic, Chiropractic, self treatments, tralatitious Chinese Medicine and western practices. Indirect competitors offer not and the immaterial but also internal treatments standardized pills and supplements. However these treatments beg an appointment, evaluations and eventfully time from your supple schedule which you cannot commit to. OSIM products are make port commensurate and simple enough as not to abrupt our day-to-day lifestyle. Threat of New Entry The threat of new-sprung(prenominal) entry is at a minimal since the market is mainly look acrossd by OSIM, OGAWA and OTO. For a new brand to enter this market they allow have to have significant capital, the tenacity to face respected brand that have a foot holding in Singapore and technologies that surpasses OSIM. Supplier Power OSIM has several suppliers that are located main in Asia. They are mainly laid in India, Ch ina and Vietnam. The Supplier power here has a conquer control on OSIM as they have been supplying OSIM with her products for the past a few(prenominal) years.However by being situated in these developing countries, OSIM is ableto reduce cost on labor creates on building and manufacturing of their products while still maintaining their spicy standard of quality products Threat of substitutes technological advancement and new discoveries may pose a threat to OSIM. Since the other two major substitutes are OGAWA and OTO, consumer tends to purchase products that are cheaper with a reputable brand name. However, with OSIM utmost product quality, achievements and awards the threat of substitute is moderately beginning as consumers are easily aware of what OSIM are known for. OSIM can reduce the threat of substitute by improving her customer loyalty. (osim, http//blog.osim.com/) Customers OSIM originated from Singapore, a first world country strategically place in southeastern Asia, OSIM can use it to their advantage.From word of mouth by some nonpareil we know. We are reminded that OSIM offers quality products that had protagonisted people. Having its headquarters in Singapore, OSIM uses this opportunity to exploit Singapore high standards of living and also its world class airport. These customers are the most important resources that significantly affect any company. The issue OSIM is facing is that not either individual need to purchase OSIM products as it can be shared. nigh of OSIM mass senescent chairs are purchased and shared within a household. This causes OSIM some problems as these limits the gross sales of OSIM products.Macro FactorsPolitical Factors The political factor that leave benefits OSIM is the government end to increase Singapore people to 6.9 million by 2030 will gallop the market and adversely increase OSIM sales (straitstimes). frugal Factors A ontogenesis inflation or recession can all affect the sort consumer thinks and hence affect OSIM susceptibility to get a stable profit. Economic factors are usually unforeseen since forecasts and analyses are affected by globose changes and natural disasters. Unemployment levels, money value exchange rates, and the state of the global miserliness can all help or hurt OSIM. (tradingeconomics)Social Factors -As the universe is getting more educated, we are more aware of our health and well being of ourselves and those of our family members. Singapore is known for its materialistic culture and Singaporeans push themselves in pursuit wealth and happiness (Janus corp). To do so, we tendto work big hours and disregarding our own health to achieve wealth. OSIM may benefit from the health issues that arise from this as the appliances will not hinder the hectic and busy work life of Singaporeans. Technological Factors Can influence how OSIM maintain and rectify her business. A new type of machinery or product created can help OSIM stay ahead of the competiti ons. Other technological trends may include online transaction, ability to give feedback/complaint, purchase online and monitor the shipment. Demographic Factors Singapore has an ageing universe of discourse with low birth rate but more elderly. This manoeuvre audience, the elderlys benefited most from OSIM products as they often requires health care. The standard of living and health care advances contribute to demographic factors too. (sgplan)Legal Factors Singapore have a new policy of Levies and quotas for hiring Foreign Workers. These changes may have an effect on OSIM since Singapore is a multicultural country with a big diversity of foreigners work here. The new policy requires a company to pay a authorized amount of cash to have the work pass holder to work for them (mom.gov.sg). Lemon law was implemented to Singapore, the idea of lemon law is to protects customers for not up to standards or defectives goods. However it does not affects OSIM products much as OSIM produ ces high quality products. (Rikvin) swot AnalysisAfter gathering the internal and external factors that can affect OSIM greatly, the next step is to do a SWOT analysis. It provides helpful information to make changes in marketing and strategic readying to avoid issues OSIM may face and to exploit the opportunities that may arise. The best way to do so is by reducing the threats and weakness but increase the strengths and opportunities.OSIM an extremely strong and recognize brand name.Reputable brand compared to competitors, customers has a strong consider and confidence in OSIM OSIM has a good invoice originating from Singapore, has four outlets in Singapore to reach the target audience efficiently. rhythmic marketing strategy and involvement with the public and community has strengthen the bonds and trust to OSIMSTRENGTHSOSIM products are costly compare to her competitors.Target audience, may shared OSIM products with one another hence slighter sales for OSIMCompetitors may co me up with products and marketing strategies that could change the customers brand excerpt.A letdown from OSIM may cause customer have enormous discredit ability of OSIM due to her high reputation and achievements.WEAKNESSOPPORTUNITIESPeople are getting more health informed about themselves could be a opportunity for OSIM to increase her profits. Better technology may entice customer to purchase OSIM products online for its mode of convenience. Dueto the aging population the target audience for OSIM will be wider as this target audience tends to be in need of health appliance. Government innovation of having a population of 6.9 million by 2030, currently Singapore population is at 5.3million. Will significantly broaden target audience.THREATSNew changes in the policy and regulations may affects OSIM sales. The rising inflation will limit the expenditure power of the customers they will in avertedly reduce OSIM sales of products hence less income for OSIM. New technologies and d iscoveries can cause OSIM products and machineries to be obsolete Shifts in customers selection away from the OSIMs productsIssue AnalysisThe issue that I would like to point out is that competitors may come up with products and marketing strategies that could change the brand selection away from OSIM. This can lead to a freehanded long run effect to OSIM. If the competitors can do so and improves their reputation, OSIM will lose their high market share, target audiences and profitability.RecommendationsMy recommendations to avoid the issue at hand is by aggressively and regularly market themselves to the public and dominate the advertisement of home health care appliances. OSIM can also bring up health related events like marathons to support and ensure the public their commitment of health care of the consumers. By doing so, they will retain their market share and status eventually with the increase populations in the years come OSIM will have much better sales due to strong un scathed foot holding in Singapore. OSIM can also achieve this by constantly receiving and retaining their awards this will ensure the public that the quality standards of OSIM are higher(prenominal) tier compared to their competitors.ConclusionI personally consider OSIM to have been a very successful company in establishing themselves in the healthy life style industry. However there are many factors that could positively or negatively affect OSIM, technologyin the hand of OSIM may be advantages whereas in the hand of competitor is disadvantages to OSIM. Even so there are certain approaches and ways to ensure OSIM to be ahead of her competitors. Receiving and achieving multiples awards, milestone and expending globally has proven my theory of OSIM being a successful company.Referencing1. Janus Corporation, note of Life in Singapore. http//www.guidemecapital of Singapore.com/relocation/introduction/quality-of-life-in-singapore 2. Melissa Tan, Straits Times, 2013 May, OSIM externals Q1 net profit jumps 13% to $25.1 million. http//www.straitstimes.com/breaking-news/money/story/osim-internationals-q1-net-profit-jumps-13-251-million-20130507 3. Michael E. Porter (1998) Competitive Strategy Techniques for Analyzing Industries and Competitors 4. Ministry of Manpower, foreign manpower, Levies & quotas for hiring Foreign Workers. http//www.mom.gov.sg/foreign-manpower/foreign-worker-levies/Pages/levies-quotas-for-hiring-foreign-workers.aspx 5. Rikvin Pte Ltd, Singapore (PRWEB) March 13, 2012. http//www.prweb.com/releases/singapore/lemon-law-news/prweb9273922.htm 6. Sudhan P Osim Records Record Profits. http//www.fool.sg/2013/07/31/osim-records-record-profits/ 7. UK Essays, http//www.ukessays.com/dissertations/business/about-osim.php