Case Study of Osim

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Opportunities and threats are both external factors and these are not within the control of any organization. Basically, there is no way to change it.

Table 1: SWOT analysis of OSIM

Positive

Factor

Negative

Factor

Internal

Factor

STRENGTHS

- High level of customer relationship

- Products and services offering are very diversified to different customer

- Good and reputable brand image

- Decades of experience

WEAKNESSES

- Limitation in International market outreach

- Lack of ability in managing financing sources

- Premium product price

External

Factor

OPPORTUNITIES

- Loyalist customer on the rise

- Growing business via e-commerce (especially for international consumer)

- Increasing its company subsidiaries

THREATS

- Competition (Price & Entrance of competitors into same market)

- Weakening economics

- Increasingly cost of key inputs

Adopting the TOWS matrix concept, below are the suggested strategies for OSIM in Singapore.

Table 3: TOWS matrix of OSIM

SO

Strengths/Opportunities

- Tap on the benefits of internet marketing in order to enhance the internet market (e-Commerce is the trending for online businesses)

- Further strengthen the customer loyalty and good customer relationship by offering high quality content

- Capitalize the vast experiences for decades to bring more products and businesses directly or via subsidiary companies

ST

Strengths/Threats

- To gain customer’s trust over e-Commerce by attracting industrial expertise to develop its internet channel

- Expansion of market portfolio to reach other parts of the global market via joint venture as well as M&A

- Review and enhance product ranges as well as services to satisfy the need of the target market

WO

Weaknesses/Opportunities

- Effectiveness in managing financial resource to reduce weaknesses

- Consideration for more joint venture and other investments on to international market in order to have a better outreach to oversea market

WT

Weaknesses/Threats

- Investment to strengthening IT infrastructure

- Increase brand loyalty by means of achieving more higher level of customer satisfaction

- Gain trust from shareholders and stakeholders by applying strategic management structure

- PESTEL Analysis

The PESTEL analysis is a widely used framework or tool by market analyst in order to analyze, understand and monitor the macro-environmental factors attributed which are external marketing environment. It is deemed to have great impact on organization which eventually affects business activity and subsequently the strategies and decisions.

The PESTEL analysis framework can be illustrated as below six factors with each factor representing each macro-environmental factor.

P - Political

E - Economic

S - Social

T - Technological

E - Environmental

T - Legal

The outcome of the PESTEL analysis framework is usually associated with the SWOT analysis which in turns used to identify the threats and weaknesses of an organization.

Under this section, the framework shall be used to analyze the success of OSIM in becoming the global leader for luxury healthy lifestyle products.

Table 2: Analysis of PESTEL in Singapore

Factor of PESTEL

Remarks

Political

- Lowest political risk in the continent

- Stable political for the last 4~5 decades

- Clear and transparent government policies

Economic

- Rank 3rd as richest country in the world (by Forbes)

- Highest Income per-capita in ASEAN

- Government investment diversifying the economy

Social

- Trending towards westernization

- Rapid digitalization of lifestyle

- Hardworking workforce and high productivity

Technological

- Good and strong infrastructure (especially IT)

- Leveraging on IoT

- Advance cashless payment technique

- Widespread of social media

Environmental

-