Analysis of Eu Yan Shang

Topics: Chinese language, Hong Kong, Han Dynasty Pages: 3 (755 words) Published: August 5, 2011
Analysis of Eu Yan Sang (EYS)
The strength of EYS from internal environment:
• Market Leader
Eu Yan Sang is a market leader in traditional Chinese medicine (TCM). Their product quality and professional ethics have been regarded highly by its customers. They enable to charge premium price to customer because of their high quality products. EYS lay in its high brand equity that earned over a century and its renowned brand name and image. • Core Competencies

There are over 300 products under Eu Yan Sang brand name, but their core products to pump profits are Bak Fong Pills for women and Bo Ying Compound for infants. These two products are continuously to pump profits to EYS’s bottom line and have remained household names since the company opened its doors in 1909 in Hong Kong. Chinese believe that women need to regulate the menstrual function before and after menstruation period thus most of the Chinese women will consume Bak Fong Pills. Where else they also believe infants need to consume Bo Ying Compound before the age of one to prevent any disease. • Supply Chain

EYS able to control the total supply chain gives them an excellent competitive edge in the industry. To complement the new standard, EYS also developing a world first integrated online portal to keep track of traditional Chinese medicine herbs throughout the value chain.

The weaknesses arise from Eu Yan Sang:
• Management Problem
EYS’s management problems arise with different views over the operations of the business that resulted in disgruntled shareholders. They faced lack of vision for future growth strategies that may threaten its survival. • Employees Performance

According the respondent s’ feelings in the survey, salesperson were not particularly informative about certain products benefits and were unhelpful in recommending suitable products. They were perceived as being sloppily dressed in drab uniforms and displaying a rather indifferent attitude towards customers except when the...
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