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Chapter 1 Introduction

In this assignment, we have chosen OGAWA World Bhd to analyze its business, industry, competitors, strategic issues and the possible future action. OGAWA is involved in the development, design, and distribution of health and wellness equipment.

1.1 Brief History

OGAWA World Bhd is formed by Mr. Wong Lee Keong and Ms. Lim Poh Khian in 1986. They started up with Morwell Sdn Bhd and began their enterprise into the trading of household and electrical products in Malaysia. They found that there is a potential market for health and wellness equipment market in mid 1996. Thus, this is the beginning of the venture into the brand name OGAWA. In 2006, OGAWA World Bhd launched a brand name -- DEKI for the price sensitive market.

The creation of Healthy World in 2001 has led OGAWA business growth rapidly. This strategic formulation was in line with the business strategy of strengthening the OGAWA brand name in the health and wellness equipment industry, locally and abroad.

Today, Ogawa World Bhd has successfully introduced various innovative designs under the OGAWA brand name. They have expended into China, Vietnam, Hong Kong Singapore, Indonesia, and Australia market. On 18 April 2007, they successfully listed on the KLSE Main Board of Bursa Securities.

Chart 1.1 Ogawa World Berhad's Corporate Structure
(Source: OGAWA World Berhad, 2008)
Chart 1.1 is OGAWA world berhad’s corporate structure. For further information of the OGAWA subsidiaries, please refer to 2.4 corporate structure.

1.2 Products

Ogawa products can be divided into five categories which are Relaxation, Therapeutic, Fitness, Diagnostic and Hygiene as shown in table as below. Under Relaxation, this product line has included high-end massage chairs like Sensual, middle-range massage chair like Mobile Seat, eye massagers, handheld massager and so on. For therapeutic product line, Ogawa has combined OSIM uPapa back massager and OSIM uSqueez foot massager to become Ogawa Chi Master. For detail please refer to the brochures that has been attached in Appendix.

|Products Line |Products | |Relaxation |[pic] | |Therapeutic |[pic] | |Fitness |[pic] | |Diagnostic |[pic] | |Hygiene |[pic] |

Table 1.2 Ogawa Products
(Source: Adapted from http://www.ogawaworld.net/index.php)

1.3 Competitors

Ogawa has a few competitors in Malaysia market. They were OSIM, Gintel and OTO. As shown in the graph beside, the largest and closer competitor of OGAWA is OSIM. Therefore, in this assignment, we will analyze OGAWA by comparison with OSIM.

1.4 Vision, Mission and Objectives

OGAWA executive chairman, Wong Lee Keong had noticed that the group’s vision is to become an international brand. To achieve this vision, their primary mission is to further entrench the products across all market segments, to expand their geographical reach both in domestic and overseas markets, as well as to introduce more new products to serve the existing and new customer.

Objectives:
• To penetrate the second-tier townships on the East Coast of Malaysia and East Malaysia.

• To explore new markets such as the Middle East, Thailand and India.

• To embark on a franchising system under the OGAWA trademark to cover more geographical markets whilst...
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