This paper provides a strategic management study in case of OSIM international ltd. It seeks to study the company in detail with regards to its operations in Singapore and China. The outline of this case study includes the strategic analysis, objectives, implementation and evaluation and management of the business strategies. A critical analysis of the issues hindering the company's implementation of the strategies is discussed. Further, it includes the observation and identification of past and current trends of the company and on the other hand predictions and assumptions of future prospects are analysed. Lastly, in accordance to the case study analysis, a few recommendations are provided. Table of Contents
Strategic management is crucial for a company’s progress. OSIM is a global brand listed in the SGX having a wide point of sales network (OSIM Int'l Ltd, 2010). They have managed to sustain the competitive environment with international management, customer relations, brand name, internal strategies and adaption to the different environments.
OSIM has established a niche in developing and selling healthy products. Large companies like OSIM International Ltd, also face challenges and difficulties. This is where the company’s strategic management comes into action. Furthermore, it would be interesting to see how well the company has overcome the difficulties and how well it is going to use the strategic management tools. Therefore, this has made OSIM interesting for a case study analysis.
The economic environment of Singapore is a highly developed and a free market economy. The per capita GDP of Singapore is been higher than most of the developed countries (Find the Data, 2010). The economy depends on imports particularly in the consumer electronics (Find the Data, 2010). Therefore higher manufacturing costs for OSIM are inevitable.
In terms of the socio-cultural aspect of Singapore, OSIM needs to consider the tastes, preferences and lifestyle of the people. Particularly, peoples' willingness to buy the technology based healthcare products in comparison with traditional Chinese medicines. But consumers have adapted to the advancement of OSIM’s innovation (Tan, 2011).
For the technology side, OSIM is constantly developing its own technological and R&D capabilities in Original Design Manufacturing and Original Equipment Manufacturing. In today's world, company needs to cope with the technological advancements like e-business, which is an integral part of any business. Moreover, OSIM strives for originality of product designs and functions, while also developing hybrid products from existing offerings (OSIM, 2002).
Opportunities and Threats
OSIM is a strong organization; it means they occupy many opportunities in the market itself. The opportunities include market expansion and targeting low-income groups. OSIM would likely benefit from growing affluence and urbanization in China. However, OSIM also has many threats.
The decrease in economic growth will make power of purchase goes down. Foreign exchange risks also affect the profit of company because sales are mainly denominated in the respective local currencies in which the sales arise. Vulnerable to health epidemics and terror activities, subject to market competition and negative media publicity caused by imitators and price pressure from others competitor’s products are some of the threats that OSIM will face (OCBC, 2010).
Their threats of new entrants are relatively low due to more barriers to entry in the healthcare industry, which include the requirement of capital investment, human resources, and most importantly technology. However, competitors like OTO, Ogawa and Panasonic have seen OSIM's successful and lucrative in this market, has joined in, to become a notable player.
The bargaining power of suppliers is...
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