Table of Contents
2. Situation Analysis
a. Micro Factors
b. Macro Factors
3. SWOT Analysis
4. Issue Analysis
OSIM the well establish Asia healthy life style brand, originated from Singapore. OSIM was founded by Dr Ron Sim Chye Hock in November 1980. Initially derive from R Sim Trading which deal mainly with household appliance. Dr Ron Sim Chye Hock later founded OSIM and eventually changes his focus to creating healthy life style products since he felt a great market potential in home care products in Asia. Dr Ron Sim Chye Hock brought together different equipment manufacturers and introduces OSIM which then receives significant growth to the extent of establishing multiple outlets Asia (straitstime). Having the motto “Inspiring Life” OSIM company has a significant numbers of outlets all over the world (osim)
Situational Analysis on Micro and Macro Factors
In the IT and Health conscious era, companies are trying to find opportunities to stay ahead of other rival companies. Companies have to examine and evaluate their environmental forces and take necessary approaches in order to stay competitive. Micro Factors
Microenvironments are factors closely related to company operations and directly impact the customer experience. OSIM has several factors that affect her greatly. A way to show case these factors are by Michael Porter Five Force Model which is: Competitor, Threat of New Entry, Supplier Power, Threat of substitutes and Customers.
Direct competitors are competitors who have similar products, technology and same target audience. The major direct competitors of OSIM are Ogawa and OTO. Both have a decent market share in the health related appliances. Technologies in their products enable 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, consistently earning prestigious award and manufacturing quality products. OSIM is the leading brand of health care appliances. (P)
OSIM also face indirect competitors such Holistic, Chiropractic, self treatments, Traditional Chinese Medicine and western practices. Indirect competitors offer not just the external but also internal treatments like pills and supplements. However these treatments require an appointment, evaluations and importantly time from your busy schedule which you cannot commit to. OSIM products are made portable and simple enough as not to abrupt our daily lifestyle. Threat of New Entry: The threat of new entry is at a minimal since the market is mainly dominated by OSIM, OGAWA and OTO. For a new brand to enter this market they will have to have significant capital, the tenacity to face reputable 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 situated in India, China and Vietnam. The Supplier power here has a moderate control on OSIM as they have been supplying OSIM with her products for the past few years. However by being situated in these developing countries, OSIM is able to reduce cost on labor works on building and manufacturing of their products while still maintaining their high 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 high product quality, achievements and awards the threat of substitute is moderately low as consumers are well aware of what OSIM are known for. OSIM can reduce the threat...
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