Pestle Company analysis
The Company
Nanyang Optical Group was chosen because it is a Singapore company with a humble beginning. Today, Nanyang Optical Group has more than 20 optical retail outlets across Singapore, Malaysia and China. This is due to the persistent pursuing in service excellence, quality, branding and innovation. The results of the company perseverance are recognised both local and overseas, and has won several prestige design awards. (20bytwo, 2012) Background information
Nanyang Optical Group started out as a lens grinding and edging workshop in Geylang in the 1950s. Founder Yang Wah Kiang took over the then lens-grinding shop at 14 years old when his father died. The eldest child of the family took care of the shop and family while coping with his studies.
During the 1990s, the booming of shopping centres has boasted the number of eyewear stores creating high demand on lens grindings. This led to the opening of second outlet in Katong Mall and never looks back since.
Today, Nanyang Optical Group has staff strength of more than 80 and a turnover of 10 million. (Ng, 2007) External Analysis
This section uses Porter Five Forces to identify the attractiveness of optical industry in Singapore. (Johnson, 2011)
Threats of Entry
Nanyang Optical Group being pioneer has accumulated vast experience curve in the industry. Being a well known local brand has certain economies of scales in terms of accessibility to supply, distribution channels and brand awareness.
Expected retaliation is expected notably from few main players like Spectacle Hut and Capitol Optical in a form of price cuts.
Government Action is consistently through aids and subsidies. Differentiation of products are low as less variation.
Threat of substitutes
Eye laser or Lasik is a threat outside this industry. Extra-industry effects are people are not willing to take surgery risk even through the risk is low. However, Lasik has becoming affordable options over the past few years in
Nanyang Optical Group was chosen because it is a Singapore company with a humble beginning. Today, Nanyang Optical Group has more than 20 optical retail outlets across Singapore, Malaysia and China. This is due to the persistent pursuing in service excellence, quality, branding and innovation. The results of the company perseverance are recognised both local and overseas, and has won several prestige design awards. (20bytwo, 2012) Background information
Nanyang Optical Group started out as a lens grinding and edging workshop in Geylang in the 1950s. Founder Yang Wah Kiang took over the then lens-grinding shop at 14 years old when his father died. The eldest child of the family took care of the shop and family while coping with his studies.
During the 1990s, the booming of shopping centres has boasted the number of eyewear stores creating high demand on lens grindings. This led to the opening of second outlet in Katong Mall and never looks back since.
Today, Nanyang Optical Group has staff strength of more than 80 and a turnover of 10 million. (Ng, 2007) External Analysis
This section uses Porter Five Forces to identify the attractiveness of optical industry in Singapore. (Johnson, 2011)
Threats of Entry
Nanyang Optical Group being pioneer has accumulated vast experience curve in the industry. Being a well known local brand has certain economies of scales in terms of accessibility to supply, distribution channels and brand awareness.
Expected retaliation is expected notably from few main players like Spectacle Hut and Capitol Optical in a form of price cuts.
Government Action is consistently through aids and subsidies. Differentiation of products are low as less variation.
Threat of substitutes
Eye laser or Lasik is a threat outside this industry. Extra-industry effects are people are not willing to take surgery risk even through the risk is low. However, Lasik has becoming affordable options over the past few years in