Porter's 5 Forces on Eys

Topics: Marketing, Good, Supply chain Pages: 2 (329 words) Published: April 15, 2013
Porter’s Five Forces
Competitive Rivalry within the Industry (Low)
* Because EYS is the market leader in Singapore (http://www.euyansang.com/index.php/eu-yan-sang/profile) * Eu Yan Sang has been growing ever since year 2000 (zahira’s research). Threat of New Entrants (High)

* There are many Chinese in Singapore and many China nationals coming into Singapore (http://www.guidemesingapore.com/relocation/introduction/people-of-singapore). Therefore importing of chinese medicinal products are much foreseeable. Bargaining power of Buyer (Low)

* They are market leader
* Competitive rival very weak
* Population is more inclined to branded goods
* Wide Distribution Channels: EYS have many distribution channel they have 58 outlets in Singapore and they distribute their products to medical halls pharmacy supermarket drug stores, convenient stores spas and health clubs (EYS website) Bargaining power of supplier (Low)

* Vertical integration:
Threat of substitute products (High)
* Low Brand Loyalty: Fast Moving Consumer Goods (FMCG) products such as tonics health supplements are frequently made at the point of purchase. Purchases like this are frequently of low brand loyalty because consumers are influenced by numerous factors such as the mental state and the surrounding elements (Woodside & Summers, 2010). * Aggressive Competition: Western medication or health supplements are highly prioritized by consumers of a younger generation as compared to TCM. Easy accessibility of such alternatives poses a huge competition to EYS. * Low switching cost

The ability for customers to switch to competitors might pose a threat to Eu Yan Sang. And also the threat of new entrants will be a potential threat. To address this issue, Eu Yan Sang needs to create barriers to prevent them from entering the industry. EYS strength would be the vertical integration, which enables EYS in reducing costs and higher control over their prices....
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