Student

Topics: Marketing, Strategic management, Massage Pages: 40 (9995 words) Published: July 13, 2010
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...

References: Akhtar Z., (2008), “Malaysia: Inflation Rate Rises to 3.8% Percent in May 2008”, Online, Date accessed: 20th June 2008. Available from:
http://www.asia-invest.info/economic-data/malaysia-inflation-rate-rises-to-38-percent-in-may-2008
CIA (2008), ‘The World Fact Book, United States‘, date accessed 21st January 2008. Available from:
https://www.cia.gov/library/publications/the-world-factbook/geos/us.html
D’AVENI. R, 2007, “Mapping your Competitive Position”, “Harvard Business Review”, 2007, November, p.110-120.
DELL, 2008, “About Dell Home: History”, online, date accessed 3rd July 2008, available from:
http://www1.ap.dell.com/content/topics/global.aspx/about_dell/company/history/history?c=my&l=en&s=corp
THE EDGE DAILY, 2008, “Ogawa downgraded on poor margins concerns”, online, date accessed 3rd July 2008, available from:
http://www.ogawaworld.net/corporate/news/latest.php
FedEx EXPRESS, 2008, “Our Company”, Online, date accessed 16th July 2008, available from:
http://about.fedex.designcdt.com/our_company
KOTLER, P. and AMSTRONG G. (1996), Principles of Marketing, 7th Ed., New Jersey: Prentice-Hall, Inc
LINN.A (2008), Starbucks to close 600 stores in the U.S
http://www.msnbc.msn.com/id/25482250/
NEILSON and SHARMA, 1998, New Wave Restructuring, online, date accessed: 13rd July 2008, Available from:
http://www.strategy-business.com/press/16635507/13321
OGAWA WOLRD BERHAD, 2008, “Ogawa Products”, online, date accessed 15th May 2008, available from:
http://www.ogawaworld.net/index.php
OGAWA WORLD BERHAD, 2008, “Ogawa Corporate”, online, date accessed 13rd May 2008, available from:
http://www.ogawaworld.net/corporate/index.php
PADINI HOLDINGS BERHARD (2008), ‘Padini’, online, date accessed: 9th July 2008, available from:
http://www.padini.com.my/default.aspx
WIKIPEDIA (2008), ‘Concept stores’, online, date accessed: 9th July 2008, available from:
http://en.wikipedia.org/wiki/Concept_store
Wikipedia (2008), “Department of Statistics Malaysia (2008) - Demographics of Malaysia”, online, date accessed 16th June 2008, Available from:
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Analysis of the Problem Working Students Essay
  • Correlation of family background of academic performance among Grade 7 students in Gusa Regional Science High School – X Essay
  • Essay on Student
  • Student Essay
  • Motivating Students Essay
  • Students and Politics Essay
  • Student Values Research Paper
  • Essay on Financial Problem of Students

Become a StudyMode Member

Sign Up - It's Free