I. Introduction
In this world where only the fast and efficient way of doing things are preferred, the common individual encounters stress of enormous proportions. This prompts companies like OSIM International to find ways to allow the common individual the means towards dealing with these types of work related risks. To do this, they afford the individual a chance for a healthy lifestyle. The company is basically one of the pioneers in this type of industry and it is building an empire by installing global presence using its worldwide network. This paper will provide an analysis of OSIM International, more specifically a look on the internal and external environment of the organisation. To do this, the paper shall initially provide a background description of the company. In this part a discussion of its basic tenets as well as the key factors that drive the operations of the company. Subsequently, the internal and external environments shall be examined using analytic tools like the PEST analysis, Porter’s Five Forces, SWOT Analysis to name a few. The data used in this paper shall consist of data acquired from the website of the company and its annual reports. On the other hand, the discussions as per the theories, arguments and observations shall be based on the data acquired from scholarly and academic articles and journals. In the end of this paper, a summation of all these arguments and observations shall be provided in a conclusion. In the same manner, the study shall also indicate some recommendations for the company to ensure continued growth in its industry.
II. Background of the Company
The company is basically one of the more synonymous names with lifestyle products. Its most notable merchandise includes iconic chairs that ushered the company into a major international brand name.
A. The Industry
The industry on which OSIM operates is dominated by the company. This is basically because there are a scarce number of players in the field of healthy lifestyle products. OSIM virtually have a monopoly in this field as it holds on a great market share in its operations. Based on the website of the company, they have made a niche and consequently established a demand for their products. This makes them the pioneers in the industry. With South Asia as their hub of operations, Hong Kong has become one of the top earners of the company’s global network.
B. The Target Market
In its operations in Hong Kong, it appears that the target market of the company is those individuals that are in their later teens and late thirties who are health conscious and lead a very fast paced lifestyle. This is manifested with their events like the marathons and triathlons that they organise. Basically though they have this specific target market as among their core customers, their annual report maintains that they intend to expand their market and reach other age brackets to cater to their individual needs.
C. Vision and Mission of the Company
The vision of OSIM International is to provide a holistic and integrated approach to healthy lifestyle. The company is geared towards providing the public products that “carry the fundamental theme of health and well-being.” In order to do this, the company needs to focus its operations into four major areas: health, hygiene nutrition, and fitness. In the area of health, the company seeks to help the individual to manage a healthy lifestyle by offering a wide range of health products from massagers to blood pressure monitors. In the area of hygiene, the company seeks to provide the public an access to cleaner water, air and a clean environment in general. Products like water freshener and water purifiers are among those that spearhead this mission. In the area of nutrition, OSIM provides the public a selection of dietary supplements that helps in maintaining a balanced diet. And lastly, the company also focuses on fitness as a part of their overall mission statement. This is manifested in their home gym equipments which allow the common individual a chance to work out in the comfort of their own home. These products range from stationary bicycles to treadmills.
D. The Strategy
Aside from these general strategies, the company has a growth strategy in their 2008 performance. Their annual report maintained that the company intends to introduce more innovative products that will share the market with their existing major products. It is also said that the company intends to improve store performance by increasing productivity. In this level, the company shows that it seeks to maintain its hold on the international scene.
III. External Environment of the Company
A. PEST Analysis
1. Political Environment
2. Economic Environment
3. Socio-cultural Environment
4. Technological Environment
B. Five Forces Model
1. Supplier Power
2. Intensity of Rivalry
3. Threat of Substitutes
4. Buyer Power
5. Threat of New Entrants
IV. Internal Environment of OSIM
A. SWOT Analysis
1. Strength
2. Weaknesses
3. Opportunities
4. Threats
B. Value Chain Analysis
1. Primary Value Activities
2. Support Activities
V. Conclusion
Credit:ivythesis.typepad.com
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