Case Study of Osim

Table of Content

                                                                                                  Pages

1. Introduction                                                                         2
2. Organization Description & Background of OSIM Int’l Ltd.                        2                
3. SWOT Analysis                                                                        3 to 4        
4. PESTEL Analysis                                                                        5

1. Evaluation of PESTEL Analysis                                                        6 to 7

1. Porter’s Five Forces Analysis                                                         8

- For home healthcare and healthy lifestyle products industry

5.1         Evaluation of Porter’s Five Forces                                                9 to 10

6.0        Strategic Recommendations                                                        11

6.1        Managing internal and external factor                                                11

6.2        Making growth expansion                                                        11        

6.3        Protecting market share and its market leader position                                11

6.4        Leverage on IT                                                                        12

7.0        Conclusion                                                                        12

8.0        References                                                                        13

1. Introduction

The aim of this report is to understand and examine the success of a Singapore established company known as OSIM International Ltd as well as how the company put in place their corporate vision and mission to excel as a leading company in its business domain both locally and globally.

The approach to achieve this aim was to adopt the PESTEL analysis together with SWOT analysis and the Porter’s Five Force analysis to unveil how the business environment impacts over the company business growth and competitive edge in the industry.

1. Organization Description & Background of OSIM Int’l Ltd.

OSIM International is a well-known home healthcare and healthy lifestyle products company founded by Mr Ron Sim in 1980 with the brand name OSIM officially launched in 1993. OSIM global business headquarters was opened in 2002 and it is situated in Singapore at 65 Ubi Avenue 1. The company was listed in Singapore stock exchange in July 2000 and its market value stands at around SGD835 million (By SG Yahoo Financial). The company reported in their latest financial statement that it garnered total revenue of 620 million SGD for 12 months ended 31st December 2015.

Established in Singapore in the year 1980 by Mr Ron Sim, OSIM started off as the company originally selling electrical and household appliances under the company name known as R SIM Trading. Due to the recession in mid-80, R SIM Trading was forced to shut down business because of unfavorable business situation. But Mr Ron Sim was undeterred and made a swift decision to enter the healthcare sector. Then in 1989 the company registered the name Health Check and Care and   seeing themselves putting swift focus to market luxury healthy lifestyle products such as massage chair despite the recession. This has proven to be a hit and the company growth was tremendous following that period. Capitalizing the success stories in Singapore, the company seized the opportunity to open it business abroad and hence developing businesses in Malaysia and Indonesia.

The company envisioned to be a global leader in healthy lifestyle products and in order to achieve in expanding the business globally, the brand name OSIM was launched in 1993. This was beginning of the business expansion of OSIM and till today the company has a global network of 856 outlets, 111 cities and 31 countries and still counting. Over the years, OSIM has also made acquisition as well as joint venture to expand their businesses. TWG Tea and GNC became subsidiaries of OSIM in the course of OSIM business expansion.

In essence, OSIM has a core belief about the experience of total well-being and living an inspiring life hence utilizing each and every customer touch point to convey this belief to the customer through their products, outlets, brand name, service excellence and vast knowledge of holistic health. With this, OSIM stands strong as a global leader and trusted brand for the past 20 over years.

1. SWOT Analysis

In order to visualize the business’s strengths and weakness as well as the opportunities and threats that OSIM is confronted by the marketplace, the SWOT analysis has been carried out in this section to determine these areas.

SWOT analysis is very commonly used by organization to establish their business position in the marketplace and henceforth developing the most ideal business strategies for the company by using the concept of TOWS matrix which is the variant of SWOT analysis.

SWOT analysis is generally put into a four quadrants matrix for easy understanding and below is the illustration.

Strengths and weaknesses are both internal factors and these can be changed over time with substantial effort or work put in place by an organization.