OSIM International Ltd Analysis

OSIM multinational Ltd AnalysisINTRODUCTIONOSIM is a global leader in gulled healthy lifestyle increases such(prenominal) as knead chair, shoulder and neck massagers, hoof it massager and slim belt. The keep attach to is head-k instantlyn in Malaysia. OSIM is a brand guidance and niche merc lapseise caller- come forth with a focus on the consumer. Today, OSIM Comp whatsoever operates a wide point-of-sales net transaction with outlets is each nates 371 cities over 33 countries in Asia, Australia, Africa, the Middle East, unite Kingdom and North America.Inspiring Life is the motto of the OSIM Company.OSIM (M) Sdn Bhd is engaged in merchandising, distributing and franchising of healthy lifestyle returns. The Company operates in two segments that atomic number 18 cope and diffusion. The retail segment is engaged in outlets and counters operated by it in selected obtain centers and departmental tunelines where the overlaps ar sold at once to end partr nodes. The distribution segment is engaged in reapings distributed by the Company and franchisees in oversea securities industrys. Its subsidiaries include OSIM serviceman-wide profession (Shanghai) Co., Ltd, OSIM (M) Sdn Bhd, OSIM (HK) Company Limited, OSIM (Taiwan) Co., Ltd, Nutrition Focus (USA) Inc, orbicular Active Limited (GAL), OSIM (China) Co., Ltd, Nutri Active Pte Ltd, Victoria Ho role Pte Ltd and VHE China Limited.OSIM (M) Sdn Bhd besides the close to trusted brand. They absorb a title as International Safety Standards beca delectation harmony to worldwide health and safety regulations. The entire overlap de sanctifyed with safety and appropriate to health and safety regulations. Furtherto a greater extent, the lodge in like manner easily in note performance because all their output has been sancti 1d from clinic search, medical certifications and scientific studies. Their health- bearing crossway besides checked and studies scientifically by expertise and th ey awarded certification and identification from independents bodies. In terms of innovation and technology,OSIM confederation ar worldwide technology patents and switch a protrude right on and trademark rights. OSIM is al ways in the front neckcloth of innovation and the development of the virtually complete range of yields to bring the good health benefit to customer.OSIM in like manner receive Award-Winning Design. OSIM brand and product design awards garnered from Japan, Europe and Asia. OSIM product was awarded the Largest health tabloid and C atomic number 18 Equipment Retail Chain by the Malaysian appropriate of Records and Asia Pacific Honesty Enterprise Keris Award 2002. OSIM has been of late awarded ASIA No 1 Brand in healthy lifestyle equipment by a esteemed International Survey, it is for international market seek familiarity to determine Asian most preferred brand of health-c ar products. Besides, OSIM has in like manner been rated by AC Nielsen ap praise in 2005 as the Number One brand in s yeter attributes (High musical note Products, Advance Technology, Premium Brand, Innovative Design Features, Trustworthy Brand, beneficial Customer Service and Good Store Ambience).BACKGROUND AND HISTORYThe origins of OSIM International Ltd barter began in November 1980 when Dr Ron Sim Chye Hock commenced his sole proprietor rail line of sell an array of household goods such as knives, knife-sharpeners and mobile drying rods at a lower place R. Sim Trading Co and it was originally established in capital of capital of Singapore. OSIM were subsequently in incorporatedd in 1983 under the allude R.Sim Trading Co. Pte Ltd to take over the sole proprietorship. operate from OSIM International Ltd gild first premises is at a memory Peoples Park, OSIM were only selling 2 health-care related products, namely, hand-held massagers and foot reflexology rollers. By 1987, OSIM had created a distribution network of 10 outlets in Singapore, Hon g Kong and Taiwan merchandising household goods and health-care related products.Dr Ron Sim Chye Hock is a founder of OSIM then snarl that there was market capableness for specialty home health care products in an increasingly affluent Asia. Early 1987, OSIM saw that the home health care products sector was dominated by a disparate collection of equipment manufacturers with little or no emphasis on marketing and as a result there was a lack of brand consciousness among consumers. Hence, in 1989 their decided to bring together varied home health-care products from opposite equipment manufacturers and market their product using specialty branding. For this purpose, OSIM created the brand Health Check Care to build and exploit a niche market in home health-care products. OSIM dividing line start grew rapidly and by 1994 we had approximately 60 point-of-sales outlets in Asia.In line of credit strategy, they believe that marketing and strengthening of their brand equity is of vi tal importance. As Health Check Care was a generic name and was difficult to be registered as a trademark in much countries, in 1996 the company officially launched OSIM brand name which had been using since the early 1990s. OSIM is a combination of the founders surname and the letter O which symbolizes for vision to become a globally recognized brand. As at 31 May 2000, the company do registered the name OSIM as a trademark in 26 countries spanning Asia (including Australia), Europe, North and South America, South Africa and Israel. on that point are also made trademark applications for OSIM in 10 whatever otherwise(a) countries.A major tenet of OSIM marketing strategy is to put up an gigantic point-of-sales network and geographical coverage in their markets. Presently, they have point-of-sales outlets in Singapore located in all major departmental stores and suburban obtain malls. The company began developing their overseas distribution network in 1986 when they conti ngencyd into Hong Kong and in the following year, into Taiwan. To ride on the rapid development of the Asian economies in the early 1990s, OSIM expanded their operations to Thailand in 1990, Malaysia in 1992, Indonesia and Beijing in 1993, and Shanghai in 1994 by opening point-of-sales outlets in these countries either directly or by their franchisees and distributors. Further much, OSIM expanded their markets to the United States in 1997 and Dubai in 1999 through the appointment of franchisees/licensees to market and sell their products in these countries. At present, OSIM have 10 franchisees/licensees, 3 subsidiaries, 6 are affiliated companies controlled by their Controlling Shareholders and the rest 1 is an unrelated company.The company point-of-sales outlets in Singapore, Hong Kong, Taiwan and Malaysia are operated by Company and subsidiaries. The rest of their point-of-sales outlets are franchised outlets with the exception of outlets in the PRC for which we have trademark a nd licensing agreements with the owners. This is OSIM line of work strategy that future expansion of their point-of-sales network allow for be substantially under taken by franchising. OSIM company begun to gradually move onward from being a retailer to being a franchisor and, in packaging of this strategy, they have also entered into franchise agreements with their subsidiaries, OSIM (HK), OSIM (Taiwan) and OSIM (Msia). Further, franchising table service them to expand and multiply their point-of-sales outlets to more geographical markets at a faster pace with signifi muckletly less(prenominal) capital expo indisputable. Franchising is also less taxing on their managements time than direct self-owned outlets in penetrating bleak markets.To diversify their sources of r crimsonue enhancement, in 1998 OSIM ventured into wholesale distribution of health-check and health-care products such as blood pressure monitors, thermometers and pulse massagers, in Singapore to hospitals li ke Tan Tock Seng Hospital and Kandang Kerbau Womens and Childrens Hospital, pharmacies like the Apex Pharmacy and the shielder Pharmacy chains, and Chinese medical halls. While wholesale distribution is currently only carried out in Singapore which confers between 1 and 2 per cent. to their turnover in Singapore, and then the company intend to develop this logical argument and carry out wholesale distribution in all their trader markets eventually.As part of its duty strategy to extend the control over of their line of credit dish and to exercise greater involvement and participation in the source of supply for their products, in 1995 the company entered into a occasion venture with Daito Electric Machine Industry Company Limited (Daito), a Nipponese supplierto OSIM Group, to take up a 30 per cent engage in Daito-OSIM (Suzhou) with Daito taking up the remaining 70 per cent.. Presently, Daito-OSIM (Suzhou) has a dress in the Singapore-Suzhou Industrial Park in Jiangsu, PR C that manufactures products like hand-held massagers and foot reflexology rollers mainly for re-export and distribution to the markets in Japan and USA. Under the articulatio venture agreement, Daito has the right to appoint 3 directors of Daito-OSIM (Suzhou) while OSIM only have the right to appoint 2 directors as they are the minority shareholder. However, Daito-OSIM (Suzhou) shall non alter the scope of its business activities from that as described in the foregoing, without the combine of Daito and OSIM. Any material financial commitment which is above US$100,000 or material contract to be entered by Daito-OSIM (Suzhou) also requires the consent of Daito and OSIM. The joint venture agreement is of unlimited duration but may be terminated with the consent of Daito and OSIM. Neither Daito nor OSIM can conveyance of title an interest in the shares in Daito-OSIM (Suzhou) without first making an set up to sell the interest to the other shareholder.On 28 March 2000, the founder Dr Ron Sim Chye Hock was conferred an honorary doctors degree in business administration by the Wisconsin International University in recognition of his prominent achievements in business.In July 2000, pursuant to the Subscription Agreement, Investor, a wholly-owned subsidiary of Temasek Holdings (Private) Limited, bid for 11,600,000 new Shares, representing approximately 5 per cent. of the post-Investor Subscription and post-Invitation enlarged share capital of the Company, at the monetary value of $0.47 per Share, representing a tax deduction of approximately 10 per cent. to the Offer Price. The company believes that the investment by Investor is a milestone in their corporate development and an endorsement of their Group. Investor has constituten an undertaking not to dispose of or transfer any part of itsrespective shareholding for a period of 6 months commencing from the image of their admission to the Official List of the SGX-ST. Mr Khor Peng Soon, a nominee of Investor, was appointed as OSIM non-executive Director in June 2000.EthicsEthics are common believes on whats right or wrong and good or bad base on individuals values and morals, plus a behaviours loving context. subscriber line moral philosophy definition is a normative undertaking, seeks to provide respectable insight and pleader to individuals in business, businesses as organizations, and to society. Although there is an overlap between corporate well-disposed responsibility and business ethics, they still can be distinguishing. Corporate social responsibility is rough responsibility to all stakeholders and not fair(a) shareholders where as ethics is virtually morally correct behaviour. Not legion(predicate) business organisations directors volition deny the essentialness of good, trusting relationships with customers, employees, suppliers and the community. All these are actually the elements of success that a company should rely on. Ethics in business is a precise promine nt issue nowadays oddly in this high competitive business world. Organizations usually have a tick off of estimable as well as operational or business values which they wished to see in operating their business. These values guide ideas of acceptable, sought after and responsible behavior, above and beyond compliance with laws and regulations.Ethics is formulated to grow the standard of corporate governance and corporate behaviour. One should be honest for motivation, good behaviour usually bring a reward. Think about it, if it were always in ones interest to be good, there would be no lease for ethics. One can simply act selfishly and embarrass about obligation. People invented ethics precisely because it does not always assent with self interest. Owners, employees, suppliers and customers were evaluate to have a good behaviour in their work place giving that issues of ethics testament affect the business. head start from the individual ethics, it is important since ever yone has their own responsibilities in their work place. The very least a person can do is to be honest about what they do each day. Bribery should not be tolerated. There is so much poverty, so much hunger across the world. Greed for revenue and profits can only transform our world into an animal kingdom. take management level of the company should have first habituate good ethics themselves in browse to show a good visible exertion to the employees and lead them to become more productive and efficient.Behaviour toward the employees, top management level of the company should practice fair policies such as adequate to(predicate) amount of time given to the employee to be notified if the company intend to hold layoff exercise at heart the company and affected parties should be compensated accordingly. otherwise than that, the company is responsible for providing conducive environment which is clean and save for its employee to work in too. Employee salaries should be paid a ccording to agreed amount base on their working hours and job classification. Privacy of employees mustiness be esteem too.Based on the information we gathered through our interview with OSIM, their company do have ethics practices. One of the representatives is, employees who were stationed out of town for readiness were provided with decent accommodation. Every single employee has equal chances of being promoted. Outlet supervisors must also accept high accountability and responsibility in do duties, without abusing power and position for self-gain or other interested parties. Employees are expected to always endeavour to improve knowledge, creativity and innovation as well as team spirit. Those who are in the sales position are required to be self-motivated to achieve great sales like theres no limit to it. Proper basic personal grooming and dress in clean, smart and decent clothing at work is a must and its considered basic manners for oddly for those in salesposition working at the outlets. Strict basic grooming is required to reflect the professionalism of the employee.Furthermore, OSIM punctuate a lot on professionalism among its employees. Employees must always carry out duties efficiently, effectively and productively in order to larn excellent helping. The managers are very strict on the employee, they must always on good behaviour and punctuality. The company will always provide in-house training for their employees. In addition, the company sales force undergoes trainings like product training, salesmanship training and on-the-job training. separate than that, OSIM organise talks by health-care professionals in their corporate home plate for their sales lag. Periodically, they will also send fourth-year management staff overseas to attend seminars and exhibitions. Therefore, employees are expected to improve knowledge and skills to produce efficient, prompt and accurate service as well as to possess characteristics of creativity, innovation, motivation and competitiveness This show that the company practices good ethics as their provide and give chances for them equip themselves. The product of OSIM International Ltd complies with Safety and Quality Standards of International Certification Boards. The company does not compromise its products quality lightly, and this is a good business ethics practice. OSIM have the quality controls namely product quality assurance for its products and service quality assurance to ensure the staff deliver their best. stopping point but not least, the company take silver dollar into account very seriously. No one in the company should reveal out the companys private and confidential information such as inner(a) finance reports, marketing strategies and etcetera. Disciplinary action will be taken against those who leak out the information might face dismissal from the company.In conclusion, every business organisation has strict ethics to follow. The field and practice of business ethics is now well established. Often times senior individuals were hired in large companies and other organisations with dedicated teams to monitor that ethical standard and corporate responsibility (CR) commitments are understood and advocated. These commitments will be driven both by a set of ethical and business values set by the organisation itself, and by relevant juristic and regulatory requirements that determine what acceptable conduct is. It is important to establish a standard or ethics of competence for corporate accountability which includes standards of professionalism and trustworthiness in order to uphold good corporate integrity. The experience within the country like Malaysia has exposed a critical need for the prep of corporate accountability standards in order to establish an ethical corporate environment. It also ensures Malaysia is on the right track in turning into a first world country. Companies who are truly committed to uphold ethical conduct we re found to be consistently outperforming companies who do not demo ethical conduct according to research done by Does Business Ethics Pay? by The Institute of Business Ethics (IBE). If you have integrity, nothing else matters. If you dont have integrity, nothing else matters. Alan K. SimpsonINFORMATION TECHNOLOGY USED cultivation technology (IT) by definition is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numeral information by a microelectronics-based combination of computing and telecommunications. More recently it is the use of the computers and IT to improve the efficiency and competitiveness of businesses that has led to technological change. collectible to technological changes is so rapid, there are important implications for businesses. A business can be affected by the following technological change in production, the provision of services and in the office IT act as an effective tool to aid businesses gain and pay off the b est use of knowledge. rough of the systems can be very tedious to set up and time-consuming to hold. About two decades ago, most businesses agreed that effective IT strategies required to be embedded within the business strategy. Business executives needed to possess those IT strategies as well as the business strategies in order to devour those business strategies successfully. Undeniably, IT has become an increasingly important business tool from scurvy to big organisations, it is important for businesses to ensure that their business gets the most out of any system it introduces. In order to achieve this, you need to puzzle out sure that the IT system chosen supports the business and adds value to it.Databases organise information for lento access, managed and updated. For workout, a business might have a infobase of customers storing their contact information, their orders and preferences. The database is one of the cornerstones of information technology, and its abilit y to organise, process and manage information in a structured and controlled manner is the key to many areas of modern business efficiency. As a business, the more we understand about our customers, suppliers and competitors, the better. Hence, the gathering, storing and processing of informationusing databases cangive businessesa distinct advantage. The advantages are such as cutting down the amount of time worn-out(a) managing data. Allowing businesses personnel the ability to analyse data in a many of ways. It is also a way of promoting a disciplined approach to data management. In addition, databases technology turns different information into a valuable imaging and improving the quality and consistency of information. Value of information in line with maintenance and production salute. Most companies produce information on expect to place a value to it.E-commerce is the ability of businesses to trade with the world via websites. With E-commerce, businesses are able to marke t and create awareness on their products a large group of audience and business is now open 24 hours every day. This has created new opportunities for businesses that trade locally and may not trade internationally before to now expand the size of their market to worldwide. Amazon.com is one congressman of e-commerce as a worldwide book and CD sellers. Consumers can also make comparison on the products and search for best deals online. It allows entrepreneurs and or even individuals to sell directly to consumers. This is the opposite of conventional ways of selling at retail outlets. In other words, business transactions are now taking place online too. OSIM Directors believe that e-commerce is emerging as a very important marketing and distribution channel for businesses although the extent of the impact of e-commerce cannot be conclusively known today. OSIM have the intention of tapping into the huge potential of e-commerce and other health-care retailers may also follow suit.Sm artphone with profits access enabled and personal computers feature with office applications with office applications, save businesses time and travelling woo by enabling employees, customers, and suppliers to communicate from any location. This gives much convenience for the on-site and off-site employee to communication with each other. However, effective communication is very essential to most IT and e-commerce systems. Most of these technologies are invented to make communication between buyers and sellers faster and more reliable. On top of that, Computers can be utilise to process, analyse and store vast amounts of data to give the business more quality information.The net income can also be useful for various(a) purposes. One of it is to make business sales message to be send out to customers especially potential ones. To get sales message out to customers and potential customers, marketing by electronic mail and on the internet offers speed and cost benefits over trad itional mail marketing. Company resources are put into better use as chances of carry throughing out potential customers are much greater. Other types of online marketing such as social media like Facebook also provide a cost-effective avenue for businesses in reaching customers.OSIM has registered their own website www.osim.com to market themselves on the Internet to let more people know about the company and its products. It is important for a company to have a website especially for developing new products, offering new services and reaching new clients. Todays information age has leaded many people to use internet to search information and others. People can access to any website with just a few clicks. Although setting up a website might be costly, it is offset by reaching a large pool of potential customers and providing necessary information for existing customers too. OSIM is making use of the popular Facebook as a tool for them to promote their products and provide brief i nformation and a la mode(p) happenings in regard to their road shows. Job recruitment advertisement is also in their website, this will save the companys cost in advertising in other means such as the newspaper. Consumers can also sign up for the mailing list to receive special offers, promotional materials and well-being tips from OSIM. Last but not least, OSIM made us of IT to provide its customers order tracking if they are not sure if their package has been delivered .The order tracking service will help you track it down.In conclusion, technological change can bring many benefits to a business. It reduces running costs, improve productivity, meliorate competitiveness, improved quality of service (e.g. speed of service) and reduce resources wa ramification. For companies who have yet to use IT to run their businesses should really consider it. Technology and business go hand in hand. Hence, technology is compulsory for business.4P ANALYSISDIAGRAM 1 The selling MixMarketing conflate is one of the most important aspects in marketing. The important of marketing mix are usually categories into four separate which are product, price, place, and promotion. The main purpose of this four Ps marketing is to help the company to achieving their train market. Customers are not the components of the marketing mix. However, the customer is the target of all the companys marketing.Product can be usually classified under two parts that is consumer product and producer products. Consumer product normally purchased for individuals used and these products are divided into three more categories that is convenience product, shopping product and specialty product. Secondly, the producer product, this product is purchased to use in running businesses. Besidethat, physical of the product also become the main point to attract the customers for example the packaging and size of the product.Price is the price level that business wants to sell their product to consumer. There a re many parts need to be consider first before the product were decides to be sell. The considerations such as objective of the business, the degree of competitor in the industry, channel of distribution and the business image. Furthermore, there are some strategies that can help a business in order to arrive at a selling of their product such as cost-plus set, mark-up pricing, predatory pricing, glide pricing, penetration pricing, prestige pricing and demand-orientated pricing.Place is where the product put on the target market. This place refers to those points that are stores and the retail outlets where the product should be easily accessible by the customer. Next, is to the channel of distribution means the business uses to get their product from milling machinery and make it available to consumers. Wholesaler, retailer and Distribution Company are example for channel of distribution.Promotion is the method of the company introducing and selling products and its one of the w ays to attract consumers aware of their product. There are various ways of promotion such as advertising, personal selling, sales promotions, branding and packaging, direct email and loss leaders. Promotion is important of communication between the product and the customer in order to increase the sales.In conclusion, a marketing mix involves four Ps. In another word, the four Ps entire are related to each other in reaching target market. returnOSIM is a company that sells healthy lifestyle product. There are various type of health product that they sells such as massage chair, foot massagers, head massagers, back massagers, eye massagers, soothing gel pads, slim belts, pedometer, blood pressure monitor, personal hygiene and water purifiers. These products are help to maintain health and can give relaxing to the people.The latest product that OSIM launched is uDivine massage chair. The uDivine was designed by Japanese Master, Sato Tsuyoshi and he is expert of Japanese Chiropractic M assage. The uDivine is the world first Human-3D massage chair and this massage chair are combine with strategically position system airbags, realistic and human contour based, delivering the most humanized, pleasurable and effective full body massage. uDivine have multi-sensory pleasures from head to toe. The design of this massage chair are intelligent design with plenty to wonder and it give more living space, seamless navigation, stereo sound build-in speakers, despotic comfort and family-friendly safety function.OSIM Company makes a consideration to the number of stage in development of new product. The first stage is the generation of ideas. The company thinks future whether the product that they create meet the objective of the business or not. Furthermore, they also make a question will the product contribute to the continued growth of their business and does the business have the spare electrical condenser to produce the product.Secondly, is testing the new concept. OSIM want to know is there a sufficient market for the new product. This stage of the product developmentprocess will involve carrying out extensive primary market research to test consumers reaction to the suggested product.Next, analyzing the cost or revenues. Based on cost of production, they will set the reasonable price of product to be selling. OSIM also caring of what will be the profitability of the new product and how many units of the product they want to produce.Furthermore, they make a considered of developing a prototype. The design, materials, quality and safety of the product will become paramount. A prototype of the product will be developed using the detail that the market research indicated that consumer wanted. It is essential to ensure that this stage of the development process is detailed ad extensive, since to make alterations and modification at a later date will be extremely expensive and time-consuming.Lastly, the goal of the company for their product is to make the customer easy to recognize its brand and provide customer satisfaction. If the product does not fit the customer needs or meet the standard, the company accepts the criticism and modifies their products until it is fulfilling the needs of their customer.PRICEOSIM (is one of the high-end brands that sells health-care product in the market. It stands by its own name, image, quality and safety. The good in pricing strategy of the company will affect the quantity of sell and the profit-margin received per unit. In order to achieve at selling price for its product, there are some method that can be use which is cost-plus pricing, mark-up pricing, predatory pricing, skimming pricing, penetration pricing, prestige pricing, demand-oriented pricing and competition-oriented pricing.The first procedure for setting price is to determine the objectives of pricing. Earning a profit is the main objective. OSIM Company has three strategies in setting the price of their product. OSIM used cost- plus pricing, where the total cost of producing each unit of product is calculated. After that, the percentage profit is added to this unit cost to arrive at the selling price.Next is skimming pricing, all of their products are innovative and high technology product. So the strategies for these products usually set at the high price because it required high cost to produce the product and it design to create an up-market. Nonetheless, another pricing strategy of OSIM Company is competition-oriented pricing. Competition-oriented pricing is the strategies to set a price for a product with comparison with the competitor. Some product of OSIM were pricing based on the price charge by the competitors.In conclusion, setting a price is not an easy job, it need certain method to set the product price. For the beginning, a listing price, varieties of discount and allowance should include when setting a price.PLACEMAP 1MAP 2OSIM has chosen the right place for selling their products. In Map 1 shown one of the places which OSIM outlet located, that is in Bintang Mega Mall, Miri, Sarawak. Our group got to find out this outlet to conduct interview about OSIM for this team project.Normally in business, without a good place to promote the company product will make harder to get successful in target market even the product have a reasonable price. In other words, to reach the target market, positioning is one of the important steps for placing. The location of the product should be easier for customer to purchases the product. If the customer hard to get the product, they might give advantage to other companies which they can get it easily. However, every customer has different needs with aspect of time and place. In order to attract more customers, the location of the product should fulfill the customers requirement. The company also can offer a delivery service in order to make