This paper has been equipped to examine the external environment of a company named by OSIM. Various external environmental phases such as environmental, technical, political, legal, social and economical factors have been investigated. For analyzing the marketing and management aspects clearly, an analysis over PESTLE analysis and porter’s 5 forces model have been done. This investigation has been executed to recognize the macro and micro environment of business and understand the management of a company.
OSIM is a Singaporean company. It operates its business globally. This company offers healthy lifestyle and branded product like massage chair, neck massagers, shoulder massager, foot massager and slim belt. This company is offering niche market products. The products of the company are recognized well in Singapore. The major focus of the corporation is to improve the level of customers. The main mission an vision of the corporation is stirring life f its clients. At present approx 371 outlets in 37 countries are having by the company.
OSIM is operating its business in distribution and retail, both formats. The retail sector of OSIM has been studied and found that company is selling the products to customers directly through many counters outlets which are operated by many shopping centers in many countries and selected departmental stores (Cravens and Piercy, 2006). The retail sector of OSIM has been studied and found that company is distributing the products to many franchise in overseas market to sell the products to overseas clients.
PESTLE analysis is a study which is done for analyzing the macro environment of a company. It stands for Political, Economic, Socio-cultural, Technological, Legal and environmental. This investigation is basically a part of analyzing the entire external environment of a corporation. In PESTLE analysis, the policies and factors which could affect the company are studied.
For analyzing the macro environment of OSIM, PESTLE analysis has been performed so that the external environment and macro factors of industry could be analyzed. All the policies and factors which might influence the upbringing of the companionship has been studied. The OSIM’s PESTLE analysis is as follows:
These factors impact the whole industry as whole. Political factors are totally linked with the government intervention which impacts over the economy of a nation. These factors encompass labor law, environmental law, tax policy, political stability and tariffs. It also encompasses those services and products which has been proposed by government to not to offer in market without authorization.
OSIM’s political factor has been analyzed. It depict that OSIM does not having any political risk as there are very less interaction of government in operations of OSIM. There is less government policies to affect any operation of OSIM in Singapore. So OSIM is enjoying less political risk due to less restrictions of government in the industry as whole. The political phase of the nation represents that the labor law, environmental law, tax policy, political stability and tariffs are not distressing the company’s operations as policies of nation are quite rigid which do not fluctuate rapidly.
These factors impact the whole industry as whole. The economical aspect of an industry includes exchange rate, interest rate, inflation rate and economic growth (Stratton, SAS Institute Inc., 2009). Significantly, economical factors of a nation affect the decision, activities and operations of an association such as exchange rate could affect the investment and cost of exporting goods of an organization. Economic growth rate could affect the operations of a company.
OSIM’s economical factors have been investigated and it has been found that Singapore’s economy is energetic free-market economy. Singapore’s economy is enhancing speedily and accordingly it is affecting over company’s operations. Singapore is in the top list of most competitive countries. Thus the operations of the company are also increasing fastly.
These factors impact the whole industry as whole. The social aspects contain health awareness, population growth rate, age distribution, career attitude, cultural aspect and emphasize of safety. High tendencies in social characteristics might influence the operations and services and products of a company (Weygandt, Kimmel & Kieso, 2015). Further, companies could modify many policies of administration to acclimatize the social trends in industry.
OSIM’s social factors have been investigated and it has been initiated that Singapore is an eastern country even though nation follows the traditional approach. The Singapore’s social feature has been believed to enhance the business by entire organizations. OSIM is also focusing over entire health awareness products, population growth rate, age distribution, career attitude, cultural aspect and emphasize of safety of civilization to grasp the marketplace.
These factors impact the whole industry as whole. The factors of Technology consist of many technological aspects such as R&D activity, automation, technology incentive, technology incentive, rate of technological change etc. These might be resolute through barriers to entry, outsourcing decision, efficient production level (Daft, 2007).
OSIM’s technological factors have been investigated and established that in operations and production of company, involvement of technology is quite less which even could be outsourced by the company to get expert result.
These factors impact the whole industry as whole. Legal factors enclose health and safety law, consumer law and employment law. These legal aspects might influence the company’s operations, product’s demand, sales cost and manufacturing cost (Fournier and Lee, 2009).
OSIM”s legal factors have been investigated and it has been found that legal aspect are not affecting the company’s operations on huge level as the legal aspects of the country are flexible and prepared to enhance the operations of the company.
These factors impact the whole industry as whole. Environmental factor enclose ecological and environmental feature like change in climate, climate, weather etc which could affect the company’s operations and product demand of company.
OSIM’s environmental factors have been investigated and it has been found that ecological factors must be measured by OSIM to exist in competitive market. Government of Singapore is focusing over environmental condition, demand of products of company which could also get fluctuate owing to weather of the ecological area.
It is a conceptual framework that investigates about the micro environment of a company. It analyzes the aspects of an industry which could affect the firm of the industry. The rivalry stage into an industry and strategies are investigated into this model. It has been analyzed to comprehend the aggressive passion and industry’s attraction. It has been used to investigate the micro ecological aspects. Porter’s 5 forces model contains threat of new entrants, threat of substitutes, bargaining power of customers, bargaining power of suppliers and industry rivalry.
An investigation has been done to examine the OSIM’s micro environment. porter’s 5 forces model of OSIM has been analyzed which is as follows:
For every industry, competition is the major point to establish the competitiveness aspects in the industry. Frequently industry contest obtains a structure of jockeying by taking the use of many plans for arrangements. Industry rivalry gets affected through many factors.
Although OSIM falls in the top list in the industry in Singapore as it is top company of healthy and lifestyle product manufacturer. But it has been found that company could be susceptible by other firms from international market in same industry (Frazer, 2015). As analysis over company depicts that the Ogawa and Gintell is the main competitor of the company and both of them are doing well in the industry to assess of entrant. But it also found that the policy of marketing and strategies would not help OSIM for long times as presently there are other companies too which are also humbling over it. Thus OSIM must plan new strategy to be ahead to the competitors.
For every industry, entrance of new companies is major point to found the competitiveness aspects in the industry. Frequently industry contest obtains a structure of jockeying by taking the use of many plans for arrangements. New entries get affected through many factors.
OSIM is doing well in industry in domestic level but if global market is taking for concern than it is discussed than the new entrance possibility might be improved. Thus, OSIM require making a reflection over strategies and new plans to make the impediment for new entry (Kriesberg And Dayton, 2012).
Threat from alternate product is huge level of threat for an industry. Substitute products might influence product’s demand in the industry.
Lifestyle and healthy products are containing immense alternate in market. Huge companies are in the market with a huge variety of alternates. The transmit cost in the beauty industry is also lower so the replacement rate is also high.
Supplier’s bargaining power depict about the power of supplier which is used by them to enhance the price of raw material. If less suppliers are available in market than the bargaining power of suppliers would enhance and vice versa.
The key suppliers in beauty industry are the people who deals and produces the healthy and lifestyle products (Walker et al, 2005). Company is trading with prime manufacturer companies and industry’s supplier so it is a powerful scepter for corporation and the dealer are major aspect to control the corporation.
Buyer’s bargaining power depict about the power of buyer which is used by them to reduce the price of finished goods. If fewer buyers are available in market than the bargaining power of buyer would enhance and vice versa (Snyder and Davenport, 2013).
Buyer’s bargaining power could be towering in domestic as well as international market so business has to make preparation of strategies and relate such policies through which price could not be reduced.
After investigating over environmental condition (micro and macro) of the company, it has been established that corporation is performing well in market still there are some policies which must be change by management. Some suggestion to the administration of the OSIM is as follows:
After evaluating entire equipped feature of OSIM, it is suggested to administration of the OSIM to enhance the competitive compensations and company’s operations. The analysis of competition over the company show that huge players are in the industry. Thus company is required to initiate over new products in industry so customers possibly will be concerned towards new products. This policy would assist the corporation to diminish the rivalry level and involvement of customers would also enhance (Chaffey et al, 2009).
After investigating over entire operational aspect of OSIM, it is recommended to administration of OSIM to improve the company’s operations and make a focus over international marketplace further to improve the company’s sales and for dropping the rivalry from worldwide market. OSIM must also believe that the economical, social and political circumstances of the company must be competitive. Company must come into the international market with new products to grab more market. it must be suggested to the company to considerer over cross-cultural aspect (Pride, 2008).
After investigating over entire operational aspect of OSIM, it is recommended to administration of OSIM to improve the association with other nation’s firm so that collaboration with those organizations could improve the marketplace and could grasp more clientele. Company has to modify the strategy for becoming more competitive. It is also important for be in the top list in rivalry market (Atasu, Sarvary and Van Wassenhove, 2008). Administration is suggested to make some modification in the international strategy and must focus over cross-cultural aspect in order to achieve the goal.
After investigating over entire operational aspect of OSIM, it is recommended to administration of OSIM to improve the CSR and sustainability in the international market. As the OSIM’s CSR has been investigated and established that it have to be improved to attain the goals of the corporation and in order to make the OSIM more competitive. Administration is suggested to make some modifications in CSR policy of OSIM and must have more focus over sustainable features so that corporation could attain the goal.
Throughout the study and investigation over the operational aspect and market of OSIM, it has been evaluated and originated that the OSIM’s activities and operations are becoming attractive and more competitive continuously. After investigating over entire operational feature of the corporation, it has been established that OSIM still require making some changes in its operations, policies and strategies to make the corporation more spirited and for tumbling the exterior threats of OSIM.
It could be believed after this study that OSIM need to alter the CSR policies, cross cultural aspect, sustainability, and cost strategy and economical, social and political strategies for becoming the top company and increase the market foundation of the company.
Thus it could be said that OSIM is doing well though few transformations are required in OSIM to enhance the market and be more competitive in market.
References:
Cravens, D.W. and Piercy, N., (2006). Strategic marketing (Vol. 7). New York: McGraw-Hill.
Fournier, S. and Lee, L. (2009). Getting brand communities right. Harvard business review, 87(4), pp.105-111.
Atasu, A., Sarvary, M. and Van Wassenhove, L.N. (2008). Remanufacturing as a marketing strategy. Management science, 54(10), pp.1731-1746.
Chaffey, D., Ellis-Chadwick, F., Mayer, R. and Johnston, K. (2009). Internet marketing: strategy, implementation and practice. Pearson Education.
Pride, W. (2008). Marketing. Cengage Learning.
Walker, O.C., Mullins, J.W., Boyd, H.W. and Larreche, J.L. (2005). Marketing strategy. McGraw-Hill Education.
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2015). Financial & Managerial Accounting. John Wiley & Sons.
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Snyder, H. and Davenport, E., (2013). What does it really cost? Allocating indirect costs. Asian Libraries.
Kriesberg, L. And Dayton, B. W. (2012). Constructive conflicts: from escalation to resolution. Rowman & Littlefield.
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