The use of innovative marketing and product concepts

The commit of innovative grocery store and product conceptsInnovative securities manufacturinging and product concepts made OSIM outside(a) Ltd a attraction in the manufacture of Home Health-c atomic number 18 products. Franchise agreements among more or less of the cross border ope proportionalityns argon implemented to ensure chapiterization of local commercializeing expertise and practices of the franchi lives. OSIM planetaryist Ltd are now employing expressive merchandiseing and distri stillion system which enables the direction to essay customer needs and optences twain(prenominal) on the regional and local market bases and customize product radiation patterns to exceed customer expectations and similarly in order to address the ships community weakness. disdain of this effort of the community, the received pecuniary slip of the guild is quite unusual, thus a need for mo take inary incidental epitome is a must. For most melodyes today, the pr ogress and outgrowth they created are save as basis of their success. These records also serve as essential involvement in make last in craft and of course as a benchmark for measuring the firms performance for the period under interrogatory (Ali, A 1993 and Pike, R Neale, B 1999). A pecuniary situation outline is bingle such label that documents original and future fiscal situation in an attempt to determine a monetary st pass judgmentgy to befri finale achieve cheekal goals.ObjectivesThe objective of this report card of taxs and analyses the descent performance of OSIM by reviewing the financial instruction for the past 3 familys. Actually, it attempts to examine the financial statements of the telephoner by using tools such as Ratio Analysis and also to see what might be the a nonher(prenominal) factors that seat influence the guilds growth and its stopping head making and than to see the limitations of the financial analysis. These performance indicat ors are better know as proportions and constitute the principal(prenominal) tools of conventional financial analysis. This serves as a proof that more and more organisations are realising the importance the analysis of their financial situation in order to keep up with the demands of the line of merchandise world. Basically, this paper pass on be discussing the financial status of OSIM h elderlyings Ltd. in accordance to their financial ratios in 2007, 2008 and 2009.Corporate Profile of OSIMOSIM International Ltd was believed a foreign leader in healthy lifestyle products. The society was originally founded by Ron Sim in capital of Singapore in 1980. During that time OSIM was under the scream of R Sim Trading, an galvanic and firm appliance company. Using their small start-up capital, the company engages with the promotion of household products such as knife sharpeners, knife and mobile clothes drying rods. Apparently, in 1989, the company listed with the name Health Check and Care, and later on shifted their main focus to healthy lifestyle products. The time following this created great exploitation for the company, and it manages to produce outlets in Indonesia and Malaysia.In 1993, the company officially introduced the OSIM commemorate name and its distribution network grown up to 60 point-of-sale outlets in Asia. By the year 2002, OSIM formed its world(prenominal) personal credit line headquarters in Singapore at 65 Ubi Avenue 1. The Business Headquarters post (BHQ) was awarded to OSIM by The stinting Development Board. In 1993, the company opened its scratch line concept shop in Shanghai, in the Peoples Republic of China. receivedly, OSIM operates about 1,100 outlets in more 30 countries worldwide.Current/Future Trends get in 1. 2007 to 2009 Business exertion of OSIMSource www.ft.comAs seen in figure 1, the performance of OSIM is at its surefootedial breeding in the 2nd quarter of 2007. But suffers from continues decline in year 2008 u p to the 1st quarter of 2009 callable the world-wide recession go through non only by OSIM but of most affaires virtually the globe. Despite of the recession, OSIM still devices rough strategy that go out provoke their business performance. As seen in the commitation, in that location is also a slight revival of business performance in 2009 and it seems that this trend will continue up to the end of 2010. As recorded in ft.com, OSIM International Ltd (O23SES) set a virgin 52-week game during todays trading session when it reached 0.615. Over this period, the share price is up 692.04%. Over the last week OSIM International Ltd (O23SES) outperformed the Straits Times index..CompetitorsAs indicated in the company report of OSIM, their primary quill markets are go in Singapore, Hong Kong and Taiwan and lively no company poses a signifi cornerstonet curse to them as a major competitor (Osim International Ltd. 2009). The company believed that they carry the sire a war -ridden edge over their competitors in their primary markets as their extensive distribution network of outlets is dedicated to stem health-care products. As part of the business development of the company, they currently exercise the full get a line over their point-of-sales network and dictate to their distribution chain how to sell and non only what to sell (Osim International Ltd. 2009). Furthermore, OSIM also control their supply chain, from the design of the products up to the distribution and marketing of the products. In general, the company considers Sanyo and Omron as their competitors.Actually, Sanyo is a major electronics company and member of the Fortune 500 whose headquarters is located in Moriguchi, Osaka prefecture, Japan. Sanyo targets the middle of the market and has over 324 offices and plants worldwide. On the other hand, Omron is an old company which was established in 1933 and in in collectived in 1948 by Kazuma Tateishi. like to Sanyo, Omrons vegetable m arrow expertise is the manufacture and sale of automation components, equipment and systems, but it is in general known for medical equipment such as digital thermometers, blood force per unit area monitors and nebulizers. As seen, these competitors are not directly targeting the market of OSIM which are in the main home health-care products.However, in response to the competitors and in order to handle war-ridden pressures from manufacturers of low-priced products in the PRC market, the company necessitate developed NORO as a secondary brand to sell lower-priced massage chairs and kneading massagers to the segment of the consumer market which are more sensitive to pricing (Osim International Ltd. 2009).While the barriers to main course into the home health-care products constancy are not exorbitant, rising entrants may possibly face high start-up be and ask to compete a urinatest established brands. parvenue entrants may also be short of the know guidege of how to sell and where to sell. Thus, the company is convinced that in this industry, strategic marketing and branding are crucial. Furthermore, tonic entrants might find it more complicated to set up a distribution network. For example, owners of strategic departmental stores and suburban shopping malls usually prefer the more well-established names. In addition, the comparison of financial levers can will be discussed in the next secrtion.Ratio AnalysisCharacteristically, financial measures as well as the affiliations employed in performance depth are designed to stress outcomes with least or no consideration of the decision processes of the manager. The usual or conventional sort of performance was ground on episodic profitability gauges without the concern to particular variables that push these measures (Daroca Nourayi, 2002). Performance in the past is mainly based on conventional accounting and measures based on market performance. In particular, these measures hold the evaluation on net income, kick in on equity/capital employed, earnings per share as well as share-price return. Some financial outrages drive home put merged governance in the business spotlight. Basically, the issues and interest in the subject bodied finance can be traced back at least to the 18th century and economists such as Adam Smith. Certainly, there is probably slim new in the existing debate involving to financial negligence, except for the crop of the financial and sparing consequences which replicate the greater importance of finance in the current economy. As stated previously, the aim of this presentation is to scrutinize the scotch and financial context of corporate governance of a home health-care products company i.e. OSIM. It attempts to value the past, current and future situation of this business in foothold of the financial reports. Basically, corporate governance has significant impact for the performance of the financial sector and, by addition, the economy as whole. Well-organised resource allocation is condense by strapping shareholder control rights, which assists seatment in judicious development actions and confines the scope for corporate over-investment.Actually, investment decisions are bring forward correlated to corporate governance insofar as investors prefer to invest in suitably supervised businesses and be fitting to avoid drop in un true environments. In this manner, the investor assertion created by sound corporate governance stipulations and the security of marginal shareholders encourages the financial market progress by encouraging share ownership and capable capital allocation crosswise firms. Transparent financial reporting is necessary to sending efficient corporate governance.For the last several eld, the home health-care products industries in Singapore sacrifice seen the rapid growth of the number of firms offering financial situation analysis helpers. This serves as a proof that more and more organisat ions are realising the importance the analysis of their financial situation in order to keep up with the demands of the business world.Analysis of InformationProfitability RatiosAs seen in figure 1, the Osim International Ltds 2009 revenues grew revenues 4.40% from 456.66m to 476.77m. This on with an increase in selling, general and administrative costs has contributed to a reduction in net income from a gain of 99.44m to a gain of 23.33m. From the record for 2009, the company actually suffers from profit decline due to the power of global recession. As seen, their 2007 performance is expressive compared in 2008 or even in 2009. From these results, we can deviate that OSIM was not performing well in 2009 and 2008 as compared to their expressive 2007. Despite of some downturns in 2008 and 2009 due to the global business crisis, the year 2010 shows interesting trend. From the gathered information, it is anticipate that in 2010 some(prenominal) the revenue and net income of OSIM wi ll be constantly moving upward. aim 2. Summary of Profitability Ratios(Prices are in SGD)OSIMSanyo OmronSource http//www.ft.comFrom the given situation and results of revenue and net income of OSIM, the company not only needs to evaluate their business strategies but also the political, economic, and cultural factors of their host country i.e. Singapore. It is not whether the business is in a market oriented status or not. The business norms in Singapore have been changing and are sightly more compatible with international codes and norms after a series of economic reforms (Barton, D., Newell, R. Wilson. G. 2002). Given the nature of the Singapore economy and the large voltage of the market, doing business with Singapore requires a continuous process of learning, caution for instability, and flexibility to find out opportunities. In ground of gross margin, OSIM surpasses both Sanyo and Omron. Despite of the large market of Sanyo and Omron, OSIM was still performing expressively .Liquidity and Debt RatiosIn financial analysis, the balance sheets of company reports conform to the financial ratios (see Appendix for the complete details of balance sheets of OSIM). The map of ratios is to find out how profitable the company is, we can calculate if company has enough liquid resources to pay its creditors, employees and finance charges. It is a useful to shareholders to find out their value of shares. Ratios are most powerful and simplest tool to evaluate companys performance and its reasonedity (Riahi-Belkaoui, A 1998).Atril Mclaney (2004) stated that by calculating a relatively small number of ratios, it is often possible to build up a reasonably good picture of the position and performance of a business. Ratios help to highlight the financial dominances and weaknesses of a business, but they can not, by themselves, explain why certain strengths or weaknesses exist, or why certain changes occurred. Just by details investigation will find the reasons. Ratios can be grouped into certain categories each of them identifies a particular facet of financial performance or, position. In this part of the paper, well be considering the liquid ratios and debt ratio of OSIM.Liquidity ratios show how quickly the company can come across its short-term contracts using its current assets (Riahi-Belkaoui, A 1998). The following ratios are needed to determine the status of liquidity of the firm under analysisCurrent Ratio andQuick RatioEach of them are calculated for OSIM as followsThe current ratio shows the ability of the company to pay its liabilities, i.e. debts and payables during the period (Pike, R Neale, B 1999). It is expressed asAs an alternative to the use of the current ratio, which may include financial statement items that are not tardily liquidated and have uncertain liquidation values, the quick ratio does not include inventory in the computation of liquidity (Pike, R Neale, B 1999). In formulaFigure 3. Summary of Liquidity and D ebt RatiosOSIMSanyo OmronSource http//www.ft.comIt is evident in the computations that OSIM was always in good position to meet its short-term debt for the years 2007, 2008 and 2009 compared to 2005 despite of the global crisis. This means that OSIM is always bale to meet their current liabilities using their current assets (cash, inventory, receivables) as compared to both Sanyo and Omron. The figures are not high so as to make the shareholders fear that the assets of the company are not working to grow the business, and not low so as to drive creditors away with mention to the level of risk present. Since quick ratios are perceived as a sign of the companys financial strength or weakness, the figures in the previous table shows the relative stability of the financial strength of OSIM. A higher(prenominal) number would indicate stronger financial performance, and a lower one means weaker performance.Apparently, the high financial leverage ratios of OSIM take into account an impli cation that the organisation is solvent in the long-term. With this regard, the debt ratio shows the OSIMs position to meet its long-term obligation or liabilities. Debt ratios are dependent of the companys classification of long-term leases and other items as long-term debt (Pike, R Neale, B 1999). Pike, R Neale, B 1999, stated that this is the gauge with which the financial strength of a company is a sign of the ratio of capital that has been funded by liability, counting preference shares.A higher debt ratio (which means the company has low equity ratio) does not give the firms creditors the security they require from an organisation (Pike, R Neale, B 1999). The firm would, as a result, find difficulty in raising supplementary financial support coming from outside sources if the firm wishes to take such action. Therefore it heralds that the higher the debt ratio, the harder it is for the company to raise funds from the outside.Market ShareFor the recorded 2007-2009 business p erformance of OSIM Holdings Limited, the company generated a worldwide group turnover of around SGD 477 million. This is an expressive market share in global home health-care products business. In Singapore, Hong Kong and Taiwan which is OSIMs largest markets, their combined domestic sales accounted for 85.6 per cent. of their Groups revenues. In Singapore, IPS Brothers Enterprise Pte Ltd and Goh Joo Hin Pte Ltd market akin home health-care products under the brands of Oto and Lifestyle venerateively (Osim International Ltd. 2009). In Hong Kong, National and Omron are OSIMs competitors. In Taiwan, there are many retailers in the home health-care products industry and OSIM do not consider any company as a major competitor to them (Osim International Ltd. 2009).Actually, the claim of OSIM is valid since there are no published statistics or official sources of information on companies engaged in the retail and distribution of home health-care products in their primary markets, thus, t he company are unable to determine their market share. However, the company assumed that they are one of the leaders in Asia in this business based on 2 market surveys in 1999 which they had commissioned international survey firms, The Gallup Organisation and ACNielsen (China) Ltd (ACNielsen), to undertake to determine their market positions in Singapore and Hong Kong respectively. The Gallup Organisations survey revealed that in Singapore, OSIM is the number 1 brand for electronic home health-care products when compared to other brands like National, Omron, Oto and Lifestyle, in harm of the following (Osim International Ltd. 2009)brand awarenessmarket shareperceived image in terms of quality, trustworthiness, brand preference, technology, designs andfeatures, range of products, customer service and value for money.On the other hand, the ACNielsens survey revealed that in Hong Kong, OSIM was also number 1 in terms of boilersuit brand preference for massage chairs, foot reflexology rollers, pulsate massagers and pulse monitors (Osim International Ltd. 2009). Actually, in the ACNielsens survey, OSIM was compared with brands like National, Oto, Sharp and Philips.SWOT AnalysisWith respect to the given information in the company website, the following presentation will show the SWOT analysis of OSIM. Actually, SWOT analysis can provide a framework for identifying and analyzing strengths, weaknesses, opportunities, and flagellum. This can also provide an impetus to analyze a situation and develop suitable strategies and tactics, a basis for assessing sum of money capabilities and competences. Moreover, this can provide the evidence for, and cultural key to change and a stimulus to participation in a group come.StrengthsWide experience in prunes market as they have been in the business for well-nigh 42 years now, their directors can consider their experience in in operation(p) venture as strength.Reasonable price offerings of products and services- since they able to keep their overheads low, this allows them to have better control of their prices. This is considered strength because naturally, people would font for a reasonably-priced gear up to stay in that equally do not sacrifice service and product quality.Already has developed a good reputation for value for money since they have been operating for great number of years, they already have built a name for themselves, attracting a number of loyal customers along the way. full(a) industry skills the directors of different divisions of OSIM are natural for the business that they ventured into, both being outgoing and friendly, the most important public relation skills that clients look for.WeaknessesAlthough, the company has seen much strength, OSIM also encompasses some weaknesses.One of its weaknesses is the declining confidence of some of its shareholders. heretofore though the group was successful, some of the shareholders are not confident due to the current crisis. The com pany should create ways to address this weakness. other weakness of OSIM is their inability to have a system that will enhance their marketing and distribution processes. The advancement of technology nowadays is one of the weaknesses of OSIM. Although the company are now adopting different advance technologies, the room for emendment are still open. Thus, it is suggested for the group to have focus in their research and development department.Actually, the group was expressively dominating in the market of Singapore but with regards to the current global financial crisis, OSIM are dragged by the current qualify of the country as seen in their financial ratios. Thus, some other form of their weakness is their mutual bond to the economy of Singapore. However, if economic growth grows at a rate greater than inflation, then the total of business earnings should be dragged along as well.OpportunitiesTo increase profitability in the face of change magnitude demand for their business offerings this opportunity came from the social areas in the rise in the number of population and changes to consumer preferences.To better improve business performance due to the presence of more competitors, they have the opportunity to develop the business core competencies so that they can still get ahead of the game.To expand business coverage through excellent management and marketing activities, the OSIM could enlarge the business, not only increase the size of the physical facilities and improve offered amenities, but also to expand market scope, possibly to other countries.ThreatsContinued increase in the number of competitors. Increase in competition would mean tougher business development. inability to cope up with modern developments this serves as a serious threat, as the competitors have shown that they have the capacity to include modern technology in their services and products offerings.Aggressive competitors as seen in the current environment of Singapore, the re are legion(predicate) businesses that offer services and products similar to OSIM. This is, off the bat, the most aggressive competitor that the business has to face for the time being, aggressive with respect to the quality of product and services offerings.Porters Five ForcesA Five-Force model (see Figure 4) was conducted in the context of the global cosmetic industry. Despite being a market leader, OSIM is not yet resting on its laurels of success, but instead, continuously innovating and developing their company in order to maintain what it has managed to achieve up to this time. Thus, they have constantly formulated militant strategies in order to get wind this. Forces outside the industry are significant primarily in a relative sense since outside forces usually affect all firms in the industry, the key is found in the differing abilities of firms to deal with them. The most dominant strategic management paradigm in recent years is known as the strategies model (Fredrick son 1991). The state of competition in an industry, in this case the apparel industry, depends on five basic competitive forces, which will be here.The strength of the competitive forces in an industry determines the peak to which the inflow of investment occurs and drives the return to the free market level, and thus the ability of firms to sustain above-average returns. The underlying anatomical structure of an industry, reflected in the strength of the forces, should be distinguishable from the many short-run factors that can affect competition and profitability in a transient way (Porter 19983). For instance, variations in the economic environment over the business cycle talk through ones hat the short-run productivity of the retailing industry, as can material deficiencies, strikes, and the like. Even though such factors may have strategic implications, the focal point of the analysis of industry structure is on categorising the basic, fundamental features of the industry ro ot in its economics and technology that shape the arena in which competitive strategy must be set (Porter 1998).The five competitive forces suppliers, buyers, competitive rivalry among firms currently in the industry, product substitutes and potential entrants to the industry reveal the fact that the competition in the home health-care goes well further than the already existing business (Davies Lam 2001). Customers, suppliers, substitutes, and potential entrants are all competitors to firms in the industry and may be more or less giving depending on the particular circumstances (Porter 1998). All five competitive forces mutually establish the amount of industry rivalry and productivity, and the most influential forces are prevailing and suitable decisive in terms of strategy formulation. In OSIMs case, even them who have a really well-built market leadership in the home health-care products industry where entrants have little or no threat will receive small returns on their profits if it has to face a superior quality and lower-cost alternative.Figure 4. Porters Five Forces ModelIndustry Competitors. In the global business industry, regulatory and technological changes are the main catalysts, making entrenched competitive structures obsolete and mandating the development of new products, new processes, new strategies, and new public policies toward the industry under analysis. Financial centres, in active competition with each other, have undergone further regulatory change in their efforts to capture a greater share of international trade in financial services, even as common efforts at the regional and global level have tried to support safety and soundness and a reasonably level competitive playing field. Basically, there are legion(predicate) cosmetic players in the industry, included in the list is OSIM, who strive for market leadership in all their business aspects. As such, the level of industry competition is very stiff and very aggressive.Pot ential Entrants. Natural barriers to inlet in the global apparel industry include the need for capital investment, human resources, and technology and the importance of economies of scale. It also includes the role of contracting costs avoided by a close relationship between the vendor and its client, which in turn is related to the avoidance of opportunistic behaviour by either party. The competitive structure of the industry indeed depends on the degree of potential competition. This represents an application of the contestable markets concept, which suggests that the existence of potential entrants causes existing players to act as if those entrants were already active in the market. Consequently, pricing margins, product quality, and the degree of establishment in this industry exhibits characteristics of intense competition even though the degree of market concentration is in fact quite high.Buyers. Home health-care products have a long historya history rich in product dive rsity, international scope, and, above all, continuous change and adaptation. These competitive changes have forced adaptations, and in general have improved the level and efficiency offer to clients, thereby increasing transactional volume. Coupled with these, the customers have become informed concerning clothing products that OSIM-like companies offer. They have required that service providers meet their very specific individual needs, therefore showing that clients to this industry have shaped what it is right now. This means, on an overall note, that buyers have a high influence on the workings of the global industry pertaining to home health-care products, as they have the ability to affect it.Suppliers. The suppliers to this industry are mainly the providers of technology and materials in home health-care firms use in the conduct of their businesses. There is an enormous variety of new hard and emollient technologies at work within the state industry. Hard technologies inclu de advances in telecommunications, computers, analytics, software tools, and video communications, which are enabling participants to have better information at lower cost to integrate this information with thinking, communication, and analysis and, finally, to use the resulting knowledge along with other technologies to distribute services to clients more efficiently, effectively, and economically. dotty technologies, or financial innovation things like, say, the use of derivative instruments such as interest rate and currency swaps often use these hard technologies to second thought the delivery of services. Out of these hard and soft technologies have come the securitisation and globalization movements so often talked about in the press. From the above enumeration, it could be said that suppliers significantly affect the cosmetic industry through their tools of trade.Substitutes. There is a high level of substitutes for the healthy and lifestyle products industry, evidenced by the numerous numbers of major players in the global market. The cost to transfer to another beauty firm is also relatively low, so the substitution rate is pretty high.ConclusionThe results of the analysis carried out on performance, financial and marketing indicated very significant effects on business sustainability, even amidst the threats of unrest. Therefore, we could argue that the business strategies such financial and marketing could still be expected to improve business sustainability faster than average.The review of financial capabilities and resources towards business sustainability revealed very little inconsistencies regarding its strategies. This is coherent with its traditional inside-out approach. However, the need to reconcile both the inside-out and outside-in approaches becomes imperative now for marketing.Moreover, it can be said that OSIM is a company whose financial situation is stable and highly likely to improve in the years to follow. To sustain their dev elopment, the company should regularly assess the value of their portfolio of its business. They have to be positioned on fast-growing opportunities, whether geographically or by market segment through choosing to invest in businesses with long-term tail-wind profiles. If the current financial situation carries on consistently, OSIM would well achieve their vision of becoming the leader in their industry and a major player in each of their market segments and key geographical markets. The comparison of the past and present performance helped in bringing out pertinent bits of information which led to the conclusion that the Singapore offices adds value and contributes significantly to the progress of the firm as a whole.ReferencesAtrill, P. McLaney, E. (2004). Financial Accounting for Decision Makers, 4th edn., Prentice-Hall, New Jersey.Ali, A. (1993). Decision-Making Style, individualisation and Attitudes toward Risk of Arab Executives, International Studies of Management Organis ation, vol. 23, no. 3, pp. 53+.Barton, D., Newell, R. Wilson. G. (2002). When Is a Good Time to Make Strategic Advances? during a Crisis, of Course. The McKinley Quarterly, pp. 77+Daroca, F.P. Nourayi, M.M. (1996). Performance rating and Measurement Issues, Journal of Managerial Issues, vol. 8, no. 2, pp. 206+.Pike, R. Neale, B. (1999). Corporate Finance and coronation Decision and Strategies, 3rd edn., Pearson Education Limited, England.Riahi-Belkaoui, A. (1998). Financial Analysis and the Predictability of Important Economic Events, Quorum Books, Westport, Connecticut.Osim International Ltd. (2009) Company Report. Accessed January 12, 2010 from OSIM Ltd. (2010). About Us. Accessed January 12, 2010 from http//corporate.osim.com