Antelope tea hockhua

https://lh3.googleusercontent.com/5SunXM31f0wFOj1CrhjNbKCzYowhdQC6RHWXtkrZHqUwXxybsoEIVaxDwT6iadf-e1k0sayDmOyMyK9-fjdoZ4p5y5ktnE8H5NCRrkWOPFv2kk4E9Yuq-11oA4_HcyDx7eJF-rFf

BUSM4555

Word Count:

Student Name

RMIT ID

Lim Zhi Jin Rachel

S3709217

Kendra Nina Poh

S3709090

Lecturer’s Name

Lecture Day/Time

Friday, 12pm

Class/Group

LF, Group 68

Submission Date

31 March 2019 (Sunday), 11:59pm

https://lh3.googleusercontent.com/prylOXNGAfUiQFyKTI2rDDum37Lc8bbm-C6aqzLR6eOIBQZI8owYsLVyH32TVsbh_vHtlWROQ-XnCQY0nxfEhpwEEvxXUW0za_4acXMi3NW3TDvocRNyDcEAiQlzoUwTsB_WwVuw

1 Introduction (Denise) 3

1.1 Company Background 3

1.2 Key Milestones 3

1.3 Current Situation 4

2 External Environment Analysis (Reina & Phyllis) 5

2.1 PESTLE Analysis - Reina 5

2.2 Porter’s 5 Forces Analysis - Reina & Phyllis 6

2.3 Industry Life Cycle - Phyllis 9

3 Competitors Analysis (Denise) 9

4 Customer Analysis (Kendra & Rachel) 11

4.1 Market Size 11

4.2 Market Segmentation 12

4.3 Competitors (How competitors segment their market that differs from EYS??) 13

4.4 Underserved Segments 13

4.5 Factors Influencing Purchase Decisions 14

4.6 Opportunities and Threats 15

5 Company Internal Analysis (Reina & Phyllis) 15

5.1 Porter’s Value Chain - Reina 15

5.1.1 Primary Activities and Costs 15

5.1.2 Support Activities and Costs 16

5.2 Collaborators - Phyllis 17

5.3 VRIN Framework - Phyllis 17

6 SWOT / TOWS (Kendra & Rachel) 18

6.1 SWOT 18

6.2 TOWS 19

7 Current Company Strategy (everyone) 19

7.1 Analysis of Corporate-Level Strategy 19

7.2 Analysis of Business-Level Strategy 20

8 Recommendations & Implementation (everyone) 20

Appendices 22

References 24

1 Introduction (Denise)

1.1 Company Background

Founded in 1879, the mission of Eu Yan Sang (EYS) is ‘caring for mankind’. The Traditional Chinese Medicine (TCM) company believes in empowering individuals to live their best quality of life through accessible healthcare. EYS has been a household name for customers of across generations for its high quality and standards. As Asia’s leading TCM health and wellness company, their products combines the art of TCM and the science of medicine. (Euyansang.com.sg, 2019)

1.2 Key Milestones

https://lh4.googleusercontent.com/hbCYWU7PjCJxuk5IhMQyBpAyld1mV97sl6y1Ayl0hj01T1DVOYgLopBQG9vo7P2KlwUvi4vy3i8vq6ePkIoGgzTBYWJeZ6ubIf9PHzJCz6-QOQHpgPeRvWk-rHLsIVUY2qJBqxmr

https://lh4.googleusercontent.com/sa-CWkWzLc0Q_JtxJempJzFcN7CA4n-IgyF4v-WRtbedQ_BxyXBgPtuSvbUzouZlmIy3Uw6kd9r0I5X04dkvjYxkd7g51UpxgaPzD84flGwIO1z8p9eqsQ8GXUl0Fbsq1utKLqbz

(Euyansang.com.sg, 2019)

The above figure depicts the key milestones of EYS since its birth till present day operations.

1.3 Current Situation

Since October 2018, EYS has been distributing across 231 retail outlets in China, Hong Kong, Macau, Malaysia, Singapore and Australia. It also runs a chain of 33 TCM clinics in Singapore, Malaysia, Hong Kong and China as well as three food and beverage outlets in Malaysia.

Besides retail outlets and online stores, EYS has made their products available worldwide at drugstores, pharmacies, medical halls, supermarkets, convenience stores, hospitals, health clubs, spas and major online marketplaces. Healthy Life Group Pty Ltd is an associate company which operates in Australia, over a chain of more than 40 Healthy Life stores and a distribution business.

Today, the core strength of EYS lies within its brand name, its product line as well as its diversified distribution network. On top of advertising and promotion in print media, the company is repackaging products and refurbishing older stores to broaden the consumer base by appealing to a wider group of potential customers.

2 External Environment Analysis (Reina & Phyllis)

2.1 PESTLE Analysis - Reina

Political

Goods and Services Tax (GST)

GST is a tax imposed on domestic consumption and the current GST rate is 7%. GST will be imposed on goods and services supplied in Singapore, as well as imported goods.

Corporate Income Tax (CIT)

The corporate income tax rate is capped at 17%. The tax paid by the company on its profits is not regarded to the shareholders, which is referred to as the single-tier corporate income tax system. Since 2018, the Singapore government decided to enhance and extend CIT rebate at a rate of 20% of that tax payable that is capped at $10,000.

Economic

Singapore’s economy has grown by 3.2% in 2018 and the GDP is expected to continue growing to “slightly below the midpoint of the forecast range” (Ministry of Trade and Industry 2019, para. 1), specifically with business services growing by 2.8% and other services such as education, health and social services growing by 1.6%. On the other hand, as of 26 February 2019 (Appendix A), the Singapore Dollar (SGD) rate has decreased from 1.3495 to 1.3481 despite the central bank’s effort to strengthen the SGD. There is also a drop in Singapore’s annual inflation rate from 0.5% in December 2018 to 0.4% in January 2019, mainly due to slowed prices for electricity and gas (Trading Economics 2019), which does not affect the TCM sector.

Despite the exchange rate fluctuation, the TCM industry has been growing steadily so much so that the Ministry of Health (MOH) has decided to ‘provide additional funding for TCM research and to support skills development and capability building for TCM professionals’ (Singapore Business Review 2017, para. 1). With the increased funding of S$5 million TCM Development Grant (TCMDG) and S$5 million TCM Research Grant (TCMRG), TCM practitioners will be able to enhance operational efficiency by adopting new IT solutions and R&D activities. The applications for the grants have already been opened since January 2018. The funding is set to contribute to the growth of Singapore’s economy as it will be of expectancy that the TCM sector is to perform better since January 2018.

Socio-Cultural

TCM practitioners mainly use herbal medicines and several mind and body practices such as acupuncture, to either treat or prevent health problems. TCM practitioners have always believed that there must be a balance and harmony in the physical, emotional and psychological wellbeing, which affect the body’s internal balance. With the long history of treating injuries, TCM practitioners managed to treat more sports-related injuries as TCM has been growing steadily throughout the years. And since TCM treats people of all ages regardless you’re young, middle-aged or old, the TCM sector can tap into the increased pool of consumers as the population of Singapore has grown from 5,612,253 in the year 2017 to 5,638,676 in the year 2018 (Singapore Department of Statistic 2018).

Since health is one of the most essential things in life, most households have spent around 8-10% of their household budget on medical services (ValueChampion, 2019). On top of that, many people in Singapore suffer from neck and shoulder problems as they have spent more than 8 hours a day in the office working endlessly. These workplace injuries can worsen if not treated properly and effectively. World Health Organisation (WHO) has recognised acupuncture to be an effective treatment for pain management and TCM accounts for 88% out of the 76% population in Singapore that used complementary alternative medicine (AsiaOne n.d.).