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Swisse – China Ying Zhang

Swisse – China

Ying Zhang

Company Overview
Company Overview

Swisse is a health and wellness company with a mission to help people celebrate life every day (swisse.com.au)

vitamin and supplement industry

Focus on people, passion and principles

Company Overview • Swisse is a health and wellness company with a mission to help people

Products focus on three principles Target all ages people

Competitive advantage

Competitive advantage • Market saturation: 22.3% • Competitors – Blackmores 21.3% – Natures Own 9.9% •

Market saturation: 22.3% Competitors

Blackmores 21.3% Natures Own 9.9%

Positive operating environment

Growth within Australian supplements industry is predicted to slow within the next five years

(IBIS World, 2015)

SWOT-Internal analysis
SWOT-Internal analysis

Strengths

  • 1. Enterprise operation experience (since 1960s)

  • 2. Large populations create incredible opportunity and future potential buying power. (Large demand)

  • 3. Cheap labor & Plenty of natural resource.

  • 4. Accelerated economic growth, including GNP, and comprehensive national strength.

  • 5. Overseas-funded enterprises are granted equal status as domestic enterprises for taxes, sales, transportation, purchase, distribution and operation.

Weakness:

1. Without a reliable local Chinese partner the supply chain into the domestic

and to factories is too long to manage. 2. The education level just reaches the middle stage than other developing countries.

SWOT-Internal analysis SWOT-External analysis
SWOT-Internal analysis
SWOT-External analysis

OPPORTUNITIES:

1. Equity and contractual ventures provide quicker access to the market. Partners in China can help with the bureaucracy, customer base, and distribution.

2. As a leader of APEC will create the world’s biggest free trade region for developing countries in Asia by 2020.

THREATS:

1. Effectiveness of investments in china will only be evident in the long-run and policies make it hard for non-China companies to make money.

2. Cultural differences and tradition can cause of many business conflicts. For instance, advocate collectivism and not individualism, citizens in china have a long-term view and the rigid educational systems stifle individualism

3. Uncertain advertising market. Strict advertising rules that ban superlative

claims and comparative advertising.

China Overview

China Overview  GDP reaches 10.36 trillion US dollars in 2014  The World largest population,

GDP reaches 10.36 trillion US dollars in 2014 The World largest population, total 1.364 billion in 2014, 14% of population are over 65 (Worldbank,

2014).

Increasing demand of health care products

China Overview  GDP reaches 10.36 trillion US dollars in 2014  The World largest population,

Source from: https://www.atkearney.com

Life Expectancy is 73 years Lower currency exchange rate

PESTLE Analysis
PESTLE Analysis

Political

Communist Party of China ‘Third Plenum’ was released

Withdrawal of government intervention in markets

Limiting government bodies being able to manipulate prices & allocation of key resource

Anti-corruption drive

Equalising treatment of local and foreign enterprises

Willingness to move power down administrative chain and onto local authorities

Benefits investors and traders through increased opportunities within markets

Still a lot of officials and agencies to be dealt with (particularly in supplements industry)

Economic

Manufacturing shifting to services Investment shifting to consumption Growth has been cut from 7.2% to 7.0% Government prediction was “around 7.0%” Growth is still the largest in both the world and Asia-pacific region

PESTLE Analysis Political • Communist Party of China • ‘Third Plenum’ was released – Withdrawal of
PESTLE Analysis
PESTLE Analysis

Social and cultural environment

Masculine society Long-term relationship Environment-sustainable development

Technological environment

Revolution from “medicine” Easy and Convenient package Long-life stocking

PESTLE Analysis Social and cultural environment Masculine society Long-term relationship Environment-sustainable development Technological environment Revolution from

Recommendations

Recommendations 1. Have an expert contact or mentor with experience in doing business in China 2.

1. Have an expert contact or mentor with experience in doing business in China

2. Establish good personal relationships and have extensive knowledge of Chinese culture, protocols, and business rituals

3. Identify and control measure for corruption issues

Recommendations

Recommendations 1. Analyse previous international engagements to determine successful strategies 2. Identify solid commitment with companies

1. Analyse previous international engagements to determine successful strategies

2. Identify solid commitment with companies and the government

3. Positive and consistent marketing strategy and ensuring there's a successful distribution system