Swisse China

Ying Zhang

Company Overview
Swisse is a health and wellness
company with a mission to help
people celebrate life every day
vitamin and supplement industry
Focus on people, passion and
principles
Products focus on three principles
Target all ages people

(swisse.com.au)

Competitive advantage
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
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
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 worlds 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
GDP reaches 10.36trillion US dollarsin 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

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

Life Expectancy is 73 years

Lower currency exchange rate

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
Social and cultural environment
Masculine society
Long-term relationship
Environment-sustainable development

Technological environment
Revolution from medicine
Easy and Convenient package
Long-life stocking

Recommendations
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
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