Internal Factors Strengths (S) S(1) Manufacture all it products by itself. S(2) Distinctive ingredients that are patented.

S(3) Strong brand domestically. S(4) Door-to-door distribution channel. S(5) Excellent product quality.

Weight

Rating

Weighted Score

0.05 0.30 0.20 0.15 0.10

3 5 5 4 4

0.15 1.50 1.00 0.60 0.40

Weaknesses (W) W(1) Lack of product lines. W(2) Weak packaging design. 0.10 0.10 3 2 0.30 0.20

Total

1.0

External Factors Opportunities (O) O(1) Expansion to Asia, Europe and USA O(2) Increasing popularity through Korean waves. O(3) Market share in International market

Weight

Rating

Weighted Score

0.40 0.20 0.10

5 5 3

2 1 0.30

Threats (T) T(1) Product Imitations T(2) Competition from established international brands. 0.10 0.20 3 4 0.30 0.80

Total

1.0

Positioning
Competitive Advantage Lower Cost Broad Target Differentiation

Competitive Scope

Cost Leadership

Differentiation

Narrow Target

Cost Focus

Differentiation Focus

TOWS Analysis
Strengths (S) S(1) Manufacture all it products by itself. Internal Factors S(2) Distinctive ingredients that are (IFAS) patented. S(3) Strong brand domestically. S(4) Door-to-door distribution channel. External Factor S(5) Excellent product quality. (EFAS) S(6) First mover or Korean Herbal Cosmetics. Opportunities (O) SO Strategies O(1) Expansion to Asia, Europe and USA (1) Develop and produce product special O(2) Increasing popularity through for the Chinese Market. Korean waves. (2) Strong promotion of products. O(3) Market share in International market Weaknesses (W) W(1) Lack of product lines. W(2) Weak packaging design. W(3) Bad popularity of oriental medicine amongst the young people.

WO Strategies (1) Develop marketing strategy to attract young people. (2) Launch more products range. (3) Educate customers on the products advantages.

Threats (T) T(1) Product Imitations T(2) Competition from established international brands.

ST Strategies (1) Ensure of the quality of the products. (2) Gives promotion and samples to widen the coverage of the market.

WT Strategies (1) Find niche market for oriental medicine.

Corporate Strategies
Directional Strategy Horizontal Growth through International Expansion. Joint Ventures with an established international company. Acquisition of small growing companies with good future prospects.