Business Strategy
Five Forces Model of OSM (Ruini Weng, Yueyang Hu, Muxuan Zhang)
Competitive Strategy (Ruini Weng, Yueyang Hu, Muxuan Zhang)
Porter contends that for an organization to be successful, its culture, actions, and goals must be in line with its strategy. This indicates to individuals in the MIS area that the organization's information systems must support and reflect its competitive strategy.
Team 1 determined that the competitive strategy adopted by OSM is the Low-Cost focus strategy. As a traditional Chinese cosmetics, pearl jewelry, and healthcare products company for targeting female customers, OSM has successfully kept its costs below those of its peers in the market. That's why they have more buyers and suppliers.
The reason why OSM has achieved great success in China is that they not only make good use of the Internet and information systems but most importantly, they have always maintained low costs and low prices. Although the OSM industry faces some threats from the five forces analysis analyzed above, they have used their own strategies to keep the company profitable. For example, OSM's main rival is the same cheap skin care product companies on the market, so it not only sells skin care products but also makeup, accessories, health care products, etc. This makes it easier for them to attract female customers and build brand awareness. Women can buy multiple products from the same company on a low budget. In addition, OSM has set up multiple physical stores and sales outlets across the country, allowing customers to experience products and better services offline.
Value Chain (Ruini Weng, Yueyang Hu, Muxuan Zhang)
Information Systems (Ruini Weng, Yueyang Hu, Muxuan Zhang)
Regarding the structured process of OSM, take the manufacturing process as an example. OSM combines RFID, QR codes and other Internet of Things technologies with a pearl ecological cultivation management system developed by blockchain technology to establish monitoring of the entire pearl process from nursery, nucleation, recuperation, and collection. At the same time, the characteristics of decentralization, data non-tamperability, and openness of blockchain technology are used to ensure the authenticity and credibility of system data. Also, OSM has established a quality traceability coding standard that meets unified standards with the help of the industrial Internet logo analysis standard and application platform of the daily chemical industry. This platform breaks through the isolated information links and reduces the cost pressure of daily chemical product traceability.
Regarding the dynamic process of OSM, take the marketing process as an example. OSM combines the QR code marketing system with industrial Internet logo analysis, collects data information through big data technology, organizes and analyzes promotional products and consumer behavior to form a portrait. It helps OSM target customer groups, set brand concepts, track changes in market preferences, and develop new products, etc. Additionally, OSM uses Chinese social platforms such as TikTok to find well-known bloggers to promote and live online to bring goods. This not only promotes their products but also expands the brand’s customer reach. The brand can be further developed by tracking customer needs and preferences on social platforms through MIS technology. This is critical for businesses.
Product and Process Implementations (Ruini Weng, Yueyang Hu, Muxuan Zhang)
In the fiercely competitive cosmetics industry, OSM gains a competitive edge by enhancing customer service. For example, OSM has established a single website dedicated to providing product after-sales service. Products purchased online can be returned free of charge within 15 days, while others can only be in 7 days. Customers can even try before buying to maximize customer rights. Regarding process implementation, OSM adopts a method of locking in customers to give them a competitive advantage in the market. For example, OSM provides purchase benefits for new and old customers. They can buy original products of higher value for ¥0.01. This doubled their repeat business. In addition, OSM has also established alliances with multiple local Leidian pearl suppliers to further reduce costs.
Regarding OSM's differentiated service, we suggest that in addition to online advertising, OSM should also make use of social media information systems to actively strengthen the promotion of different forms of offline customer experience activities to achieve the purpose of brand marketing. For example, “opening clams to get pearls” activities can be held in various offline outlets. Customers can experience the making process of simple jewelry on site, thereby attracting more young female customers and also promoting corporate culture.