CHAPTER II DATA
Section 5: The Board of Directors responsibilities
2.8 SWOT Analysis
Figure 2.4: TOG SWOT Strength
Established presence and acceptance in the international market by other vision care industry players for over fifty years.
Certified with various internationally accepted standards such as ISO 9001:2008 for supplier or manufacturer by Bureau Veritas, ISO 13485:2012 by Bureau Veritas, ISO 14001:2004 Environmental Management System by Bureau Veritas, Carbon footprint label for Excelite 1.50 by Ministry of Natural Resources and Environment. Be accepted on a global level by other players within the vision care industry
Secured product purchase order from optical retail chain strategic partner like Specsavers Optical Group.
Strength
- Internationally accepted certifications such as ISO - Strategic partnership with Specsavers, securing order
- Strong relationship with raw material supplier able to work together in R&D
- R&D with NECTEC, Thailand - “Trivex” trademark
- bio-based optical lenses called "Leaf Eco"
-Newly automated plant for re/prescription lenses 100,000,000 unit capacity
Weakness
- Reliance on few supplier - Lacking own brand name recognition (Transitioning period to build on TOG own reputation)
Opportunity - Ageing population
- Vison care market CAGR 5.04% over 2014-2019 - Rising of digital age
- Emerging middle class
-AEC growing market esp Vietnam
Threat
- Lasik eye surgery
- Popularity of contact lenses - Intense competition
-Increase labor wages in Thailand
Strong research and development capability. TOG’s research team has been working closely with a statutory government organization The National Electronics and Computer Technology Center (NECTEC) in developing new optical products to the market.
Developed a close relationship with raw material supplier, PPG, where PPG can aid TOG in research and development department.
Through relationship with supplier, TOG holds latest technology in “Trivex”
trademark. TOG might be small in term of scale-size compare to the big three global players but TOG is the only company in the industry to own the Trivex trademark. (Trivex lenses: clarity, durability, light weight). Tribrid is also another alternative choice. (Tribrid: combinig Trivex lenses and high index lenses: clarity, durability, light weight, thin)
Offering Alternative Bio-based optical lenses called “Leaf Eco”. This type of lenses are plant based and are bio degradable unlike regular plastic lenses. This is the joint cooperation between TOG and Mitsui Chemical to bring awareness to society because this Leaf Eco lenses reduce CO2 gas emission. TOG gains awareness.
Offering complete range of optical lens products such as plastic lenses, glasses lenses, valued add lenses such as photochromic lenses, high resistance lenses and sun glasses lenses.
Implementing Rx/prescription automated machinery with estimated 100,000,000 unit of output capacity. Allowing less reliance on human labor and able to produce quality product at more competitive price.
Weakness
Reliance on only a few supplier of monomer (organic/plastic optical lenses raw material) as particular optical lenses are made from specific monomer in which that monomer is exclusively available at certain suppliers. (TOG has been able to maintain close relationship with suppliers and have never encountered problem)
Lacking its own brand name recognition under its initial excelite brand. TOG is currently on a transitioning period to build on TOG own reputation as a house brand as well as restructuring lenses products into distinctive categories and brands. This will promote brand recognition and match between brand and customer life style.
Opportunity
Ageing global population trend especially in US and Europe.
The growing vision care market of the US which expected to increase at a CAGR of 5.04% over the period 2014-2019.
The rising of digital age is an opportunity. According to source, the average time usage on computers has increased by 65% over the past five year in the US.
Moreover, the intense and constant usage of television, tablet PCs and smartphones creates visual stress where the blue light emitting for digital devices is harmful to retinal cells of the eyes. In the UK, average users pick up their smartphone approx. 221 times in one day. (Increased digital exposure on the eyes).
Changing life style on being more electronic device dependency and heavier user of smartphone or devices. This open up more growth in subsector of protective eyewear (such as blue light cut lenses) as oppose to corrective eyewear (such as prescription lenses).
Emerging middle class with higher purchasing power.
AEC growing market especially Vietnam market where TOG is perceived by local consumers as premium quality lenses. (Vietnam, Malaysian and Singapore).
Threat
Growing popularity of Lasik eye treatment surgery. However, the procedure cost and inferior technology are still a barrier to some eye care segment consumers.
Growing popularity of contact lenses especially in Japan and Korean. From the optical vendor perspective, contact lenses are only viewed as complement product in optical store and are not immediate threat.
Intense price competition from China on standard plastic CR-39 lenses. (China’s products are consider inferior on quality aspect and TOG aims to combat price aspect by implement lean manufacturing to reduce company’s product cost)
Unstable economic policy in the United State with the newly elected president.
TOG has recently focuses more in expanding market in the United State. Thus, the company should be aware of any changing policy that might relate to TOG’s exportation.