NATIONAL ECONOMIC UNIVERSITY

SCHOOL OF ADVANCED EDUCATION PROGRAMS

GROUP ASSIGNMENT
GLOBAL BUSINESS STRATGY
Class: International Economics 62A
Group 6

TOPIC: ANALYZE ACECOOK’S BUSINESS STRATEGY

Member: Nguyễn Gia Linh 11202176

Trần Thị Ngọc Anh 11200398
Bùi Thanh Mai 11202435
Hà Thái Thúy Nga 11202699
Hồ Huyền Linh 11202125

Ha Noi – April 2023

Contents
CHAPTER 1. INTRODUCTION ................................................................................................ 3
1.1. Foundation history............................................................................................................3
1.2. Vision .............................................................................................................................. 4
1.3. Mission ............................................................................................................................ 4
1.4. Acecook Vietnam on the international market ..................................................................5
CHAPTER 2. ANALYZE EXTERNAL AND INTERNAL ENVIRONMENT ........................... 6
2.1. External environment .......................................................................................................6
2.1.1. Political and legal environment .................................................................................. 6
2.1.2. Economic environment .............................................................................................. 6
2.1.3. Cultural and social environment................................................................................. 6
2.1.4. Technology environment ........................................................................................... 7
2.1.5. Natural environment ..................................................................................................7
2.2. Internal environment ........................................................................................................8
2.2.1. Strengths ................................................................................................................... 8
2.2.2. Weakness .................................................................................................................. 8
2.2.3. Opportunities .............................................................................................................9
2.2.4. Threats ...................................................................................................................... 9
CHAPTER 3. ANALYZE BUSINESS STRATEGIES .............................................................. 10
3.1. Diversified development strategy ................................................................................... 10
3.2. Broad Differentiation Strategies ..................................................................................... 12
3.3. International strategy ...................................................................................................... 14
CHAPTER 4. COMPARE BUSINESS STRATEGIES ............................................................. 15
4.1. Compare business strategies Acecook in different markets ............................................. 15
4.1.1. In Thailand .............................................................................................................. 15
4.1.2. In China ................................................................................................................... 15
4.1.3. Differences between business strategies in Vietnam and other markets .................... 15
4.2. Compare business strategies with other rivals in the same industry ................................. 16
4.2.1. Similarities .............................................................................................................. 16
4.2.2. Differences .............................................................................................................. 16
 CHAPTER 1. INTRODUCTION
Acecook is a Japanese multinational company specializing in the production of instant
noodles, condiments and foods. Acecook has 2 overseas subsidiaries, Acecook Vietnam
and Acecook Myanmar. To date, this brand has been present in 47 countries and territories
including Japan, China, Vietnam, the United States, Australia, Europe ... However, the
most successful of the group is still in the Vietnamese market.
The company’s Headquarters is: Osaka Kamiya Shinmido Building (1-12-40, Itacacho
Ward, Suita District, Osaka City).
Subsidiary company: - Acecook Vietnam Joint Stock Company. - Acecook Myanmar
Limited Liability Company
ABOUT ACECOOK VIETNAM
1.1. Foundation history
Established on December 15, 1993 and officially put into operation since 1995, after many
years of operation, Acecook Joint Stock Company has continuously grown to become a
leading general food company in Viet Nam.
1.2. Vision
“Acecook Vietnam will develop into a producer of general foods, expand into a worldwide
exporter and a global Vina-Acecook, actively participating in exhibitions and fairs in
country and abroad, conduct advertising activities for consumers around the world to trust.”
1.3. Mission
"The symbol of quality" is the motto that the company has set out from the very beginning
and has remained steadfast throughout its development. Acecook Vietnam's products are
always carefully assessed for delicious quality, hygiene, high nutrition... Acecook
Vietnam's manufacturing plants are all equipped with modern equipment to ensure the
production of products meeting international standards.”
1.4. Acecook Vietnam on the international market
Acecook with the desire and effort to be a bridge to promote Vietnamese cuisine to the
world. Acecook Vietnam's products are of high quality, produced according to advanced
Japanese technology with a variety of types and models, meeting the needs of convenience,
taste and real price, suitable for many different customers, has been known and favored by
consumers in more than 30 countries around the world.
Acecook products have been exported to many countries around the world:
 Asia: Singapore, Malaysia, Indonesia, Cambodia, Philippines, Laos, Kôea, Taiwan,
Hongkong, Brunei, Afghanistan.
 Europe: UK, France, Germany, Russia, Netherlands, Sweden, Hungary, Norway.
 Americas: United States, Canada, Brazil, Suriname, Trinidad, Tobago.
 Australia: Australia, New Zealand.
 Africa: Kenya.
 And countries in the Middle East.
CHAPTER 2. ANALYZE EXTERNAL AND INTERNAL ENVIRONMENT
2.1. External environment
2.1.1. Political and legal environment
In our country, the economy is a market economy with the regulation of the State, so the
role of the state in the production and business activities of enterprises is very large.
Vietnam is a country with a strict regulatory regime, having the most politically stable in
Asia. That attracts the attention of investors, in addition, the policy of expanding the market
and stimulating investment helps businesses approach more customers. Before 1995,
Vietnamese law did not allow the establishment of companies with 100% foreign capital.
Over the years, Vietnam has issued many documents, laws, circulars and decrees that have
created a basic legal corridor for business activities. Although the legal system has many
shortcomings and limitations, thanks to legal provisions such as: copyright protection law,
anti-counterfeiting and counterfeiting law, environmental protection policy helps
businesses create gain trust and maintain the brand in the hearts of customers
2.1.2. Economic environment
Vietnam's economy has taken steady steps and developed steadily in recent years.
The stability of the economy creates favorable conditions for the development of the
domestic economic sector, including the fast-food industry to serve the increasing needs of
the people and society.
The high growth of the economy leads to an increase in per capita income, leading
to improved living standards of the population. Because of that, people's living and eating
needs are also higher, they will choose safe foods such as organic food to ensure their
health instead of choosing food. Ready-to-eat foods contain preservatives. That also causes
the performance of companies in the fast-food industry to decrease, revenue to decrease
and to face many different risks and challenges.
Interest rate: Interest rate is also an important factor affecting the production and
business activities of Vietnamese companies. Over the years, interest rates have been quite
stable. Although the instant noodle industry has a large scale of investment capital, it is
still an industry with a very large consumption rate, a stable interest rate will attract
investors to this industry, making the supply of instant noodles products less expensive.
increasingly rich, diverse models, quality, reduce costs, increase competitiveness.
Therefore, it is required that enterprises need to build technical facilities, train human
resources, improve products and designs as well as prepare well other factors to compete
with competitors.
2.1.3. Cultural and social environment
Vietnamese consumers prefer to keep their national traditions. Therefore, these
product strategies that hit this mentality will easily succeed. On the other hand, Vietnam
has more than 90 million people, population density is increasing, especially in big cities,
young population structure, large number of people of working age. Therefore, Vietnam is
a market with abundant labor resources, cheap labor and also a promising consumer market
for the instant noodle industry. This has made Vietnamese businesses pay more attention
to the domestic market with a fairly wide distribution system present in almost all
localities.
There are always differences in taste between different countries, because each
country has its own unique culinary culture. When developing in the Vietnamese market,
businesses must have a team of Vietnamese product research and development experts to
thoroughly and clearly understand the culinary preferences of each region, thereby creating
a harmonious combination. suitable flavors to develop products that are well received by
consumers.
The fast pace of life of Vietnamese people today is a more modern lifestyle. After
working hours people participate in many sports and social activities... Therefore,
consumers love to consume. products that can be used quickly. Meeting the needs of all
business objects will have the right direction of development and bring profits.
2.1.4. Technology environment
Currently, technology - techniques are developing very quickly, changes in
technology, especially in the production line of instant food, are of concern. Technological
advances create new competitive advantages that are stronger than existing ones.
Therefore, companies with strong capital can import advanced equipment and production
lines that will improve product quality and price reduction, beautiful product designs,
bringing competitive advantages. Currently, Vietnam's communication technology has
been developing very strongly, helping businesses promote the image of the company's
products more easily to consumers in many different ways: advertising on the Internet, on
television, advertising shows
2.1.5. Natural environment
Geographical location: Vietnam is located at the extreme southeast of the
Indochinese peninsula. Vietnam borders with the Gulf of Thailand in the South, the Gulf
of Tonkin and the East Sea in the East, China in the North and Laos. and Cambodia to the
west. S-shaped territory with a length of 1650 km, a coastline of 3620 km. Thanks to
Vietnam's favorable geographical position, businesses can easily trade with partners
nationwide as well as in the region and around the world by land, waterway and air.
Population: Vietnam is a developing country with a population of about 98 million
people. Therefore, this is a potential and promising consumption market, as well as an
abundant human resource with low labor cost. Increased urbanization also means an
increase in living standards and a significant increase in the demand for food. In today's
high-tech era, most people are busy and don't have much time for cooking. Therefore,
instant noodles are obviously the optimal choice because of their low price and
convenience. Target customers of fast-food companies are pupils, students, office workers
and employees.
Climate: With the tropical monsoon climate hot and humid, the localities in the
Central region often suffer from storms and floods in the rainy season, instant noodles
become a relief dish for the people. Therefore, the market for instant noodles in the rainy
season is very active.
2.2. Internal environment
2.2.1. Strengths
Modern Japanese technology, advanced production lines: Japanese technology transferred
from Acecook Japan. Modern Japanese technology to produce high-tech instant noodles in
Vietnam since 1994. The company constantly increases the degree of automation, invests
in modern production lines with high operating capacity, can produce produces nearly 600
packages of noodles per minute, and is equipped with quality control systems to provide
customers with products of optimal standards. Manufactured with modern lines and
Japanese technology to ensure health and safety with a commitment to "symbol of quality"
Diverse products, affordable quality: In addition to minimizing processing time, low cost,
deliciousness and enough energy are the typical strengths of instant noodles. With those
same conveniences, we can easily find instant noodles packages in any Vietnamese family
from urban to rural areas, from mountainous areas to plains, and it's also in the luggage of
people who want to stay away from home. go abroad for work, travel, study abroad, etc
Although the market is increasingly diversified, brands produce and supply food and
instant noodles like Acecook. But Acecook products still have a certain position when
customers make a choice of instant products in the market.
There are many sales policies: Achieving certain successes, but Acecook Vietnam is not
satisfied, constantly investing in improving and innovating technology, building factories,
expanding production scale and special Especially, constantly developing Marketing
activities, organizing promotions to show gratitude to our customers.
2.2.2. Weakness
Nutritional quality is not reliable: A complete instant noodle product usually
includes 2 main ingredients: noodle extract and accompanying seasoning packages.
Depending on the type of product and flavor, the accompanying seasoning packages may
include one or more types of seasoning packages: soup packs, seasoning oil packs, dried
vegetables packs. Since there are preservatives in it to keep the product out of date,
customers are often apprehensive about the choice
The investment in production, marketing, research and development of new products is
quite slow and affected by the previous way of doing things managed by the state before
turning into a joint stock company.
The relationships with suppliers to ensure the source of raw materials for the production of
products have not been noticed. Therefore, raw materials have not been fully and promptly
supplied, causing continuous interruptions in the production process
 2.2.3. Opportunities
Regarding the consumption market: Opportunity to exploit new market segments
such as expanding the domestic market.
New products hitting the market will be quickly known.
Products with new production technology and flavors, so the product consumption is very
high
2.2.4. Threats
Besides the advantages that the company has gained, there are also many difficulties
and challenges that Acecook needs to overcome in order to stay firmly on its development
path.
Challenges due to fluctuations in input material prices: Since raw materials account for a
large proportion of product costs, fluctuations in raw material prices will greatly affect the
company's profits.
Economic risk challenges: Economic growth and per capita income have an impact on the
consumption of products. When the economy grows strongly, people's income is high, and
material life is guaranteed, the demand for improving nutrition of foods also increases.
When the economy falls into crisis, people's income declines, the instant noodle industry
will also be affected.
Legal challenges: The fast-food industry is highly competitive. Products must be constantly
changed to meet the new needs of the market. With that condition, the occurrence of
commercial disputes, design copyrights, etc. with competitors in the same industry is
something that the company cannot avoid. This is also an important issue, protecting the
interests of customers as well as the reputation and brand of Acecook, especially when
Vietnam is in the phase of integration with the world. In addition, Acecook operates under
the corporate law, so any change in the Enterprise Law will also affect the company's
production and business activities.
Challenges due to counterfeit goods of poor quality: Like some other developing markets,
the Vietnamese market is still heavily affected by counterfeiting. Counterfeit goods,
including famous instant food such as: Acecook, chinsu food, ... with origin from Vietnam
and China sell both real goods, and sometimes through a system of official distribution
agents. to consumers, causing a significant impact on the company. Over the years, the
prevention of counterfeit and poor-quality goods has had certain effects and is being
thoroughly overcome, creating confidence for consumers when buying products. The
above are general assessments of product decisions that Vina Acecook Vietnam has
achieved in recent years. There are certainly still shortcomings that the company needs to
take care of in order to take remedial measures to further improve its product policies
 CHAPTER 3. ANALYZE BUSINESS STRATEGIES

Acecook's business strategy: there are 3 main strategies: Broad Differentiation

Strategies, Diversified development strategy, and international strategy.

3.1. Diversified development strategy

Acecook has continuously researched and developed every year and provided the market
with more than 50 product types with nearly 200 different flavors in the industries of
noodles, vermicelli, pho, stewed meat, porridge, cooking oil, soy sauce and soup.

Strategically diversifying products with the slogan "Instant noodles satisfy all tastes",
Acecook Vietnam has launched many types of products, whether exported or domestic,
with consistent quality to meet the needs of customers’ taste.

For regions, Acecook offers different types of products:

- In the North: Prefer to eat protein, light, frugal, combined with a little sour.
Vegetables and aquatic products are popular in the North. The spices are moderate,
not spicy like the Central region, not as sweet and sour as the South, so it is suitable
for Hao Hao noodles with spicy shrimp flavor, De Nhat beef noodle soup, Hao Hao
noodles with onion flavor, and pho Chicken Good.

Picture 3.2 - Products suitable for the North of Acecook

- In the South: The common taste is sweet, fatty. They use a lot of sugar and coconut
milk to process the dish. Normally, Southerners don't like the neutral taste, sweet,
fatty, spicy must reach the extreme. Therefore, the company develops products of
Nam Vang flavored dry noodles, pork rib noodles, Hang Nga noodles with fish
sauce.
 Picture 3.3- Products suitable for the South of Acecook

- In the Central region: The taste of the Central region is both spicy and salty, so Vina
Acecook has launched products such as Siukay instant noodles, Da Nang Quang
noodles, Hang Nga noodles with Hue beef flavor, and pork noodle soup.

Picture 3.4 - Products suitable for the Central region of Acecook

Acecook Vietnam dominates the majority of the market, holds the role of market leader in
Vietnamese instant noodles, and is honored to be the typical representative of Vietnam at
the World Instant Noodles Association. Become a leading company in the food processing
industry. Since its establishment, the company's sales have always grown by 85% annually.
3.2. Broad Differentiation Strategies

Broad differentiation strategies involve offering unique products or services that appeal to
a wide range of customers. Companies using this strategy aim to distinguish themselves
from competitors through quality, features, innovation, customer service, or brand image,
rather than competing solely on price. Acecook applied this strategy in the early stages but
still has a positive impact on the company's revenue to the present time.

● Brand image:

Regarding product brands, “Hao Hao” is a short, easy-to-remember brand. “Hao” refers to
goodness and perfection in life. This brand is also a great combination of modern
technology from Japan and unforgettable flavors typical of Vietnam. The brand is simple
but very effective, making a strong impression on consumers and capturing customer
psychology.

In the early 90s, Vietnamese consumers began to get acquainted with and favor foreign
cultural products. Acecook goes in a different direction with a unique business strategy.
That is bringing instant noodle culture from Japan to Vietnam. Instead of using that foreign
recipe and flavor to attract consumers, Acecook chose to adapt to local culture. At the same
time, conquering the taste of Vietnamese people with Vietnamese flavors and Japanese
technology.

The Company's first product sold to the market was pho noodles. Next is Hao Hao spicy
and sour shrimp noodles inspired by sour soup, which also is the most well-known product.
This success is due to carefully researching tastes, conveying traditional flavors to
"Vietnamese" Japanese instant noodles into Vietnamese noodles. Up to now, nearly 20
years since Hao Hao was born, this is still a popular product, Acecook Vietnam's best seller
with nearly 200,000 barrels per day, contributing more than 50% of the company's sales
each year. Hao Hao is always a key product contributing about 60% of the company's
revenue, the rest belongs to other brands such as Phu Huong Vermicelli, Pho De Nhat, Bun
Hang Nga... Comment “Hao Hao is a national noodle brand is right” when in 2020,
Acecook launched a jar of Hao Hao dipping salt with spicy and sour shrimp flavor, which
was warmly received.

● Quality Ingredients:

Input materials are selected and strictly evaluated according to the following 3 criteria:
Establishing raw material standards with full biomechanical and biochemical properties
(sensory, physicochemical, microbiological, metallic, etc.), meeting food hygiene and
safety standards according to domestic and international food laws international.

100% of imported raw material batches are inspected and quality controlled before being
put into production based on established quality criteria.
Acecook Vietnam commits that 100% of products reaching consumers are products that
meet quality standards and ensure health. Acecook’s products have been certified by the
Department of Food Safety – Ministry of Health, meeting Vietnamese standards TCVN
7879:2008

- Why consider this strategy as the main strategy? This is the main strategy of the
business because it has helped the business create a solid foothold in the market, almost no
other business has achieved greater revenue.

A broad differentiation strategy aligns well with the nature of the food industry, aids in
building a strong and globally recognized brand, provides a sustainable competitive
advantage, fosters innovation, builds customer loyalty, and helps mitigate risks. These
factors collectively make it an attractive main strategy for Acecook.

- Why did Acecook choose this strategy? Because when operating in the food industry,
Acecook needs a product that impresses and suits the taste of the majority of consumers.
A differentiated product strategy is the most suitable strategy to do this and it is difficult
for a business's competitors to create products with the same taste.

Results of applying that strategy (positive aspects and limitations to the company's
business activities)

Some positive and limited results when applying Acecook's Broad Differentiation strategy:
● Upsides:
- Building the Acecook brand in the Vietnamese instant noodle market. Officially put
into operation in 1995, Acecook has successfully built the Hao Hao noodle brand to
become Vietnam's national noodle, accounting for the largest instant noodle market
share in the country. Accordingly, Hao Hao continues to be honored to be ranked
No. 1 in the list of the most chosen packaged food brands in urban areas (4 main
cities) in Vietnam and is certified as a " The most chosen Instant Noodles Brand”
for 11 consecutive years. The report also shows that nearly three-quarters of urban
households purchased Hao Hao instant noodle products in 2022.
- This is a product whose revenue accounts for the majority of Acecook's total
revenue. Hao Hao is always a key product contributing about 60% of the company's
revenue, the rest belongs to other brands such as Phu Huong Vermicelli, Pho De
Nhat, Bun Hang Nga...
● Drawbacks:
- Hao Hao is a very famous product of Acecook. So when it comes to this brand, users
almost only know this product, not other products of the business. Or they only
know about delicacy but do not know that delicacy is acecook's product. This can
be a disadvantage of the campaign when it overshadows the business brand.
3.3. International strategy

Currently, on average Acecook Vietnam produces 2.5 billion packages of noodles/year, of

which nearly 10% of products are for the export market. Acecook products are gradually
appearing in the world market (40 countries), helping them reach a large number of
potential customers and increase sales.

As Acecook expands to more international markets, their name and products will become
more familiar to a large number of people. consumption. Presence in the international
market shows that Acecook has the capacity to produce and provide quality products to a
large number of potential customers. This also proves the company's competitiveness and
international quality standards.
 CHAPTER 4. COMPARE BUSINESS STRATEGIES
4.1. Compare business strategies Acecook in different markets
Acecook's current business plan in Thailand, and China focuses on leveraging their local
market understanding and adapting their products to cater to the specific needs and
preferences of consumers in each country.
4.1.1. In Thailand
Local Flavors and Spices: Acecook adapts its products to suit the distinctive Thai flavors
and spicy preferences. They offer a wide variety of Thai-style instant noodles with flavors
such as tom yum, pad Thai, and green curry.
Noodle Modification: Thai consumers have different preferences for noodle texture.
Acecook produces noodles that are specifically tailored to suit Thai taste preferences, such
as softer texture or thicker noodles.
Market Localization: Acecook focuses on establishing strong distribution networks and
partnerships with local distributors and retailers in Thailand. This enables them to reach a
wider consumer base and ensure their products are readily available across the country.
4.1.2. In China
Localization of Flavors: Acecook develops instant noodles with flavors that are popular
among Chinese consumers, such as braised beef, spicy Sichuan style, and regional
specialties. They adapt their product portfolio to cater to different regional tastes within
China.
Market Segmentation: Acecook targets different market segments within China by offering
a variety of product ranges. For example, they have developed healthier options with
reduced sodium or low-fat instant noodles to cater to health-conscious Chinese consumers.
E-commerce and Digital Marketing: Acecook has embraced the growing e-commerce trend
in China and focuses on digital marketing strategies to reach a wider audience. They
collaborate with online platforms and utilize social media channels to engage with Chinese
consumers and promote their products.
4.1.3. Differences between business strategies in Vietnam and other markets
a) Market Research
Acecook conducts thorough market research to understand the cultural, economic, and
consumer preferences of each target market. They analyze local competition, market
demand, and regulatory requirements to identify opportunities and potential challenges.
b) Marketing Product Adaptation
Acecook adapts its product portfolio to cater to local tastes and preferences. This may
involve introducing new flavors, entirely new products that align with the specific culinary
traditions and preferences of each market. By offering localized products, Acecook aims
to attract a wider customer base and tailor their offerings to suit local consumers. They
adapt their advertising campaigns, packaging design, and promotional activities to resonate
with local consumers. This includes translating product information into local languages
and employing culturally relevant marketing tactics.
c) Quality and Safety Standards
Acecook adheres to international quality and safety standards to establish trust and
credibility in foreign markets. They place strong emphasis on maintaining product quality,
ensuring consistent taste and flavor profiles, and complying with local regulations and food
safety measures.
d) Competitive Pricing
Acecook considers the local economic factors and pricing dynamics of each foreign
market. They adjust their pricing strategies to remain competitive while balancing
profitability. This may involve offering affordable options for price-sensitive markets or
premium products for niche segments.
4.2. Compare business strategies with other rivals in the same industry
The business strategies of Acecook, Massan and Vifon in the field of instant noodle
production
4.2.1. Similarities
- Product diversity: Both ACE Cook, Massan and Vifon have a rich product portfolio,
including a variety of instant noodles, flavors and food supplements to meet diverse
consumer needs.
- Product innovation and upgrading: Companies invest in researching and improving
products, improving production technology and creating new types of noodles and
new flavors to meet changes in taste and market diversity.
4.2.2. Differences
- Brand: Acecook has built a strong and recognized brand in the global market.
Massan focuses on building and operating potato noodle brands such as Omachi, ...
Meanwhile, Vifon focuses on enhancing its traditional brand position in the instant
noodle sector.
- Internationalization: Acecook has expanded its business operations to many
countries, especially Asia. Meanwhile, Massan focuses mainly on the domestic
market and has not had large-scale international expansion. Vifon is also present in
some international markets, but the scale is smaller than Acecook.
- Marketing strategy: Each company has its own marketing strategy. Acecook has a
diverse marketing strategy, from traditional advertising to online advertising and
interacting with customers via social networks. Massan focuses on building
intimacy and interaction with consumers through hands-on activities and
 promotions. Vifon builds its brand through creative media campaigns and
traditional advertising.
- Health and quality: Acecook and Massan both focus on the quality and nutritional
value of their products, meeting the increasing demands of customers with low-fat
and preservative-free products management. Vifon focuses on using natural and
high-quality ingredients.