Professional Documents
Culture Documents
SM L20 TEAM7-2-111 Merged
SM L20 TEAM7-2-111 Merged
SM L20 TEAM7-2-111 Merged
2.2.3. EFAs...................................................................................................44
2.3. The gioi di dong..........................................................................................45
2.3.1. Five Forces Analysis..........................................................................45
2.3.2. PESTLE..............................................................................................46
2.3.3. EFAs...................................................................................................48
2.4. An Khang....................................................................................................48
2.4.1. PESTEL..............................................................................................48
2.4.2. Five Forces Analysis..........................................................................50
2.4.3. EFAs...................................................................................................52
2.5. AVAkids.....................................................................................................52
2.5.1. PESTEL..............................................................................................52
2.5.2. Five Forces Analysis..........................................................................57
2.5.3. EFAs...................................................................................................60
III. Strategic Formulation..........................................................................................62
1. Corporate Strategy...............................................................................................62
1.1. Bach Hoa Xanh...........................................................................................64
1.1.1. Corporate Directional Strategies........................................................64
1.1.2. Investment portfolio analysis.............................................................65
1.1.3. Corporate Parenting Strategy.............................................................66
1.2. The gioi dien tu...........................................................................................67
1.2.1. Corporate Directional Strategies........................................................67
1.2.2. Investment portfolio analysis.............................................................68
1.2.3. Corporate Parenting Strategy.............................................................69
1.3. The gioi di dong..........................................................................................70
1.3.1. Corporate Directional Strategies........................................................70
1.3.2. Investment portfolio analysis.............................................................72
1.3.3. Corporate Parenting Strategy.............................................................73
1.4. An Khang....................................................................................................73
1.4.1. Corporate Directional Strategies........................................................73
1.4.2. Investment portfolio analysis: DOG..................................................74
1.4.3. Corporate Parenting Strategy.............................................................76
1.5. AVAkids.....................................................................................................77
1.5.1. Corporate Directional Strategies........................................................77
1.5.2. Corporate Portfolial Strategies...........................................................78
1.5.3. Corporate Parenting Strategies...........................................................79
2. Business Strategy................................................................................................80
2.1. Bach Hoa Xanh...........................................................................................80
2.1.1. Competitive Strategy..........................................................................80
Scope of activities: VNG’s products and services operate in a cutting edge ecosystem covering key
product groups, focusing on bringing a richer and simpler online experience to your life.
3. Recommendations
1. Internal environment
VRIO Framework :
Every company is built to offer some kind of specific advantage or resource to its target
market. The VRIO framework is an internal analysis that helps businesses identify the
advantages and resources that give them a competitive edge.
The VRIO framework is an acronym for the various measurements of success that relate
to your business. It includes value, rarity, imitability, and organization.
These four categories are markers for the unique value and resources your business is
characterized by and their data analysis helps uncover what the long-term advantages
are for your organization.
A value chain:
Is a series of consecutive steps that go into the creation of a finished product, from its
initial design to its arrival at a customer's door. The chain identifies each step in the
process at which value is added, including the sourcing, manufacturing, and marketing
stages of its production.
1.1.2. IFAs
Matrix of Internal
Factors
Internal Factors Weig Ratin Weighted Score
ht g
Strength
A-Primary activities
Import and supply of products: Starting from the import of mobile products, tablets,
Electronic accessories from other manufacturers and suppliers. This is the stage of
product reception and selection.
Selecting, purchasing and managing inventory: Organizing selection and
purchasing processes, as well as inventory management to ensure product diversity
and suitability. This is the stage of purchasing decisions from suppliers.
Distribution and logistics: Includes transportation of goods from storage to retail stores
and other point of sale. This is an important stage to ensure the product reaches
consumers.
Retail and customer service: Providing products and services to customers at Mobile
World retail stores. Including support and warranty services. This is a period of direct
access and interaction with consumers.
B-Support activities
Human resource management : Recruitment, training and staff development. Develop
policies and procedures for personnel management.
Performance management and career development of employees.
Unused Invest in
Human competitive improving
Resourc advantage, organizational
es because: structures and
● DienMayXanh's processes
employees are
always respectful
and customer-
oriented
● The selection and
training processes
for employees are
highly
valued by DDMX
Sustainable Maintain
Financials competitive competitive
advantage, because: advantage
● It's rare for any
company to have so
many subsidiaries
and still perform
well
● DienMayXanh's
strong financials
are difficult for
competitors to
imitate
● DienMayXanh
receives financial
support from the
parent company and
is an important part
of
MWG's system
Unused Invest in
Stores competitive improving
advantage, organizational
because: structures and
● DienMayXanh's processes
stores are
spacious, well-
designed, and
customer-
friendly
● The company's
locations are
always large and
heavily
trafficked, with a
large-scale business
model
● DienMayXanh's
design, combined
with TGDĐ, is
hard for
competitors to
replicate
Temporary
Warehous Invest in
competitive
es intellectual
advantage, because:
property
Large warehouse
protection or find
spaces with a variety
ways to make it
of items for different
more difficult for
subsidiaries.
competitors to
imitate
Sustainable Maintain
Technic competitive competitive
al advantage, because: advantage
Capabili ● A highly trained
ty technical staff
with expertise,
always serving
customers.
● Temporar
Suppliers y
competiti Invest in
ve intellectual
advantag property
e protection or find
● DienMayXanh's ways to make it
suppliers are more difficult for
diverse, including competitors to
both domestic and imitate
international
sources, offering
items that are
unique to DDMX.
Unused Invest in
Produc competitive improving
t advantage, organizational
Portfol because: structures and
io ● A diverse processes
product
portfolio with
impressive and
unique
products.
● DienMayXanh
handles various
product categories
simultaneously,
making it
challenging for
competitors to
replicate the process
of creating the
product
portfolio.
A-Primary activities
Inbound Logistics:
Dien May Xanh has established strong relationships with major suppliers in the
electronics and home appliances industry, ensuring a stable supply and competitive
pricing. Dien May Xanh possesses the ability to efficiently manage resources to ensure
effective transportation and storage of products. Diversifying the product range from
various renowned brands creates a diverse product portfolio.
Operations:
Dien May Xanh has opened numerous stores in various locations, including large
"superstores" on busy streets. They demonstrate the capability to cater to diverse
customer needs by offering a wide variety of products for both mothers and children. The
focus is on optimizing operations and displays to enhance the shopping experience and
diversify the product catalog.
Outbound Logistics:
Dien May Xanh minimizes the use of intermediaries in the sales process, with the
majority of products being sold in their stores. Efficient management of storage and
distribution of products to retail locations is crucial to ensure a continuous supply to
customers.
Marketing and Sales:
Dien May Xanh makes substantial investments in building their brand and
reputation in the market. They concentrate on effective communication through
promotional activities, customer appreciation, discounts, and charitable contributions.
Developing a website and running online campaigns to connect with customers through
an e-commerce platform.
Service:
The website of Dien May Xanh consistently updates product information, prices,
and promotions to serve customers interested in the products promptly. A large team of
administrators is in place to swiftly update information and respond to customer
feedback on the website. They commit to swift delivery for online orders while also
respecting the trust of customers who have used online services.
B-Support activities
Procurement:
Dien May Xanh has diversified its product range from many famous brands,
creating a diverse product portfolio. This helps them meet the diverse needs of
customers and provide more choices.
Dien May Xanh has established strong relationships with many major suppliers in
the electronics and appliances industry. This helps them ensure a stable supply and
competitive prices.
Dien May Xanh has the ability to manage resources efficiently to ensure effective
transportation and storage of products. This helps them save costs and ensure continuous
supply for customers.
Technology development:
Dien May Xanh uses advanced technology to enhance performance and customer
experience. They employ new technologies like artificial intelligence (AI), online
capabilities, and product enhancements to provide high value to customers.
Dien May Xanh develops a website and mobile app to create online shopping
opportunities for customers. They provide product information and online promotions,
offering easy and convenient access for customers.
Dien May Xanh has partnerships with various large technology manufacturers.
This helps them access new products and technologies, offering a diverse product
portfolio for customers.
Human resources:
Dien May Xanh has established attractive compensation and benefits for its
employees. This includes competitive salary packages, bonuses, and benefits like
insurance, allowances, and employee perks.
Dien May Xanh is committed to the safety and well-being of its employees.
They create a comfortable working environment and ensure that employees are
protected and well-cared for.
The staff in Dien May Xanh's stores are trained to provide high-quality service to
customers. They ensure that customers have a satisfying and convenient shopping
experience when visiting the stores.
Firm infrastructure:
Dien May Xanh invests in designing their stores to create an appealing and friendly
shopping environment. The "super large" stores located on bustling streets are evidence of
their focus on creating an attractive shopping space for customers.
1.2.3. IFAs
Strengths
Weaknesses
Unused
Stores competitive
in many Invest in
advantage,
location improving
because:
s organizational
through The stores have structures and
ou t many different processes
locations
Temporary Invest in
Financial competitive intellectual
s advantage, because: property
protection or
Because Large find ways to
financial source make it more
from parent group difficult for
Mobile World competitors to
imitate
Unused
Brand Invest in
competitive
improving
advantage
organizational
structures and
processes
Temporary Invest in
Wareho competitive intellectual
us e advantage, because: property
protection or
Large warehouse find ways to
spaces with a variety make it more
of items for different difficult for
subsidiaries. competitors to
imitate
Maintain
Technic Sustainable competiti
al competitive ve
Capabili advantage, because: advantag
ty e
A highly trained
technical staff with
expertise, always
serving customers.
Temporary Invest in
Suppliers competitive intellectual
advantage, because: property
protection or
Bach Hoa Xanh's find ways to
suppliers are very make it more
diverse, including difficult for
many types of competitors to
products from fresh imitate
foods to processed
foods.
Unused
Produc competitive
t advantage,
Portfol because:
io
A diverse product
portfolio with
impressive and
unique products.
Invest in
Bach Hoa Xanh improving
handles various organizational
product categories structures and
simultaneously, processes
making it
challenging for
competitors to
replicate the process
of creating the
product portfolio.
Warehouse Management: Bach Hoa Xanh conducts the selection and purchase process,
as well as inventory management to ensure product diversity and suitability.
Distribution and Logistics: Bach Hoa Xanh organizes the transportation of goods from
distribution centers to retail stores. This ensures product delivery to consumers.
Sales and Customer Service: Bach Hoa Xanh provides products and services to
customers at its retail stores. Including support and warranty services.
Media and Advertising: Bach Hoa Xanh conducts marketing activities to promote its
brand and products, including online advertising, Local media and advertising campaigns.
Research and Development of Embryos: Bach Hoa Xanh can participate in research and
development to provide new and updated products according to market needs.
Management of the Information and Technology System: Bach Hoa Xan manages
systems and technologies related to its business operations, including warehouse control
systems, payment systems, etc.
The infrastructure
Bach Hoa Xanh store is beautifully arranged and clean with an on-site store manager to
help monitor the store and satisfy customers with good service and dedicated staff.
Procurement:
Bach Hoa Xanh has diversified its product range from many famous brands, creating a
diverse product portfolio. This helps them meet the diverse needs of customers and
provide more choices.
Technology development:
Bach Hoa Xanh uses advanced technology to enhance performance and customer
experience. They employ new technologies like artificial intelligence (AI), online
capabilities, and product enhancements to provide high value to customers.
1.3.3. IFAs
Weakne
ss
Limited employee benefits policy 0.06 2 0.12
Total: 1 3.03
Competitive
Parity,
because:
Although
e-commerce
Deploy is growing,
Maintain
online retail having a
competiti
strategies good
ve
strategy
advantag
requires a lot
e
of resources
and
experience
from the
leader
and also
requires good
organization.
Excellent level Competitive
of customer Parity,
because: Improving its
experience uniqueness
Popular stores
for customer and rarity
service
Stores in Competitive
many Parity,
because: The Improving its
locations uniqueness
throughout stores have
many and rarity
different
locations
Business
leadership and
Sustainab Maintain
a strong
le competiti
vision
competiti ve
ve advantag
advantag e
e,
A-Primary activities
Input logistics:
Receiving and storing pharmaceutical products and supplies
Goods at the pharmacy always have a transparent origin, clear invoices and
documents from reputable pharmaceutical companies, helping consumers easily look up
and use with peace of mind. The traditional store layout helps attract new customers
while still ensuring the retention of old customers.
Operations:
With the desire to care for and serve community health with the best quality and
reasonable prices, An Khang pharmacy system always prioritizes cooperation with
reputable domestic and foreign brands.
In addition, the public health campaign "Safe mind and KHANG body" at 18
locations was implemented by An Khang pharmacy and 11 pharmaceutical
distributors to help people receive free medical examinations and medicine.
Volunteer program of An Khang pharmacy system with 11 pharmaceutical
companies: Mega Lifesciences, Boston Pharma, Sang Pharma, Merck, Gigamed,
GSK, Hau Giang Pharmaceutical. OPC, Doppelherz, Dr.Frei and Brauer pharmaceuticals
carry noble human values,
Distribution development is one of the important business strategies of An Khang
pharmacy. Since then, the system has proven its position and reputation in the
pharmaceutical retail market.
Outbound Logistics:
Delivering medicine to customers via in-store pickup or home delivery
Being a member of Vietnam's leading technology group - The Gioi Di Dong is an
advantage that helps An Khang pharmacy system thrive in online business. An online
store on a Website or Fanpage is similar to an offline store. In particular, customers can
quickly look up information and products that they are interested in.
At the same time, when customers have problems, a team of professional
pharmacists are always ready to answer via hotline and zalo (from 7:30 a.m. - 10
p.m.).
Online stores help consumers shop more easily, without having to go directly to the
point of sale to still have the best experience.
Marketing and sales:
Promote pharmacy services and products through advertising, social media and
in-store signage
Service
Customer satisfaction is a measure of the long-term success of a business.
Therefore, An Khang pharmacy always focuses on and constantly improves the
service quality of its staff in each stage of customer care.
An Khang Pharmacy has different warranty policies for each group of goods and
products. This policy is a commitment to product quality, helping customers feel secure
after purchasing.
With the group of drugs, dietary supplements, medical equipment or chemicals,
pharmaceuticals and cosmetics, customers will receive a 100% refund within 3 days if
errors arise due to the manufacturer.
With medical equipment, An Khang pharmacy commits to a 15-day warranty and
1-1 return within 1 month if the product is defective due to the manufacturer.
Return policy - warranty does not apply to injectable drugs, refrigerated products or
products during promotional periods.
B-Support activities
Procurement:
Technology:
An Khang Pharmacy uses technologies to manage and monitor all activities in the
store to ensure efficient and effective operations. Technologies such as warehouse
management software, point of sale software, surveillance camera systems and phone
signals are useful for pharmacy management.
HR:
An Khang Pharmacy recruits staff throughout its operation. Jobs can include
positions from management, sales, delivery staff to customer care. This place has a strict
recruitment and training process to ensure its employees are professional and dedicated.
heart
Infrastructure:
1.4.3. IFA
Weakness
es
Financial position 0.2 2.1 0.42
Manufacturing facilities 0.05 2.2 0.11
Drug distribution store 0.05 2.0 0.1
1.5. VAkids
1.5.1. VRIO
R Organiza
Resources Val a Imitati tio n Competitive Advantage? Recommendatio
ue r on ns
e
Temporary Competitive
Advantage, because:
AVAkids strategy is Invest in
specializes in the field of intellectual
Ability to
Attract mother and baby and property
Talent in operational optimization protection or
Various localization of products find ways to
Local and talent is critical to make it more
Markets firm's growth but this difficult for
resources easy to imitate competitors to
for the current imitate
competitors of AVAkids
Find ways to
Competitive improve if a
Brand
Disadvantage, because: resource is
awareness of important,
AVAkids has just come
AVAkids into operation and there otherwise
products and are many competitors focus on
services dominating the market. in other
addition, store is resources that
influenced by the previous have more
brand competitive
advantage
Sustainable
competitive
advantage, because:
● Inheriting
experience from
Sales Force other MWG
and Channel subsidiaries
Management ● AVAkids ranks 4th in Maintain
of AVAkids the market in terms of competiti
store salary ve
● It is difficult for advantag
competitors to imitate e
because it requires
large resources
● Still there is lot of
potential to utilize
the excellent sales
force
Sustainable
competitive
advantage, because:
Diverse and ● It helps AVAkids in
quality delivering lower Maintain
product costs competiti
portfolio ● Competitors need ve
huge financial advantag
resources to imitate e
● Can be imitated by
competitors of
AVAkids but it is
difficult
Invest in
Supply intellectual
Chain Temporary Competitive property
Network Advantage, because: protection or
Flexibility Near competitors also find ways to
of have flexible supply make it more
AVAkids chain and share some of difficult for
the suppliers competitors to
imitate
Marketi
Competitive Parity, Improving its
ng because: uniqueness
Expertis ● Firms are competing and rarity
e
within based on
AVAki differentiation in the
ds industry
● as most of the
competitors also
have good
marketing
departments and
expertise
Competitive Parity,
because:
Consum MWG Corporation has Improving its
er strong communication uniqueness
network power and a young and rarity
business, it may be
caught up by other
businesses
Distribution
and Logistics
Sustainable competitive
Costs
advantage, because: Maintain
Competitiven
es s MWG's strong finances competiti
are undeniable. Hardly ve
any company can do it advantag
e
Temporary Competitive
Advantage, because:
● It is valuable in the
Product
industry given the Invest in
Portfolio and
various segmentations intellectual
Synergy
& consumer property
among
Various preferences. protection or
Product ● Most competitors try find ways to
Lines of to penetrate make it more
AVAkids profitable segments difficult for
but not everyone competitors to
succeeds and can be imitate
imitated by the
competitors
Unused
Competitive
Vision of Advantage,
the Invest in
because: improving
Leadership
● Experience and talent organizational
for Next Set
are difficult to imitate structures and
of
Challenges ● Can't be imitated by processes
competitors of
AVAkids
● Not based on
information provided
in the case
Sustainable
competitive
Track advantage, because:
Record of ● MWG was established
Leadership a long time ago and is Maintain
Team at a gathering place for competiti
AVAkids many talented people ve
● Managing people is advantag
very difficult e
● Can't be imitated
by competitors
Brand
Competitive Parity,
Positioning
because:
of AVAkids
in
Can be imitated by
competitors but it will Improving its
Comparison
to the require big marketing uniqueness
Competitors budget and the firm has and rarity
positioned its brands
based on consumer
1.5.2. Value chain
AVAKids has the ability to cooperate with suppliers on a large scale, creating a
diverse and quality product portfolio with 5,000 items belonging to famous domestic and
foreign brands such as Japan and Korea. Product strengths focus on the needs of children
and pregnant mothers such as diapers, milk, clothes, toys, bicycles, consumer products for
mothers and babies, supplementary foods (weaning foods, vitamins) ... At AVAKids,
mothers will find a full range of products for mothers, babies, and even the whole family,
without having to go to many stores to find products according to their needs like other
chains.
Operations
Opened 67 AVAKids stores in Ho Chi Minh area and many neighboring provinces,
including "super large" addresses located on busy roads. Even though it has just entered
the mother and baby market, AVAKids still shows its ability to meet most consumer
needs by providing a variety of products for mothers and children.
AVAKids chain - MWG's startup model. By the beginning of the year, the company
had stopped expanding the chain. In 2023, similar to An Khang, MWG also has no
plans to expand this chain and will focus on optimizing operations and displays to
increase shopping experience and diversify product categories.
The average revenue per AVAKids store is about 1.45 billion, which will reach the
break-even point.
Outbound Logistics
There is very little or no presence of intermediaries in product selling for AVAKids. The
majority of the products are sold in stores; however, storage and distribution to retail
locations are important.
Service
Website AVAKids.com always updates the latest products, product images and
functions are actually tested. Update prices and promotions promptly and promptly to
serve customers interested in the field of technology products.
At the same time, they declared that they highly appreciate the trust of customers
who have used Online services
The infrastructure
This includes departments such as management, finance, legal, etc., that are
required to keep the company's stores running. AVAkids has on-site store managers to
help oversee beautifully designed and pleasing stores along with good customer service
provided by a dedicated staff.
Technological development
MWG is very famous in the field of technology, so its "darling" is fully equipped
with scientific and technical equipment as well as training for employees to use
technology.
Procurement
Procurement activities are integrated across many different aspects of the supply
chain.
The store has established general terms, requirements, and standards for all of its
purchases; However, shopping relationships are often very different. Handling this
problem smoothly is considered one of AVAkids' competitive advantages
C-Reviews
What Are Core Competencies of AVAkids?
Competencies of AVAkids include its ability to expand almost everywhere globally, its
care and concern for its employees, its focus on quality and providing a quality product,
its continuous product development, and its excellent customer service.
What Are the Values of AVAkids?
The values of AVAkids can be seen in the promises it makes in its mission. These
promises are to its partners, customers, community, shareholders, and the
environment.
1.5.3. IFAs
Competition among competitors: Other department stores and small supermarkets are
also competing in the FMCG (Fast Moving Consumer Goods) retail industry. This can
create downward pressure on prices and push Bach Hoa Xanh company to make efforts
to maintain and expand market share. New retail chains can open and expand their
networks, competing directly with Bach Hoa Xanh. This could reduce the company's
share of the market. Online business models: The rise of online business models and
door-to-door delivery applications can pose a major threat. New companies can leverage
technology to offer similar products and services without the need for a traditional store
network.
Supplier reputation: Owning a stable and reliable supply network is an important factor
for Bach Hoa Xanh company. If a supplier is unreliable or has supply problems, this can
affect the company's business.
Bargaining power of buyers: Customers have many choices when purchasing fast-
moving consumer goods, so they have higher bargaining power. If Bach Hoa Xanh does
not provide good products and services, customers may switch to other competitors.
Alternative products: Traditional stores, traditional markets, and department stores are
also shopping options available to consumers. In addition, the strong increase in online
retail models can also create pressure from other competitors. New business models such
as online stores and home delivery services are becoming increasingly popular. This is a
risk that Bach Hoa Xanh company needs to face if it does not update and adapt to this
trend.
Industry competition: Bach Hoa Xanh's competitors include Co.opmart, WinMart, Go,
Mega Market, Lotte Mart, FamilyMart, B's Mart, Ministop, 7-Eleven, Circle K,
Satrafoods, Emart, GS25 . These are all strong competitors that put pressure on prices
and services
2.1.3. EFAs
Weighted
External Factors Weig Rati Score
ht ng
Opportunity
Threats
Total 1 3.32
2.2.2. PESTEL
Political Factors:
Stability and Regulation: Vietnam's political stability is a strength. However,
compliance with business regulations and consumer protection laws is vital.
Economic Factors:
Inflation: Inflation can affect pricing and profitability. Điện Máy Xanh should
manage pricing and supply chain to mitigate inflation impact.
Exchange Rates: Exchange rates can influence the cost of imported electronics.
Điện Máy Xanh needs to hedge currency risks.
Social Factors:
Online Shopping Trends: The growth of online shopping can impact physical stores.
Điện Máy Xanh should consider strengthening its online presence.
Technological Factors:
Environmental Factors:
Legal Factors:
2.2.3. EFAs
Opportunities
Threats
The most important factor that makes Thegioididong currently the leading
smartphone retailer in VietNam is Economy of Scale and Enterprise Resource
Planning System form 2004 reducing Cost of Expenditure and increasing the
bottom line of the firm drastically
The suppliers of a certain scale can be mentioned as: FPT shop and VienthongA,
CellphoneS, Viettel Store,…
Secondly, the highest penetration. A lot of available stores and popular brands
across VietNam that lead Thegioididong take the most vital role in increasing
revenue for their suppliers ( 40% smartphone market share). Win-win cooperation
relationship is that TGDĐ has more power compared to suppliers.
Smartphone VietNam Market has many retailers, small stores and entrepreneurs. Customers
have many choices of Stores, Price preference and Promotion with
the same product standard. Moreover, the expansion of the middle-income
population increases consumer demand for high technology smartphones and the
best services (such as omi-channel, promotion, guarantee policy). Besides, the
lack of high-service mobile phone stores in the countryside and provinces in
VietNam lead to low buyer power.With this combination of situations, TGDĐ is
one of the retailers that can apply consumer needs because of their economy of
scale across the country.
The leading mobile phone omni-retailer in VietNam taking up 40% market share
and 80% of revenue for the company parallel with strong capital investment,
outstanding ERP to give out the best service, wide distribution channels and
ultimately economic scale. The rivalry among competitors is lower through these
current years
2.3.2. PESTLE
Political :
Changes in policies, regulations and political fluctuations and it may affect the company's
Economic :
Increased economic growth, economic integration and residential income can
enhance consumer demand, at the same time provide brand and scale expansion
opportunities for the company.
Economic volatility, inflation or recession can reduce consumer demand and impact compa
Social :
Understanding the needs and interests of consumers helps the company optimize
its marketing strategy and deliver products tailored to the market's tastes.
Changes in consumer tastes, social issues such as environmental sensitivity may require th
Technological:
Applying advanced technology and using modern digital utilities can enhance
customer experience and provide utility services and Fastest to other goods
The rapid change in technology requires the company to update and invest to remain comp
Legal :
Compliance with legal regulations and consumer rights ensures legal activity and
creates trust for customers.
Changes in legislation, legal cases or industry regulations may affect a company's business
Environmental :
Unsustainable development and the company's negative impact on the environment can impact
2.3.3. EFAs
Weighted
External Factors Weig Rating
ht Score
Opportuniti
es
Economic growth 0.05 3 0.15
Integrated high technology, high quality
0.1 4 0.4
products
Facilities system 0.1 4 0.4
Threats
Tot 1 2.75
al
2.4. An Khang
2.4.1.
PESTEL P
(Politics)
The stable political situation in Vietnam has been decisive for economic
development, solving work problems, increasing income and increasing consumer
demand for society. This is also a positive impact on the implementation of An Khang
pharmacy's strategy.
E (Economics)
According to NCIF's forecast, in the period 2021-2025, the GDP growth rate in
Vietnam will reach 7%/year. The trend of Vietnamese GDP is increasing, possibly
reaching 7.5% by 2023.
The ability to detect the economy is at 3.5 - 4.5%/year. Average inflation in 2022 is
3.8%, much lower than the global inflation rate of 5.7% in developed countries and 8.7%
in developed countries.
S (Social culture)
According to the results of the 2002 census, Vietnam currently has 99,059,944
people. Of which urban areas employ 37.70% with 36,727,248 people, rural areas
employ 62.3% with 60,611,331 people.
This is considered a necessary and favorable factor because the population is large,
the birth rate is high, income is also improving, and health issues are increasingly of
concern.
Easy access to information through the internet and newspapers has become easier,
so it also contributes to increasing user demand.
E (Environment)
Some trends from the natural environment also have a great influence on
businesses' marketing activities such as scarcity of some raw materials, increasing
environmental pollution, increasing energy, increasing the gloss of the state and
government. on the use and recycling of productive resources.
L (Legal)
However, the formal legal problems here lie with small distributors, who cannot
have modern equipment good enough for storage and movement, which also significantly
affects the quality. number of products, thereby affecting brand reputation. There are also
many other uses that also make it difficult for businesses to set product prices.
On the market today there are many different drug stores with a variety of drugs and
convenient locations.
Potential competitors
To enter this industry, businesses will encounter relatively large barriers and being
successful is not an easy thing as this industry is currently relatively saturated. Those
barriers include:
+ Cost of entering the industry: Depending on the quantity and type that businesses
choose, there will be different costs. The cost of drugs imported from abroad is quite
high, because businesses will have to make a relatively large investment.
Importing products from reputable manufacturers around the world does not guarantee
that they will arrive on time as expected. Lack of medicine supply.
An Khang Pharmacy is currently facing relatively high competition from brands such as:
Long Chau, Pharmacity,... In recent years, Long Chau has surprisingly emerged, making
its competitors wary.
2.4.3. EFAs
Strengths
Weakness
es
Competition is fierce 0 2 0.4
.
2
Ratio of drug lines in the store 0 1 0.1
.
1
Scarcity of human resources in 0 2 0.4
the pharmaceutical industry .
2
Buying generations are fraught 0 2 0.2
with complexity .
1
Total Scores 1 2.15
2.5. AVAkids
2.5.1. PESTEL
P (Politics)
Changes in government/election cycles:In Vietnam, the president is the elected head
of state and the commander-in-chief of the military, while the prime minister is the head
of government. Their tenure will change the principle. This helps businesses make long-
term decisions
Fiscal policies: The legal system in Vietnam is not complete. Tax policy is always
innovative, but this will continue to be maintained. But these policies are proposed with
the aim of constantly improving the business environment and creating favorable
conditions for businesses. Contribute to improving the business environment and
enhancing national competitiveness.
Wars and conflicts: Vietnam is a country with a stable political institution that
facilitate doing business inVietnam. Moreover, Vietnam is a peaceful country without
war and terrorism.
Human rights and corruption: However, according to the Human Right Watch
(2023), Vietnam has a very poor record in human rights. Freedom of expression,
association, and peaceful public assembly are strictly restricted, while dissidents being
imprisoned are very normal. As the Communist Party of Vietnam controls the country’s
media, journalists and media platforms often risk sanctions for presenting sensitive topics
and for criticizing the government. Likewise, corruption is a problem though the country
has made a lot of efforts to eradicate it in the last several years.
E (Economics)
GDP: Vietnam is a growing economy. Its nominal GDP in 2021 was worth
366.14 billion US dollars (Trading Economics, 2023). It has made a lot of progress in
poverty eradication and has lifted millions of people out of it in the last decade.
Welfare Payment e.g. Universal credit: Payment methods are increasingly diverse,
from cash payments to using e-wallets, helping businesses increase their customer base
and boost sales.
General tax: The current VAT rate in Vietnam is relatively low compared to other
countries in the world. create conditions to promote domestic consumption
Petrol prices: rising gasol and oil prices pushing prices in the plans which causes
parents to consider when shopping
Ability of parents to raise funds for optional childcare: As the current economic
growth continues, the social conditions of Vietnamese people are changing, such as
lifestyle where being wealthy is becoming common in Vietnam. For example, a family in
Vietnam can afford to buy three iPads and spend $1000 easily. Families have the means
to invest in purchasing items for mothers and babies
S (Social culture)
Cost of raising children: The cost of raising children is always a difficult issue for
many parents, especially those living in big cities, because health care and education
services are becoming increasingly expensive. .
Integrating with the local community: The cultures of Vietnam's regions are very
different, which is a big challenge for businesses' development plans.
Parental preferences – parents have the freedom to choose the care and education
of their children
Broadband access: While many urban areas have access to high-speed internet and
other technological amenities, rural areas often lack access to these resources. This can
be a barrier to education and economic development.
Competency of ICT use: The use of information technology is not intensive but is
enough for people to grasp and update necessary information as well as use e-commerce
services.
Online childcare management tools: Many online child care tools have been
developed. Tips and advice on nutrition and child education are always updated and
reach people quickly via the internet.
Online training packages: There are many online training courses online. both paid
and free versions, this piques interest in child and mother education as well as orienting
the types of products used in mother and baby care.
Human Resources: Vietnam is now the eighth largest provider of IT services in the
world. Five IT industries that are currently trending are fintech, artificial intelligence, E-
commerce, software outsourcing, and education technology. However, as many
companies are shifting manufacturing operations to the country, a fierce battle for skilled
labour is well underway, exacerbating an existing shortage of skilled labour.
E (Environment)
L (Legal)
MWG's 2023 focus with AVAkids includes: increasing revenue per point of sale,
tightly controlling operating costs to improve operational efficiency and reduce losses.
Building positioning as a destination for customers specializing in diapers. This proves
that AVAkids will focus on products and this brand currently has 67 stores. This is also
what makes the supplier unable to miss AVAkids
Saturated retail market, competition from e-commerce sites as well as rising costs
will be issues that AVAkids needs to solve in the near future to maintain and enhance its
position in the retail industry of mother and baby products. There are some competitors
of AVAkids such as Con Cưng, Bibo Mart và Kids Plaza:
Bibo Mart is the oldest brother in the market, born the earliest, in 2006. If in the
early stages, this business grew quite quickly, in recent years it has stagnated and is
somewhat exhausted compared to other names. age follows. After 16 years, the number
of Bibo Mart stores has only stopped at about 146.
Kids Plaza entered the market in 2009 and currently has about 160 stores
nationwide, concentrated in Hanoi and Ho Chi Minh City.
Meanwhile, Con Cung has only been born in 2011 but is leading the market with an
outstanding number of stores (more than 699 stores), double the total number of stores of
Bibo Mart and Kids Plaza combined. Con Cung also recorded impressive revenue in
2021, reaching about VND 7,000 billion.
AVAkids has large financial resources from its parent company. Facilitate
favorable strategy implementation
AVAkids's best strategy, in the eyes of brand experts, is to avoid confronting the
greatest strength of traditional retail, which is "cheap". Instead,the company focuses on
its strengths in the quality of professional products and services. The proof is
that the company has stopped expanding stores and instead focuses on product
development
Not only having to compete among businesses in the same industry, but also facing
fierce competition from e-commerce platforms such as Tiki, Lazada, Shopee,… These
exchanges are not only strong in technology, familiar with modern retail, but also strong
in customer care and customer data collection.
2.5.3. EFAs
Opportuni
ty
Governme
nt stability
and 0.05 2 0.1
Political
movement
s
Fiscal policies 0.05 2 0.1
Participate in
global
organizations 0.07 4 0.28
and trade
agreements
growing 0.04 2 0.08
economy
Payment 0.03 2 0.06
methods
focus more on
quality of life
and prioritize 0.08 3 0.24
sustainable
products
wide
supplier 0.08 4 0.32
network
The
corporation 0. 2 0.14
has a loyal 07
customer base
Applied
science and 0. 3 0.12
technology 04
Threats
Legislati
on 0. 3 0.06
changes 02
human rights
0. 3 0.15
and corruption
05
Cost of
0. 2 0.16
items
08
increased
Birth
rate 0. 2 0.04
decreas 02
ed
Broadband 0. 3 0.12
access 04
Competency
of ICT use 0. 2 0.12
06
business
registrati 0. 3 0.09
on 03
procedur
es
Transport links 0. 2 0.08
04
Climate
change and 0. 2 0.14
Natural 07
disasters
Threat of
0. 1 0.03
new
03
entrants
Competiti
0. 3 0.15
ve Rivalry
05
Total: 1 2.58
SWOT
O
AVAKIDS
DIEN MAY
XANH
THEGIOIDIDON
G BACH HOA
W XANH S
AN KHANG
● Strategic Formulation:
1. Corporate Strategy
- A directional strategy keeps companies focused in the most strategic way possible
while continuing to grow both revenue and products and services offered to customers.
They do this by making sure individual departments work together toward corporate
goals, rather than pursuing their own goals.
- Portfolio analysis: management views its product lines and business units as a series of
investments from which it expects a profitable return
The growth share matrix is, put simply, a portfolio management framework that helps
companies decide how to prioritize their different businesses. It is a table, split into four
quadrants, each with its own unique symbol that represents a certain degree of profitability:
question marks, stars, pets (often represented by a dog), and cash cows.
By assigning each business to one of these four categories, executives could then decide
where to focus their resources and capital to generate the most value, as well as where to
cut their losses.
The growth share matrix was built on the logic that market leadership results in
sustainable superior returns. Ultimately, the market leader obtains a self-reinforcing cost
advantage that competitors find difficult to replicate. These high growth rates then signal
which markets have the most growth potential.
The matrix reveals two factors that companies should consider when deciding where to
invest—company competitiveness, and market attractiveness—with relative market share
and growth rate as the underlying drivers of these factors.
Each of the four quadrants represents a specific combination of relative market share,
and growth:
❖ Low Growth, High Share. Companies should milk these “cash cows” for cash
to reinvest.
❖ High Growth, High Share. Companies should significantly invest in these
“stars” as they have high future potential.
❖ High Growth, Low Share. Companies should invest in or discard these
“question marks,” depending on their chances of becoming stars.
❖ Low Share, Low Growth. Companies should liquidate, divest, or reposition
these “pets.”
Bach Hoa Xanh can upgrade online sales channels and serve as a resource to
expand the Bach Hoa Xanh chain nationwide
Horizontal growth:
Bach Hoa Xanh's strong growth is thanks to continuously opening new potential
locations (mainly in rural areas, where other modern retail channels have not yet
developed strongly). Along with constantly upgrading the quality of existing stores. In
addition to fresh and live food products, Bach Hoa Xanh also expanded into pet care
products and products for mothers and babies. This helps them meet different customer
needs and creates opportunities to sell more products and services.
In the BCG model, Bach Hoa Xanh is currently positioned as "Cash Cows".
Bach Hoa Xanh has a relatively stable market share in the market. However, due to
opening too many stores but operating inefficiently, a professional management plan is
needed and aimed at long-term development.
After the initial phase of focusing on developing scale to gain market share and
mainly relying on support resources from the parent company, Bach Hoa Xanh is in need
of additional new cash flow to continue competing with a series of strong competitors
such as WinMart, Co. .op Food, GS25...
If the mobile phone and electronics chains The Gioi Di Dong and Dien May Xanh
only need a few years to start making a profit, then Bach Hoa Xanh, on the other hand, is
really a difficult problem for Mr. Tai. Support from new partners, especially experienced
corporations or supply chains in the industry, will help Bach Hoa Xanh more easily
perfect the supply chain, reduce costs of imported goods, and move forward. achieve
positive profits in the coming years.
In 2021, Bach Hoa Xanh's rival Vincommerce sold 16.26% of capital to Korean
group SK for 410 million USD in the first half of 2021, equivalent to a valuation of about
2.5 billion USD. Before the capital sale, Vincommerce had 2,300 stores, while Bach Hoa
Xanh currently has more than 2,100 stores.
Comparing under similar conditions, with even better profit potential, Bach Hoa
Xanh's business valuation will be no less, perhaps even higher, than Vincommerce.
Therefore, some analysts believe that MWG can absolutely earn over 500 million USD
when selling 20% of capital in this chain. This will be a relatively large source of money
to help Bach Hoa Xanh continue towards its expansion strategy over the years next.
MWG will prioritize the task of stabilizing and rebuilding the Bach chain
Green. The chain will not open new stores but will focus on attracting customers,
improving revenue, improving service quality and implementing promotional programs
to enhance competitive advantage in the food sector. fresh.
Bach Hoa Xanh is expected to generate positive profits by the end of this year after
reaching company-wide EBITDA break-even point thanks to higher sales per store and
cost optimization
Expanding store network: Bach Hoa Xanh is focusing on expanding its store
network. This includes opening new stores in strategic locations, as well as expanding
into new markets.
Store location optimization: Bach Hoa Xanh can focus on choosing strategic
locations for its stores. Placing stores in locations with high population density, easy
access and high shopping demand will increase the opportunity to attract customers.
Enhanced customer service: Providing professional, fast and friendly service can
create a positive experience for customers and help increase their brand loyalty.
Developing online sales channels: Bach Hoa Xanh can also focus on developing
online sales channels. This includes building an online shopping platform and developing
a home delivery service.
Building a brand ecosystem: Developing products under Bach Hoa Xanh's own
brand can also be part of the growth strategy, thereby providing value and differentiation
to customers.
Dien May Xanh can expand services related to electronic and home appliances,
such as repair services, warranties, or customer support services to add value for
customers.
Horizontal growth:
Dien May Xanh has created opportunities for itself by expanding into international
markets. Opening stores in many different countries has helped them reach new
customers and create significant growth opportunities.
Dien May Xanh has expanded its market by enhancing the services and products
they provide. In addition to electronic products, they have expanded into the home
appliance and furniture sector. This helps them meet various customer needs and create
opportunities to sell more products and services.
Dien May Xanh has focused on integrating related services to provide added value
for customers. This includes repair services, warranties, and customer support services.
This can increase the average order value and customer loyalty.
On August 20th, the Dien May Xanh Supermini system of Thế Giới Di Động officially
reached 1,000 stores nationwide. With this number, it is estimated that the annual
revenue for this model in 2022 will be around 12,500 billion Vietnamese đồng.
In 2020, with 300 stores, the chain generated revenue of 850 billion Vietnamese đồng.
By 2021, with 800 stores, the chain achieved revenue of 6,800 billion Vietnamese đồng.
However, considering the industry structure, the total revenue of the two chains,
Thế Giới Di Động (TGDĐ) and Dien May Xanh (ĐMX), in the first 8 months of the year
amounted to over 55,100 billion Vietnamese đồng, a 25% decrease compared to the same
period last year.
Regarding the industry, laptops and electrical appliances registered positive sales
growth in August compared to the same period last year.
As for Bach Hoa Xanh (BHX) chain, its revenue for the first 8 months of the year
reached 19,400 billion Vietnamese đồng, a 10% increase compared to the same period,
with online sales revenue growing by 8%.
Leveraging MWG's strong reputation and brand can help build and enhance DMX's
brand. This can boost customer trust and help DMX expand its market effectively.
Due to MWG's extensive scale, they can influence DMX's market development
strategy. They can evaluate and decide on opening new stores at strategic locations to
ensure success.
Optimizing operations:
MWG can play a crucial role in optimizing DMX's operations. By sharing
knowledge, best practices, and efficient resource management, MWG can help enhance
DMX's business performance and profitability.
- Target market: The market for mobile phones and consumer electronics in Vietnam is
one of the largest and fastest growing markets in Southeast Asia. With an increase in
income and an increase in living standards, the need to use consumer electronics,
especially mobile phones, is increasing.
+ Key product:
Mobile phone: MWG offers a wide range of mobile phones from various brands,
including famous brands such as Apple, Samsung, Oppo, Xiaomi, and many other
brands. Phone models vary from cheap to premium segments, serving the diverse needs
of consumers.
Tablets and laptop: MWG offers tablet and laptop products from well-known
brands such as Apple, Samsung, Asus, Dell, and many others. Diverse in size,
configuration and purpose of use, from office work to entertainment and gaming.
+ Key services:
After-sales service and warranty: Provides technical support, repair and warranty
services for mobile products and electronics. Ensure satisfaction and trust from the
customer.
Advice and user manual: Provide detailed information and product user guides to
customers, ensuring that they have the best experience from MWG products.
Research and Development (R&D) Develop a mobile phone product line with
advanced camera features. MWG has conducted research and development of a mobile
phone product line with a focus on improving and enhancing camera features
Market research and trend analysis: MWG conducts market research to assess
consumers' needs and preferences for mobile camera features. Analyze competing
products and comment on the advantages and disadvantages of similar products on the
market.
Focus on camera features: Identify advanced camera technologies and features that
MWG can integrate into the product. This may include advanced image sensors, low
light imaging technology, and other advanced photography features.
In addition to camera features, MWG also focuses on integrating other features such
as powerful performance, fashion design, and other special features to create a perfect
product.
Check and adjust: After completing the prototype, MWG conducts product testing
and adjustment to ensure that it meets quality and performance standards.
Run the test and proceed with improvements: MWG conducts test runs on target
markets to receive feedback from consumers. Based on feedback, the company can
conduct product improvements and adjustments.
Product launch and marketing: MWG launches a new mobile phone product line
with advanced camera features and conducts marketing activities to promote products to
consumers.
HORIZONTAL
1.3.2. Investment portfolio analysis
Revenue
The consolidated net revenue was VND 122,958 billion (+13% compared to 2020)
and reached 98% of the 2021 plan.
Online revenue reached VND 14,370 billion (+53% compared to 2020). With this
result, TD is the company with the largest sales in the online retail market in Vietnam.
In the fourth quarter of 2021, the Company recorded a record level of revenue and
profit since its operation, in which revenue grew by 33% and LNST grew by 66% over
the same period.
Profit
Mobile World Investment Company (MWG) has announced net sales in May
reaching VND 11,416 billion, equivalent to 2020
Accumulation from the beginning of the year, recording profit after tax increased by
1% to VND 2,202 billion over the same period, the business completed 35% respectively
% year-round profit plan (6,350 billion) in2021
In 2022, MWG set the challenge goal of revenue of VND 140,000 billion and debt
after tax of VND 6,350 billion, an increase of VND 14% and 30% respectively%
compared to the high results of 2021. As such, compared to the year-round plan, MWG
has implemented 42% of revenue targets and 35% of profit targets
Growth
The handheld market, which accounts for 50% of Apple's market share in Vietnam,
is likely to continue to narrow further, giving the Mobile World an advantage.
In recent times, Mobile World has been preparing to expand its market share,
aiming to increase the number of TopZone stores from the current 50 to 100, along with
upgrading existing stores in the Mobile and Electric World Series before the launch of
the iPhone 14.
Accordingly, Mobile World aims that Apple revenue in 2022 will increase 70.6% to
$ 750 million from $ 425 million in 2021, and continued to increase to $ 1 billion in
2023.
CONCLUSION: In the BCG model, Dien May Xanh is currently positioned as a "
STAR"
1.3.3. Corporate Parenting Strategy
Financial and resource management: Ensure that financial resources are effectively
managed to achieve long-term strategic goals.
Development and management of personnel talent: Ensure that the company has
enough talent and an active working environment to develop and maintain a talented
workforce.
1.4. An Khang
1.4.1. Corporate Directional Strategies
Ranking An Khang pharmacy in the "Stability" category and focusing on "No Change"
may be based on the following reasons:
Industry Sector:
Product stability:
Pharmaceutical products need to be carefully stored and managed to ensure quality
and patient safety. Any changes in the way a pharmacy operates can affect the
consistency and efficiency of the delivery of pharmaceutical products to patients.
Therefore, pharmacies often focus on maintaining stability in workflow.
Customer Needs:
Patients and customers in the pharmaceutical sector often desire assurance and
stability in the supply of medicines and pharmaceutical services. Any changes may cause
anxiety or insecurity for customers. Therefore, to meet their needs, pharmacies may
choose to focus on "No Change."
Risk Management:
Pharmaceutical products can carry health and safety risks if not managed carefully.
Changing processes and working methods can create risks for pharmacies and customers.
A focus on “No Change” can help minimize these risks.
Not only will MWG stop opening new stores, it will even close dozens of stores by
the end of 2022 to return to the number of 500 pharmacies. Although it has returned to
opening more stores in the first months of 2023, the pace has slowed down significantly.
Recorded at the end of June 2023, MWG had 537 An Khang stores, an increase of 37
stores compared to the beginning of the year.
If you look at An Khang's direct competitor, Long Chau of FPT Retail (FRT), this
pharmacy chain is continuously expanding its scale at a rapid pace. The number of Long
Chau stores by mid-2023 has reached 1,243, an increase of nearly 200 stores in just 6
months, equivalent to nearly 5 times the growth rate of An Khang.
"Exhausted" in the race for scale, An Khang's business situation is also facing
difficulties. After about 5 years of operation, the An Khang chain is still showing
"struggle" in finding profits. In 2022, An Khang pharmacy chain will lose more than 300
billion VND, and in the first half of 2023 it will continue to lose more than 150
billion VND. As of June 30, 2023, An Khang recorded an accumulated loss of more than
469 billion VND.
In contrast to that, Long Chau is a bright spot in FPT Retail's operations. Taking
advantage of increased demand during the Covid-19 epidemic, the pharmacy chain has
started making a profit for FRT since 2021, "reaching the finish line" 2 years early
compared to the original plan of being profitable in 2023. Moving on to 2022 , Long
Chau's profit was more than 53 billion VND, 10 times higher than the previous year's
figure.
In the first half of 2023, despite continuing to open new stores, business efficiency
at Long Chau store is still maintained with average revenue of more than 1 billion
VND/store/month. According to shares from the FRT Shareholders' Meeting, Long
Chau's goal of being profitable after 6 months of opening a new store has been achieved
by 99%. However, the profit that Long Chau contributes to FRT is not large because it is
in the expansion investment phase.
Not only that, An Khang's operating model has many similarities with the Long
Chau chain, but according to buyers' assessments, An Khang's location is not "prime",
the selling price is also not as competitive as the chain stores. medicine belongs to FPT
Retail.
In a message to MWG shareholders in early 2023, Mr. Nguyen Duc Tai said the
temporary suspension of expansion is to focus on increasing revenue per point of sale,
controlling costs to aim for profitable operations.
Mobile World Investment (stock code: MWG), Mr. Doan Van Hieu Em, Member of
the Board of Directors of MWG, said that the An Khang pharmacy chain strives to reach
the break-even point by December and then expand its stores. to increase coverage.
An Khang has temporarily suspended expansion since the end of 2022. Currently,
An Khang has more than 500 stores nationwide. Mobile World leaders said that
compared to other drug retail chains on the market, An Khang may rank third in number
of stores and second in revenue.
"In 2023, the pharmacy chain has no plans to expand but will focus on optimizing
operations in terms of display, inventory, pharmacist qualifications, prices and customer
attraction activities," Mr. Hieu Em share. According to him, the greatest value of a
pharmacy is taking care of consumers' health.
For a pharmacy, Mr. Hieu Em believes that the two most important factors are
convenience and adequate quantity of medicine. The company will not open a pharmacy
that is too large, only about 30-40m2 but still achieves the above two goals.
Also according to Mr. Hieu Em's share, the revenue of the pharmaceutical industry
has increased continuously over the years, with a scale of about 7.1 billion USD (169,000
billion). Vietnam is ranked as one of the countries with the highest
growth in the pharmaceutical industry. 70% of revenue comes from the ETC channel
(bidding through hospitals) while 30% comes from the OTC channel (retail).
Currently, Vietnam has over 60,000 traditional pharmacies, accounting for 95% of
the quantity and 85% of the revenue of the pharmaceutical industry. The number and
revenue of An Khang's stores are still too small compared to the above numbers, so Mr.
Hieu Em estimates that the pharmaceutical industry's potential is still large.
1.5. AVAkids
1.5.1. Corporate Directional Strategies
Growth Strategies:
AVAkids orientation: Improve revenue and streamline operations regarding point of sale,
inventory management, and product offering to build AVAKids as a destination for baby
diapers and milk products.
But in the mother and baby market, AVAkids has now expanded its business scope
nationwide with diverse products to meet the full shopping needs of mothers and babies:
AVAKids still shows its ability to meet most consumer needs when providing a variety
of products for mothers and children.
+ The main products sold in the system include milk, diapers, foods with clear
origins, safe cosmetics, daily necessities, toys and other items. fashion products,
baby bicycles... Fathers and mothers can access brands from familiar to high-end
brands such as powdered milk and liquid milk products from Abbott, Enfa,
Vinamilk, TH true milk, Nuti, Friso, Nestle...; diaper lines of Bobby, Huggies,
Merries...; cosmetic brands specifically for children with all kinds of shower gel,
laundry detergent, milk bottle cleaner... such as Pigeon, Johnson & Johnson, Arau,
Dnee...; or baby supplies from strollers, cradles,
high chairs provided by Gluck, bottles, pumps, sterilizers, food blenders... from
Philips Avent, Spectra...
+ With the goal of targeting "little customers" from 0-9 years old, AVAKids also
chose the famous toy brand Lego to accompany alongside other diverse toys and
learning tools; At the same time, it distributes many eye-catching "outfits" suitable
for all ages from children's fashion brands Canifa, Lullaby,...
+ Coming to AVAKids, even women who are and are about to become mothers will
easily find the right item for themselves. Many items from cosmetics to care for
pregnant mothers to tools to support the process of raising children are also
carefully imported by AVAKids, ready to bring maximum convenience to women
during pregnancy and pregnancy. Be a modern mother.
+ In addition, customers who want to buy gifts for the women of the family or little
angels will also find at AVAKids an address worth visiting. A new shopping space
with many amenities, covered in vivid pink and blue colors and a team of
professional staff who understand customers, promises to make shopping fun for
small families. Try coming and experience the new "paradise" for mothers and
babies called AVAKids!
So the store chain will follow the "Concentration" growth strategy and focus on
horizontal growth
This is consistent with the theory of corporate level strategy When in the SO
position on the SWOT table
+ The parent company has a strategy that is suitable for AVAkids. They invest a lot in
the mother and baby market
● As of June 2022, Mobile World's AVAKids chain (HoSE: MWG) officially
reached the milestone of 50 stores after 5 months of operation.
● AVAKids has clearly gone all out and made no secret of its ambition to close the
gap with its opponents as quickly as possible. With an average opening rate of 10
new stores/month
● AVAKids' online revenue accounts for about 25 - 30%, higher than the average of
about 16% of MWG's online revenue, showing that the habit of shopping for
diapers over the internet of parents has surpassed that of the general public. . This
creates a basis for AVAKids to invest heavily in online channels in parallel with
opening new traditional stores.
2. Business Strategy
2.1. Bach Hoa Xanh
2.1.1. Competitive Strategy
Bach Hoa Xanh is rich in diverse items such as: beverages, beer, soft drinks,
powdered milk, fresh milk, cooking spices, ready-to-eat foods, canned foods,
confectionery, snack, shampoo, conditioner, shower gel, washing powder, liquid
detergent and conditioner. In 2019, Bach Hoa Xanh owns nearly 700 stores because
Bach Hoa Xanh has chosen the right way to actually go, find a standard model and then
scale up. This strategy has helped Bach Hoa Xanh gradually assert its position in
business.
- Hit consumer psychology From the beginning, Bach Hoa Xanh has focused
on meeting the top three choices of consumers when choosing to buy food today. It is to
ensure product quality, clear origin but the price is always cheap, even cheaper than
traditional markets. Along with that, the friendly and enthusiastic staff has helped
Bach Hoa Xanh attract and retain customers. In addition, many housewives are worried
about going to the market because they are too busy like picking up children and
blocking traffic in the afternoon, when Bach Hoa Xanh has a strategy of delivering
products with orders of over 10 USD.
Product In order for Bach Hoa Xanh to get customers from the traditional market,
this is a huge number of customers, Bach Hoa Xanh has promoted the selection of fast-
moving consumer products with clear origin certification and selected good products in
the Typical local shelves to meet the needs of customers. To have a good profit, Bach
Hoa Xanh will get products from the manufacturer, not through any channel. With green
vegetables, instead of selling ready-to-sell bags, stores let customers buy in arbitrary
quantities. Marine fish will be imported directly from the waters, not through Binh
Dien market as the current chains. As for fruits, the company will not go through import
companies but import from growing areas. As a result, the product price will be cheaper
and more competitive than any other system. Fresh meat, raw fish is an outstanding
strength compared to competitors in the same industry today. And is the sum of the
advantages of
traditional markets and supermarkets, is new and different from other mini supermarkets.
Thanks to this model, each department store serves an average of 500 successful daily
transactions. In addition to diversifying food sources, this unit also runs a series of strong
discounts every week, applying more than 200 fresh and consumer goods of all kinds.
Many programs offering gifts, attractive discounts up to 10% for vegetables and 40% for
fast-moving items are also conducted regularly. With this method, Bach Hoa Xanh
received many responses from housewives
Bach Hoa Xanh has a diverse cooperation strategy with different partners to develop
sales channels and provide high quality products to customers. BachHoaXanh's
cooperation strategies include:
Cooperation with manufacturers and suppliers: Bach Hoa Xanh continuously
searches and cooperates with manufacturers and suppliers to expand product portfolio
and ensure product quality.
Cooperation with business partners: Bach Hoa Xanh cooperates with business
partners to expand sales channels and reach customers in many different locations.
Collaborate with experts and the community: Bach Hoa Xanh partners with experts
and the community to find sustainable and innovative solutions to help expand its
business and provide quality products high quality.
Cooperation with shipping partners: Bach Hoa Xanh cooperates with shipping
partners to ensure delivery time and minimize shipping costs.
Thereby, Bach Hoa Xanh wishes to create a sustainable cooperation network to meet
customer needs and expand business activities.
Business strategy Dien May Xanh focuses on delivering high value to customers through
unique, high-quality products, or excellent post-sales services. They provide value to
customers through products and the customer experience, and may concentrate on
promoting this value to attract and maintain loyal customers.
➤ Broad Differentiation
Product diversity: Dien May Xanh offers a wide range of diverse products and services,
not limited to a specific field. This includes consumer electronics, household appliances,
electronic devices, air conditioning, home appliances, and many other products. This
diversity allows them to serve a variety of customers with different needs and
requirements.
High functionality and quality: Dien May Xanh focuses on providing high-
functionality and high-quality products, making their products unique and appealing to
customers. This may include offering high-tech products, unique designs, or excellent
post-sales services.
Large volume with multiple suppliers: Dien May Xanh has the capability to
collaborate with numerous suppliers on a large scale, helping them create a diverse and
unique product portfolio.
Uniqueness in the product portfolio: They offer products from well-known brands both
domestically and internationally, such as Japan and South Korea, creating diversity and
differentiation in their product portfolio.
Quality of Product:
Thegioididong focuses on providing genuine and high quality products that meet the
needs and expectations of consumers
Based on the shopping and use habits of consumers' smart devices, the phone is from the
top search store. In order to suit every shopper looking for phone lines, customers often
consider and choose to conform to their set standards, for example quality, specification,
price, style, so the Thegioididong has divided many customer segments to suit the needs
and pockets of people when shopping at stores in World Mobile circles.
Thegioididong offers a wide range of products from mobile phones, tablets, accessories
and other electronics. They focus on providing quality and diverse products, helping to
attract a wide range of different customer audiences.
Cost Leadership:
Thegioididong regularly applies discount, promotion and incentive programs to attract
customers. This helps the company provide competitive prices and enhances
attractiveness in the eyes of consumers.
The company is constantly expanding its network of retail stores nationwide, facilitating
easy access to customers.
Technology Integration:
compared to the magic or cellphone or other technology retail stores, the mobile world has a high
Focused Differentiation
Supplier Partnerships: Mobile World can work closely with suppliers to ensure a
constant supply of products, at the same time provide professional and financial support.
Retailer Alliances:Mobile World can partner with other retailers or expand its sales
network through business collaborations to expand access to market.
With the criterion "all the medicine you need", An Khang pharmacy has an
extremely diverse list of goods from medicines, functional foods, cosmetics, medical
equipment...
Goods at the pharmacy always have a transparent origin, clear invoices and
documents from reputable pharmaceutical companies, helping consumers easily look up
and use with peace of mind.
The traditional store layout helps attract new customers while still ensuring the
retention of old customers.
One of the four core values of An Khang pharmacy to customers is "Peace of mind
about price". True to the system's desire to care for and serve community health with the
best quality and reasonable prices, products at An Khang pharmacy are always sold at
listed, clear, and reasonable prices.
2.5. AVAkids
2.5.1. Competitive Strategy
AVAkids chooses to competitive advantage by differentiating itself along dimensions
valued by customers to command a higher price. AVAkids also chooses types of scope
is offering its product across many market segments.
+ AVAkids has a large scale with 5,000 items belonging to famous domestic and
foreign brands such as Japan and Korea. They provide a wide variety of products
for mothers and children.
+ Products sold by AVAKids will give you more peace of mind than ever because the
products have clear origins and are all high quality products.
+ Mobile World leaders said that the company has proactively outlined its strategy
from the beginning, aiming for a model that synthesizes and selects the
strengths of many current systems. According to Mr. Doan Van Hieu Em, CEO of
Mobile World and Dien May Xanh chains, shared at the launch of the AVAkids
chain: "For example, some places focus on children's clothes, some places focus
on milk or toys and Mobile World's AVAKids will be the sum
of all those "cool things""
2.5.2. Cooperative Strategic
AVAkids cooperates with many quality brands globally with the goal of providing
customers with many choices through many distribution channels and a variety of
products.
2.6. SUMMARY
Both Dien May Xanh, Thegioididong and AVAkids are in star positions. MWG should
invest more in these chains. And the strategies mentioned in the above sections also
prove that MWG is doing it right in theory
An Khang pharmacy is in a weak position. It is necessary to stop or change the
company's strategy. In 2023, MWG will also stop expanding the An Khang pharmacy
chain. It seems they want to reorient this subsidiary
For Bach Hoa Xanh, it is necessary to maintain its current position
3. Functional Strategy
The functional strategy of a business like The Gioi Di Dong (TGDD) can encompass
various aspects, depending on the specific goals of the company and the market in which
they operate. Below are some important factors in the functional strategy of TGDD:
+ Product and Services: TGDD can define a strategy related to providing specific
products and services such as mobile phones, tablets, accessories, warranty
services, maintenance, and customer support services.
+ Distribution Channels: This involves deciding how TGDD's products and services
are distributed, including direct retail stores, authorized dealers, online sales
websites, and mobile applications.
+ Pricing and Price Strategy: Determining the pricing strategy for the company's
products and services, including how they price their products, discount
strategies, and promotional programs.
+ Marketing and Advertising: The functional strategy will outline how TGDD
will reach and market to customers through advertising campaigns, both
traditional and online marketing, and how they build their brand.
+ Human Resource Management and Workforce Development: This includes
strategies related to recruitment, training, and developing employees to ensure
they have the necessary skills and knowledge to execute the company's strategy.
+ Research and Development: Strategies related to investing in research and
developing new products or improving existing products.
+ Supply Chain: The company needs to manage its supply chain to ensure an
adequate and efficient supply source for manufacturing and distributing
products.
● Strategic Implementation
1. Organizational Design
Duties of the departments of Mobile World Investment Joint Stock Company:
Supervisory Board: The Supervisory Board is responsible for inspecting the Company's
financial activities, supervising compliance with the accounting regime, internal
processes and regulations of the Company, and appraising the Report. annual financial
report, reporting to the General Meeting of Shareholders on the accuracy, honesty and
legality of the Company's financial statements.
Board of Directors: The Board of Directors is responsible for planning the company's
strategies and development goals in the short and long term. Operate and manage the
company according to the proposed development direction. The Board of Directors has
the highest responsibility in the organization, manages all daily business activities of the
company, and is the company's representative before the law. Organize the
implementation of Resolutions and Decisions proposed by the Board of Directors.
Marketing Department: Promote and expand the company's brand image to the outside.
Implement policy programs planned by the Board of Directors, organize activities to
attract customer attention to the company's products such as organizing advertising
events, promotions... management and customer care.
Online Sales Department: plans, strategies and implements business activities including
direct sales in supermarkets and online sales through the company's website system.
TCC Department (Mobile World Care Center): Resolves warranty and repair needs of
goods and equipment for customers.
Product Department: Contact suppliers to order products that customers are in need of.
Responsible for ensuring the quantity of goods for supermarkets to sell, managing
inventory and transporting that inventory to missing supermarkets.
To help the company run well,Nguyen Duc Tai had used directing leadership
styles in this process. As a manager, every project of the company must have the
instructions of the leader. In 2004, at 89A Nguyen Dinh Chieu (District 3, Ho Chi Minh
City), Mr. Nguyen Duc Tai and his associates started with the first MWG store
Almost all jobs in the store are under the direction and guidance of Mr. Tai. He said
that when the company was first established, he did not delegate such authority to
his employees but directly direct and guide the work. It also makes the amount of work
that he has to handle becomes very much and exhausting. Nguyen Duc Tai almost used
the 'carrot and stick' between2004 and 2005, when the company was newly formed. And
then he felt that the company's laws were the only way that the company could run. He
was still vague in his belief then because only one clear headed manager was needed
when the other employee always complies with everything the manager needs. In his
opinion, nice, rigorous management will improve the organization and remove any
employee who can not cope.
In addition to direct leadership and guidance, Mr. Tai also demonstrates the ability
to direct a team of lower managers with a strong, high commitment. During the seminar
in the city. Ho ChiMinh City in September 2019, Chairman Nguyen Duc Tai of the
Mobile World retail chain,revealed the core business secret for the first time. "The
business model is not a god that makes success; most of the first is wrong. Without
adjustments, changing in time is the model of failure and death. You see a lot of things
like that in this life. Ask who is the one who makes those changes, is willing to deny the
things you have previously believed in, is a highly motivated team", the President of
MWG concluded. In this situation, the members of the company are divided into two
categories: D1 and D2. Suppose if the talented person uses the reverse delegation instead
of directing, then surely the inexperienced staff. Then the company will not be able to
perform well.
After going through a tough and challenging start, start with just one store.
Currently, MWG has become one of the leading corporations in electronics and mobile
phones in Vietnam. To do that,it must be mentioned the changes and reforms in the
management of superiors like Mr. Tai. Let'slearn about the next style that he recently
leading the company in the next section
Directive Leadership Style: He describes that in the early stages when the company was
newly established, he did not delegate authority but directly provided guidance and
instructions for tasks.
Carrot and Stick Approach: He combines both praise and disciplinary actions when
necessary to motivate and control employees. However, later on, he felt that it was only
the company's rules and regulations that could make the company function effectively.
Directing Leadership: In the early stages, he did not delegate authority to employees but
personally engaged in directing and guiding.
MWG has been in the market for many years, being a leader in many large corporations
and starting from the rule of law, but with the management philosophy of Mr. Nguyen
Duc Tai, the sincerity and faith in his son People are the core things to create a rule of
law from a heartful of love. That is also the basis that creates the basis of
humanitarianism in The Mobile World.
Analyze:
Branch expansion stems from groundbreaking ideas and a team of highly experienced
staff, with high commitment and high competence. When having converged all the
necessary elements in aspects such as: communicating with customers, boldly
absorbing opinions,accessing customer tastes, ... He made positive moves when let
subordinate employees take control and not interfere with social support when it is not
needed.
Participating
Analyze:
After "The Mobile World" was expanded across the country, as the mobile phone
business became saturated, the branches of "TGDD" were cut back to focus on
electronics projects development and department store. The staff of "TGDD" after many
years working in the mobile phone business have full experience in the business, along
with a reasonable salary and compensation regime that makes the commitment of the
employees high. But in the new field, the staff does not have the experiment and
competence. Mr. Tai participates in the business process with his employees to guide
them in the right direction
In Vietnam, there is a business that has achieved miraculous and sustainable success
over the years by building an early corporate culture around two main core values:
"customer satisfaction and respect for each employee's contribution - that business is
Mobile World (MWG)". The Mobile world sells customer satisfaction, and this message
is well understood by almost every employee in the company. "Customers leaving the
store with a satisfied smile even if they don't buy any products, is a success." In addition,
the company's corporate culture values the contributions and opinions of all employees,
whether those at the bottom or the youngest. "Never Consider an employee as a seller of
labor but the boss plays with enough tricks to buy it at cheap price.".
At Mobile World Company, the culture is created and modeled by the leadership,
best-serving customers because customers are the core factor for the success of the retail
company, not shareholders or BOD. MWG will put in place sanctions to orient all
employees to instill that culture, the right people will increasingly love working for the
company, and the unsuitable people will be pushed out. Even if not working for Mobile
World, the company's culture will help former MWG employees stand out from the
crowd, wherever they work. We all know that MWG is the number one retail
brand in Vietnam. That is entirely thanks to the establishment of a unified and transparent
company culture, which is strictly enforced from the top down to each employee. Anyone
who wants to work for Mobile World must know the framework - the cultural model of
the company.·
● Attentive to customers: consumers come first. Always keep a polite, friendly,
cheerful, and gentle attitude with consumers.
● Honest: Being financially honest does not appropriate assets that are not yours
● Integrity: Commit everything to the customer, accept responsibility when doing
wrong and fix the consequences
● Take responsibility: always take responsibility for everything that goes wrong.
Don't point your finger at others
● Love and support teammates: Always treat teammates with love and find ways to
support teammates to complete their jobs well.·
● Blood at work: always say "Yes"; do it fast; not afraid of difficulties·Quality is
vital: "Do not buy - sell" poor quality goods.
This is MWG's next direction, after taking market share from the low and middle
segments, in order to continue its growth target for the ICT segment.
+ When TGDD and DMX begin to slow down in the next few years, MWG plans that
in the next 3-5 years, the group's revenue will come largely from the BHX
segment.
+ Seeking growth opportunities through new business models In addition to BHX,
MWG began to expand and test new models to explore other fields and other
fertile lands to maintain its growth momentum. corporation in the following years.
In addition, MWG also achieved positive business results with the An Khang pharmacy
chain. The industry's remaining space is still large, MWG is currently reviewing and
adjusting An Khang's identity with the goal of accelerating in the near future. Aiming for
Top 3 sales in the pharmaceutical segment.
B-Operating Performance Evaluation
In 2018-2019, profit from sales and service provision increased from VND 3,774
billion to VND 5,034 billion (an increase of about 33.40%). Profit in 2020 increased
compared to 2019 is about 1,638 billion (equivalent to 7.05 %, a sharp increase).
Especially in2020, MWG recorded a loss from other activities for the first time in the last
three years,under the negative impact of the pandemic
MWG's gross profit margin is also the highest among listed electronics
and home electronics retail businesses. In 2020, MWG's gross profit margin was 22.07%
superior to FRT's 13.92% and DGW's 6.41%.
The reason leads to MWG's gross profit margin is superior to other retail businesses
in the same industry is because (1) Along with the traditional mobile phone industry,
MWG also has an additional electronics industry accounting for a large proportion of
revenue with a better gross profit margin than the mobile phone industry with a saturated
market, (2) the scale of revenue along with the largest market share in the mobile phone
industry as well as the electronics industry help MWG increase the power of
negotiations with customers to increase gross profit margin.
C-Control
Controls can be established that focus on actual performance results (outputs). Activities
that produce performance (behavior) or resources Performance (input). Output control
determines what focus should implement Measure the end results of actions by using
goals and performance Goal or milestone. Behavioral control determines how something
should be done Policies, rules, standard operating procedures and instructions from
supervisors. Entrance Control emphasizes knowledge, skills, abilities, values and other
resources employee motivation
● Conclusions A-
Achievements
★ Top 10 Enterprises The largest in Vietnam according to VNR500 rankings
★ No. 1 retailer in Vietnam and the only Vietnamese company in the Top 100
Retailers in Asia - Pacific (Top 100 Retailers in Asia - Pacific).
★ More scale 5,700 stores increased by more than 600 doors of goods compared to
2021.
★ The company has the largest sales volume in the total value of the online retail
market in Vietnam.
★ Top 50 most effective business companies in Vietnam by Magazine
★ Chi Nhip Cau Investment.
★ Top 50 listed companies Best list in Vietnam of Forbes Magazine.
★ MWG's 3 major brands are all in the ranking of the 50 most valuable brands in
Vietnam (The Brand Finance), Dien May Xanh is at 19th position, Bach Hoa
Xanh is at 26th position, Mobile World is at 27th position.
★ The number of employees is more than 70,000 employees by the end of 2022..
B-Shortcomings
- Competition Between Competitive Businesses: In the electronics retail industry,
MWG must compete with strong rivals such as FPT Shop, Viettel Store, and other
mobile phone retail chains. This requires MWG to maintain and continually
improve its business services and strategies
- The online user experience is not optimal: Although MWG has developed the
Vuivui.com e-commerce platform, it may still be necessary to optimize the online
user experience. This includes an easy-to-use interface, fast page loading speed,
Convenient payment process and other interactive features to attract and maintain
customers online.
- Changes in consumer requirements and preferences: The consumer market may
change rapidly, and therefore, Businesses need flexibility to meet new and
changing consumer requirements.“Consumers have begun to saturate with
smartphones, where consumers line up to buy new phones far away. The market
has gone to another page.” - President Nguyen Duc Talent
- Unreasonable expansion decision: Expanding too quickly or into inappropriate
markets can lead to unstable financial status and loss of profits --> Careless
warehouse management The kidneys can lead to ineffective inventory and reduce
profits.
- Difficulties in recruiting and maintaining talent: In a competitive market such as
electronic retail, Attracting and maintaining skilled and experienced employees
can be a challenge. The gradual allocation of resources is an obstacle to MWG due
to increased competition with other companies. Besides, personnel management
and staff training must also be improved
C-Potential rationales
➢ Vietnam's retail industry has high growth in the long term
Vietnam's retail industry is still very bright in the long term thanks to:
- The market of 100 million people is in the period of "golden population" structure
and has average income increasing rapidly by 8%/year until 2030.
- Average GDP growth is high, over 6.5%/year in the period 2022 - 2030
- FDI capital continues to consider Vietnam an attractive long-term investment
destination
Thereby, retail sales of goods are forecast to increase ~ 10%/year until 2030.
➢ Modern retail channels help MWG maintain positive revenue in the long term
➢ MWG still maintains its top 1 position in the industry
➢ Reduced lending interest rates stimulate consumer lending to help ICT revenue
recover from the low base of 2023.
➢ Growth opportunities through new business models: AVA Kids is having quite
positive initial results. With An Khang, MWG temporarily expanded to optimize
and reevaluate the operating model. Boosting revenue in the electronics -
electronics segment through increasing market share & working with suppliers to
increase monopoly advantages, while focusing on optimizing revenue on one store
of the Bach Hoa Xanh Chain
D-Suggestions
1) Create a stable source and focus on recruitment quality, expand more channels to
connect with candidates such as: combining with localities; Accompanying with
Universities and Colleges, introducing jobs for demobilized soldiers…
2) Continue to deploy flexible working forms and payment methods suitable to the
nature of work and the needs of each employee.
3) Focus on training, skills training and leadership capacity development for all
levels of management.
4) Building more than 1,000 self-study E-Learning lessons along with many
professional tools on the online platform makes teaching and learning, improving
the professional knowledge of employees more convenient and proactive.
5) Ensure the year-end bonus policy is closely linked to business performance,
consistent with the development stage and goals of each chain.
6) Communication and advertising information at the store is managed according to
time and activities/programs automatically.
7) Electrical, water, and electronic devices are gradually being automated according
to IoT.