I.

About Crimson Education:

In recent years, the demand for studying abroad in Vietnam has experienced a
remarkable surge, reflecting a growing trend among Vietnamese students aspiring for
a globalized educational experience. The COVID-19

According to a study by the INTO education organization conducted in 2022,

up to 75% of high school students in Vietnam intend to study abroad. However, only
about 1-2% of students actually achieve this dream. There are many reasons that make
this happen. Though the economy in Vietnam is in an upward trend, study abroad is
still an expensive and luxurious choice for many Vietnamese families.

Crimson not only provide counseling for admissions to universities but also
have others services:

College Admissions Counseling: Create ideas, plans, and support

implementation plans for projects, extracurricular activities, and leadership. Find
ideas, sketch content, as well as give comments and complete personal essays. Provide
advice and strategies for applying for scholarships and financial aid. Support for the
interview round with top and experienced mentors from top schools in the world. This
package starts with a price of $20,000 in the first 2 years advisory and higher with a
longer time.

Crimson Rise: Students receive granular, 1:1 extracurricular mentorship on

landing leadership positions, competition placement, and shadowing or internship
opportunities, in addition to start-to-finish guidance on developing original capstone
projects that demonstrate passion, commitment, and above-grade project management
skills. Every project, topic, and skills focus in the Rise program prepares students to
excel in the university admissions process. Crimson’s admissions strategists are the
best in the world, hailing from Stanford, Princeton, Yale, Oxford, Cambridge,
Imperial, and many more top universities, and their industry knowledge, combined
with Rise’s expertise in child psychology, ensures our students have personalized,
effective growth plans that will lead them toward their dream schools—no matter how
early they start.

Indigo Research - Doing Scientific Research for High School Students: This
course will help students turn their ideas into their field by working with them to
develop their expertise and publish their findings in academic journals. Students will
be guided by Ph.Ds and faculty researchers from top US and UK universities who
work at the cutting edge of their fields.

Crimson Careers: Internship Program for High School Students: This course
will help students learn from industry professionals at a university level. Secure
practical skills to help future employment pursuits, work on live projects from the
company and pitch to company representatives their findings. Finally, students will
gain referral letters and certificates from companies to help their future college and
job applications.

II. Level of products of Crimson Education

The concept of level of product first published by Philip Kotler, in “Marketing

Management: Analysis, Planning and Control” (1967). In this statement, he also
provided three ways that customers attach value to a product: based on the need, want
and demand of people. It forms the first level of the concept of Three Levels of a
Product.

Three Levels of Product suggested that products can be divided into three
levels: core product, actual product and augmented product. In the Crimson Education
case, Three Levels of Products can be distributed into 3 segments mentioned below.

First is the core product. Core products are the fundamental need that the
customer is satisfied when they buy the product. In order to identify the core customer
value of a product, a simple question must be answered: What is the buyer really
buying?

As mentioned below, Crimson Education core value is College Admissions

Counseling. They work with students to set goals, assess their chances of admission at
their top schools, and build their admissions profile to best increase their odds of
success.

Second is the actual product. This entails creating the design, features, quality
standard, brand name, and even the packaging of the product. The greatest and
simplest alternatives for distinctiveness are provided by the actual product. Similar
products can be distinguished from one another by distinct features, designs,
attributes, etc.

When customers decide to choose Crimson Education, they are able to have the
different services: College Admissions Counseling, Indigo Research - Doing
Scientific Research for High School Students, Crimson Careers: Internship Program
for High School Students,..

The last one is augmented product. The augmented product adds more
alternatives for differentiation, even though the actual product offers the greatest
possibility for differentiation. Usually, the main focus is on the product itself and the
guiding principles. It only provides more benefits and services for consumers.

With Crimson Education, students can offer special and high-end consulting
services, allowing students to work directly with Former Admissions Officers (FAOs),
these experts all come from famous universities in the US and UK.

III. PESTEL of Crimson Education:

An external environmental analysis considers political, economic, socio-
cultural, technological, legal and environmental (ecological) forces that affect
Crimson Education.
1. Political:
Political factors relate to government controls and influences over the economy
or industry. Factors such as government stability, regulations, and tax policies can all
affect a business's costs, profits, and growth. As the case of Crimson Education, we
mention some political impact on the business.
First is the education policy in developed countries.
 In recent years, developed countries such as Australia, America, Canada,...
implement many policies to attract international students: extend visas, grant high-
value scholarships, lower IELTS score requirements, etc. The Australian government
provides a list of majors which are able to extend 485 visas after graduation. At the
same time, this country also increased overtime to 48 hours per two weeks and gave
priority to an additional two years of stay after graduation for degrees in the list of
priority occupations. As a result, according to the Australian Trade and Investment
Commission (Austrade), as of September 2022, Vietnam ranked 5th among countries
with the most students coming to study in this country with 100,000 people.
Another country with famous universities that Crimson targets for is the US.
Many colleges and universities in the US have financial aid programs in the form of
scholarships for outstanding international students. This form of support will help
students cover course costs. Many schools, especially private schools in the social and
natural sciences, have full scholarships for a group of top international students.
Information from the US Embassy in Vietnam said that according to the 2023 Open
Doors Report of the Institute of International Education (IIE), the number of
Vietnamese students at US universities and colleges increased by 5.7% to 21,900
students in the 2022-2023 school year. Vietnam continues to rank 5th in the group of
countries with the largest number of students studying abroad in the United States.
With all of the policies that make studying abroad easier for students, Crimson
Education has a chance to approach the Vietnam market with more and more students
who have aspirations to come overseas.
Second is the regulations of the Vietnamese government. Vietnamese
government also make the regulations that can support
Because of this, it can be said that political influence on Crimson Education.
2. Economics:
Economic factors have a direct impact on a company’s long-term prospects in a
market. The economic environment may affect how a company prices their products
or influence the supply and demand model.
First, there is a significant recession in economic:
 Too many blackholes have pushed the global economy in 2023 into one of the
bleakest periods since the 2007-2008 world financial crisis. The impact of COVID-19
on economic has not yet healed and still leaves painful pain, followed by the
escalating Russia-Ukraine conflict, disruption of energy and food markets due to the
war causing and most recently the comprehensive crisis in the Gaza Strip related to
the conflict between Israel and the Palestinian Islamist movement Hamas.
In general, global economic conditions in 2023 are quite fragile, vulnerable.
The burden of public debt and the unprecedented tightening of monetary policy in
many countries have created additional obstacles and slowed down the economic
recovery process.
In 2023, the world economy also struggle with the fight against inflation.
Economies that rely heavily on energy imports have experienced sharp price
increases, especially since oil and gas imports from Russia broke down. According to
the IMF, high energy prices and reduced supply play a large role in pushing core
inflation up in many countries. Food prices are also high and face the constant risk of
supply disruptions, causing difficulties for many low-income countries and developing
economies. This reality causes many countries to buckle under the pressure of fighting
inflation and the economic recovery process always faces obstacles.
The difficult external environment and weak domestic demand are the main
causes of Vietnam's economic growth to slow down.
On the other hand is the growing middle class in Vietnam.
Vietnam boasts the region's swiftest expanding middle class, expected to
burgeon by an estimated 33 to 44 million individuals by 2025.
The International Monetary Fund (IMF) forecasts that Vietnam's GDP scale in
2023 (about 413.81 billion USD) will rank third in the ASEAN region and 35th
worldwide. By 2024, Vietnam's average GDP will exceed the 5,000 USD mark
according to IMF forecasts. Vietnam's average GDP is about 5,118 USD, ranking 6/10
in ASEAN.
This objective is already on the right track as Vietnam has the 7th fastest
growing middle class in the world. In the list of 9 Asian countries forecast to have the
largest number of people joining the middle class by 2024, Vietnam ranks 5th, with 4
million people.
A growing middle class brings many advantages to the country. A country's
middle class represents the overall economic health of that country. The growing
middle-income segment often opens higher levels of wealth and well-being,
representing strong financial prospects for the country. Additionally, a growing
middle class is helping the country's average educational achievement to be higher.
When families escape poverty, their future prospects will change. Instead of focusing
on daily needs like the next meal or going to the doctor, they can plan their budget and
calculate more long-term and prioritize their children's education. Therefore, if parents
only have an elementary school education, they can aim for their children to attend
high school or higher than college.
3. Social:
Social factors, such as demographics and culture can impact the industry
environment by influencing peak buying periods, purchasing habits, and lifestyle
choices. Society is important as people’s culture and lifestyle can influence when,
where and how they are likely to engage with products and services.
First is the increase in the number of people using social media.
In Vietnam, a survey by the Department of Children, Ministry of Labor, War
Invalids and Social Affairs showed that in the third quarter of 2022, 89% of children
used the internet, of which 87% used it daily, for 5 to 7 hours/day. By using the
internet, children can have a way to access information about everything in the world
just by a click.
Using social media
Second is the
4. Technology:
Technological factors may have a direct or an indirect influence on an industry.
While some industries will be more affected by technology than others, innovations in
technology may affect the market and consumer choices and buying power.
First is the increase in education technology.
 In 2022 alone, more than 100 EdTech startups were founded in the country,
and existing firms invested in and expanded their services to accommodate the rising
demand. Although schools are now open for face-to-face education, EdTech and
technology, in general, are still proving to be a valuable asset for learners and
educators alike. Vietnam is looking to integrate more digital technologies into school
learning and training activities.

5. Environmental:
Environmental factors include all those relating to the physical environment
and to general environmental protection requirements. While the environment is more
important to some industries, such as tourism, agriculture or food production, these
factors may influence a range of different industries and are worth being aware of
First is climate change.
Increased natural disasters could disrupt operations and impact student
mobility, affecting Crimson Education's planning and outreach.
Sustainability Practices: Implementing sustainable practices aligns with
Vietnam's growing environmental awareness and strengthens brand image.
6. Legal:
Legal factors may affect both the internal and external environment of a
company. The legal and regulatory environment can affect the policies and procedures
of an industry, and can control employment, safety and regulations.
First is the visa regulations.
Changes in visa policies for international students and educators could impact
Crimson Education's ability to operate and attract talent.
Second is the regulations and law in Vietnam.
The Vietnamese government has detailed laws about organization counseling
students to study overseas in “Regulation on conditions for investment and operations
in the education field” (2017). Besides, they also provide support for education centers
to improve the quality of education in Vietnam. The regulations related to education,
especially education centers, are always public and stable for Crimson Education to
follow. However, any changes in policies could affect demand for their services.
 IV. Competitive strategy
Crimson Education is the study abroad counseling center. Therefore, they need
to face other centers which help students to achieve their target. Some study abroad
counseling centers in Vietnam: IDP Education, VNPC, The Education Company, New
Ocean, AMEC,... In order to make a sufficient strategy for Crimson Education, we use
SWOT analysis to access knowledge about the company.
First is the strengths.
Crimson Education has a strong brand value as evidenced by the 80% of
students and families who awarded them a perfect 5-star rating. Moreover, 98.1%
have rated 4 or 5 stars, underscoring the consistent quality and effectiveness.
Crimson Education has new products mixed. It not only offers advice services
for study abroad but also has other services: Indigo Research - Doing Scientific
Research for High School, Internship Program for High School Students.
Crimson Education has a different market segment. Crimson focuses only on
top US universities, which makes them have another way to approach the customer.
Unlike other consultancies, Crimson does not limit the number of essays to support
our students with, and they provide a truly comprehensive extracurricular/capstone
building and summer program service unlike any other.
On the other hand is the weakness.
Crimson Education has high prices. Compared to the other counseling center,
the prices students need to pay for tuition in Crimson Education is higher.
Crimson Education is a new business in the Services Industry. Crimson
appeared in Vietnam in 2013, while their competitors were established long before
them (IDP made a first appearance in 1996, VNPC published in 2006,...)
With all of the strength, Crimson has many opportunities.
The growth of the middle-class in Vietnam is a high opportunity for Crimson to
expand their customer base. With the upward trend of Vietnamese rich families, they
tend to develop a desire to raise their sons academically. Because of the increase in
interest in study abroad, Crimson can open their customer base, have loyal customers.
Collaboration with local centers can also provide opportunities of growth for
Crimson Education in local markets. The local players have their own expertise while
Crimson Education can bring global processes and execution expertise on other
markets.
The increasing adoption of online services by customers will also enable
Crimson Education to provide new offerings to the customers in the Business Services
industry.
Besides that, Crimson also faces some threats.
The growth in trend of overseas education consultancy services threatens
Crimson Education. Crimson Education has many competitors in ídustry that put them
in competitive pressure. Because of the customer base, they also can not make a quick
change in market segment and prices for services if the economy has fluctuations.
The analysis of external environment, core product and customer shows that
the competitive strategy of Crimson Education is: Differentiation focus strategy.
The definition of differentiation focus strategy is: Focused differentiation
strategy is an approach that requires targeting a small group of consumers with unique
offers. The business that selects this tactic concentrates on the particular market niche.
Companies choose a segment or a group of segments on the market and adapt the
strategy to serve their needs while excluding others. The selected segment must
include buyers with specific demands. This strategy typically doesn't prioritize the
price of a company's offerings, as it attempts to highlight how a company's offerings
are unique compared to those of its competitors.
As mentioned below, Crimson Education aims to offer only special and high-
end consulting services in the Vietnamese market, allowing students to work directly
with Former Admissions Officers (FAOs). So, with the market segment, Crimson
Education just focuses on the middle-class with the people who can pay for a high
annual budget. Besides, scholarship hunters are not the priority of Crimson, so
students need to make sure that their finances can pay for their tuition.
Additionally, different from the other counseling center, Crimson Education
empowers students to build a competitive portfolio and optimize their chances of
admission to top U.S. universities. Therefore, that makes Crimson special than others
as they aim to specific colleges rather than choosing universities with no ranking for
their students.
 V. Method of grow:
The method of growth can vary:
• Companies can grow organically, building up their own products and
developing their own market.
• They may choose to acquire these ready-made by buying other companies.
Acquisitions are risky because of the incompatibility of different companies.
• Many firms grow by other means, such as joint ventures, franchising and
alliances.
To achieve the stated goals: “Double the monthly booking rate for study
abroad consultation”, Crimson Education needs to set a plan of method to grow
based on previous analysis about environment and market segment.

VI. Value Added Taxes (VAT):

Value Added Tax, or VAT, is a broadly based consumption tax assessed on the value
of goods and services arising through producing, distributing and consuming. It covers
the majority of goods and services that are purchased and sold for use in Vietnam.
Whether or not they have resident establishments in Vietnam, all businesses and
individuals that conduct business and generate revenue in Vietnam relating to goods
or services subject to VAT are required to pay VAT. VAT is typically not applied to
services or goods that are offered to customers overseas and are intended for export.
VAT is an indirect tax on domestic consumption applied nationwide rather than at
different levels, such as state, provincial, or local taxes. It is a multi-stage tax that is
collected at every stage of the production and distribution chain and passed on to the
final customer.
VAT is imposed on the supply of goods and services at three different rates: zero
percent, five percent, and 10 percent (the standard rate). Further, no subject VAT and
no subject to declare VAT is applied to export processing enterprises (EPEs) and
special enterprises. On July 1 2023, The Value Added Tax (VAT), typically set at 10
percent, was initially reduced to 8 percent as part of the government's economic
support measures. This reduction has been extended until June 2024.
 Because of working in Vietnam, all of the businesses must follow Vietnam
Accounting Standards (VAS). As taxes and other payments to governing authorities
are among the most important cost considerations, businesses need to gain knowledge
about Vietnam regulations to have a clever plan for cost management.
The main services Crimson Education provides is counseling students about
universities and careers, so their main revenue comes from consulting service costs.
The VAT applied to these services is specified in “Law on Value-Added Tax” (2008),
“Guidance on Implementation of the law on Value-Added Tax and the government’s
decree No.209/2013/ND-CP dated December 18, 2023 Providing Guidance on some
articles of the law on Value-Added Tax” (2013).
According to the “Guidance on Implementation of the Law on Value-Added
Tax”, Article 9:
In Section b, Clause 1, Article 9, the tax rate is 0%
“Article 9. Tax rate 0%
1. Tax rate of 0%: applied to exported goods and services; Construction and
installation activities abroad and in non-tariff zones; international transport; Goods
and services are not subject to VAT when exported, except for cases where the 0% tax
rate guided in Clause 3 of this Article does not apply.
...b) Export services include services provided directly to organizations and
individuals abroad and consumed outside Vietnam; Direct supply to organizations and
individuals in non-tariff zones and consumption in non-tariff zones.
Overseas individuals are foreigners who do not reside in Vietnam, Vietnamese
people residing abroad and outside Vietnam during the time of providing services:
Organizations and individuals in the non-tariff zone are organizations or individuals
with business registration and other cases as prescribed by the Prime Minister.
In case of providing services where the provision takes place both in Vietnam
and outside Vietnam but the service contract is signed between two taxpayers in
Vietnam or with permanent establishments in Vietnam The 0% tax rate only applies to
the value of services performed outside of Vietnam, except in the case of providing
insurance services for imported goods, where the 0% tax rate applies to the entire
contract value. In case the contract does not separately specify the value of services
performed in Vietnam, the taxable price is determined according to the ratio (%) of
costs incurred in Vietnam to the total cost.
Business establishments providing services that are taxpayers in Vietnam must
have documents proving services performed outside Vietnam."
In Section b, Clause 2, Article 9, conditions for applying the tax rate of 0% for
exported services are specified
"2. Conditions for applying 0% tax rate:
...b) For exported services:
- Having a service supply contract with an organization or individual abroad or
in a non-tariff zone:
- Have proof of payment for export services via bank and other documents as
prescribed by law;... "
Article 11 stipulates the tax rate of 10%:
''Article 11. Tax rate 10%:

10% tax shall be levied on the goods and services that are not mentioned in Article 4,
Article 9 and Article 10 of this Circular.

The rates of VAT mentioned in Article 10 and Article 11 shall be uniformly applied to
each type of goods and services, whether they are imported, manufactured, processed,
or traded..”

Based on the regulations below, Crimson Education provides consulting

services and introduces Vietnamese students to study abroad on their own, including
supporting foreign schools in receiving student registration documents and
transferring documents. All of these actions are determined to be consumer services in
Vietnam, not determined to be exported services, so they are subject to the 10% VAT
rate.
In addition, Crimson not only received the study abroad consulting fee from
students, they also received a study abroad referral fee from foreign schools. Followed
by the Guidance, referral fee from foreign universities also need to pay 10% VAT
rate.
VII. Cost management: