SWOT ANALYSIS

WHAT STRENGTH IS?

Strength: A resources or capability controlled by or available to a firm that gives it an advantage relative to its competitors in meeting the needs of the customers it serves

VINAMILKs STRENGTH
1. Strong distribution presence which spreads nationwide: In Vietnam: 250 distributors

and over 200,000 outlets in 64 provinces

Exports products to over 16 countries worldwide.

2. Diverse product range and a large export division: Fresh milk, condensed milk, nutritional products (Dielac)

V-Juice Fresh Fruit, Tea

For kids, adults and elderly

VINAMILKs STRENGTH
3. A familiar trademark to domestics clients.
Established since 1976, Vinamilk has grown strongly and become

the leading business of the industry of milk processing

4. International standard manufacturing equipment and

technology:
Technology from European

Uses the eject-desiccation technology by Niro Denmmark

VINAMILKs STRENGTH
5. Effectiveness Marketing & Sales force: Good integrated Marketing, smart positioning & TVC Experienced sales team of 1,900 salespeople nationwide

WEAKNESS
W1: Still limit in powder milk segment (30%) while condensed milk & yoghurt dominant market segment with 90% share. W2: 60% raw materials still import outside country. W3: Not yet have premium fresh milk for high-class segment W4: decline in growth of export business (10% before 30-40% growth) W5: Limit advertising budget (maximum 10% of total expenses) ang consider b v threat v y l quy nh buc phi lm ch bn thn cng ty mun chi nhiu cho qung co)

Opportunities
WHAT IS OPPORTUNITIES? Opportunities illustrate moves a company could make to enhance its position. In a marketing SWOT, that could include listing extensive cash resources and financing as a chance for a company to quickly grow market share by spending more money on advertising and promotion.

IN VINAMILK SWOT: There are 4 opportunities O1-O2-O3-O4

O1: Rapid urbanization

-In Vietnam, Rapid urbanization more than 3%, along improving living standard and growing health awareness will also be the impetus for dairy demands.

O2: The Industry leader position

-Vinamilk easy to understand consumer tastes compared to other dairy companies.

O3: Large diary market

-Young population and high birth rates created large dairy market. -Vietnam is the 13th populated country in the world with an average growth rate of 1.1% (2006-2010). -Vietnam is also a very young roughly 54% (2010) of total population under 30 year-old. Their maturations will be the fueling force behind dairy consumption. This demographic group is generally more receptive to Western cultures, and hence they are more inclined to consume dairy products.

O4: Macro conditions

-The government's preferential policies for the dairy industry -Vietnam's accession to WTO will enable the company to expand and market experience. Vietnam's accession to WTO will enable the company to expand and market experience. -According to the annual report of Vinamilk, export department was noteworthy for its achievement of more than US$140 million or a 67% growth of export value in 2011.

ST (STRENGTH & THREAT)

Backward Integration:

- Assure the material clean and safe in feeding,

producing, preserving and delivering - Outputs of farmers must be solved thoroughly

ST (STRENGTH & THREAT)

Price:

- Stabilize the price

- Use domestic material in stead of importing

WT (WEAKNESS & THREAT)