The concept and role of strategy
A business strategy defines the long-term direction and scope of an organization, enabling it to gain a competitive advantage by effectively utilizing its resources in a challenging environment It addresses key questions such as the duration of business activities, target markets, the scope of operations, competitive differentiation, necessary resources for achieving an edge, and the impact of external environmental factors on competitiveness.
A business strategy outlines the long-term goals and direction of a company, typically spanning 5 to 10 years It encompasses a comprehensive understanding of all business activities to ensure the sustainable development and growth of the enterprise.
A successful business strategy not only defines long-term goals but also requires the integration of strategic objectives with specific situational targets This approach combines both strategy and tactics, balancing short-term actions with long-term vision By doing so, businesses can enhance operational efficiency and mitigate the risks associated with rigid strategic planning.
All critical decisions in the stages of building, implementing, testing, assessing, and adjusting strategies should be led by top business leaders This approach guarantees the precision of long-term decisions while maintaining the confidentiality of sensitive information.
A successful business strategy is grounded in the concept of comparative advantage To effectively formulate this strategy, enterprises must accurately evaluate their current production and business status, identifying their strengths and weaknesses Additionally, it is crucial to continuously review internal factors throughout the strategy implementation process.
Business strategy first and foremost, is built for business, specialized business area and the traditional strengths of the enterprise This puts companies in the situation to build, to choose.
A well-defined business strategy is essential for a company's growth and sustainability, serving as a roadmap to articulate long-term goals It provides clarity on the specific objectives the company aims to achieve, guiding employees on their roles and responsibilities By outlining strategic documents, the business ensures that all members understand the company's direction and what is required to meet these objectives effectively This alignment fosters a focused approach, enabling the company to achieve its goals efficiently.
The strategy ensures consistency and direction in the company's operations by addressing the challenges posed by departmental specialization While specialization enhances job performance, it often leads to departments focusing solely on their own improvements, neglecting the overall company objectives This disconnection can create obstacles that negatively impact the company's goals By implementing a comprehensive and systematic approach to problem-solving, the strategy fosters synergy across all departments and aligns the efforts of every member towards a unified company objective.
A business strategy outlines the vision and goals necessary for the growth and sustainability of a company It defines the purpose of the enterprise and clarifies its roles and responsibilities, ultimately addressing the fundamental question of why the business exists.
In which area do businesses exist? And what is the orientation of the enterprise?
The basic objectives are: revenue, profit, budget, the average income of workers etc.
The proposed strategy should align with the enterprise's needs, considering both external opportunities and internal challenges, while also taking into account the business's available potential and resources.
Strategic solutions address key questions for enterprises, including how to achieve organizational objectives, determine the optimal structure of the apparatus, secure budget for implementation, and effectively allocate and manage resources.
Strategy tools are essential for addressing the question of how to achieve an enterprise's goals A comprehensive business strategy encompasses three key components: ideology, objectives, and solutions, along with the necessary tools Additionally, it must fulfill specific requirements to be effective.
To enhance business power and secure a competitive edge, enterprises must leverage their comparative advantages while developing strategies It is crucial to establish a safety zone, define the business scope, and assess acceptable risk levels Conducting thorough research and forecasting future business environments is essential, as more accurate predictions lead to greater safety for the enterprise This process necessitates access to substantial information and specialized knowledge.
- Clearly define the objectives and the basic conditions to achieve the objective.
In an ever-changing environment, it is essential to develop reserving and alternating strategies These strategies are crucial because they prepare organizations for future uncertainties, acknowledging that future realities may diverge from initial predictions.
Combining opportunity with maturity is essential for effective business strategy A well-crafted strategy loses its value if implemented after the ideal moment has passed Timing is crucial; without seizing the right opportunities, even the best plans can become irrelevant.
The mission of a business significantly influences its strategic objectives, necessitating that business strategies be crafted and executed in alignment with the company's policies Ultimately, these strategies should prioritize the achievement of the business's overarching goals.
The technical analysis strategy
Model study of factors affecting the company, including the political environment and legal, economic, environmental, social cuture and technology environment.
The political and legal environment increasingly impacts company operations, as government regulations can monitor or restrict business activities Through its economic, financial, and monetary policies, the government plays a crucial role in shaping the macro economy For companies, government actions are vital for control, encouragement, support, regulation, prohibition, and restriction.
Economic factors play a crucial role in influencing enterprises, encompassing GDP trends, growth rates, interest rates and their fluctuations, international payment dynamics, and exchange rate movements.
Generate, Evaluate and Select Strategies
Implement Strategies – Finance, Accounting, R&D and MIS issues
Evaluation inflation, tax rates and tax system, the fluctuation in the stock market, business cycles and economic times Culture and society is the third in the PEST model.
The ever-evolving technology environment presents both opportunities and threats for businesses, significantly impacting various societal aspects through technological advancements This includes the processes involved in creating and disseminating new knowledge Suppliers pose potential threats to companies through pricing and payment methods, with their influence varying based on factors such as supplier concentration, the significance of their products, product differentiation, input cost impacts, the feasibility of business changes, the availability of alternative suppliers, and the overall cost-benefit balance of supplier relationships.
Customers are the driving force behind a company's success, making their beliefs and trust the most valuable assets for any business A company can cultivate this trust by effectively meeting the needs and desires of its customers, often surpassing the competition in doing so.
(Source: Strategic management concept and case, twelfth edition, Fred R David)
2.2 Analysis the five competitive forces of M Porter
Porter's Five Forces model, introduced in the Harvard Business Review in 1979, serves as a vital framework for understanding the key factors that drive profitability in business Widely recognized as an effective tool, this model not only identifies the sources of profit but also provides strategic insights for enhancing and sustaining competitive advantage in the marketplace.
- The level of competition within the sector
Intense competition within the industry often leads to shrinking profit margins, where prices barely cover production costs However, competition is rarely perfect, and businesses do not merely accept market prices; instead, they must develop and leverage distinct advantages over their rivals The varying degrees of competition across different business sectors highlight the importance for analysts and strategists to recognize these differences and adapt their strategies accordingly.
To pursue the advantages superior to competitors, an enterprise may choose one or several competitive methods as follows:
Change in prices: The business may increase or decrease the price to achieve a temporary competitive advantage.
Increase product differentiation: Enterprise often compete by improving the product's features and application of new advances in manufacturing processes or for the product itself.
To enhance vertical integration, businesses should creatively leverage distribution channels by intervening in existing systems or exploring new ones This includes utilizing distribution networks of related products or tapping into channels that cater to similar customer bases, thereby expanding market reach and optimizing efficiency.
Leveraging supplier relationships is crucial for businesses aiming to enhance product quality and reduce input costs By utilizing their negotiating power and established connections within delivery systems, companies can effectively implement new requirements that lead to significant improvements in their offerings.
The high concentration of enterprises in the sector intensifies competition, as numerous businesses vie for the same customer base and resources With companies holding comparable market shares, the race to capture a larger market share becomes crucial for establishing leadership in the industry.
The slow growth rate of the market has intensified competition among businesses striving to capture a larger market share In contrast, a high growth market offers numerous opportunities for increased sales, prompting companies to enhance production capacity and expand their distribution channels.
High fixed costs significantly influence competitive intensity, as they require businesses to maximize production capacity to minimize unit costs When fixed costs dominate the cost structure, achieving efficiency becomes essential for companies to remain competitive in the market.
High maintenance costs and the challenges of preserving products compel manufacturers to sell their goods quickly This urgency not only drives sales but also intensifies competition in the market, as companies strive to move their inventory efficiently.
Conversion costs refer to the expenses associated with converting customers from one product to another When these costs are low, market competition intensifies, as customers can easily switch between products Consequently, businesses must continuously strive to attract new customers while also nurturing and retaining their existing clientele.
Low product differentiation typically results in heightened competition, as it influences customer choices and purchasing decisions Conversely, when brand identification is strong, competition tends to diminish.
Market opportunities: Market opportunities will increase when a business is losing market position or has the potential for new opportunities Opportunities increases market competition in the industry.
High market barriers significantly impact businesses, particularly due to the substantial costs incurred when they are not actively selling their products or engaging in sector-related activities.
Diversity of competition: The diversity of the competitors with the differences in culture, history and views makes the notion of unstable business.
Overview of VIETTRUST JSC
Viettrust Technological Investment & Development Joint Stock Company (VIETTRUST JSC) was established on July 2, 2003, under Business Licence No 21.03.00.00.38 by the Bac Ninh Department of Planning & Investment Initially focused on manufacturing various metal products, particularly the three-layer thermal and sound insulation metal roof branded TONMAT, VIETTRUST JSC started with an authorized capital of 15.5 billion Vietnam dongs and a product area of 4,000 square meters The company's growth is attributed to the dedicated efforts of its staff, leading to several revisions of its business registration On May 5, 2009, VIETTRUST JSC merged into Viettrust Technological Investment & Development Joint Stock Company, increasing its authorized capital to 32.5 billion Vietnam dongs and expanding its production area to over 8,000 square meters.
Manufacturing all types of metal products for construction and architecture. Processiong, coating metal and other common mechanical processing Purchasing building materials Building civil & industry construction Leasing vehicles & assets.
Services to hire depot & machine shed.
Depot management with dedicated and manual softwares.
Assembling, packaging, maintain, transport, commodity delivery & other services relating to goods.
Internal & external multimodel transportation for common commodity and
Road transport, rail transport, river transport, sea transport and air transport. Representative for export – import, international forwarding firm, custom duty declaration.
TONMAT Roof of three layers – sound proof and heat resistant
TONMAT Panel three layers – sound proof and heat resistant
Figure 4: Organizational chart of VIETTRUST JSC.
Table 4: Market share of VIETTRUST JSC through 2008-2010
Percentage of market share and growing rate of market share
(Source: Department of market development of VIETTRUST JSC)
During international integration, the law creates an equal playground to both Vietnam’s enterprises and foreign invested capital companies, VIETTRUST JSC set up developing strategery and orientation as follows:
VIETTRUST JSC is enhancing its product strategy by diversifying its three-layer roofing products and developing innovative solutions using polyurethane for thermal and sound insulation This includes the introduction of a new facing brick designed specifically for thermal and sound insulation, aimed at effectively insulating walls in civil buildings, business centers, and luxury apartments against heat.
Strategy for expanding business line: Besides developing heat & sound insulation products is the key products, VIETTRUST JSC has approved the plan to expand business line as follows:
VIETTRUST JSC is collaborating with international partners to establish factories for the production of zinc-aluminium plated arched roofs and color plated roofs, aiming for an annual capacity of 60,000 tons This initiative is designed to satisfy the growing demand for color plated roofs in northern regions.
Cooperating with foreign partners and investing in building factories to manufacture polyurethane for manufactories supplying heat & sound insulated materials.
Investing & developing the field of real este in industrial zones to boost services for warehousing, machine shed, etc.
VIETTRUST JSC recognizes the necessity of aligning the brand vision of TONMAT with the company's long-term objectives and activities This brand vision encompasses the advantages of the trademark, the underlying business philosophy and values, future aspirations, financial goals, profitability, and the brand's representation for both customers and the business TONMAT is committed to evolving in tandem with societal development.
VIETTRUST JSC aims to enhance its brand vision by focusing on market expansion, production growth, and overall enterprise development centered around the TONMAT brand and its products This strategy is informed by comprehensive market research and an analysis of current and potential consumer behaviors The company emphasizes that these objectives must be integrated at all management levels to foster cohesive leadership, motivate employees, and strategically allocate resources, ultimately guiding the development of a robust brand and a clear vision for future growth.
The mission of trade mark TONMAT:
VIETTRUST JSC is dedicated to enhancing the quality of life and work environments through advanced technology and high-quality products Our mission focuses on delivering exceptional customer service while leading the production, trading, and service sectors in heat and sound insulation solutions We aim to increase shareholder benefits and contribute positively to the community, fostering a rich and fulfilling life for our staff and supporting national development.
The mission of the TONMAT brand is to empower Vietnamese consumers by providing access to high-tech products that enhance quality of life, previously available only in developed countries.
Achieving long-term big utility of the community, reflecting the desire to bring pride to the country about Vietnamese trade mark is the noble mission of TONMAT.
VIETRUST JSC has redefined the brand vision for TONMAT to align with the company's long-term goals and values This new vision encapsulates the brand's benefits, philosophy, and future direction, emphasizing financial objectives and profitability It reflects what the brand represents to its target customers and the broader business community, highlighting TONMAT's commitment to societal development.
Analysis macroeconomic of VIETTRUST JSC
2.2.1 PEST analysis of VIETTRUST JSC. a.
Vietnam boasts a stable political environment and society, ranking first in the region according to the Political and Economic Risks Consultancy (PERC) in Hong Kong post-9/11, outperforming countries like Indonesia, Malaysia, the Philippines, and China The nation experiences fewer issues with religious and ethnic conflicts, and following significant policy reforms, Vietnam has achieved consistent GDP growth With a focus on maintaining macroeconomic stability, Vietnam is recognized as a safe investment destination.
Recently, the Ministry of Construction reported the results of reviewing administrative procedures within the Ministry As received result, the rate of simplifying administrative procedures raises up to 95.8%.
The government is dedicated to reforming administrative procedures and establishing a favorable legal framework for businesses The completion of Project 30, which reviews administrative reforms in the Ministry of Construction, marks a significant advancement that will benefit companies in the construction and real estate sectors Additionally, the incentive registration aimed at promoting domestic investment has enabled VIETTRUST JSC to significantly reduce its income tax burden, resulting in a complete tax exemption for three years, followed by a reduced tax rate of 7.5% for the subsequent seven years.
VIETTRUST JSC has secured a priority lease for land in Bac Ninh Province, benefiting from a 10-year tax exemption and a subsequent reduction of 50% on current tax rates.
Over the past two decades, Vietnam has emerged as one of Asia's fastest-growing economies, achieving an impressive average annual GDP growth rate of 7.1% from 1990 to 2009 This sustained economic expansion, coupled with targeted policies aimed at alleviating poverty, has led to a significant reduction in poverty levels The poverty rate, as indicated by household surveys, plummeted from 58.1% in 1993 to 16.0% in 2006, while the percentage of individuals living below the official poverty line decreased from 20.2% in 2005 to 12.3%.
2009 The current Socio-Economic Development Plan of Viet Nam (SEDP) 2006–
2010 sets Viet Nam’s goal of becoming a middleincome country by 2010 and an industrialized nation by 2020.
Table 5: Vietnamese GDP rate in recent years
Year GDP - real growth rate 2008
Source: CIA World Fact book - Unless otherwise noted, information in this page is accurate as of April, 2011)
In 2009, inflationary pressures and a decline in the value of the dong intensified, largely due to rapid credit expansion In response, the State Bank of Vietnam devalued its reference exchange rate by 5.4% in November 2009 and an additional 3.3% in February 2010, leading to a year-on-year inflation increase from 2.0% in August.
(source: ADB : http://www.adb.org/Documents/Fact_Sheets/VIE.pdf)
The State Bank's decision to raise the interbank USD/VND exchange rate by 9.3% is a necessary response to current economic conditions, despite its unexpected magnitude This adjustment enables the State Bank to manage exchange rates more effectively according to supply and demand, enhances market liquidity, helps control the trade deficit, and allows for a more proactive and flexible monetary policy implementation.
Controlling inflation poses a significant challenge for Vietnam, particularly due to the high percentage of raw materials in its export-import items and their volatility in the global economy To safeguard the economic progress made in recent years, the Vietnamese government has prioritized inflation control as a key strategic objective from 2011 to 2015.
Prices of construction materials are abnormally up and down as inflation index, which affects the appraisal and signing the construction contract.
Loan interest rates in the region are significantly high, with Thailand at 8.5%, Malaysia at 6.3%, and China at 8% Furthermore, businesses that do not fall under priority categories are facing even steeper loan interest rates, ranging from 15% to 16% annually.
VIETTRUST JSC is significantly affected by fluctuations in exchange rates, as a large portion of its production materials are imported Notably, 40% of the polyurethane used is sourced from abroad While some plates are procured domestically, the essential components for production are imported, resulting in higher plate prices.
In early 2011, gasoline prices surged by up to 30%, and electricity costs rose by 18%, significantly impacting production as it relies heavily on these energy sources Additionally, despite having a plentiful labor force, there is a notable lack of skills and experience among workers, making it challenging for small and medium enterprises to compete for talent, leading to a shortage of qualified high-ranking professionals.
According to the General Statistics Office, Vietnam's population age composition is experiencing a positive transformation Over the past decade, the percentage of individuals under 15 years old has decreased from 33.1% in 1999 to 24.5% Conversely, the proportion of the population aged 15 to 64, which represents the primary labor force, has increased significantly from 61.1% to 69.1%.
The current phase, referred to as the "golden population composition," signifies a time when our country boasts a robust labor force This advantageous period began in 2003 and is projected to continue for the next 30 to 50 years By effectively harnessing our labor resources, we can leverage this strength to drive our industrialization and modernization efforts.
Vietnam's human resource quality is currently low, characterized by two main categories: general manpower and high-quality human resources General manpower constitutes the majority, while high-quality human resources represent a significantly smaller portion Although Vietnam benefits from a competitive advantage due to its cheap and abundant labor force, this advantage is expected to diminish in the coming years as the economy grows and worker wages increase.
The development of human resources in Vietnam, focusing on enhancing labor quality through education and training, is a key objective in the country's economic development strategy for 2010 to 2020 However, there is a lack of a specific strategy to harness the potential of these human resources When compared to other countries in the region, the training quality of Vietnamese universities remains significantly behind As Vietnam integrates into the international market, its human resources, characterized by quantity but lacking in quality, face the challenge of competing against higher-quality labor from other regional countries.
The recent economic crisis has led to significant instability in the labor market, characterized by rising inflation and insufficient wages for living This has resulted in an increase in strikes and a shortage of high-quality labor, particularly affecting small and medium-sized enterprises The competition for labor resources has intensified, contributing to a brain drain phenomenon Recruitment has become challenging, and employee retention is even more difficult In addition to salary, factors such as social insurance, health insurance, unemployment insurance, and a positive working environment and company culture are now crucial competitive advantages in the labor market.
Analysis of internal environment of VIETTRUST JSC
Analyzing a company's internal environment is essential for identifying its strengths and weaknesses in relation to competitors This analysis enables management to assess their capacity to leverage advantages for competitive positioning over time Key internal factors to consider include human resources, financial performance, marketing strategies, and the effectiveness of the management team.
At this time, VIETTRUST JSC is having 201 staff, with the qualifications as follows:
Table 9: Employes qualification of VIETTRUST JSC
The employees at the various levels of management are trained in various skills such as:
- Orientation training for new employees
- Improve skills training and technical workers
- Technical training and education of occupational safety, occupational health, fire prevention
- Improve training for staff working in technical expertise
- Training management capabilities, leadership and human resources adjacent
VIETRUST JSC offers comprehensive training programs for officials and staff, focusing on the awareness and application of the ISO 9001:2008 quality management system These programs include internal assessment training certified by the National Center for Conformity Certification, as well as participation in technical seminars related to the building materials industry and advancements in roofing sheet production technology This initiative aims to enhance the application of new technologies in the company's production processes.
Table 10: Strengths and weaknesses of human resources
- Young staff with the average age under
- Regularly organize training to improve skills and qualifications of staff.
- Marketing staff maintain good relations with dealers and distributors.
- Having a system to control and evaluate employees every month.
- Lack of experience in teamwork.
- Leadership management at department level has not developed their ability Leadership skills are still weak.
- The coordination between departments was not good.
VIETTRUST JSC is a company with 100% private capital, the main product is TONMAT 3 layers roof sheet.
At the moment, the VIETTRUST JSC has its own equity of 86 billionVietnamese dong (equivalent to 4 million U.S dollars)
Table 11: Summary of and business results of enterprises
The average growth rate in three years 2007-2009 (%)
- The number of seasonal workers
The average income of workers and employees
According to a report on business activities, VIETTRUST JSC has consistently achieved over 50% annual growth in its business results over the past three years, with a remarkable 100% increase in 2010 In the same year, the company effectively managed its equity and reduced debt without the need for additional capital investment for production This demonstrates the leadership of VIETTRUST JSC's flexibility in capital management and financial strategies.
In financial aspect, the VIETTRUST JSC has following strengths and weaknesses:In financial aspect, the VIETTRUST JSC has following strengths and weaknesses:
Table 12: Strengths and weaknesses of financial sources
- Not using the maximum loan.
- The expansion of investment in production slow.
The production process utilizes semi-automatic lines, with machinery controlled via touch screen PLCs A key component is the polyurethane injection press line, which significantly enhances product quality Critical parameters such as pressure, chemical mixing ratios, injection flow, chemical and ambient temperatures, and conveyor temperatures are digitally monitored and controlled, ensuring optimal chemical reactions.
All managers are provided with personal computers connected to the Internet, enabling efficient communication and data access Specialized software is installed in departments for effective operational management and data control Additionally, companies utilize websites and internal networks to facilitate information exchange and streamline reporting processes.
The company is currently installing global positioning equipment on all trucks and marketing officers operating outside of company facilities This initiative aims to enhance communication, tracking, and control of all departmental activities.
The company continues to deploy the entire server system administrator in the company to ensure information security and data in order to serve the jobs
Table 13: Strengths and weaknesses of technical and material facilities
- Technology has been invested and compliant to the regulated standards.
- Enough machines and equipment for works
- Labor safety is managed rather well
- Material facilities are sufficient for working
- Lack of highly qualified workers and CEO.
- Staff is still lack of dynamic and creativeness.
Core Competitiveness
Analysis portfolio of VIETTRUST JSC.:
TONMAT brands accounted for 90% of the total investment of VIETTRUST JSC With the revenue estimated to reach in the last three years as follows:
Table 14: Sales of TONMAT in period 2008-2010
101 billions VND 124 billions VND 280 billions VND.
TONMAT Logistics represents 10% of the total investment capital from VIETTRUST JSC., aiming to secure affordable land leases for warehouses in Bac Ninh Similar to TONMAT LAW, TONMAT Logistics primarily serves VIETTRUST JSC Additionally, domestic shipping companies are safeguarded against foreign investment, as foreign entities are restricted from owning more than 49% of shares in these companies Over the past three years, the revenue has shown significant growth.
Table 15: Sales of TONMAT Logistics in period 2008-2010
10 billions VND 12 billions VND 35 billions VND.
The BCG matrix
From core competitiveness we goto next step is analysis financial portfolio of VIETTRUST JSC in 2008-2010 through BCG matrix:
Table 16: VIETTRUST JSC portfolio with two divisions
Figure 6: The BCG Matrix of VIETTRUST JSC with two division through 3 year period 2008-2010
INDUSTRY SALES GROWTH RATE (percentage)
The BCG matrix positions the TONMAT division in the STARS category, indicating its strong growth potential From 2008 to 2010, the division held a dominant market share, and despite a recent decline in market share, its revenue has significantly increased due to overall market growth However, the division faces increasing competition in recent years.
Logistics division is located in the Question Marks and began to develop,indicating a need for greater investment to help LOGISTIC division to move into the STARS.
Oriented development
Market growth is promising, with Taiwan seeing 80% adoption of three-layer soundproof and heat-resistant roofing, while Vietnam currently lags behind at just 8%.
Objective of VIETTRUST JSC
VIETTRUST JSC goal of becoming a private corporation in 2020 While ensuring maximum benefits to employees, shareholders and consumers.
Generate strategy
3.3.1 EFE Matrix of VIETTRUST JSC.
According to the analysis of external environment of VIETTRUST JSC. above, we have EFE matrix as follows:
No Major external factors Importance Weight Total
5 Demographic changes in family structure 0.1 3 0.3
With the total mark of 3.3, VIETTRUST JSC is having rather good reactions to opportunities and challenges from external environment
3.3.2 IFE Matrix of VIETTRUST JSC.
VIETTRUST JSC strengths and weaknesses are put into the following matrix of internal factors evaluation.
Major internal factors Importance Weight Total
2 Increase product life and reduce the rate of errors
3 Increase the productivity of each worker 0.1 3 0.3
4 Restructuring mechanism, helping to make appropriate decisions
5 After-sales services better than competitors in the industry
6 Budget for R & D investment increased to
80 billion in the year help improve the image, design and quality of publications
7 Ratio of debt / increasing capital 0.09 1 0.09
8 Putting the new factory into production to help reduce input costs by 20%
9 Reduce the number of managers and workers from 100 to 80
With the total mark of 2.71, VIETTRUST JSC has much strength in the respect of internal factors though there are still weaknesses.
3.3.1 IE Matrix of VIETTRUST JSC.
From the two tables above, we have the I.E Matrix as follows:
The matrix of internal and external factors shows that appropriate strategy forVIETTRUST JSC is focus growth (market penetration, market development,product development).
3.3.4 SWOT matrix of VIETTRUST JSC.
From the aforesaid analysis, we have the following SWOT matrix:
O1: Stable economy and politics, developing science and technology
O2: Potential market O3: There are many State preferential policies for the industry
O4: Consumer demand towards more quality products
O5 Pressures from customers, suppliers, substitution products are not high
The increasing number of competitors in the market poses a significant challenge in attracting high-quality human resources Additionally, the inflation and global economic crisis of 2009 have further complicated cost management for businesses.
S trengths ( S) SO STRATEGIES ST STRATEGIES
S1: The first trade mark in market and most popular company in the recent years
S2: Have a good image to consumers
Building more factory, expand local business =>
Introduction of new products, meet more needs of customers
S3: Have products with high quality
W eaknesses ( W) WO STRATEGIES WT STRATEGIES
W1: Workers not yet have high skills; management staff has not yet reached desired qualifications
W2: Slowly in R&DS and investment to advanced machinery and technology
W1: Workers not yet have high skills; management staff has not yet reached desired qualifications.
W1,W2,W3 + O1, O2, O3, O4: Improve the organization and training of human resources =>
Joint venture with foreign partners to implement the project
Selecting strategies for VIETTRUST
Through analysis and combining elements of the SWOT matrix, there are strategies for VIETTRUST JSC to 2020 as bellow:
VIETTRUST JSC is committed to expanding its product range through extensive research and development, focusing on innovative solutions such as 3-layer soundproof and heat-resistant roofing With a stable market and strong potential, the company plans to enhance its investment in TONMAT Logistics to improve transportation capabilities.
VIETTRUST JSC, a pioneer in the market, has earned the trust and loyalty of its customers To build on this success, the company aims to expand its operations into the northern and central provinces of Vietnam.
The demand for 3-layer soundproof and heat-resistant materials is increasing, yet the workforce lacks sufficient skills While advancements in science and technology are progressing, VIETTRUST JSC has not made significant investments in modern machinery and automation to meet environmental standards Additionally, the company's capacity for analysis and effective capital planning is limited Addressing these weaknesses and capitalizing on opportunities will require considerable time and effort.
VIETTRUST JSC is embarking on joint ventures with foreign partners to establish new factories in Central and South Vietnam These collaborations will enhance the company's management and leadership skills, driving greater success in its operations.
3.4.5 Selecting Strategy for VIETTRUST JSC.
Based on the criteria by Board of Directors has determined, based parameters evaluated elements inside, outside, model SWOT Matrix, the authors have table as follows:
Thus VIETTRUST JSC should give priority to market development strategy in period 2011-2016:
Expanding geographically: expanding network of dealers and distributors to South of Vietnam Even possible to open more factories in the neighboring countries like Laos and Cambodia
Reaching into new market segments: Create new products based on technology that VIETTRUST JSC are And that's specific factories, workers, raw material production (steel and polyurethane).
Strategy priority no.2 is enhance competitiveness strategy, in this strategy the company should revise the structure to improve its competitive position in comparison with other competitors.
Strategic solutions
To develop with the current opportunities and threats, VIETTRUST JSC. needs to use strengths to take advantage of the opportunities.
To provide training courses to improve workers’ skills and qualifications
To provide refreshment courses on management quality and operation improvement.
To build up the company a learning organization with an open working atmosphere to create a good working environment to attract and maintain talented staff
To enhance capacities of staff, from management level to workers so that they can directly import from the stage, to transportation, manufacturing, sales and after sales operation
To focus on capital sources, efficiency of capital sources spending.
To make plans for expenditures, and effective circulation of cash
To strictly manage over input costs, corporate management costs in order to push up turnover for more profits
Create marketing department to make marketing operation become more professional.
Effective marketing strategies are essential for progress, particularly for significant investments like VIETTRUST JSC's new factory construction aimed at expanding its local business footprint Recognizing and leveraging this concept is crucial for success.
To ensure sufficient conditions and sources for marketing management at all levels in the professional and modern manner
To regularly evaluate the efficiency of marketing management in order to find out strengths to develop and weaknesses to overcome
To carry out market studies in the whole country To study the population, social issues, geographical characteristics, habits, traditions, economic characteristics and development tendency of each locality
To make short-term and long-term financial and operation plans
Further investment in manufactoring machine systems.
Additional investment in computer systems, software, in order to help expanding business area.
Investment in building new factory in areas such as Southern Vietnam or neighboring countries like Laos, Cambodia.
Establish more professional working team, in order to help the CEO reduce unnecessary things.
The road map for implement strategy of VIETTRUST JSC
Table 19: The road map for implement strategy of VIETTRUST JSC.
- Continue to develop heat and sound insulation roof and panel products to maintain the largest market share in the North and Central
- Roofing and TONMAT Panel TONMAT sales objectives reach $ 10 million in 2011
- Construction of Roofing and Panel Factory 2 in Da Nang city to meet the market needs of Central and South Central
Continue to develop markets and increase market share to 65% -70%
Keep the first rank in heat and sound insulated panel and roofing market, in the Northern and Central regions.
- Invest in research and provide market products using heat and sound- insulated brick wall with "COOL BRICK" brand
- Invest in research and manufacture of chemicals and chemical blending technology to provide enterprises in Vietnam for use as heat and sound insulation material, gradually replacing imported raw materials.
EUROTON is investing in the development of state-of-the-art factories, production lines, and advanced manufacturing equipment in the northern region This initiative aims to produce high-quality zinc plated and color plated roofing products, enhancing competitiveness against imported alternatives.
LAND TONMAT aims to enhance investment in the real estate sector by forming a joint stock company, with TONMAT holding the majority share.
- Establish financial companies TONMAT with brand TONMAT FINANCE
Become a private business group multisectoral mandate based on the strength on the field of thermal and sound insulation is key to the development
As Vietnam's market rapidly expands in response to increasing international integration, investing in new industries and expanding production aligns perfectly with current market trends.
In 2020, VIETTRUST JSC's board of directors established a clear vision and mission to create a corporation, setting a challenging yet ambitious path for the future With a strong focus on development, the company has defined its goals and objectives to guide its growth and success.
TONMAT roofing is highly beneficial in tropical regions such as Vietnam, where prolonged rainfall and intense summer heat are common Utilizing the properties of polyurethane, VIETTRUST JSC is capable of researching and producing a diverse range of products To sustain its leadership in the industry, VIETTRUST JSC must continue to invest and innovate in line with Vietnam's development.
Along with the desire to become in 2020 the group now have strategic
VIETTRUST JSC personnel for 10 years they can achieve the goals set out.
Group 3 would like to thank the teachers, the ETC center, Griggs University and everyone were helps our group that we can complete this course As well as providing all the knowledge to fully contribute to society itself and grow.