Vinamilk Five forces model for Vietnams dairy industry 1 Competitors Vinamilk is currently facing relatively high competition from domestic and foreign brands such as TH True Milk, Nestle, Mead Johnson, Abbott For liquid milk products, Vinamilk is facing stiff competition with big milk brands such as Dutch Lady, Moc Chau, TH True Milk, etc In recent years, TH True Milk has emerged remarkably The surprise makes all the brands that have existed for a long time in the industry to be wary Vinamilk.
Vinamilk: Five forces model for Vietnam's dairy industry Competitors Vinamilk is currently facing relatively high competition from domestic and foreign brands such as TH True Milk, Nestle, Mead Johnson, Abbott For liquid milk products, Vinamilk is facing stiff competition with big milk brands such as Dutch Lady, Moc Chau, TH True Milk, etc In recent years, TH True Milk has emerged remarkably The surprise makes all the brands that have existed for a long time in the industry to be wary Vinamilk also has coffee, sugar, and cheese products, but it is unsuccessful because it is difficult to compete with big brands in the industry and does not share the same identity with other products as well as the company's brand Risk of substitution It can be said that dairy products are subject to little threat from substitute products due to their popularity and essential nutritional factors Products that can be substituted for liquid milk can be milk from cereal grains, soy milk, or soft drinks mixed with milk, Pressure from customers Customers, including wholesalers, retailers, supermarkets, and end customers can put pressure on a business, especially an end customer On the market today, there are many different brands of milk with different designs and flavors The price factor is no longer so important to consumers Customers will ultimately care more about the product's brand, difference, and outstanding effect than price Businesses at this time tend to build images for products through quality, brand, public relations followed by price Since this is an essential commodity, widely used by children, pregnant women, and the elderly, when input materials increase, businesses can increase prices without affecting sales However, retailers, hospitals, and pharmacies can have a big impact on businesses because they can easily navigate customers If the policy of commissions and discounts is not satisfactory, they can direct customers to other products to increase their income Supplier's bargaining power Building long-term and sustainable development goals for major domestic and foreign suppliers are Vinamilk's main goal to ensure a stable supply of raw materials not only in high quality but also at low prices both are very competitive In addition, dairy farms are very important strategic partners of Vinamilk in providing consumers with leading premium products Milk purchased from farms must always meet the quality standards signed between Vinamilk and domestic dairy farms → Because most of Vinamilk's production materials are imported, Vinamilk is highly dependent and under great pressure from suppliers In recent years, the high price of raw materials has also increased the production costs of Vinamilk List of milk suppliers of Vinamilk: Fonterra (SEA) Pte Ltd Hoogwegt International BV Perstima Binh Duong Tetra Pak Indochina Barriers to entry into the industry Although the cost of entering the industry is not high, it must be large enough to invest in stages such as advertising, research, and development especially liquid milk and yogurt products Product characterization and distribution channels are also quite a big barrier because most dairy companies already own a certain market share and keep their positions Distribution channels are also fully utilized by existing dairy businesses, specifically Vinamilk Therefore, competitors who want to enter the dairy market need to be strong enough to attract and convince customers Therefore, the pressure caused by competitors is not significant, but mainly competition within the industry There are many other factors that help Vinamilk create a competitive advantage and stand firm in the market such as the bargaining power of suppliers, competition among industry rivals All these factors have an effect promote and increase pressure in Vinamilk's competitive strategy on competitors Therefore, this brand has been and will grow stronger in the dairy market in general and Vietnamese milk in particular ... years, the high price of raw materials has also increased the production costs of Vinamilk List of milk suppliers of Vinamilk: Fonterra (SEA) Pte Ltd Hoogwegt International BV Perstima Binh Duong...→ Because most of Vinamilk' s production materials are imported, Vinamilk is highly dependent and under great pressure from suppliers In recent years, the high price of raw materials has... industry There are many other factors that help Vinamilk create a competitive advantage and stand firm in the market such as the bargaining power of suppliers, competition among industry rivals