Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (66)

Enhancing the competitive advantage of Cavicoec CAPSTONE PROJECT REPORT ENHANCING THE COMPETITIVE ADVANTAGE OF CAVICOEC H Enhancing the competitive advantage of Cavicoec GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT ENHANCING THE COMPETITIVE ADVANTAGE OF CAVICOEC Group No.3: Nguyen Trong Duc Nguyen Dac Huan Ha Thanh Trung Hoang Anh Minh HA NOI 2009 Enhancing the competitive advantage of Cavicoec GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINEES ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT Enhancing the competitive advantage of Cavicoec Group No.: Nguyen Trong Duc Nguyen Dac Huan Ha Thanh Trung Hoang Anh Minh HANOI, 2009 Enhancing the competitive advantage of Cavicoec TABLE OF CONTENT Enhancing the competitive advantage of Cavicoec LIST OF ABBREVIATIONS SWOT: Strengths, Weaknesses, Opportunities and Threats BCG: Boston Consulting Group SBU: Strategic Business Unit EVN: Vietnam Electricity Corporation ODA: Official Development Assistance IPP : Independent Power Plant BOT: Build-Operation-Transfer B-T: Build-Transfer VAT: Value Added Tax VINACONEX: Vietnam Construction and Import-Export Joint Stock Corporation HABUBANK: Hanoi Building Commercial Joint Stock Bank ERP: Enterprise Resource Planning EPC: Engineer – Procure – Construct IT: Information technology EPS: Earning per shares HNX: Hanoi Stock exchange IC: Internal Control Enhancing the competitive advantage of Cavicoec LIST OF TABLES Unit: VND N o Items Turnover from sales and service provision Exemption Net turnover from sales and service provision Cost of fund for sale Profit from sales and service provision Turnover from financial activities Financial costs Sales costs Administrative costs Reporting Accumulat period ed 130,625,965, 85,300,167, 315 800 130,625,965, 85,300,167, 315 800 (124,378,382 (74,944,191, ,029) 632) 6,247,583,28 10,355,976 1,044,195,41 3,138,883,4 94 (1,300,601,0 (445,547,92 49) 6) (5,026,278,7 (4,223,960,2 13) 85) 8,825,351,4 964,898,942 51 1,570,000,00 3,347,465,6 30 (1,229,339,2 (2,917,328,4 15) 36) Net profit from business activities Other income 1 Other costs Other profits 340,660,785 1,305,559,72 Total before-tax profit (151,113,243 Corporate income tax ) 1,154,446,48 Total after-tax profit Profit per stock 355 Table 2.1: Business activity results of CAVICOEV No 430,137,194 9,255,488,6 45 (1,787,565,3 86) 7,467,923,2 59 Indicators Unit Previous period (2007) Assets structure - Long-term assets/Total assets - Short-term assets/Total % % 46.94 53.06 1,677 Reportin g period (2008) 38.53 61.47 Enhancing the competitive advantage of Cavicoec assets Source of funds - Accounts payable/Total % source of funds - Equity/Source of funds % Payment capacity - Quick payment time - Current payment capacity time Profit ratio - After-tax profit ratio/Total % assets - After-tax profit ratio/Net % turnover - After-tax profit ratio/equity % Table 2.2: Basic financial indicators 2007, 2008 Ref.orde Targets Units 2010 2011 76.89 82.92 23.11 17.08 0.12 0.82 0.05 0.76 4.25 0.53 8.75 0.88 18.40 3.07 2012 r After tax revenues Bil VND 200 240 300 After tax profits Bil VND 12,5 20,0 25,0 Registered Capital Bil VND 50,0 80,0 100,0 Table 3.1: Future business activity results of CAVICOEV 2013 2014 350 25,0 100,0 420 30,0 100,0 Enhancing the competitive advantage of Cavicoec LIST OF GRAPHS GRAPH 0.1: THE CONTENT AND STRUCTURE OF THE CAPSTONE PROJECT 12 GRAPH 1.2: THE STRATEGIC PROCESS MODELS AS THE LINKAGE BETWEEN THE COMPANY AND THE ENVIRONMENT 15 GRAPH 1.3: THE FIVE COMPETITIVE FORCES AFFECTING PROFIT IN THE INDUSTRY 17 GRAPH 1.4 : FACTORS OF THE INDUSTRY STRUCTURE .19 GRAPH 1.5: THE THREE COMPETITIVE STRATEGIES 20 GRAPH 1.6: THE VALUE SYSTEM 22 GRAPH 1.7: THE OVERALL VALUE CHAIN 23 GRAPH 1.8: SWOT ANALYSIS 25 GRAPH 1.9: STRATEGY FORMULA 27 GRAPH 1.10: THE BCG MATRIX .29 GRAPH 2.11: OVERALL COMPETITIVE STRATEGIES OF CAVICOEC .40 GRAPH 2.12: THE COMPETITIVE FORCES DETERMINING INDUSTRY PROFIT .46 GRAPH 2.13: SWOT ANALYSIS IN CAVICOEC .52 GRAPH 2.14: COMPETITIVE ADVANTAGES OF CAVICOEC 53 GRAPH 2.15: COMPETITIVE ADVANTAGES OF CAVICOEC 54 GRAPH 3.16: THE BCG MATRIX( POSITION’S CAVICOEC) 58 Enhancing the competitive advantage of Cavicoec INTRODUCTION Since the early decades of the 20th century, energy sources have been considered one of the decisive factors to the economic development of the whole society Once people have yet to find substitute sources of energy, continuous wars on the rights to exploit energy sources still prevail all over the world In the energy security campaign of Vietnam, hydro-electric energy is at the top priority This industry is facing rapidly increasing challenges stemming from the shifts in government policies towards allowing powerful and potential enterprises to invest in the energy industry This policy shift aims to solve global issues such as population growth, scarcity of resources, ecological environment and natural environment Therefore, competition in the overall energy market is becoming more and fiercer Successful players in the market are those with application of modern technology and advanced management model During the early days of the reform process in the 1990s, the Vietnamese Government identified important missions for the coming decade, which are boosting the industrialization and modernization process and stabilizing the economy These missions require the government have a strategy for energy, which encourages the mobilization of national and international resources to develop different sources of energy, meeting the demand for energy of the socio-economic development as well as national and regional energy security Vietnam Electricity Corporation and Song Da Corporation are important stateowned enterprises in this process However, for a long time before 2000, the energy market is controlled by these two corporations The negative sides of this monopoly status is the cumbersome structure, ineffective business and investment activities, high price and low service quality of the industry In addition, the domination of these corporations have hindered the mobilization of investment capital from different sources in the society as well as the rapid social development “The Government has identified the overall objective for 2010 is to focus all efforts, attain higher economic growth rate compared to 2009, sustain rapid and sustainable growth in 2011 and the following years; maintain macro-economic stability; ensure social welfare; sustain political stability, social order and safety, strive to achieve the objectives and targets of the 5-year plan for 2006-2010 In this objective, the basic Enhancing the competitive advantage of Cavicoec initial targets for 2010 are: GDP growth at approximately 6.5%; consumer price index below 7%, national budget overspending at about 6,5% GDP” Vietnam is expected to attain average economic growth of 7.0% - 8.0% during 2011 - 2015 Therefore, the demand for electricity is expected to increase rapidly Meanwhile, the Government has proposed measures to mobilize other sources of energy Since the early 21st century, the Vietnamese Government has developed the necessary legal framework for successful implementation of the above-mentioned electricity development plan, which is then concretized in Decision 40/2003/QĐ –TTg dated 21 st March 2003 and Decision No 176/2004/QĐ-TTg dated th October 2004 with the aim of creating a more competitive and active electricity market Realizing encouraging signals from the Vietnamese government, a series of investors have actively engaged in investment in the industry These investors include not only state-owned corporations but also privately-owned economic corporations and individual investors Realizing the huge opportunity in investment in hydro-electric construction works, a large number of hydro-electric investment joint stock companies have been established Consequently, CAVICOEC was established to meet the demand of constructing the hydro-power plants and set the foundation for the future development The role of CAVICOEC is to ensure the quality and effectiveness of the investment, as well as to apply modern technology to support business activities of CAVICOEC and other investors in the hydro-electric field The research purpose of this capstone project is to conduct a thorough analysis on competitive advantage of CAVICOEC and then propose solutions to enhance the competitiveness of the company The capstone project will conduct the following tasks: - Study the theoretical background on competitive advantage - Investigate the current situation of competitive advantage of CAVICOEC - Propose measures to improve the competitive advantage of CAVICOEC The scope of this study is within CAVICOEC, which is established in 2005 and with the available database of CAVICOEC In addition, the authors will try their best to include in this capstone project data and information on related issues retrieved from the mass media (official documents, industry websites, journals and guidebooks) and to analyze from the perspective of the overall electricity industry to provide a more comprehensive assessment 10 Enhancing the competitive advantage of Cavicoec Factors having positive impacts are arranged in priority/ importance order as below: (1) Being a part of the value chain; (2) operating in high profit field; (3) long-term and stable business field COMPETITIVE ADVANTAGES OF CAVICOEC Close Factors relationship with Legal status shareholder Experienc e and expertise of experts Strong support from shareholder s s Long-term and stable business field High profitability field Mild competition Strong support from shareholders Graph 2.14: COMPETITIVE ADVANTAGES OF CAVICOEC 2.5.2.2 Factors having negative impacts on competitive advantage Contrary to the above factors having positive impacts on competitive advantage, when combining the weaknesses and threats, we can define a number of factors having negative impacts on competitive advantage of the company in present and in future Such factors are marked (X) in the following matrix Factors having negative impacts are arranged in priority/ importance order as below: (1) Project owners’ requirements for high quality and shorter time for consulting products; (2) unqualified management system; (3) substitutes appointed by project owners; (4) Sub-contractors and suppliers target more profit FACTORS COMPETITIVE ADVANTAGES OF CAVICOEC 53 Enhancing the competitive advantage of Cavicoec Close relationship with shareholder Legal statu s Experienc e and expertise of experts Strong support from shareholder s s Lack of qualified and experienced staffs and experts Unqualified management system Low technology Unqualified human resources management Poor corporate culture Graph 2.15: COMPETITIVE ADVANTAGES OF CAVICOEC 54 Enhancing the competitive advantage of Cavicoec CHAPTER III SOME MEASURES TO IMPROVE THE COMPETITIVE ADVANTAGE OF CAVICOEC Based on the analysis and assessment mentioned in details in Chapters I and II, this Chapter will concentrate on evaluating the competitive advantage of CAVICOEC towards the overall competitive strategy of the company, then it will analyze factors which have impacts on competitive advantages defined in Chapter II, and finally it will propose measures to improve competitive advantage of the company In the second part of this Chapter, the authors will present some opinions on the formulation of competitive strategies for CAVICOEC in order to improve competitive advantage With its initial outcomes of the 2005-2009 period and its current advantages of human resources, relationships, equipments, the company set its mission for the 2010-2014 period as follows: The company’s missions Developing Cavicoec in to a leading constructor which saves and in turn invest in the high return industry toward a sustainable development; bringing high returns for the shareholders and contributing to the common social development 2010 – 2015 Business Objectives The average returns are expected to be 20% per annum with EPS (Earning per shares) of 25% In 2010, the company expects to list in Hanoi Stock exchange (HNX) to mobilize capital for its business demands It also expects to apply ERP and Internal Control (IC) in 2010 Ref.orde Targets Units 2010 2011 2012 r After tax revenues Bil VND 200 240 300 After tax profits Bil VND 12,5 20,0 25,0 Registered Capital Bil VND 50,0 80,0 100,0 Table 3.1: Future business activity results of CAVICOEV 2013 2014 350 25,0 100,0 420 30,0 100,0 In order to realize the strategy, Cavicoec selected the strategy for the period of 2010-2014 as follows: 55 Enhancing the competitive advantage of Cavicoec  Differentiation Strategy: Enhancing the differentiation to improve the company’s competitiveness The main business is to construct hydropower plants  Developing efficient management system, improving the management capacity  Gradually diversifying its business lines to high return industry, aiming toward sustainable development 3.1 ASSESSMENT ON COMPETITIVE ADVANTAGE OF CAVICOEC The purpose of assessment on competitive strategy of CAVICOEC is to find ways to fully exploit opportunities, eliminate or narrow threats in order to strengthen the differentiation strategy Besides, it also evaluates the current orientation of the diversification strategy pursued by the Board of Directors of CAVICOEC 3.1.1 Assessment on the expected diversification strategy of CAVICOEC In theory, there are basic issues in the strategy of multi-industry companies The first issue is the selection of business industry The second issue is how to cooperate strategies of different SBUs in the company For the purpose of this part, we can imagine a vision for CAVICOEC where the company carries out diversification strategy: Besides the current hydro-electric field, the company plans to restructure itself Therefore, CAVICOEC will have strategic business units (SBUs), namely SBU in the hydro-electric field and SBU in company restructure field The nd question is whether these SBUs will support each other to improve the competitive advantage Different strategies: SBU pursues cost focus strategy, finding cost differences SBU has to possess at least 15% (equivalent to 4.5 billion VND) while the rest can be borrowed from banks (if possible) On the contrary, SBU needs capital extracting from the equity of the company Different period of capital recovery: The expected capital recovery period of SBU is 4-5 years while this is considered a long period for SBU 2, which limits the capital recovery period within years Harming the common brand: SBU targets low cost while SBU targets unique leading position, which, in combination, can blur the brand identity decrease the opportunity for sharing the same hydro-electricity related brand 56 Enhancing the competitive advantage of Cavicoec External alliance: SBU is a portion of the value chain while SBU seeks for support from external alliances Different value activities: Value activities of SBU are quality products, close relationship with lenders and customers in the hydro-electric field, suppliers and consumers Therefore, value activities of SBU are different from those of SBU Such differences can increase compromised costs, and can affect the sharing of viewpoints on costs and differences between the SBUs In conclusion, the expected diversification strategy of CAVICOEC can be stuck in the conflicting relationship between the SBUs as mentioned above 3.1.2 Assessment of investment and business activities of CAVICOEC As mentioned in Chapter II, the BCG matrix (a famous investment capital management instrument developed by the Boston Consulting Group in the early 70s) are presented in axis: industry growth speed and related market share The vertical axis illustrates the industry growth speed, which can be divided into parts – high and low An average industry growth speed of over 10% is considered high The horizontal axis illustrates related market share, which can be divided into low and high parts with margin located at Related market share is the market share of a company in relation to market share of the largest rival in the industry Each product line of CAVICOEC appears as a circle in the BCG matrix, the size of each circle reflects the percentage of turnover The biggest rival of CAVICOEC in the hydro-electric field is Song Da hydroelectric construction company, as both CAVICOEC and Song Da are affiliated to big corporations (CAVICO.VN and Song Da), and are parts of the value chain of alliances in low market share business field while both are operating in high profitability market (Refer to the table on next page) Question marks High Star 57 Enhancing the competitive advantage of Cavicoec Cash cow Construction Dog High LowCompetitive strategies Graph 3.16: The BCG matrix( Position’s CAVICOEC) As a result, the hydro-electric construction requires convenient flow of capital to sustain, if not increase, market share This business field and its products are highly risky On the contrary, corporate restructuring can be fine, but it needs higher investment to achieve high growth (cash cow) Given its restricted financial resources while hydro-electric construction is more valuable activity, CAVICOEC needs to carefully take into consideration the allocation of resources for its business investment activities Following are some recommendations for CAVICOEC Corporate restructure: CAVICOEC should not allocate its restricted resources but should optimize its relationship with financial organizations and improve staff expertise and experience and enhance technology CAVICOEC can develop its relationship with financial institutions, on the conditions that CAVICOEC has to bargain with these institutions to cooperate for mutual benefits Capital flow from restructure will support the company’s activities in hydro-electric field Hydro-electric construction: This field requires large capital flow to provide financial funding for growth The Board of Directors of CAVICOEC should focus on investment capital management to achieve the expected results and to ensure the liquidity of capital while improving the competitive advantage of CAVICOEC - Decreasing all costly activities which not affect the selected differentiation to fund for the hydro-electric industry - Balancing restricted resources between hydro-electric construction and company restructure This can become very difficult due to contradicting characteristics between the fields: Differentiation is more valuable for hydro-electricity activities while also bringing more benefits to the restructure activities 58 Enhancing the competitive advantage of Cavicoec 3.1.3 Sources of differentiation The hydro-electric construction is one of the sources of differentiation for hydroelectric investment field The combination of different value activities is more sustainable and less likely to be imitate since it requires overall shift in all activities of rivals All aspects mentioned in Section 2.4 of this capstone project such as strategies, size, responding actions, shared brand, external alliance and value activities … will help decrease compromising costs, and affects the sharing of value viewpoints and differences between the SBUs 3.1.4 Coping with substitutes In Vietnam, hydro-electricity is a major source of electricity thanks to its characteristics and lower price than thermal electricity The nuclear electricity is still under development Thus there are almost no substitutes for hydro-electric products The current threats only come from substitute companies The best solutions come when foreign companies join the market This is a possibility in the context of government policies, under financial pressure from ODA and commercial credit etc In this case, the appearance of foreign companies create both advantages and disadvantages for CAVICOEC The advantages are the large bargaining power of foreign companies, requirements for high technology, the sharing of profit, responsibilities and duties etc On the contrary, all these requirements perfectly match the orientation of CAVICOEC towards improving competitive advantage Cooperation can create benefits for both sides In order to gain fruitful benefits, CAVICOEC needs to take suitable measures to improve its competitive advantage, professionalize all administrative and production activities The worst scenario arises when newly emerged domestic and foreign hydro-electric companies substitute CAVICOEC in hydro-electric projects This disadvantage obviously affects CAVICOEC, resulting in decrease in market share of this company In its development process, CAVICOEC should avoid this by improving its competitive advantage through its internal strengths and the support from shareholders In addition, CAVICOEC can gain better position in the market if it can quickly improve competitive advantage and carry out construction projects before the entry of foreign substitute companies 3.2 SUSTAINABLE STRATEGIC ADVANTAGE OF CAVICOEC 59 Enhancing the competitive advantage of Cavicoec CAVICOEC chooses to apply the overall strategy of focus differentiation in the narrow field of hydro-electric construction among the wide range of business fields In the hydro-electric construction field, CAVICOEC mainly serves the special demand of EVN and its shareholders – hydro-electric investors Therefore, CAVICOEC is different from its current rivals as it can play a unique role in the value chain of Habubank and CAVICO Viet Nam Despite this role, whether CAVICOEC can sustain competitive advantage as the differentiated focus point for long-term business depends on the question of whether CAVICOEC pays attention to the costs and sustainability of the differentiation it achieves 3.2.1 Analysis on the differentiation focus of CAVICOEC 3.2.1.1 Motives for uniqueness To analyze the defined competitive advantage of CAVICOEC, we start with the motives for uniqueness of CAVICOEC, including policy options and linkages, to identify the reasons why the hydro-electric construction field creates favourable conditions for shareholders’ investment activities Policy options: CAVICOEC follows some policy options which lead to uniqueness, including (i) highly-professional technology used in hydro-electric construction; (ii) the extent of expertise and experience of staffs Such policies options enable CAVICOEC to overcome many other hydro-electric construction companies as these companies lack fundamental knowledge in the field, partially as a result of instability and rapid changes in technology, expertise and experience of staffs However, such policy options are not the only motives for uniqueness as many companies have adopted these policies If motives for uniqueness only take the forms of policy options, then rivals can easily imitate Currently, most turnover of CAVICOEC is related to hydro-electric construction in Vietnam Therefore, CAVICOEC needs to focus on technology since the difference in technology gives CAVICOEC a different position compared to its rivals Linkages: Include linkages in the value chain of CAVICOEC, linkages with suppliers and customers Among these, as mentioned in Chapter II, the linkage between CAVICOEC and HABUBANK and CAVICO are important linkages, allowing CAVICOEC to attain sustainability in differentiation focus in case the company can meet the requirements for higher quality products and shorter time The origin of 60 Enhancing the competitive advantage of Cavicoec CAVICOEC’s quality aspect, in turn, stems from improve the level and the management of technology 3.2.1.2 Organizational factors Organizational factors allow CAVICOEC to promptly have differences from other companies in Vietnam Though this difference is not difficult for rivals to imitate, it lays the background for the company to advance in the race for differences with other companies 3.2.1.3 Costs of differentiation focus Differences usually incur costs Differences usually incur costs CAVICOEC follows the differentiation focus strategy to provide quality products and services given the level of expertise, experience and technology of staffs in the field as a motive for uniqueness Of course the costs of differentiation are high, given the fact that the technology in the field is changing so quickly However, it can create and sustain the competitive advantage of the company through its excel operational activity 3.2.1.4 Customer value and differentiation focus CAVICOEC can create values for its project owners, namely EVN and its shareholders through: (i) decreasing the costs charged on customers; (ii) increasing operational capacity of customers through impacts of the company’s value chain to those of its project owners The more impacts products and services of CAVICOEC have on the value chains of its shareholders, the clearer the differentiation focus of CAVOCOEC However, all these mechanisms stem from the uniqueness of CAVICOEC in terms of (i) professional technology used in the field; (ii) the level of expertise and experience of staffs 3.2.2 Recommendations on sustainable competitive advantage for CAVICOEC The sustainability of the competitive advantage of CAVICOEC depends on main factors The first is the background laid by prestigious founding shareholders The second is difficulty in copying or imitation The following recommendations are made based on SWOT analysis (either factors having positive or negative influence in competitive advantage) and the differentiation focus of CAVICOEC  Establish effective overall management system  Focus on improving the level and the management of technology  Focus on maximizing profit in the field Investigating to diversify its business lines 61 Enhancing the competitive advantage of Cavicoec  Further sustain differences From the orientation for sustainable competitive advantage mentioned above, there are different measures to that need to be taken in CAVICOEC: * The overall management system Lowering the costs of activities which are not related to the main business of the company – the hydro-electric construction field and replacing costly activities with less costly activities, carry out restructure to add more value to activities in the value chain, as proposed in Chapter II Reconsider the restructure of the value chain by combining into main components: ascending combination (developing hydro-electric construction activities) and descending combination (cooperating with suppliers) In addition to becoming a major contractor, the company should also develop a system of sub-contractors in order to increase the scope of work while promoting investment activities and diversifying business fields Adopt proper policies to promptly recruit professional managers in the field * Technology Develop effective construction procedures, for example applying ISO 90012000 Pioneer in technology in the field of hydro-electric construction Import modern technology Quickly exploit all internal resources in terms of technology Strengthen quality control of all inputs provided by partners Improve the IT system Apply ERP Oracle * Human resources development Renovate human resources policy, including salaries, criteria for recruiting and hiring staffs, training programs and incentives, control of staff’s discipline Promote learning opportunities and teamwork spirit Enhance corporate culture 3.3 OTHER CONDITIONS The hydro-electric industry is a newly emerged industry facing many challenges hindering its development Some of these challenges are: lack of quality basic data, lack of technological standardization, not trustworthy quality, delay in approval, high 62 Enhancing the competitive advantage of Cavicoec costs etc Besides problems that are out of Government control, the Government should improve macro-management policies, the standardization issue, research funded by the government, development assistance fund, construction training and consulting sources 3.4 CONCLUSION AND RECOMMENDATION Competitive advantage plays a very important role in the development of a company In other words, competitive advantage concretize strategies, as Michael Porter defined, “competitive advantage provides a structure to describe and evaluate strategies, connect them with corporate behaviors and understand the source of competitive advantage” Competitive advantage is related to the concept of value chain, an overall system for strategic thoughts on activities related to any business field and evaluation of their costs and roles The value chain provides a method to understand the source of customer values which can incur higher price (over the general price thanks to quality and position) and also a reason why a specific product or service can replace other products and services Due to the meaning of this new concept and the complicated process through which it was developed, the authors have focused on analyzing the process to improve the sustainable competitive advantage for CAVICOEC, a newly established company in the construction field while this is also a newly emerging industry with high growth and many risks The analysis based on Michael Porter’s theory on the five competitive forces, the value chain, the SWOT analysis, the BCG matrix have explained why the company brings value to its customers, and how to sustain and improve competitive advantage to create more customer values In this way, the company can sustain and improve its excel operational capacity From a new comer to the market, a sustainable competitive advantage can bring the company effective competitive strategies, prestige and position in a challenging environment At present, CAVICOEC has proved its initial operation and success What CAVICOEC has done through its products and services as part of the value chain of its alliance has special implication, not only for the company but also for others operating in this business field However, formulating competitive strategies to improve competitive advantage is a continuous process The important issue for managers is to realize the difficulties even when the business seems to run well The 63 Enhancing the competitive advantage of Cavicoec main reason for this is the evolution of the company itself and the business environment In the emerging hydro-electric industry, what is suitable at present may no longer be suitable in the future Therefore, even a good competitive strategy with sustainable competitive advantage may need restructuring to ensure that the company takes into account the changes in its development process The authors hope that all questions raised in the Introduction of the capstone project have been answered We also hope that the issues presented in this capstone project will be addressed in further research, with more holistic methodology, and if possible, contributing to the development of CAVICOEC in general and other companies in general Finally, I believe that CAVICOEC will be successful in coping with future challenges 64 Enhancing the competitive advantage of Cavicoec LIST OF REFERENCES - Decision No 176/2004/QĐ –TTg dated 05th October 2004 of the Prime Minister on the approval of Vietnam Electricity Development Strategy for 2004 – 2010 and orientation to 2020 - Resolution of the regular Government plenary meeting in August 2009, no 44/NQCP dated 5th September 2009 - Directives on formulating the socio-economic development plan for 2010 – 2015, No 751/CT-TTg dated 03rd June 2009 - Master plan for socio-economic development of Vietnam Published in 2002 by the National Political Publishing House - Duong Hoai Bac, factors influencing Vietnam national competitive advantage in the world, Journal of Economy and Development issue no 92 published in 2005 - Bach Ngoc Thang, Pham Quang Trung, Vu Dinh Hien, Dang Ngoc Bien, Improving competitive capacity of SMEs, National Economics University , 2009 - Duong Ngoc Dung, Competitive strategy theory of M Porter, Ho Chi Minh City Publishing House, 2006 - Le Dang Minh, China after WTO accession, impacts and solutions to enhance competitive advantage of some Vietnamese industries, Doctor Dissertation, Research Institute for World Politics and Economy, 2007 - Nguyen Hoang, Vietnamese enterprises in integration context – challenges and solutions to improve competitiveness, Journal of Commerce, Issue no 18 – 2007 - HT, Priority for comparative advantage and competitiveness, Journal of Commerce, Issue No 43 – 2006 - Nguyen The Vinh, Marketing application to improve competitive advantage at provincial level, Journal of Economy and Forecasts, issue no - 2008 - Tang Van Nghia, Competition policies as macro-instrument to improve competitive advantage of enterprises in international economic integration, Democracy and Policy, 2007 - development strategy of the Electricity industry – strengthened management and reform, World Bank in Vietnam, 2006 - Thanh Huong, The electricity industry attracts investor, Securities investment, 2006 - Nguyen Hoang Ha, Some obstacles for Vietnamese electricity industry during economic development process, Journal of Economy and Development, 2007 65 Enhancing the competitive advantage of Cavicoec - Website (www.evn.com.vn), Website (www.moi.gov.vn), Website (cavicoec.com) - Philip Kotler, Gary Armstrong, John Sauders, Veronica Wong, Principles of Marketing, Third European Edition, Prentice Hall, 2001 - Henry Mintzberg, The design school: Reconsidering the basic premises of strategic management, John Wiley and Sons Limited, 1990 - Michael E Porter, Competitive Advantages, Creating and Sustaining Superior Performance, First Free Press Edition, The Free Press, 1998 - Michael E Porter, Competitive Strategy, Techniques for Analyzing Industries and Competitors, First Free Press Edition, The Free Press, 1998 - Dr Nguyen Thu Thuy, Capital structure, strategic competition and governance, University Rotterdam, 2008, P158-159 - H Mintzberg, "The Design School: Reconsidering the Basic Premises of Strategic Management," Strategic Management Journal, 11/6 (1990): 171-195; H Mintzberg, "Learning 1, Planning O: Reply to Igor Ansoff," Strategic Management Journal, 12/6 (1991): 463-466; H.I Ansoff, "Critique of Henry Mintzberg's The Design School: Reconsidering the Basic Premises of Strategic Management,'" Strategic Management Journal, 12/6 (1991): 449-461 - Boston Consulting Group, Strategy Alternatives for the British Motorcycle Industry, Her Majesty's Stationery Office, London, July 30, 1973, p xvi - H Mintzberg, "Patterns in Strategy Formation," Management Science (May 1978), pp 934-948 - Kotler,Philip; Gary Armstrong,Veronica Wong, John Saunders (Marketing researcher) (2008) "Marketing defined" Principles of marketing (5th ed.) p - Kotler,Philip; Gary Armstrong,Veronica Wong, John Saunders (Marketing researcher) (2008) "Marketing defined" Principles of marketing (5th ed.) p 17 - Adcock, Dennis; Al Halborg, Caroline Ross (2001) "Introduction" Marketing: principles and practice (4th ed.) p 15 - Takahiro Fujimoto, Competing to be really, really good, the behind the scenes drama of capability – building competition in the automobile industry, Transl by Brian Miller, Tokyo International House of JAPAN, 2007 - Erinda M Medalla, Competition Policy in Routledge, 2005 66 EAST ASIA, London NewYork Enhancing the competitive advantage of Cavicoec - Micheal Kuhn, The Greeting of markets: products competition, pollution and policy making in a Duopoly, Cheltenham Northampton Eward Elgar, 2005 - Chris Milner Robert Read, Trade liberalization competition and the WTO, Cheltenham – Noethampton – Edward Elgar, 2002 - development strategies for Vietnamese electricity industry for 2004 - 2010, orientation for 2020 promulgated as attachment of Decision No.176/2004/QĐ-TTg of the Prime Minister - International Business - John D Daniesl, Lee H Radebaugh – Statistics Publishing House, 2005 - References provided to students of the MBA training program – Hanoi National University 67