R a tio n a le
V ie tn a m is n o w lo o k in g fo rw a rd to ủ ir th e r d e v e lo p m e n t a n d g lo b a liz a tio n b y jo in i n g W T O in 2 0 0 7 a n d a d ịu s tin g o p e n p o lic ie s to m u lti-n a tio n a l c o m p a n ie s vvho h a v e s tro n g p o s itio n in th e g lo b a l m a rk e t V ie tn a m c o m p a n ie s h a v e to suíT er h ig h c o m p e titio n a n d p re s s u r e fro m th o s e ío re ig n c o m p a n ie s In a n o th e r h a n d , c o n s u m e r in te r e s ts c o n s ta n tly c h a n g in g a n d in d u s tr y c o m p e titio n in c re a s in g , m a s s p ro d u c tio n s y s te m s o fte n d o n o t a lig n a n o rg a n iz a tio n vvith its c u s to m e rs A d o p tin g m a s s c u s to m iz a tio n is in c re a s in g a s a m e th o d fo r c o p in g w ith th e s e c h a n g e s H o v v ev er, in o r d e r to a d o p t m a s s c u s to m iz a tio n , b u s in e s s fu n c tio n s m u s t im p ro v e
H y u n d a i V ie tn a m s p e c ia liz e s in a u to m o tiv e in d u s try a n d it h a s to fa c e h ig h c o m p e titio n a s w e ll vvhich o th e r V ie tn a m e n te r p r is e s a re fa c in g H y u n d a i V ie tn a m is y o u n g to a u to m o tiv e in d u s try o r A u to m o b ile in d u s try a n d th e c u r r e n t s tra te g y o f
H y u n d a i V ie tn a m d o e s r r t w o r k w e ll to m e e t c u s to m e r n e e d s T h a t’s w h y I d e c id e d to b u ild u p a b u s in e s s le v e l s tra te g y fo r H y u n d a i V ie tn a m u s in g c o m p a n y ’s c o re c o m p e te n c ie s to g a in c o m p e titiv e a d v a n ta g e s o v e r o th e r c o m p e tito rs
R esearch O b je c tiv e
T h e o b je c tiv e o f th is th e s is is to fín d o u t a n a p p ro p r ia te b u s in e s s -le v e l s tr a te g y fo r H y u n d a i V ie tn a m to g e t th r o u g h th e re c e s s io n tim e a n d lo o k in g fo rw a rd d e v e lo p m e n t
R esearch s c o p e
T h e r e s e a r c h íb c u s e s o n ly o n H y u n d a i V ie tn a m in V ie tn a m m a r k e t
R esearch m e th o d
M e th o d to b u ild u p a b u s in e s s s tr a te g y f o r H y u n d a i V ie tn a m b a s e o n a S tra te g ic m a n a g e m e n t th e o r ie s to fo c u s o n íĩn d in g a p p r o p r ia te a p p ro a c h e s to b u s in e s s s tr a te g y f o r m u la tio n , a n d in d e n tiíy a c o m m o n p r o c e s s to b u ild b u s in e s s s tr a te g ie s b F a c to rs c a n b e a f f e c te d to th e b u s in e s s c C a s e a n a ly s is a n d r e c o m m e n d a tio n s to b u s in e s s
D ata s o u rc e s
L ite r a tu r e s rev iev v p a r t h a s b e e n ta k e n fro m b o o k s , n e w s p a p e r , in te rn e t s o u rc e s A n d p r im a r y d a te h a s b e e n ta k e n fro m H y u n d a i V ie tn a m lo c a lly
L im ita tio n
T h e s e c o n d a r y in f o r m a tio n so m e h o v v is n o t u p d a te d ; th e s ta tis tic o f im p o rt c a r w a s n o t c o v e r e d c o r r e c tly a n d fu lly b y c u s to m s d e p a r tm e n t b e c a u s e o f d if f e r e n t r e a s o n s A n d th e p rim a r y d a ta fro m H y u n d a i V ie tn a m , s o m e in íb r m a tio n is c o n fid e n tia l a n d n o t a llo w e d to p u b lic
T o fín d o u t th e r ig h t b u s in e s s - le v e l s tr a te g ie s f o r H y u n d a i V ie tn a m d u r in g th e re c e s s io n tim e a n d it w ill g e t g o o d r e s u lt in a p p ly in g th is s tr a te g y in to H y u n d a i
T h e th e s is is d iv iđ e d in to 3 c h a p te r s :
C h a p te r 1 íò c u s e s o n lite r a tu r e r e v ie w w ith th e ílin d a m e n ta l th e o r y o f s tr a te g ie s b u s in e s s - le v e l s tr a te g ie s a n d th e im p o r ta n c e o f b u s in e s s - le v e l s tr a te g ie s
C h a p te r 2 w ill g iv e y o u th e o v e rv ie v v o f V ie tn a m a u to m o b ile in d u s tr y a n d th e c a s e o f H y u n d a i V ie tn a m w ith b a c k g r o u n d , e x te m a l a n d in te m a l a n a ly s is o f H y u n d a i
V ie tn a m to fín d s o m e k e y f a c to r s o f s tr e n g th s a n d w e a k n e s s e s o f H y u n d a i.
C h a p te r 3 id e n tif íe s th r e a ts a n d o p p o r tu n itie s b a s e o n a n a ly s is in c h a p te r 2 to b u ild u p a p p ro p r ia te s tr a te g y f o r H y u n d a i V ie tn a m
T h e la s t p a rt vvill b e c o n c lu s io n o f th e th e s is
1.1 Strategy and Business-Level Strategies
S tra te g y A c c o rd in g to G e o rg e S te in e r
C a liíb m ia M a n a g e m e n t R e v ie w , is g e n e r a lly c o n s id e r e d a k e y f íg u r e in th e o rig in s a n d d e v e lo p m e n t o f s tr a te g ic p la n n in g H is b o o k , S tr a te g ic P la n n in g is c lo s e to b e in g a b ib le o n th e s u b je c t Y e t, S te in e r d o e s n o t b o th e r to d e íĩn e s tra te g y e x c e p t in th e n o te s a t th e e n d o f h is b o o k T h e r e , h e n o te s th a t s tr a te g y e n te r e d th e m a n a g e m e n t lite r a tu r e a s a w a y o f r e í e r r in g to w h a t o n e d id to c o u n te r a c o m p e tito r ’s a c tu a l o r p r e d ic te d m o v e s S te in e r a ls o p o in ts o u t in h is n o te s th a t th e re is v e ry little a g r e e m e n t a s to th e m e a n in g o f s tr a te g y in th e b u s in e s s w o rld
S o m e o f th e d e íĩn itio n s in u s e to w h ic h S te in e r p o in te d in c lu d e th e fo llo w in g :
• S tra te g y is th a t w h ic h to p m a n a g e m e n t d o e s th a t is o f g r e a t im p o r ta n c e to th e o rg a n iz a tio n
• S tra te g y r e f e r s to b a s ic d ir e c tio n a l d e c is io n s , th a t is, to p u r p o s e s a n d m is s io n s
• S tr a te g y c o n s is ts o f th e im p o r ta n t a c tio n s n e c e s s a r y to r e a liz e th e s e d ir e c tio n s
• S tr a te g y a n s w e r s th e q u e s tio n : W h a t s h o u ld th e o r g a n iz a tio n b e d o in g ?
• S tra te g y a n s w e r s th e q u e s tio n : W h a t a re th e e n d s w e s e e k a n d h o w s h o u ld w e a c h ie v e th e m ?
1.1.2 B u sin ess-lev el s tra te g ie s
T h e b u s in e s s - le v e l s tr a te g y r e f e r s to th e p la n o f a c tio n th a t s tr a te g ic m a n a g e rs a d o p t to u s e a c o m p a n y ’s r e s o u r c e s a n d d is tin c tiv e c o m p e te n c ie s to g a in a c o m p e titiv e a d v a n ta g e o v e r its r iv a ls in a m a r k e t o r in d u s tr y
P r o c e s s o f b u s in e s s d e íĩn itio n e n ta ils d e c is io n s a b o u t (1 ) c u s to m e r s ' n e e d o r w h a t is to b e s a tis íìe d ; (2 ) c u s to m e r g ro u p , o r w h o is to b e s a tis íìe d ; a n d (3 ) d is tin c tiv e c o m p e te n c ie s , o r hovv c u s to m e r n e e d s a re to b e s a tis íie d T h e s e th r e e d e c is io n s a re th e b a s is o f th e c h o ic e o f a b u s in e s s -le v e l s tra te g y b e c a u s e th e y d e te r m in e h o w a c o m p a n y w ill c o m p e te in a b u s in e s s o r in d u s try
C ustom ers’ needs and p ro d u ct diíĩerentiation:
C u s t o m e r s ' n e e d s a re d e s ir e s , w a n ts , o r c ra v in g s th a t c a n b e s a tis íĩe d b y m eans o f the ch aracteristics o f a product or Service.
P ro d u c t d if f e r e n tia tio n is th e p ro c e s s o f c re a tin g a c o m p e titiv e a d v a n ta g e b y d e s ig n in g p r o d u c ts - g o o d s o r s e r v ic e s to s a tis lỳ c u s to m e r s ' n e e d A ll c o m p a n ie s m u s t d if f e r e n tia te th e ir p ro d u c ts to a c e rta in d e g re e in o rd e r to a ttra c t c u s to m e r s a n d s a tis íỳ s o m e m in im a l le v e l o f n e e d H o w e v e r, s o m e c o m p a n ie s d if f e r e n tia te th e ir Products to a m uch g reater degree than others, and this difference can give them a c o m p e titiv e e d g e
C ustom er groups and M a rk et segm entation:
M a r k e t s e g m e n ta tio n is th e w a y a c o m p a n y d e c id e s to g ro u p c u s to m e r s , b a s e d o n im p o r ta n t d i í ĩ e r e n c e s in th e ir n e e d s o r p re f e r e n c e s , in o r d e r to g a in a c o m p e titiv e a d v a n ta g e Distinctive Com petencies:
T h e th ir d is s u e in b u s in e s s - le v e l s tra te g y is to d e c id e w h ic h d is tin c tiv e c o m p e te n c ie s to p u r s u e to s a tis íy c u s to m e r s ’ n e e d s a n d c u s to m e r g ro u p s
1.1.3 T h e im p o rta n c e o f B usin ess-lev el stra te g ie s
B u s in e s s -Ie v e l s tr a te g ie s e x a m in e h o w a c o m p a n y c a n c o m p e te e íĩe c tiv e ly in a b u s in e s s o r in d u s tr y a n d s c r u tin iz e th e v a r io u s s tr a te g ie s th a t it c a n a d o p t to m a x im iz e c o m p e titiv e a d v a n ta g e a n d p ro íìta b ility W h e n a c o m p a n y p u r s u e s b u s in e s s - le v e l s tr a te g ie s th e y c a n g a in c o m p e titiv e a d v a n ta g e s th a t a llo w th e m to o u tp e r íb r m r iv a ls a n d a c h ie v e a b o v e - a v e r a g e re tu m s T h e y c a n c h o o s e íío m th r e e b a s ic g e n e r ic c o m p e titiv e a p p ro a c h e s : c o s t le a d e rs h ip , d if f e r e n tia tio n , a n d fo c u s
1.2 Business-Level Strategies Form uIation
F ig u re 1.1 B u sin ess level stra te g ie s
1 P ro d u ct d iíĩe re n tia tio n
3 D istin ctiv e co m p eten cies
S trateg y Im p lem en tatio n
(source: S tr a te g ic m a n a g e m e n t a n in te g r a te d a p p ro a c h b y C h a r le s W L H ill a n d G arethr Jo n e s)
T h e m is s io n s e ts o u t w h y th e o rg a n iz a tio n e x is ts a n d w h a t it s h o u ld b e d o in g
V is io n : d e íìn e s a n d d e s c r ib e s th e íìitu re s itu a tio n th a t a c o m p a n y w is h e s to h a v e , th e in te n tio n o f th e V isio n is to g u id e , to c o n tro l a n d to e n c o u r a g e th e o r g a n iz a tio n a s a w h o le to r e a c h th e d e s ir a b le S tate o f th e o rg a n iz a tio n
1.2.2 E x te rn a l a n a ly sis: to id e n tiíy s tr a te g ic o p p o r tu n itie s a n d th r e a ts in th e o r g a n i z a t i o n 's o p e ra tin g e n v ir o n m e n t T h r e e in te r r e la te d e n v ir o n m e n ts s h o u ld b e e x a m in e d a t th is s ta g e : th e im m e d ia te , o r in d u s try , e n v ir o n m e n t in vvhich th e o rg a n iz a tio n o p e r a te s ; th e n a tio n a l e n v iro n m e n t; a n d th e w id e r m a c ro -e n v iro n m e n t.
A n a ly z in g th e in d u s try e n v ir o n m e n t r e q u ire s a n a s s e s s m e n t o f th e c o m p e titiv e s tr u c tu r e o f th e o r e a n iz a tio n ’s in d u s try , in c lu d in e th e c o m p e titiv e p o s itio n o f th e fo c a l o rg a n iz a tio n a n d its m a jo r riv a ls , a s w e ll a s th e s ta g e o f in d u s try d e v e lo p m e n t S in c e m a n y m a rk e ts a re n o w g lo b a l m a rk e ts , a n a ly z in g th e in d u s try e n v ir o n m e n t a ls o m e a n s a s s e s s in g th e im p a c t o f g lo b a liz a tio n u p o n c o m p e titio n vvith in a n in d u s try A n a ly z in g th e n a tio n a l e n v ir o n m e n t r e q u ire s an a s s e s s m e n t o f w h e th e r th e n a tio n a l c o n te x t w ith in w h ic h a c o m p a n y o p e ra te s fa c ilita te s th e a tta in m e n t o f a c o m p e titiv e a d v a n ta g e in th e g lo b a l m a rk e t p la c e
P E S T a n a ly s is s ta n d s fo r "Political, Economic, Socio-cuỉturaỉ, and Technological anaỉysis" a n d d e s c r ib e s a f ra m e w o rk o f m a c r o - e n v ir o n m e n ta l fa c to rs u s e d in th e e n v ir o n m e n ta l s c a n n in g c o m p o n e n t o f s tra te g ic m a n a g e m e n t It is a p a r t o f th e e x te m a l a n a ly s is w h e n c o n d u c tin g a s tra te g ic a n a ly s is o r d o in g m a r k e t r e s e a r c h a n d g iv e s a c e rta in o v e rv ie w o f th e d iíĩe r e n t m a c r o - e n v ir o n m e n ta l fa c to rs th a t th e c o m p a n y h a s to ta k e in to c o n s id e r a tio n It is a u s e íu l s tra te g ic to o l
7 fo r u n d e rs ta n d in g m a rk e t g ro v v th o r d e c lin e , b u s in e s s p o s itio n p o te n tia l and d ir e c tio n f o r o p e ra tio n s
T h e íìr s t e le m e n t o f a P E S T a n a ly s is is a s tu d y o f p o lit ic a l fa c to rs P o litic a l ĩa c to rs in ílu e n c e o r g a n iz a tio n s in m a n y w a y s P o lit ic a l fa c to rs can c re a te a d v a n ta g e s a n d o p p o r tu n itie s f o r o rg a n iz a tio n s C o n v e rs e ly th e y c a n p la c e o b lig a tio n s a n d d u tie s o n o rg a n iz a tio n s P o litic a l ía c to rs in c lu d e th e f o llo w in g ty p e s o f in s tru m e n t
3 L e g is la tio n s u c h as th e m in im u m w a g e o r a n ti d is c r im in a tio n la w s
6 T ra d e a g re e m e n ts , t a r if f s o r r e s tric tio n s
8 T y p e o f g o v e m m e n t re g im e ( e x a m p le : c o m m u n is t, d e m o c r a tic , d ic ta to r s h ip )
T h e s e c o n d e le m e n t o f a P E S T a n a ly s is in v o lv e s a s tu d y o f e c o n o m ic ía c to rs
A l l b u s in e s s e s are a ffe c te d b y n a tio n a l a n d g lo b a l e c o n o m ic ía c to rs N a tio n a l and g lo b a l in te re s t ra te a n d í ĩs c a l p o lic y w i l l be set a ro u n d e c o n o m ic c o n d itio n s T h e c lim a te o f th e e c o n o m y d ic ta te s h o w c o n s u m e rs , s u p p lie rs a nd o th e r o rg a n iz a tio n a l s ta k e h o ld e rs s u c h as s u p p lie rs a n d c re d ito r s b e h a v e w it h in s o c ie ty
A n e c o n o m y u n d e r g o in g re c e s s io n v v ill h a v e h ig h u n e m p lo y m e n t, lo w s p e n d in g p o w e r a n d lo w s ta k e h o ld e r c o n íĩd e n c e C o n v e rs e ly a “ b o o m in g '’ o r g r o w in g e c o n o m y w i l l h a v e lo w u n e m p lo y m e n t, h ig h s p e n d in g p o w e r a n d h ig h s ta k e h o ld e r c o n íìd e n c e
A s u c c e s s íu l o rg a n iz a tio n w i l l re s p o n d to e c o n o m ic c o n d itio n s a nd s ta k e h o ld e r b e h a v io r F u r th e im o r e o r g a n iz a tio n s w i l l n e e d to r e v ie w th e im p a c t e c o n o m ic c o n d itio n s a re h a v in g o n t h e ir c o m p e tito r s a n d re s p o n d a c c o r d in g ly
In th is g lo b a l b u s in e s s w o r ld o r g a n iz a tio n s a re a ffe c te d b y e c o n o m ie s th r o u g h o u t th e w o r ld a n d n o t ju s t th e c o u n tr ie s in w h ic h th e y a re b a s e d o r o p e ra te from.
C h e a p e r la b o r in d e v e lo p in g c o u n tr ie s a ffe c ts th e c o m p e titiv e n e s s o f
A t r u ly g lo b a l p la y e r has to be a w a re o f e c o n o m ic c o n d itio n s a c ro s s a ll b o rd e rs a n d n e e d s to e n s u re th a t it e m p lo y s s tra te g ie s th a t p r o te c t a n d p r o m o te its b u s in e s s th r o u g h e c o n o m ic c o n d itio n s th r o u g h o u t th e w o r ld
T h e t h ir d a s p e c t o f P E S T fo c u s e s it s a tte n tio n o n fo rc e s w i t h i n s o c ie ty s u c h as f a m ily , frie n d s , c o lle a g u e s , n e ig h b o rs a n d th e m e d ia S o c ia l íb rc e s a ff e c t o u r a ttitu d e s , in te re s t s a n d o p in io n s T h e s e íò r c e s sh a p e w h o w e a re as p e o p le , th e vvay w e b e h a v e a n d u lt im a t e ly w h a t w e p u rc h a s e F o r e x a m p le w i t h in th e Ư K p e o p le ’ s a ttitu d e s are c h a n g in g tovva rd s t h e ir d ie t a n d h e a lth A s a re s u lt th e Ư K is s e e in g an in c re a s e in th e n u m b e r o f p e o p le j o in i n g íĩtn e s s c lu b s a n d a m a s s iv e g r o w t h f o r th e d e m a n d o f o r g a n ic fo o d
P o p u la tio n c h a n g e s a ls o h a v e a d ir e c t im p a c t o n o r g a n iz a tio n s C h a n g e s in th e s tru c tu re o f a p o p u la tio n w i l l a ffe c t th e s u p p ly a n d d e m a n d o f g o o d s and s e rv ic e s w it h in an e c o n o m y F a llin g b ir t h ra te s w i l l r e s u lt in d e c re a s e d d e m a n d a n d g re a te r c o m p e titio n as th e n u m b e r o f c o n s u m e rs f a l l C o n v e r s e ly a n in c re a s e in th e g lo b a l p o p u la tio n a n d v v o rld fo o d s h o rta g e p r e d ic tio n s a re c u r r e n tly le a d in g to c a lls
9 f o r g re a te r in v e s tm e n t in ío o d p r o d u c tio n D u e to fo o d s h o rta g e s A í r ic a n c o u n trie s such as U g a n d a a re n o w re c o n s id e rin g t h e ir re je c tio n o f g e n e tic a lly m o d ifie d fo o d s
In s u m m a ry o rg a n iz a tio n s m u s t be a b le to o íT e r P ro d u c ts a n d s e rv ic e s th a t a im to c o m p le m e n t a n d b e n e ĩit p e o p le ’ s lif e s t y le and b e h a v io r I f o rg a n iz a tio n s d o n o t re s p o n d to c h a n g e s in s o c ie ty th e y w i l l lo s e m a rk e t share a n d d e m a n d fo r t h e ir product or Service
T h e th esis s tru c tu re
S trategy and B u siness-L ev el S tra te g ie s
S tra te g y A c c o rd in g to G e o rg e S te in e r
C a liíb m ia M a n a g e m e n t R e v ie w , is g e n e r a lly c o n s id e r e d a k e y f íg u r e in th e o rig in s a n d d e v e lo p m e n t o f s tr a te g ic p la n n in g H is b o o k , S tr a te g ic P la n n in g is c lo s e to b e in g a b ib le o n th e s u b je c t Y e t, S te in e r d o e s n o t b o th e r to d e íĩn e s tra te g y e x c e p t in th e n o te s a t th e e n d o f h is b o o k T h e r e , h e n o te s th a t s tr a te g y e n te r e d th e m a n a g e m e n t lite r a tu r e a s a w a y o f r e í e r r in g to w h a t o n e d id to c o u n te r a c o m p e tito r ’s a c tu a l o r p r e d ic te d m o v e s S te in e r a ls o p o in ts o u t in h is n o te s th a t th e re is v e ry little a g r e e m e n t a s to th e m e a n in g o f s tr a te g y in th e b u s in e s s w o rld
S o m e o f th e d e íĩn itio n s in u s e to w h ic h S te in e r p o in te d in c lu d e th e fo llo w in g :
• S tra te g y is th a t w h ic h to p m a n a g e m e n t d o e s th a t is o f g r e a t im p o r ta n c e to th e o rg a n iz a tio n
• S tra te g y r e f e r s to b a s ic d ir e c tio n a l d e c is io n s , th a t is, to p u r p o s e s a n d m is s io n s
• S tr a te g y c o n s is ts o f th e im p o r ta n t a c tio n s n e c e s s a r y to r e a liz e th e s e d ir e c tio n s
• S tr a te g y a n s w e r s th e q u e s tio n : W h a t s h o u ld th e o r g a n iz a tio n b e d o in g ?
• S tra te g y a n s w e r s th e q u e s tio n : W h a t a re th e e n d s w e s e e k a n d h o w s h o u ld w e a c h ie v e th e m ?
1.1.2 B u sin ess-lev el s tra te g ie s
T h e b u s in e s s - le v e l s tr a te g y r e f e r s to th e p la n o f a c tio n th a t s tr a te g ic m a n a g e rs a d o p t to u s e a c o m p a n y ’s r e s o u r c e s a n d d is tin c tiv e c o m p e te n c ie s to g a in a c o m p e titiv e a d v a n ta g e o v e r its r iv a ls in a m a r k e t o r in d u s tr y
P r o c e s s o f b u s in e s s d e íĩn itio n e n ta ils d e c is io n s a b o u t (1 ) c u s to m e r s ' n e e d o r w h a t is to b e s a tis íìe d ; (2 ) c u s to m e r g ro u p , o r w h o is to b e s a tis íìe d ; a n d (3 ) d is tin c tiv e c o m p e te n c ie s , o r hovv c u s to m e r n e e d s a re to b e s a tis íie d T h e s e th r e e d e c is io n s a re th e b a s is o f th e c h o ic e o f a b u s in e s s -le v e l s tra te g y b e c a u s e th e y d e te r m in e h o w a c o m p a n y w ill c o m p e te in a b u s in e s s o r in d u s try
C ustom ers’ needs and p ro d u ct diíĩerentiation:
C u s t o m e r s ' n e e d s a re d e s ir e s , w a n ts , o r c ra v in g s th a t c a n b e s a tis íĩe d b y m eans o f the ch aracteristics o f a product or Service.
P ro d u c t d if f e r e n tia tio n is th e p ro c e s s o f c re a tin g a c o m p e titiv e a d v a n ta g e b y d e s ig n in g p r o d u c ts - g o o d s o r s e r v ic e s to s a tis lỳ c u s to m e r s ' n e e d A ll c o m p a n ie s m u s t d if f e r e n tia te th e ir p ro d u c ts to a c e rta in d e g re e in o rd e r to a ttra c t c u s to m e r s a n d s a tis íỳ s o m e m in im a l le v e l o f n e e d H o w e v e r, s o m e c o m p a n ie s d if f e r e n tia te th e ir Products to a m uch g reater degree than others, and this difference can give them a c o m p e titiv e e d g e
C ustom er groups and M a rk et segm entation:
M a r k e t s e g m e n ta tio n is th e w a y a c o m p a n y d e c id e s to g ro u p c u s to m e r s , b a s e d o n im p o r ta n t d i í ĩ e r e n c e s in th e ir n e e d s o r p re f e r e n c e s , in o r d e r to g a in a c o m p e titiv e a d v a n ta g e Distinctive Com petencies:
T h e th ir d is s u e in b u s in e s s - le v e l s tra te g y is to d e c id e w h ic h d is tin c tiv e c o m p e te n c ie s to p u r s u e to s a tis íy c u s to m e r s ’ n e e d s a n d c u s to m e r g ro u p s
1.1.3 T h e im p o rta n c e o f B usin ess-lev el stra te g ie s
B u s in e s s -Ie v e l s tr a te g ie s e x a m in e h o w a c o m p a n y c a n c o m p e te e íĩe c tiv e ly in a b u s in e s s o r in d u s tr y a n d s c r u tin iz e th e v a r io u s s tr a te g ie s th a t it c a n a d o p t to m a x im iz e c o m p e titiv e a d v a n ta g e a n d p ro íìta b ility W h e n a c o m p a n y p u r s u e s b u s in e s s - le v e l s tr a te g ie s th e y c a n g a in c o m p e titiv e a d v a n ta g e s th a t a llo w th e m to o u tp e r íb r m r iv a ls a n d a c h ie v e a b o v e - a v e r a g e re tu m s T h e y c a n c h o o s e íío m th r e e b a s ic g e n e r ic c o m p e titiv e a p p ro a c h e s : c o s t le a d e rs h ip , d if f e r e n tia tio n , a n d fo c u s
B u sin ess-L ev el S trateg ies F o rm u la tio n
F ig u re 1.1 B u sin ess level stra te g ie s
1 P ro d u ct d iíĩe re n tia tio n
3 D istin ctiv e co m p eten cies
S trateg y Im p lem en tatio n
(source: S tr a te g ic m a n a g e m e n t a n in te g r a te d a p p ro a c h b y C h a r le s W L H ill a n d G arethr Jo n e s)
T h e m is s io n s e ts o u t w h y th e o rg a n iz a tio n e x is ts a n d w h a t it s h o u ld b e d o in g
V is io n : d e íìn e s a n d d e s c r ib e s th e íìitu re s itu a tio n th a t a c o m p a n y w is h e s to h a v e , th e in te n tio n o f th e V isio n is to g u id e , to c o n tro l a n d to e n c o u r a g e th e o r g a n iz a tio n a s a w h o le to r e a c h th e d e s ir a b le S tate o f th e o rg a n iz a tio n
1.2.2 E x te rn a l a n a ly sis: to id e n tiíy s tr a te g ic o p p o r tu n itie s a n d th r e a ts in th e o r g a n i z a t i o n 's o p e ra tin g e n v ir o n m e n t T h r e e in te r r e la te d e n v ir o n m e n ts s h o u ld b e e x a m in e d a t th is s ta g e : th e im m e d ia te , o r in d u s try , e n v ir o n m e n t in vvhich th e o rg a n iz a tio n o p e r a te s ; th e n a tio n a l e n v iro n m e n t; a n d th e w id e r m a c ro -e n v iro n m e n t.
A n a ly z in g th e in d u s try e n v ir o n m e n t r e q u ire s a n a s s e s s m e n t o f th e c o m p e titiv e s tr u c tu r e o f th e o r e a n iz a tio n ’s in d u s try , in c lu d in e th e c o m p e titiv e p o s itio n o f th e fo c a l o rg a n iz a tio n a n d its m a jo r riv a ls , a s w e ll a s th e s ta g e o f in d u s try d e v e lo p m e n t S in c e m a n y m a rk e ts a re n o w g lo b a l m a rk e ts , a n a ly z in g th e in d u s try e n v ir o n m e n t a ls o m e a n s a s s e s s in g th e im p a c t o f g lo b a liz a tio n u p o n c o m p e titio n vvith in a n in d u s try A n a ly z in g th e n a tio n a l e n v ir o n m e n t r e q u ire s an a s s e s s m e n t o f w h e th e r th e n a tio n a l c o n te x t w ith in w h ic h a c o m p a n y o p e ra te s fa c ilita te s th e a tta in m e n t o f a c o m p e titiv e a d v a n ta g e in th e g lo b a l m a rk e t p la c e
P E S T a n a ly s is s ta n d s fo r "Political, Economic, Socio-cuỉturaỉ, and Technological anaỉysis" a n d d e s c r ib e s a f ra m e w o rk o f m a c r o - e n v ir o n m e n ta l fa c to rs u s e d in th e e n v ir o n m e n ta l s c a n n in g c o m p o n e n t o f s tra te g ic m a n a g e m e n t It is a p a r t o f th e e x te m a l a n a ly s is w h e n c o n d u c tin g a s tra te g ic a n a ly s is o r d o in g m a r k e t r e s e a r c h a n d g iv e s a c e rta in o v e rv ie w o f th e d iíĩe r e n t m a c r o - e n v ir o n m e n ta l fa c to rs th a t th e c o m p a n y h a s to ta k e in to c o n s id e r a tio n It is a u s e íu l s tra te g ic to o l
7 fo r u n d e rs ta n d in g m a rk e t g ro v v th o r d e c lin e , b u s in e s s p o s itio n p o te n tia l and d ir e c tio n f o r o p e ra tio n s
T h e íìr s t e le m e n t o f a P E S T a n a ly s is is a s tu d y o f p o lit ic a l fa c to rs P o litic a l ĩa c to rs in ílu e n c e o r g a n iz a tio n s in m a n y w a y s P o lit ic a l fa c to rs can c re a te a d v a n ta g e s a n d o p p o r tu n itie s f o r o rg a n iz a tio n s C o n v e rs e ly th e y c a n p la c e o b lig a tio n s a n d d u tie s o n o rg a n iz a tio n s P o litic a l ía c to rs in c lu d e th e f o llo w in g ty p e s o f in s tru m e n t
3 L e g is la tio n s u c h as th e m in im u m w a g e o r a n ti d is c r im in a tio n la w s
6 T ra d e a g re e m e n ts , t a r if f s o r r e s tric tio n s
8 T y p e o f g o v e m m e n t re g im e ( e x a m p le : c o m m u n is t, d e m o c r a tic , d ic ta to r s h ip )
T h e s e c o n d e le m e n t o f a P E S T a n a ly s is in v o lv e s a s tu d y o f e c o n o m ic ía c to rs
A l l b u s in e s s e s are a ffe c te d b y n a tio n a l a n d g lo b a l e c o n o m ic ía c to rs N a tio n a l and g lo b a l in te re s t ra te a n d í ĩs c a l p o lic y w i l l be set a ro u n d e c o n o m ic c o n d itio n s T h e c lim a te o f th e e c o n o m y d ic ta te s h o w c o n s u m e rs , s u p p lie rs a nd o th e r o rg a n iz a tio n a l s ta k e h o ld e rs s u c h as s u p p lie rs a n d c re d ito r s b e h a v e w it h in s o c ie ty
A n e c o n o m y u n d e r g o in g re c e s s io n v v ill h a v e h ig h u n e m p lo y m e n t, lo w s p e n d in g p o w e r a n d lo w s ta k e h o ld e r c o n íĩd e n c e C o n v e rs e ly a “ b o o m in g '’ o r g r o w in g e c o n o m y w i l l h a v e lo w u n e m p lo y m e n t, h ig h s p e n d in g p o w e r a n d h ig h s ta k e h o ld e r c o n íìd e n c e
A s u c c e s s íu l o rg a n iz a tio n w i l l re s p o n d to e c o n o m ic c o n d itio n s a nd s ta k e h o ld e r b e h a v io r F u r th e im o r e o r g a n iz a tio n s w i l l n e e d to r e v ie w th e im p a c t e c o n o m ic c o n d itio n s a re h a v in g o n t h e ir c o m p e tito r s a n d re s p o n d a c c o r d in g ly
In th is g lo b a l b u s in e s s w o r ld o r g a n iz a tio n s a re a ffe c te d b y e c o n o m ie s th r o u g h o u t th e w o r ld a n d n o t ju s t th e c o u n tr ie s in w h ic h th e y a re b a s e d o r o p e ra te from.
C h e a p e r la b o r in d e v e lo p in g c o u n tr ie s a ffe c ts th e c o m p e titiv e n e s s o f
A t r u ly g lo b a l p la y e r has to be a w a re o f e c o n o m ic c o n d itio n s a c ro s s a ll b o rd e rs a n d n e e d s to e n s u re th a t it e m p lo y s s tra te g ie s th a t p r o te c t a n d p r o m o te its b u s in e s s th r o u g h e c o n o m ic c o n d itio n s th r o u g h o u t th e w o r ld
T h e t h ir d a s p e c t o f P E S T fo c u s e s it s a tte n tio n o n fo rc e s w i t h i n s o c ie ty s u c h as f a m ily , frie n d s , c o lle a g u e s , n e ig h b o rs a n d th e m e d ia S o c ia l íb rc e s a ff e c t o u r a ttitu d e s , in te re s t s a n d o p in io n s T h e s e íò r c e s sh a p e w h o w e a re as p e o p le , th e vvay w e b e h a v e a n d u lt im a t e ly w h a t w e p u rc h a s e F o r e x a m p le w i t h in th e Ư K p e o p le ’ s a ttitu d e s are c h a n g in g tovva rd s t h e ir d ie t a n d h e a lth A s a re s u lt th e Ư K is s e e in g an in c re a s e in th e n u m b e r o f p e o p le j o in i n g íĩtn e s s c lu b s a n d a m a s s iv e g r o w t h f o r th e d e m a n d o f o r g a n ic fo o d
P o p u la tio n c h a n g e s a ls o h a v e a d ir e c t im p a c t o n o r g a n iz a tio n s C h a n g e s in th e s tru c tu re o f a p o p u la tio n w i l l a ffe c t th e s u p p ly a n d d e m a n d o f g o o d s and s e rv ic e s w it h in an e c o n o m y F a llin g b ir t h ra te s w i l l r e s u lt in d e c re a s e d d e m a n d a n d g re a te r c o m p e titio n as th e n u m b e r o f c o n s u m e rs f a l l C o n v e r s e ly a n in c re a s e in th e g lo b a l p o p u la tio n a n d v v o rld fo o d s h o rta g e p r e d ic tio n s a re c u r r e n tly le a d in g to c a lls
9 f o r g re a te r in v e s tm e n t in ío o d p r o d u c tio n D u e to fo o d s h o rta g e s A í r ic a n c o u n trie s such as U g a n d a a re n o w re c o n s id e rin g t h e ir re je c tio n o f g e n e tic a lly m o d ifie d fo o d s
In s u m m a ry o rg a n iz a tio n s m u s t be a b le to o íT e r P ro d u c ts a n d s e rv ic e s th a t a im to c o m p le m e n t a n d b e n e ĩit p e o p le ’ s lif e s t y le and b e h a v io r I f o rg a n iz a tio n s d o n o t re s p o n d to c h a n g e s in s o c ie ty th e y w i l l lo s e m a rk e t share a n d d e m a n d fo r t h e ir product or Service
U n s u r p r is in g ly th e íb u r th e le m e n t o f P E S T is te c h n o lo g y , as y o u are p ro b a b ly a w a re te c h n o lo g ic a l a d v a n c e s h a v e g re a tly c h a n g e d th e m a n n e r in w h ic h b usine sse s o p e ra te O r g a n iz a tio n s use te c h n o lo g y in m a n y w a y s , th e y h a v e
1 T e c h n o lo g y in ử a s tr u c tu r e su ch as th e in te r n e t and o th e r in fo r m a tio n e x c h a n g e s y s te m s in c lu d in g te le p h o n e
2 T e c h n o lo g y s y s te m s in c o r p o r a tin g a m u ltitu d e o f s o ftw a re w h ic h h e lp th e m m a n a g e t h e ir b u s in e s s
3 T e c h n o lo g y h a rd v v a re su ch as m o b ile p h o n e s , B la c k b e r r y s , la p to p s , d e s k to p s ,
B lu e to o th d e v ic e s , p h o to c o p ie rs a n d fa x m a c h in e s w h ic h tr a n s m it a n d re c o rd in í b r m a tio n
T e c h n o lo g y has c re a te d a s o c ie ty w h ic h e x p e c ts in s ta n t re s u lts T h is te c h n o lo g ic a l r e v o lu t io n has in c re a s e d th e ra te at w h ic h in f o r m a tio n is e x c h a n g e d b etvveen s ta k e h o ld e rs A fa s te r e x c h a n g e o f in í o r m a tio n ca n b e n e fít b usine sse s as th e y a re a b le t o re a c t q u i c k ly to c h a n g e s w it h in th e ir o p e ra tin g e n v iro n m e n t.
H o v v e v e r an a b i lit y to re a c t q u ic k ly a ls o cre a te s e x tra p re s s u re as b usine sse s are e x p e c te d to d e liv e r o n t h e ir p ro m is e s v v ith in e v e r d e c re a s in g tim e s c a le s
F o r e x a m p le th e In te r n e t is h a v in g a p r o fo u n d im p a c t o n th e m a r k e tin g m ix s tra te g y o f o r g a n iz a tio n s C o n s u m e rs ca n n o w s h o p 2 4 h o u rs a d a y fr o m t h e ir h o m e s w o r k a n d In te rn e t c a fé ’ s and v ia 3 G p h o n e s a n d 3 G c a rd s S o m e e m p lo y e e s h a v e in s ta n t a ccess to e - m a ils th r o u g h B l a c k B e r r y ^ b u t th is c a n be a d o u b le e d g e d s w o rd as s tu d ie s h a v e s h o w n th a t th is access c a n ca u s e w o r k to e n c ro a c h o n t h e ir p e rs o n a l tim e o u ts id e w o r k
T h e p a ce o f t e c h n o lo g ic a l c h a n g e is so fa s t th a t th e a v e ra g e lif e o f a Computer c h ip is a p p r o x im a te ly 6 m o n th s T e c h n o lo g y is u t iliz e d b y a ll age g ro u p s , c h ild r e n are e x p o s e d to te c h n o lo g y f r o m b ir th a n d a n e w g e n e ra tio n o f te c h n o lo g y s a v v y p e n s io n e rs k n o w n as “ s ilv e r s u rfe r s ” has e m e rg e d T e c h n o lo g y w i l l c o n tin u e to e v o lv e a n d im p a c t o n c o n s u m e r h a b its a n d e x p e c ta tio n s , o rg a n iz a tio n s th a t ig n o re th is fa c t fa c e e x tin c t io n
In th e ta b le b e lo w y o u fin d e x a m p le o f e a c h o f th e s e íầ c to rs
Technological Factors Environmental r e g u la tio n s a n d p r o te c t io n
Economic grovvth In c o m e d is t r ib u t io n
In d u s tr y fo c u s o n te c h n o lo g ic a l e ffo rt
Interest rate and m onetary policies
D e m o g r a p h ic , a g e distribution, p o p u la tio n g r o w t h rate new invention and d e v e lo p m e n t
International trade r e g u la tio n a n d r e s t r ic t io n s
G o v e r n m e n t spending social m obility r a te o f te c h n o lo g y transfer
U n e m p lo y m e n t policies life style changes
Change in lnform ation te c h n o lo g y ỉ ỉ
Employment lavv Taxation Education change in internet Government attitude
Exchange rate Health consciousness change in mobile technology Competition regulation lnflation living condition political stability
1.2.2.2 M icro A nalysis: Five Forces M odel
T h e ta s k fa c in g m a n a g e rs is to a n a ly z e c o m p e titiv e fo rc e s in an in d u s t iỳ s e n v ir o n m e n t in o r d e r to id e n t ií y th e o p p o r tu n itie s a n d th re a ts c o n lr o n t in g a c o m p a n y M ic h a e l E P o rte r has d e v e lo p e d a fr a m e w o r k th a t h e lp s m a n a g e rs in th is a n a ly s is T h is m o d e l ío c u s e s o n fív e fo rc e s th a t shape c o m p e titio n w it h in an in d u s try
(so u rce : S tr a íe g ic m a n a g e m e n t a n in te g ra te d a p p ro a c h b y C h a rles w L H ill a n d G arethr Jo n e s)
F iv e fo rc e s a n a ly s is lo o k s at f iv e k e y areas n a m e ly th e th re a t o f e n try th e p o w e r o f b u y e rs th e p o w e r o f s u p p lie rs , th e th re a t o f s u b s titu te s , a n d c o m p e titiv e r iv a lr y
F o rm u la tio n and C h o ic e
autom obiles) technology custom er Service, dealer n e tw o r k E tc differentiation p ro v id e s in s u la tio n a g a in s t c o m p e titiv e r iv a lr y b eca u se o f b ra n d lo y a lty b y c u s to m e rs a n d r e s u ltin g lo w e r s e n s itiv it y to p ric e I t a ls o in c re a s e s m a rg in s w h ic h a v o id s th e n e e d f o r a lo w c o s t p o s itio n T h e re s u ltin g c u s to m e r lo y a lt y a n d th e n eed fo r a c o m p e tito r t o o v e rc o m e u n iq u e n e s s p r o v id e e n try b a rrie rs D iíT e re n tia tio n y ie ld s h ig h e r m a rg in s w it h w h ic h to d ea l v v ith s u p p lie r p o w e r, a nd it c le a rly m itig a te s b u v e r p o w e r s in c e b u y e r la c k c o m p a ra b le a lte m a tiv e s and is th e re b y fe w e r p ric e s s e n s itiv e
F o c u s is ío c u s in g o n a p a r tic u la r b u y e r g ro u p , s e g m e n t o f th e p ro d u c t lin e , o r g e o g ra p h ic m a rk e t; as w it h d if fe r e n t ia t io n , íb c u s m a y ta k e m a n y fo rm s A lth o u g h th e lovv c o s t a n d d if fe r e n t ia t io n s tra te g ie s a re a im e d at a c h ie v in g th e ir o b je c tiv e s in d u s tr y - w id e , th e e n tire fo c u s s tra te g y is b u i l t a ro u n d s e r v in g a p a r tic u la r ta rg e t v e ry w e ll, a n d each fu n c tio n a l p o lic y is d e v e lo p e d v v ith th is in m in d T h e s tra te g y re sts o n th e p re m is e th a t th e f ĩr m is th u s a b le to se rv e its n a r r o w s tra te g ic ta rg e t m o re e f f e c t iv e ly o r e f f ic i e n t ly th a n c o m p e tito r s w h o are c o m p e tin g m o re b ro a d ly
T h e e x te m a l a n a ly s is id e n tiíĩe s o p p o r tu n itie s a nd th re a ts vvhereas th e in te m a l a n a ly s is d e fm e s th e f i r m ’ s s tre n g th s a n d w e a k n e s s e s B y u n đ e rs ta n đ in g th a t in f o r m a tio n , a f ir m ca n b e tte r le v e ra g e its s tre n g th s , c o rre c t its w e a kn e sse s, c a p ita liz e o n o p p o rtu n itie s , a n d d e te r p o t e n t ia lly th re a ts
S W O T a n a ly s is is a u s e ủ il te c h n iq u e f o r s u m m a r iz in g th e e x te m a l e n v ir o n m e n ta l ía c to rs S W O T sta n d s f o r S tre n g th s , W e a k n e s s e s , O p p o rtu n itie s a nd th re a ts T h e fr a m e w o r k w a s d e s c rib e d in 1969 b y E d m u n d p L e a m e d , c R o la n d
C h ris tia n s e n , K e n n e th A n d re v v s , a n d W i ll i a m D G u th in “Business Policy, Text and Cases
S W O T is a s im p le fr a m e w o r k f o r g e n e ra tin g s tra te g ic a lte m a tiv e s fro m a s itu a tio n a n a ly s is T h e in te m a l a n d e x te m a l e n v iro n m e n t a n a ly s is can p ro v id e a la rg e a m o u n t o f in ío r m a tio n , m u c h o f v v h ic h m a y n o t be h ig h ly re le v a n t T h e re b y ,
S W O T c o n c e n tra te s o n ly o n th e issu e s th a t p o t e n t ia lly h a v e th e m o s t im p a c t.
W h e n th e a n a ly s is has b ee n c o m p le te d , a S W O T p r o íì le ca n b e g e n e ra te d and u sed as th e b a s is o f g o a l s e ttin g , s tra te g y í b r m u la tio n , a n d im p le m e n ta tio n
In a d d itio n to id e n t ií y in g m a jo r s tre n g th s , vveaknesses, o p p o r tu n itie s and th re a ts , th e S W O T m a t r ix in c o rp o ra te s p o te n tia l s tra te g ie s f o r im p r o v in g th e c o m p a n y ’ s c o m p e titiv e p o s itio n F o r e x a m p le , th e s tre n g th s ca n be le v e ra g e d to p u rs u e o p p o r tu n itie s and to a v o id th re a ts a n d m a n a g e rs ca n be a le rte d to vveaknesses th a t m ig h t n eed to be o v e rc o m e in o rd e r to s u c c e s s íu lly p u rs u e o p p o rtu n itie s
Internal Strengths Internal Weakness £xternal Opportunities
S-0 Strategies pursue opportunities which are suitable to the company's strengths.
W -0 Strategies overcome vveaknesses to pursue opportunities
S-T Strategies identiíy ways that the firm can use its strengths to reduce its vulnerability to external threats.
W-T Strategies establish a deíensive plan to prevent the firm 's weaknesses from making it highly susceptible to external threats.
G R E A T M o d e l is a m o d e l used in a n a ly z in g s tra te g ic m a n a g e m e n t o r c o m p e titiv e s tra te g y w h ic h sta n d s f o r G a in , R is k , E x p e n s e , A c h ie v a b le a nd T im e
C r ite r ia are v v e ig h te d a c c o r d in g to t h e ir im p o rta n c e to th e c o m p a n y S tra te g ie s are m a rk c d f o r m 1 to 5 f o r e ach c r ite r io n , o f w h ic h n u m b e r 1 is th e vvorst, n u m b e r 3 is m e d iu m a n d n u m b e r 5 is th e best.
C riteria W eight Strategy 1 Strategy 2 Strategy 3 Gain
Im p le m e n tin g a s tra te g y re q u ire s th e a llo c a tio n o f ro le s a n d re s p o n s ib ilitie s f o r d if f e r e n t aspe cts o f th a t s tra te g y to d if fe r e n t m a n a g e rs w it h in th e c o m p a n y A
25 c o m p a n y ’ s o rg a n iz a tio n a l s tru c tu re m a p s o u t ro le s a nd re s p o n s ib ilitie s , a lo n g w it h r e p o r tin g re la tio n s h ip s In th is sense s tra te g y is im p le m e n te d th r o u g h s tru c tu re I f th e e x is tin g s tru c tu re o f an o rg a n iz a tio n is n o t a p p ro p ria te g iv e n th e c o m p a n y 's s tra te g y it m a y h a v e to d e s ig n a n e w s tru c tu re B e s id e s c h o o s in g a s tru c tu re , an o rg a n iz a tio n m u s t a ls o e s ta b lis h a p p ro p ria te o rg a n iz a tio n a l c o n tr o l s y s te m s I t m u s t d e c id e h o w b e s í to assess th e p e r ío rm a n c e a n d c o n tr o l th e a c tio n s o f s u b u n its T h e options range from market a n d output Controls to bureaucratic Controls a n d control th r o u g h o rg a n iz a tio n a l c u ltu r e
I f it vvants to s u cce e d , a c o m p a n y m u s t a c h ie v e a f i t a m o n g its s tra te g y , s tru c tu re , and Controls E v e n w hen you íĩnd the right strategy but it d o esn ’t fìt to its c a p a b ility it m a y ta k e n o re s u lts o n a c tio n S o th is step a ls o is o n e o f th e im p o r ta n t phases in a p p ly in g th e o ry in to o r g a n iz a tio n ’ s a c tio n
Chapter 2: Case study of Hyundai Vietnam
O v e rv ie w o f C ars m a rk e t
2.1.1 O verall m ark et grow th
V ie tn a m 's e c o n o m y is o n d e v e lo p in g T h r o u g h o u t h is t o r y , V ie tn a m w a s a m o n g a g r ic u ltu r a l c e n te rs o f th e w o r ld O v e r th e p a s t 15 y e a rs , V ie tn a m m a d e th e s h ií t f r o m a g r ic u ltu r e - b a s e d e c o n o m y to in d u s try - b a s e d e c o n o m y O v e r th a t p e r io d th e e c o n o m y has e x p e rie n c e d r a p id g ro v v th N o w a d a y s , V ie tn a m is i n th e p e r io d o f in t e g r a t in g in to w o r ld 's e c o n o m y , as a p a r t o f g lo b a liz a tio n A u t o m o t iv e in d u s tr y ha s a s ig n ií ĩc a n t p a r t in e c o n o m ic d e v e lo p m e n t
V ie t n a m ’ s a u to m o tiv e in d u s t r y is o n e o f th e y o u n g e s t in đ u s tr ie s in th e re g io n L o c a l a s s e m b lin g o f c a rs s ta rte d a t th e e n d o f th e la s t c e n tu r y a n d th e a u to m o tiv e m a r k e t h a s b e e n o p e n f o r im p o r ts o f n e w c a rs o n a la r g e r s c a le o n ly s in c e 2 0 0 3 U s e d c a rs to a c e r ta in a g e m a x im u m a re a llo w e d f o r im p o r t o n ly s in c e
2 0 0 6 H e n c e , V ie t n a n v s c a r p e n e tr a tio n is o n e o f th e lo vve st in th e w o r ld , b e h in d a ll o th e r A S E A N c o u n tr ie s as w e ll as In d ia a n d C h in a
T h e c a r m a r k e t is c h a r a c te r iz e d th r o u g h v e r y h ig h p ric e s v v h ic h d e v e lo p e d in a p h a s e w h e n th e V ie tn a m e s e g o v e m m e n t w a n te d to d e v e lo p th e lo c a l a u to m o tiv e in d u s tr y th r o u g h p r o te c tio n m e a s u re s lik e a n im p o r t lic e n s in g s c h e m e a n d h ig h c u s to m s d u tie s In a d d itio n , v a r io u s ta x e s a n d fe e s a p p lic a b le w h e n b u y in g n e w c a rs , lik e th e s p e c ia l c o n s u m p tio n ta x o f 5 0 % in c re a s e c o s t s u b s ta n tia lly
N o t w it h s t a n d in g th e lo w a v e ra g e in c o m e a n d th e v e r y h ig h c a r p ric e s , th e c a r m a r k e t is b o o m in g s in c e 2 0 0 7 , w h e n n e w re g is tr a tio n s d o u b le d B o th lo c a lly a s s e m b le d a n d im p o r te d c a rs a re in h ig h d e m a n d T h e V ie tn a m e s e g o v e m m e n t 's la te s t p la n s r e g a r d in g im p o r t lic e n s e s , t a r if f s , ta x e s a n d r e g is tr a tio n fe e s a re a m ạ ịo r f a c t o r o f u n c e r ta in ty W T O m e m b e r s h ip s w i l l e v e n tu a lly o p e n u p th e m a rk e ts a n d lo w e r t a r i f f s a n d ta x e s a n d th e V ie tn a m e s e g o v e m m e n t i n i t i a l l y s e e m e d to f u l f ĩ l l d e m a n d s e a r lie r as e x p e c te d T h e d is t r ib u t io n s tr u c tu re f o r n e w c a rs is c u r r e n tly s h iíìtin g to a m o re o rg a n iz e d fo r m w it h an a s s e m b lin g j o i n t v e n tu re in V ie tn a m w i l l o rg a n iz e d is t r ib u t io n th ro u g h the se j o i n t v e n tu re s T h is w a s m a d e p o s s ib le a fte r these íb r e ig n in v e s te d j o i n t v e n tu re s w e re g ra n te d im p o r t lic e n s e s f o r n e w cars ư n t i l to d a v , th e m a rk e t f o r m o d e ls n o t a s s e m b le d in V ie tn a m vvas d o m in a te d b y g re y im p o rte rs a n d d e a le rs T h e y w i l l h a v e a h a rd s ta n d in g in th e íu tu re a n d are e x p e c te d to ío c u s o n s p e c ia l m o d e ls th e o f f ic i a l d is tr ib u to r s a re n o t s e llin g in
V ie tn a m as w e ll as o n used cars F in a n c in g o f ca rs is ju s t d e v e lo p in g , w it h lo a n s b e in g th e p re íe rr e d m e th o d o f fm a n c in g In a m a rk e t vvith v e ry h ig h p ric e s , ca r íìn a n c in g has a h ig h p o te n tia l A lt h o u g h th e m a rk e t is g ro v v in g s tro n g ỉy , it is s t ill to o s m a ll f o r e a ch m a n u fa c tu r in g o p e ra tio n to re a c h e ffíc ie n c y T h is is o ne re a son w h y p ric e s a re s t i l l v e r y h ig h in V ie tn a m V ie tn a m is n o t used as a m a n u fa c tu rin g h u b in A S E A N o r A s ia in g e n e ra l H o v v e v e r, i t is g ro v v in g b y o v e r 2 0 % o v e r th e n e x t ye ars to 2 0 1 0 G ro v v th o f th e a íte r m a rk e t is d r iv e n b y th e g r o w th in c a r sales a nd th e a g in g o f th e s t ill v e r y y o u n g c a r T h e d is t r ib u t io n s y s te m f o r spare p a rts is ju s t fo r m in g T h e re is n o d o m in a tin g o r e v e n la rg e r in d e p e n d e n t p la y e r in a m a rk e t, vvhere q u a lity is a b ig issue f o r c u s to m e rs w h o ca n a ffo r d a n d are v v illin g to b u y a c a r at th e c u rr e n t p r ic e le v e l.
M arket Size in Asỉan Countries
Motorbike Market in 2003 (millions per year)
Automobile Market in 2003 (millions per year)
O v e r th e past 7 y e a rs V ie tn a m e c o n o m y has shovvn a g re a t a n d im p re s s iv e g ro v v th ra te A lo n g w it h th e b o o m in g o f th e m a rk e t, a u to m o b ile in d u s try has a s ig n ií ĩc a n t a c h ie v e m e n t S ta rtin g fr o m a v e r y lo w le v e l o f a d e v e lo p in g c o u n try , c a r d e m a n d in V ie tn a m is c lim b in g u p o v e r y e a rs A c c o r d in g to th e s ta tis tic s o f
V ie tn a m D e p a rtm e n t o f T r a í í ì c P o lic e ( V D T P ) , th e n u m b e r o f cars re g is te re d in th is c o u n tr y is in c re a s in g d r a m a tic a lly w it h in th e p e rio đ o f 2 0 0 0 - 2 0 0 7 , a n d b y th e e n d o f S e p te m b e r 2 0 0 7 , th e re are a ro u n d 7 2 2 ,0 0 0 ca rs in used
Figure 2.2 Number o f registered cars in Vietnam
(V ietn a m D e p a rtm e n t o fT r a ffìc P o lic e)
T h e o u tp u t o f th o s e c o m p a n ie s is q u ite lo w s in c e th e a u to m o b ile in d u s tr y o f
V ie tn a m has ju s t d e v e lo p e d f o r a d eca d e M o r e o v e r , th e to ta l o u tc o m e o f th is in d u s tr y a lw a y s ílu c tu a te s d e p e n d in g o n th e m a rk e t d e m a n d a n d a ls o g o v e m m e n t p o lic ie s T h e a v e ra g e n u m b e r o f n e w ly - r e g is te r e d ca rs in V ie tn a m is a ro u n d 6 0 ,0 0 0
29 a y e a rs H o v v e v e r, d u e to th e ra p id g r o w th ra te o f th e e c o n o m y in 2 0 0 7 a n d s tro n g im p a c t o n ta x p o lic ie s o f V ie tn a m G o v e rn m e n t, th is n u m b e r has h it th e h ig h íĩg u r e o f 9 7 ,7 9 7 , d o u b lin g th e la s t y e a r n u m b e r.
Figure 2.3 Total nevvly-registered cars in Vietnam
2X 3 2005 2CO€ 20Z7 Forecastec Forecar.ec Forecâ5tC3 rymberirt numoerin
(Source: H a ip h o n g cu sto m s o ffice )
A lo n g w it h a s ta b le p a c e , in 2 0 0 7 , so m e b ig a u to m o b ile m a n u fa c tu re rs s u c h as H o n d a a n d T o y o ta h a v e a n n o u n c e d to th e press th a t th e y w i l l set u p n e w m a n u ía c tu r in g lin e to in c re a s e th e ir p ro d u c tio n s T h is a c tio n m a y r e íle c t th e h o p e o f a h ig h e r p r o đ u c tio n in th e in d u s try a n d th e in c re a s in g d e m a n d o f th e m a rk e t.
H y u n d a i V ie tn a m w a s fo r m e d in e a r ly 2 0 0 6 a nd th e re vvere o v e r 6 0 0 0 ca rs s o ld in th e íì r s t 2 y e a r o p e ra tio n s in c e 2 0 0 6 T h e í ĩr s t p ro d u c t w a s in tro d u c e d to
V ie tn a m m a rk e t w a s suv H y u n d a i S a n ta íe a n d C o m p a n y a lw a y s t r y to d iv e r s ií y p r o d u c t lis t to b r in g as m a n y o p tio n as p o s s ib le to c u s to m e rs
H y u n d a i V ie tn a m a lw a y s a d a p t to th e d ra s tic c h a n g e s o f V ie tn a r r r s a u to in d u s tr y a n d b u ild in g a s o lid ío u n d a tio n to b e th e b e st s u p p lie r F o r su ch re a s o n s
H y u n d a i V ie tn a m has to k e e p im p r o v in g tim e b y tim e in b o th q u a litv o f s e rv ic e s a n d q u a lit y o f p ro d u c t.
B e c o m e o n e o f th e b e st re p u ta tio n b ra n d in V ie tn a m m a rk e t in n e x t 5 ye a rs
H y u n d a i V ie tn a m o ffe r s d iv e r s ií ĩe d p r o d u c ts to V ie tn a m m a rk e t: S A N T A F E ,
H y u n d a i is one o f íầ m o u s b ra n d a nd i t ’ s q u ite n e w to V ie tn a m m a rk e t b u t it has been g e ttin g b e tte r re p u ta tio n o v e r tim e a nd H y u n d a i V ie tn a m w i l l be a b ig c o m p e tito r a n d c h a lle n g e r to o th e r p la y e rs as T o y o ta , B M W , F o r d in V ie tn a m m a r k c t a n d H y u n d a i is íb c u s in g o n m e d iu m c la ss ca rs o r s m a ll c a rs a nd g o in g to ta k e p a rt in lu x u r y le v e l in n e x t fe w y e a rs
T a x e s a re d is tin g u is h e d b e tw e e n n e w c o m p le te - b u ilt- u n its ( C B U s ) and s e c o n d h a n d c a rs im p o rte d
T a x e s o n n e w v e h ic le s h a v e to be s u b je c t to 3 ty p e s o f ta x in c lu d in g : import duty, specỉal consumption tax and value added tax (VA T) ìmpori duties
A u t o m o b ile s are a m o n g g ro u p s o f g o o d s o n w h ic h h ig h im p o r t ta x is le v ie d
T h is ta x has c o n tin u o u s ly b e e n c h a n g e đ f o r th e p ast 2 y e a rs , fr o m 2 0 0 6 to 2 0 0 7 I t k e p t o n đ e c re a s in g fr o m 9 0 % to 6 0 % H o w e v e r , s in c e th e b e g in n in g o f 2 0 0 8 ,
31 im p o rt d u ty has in c re a s e d r e m a r k a b ly I t 's 8 3 % , a n in c re a s e 1 3 % a g a in s t th e p re v io u s one.
A c c o r d in g to th e M i n i s t r y o f F in a n c e , h ig h e r ta x v v ill re d u c e th e n u m b e r o f im p o rte d ca rs, th u s le sse n t r a f f ĩ c ja m h o w e v e r m a n y p e o p le sa y th a t i t ’ s a w a y to p ro te c t V ie tn a m a u to m o b ile in d u s tr y T h e f o l l o w in g ta b le s h o w s th e c h a n g e s in im p o r t ta x o n a u to m o b ile s s in c e 2 0 0 6
Figure 2.4 Im port tax ch an ges for new veh icles
(S o u rce : V ietnam M in is tr y o f F in a n c e )
T h c re a re n o w th re e le v e ls o f s p e c ia l c o n s u m p tio n ta x a p p lie d o n a u to m o b ile s d e p e n d o n th e n u m b e r o f seats in th e cars.
Figure 2.5 Special con su m p tion tax w as applied on 1/4/2009
5 S eats v e h ic le less th a n 2 0 0 0 45
6 -9 Seats v e h ic le less th a n 2 0 0 0 45
(S o u rce : V ieĩnam M in is ír ỵ o f F in a n c e )
L ik e m a n v o th e r g o o d s n e w im p o r te d c o m p le te b u ilt ca rs are s u b je c t to 1 0 %
V A T A n d b e s id e th e g iv e n ta x e s , th e r e g is tr a tio n fe e is a ls o o ne o f th e b a rrie rs o f im p o r te d ca rs O n 3 /1 2 /2 0 0 9 V A M A se nt o íT ic ia l d o c u m e n t to H a n o i P e o p l e ^
C o m m itte e to c o n s id e r r e g is tr a tio n fe e b u t it w a s u n s u c c e s s íu l H a n o i P e o p le ?s c o m m itte e d e c id e d to in c re a s e r e g is tra tio n fe e 1 0 % - 1 2 % fr o m 1 /1 /2 0 0 9
Economic Facíor a) Vìetnam Economic Growth Rate
V ie tn a m has b e e n c o n s id e re d as o n e o f th e w o r ld 's ía s te s t g ro v v in g e c o n o m ie s in re c e n t y e a rs ( in th e to p 3 0 c o u n trie s w it h h ig h e s t g ro x v th ra te s, 2 0 0 4 ) E x p e rts h a v e a s s u m e d s o m e k e y ía c to rs th a t h a v e c o n tr ib u te d to V ie tn a m ’ s ra p id g ro v v th in c lu d e :
• E c o n o m ic o p e n in g a n d r e íò r m has c re a te d fa v o ra b le e n v ir o n m e n t f o r a ll e c o n o m ic s e c to rs d o m e s tic a lly a n d f o r ío r e ig n in v e s to rs
• F D I re m itta n c e s a re a d r iv in g fo rc e f o r economic g r o w th , b r in g in g a b o u t n o t o n ly huge Capital source for production but also m odem technology and im proved
• T h e e m e r g in g p r iv a te s e c to r has b e e n g iv e n m o re p la y in g íie ld s a n d is b e c o m in g a s ig n iíìc a n t c o n t r ib u t o r to th e o v e r a ll g ro w th
• S ig n iíìc a n t g r o w th o f e x p o rts in re c e n t y e a rs , as V ie tn a m is a ữ ĩr m in g its c o m p a ra tiv e a d v a n ta g e s in so m e c e rta in p ro d u c tio n s a n d s e rv ic e s
E n te rin g 2 0 0 9 , th e c o u n t r ỳ s e c o n o m y is fa c in g a lo t o f d ií ĩic u lt ie s and c h a lle n g e s T h e w o r ld 's e v e r-m o re se vere e c o n o m ic re c e s s io n has n a ư o v v e d th e e x p o rt a n d C apital m a rk e t, a n d h a d negative e ffe c ts o n th e c o u n tr y 's s o c ia l e c o n o m y C o n ír o n te d w it h th is , th e G o v e rn m e n t a nd N A h a v e p u t fo r w a r d m a n y p o lic ie s a nd s o lu tio n s v v ith an a im to f u l f i l l th e g e n e ra l R e s o lu tio n o f th e N A ’ s 4 th
S e ssio n so V ie tn a m c a n lo o k f o r w a r d to th e b r ig h t íu tu re
(Source: G e n e ra l S ta tistic O ffice) Ọ u a rte r 1 /2 0 0 9 , w it h G D P g r o w th o f 3 1 % o n ly , e q u a lin g 4 1 % o f G D P g ro x v th in q u a rte r 1 /2 0 0 8 w a s th e q u a rte r w it h lo w e s t G D P g r o w th in re c e n t y e a rs ; b u t as e s tim a te d , G D P in q u a rte r 11/2009 g r e w b y 4 5 % , e q u a lin g 7 9 % o f q u a rte r 11/2008 and h ig h e r th a n th e ra te o f q u a rte r 1 /2 0 0 9 1.4 p o in ts p e r c e n t G e n e r a lly , th e
G D P in ls t h a l f o f 2 0 0 9 in c re a s e d b y 3 9 % c o m p a re d to sam e p e r io d in 2 0 0 8
G D P G r o w th R a te is o n e o f th e fa c to rs th a t a ffe c t to ca rs d e m a n d b) Vietnam Economic InJ1ation
I n í la t io n a ls o ta k e s im p o r ta n t p a rt in e c o n o m v V ie tn a m * s in í la t io n íĩg u re s w e re b e tw e e n a n ic e ra n g e o f l% - 3 % b e fo re 2 0 0 4 w h e n th e c o u n tr y w a s h it b y a n u m b e r o f u n e x p e c te d n a tu ra l d is a s te rs and in í la t io n w a s s h o t u p to 9 5 % b y D e c e m b e r
O b je c tiv e s
F ir s t y e a r O b je c tiv e s : H y u n d a i V ie tn a m is a im in g f o r 8 % m a r k e t s h a re o f th e
V ie tn a m m a rk e t S e c o n d y e a r O b je c tiv e s is to a im 1 3 % m a r k e t s h a re o f th e
V ie tn a m m a rk e t A n im p o r ta n t o b je c tiv e is to e s ta b lis h a w e ll- r e g a r d e d b ra n d n a m e lin k e d to a m e a n in g ủ il p o s itio n in g T h e y w i l l h a v e to in v e s t h e a v ily in m a r k e tin g to c re a te a m e m o ra b le a n d d is t in c tiv e b ra n d im a g e p r ọ ịe c t in g in n o v a tio n , q u a lit y a n d v a lu e W e a ls o m u s t m e a s u re avvareness a n d re s p o n s e so w e c a n a d ju s t o u r m a r k e tin g e ffo r ts i f n e c e ssa ry.
H y u n d a i m a r k e tin g s tra te g y is d iffe r e n tia te d m a r k e tin g T h e ir p r im a r y c o n s u m e r ta rg e t is m id d le in c o m e p ro fe s s io n a ls w h o n e e d tru e v a lu e f o r t h e ir m o n e y a n d c o m ío r ta b le rid e in c it y c o n d itio n s T h e ir s e c o n d a ry c o n s u m e rs ta rg e t is u p p e r le v e l w h o n e e d s ty le a n d speed A n d p r im a r y b u s in e s s ta r g e t is m id - s iz e d to la rg e s iz e d c o rp o r a te th a t vvant to h e lp t h e ir m a n a g e rs a n d e m p lo y e e s b y p r o v id in g th e m a c a r f o r ease o f tra n s p o rt S e c o n d a ry b u s in e s s ta r g e t is e n tre p re n e u rs a n d s m a ll b u s in e s s o w n e rs vvho w a n t to p r o v id e d is c o u n ts to m a n a g e rs b u y in g a n e w c a r E a c h o f th e f o u r m a r k e tin g s tra te g ie s c o n v e y s H y u n d a i d if f e r e n t ia t io n to th e ta rg e t m a r k e tin g s e g m e n ts id e n t iĩie d a b o v e
Table 1 Forecasts of Automobile Output up to 2020
Source: com piled Ễrom the Decision 177/2004/ỌĐ-TTG approveà the Mastei- Pìart fo r
D e\ eỉoping Vietnam 's Automobiìe Irtdustry, Oct 2004.
U s in g p r o d u c t d if fe r e n t ia t io n to m a k e H y u n d a i as th e m o s t v e rs a tile , c o n v e n ie n t, v a lu e a d d e d c a r m o d e l f o r a b o v e ta rg e t m a rk e t used T h e m a r k e tin g s tra te g y w i l l b e fo c u s e d o n p r o m o tin g th e c a r as e c o n o m ic c a r f o r th e n e x t g e n e ra tio n
Its p la n f o r lu x u r y m o d e ls m a y s lo w d u r in g c r is is tim e so H y u n d a i v v ill fo c u s on s m a ll ca rs w h ic h lo w p ric e as G e tz o r K ia H y u n d a i is a d d in g to its o ffe r in g s o f d im in u tiv e v e h ic le s to ta k e a đ v a n ta g e o f o p p o r tu n ity T h e c o m p a n y th is y e a r v v ill in tro d u c e a n e \v E la n tra w a g o n based o n a c o m p a c t c a lle d th e Ì3 0 s o ld in E u ro p e is f u l ly lo a d e d a nd w i l l b e s o ld w it h 3 y e a r v v a ư a n ty H y u n d a i's s m a ll cars are a h it in f ầ s t- g r o w in g e m e rg in g m a rk e ts in C h in a a n d In d ia , H y u n d a i's sales ro se a c o m b in e d
2 7 % , to 2 6 3 ,5 0 0 in th e íìr s t s ix m o n th s o f th is y e a r as i t has a d d e d n e w , s m a ll m o d e l (B u s in e s s W e e k c o m ) T h e c o m p a n y 's ta rg e t is to b o o s t m a rk e t sh are to m o re th a n 8
% in V ie tn a m th is y e a r
• T h e D e a le r w i l l re p re s e n t a d is t r ic t o r m a in C it y
• T h e S u b - D e a l e r s h a ll represent a p a r tic u la r area
• T h e b o o k i n g agents v v ill be in d iv id u a ls \v o r k i n g o n íre e la n c e b asis.
B y in te g r a tin g a ll m essages in v a rio u s m e d ia w e w i l l re in ío r c e th e b ra n d n a m e & m a in p o in ts o f p ro d u c t d if fe r e n t ia t io n R e s e a rc h a b o u t m e d ia c o n s u m p tio n , p a tte m w i l l h e lp o u r a d v e r tis in g a g e n c y to c h o o s e a p p ro p ria te m e d ia a n d t im in g to re a c h p ro s p e c ts b e ío re & d u r in g th e p ro d u c t in tr o d u c tio n T h e re a íìte r, a d v e rtis in g w i l l a p p e a re d o n a p u ls in g b a s is to m a in ta in b ra n d a w a re n e s s a n d c o m m u n ic a te v a rio u s d if fe r e n t ia t io n m essages T h e a g e n c y v v ills a ls o c o -o rd in a te p u b lic r e la tio n e ffo r ts to b u ild H y u n d a i b ra n d & s u p p o rt th e d if fe r e n t ia t io n m essage T o a ttra c t m a rk e t a tte n tio n & e n c o u ra g e p u r c h a s in g , w e w i l l o f f e r a lim it e d tim e , r e g is tra tio n
& in s u ra n c e T o a ttra c t, re ta in & m o tiv a te c h a n n e l p a rtn e rs f o r a p u s h s tra te g y , w e w i l l use tra d e sales p r o m o tio n s a nd p e rs o n a l s e llin g to c h a n n e l p a rtn e r.
T h e c o m p a n y p la n s to stage ro a d s h o w s , to d is p la y v e h ic le s in th e p a v ilio n s d u r in g v a r io u s c o lle g e fe s tiv a ls a n d e x h ib itio n
A d v e rtis e m e n ts to p ro m o te a n d m a rk e t o u r p ro d u c t w i l l be shovvn o n le a d in g te le v is io n c h a n n e ls M ạ ịo r m u s ic a n d s p o rts c h a n n e ls v v ill p ro m o te a n d th e y w i l l re a ch o u t to th e c u s to m e rs
R a d io is th e m e d iu m vvith th e v v id e s t c o v e ra g e S tu d ie s h a v e r e c e n tly s h o w n h ig h le v e ls o f e x p o s u re to ra d io b ro a d c a s tin g b o th w it h in u rb a n a n d ru ra l areas, vvh e th e r o r n o t lis te n e rs a c tu a lly o w n a set M a n y p e o p le lis te n to o th e r p e o p le ’s ra d io s o r h e a r th e m in p u b lic p la c e s S o ra d io a n n o u n c e m e n ts v v ill be m a đ e a nd a d v e rtis e m e n ts w i l l be a n n o u n c e d o n th e r a d io a b o u t th e p ro d u c t fe a tu re s and p ric e , q u a litie s , e tc
D a ily a d v e rtis e m e n ts in le a d in g n e w s p a p e rs and m a g a z in e s w i l l be used to p ro n io te th e p ro d u c t L e a íle ts at th e in it ia l stag e w i l l be d is tr ib u te d at r a ilw a y s ta tio n s , m a lls , c o lle g e areas a n d v a rio u s o th e r lo c a tio n s
W o rk s h o p s a n d s e m in a rs v v ill b e h e ld in c o lle g e s a n d b ig c o rp o ra te to m a k e p e o p le a w a re a b o u t th e c o m p a n ie s p a s t p e r íb rm a n c e a nd p r o d u c t fe a tu re s , its a f f o r d a b ilit y a n d usage, v a s t d is t r ib u t io n n e tw o r k R o a d s h o w s w i l l be c o n d u c te d
\v h e re fre e t r ia ls o f th e c a r w o u ld b e g iv e n
H o a r d in g s , b a n n e rs , n e o n s ig n s w i l l be d is p la y e d at c lu b s , d is c s , o u ts id e th e a tre s a n d s h o p s to p ro m o te o u r b ra n d car.
B o o k le ts v v ill b e k e p t at c a r s h o w ro o m s , r e ta il b a tte ry o u tle ts , e tc f o r th e c u s to m e r to re a đ T h e s e b o o k le ts w i l l p r o v id e in í b r m a tio n a b o u t o u r c o m p a n y ; th e
Products o ffe r e d w h ic h s u its th e c u s to m e rs n ee d a c c o r d in g ly
T e c h n o lo g y is a lw a y s u p d a te d th a t?s w h y c o m p a n y s h o u ld c a tc h u p b y send people to be trained or on-job-training I t ’ s good for Corporation i t ’ s s e lf and for c u s to m e r Service as w e ll.
E s ta b lis h a s s e m b lin g m a n u fa c tu re in V ie tn a m to g e t p r ic e re đ u c e d a n d q u ic k after sales Service
Increase Market Share in Middle Class
A c tiv itie s R esources R e s p o n s ib ilitie s T im e E v a lu a tỉo n
A c t iv it ie s S e le c tio n D ire c to r 1/9/2010
B u d g e t e s tim a tio n V N D 8 b illio n s Board o f director 1/9/2010 D e p re c ia tio n cost p aym en t
R & D Im p r o v e m e n t V N D 1 b illio n Civil & Technical m anager 1/9/2010 T e c h n ic a l
M a r k e t in g c a m p a ỉg n V N D 5 b illio n s M a rk e tin g m anager 1/9/2010 Sales
- BanneTS and neo signs V N D 500 millions
- T V A d s V N D 2 b illio n s M a rk e tin g m anager 1/9/2010 Sales
- B o o k le ts and pam phlets V N D 2 0 millions
In c r e a s e M a in te n a n c e a fte r s aỉes
V N D 100 m illio n s Sales m anager 1/7/2010 C ustom er's sa tisíactio n
R e co m m e n d atio n s to H yu nd ai V ie tn a m
A u to m o b ile s h a v e b e c o m e an in d is p e n s a b le p a rt o f o u r liv e s , an e x te n s io n o f th e h u m a n b o d y th a t p r o v id e s us ía s te r, c h e a p e r a n d m o re c o n v e n ie n t m o b ilit y e v e r y p a s s in g d a y In e m e r g in g m a rk e t, a u to m o b ile in d u s tr y c o m p e titio n is v e ry h if ih a n d w o r ld e c o n o m y h a s to s u ffe r fr o m c r is is f r o m th e e n d o f 2 0 0 7 t i l l n o w so
H v u n d a i s h o u ld c o n s id e r th e r ig h t step to g o fo r w a rd V ie tn a m m a rk e t is one o f e m e r g in g m a rk e t w it h h ig h c o m p e titio n in a u to m o b ile in d u s tr y a n d e c o n o m y is r e c o v e r in g v e r y fa s t.
H v u n d a i’ s s tra te g y s h o u ld be m o n ito r e d a n d c o n tr o lle d c a r e fu lly at th e b e g in n in g to th e e n d o f th e s tra te g y to e lim in a te w a s te a n d m a k e th in g s r ig h t E v e r y c o n c e m e d p e o p le s h o u ld j o i n to g e th e r to le a d H y u n d a i to b r ig h t íu tu r e a n d b e c o m e o n e o f th e fa v o ra b le b ra n d in V ie tn a m
H e a d q u a rte r s h o u ld b u ild a a s s e m b ỉin g m a n u fa c tu re to re d u c e th e p ric e and a f t e r sales Service to c o m p e te w it h o th e r p la y e rs w h o has a s s e m b lin g m a n u ía c tu re s h e r e in V ie tn a m
T h e th e s is p ro v id e s th e fu n d a m e n ta l b u s in e s s th e o rie s , b u s in e s s -le v e l s tra te g ie s í b r m u la tio n a n d re c o m m e n d a tio n f o r e n te rp ris e u n d e rs ta n d in g and a n a ly z in g to f m d o u t th e a p p ro p ria te s tra te g y I t a ls o h e lp s e n te rp ris e g e t m o re m a r k e t sh ares w h e n a p p ly the se th e o rie s in t o p ra c íic a l.
A u t o m o b ile in d u s tr y has b ee n g r o w in g v e r y fa s t in th e re c e n t y e a rs s in c e
V le tn a m jo in e d W T O B u t 2 0 0 8 is a h a rd y e a r a nd a ll e n te rp ris e s h a d to fa c e diíTiculties w hen crises appeared T h e collapses o f big íĩnancial Corporation m ake th e w o r ld e c o n o m y w o rs e th a n e v e r H u y n d a i V ie tn a m a ls o has to fa c e d if f í c u lt ie s w h e n sales d e c re a s e d a n d m u s t fí n d o u t s tra te g ie s to g e t th r o u g h th e h a rd tim e and b e c o m e o n e o f th e b e s t b ra n d s in V ie tn a m T h e th e s is g iv e s o v e r v ie w o f a u to m o b ile m a r k e t a n d hovv H u y n d a i V ie tn a m ta k e s th e a d v a n ta g e s o v e r o th e r c o m p e tito r s as
T o y o ta , B M W , F o r d i n V ie tn a m m a rk e t th r o u g h b u s in e s s -le v e l s tra te g ie s th e o ry
T h e re are s tra te g y í ò r m u la tio n s a n d re c o m m e n d a tio n s a t th e e n d o f th e th e s is to h e lp H u y n d a i V ie tn a m c h o o s in g th e m o s t a p p ro p ria te s tra te g y f o r c u rre n t tim e a n d f o r íủ tu re T h is s tra te g y is u sed f o r H u y n d a i V ie tn a m in V ie tn a m m a rk e t o n ly
I f o th e r e n te rp ris e w a n ts to use th is s tra te g y , th e y m u s t d o re s e a rc h m o re a n d h a ve im p le m e n ta tio n to m a tc h th e ir c a p a b ilit y w it h s tra te g y
3 H y u n d a i V ie tn a m , F in a n c ia l s ta te m e n ts
4 S ta tis tic o f t r a f f i c p o lic e d e p a rtm e n t, A n n u a l re p o rt.
5 V ie tn a m G e n e ra l S ta tis tic s O f f ic e
9 M ic h a e l P o r te r (1 9 9 8 ), “ C o m p e t it iv e s tra te g y ” , F re e P ress, N e w Y o r k
10 W h a t’ s s tra te g y ? 4ih ttp ://h o r n e a tt.n e ư ~ d is c o n /s tr a te g y _ d e fm itio n s p d f’
11 B u s in e s s -le v e l s tra te g y ? “ S tra te g ic m a n a g e m e n t an in te g ra te d a p p ro a c h b y
12 S tra te g ic m a n a g e m e n t p ro c e s s “ S tra te g ic m a n a g e m e n t an in te g ra te d a p p ro a c h b y C h a rle s W L H i l l a n d G a re th r J o n e s ”
13 S tra te g ic m a n a g e m e n t an in te g ra te d a p p ro a c h b y C h a rle s W L H i l l and
14 '■‘h ttp ://w w w w eb an d m acro s.n et” Vision deíĩnition
15 S tra te g ic m a n a g e m e n t “ C h a rle s W L H i l l a n d G a re th r Jo n e s ” v a lu e Chain m o d e l?