Biti’s PEST SWOT ANALYSIS company situation analysis binh tien HTD manufacturing co known as biti’s is a 39 years old vietnamese brand

PEST & SWOT ANALYSIS About The Company Introduction Binh Tien HTD Manufacturing Co Known as Biti’s is a 39 years old Vietnamese brand Biti’s become the most recognised, trusted by the customers and proudly to be “National brand” A Biti’s Hunter released in 2017 and instantly revised the whole company after a long time of being dominated by foreign brands The revenue keep increasing in the next years B1 B2 Biti’s Hunter Mission Constantly improving quality to provide products with the meaning of Biti's brand identity "Prestige - Quality" Company situation analysis MACRO ENVIRONMENT Demographic Economic Political - The current population 97,239,469 people, with 34% living in urban areas, mainly in the working age - The average life expectancy is 77 years - The average income is about 50 million/year - Vietnam economy has grown rapidly for the last few years - A stable political system - Average monthly wages at just approximately 5,5 million VND, most Vietnamese would be able to afford BITI’S if they deem the value worth it - The footwear industry in Vietnam has always been concerned by the government MACRO ENVIRONMENT Technology Legal - Developing special bonding technology (no acacia) that creates durability for the product - Copyright and intellectual property laws are cared and put into action - Shoe material has been researched and improved to meet high standard - Vietnam has signed many partnership agreements with other countries to create favorable conditions for exporting - Improving in production lines and input materials, printing technology and much more - Many suitable policies from the government for the shoes making industry Social - Start advocating Vietnamese brand because of patriotism and quality - Still fond of using foreign products as they are “big brand” MICRO ENVIROMENT Buyer power Threat of new entrants Competitive rivalry - Customers buy in small quantities - Customers are not price sensitive - The difference between Biti's and its competitors is clear -> Buyer power is weak - R&D expense for waterproof shoes is high - Big brands shoes are made for winter weather - > Threat is low - Biti's has no competitors in the same price segment - Big foreign brands Adidas, vans, Nike, Threat of substitution - Nano spray: need to spray the right amount and wait for -12h - Rain shoe covers: carry beside, need to wash to remove the dirt , unfashionable Supplier power - Long-term relationship with suppliers - Cost of switching suppliers is not too high -> Supplier power is weak COMPETITORS Analysis No Brand Product description Price Advantage Biti’s Shoes Adidas - Mostly from China - Durable - Well designed - Not favourable for - Good design - New technology Youth - National brand - Hype < 500 thousand VND ~ million VND 2,5 million - million VND - Trendy shoes - Domestic brands - Trendy shoes (replicate big brand) - Nationwide distribution - Good looking - Lower price network - New technology - Reputation for product quality - High quality Disadvantage - No technology - Not trending/ hype as foreign - High price - Product quality is brands - Distribution (few stores) low - The technology is low - No brand Internal resources Infrastructure structure The company invested in modern equipment lines of Taiwan and Korea Perform ISO management 01 Human resource management 02 Technological development Designer team is up to hundreds of people The R&D team is now developing new material Biti’s is well known for the speed in producing new product (only3 weeks for a new product) 7,000 skilled workers in factories and a team of young and diligent staff ; policies on training and viewed training as a practical and legitimate right of all its members 03 Purchasing 04 Biti's purchase of raw materials and supplies from other countries, especially China COMPETITIVENESS OF BITI’S Well-known Brand - Recognized, trusted by consumers - The most famous brand in the fashion industry” 2006 - Top 40 most valuable corporate brands in Vietnam - 2016 and 2017 Satisfying customers - Extensive distribution system (>4000 agents offices) - Ensuring the fastest distribution of goods - One- price policy Innovation - Continuously renews production line - Applying new technologies to produce products (I.e rubber to EVA, followed by PU and TPR) - Creative business idea - The power of emotional attachment - Influencer helps promoting products - Hype products and trends - Simple designs - easier to mix and match with outfit Customer Analysis - Consumers expect an consistency in product developing - According to research of biti’s customers, the most cared factors is durability, follow up is pricing and features - Consumer often use Omni channel to purchase - The youth pay more attention on new technology SWOT Analysis Strengths ● ● ● ● ● Most popular Vietnamese shoes brand Widely distributed High Quality The policy of "one price" across the country Modern production line system ● ● Customers care about technology + quality Living standards are increasingly enhanced Customers are more favourable in national brand ● ● ● SO Opportunities ● Weaknesses Scarcity of raw materials, most of which need to be imported One-price-selling policy: Biti's has had to accept a significant profit reduction to compensate for shipping costs to the company Lack of head investment Threats ● ● Competition of Chinese products.There are also products from Thailand, Malaysia, Japan -> Attack the psychology of Vietnamese consumers to prefer foreign goods Along with the competition of foreign products, other footwear companies such as ASIA, VINA shoes are also strong competitors of Biti's Thanks for listening ...About The Company Introduction Binh Tien HTD Manufacturing Co Known as Biti’s is a 39 years old Vietnamese brand Biti’s become the most recognised, trusted by the customers and proudly... be “National brand? ?? A Biti’s Hunter released in 2017 and instantly revised the whole company after a long time of being dominated by foreign brands The revenue keep increasing in the next years. .. million/year - Vietnam economy has grown rapidly for the last few years - A stable political system - Average monthly wages at just approximately 5,5 million VND, most Vietnamese would be able to afford