Topic analysis of vinamilks competitive position and international business strategy in the italian market

Group IB1401 IBS301m International Finance (IBF301) Group4.IB1401.IBS301m.GroupProject INTERNATIONAL BUSINESS STRATEGY TOPIC: Analysis of Vinamilk's competitive position and international business strategy in the Italian market Subject code IBS301m Group members and ID Nguyen Minh Nhat – CS140222 Nguyen Thanh Hue – CS140488 Nguyen Huu Doan Nhung - CS140461 Ho Ngoc Tran – CS140255 Le Nhat Thien Thy – CS140513 Can Tho, 06/11/2021 0 Group4.IB1401.IBS301m.GroupProject TABLE OF CONTENT LIST OF ACRONYMS LIST OF FIGURES LIST OF TABLES ABSTRACT CHAPTER 1: OVERVIEW OF VIETNAM DAIRY JOINT STOCK COMPANY (VINAMILK) 1.1 General information of VNM 1.2 History of Vinamilk Company 1.3 Main areas of business activities 1.4 Vinamilk current internationalization strategy and scope CHAPTER 2: TOOL APPLICATION 2.1 Analysis of dynamic strategy 2.2 Analysis of international business strategy of VNM 2.2.1 Patterns of Internationalization 2.2.2 Analysis of international business strategy of Vietnam Dairy Products Joint Stock Company (Vinamilk) in the Italian market 2.2.2.1 SWOT Analysis 2.2.2.2 PESTL Analysis 2.2.2.3 Porter's Five Forces Analysis 2.2.3 Strategic objectives when Vinamilk enters the Italian market 2.2.3.1 Market penetration method 2.2.3.2 Content of strategy implementation 2.2.3.3 Business partner information 2.2.3.4 Product development 2.3 Analysis of stakeholder strategy 2.4 Analysis of diversification strategy CHAPTER 3: SYNTHESIS OF FINDINGS CHAPTER 4: CONCLUSION CHAPTER 5: ADDENDDUM OF EXHIBITS AND CITATIONS 0 Group4.IB1401.IBS301m.GroupProject LIST OF ACRONYMS VNM: Vinamilk ASEAN: The Association of Southeast Asian Nations CLC: Competitive Life Cycle BC: British Columbia UHT: Ultra- High Temperature WTO: World Trade Organization VAT: Value Added Tax EU: European Community GDP: Gross Domestic Product HS: Harmonized System IA: Industry Attractiveness BUCA: Business Unit Competitive Advantage NGO: Non-governmental organization COO: Country of origin 0 Group4.IB1401.IBS301m.GroupProject LIST OF FIGURES Figure1: CLC S-curve Figure 2: Competitive Life Cycle Chart Figure 3: CLC phases table Figure 4: Patterns of Internationalization Figure 5: EU dairy tariff Figure 6: Ansoff Matrix Figure 7: McKinsey Diversification Matrices 0 Group4.IB1401.IBS301m.GroupProject LIST OF TABLES Table SWOT Analysis of Vinamilk Company Table Nutritional information per 100ml Table List of some major suppliers of Vinamilk 0 Group4.IB1401.IBS301m.GroupProject ABSTRACT The report "International business strategy of Vietnam Dairy Products Joint Stock Company (Vinamilk)" in which the market scope is Italy With the goal of systematizing the theoretical basis of international business and business strategy in the international market of enterprises, analyzing the competitive position and international business strategy of Vinamilk in Italy, from which assessment of achievements and limitations in the implementation of the enterprise's strategy, in addition to proposing solutions to perfect the development strategy for Vinamilk in the Italian market in the future CHAPTER 1: OVERVIEW OF VIETNAM DAIRY JOINT STOCK COMPANY (VINAMILK) GENERAL INFORMATION OF VINAMILK Vietnam Dairy Products Joint Stock Company (VNM) (stock code VNM listed on HOSE), formerly known as Southern Coffee and Milk Company, was established in 1976 The company mainly operates in the field of processing, manufacturing, trading, importing and exporting dairy products and other nutritional products Vinamilk, officially operated under the model of a joint stock company since 2003, is the largest dairy company in Vietnam with a market share of more than 50% in the dairy industry in Vietnam The company has developed a nationwide distribution system with 202 distributors covering nearly 251,000 retail points Currently, there are over 3,250 supermarkets and convenience stores nationwide selling VNM products VNM's products are directly exported to 35 countries around the world HISTORY OF VINAMILK COMPANY • Vinamilk was established on August 20, 1976 on the basis of three dairy factories from the old regime: ➢ Thong Nhat Dairy Factory (formerly known as Foremost factory) ➢ Truong Tho Dairy Factory (formerly known as Cosuvina factory) ➢ Dielac Powdered Milk Factory (formerly known as Nestl攃Ā factory (Swiss) • In the 2000s, Vinamilk applied new technology, installed advanced equipment and modern machines to all of its factories Besides, Vinamilk also established Public 0 Group4.IB1401.IBS301m.GroupProject Health Nutrition Consultant Centers in the country and launched over 30 new products • In 2012, Vinamilk inaugurated Danang Dairy Factory, Lamson Dairy Factory, Vietnam Beverages Factory with modern production lines originating from the US, Denmark, Germany, Italy and the Netherlands • Around 2015, Vinamilk officially launched its brand in Myanmar, Thailand, and expanded operations in ASEAN • In 2017, Vinamilk launched the first 100% A2 Fresh milk product in Vietnam With the investment of importing nearly 200 "cows" of pure A2 milk from New Zealand MAIN AREAS OF BUSINESS ACTIVITIES • Producing and trading in canned milk, milk set, nutritional powder, cake, fresh milk, soy milk, beverage and other dairy products • Trading in food technology, equipment and spare parts, supplies, chemicals and raw materials • House business, real estate leasing brokerage, warehouse and yard business, freight transport business by car, loading and unloading goods • Production and sale of alcohol, beer, beverages, processed foods, tea, coffee roasted - ground - filter – instant VINAMILK CURRENT INTERNATIONALIZATION STRATEGY AND SCOPE Vinamilk also actively invests in business activities, international marketing, research and development, expanding the scope of production investment and operating branches abroad Vinamilk has invested 22.8% stake in Miraka factory (New Zealand), invested 70% stake in Driftwood factory (USA), held 51% stake in Angkor Milk factory in Cambodia, opened a new factory in Vietnam subsidiary in Poland as the gateway to trade Vinamilk's commercial activities in Europe Vinamilk's products have been present in more than 42 countries around the world and are continuing to seek and expand markets to Europe, Africa, and South America On average, Vinamilk exports nearly US $200 million annually to foreign countries 0 Group4.IB1401.IBS301m.GroupProject After equitization, Vinamilk has risen to the Top 100 most valuable companies in Southeast Asia, Top 300 enterprises in Asia, Top 50 best listed companies in Vietnam and set its development strategy to become one of the most valuable companies in the world 50 largest dairy enterprises in the world with sales of billion USD in the coming years CHAPTER 2: TOOL APPLICATION 2.1 ANALYSIS OF DYNAMIC STRATEGY Figure CLC S-curve Figure Competitive Life Cycle Chart The CLC describes phases which are mature, emergent, and growth Each phase begins and ends whenever annealing, shakeout, and disruption appear In the dairy products industry, new innovation changes such as in certificated products organic fresh milk, 100% A2 fresh milk from pure A2 cows, ice cream introduction, processed cheese… Overall we 0 Group4.IB1401.IBS301m.GroupProject call it the changes in the technology that allows new breakthroughs in every industry that has ever existed Since Vinamilk was first established in 1976, the company brand has been through changes, new technologies which describe its cycle that include the phases and timing To enter the Italian dairy market, the first step is to bring the Vinamilk milk taste to Italian milk consumers The brand needs to address the factors in the CLC: • Annealing: The emergent phase ends as customer adoption accelerates and the product concept solidifies around a core set of design features In many cases, what emerges is a