ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE REPORT FINAL EXAM 1 STRATEGIC MANAGEMENT APRIL 2022 / / 2 Table of Contents I INTRODUCTION 4 II EXTERNAL ANALYSIS 7 1 PE[.]
ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE - REPORT FINAL EXAM STRATEGIC MANAGEMENT _ APRIL 2022 / / Table of Contents I.INTRODUCTION II.EXTERNAL ANALYSIS 1.PESTLE 2.Porter’s Five Forces 12 3.The External Factor Evaluation (EFE) Matrix 15 III.INTERNAL ANALYSIS 18 1.The key internal forces 18 III.INTERGRATED ANALYSIS AND STRATEGIC DECISION 23 1.SWOT Analysis 23 2.Measure the SWOT factors 25 IV.STRATEGIES IMPLEMENTATION AND EVALUATION .27 1.Strategies implementation 27 2.Evaluation system 28 V.CONCLUSION 28 I.INTRODUCTION General introduction Transaction name: BOO TRADING JOINT STOCK COMPANY Abbreviations: BOO TRADING JSC Email: online@boo.vn Website: https://boo.vn/ Registered business address: No 19A, Dang Tran Con Street, Quoc Tu Giam Block, Đống Đa Distict, Ha Noi city, VietNam Head office: floor, TMC Tower, No 1, Luong Yen Street, Hai Ba Trung District, Ha Noi city, VietNam Phone: 1900 232313 Landline: (024)39785426 History and development BOO opened a sliding clothing and accessory store on Nam Cao Street in Hanoi in 2003 The store is decorated in a hip hop style with contemporary street and culture Mr Do Viet Anh, the company's founder, has a similar flair BOO Trading Co., Ltd was created after years (2009) Bo Sua is a brand that is no longer unfamiliar to young Vietnamese people T-shirts printed with motifs connected with memories of a time of Vietnamese subsidies, such as a bunch of morning glory, honeycomb sandals, a box of shrimp noodles, and so on, with the slogan "Local StreetWear," made a breakthrough at the time At 308 Ba Trieu, Hanoi's biggest thoroughfare, BOO established its first store, BOOCITI In order to diversify the client base, the Infamous, Be Sua, and Bazic brands were created between 2013 and 2016 If Bo Sua focuses to middle and high school students, Infamous serves to working people, Be Sua caters to young people, and Bazic serves to the populace According to international standards, all BOO brands were merged to form three primary Bo Sua lines: Bo Sua Graphic BOO successfully signed an investment collaboration agreement at the end of 2017, marking the start of a new period of sustainable development The name of the corporation was changed to "BOO Trading Joint Stock Company." Bo Sua changed its name to BOO - the brand that started the label - in 2019, for the first time after ten years of continuous development This return guarantees that the brand's original worth will be fully restored while being current in fashion and imbued with the street's liberal attitude BOO had worldwide "handshakes" during this time as well DC Comics (Batman - Superman), Larva, Disney: Star Wars, Mickey, Marvel Comics, and other worldwide brands have collaborated with Bo Sua to offer official copyrighted collections Experiencing nearly 13 years with creative fashion thinking, imbued with national identity Many Vietnamese teenagers admire Bo Sua Bo Sua today has agents and 32 outlets in 63 provinces and cities throughout Vietnam, in addition to the promotion of well-known celebrities BOO’s line of business Textile Printing: printing packaging, labels, forms manufacture of ceramic products Producing cloth masks, medical masks, gloves and medical protective clothing Design product; buying and selling all kinds of clothes; raw materials Commercial advertising, advertising Clothing and footwear retail Vocational training, market research Tiktok TikTok is a social media platform for creating, sharing and discovering short videos The app is used by young people as an outlet to express themselves through singing, dancing, comedy, and lip-syncing, and allows users to create videos and share them across a community Amateur and professional creators alike can add effects like filters, background music, and stickers to their videos, and can collaborate on content and create split-screen duet videos even if they're in different locations Fashion trends dominate TikTok’s fashion content These appear on a users’ FYP (for you page) and can feature anything from a clothing haul to styling inspiration TikTok provides an accessible platform for creators, which is why these fashion trends and the products included often go viral Whether you use TikTok or not, the global social media app has become one of the most influential platforms for the fashion industry With the hashtag #FashionTikTok trending with over 15.9 billion views, this massive community is only continuing to grow Cassandra Russell, Head of Fashion, Luxury, Beauty and Retail Brand Partnerships (EMEA) at TikTok, said: “The impact the TikTok community has made on the fashion industry this year has been incredible, from driving new fashion trends like #cottagecore, to bringing back old ones like #Y2KFashion or #upcycling TikTok has fast become a home for fashion creators, designers and stylists to find their voice, collaborate, share their unique style and create the next big fashion trend “TikTok is all about creativity and self-expression, which has huge synergies with the fashion industry As the community continues to creatively interpret trends in new ways, conventional style rules are challenged and real originality is born on the platform.” This platform attracts a big number of GenZ, including well-known and important celebrities In the first quarter of 2022, Tiktok officially passed the billion user, surpassing other big applications like as Twitter, Pinterest, and Tumblr, among others Tiktok has surpassed Instagram as the most popular video and image sharing app It's not difficult to see how Tiktok is having an expanding impact on the fashion sector II.EXTERNAL ANALYSIS 1.PESTLE Political Forces: About political institutions: Vietnam is now a socialist country The political system is based on the following principles: the Communist Party of Vietnam leads, the State administers, and the people own it through the National Assembly of Vietnam, which is the competent authoritative force The political climate is stable, and the legal system is improving, resulting in favorable economic conditions About economic development policy: Our country is industrialization and modernization, creating all favorable conditions for the system of preferential tax policies to encourage the development of enterprises Every year, the state spends quite a lot of budgets on building infrastructure, bridges, roads, and ancillary works that indirectly affect economic activities In addition, our country has exchange relations with many countries, creating favorable conditions for our exports around the world and looking for partners to develop foreign markets Economic: The covid-19 pandemic has had a huge impact on Vietnam's economy The impact of the epidemic reduced fashion market revenue by more than 10% in 2020 compared to 2019 In which apparel accounts for more than half of the industry's entire revenue When people began to shop online, communication channels and online shopping grew dramatically Lazada generates over half of all online fashion retail channel revenue, followed by Sendo, Facebook, Tiki About income: Out of which, the country’s per capita earnings were 2.786 dollars About exchange rate: In recent years, foreign currency exchange rate has increased volatility For fashion companies, the increase in exchange rate has a strong influence on business results because Transportation prices are three times greater than the five-year norm The covid 19 pandemic, on the other hand, has raised consumer demand for masks and medical protective gear, which is considered as a symbol of the textile industry's endurance amid the crisis About growth rate: Vietnam's economic growth rate directly and strongly affects the growth rate of business lines In recent years, according to the General Statistics Office of Vietnam, Vietnam's economy has experienced rapid growth The country's economic development rate in 2018 reached 7.08%, the highest in the past 10 years, decreased slightly to 7.02% in 2019 and in 2020 reached an estimated economic growth rate of 2.9% But is one of the few countries in the world with positive economic growth due to the impact of the COVID-19 pandemic Many countries, including Vietnam, are suffering from the effects of the current COVID-19 pandemic It is critical to restore and stabilize the Vietnamese people's demand for goods Socio-cultural: Vietnam is a country with a young population that uses the Internet at a high rate People in Vietnam are quick to adapt to online buying Data shows that by the first half of 2021, Vietnam would have added more than million new online consumers, with 55 percent of them coming from rural areas The present generation of genZ, in particular, is concerned with ecologically responsible fashion products and a strong sense of national pride They have a higher need than earlier generations to demonstrate their personal identity As a result, "Local Brand" was formed with the mission of ensuring that Vietnamese people use Vietnamese products at reasonable costs, that they can be purchased directly, and that they are appropriate for students' economic levels - students should be the keyword at this time "Vietnamese streetwear brand" and "Vietnamese local brand" are important to Gen Z Technological: TikTok has created a set of very distinct and diverse features and tools that are not available on other platforms Unlike other social networking and e9 commerce platforms, which require time to evaluate user behavior, the user's personality is used to select the audience that will receive content whenever the user adds new content Tiktok's algorithm works in the opposite direction; they test-distribute content to a small number of users to check, and they're ready to immediately expand the distributed audience once the tested episodes confirm a good signal This is especially important for new sellers; before the possibility to disseminate content, all businesses will be treated the same, regardless of whether they are new or old, have few or many followers All that is required is for everyone to concentrate on producing high-quality material, and chances will appear practically immediately On the other hand, "bad" evaluations from other people or brands that try to drown their products can still pose a threat to brands TikTok has approximately 13 million monthly active users in Vietnam, according to the statistics website Q&Me In Southeast Asia, Vietnam has the most Tiktok users According to estimates, 13 million Vietnamese people will use the internet by the end of March 2020 Students, aged 12 to 24, make up the majority of the age group Each user uses TikTok for an average of 28 minutes every day The rise of this social network has given birth to a new generation of influencers in which designers are finding a certain appeal to their authentic content compared to many other social networks TikTok has proven to bring the fashion industry closer to the millennials and Gen Z’s of our time, which surprisingly has grown a number of high fashion brands sales – leading labels to understand that the fasted way to reach their potential consumer is through TikTok stars Environmental: Local Brands is nearly usually a fast fashion market, allowing new brands to expand quickly and profitably However, the negative effects on the environment are proportional to that development, and we urgently need efficient and timely solutions to address them These firms provide buyers the ability to keep up with the newest fashion trends at a fraction of the cost by releasing collections on a quarterly or monthly basis The fast-fashion market has an impact on the fashion industry and helps it 10 Products from China with a dense appearance on Tiktok by reviewers, even more than Vietnamese brands Sleek design, good quality comes with a much cheaper price than Bo Sua A T-shirt of Bo Sua currently costs an average of about 350,000 VND, but you can easily buy a domestic T-shirt from China with similar design and quality, for about 120,000 to 150,000 VND Unique source, good quality, good design and affordable price is the reason why Chinese clothes always attract young customers The fashion products here such as clothes, shoes, bags always have beautiful designs, the product models are constantly updated with trends, suitable for consumer tastes and account for the majority of the products goods are consumed in Vietnam Chinese goods are always known for their extremely cheap prices, so it is easier to business than high-priced genuine high-end products Because of the low price, the quality is not inferior, so now on the market, most of the items on sale are of Chinese origin Not only that, importing Chinese goods is also relatively easy due to the close geographical distance and cultural similarities, so the delivery time is also fast, so it is always guaranteed regular volume to serve customers Direct competitors: BOBUI BOBUI is a Vietnamese fashion brand and clothes maker started in July 2014 by Nguyen Thanh Dung in Saigon BOBUI is focused on casual fashion as well as hip-hop, rock, street, and youth culture styles in general With a commitment to self-respect and the preservation of national cultural traditions BOBUI recognizes the need to alter and raise understanding about product quality and design so that the young generation in particular, as well as Vietnamese people in general, may confidently use products made by Vietnamese BOBUI's way of operation is more online than Bo Sua's, despite having similar client files and a similar fashion style If Bo Sua has a nationwide chain of stores, a newly activated TikTok account, advertises her items on Tiktok through Kol, or receives reviews from reviewers, she may have a new active TikTok account Then there are just two BOBUI stores in Hanoi and Ho Chi Minh City, which are the two largest cities in Vietnam Ho Chi Minh is the 14 Vietnamese president They do, however, have separate Tiktok accounts for their businesses This allows businesses to advertise their items more simply and reach a larger number of potential buyers because BOBUI can easily promote a trending product without having to spend a lot of money to market the goods through a Kol 3.The External Factor Evaluation (EFE) Matrix Key External Factors Weight Rating Weighted Score Opportunities Population of Vietnam is over 98 million 0.01 0.04 0.06 0.18 0.07 0.28 0.03 0.09 0.08 0.24 people, thuộc loại dân số trẻ→ Provided a potential market Vietnam is a country with a young population that uses the Internet at a high rate People in Vietnam quickly adapt to online buying TikTok becomes a tool for fashion brands to reach consumers A series of supporting policies from the government: Prioritizing Vietnamese people to consume Vietnamese goods; High taxes on imported clothing (Import Tax 20%, VAT 10%) 68.17 million people are using the Internet in Vietnam in 2021 (70.3% of the population) through various platforms and applications 15 Local brands have the advantage of 0.03 0.06 0.04 0.12 0.04 0.12 0.05 0.15 0.07 0.28 understanding the market, the demands of Vietnamese people, and the physicality of Vietnamese people Long-standing businesses earn the hearts of Vietnamese consumers The per capita income per month of the country increased by an average of 8.2% The current generation of genZ, in particular, is focused on ecologically responsible fashion products and a strong sense of national pride They have a greater desire to exhibit their individuality than past generations did TikTok is a simple to use social media application 10 The fast fashion industry caters to consumer preferences and keeps up with current trends Threats Facing the problem of fashion waste 0.02 0.04 Raw material prices soar due to supply 0.06 0.12 0.05 0.2 disruptions, the price rate changes to be fluctuated as exchange There are essentially no barriers to market entry, therefore there are a lot of new prospective brands to contend with (WAAT, N7 Offical, Clownz, ) 16 In the domestic market, compete with 0.01 0.03 0.06 0.12 0.02 0.09 0.01 0.02 0.03 0.09 0.02 0.08 0,24 0,96 foreign brands Substitute products with similar styles and quality are available from China at inexpensive rates Increased labor costs: The annual regional minimum wage adjustment is 7.4% The rising price of fuel → Expensive cost of transportation Finding a dependable supplier with extensive expertise, production capacity, warranty, faulty goods handling, and customer service is difficult As a result, choosing the same manufacturer over a different brand is simple The Bo Sua’s design is often overlooked in favor of hip-hop and streetwear designs, resulting in low brand awareness 10 When faced with "negative" reviews, it is not accurate to drown the brand Total 1.00 3.31 From SABECO's EFE matrix analysis, it is found that the adaptability of enterprises to external opportunities and threats is 3.31 (goodpoint) Bo Sua has prepared quite well, responding promptly to opportunities and threats from the external environment Factor 10 is the opportunistic elements that have the biggest influence on the commercial activities of organizations 17 III.INTERNAL ANALYSIS 1.The key internal forces Marketing development: Bo Sua is now active on two major social networking platforms, Facebook and Instagram, where she has a combined following of 838,000 and 88,500 people The brand's TikTok account hasn't put much effort into content, focusing largely on product reviews and styling recommendations Furthermore, BOO's website has been meticulously invested, has an eyecatching layout, gives complete information about items and brand history, and allows users to make simple financial transactions In addition, BOO also promotes buying and selling services at online shopping channels such as shopee, lazada, sendo, etc With a consistent amount of visits, Bo Sua's products are consistently among the top 10 the item with the most monthly purchases They also created many campaigns to promote the new collection in many interesting ways, such as: Sharing dressing tips, using Kol to promote, and communicating "by being kind", can tell to some trends that Bo Sua has created such as: Green Bo Sua- DIY shirt with 199k, Wear like U23, Bo Sua strongly hit the way of visual marketing, their image has been associated with T-shirts printed with images of bread and conical hats, imbued with national identity Along with the use of celebrities to promote products, BOO prioritizes collaboration with celebrities who have an influence on young people, such as the Vietnam U23 team, Chau Bui, or young idols such as Cuong seven, Giang, Chipu, unique design, pure Vietnamese creativity, and always tries to work toward the issue that genZ is extremely concerned with: environmental protection Finance function: Bo Sua began as a modest shop run by an individual, with limited financial resources They have earned customers' trust and secured a strong position for the company after ten years of operating with the idea that product quality comes first As a result, BOO's primary sources of revenue are product sales and uniform design for businesses, schools, and other organizations 18 Human Resources: In all facets of a company related to fashion, HR is an important function Fashion design is a competitive field, which is why in the fashion industry it is so important to have excellent human resources Critical lapses in HR can lead to the loss of key personnel And the better the employee, the more danger there is of transferability between companies As a fashion brand mainly targeting young people with a marketing strategy covering social networks, it is understandable that BOO owns a team of young energetic employees with creative minds So it's easy to understand why they won the hearts of young Vietnamese people because they have the same "frequency" between Bo Sua's designs and customers It's simple to comprehend why a fashion retailer's turnover is higher when they apply successful selling methods Bo Sua employs a fast fashion model, which provides designer tables with the most up-to-date fashion trends This technique enables items to be delivered quickly from the designer's table to the showroom floor Bo Sua's workforce is responsive, quick-thinking, and productive under pressure in order to this Bo Sua's products are one of the few indigenous brands with quality and design ratings With the recent expansion of client files to include working individuals, Bo Sua focuses not only on design but also on quality in order to attract new customers and keep existing ones So BOO's customer service policy is also quite strong in terms of product returns If there is a technical mistake or incorrect delivery, they can return the product to any Bo Sua branch within 15 days of receiving it Bo Sua is regarded a veteran in the local brand market, with ten years of expertise importing raw materials, producing, marketing, and selling products BOO's employees are capable of doing all of the essential labor on their own, including developing, selling, and even modeling for the brand's items Operation & Cultural Environmental: 1) Operation 19 External environment: BOO creates goods with the guiding principle of "always putting the client first." However, domestic clients are always the primary customers of local brands Customers' demands and pressures are prioritized by brands, and the more local businesses that are born, the more power customers have because they have numerous options Political stability helps to establish a positive business climate The willingness of the Vietnamese government to accommodate reasonable societal demands will instill confidence and attract both domestic and foreign investment Internal environment: Employees are not required to wear a unique uniform or have natural hair color as part of the BOO company culture They allow people to express themselves freely and awaken each person's creative potential From 2014 to the present, BOO's financial resources have remained solid, and the company has consistently ranked among the top local brands with the largest revenue 2) Cultural Environmental Vietnamese people have traditionally valued using Vietnamese items, which has nearly been ingrained in each generation's subconscious This is seen as a significant benefit for local brands such as Bo Sua, who always transmit a highly "Vietnamese" message on the product, which corresponds to contemporary consumer trends use The holidays have always been highly valued in the Vietnamese consumer's lifestyle and customs During these times, BOO frequently runs advertisements or offers product discounts Bo Sua is Vietnam's first local brand, as well as the first local to be eligible and reputed to shake hands with many large brands such as Marvel, DC Comics, Disney, and others, which no other brand has been able to thus far Community-Centered Approach: Taking the interest of communities at heart is an effective way to build a sustainable business Bo Sua participates in environmental protection activities such as turning off the lights and turning on ideas, opening green fashion campaigns 20 .. .STRATEGIC MANAGEMENT _ APRIL 2022 / / Table of Contents I.INTRODUCTION II.EXTERNAL ANALYSIS... III.INTERNAL ANALYSIS 18 1.The key internal forces 18 III.INTERGRATED ANALYSIS AND STRATEGIC DECISION 23 1.SWOT Analysis 23 2.Measure the SWOT factors 25 IV.STRATEGIES