(Tiểu luận) fujiwa vietnam company

Image of an automatic line with advanced Japanese alkaline ion electrolysis technology Source: Fujiwa’s company websiteStage 2: Electrolysis of water on an Alkaline electrolytic ion sepa

HO CHI MINH CITY UNIVERSITY OF ECONOMICS AND FINANCEFACULTY OF ECONOMICS

MIDTERM REPORT

OPERATIONS MANAGEMENT MGT1127E – A03E

Lecturer: Tran Hoang Nam

% contribution to the overall

TABLE OF CONTENTS

I INTRODUCTION FUJIWA 1

1 FUJIWA VIETNAM COMPANY 1

1.1 FORMATION AND DEVELOPMENT 1

1.2 PRODUCTS 2

II REPORT QUESTIONS 2

1 DESCRIBE THE OPERATIONS MANAGEMENT OF THE COMPANY, INCLUDING INPUT, TRANSFORMATION PROCESS, AND OUTPUT 2

2 IDENTIFY THE COMPANY’S COMPETITIVE STRENGTHS, THEN USE PORTER’S 5 COMPETITIVE FORCES MODEL TO FULLY UNDERSTAND THE COMPETITIVE ENVIRONMENT OF THIS PRODUCT MARKET 7

3 LIST THE PRODUCT DESIGNS THAT THE COMPANY IS SELLING ACCORDING TO YOUR GROUP, WHICH PRODUCT DESIGN IS MOST INNOVATIVE AND BRINGS THE HIGHEST EFFICIENCY? EXPLAIN YOUR CHOICE 12

3.1 The product is innovative and brings many benefits to Fujiwa 14

3.2 The product is manufactured using advanced technology 14

4 AMONG 9 DIMENSIONS OF QUALITY, CHOOSE 5 DIMENSIONS AND ANALYZE THESE DIMENSIONS TO 1 OF THESE COMPANY'S PRODUCTS 16

4.1 Performance 16

4.2 Aesthetics 16

4.3 Features 16

FIGURE LIST

Figure 1 1 This is a picture of Fujiwa's factory 1

Figure 1 2 Products of Fujiwa Viet Nam 2

Figure 2 1 Alkaline Ionized Water production process 2

Figure 2 2 Fujiwa premium Alkaline Ionized Water Production Process 3

Figure 2 3 Image of an automatic line with advanced Japanese alkaline ion electrolysis technology 4

Figure 2 4 Image of an automatic line with advanced Japanese alkaline ion electrolysis technology (1) 5

Figure 2 5 Image of an automatic line with advanced Japanese alkaline ion electrolysis technology (2) 6

Figure 2 6 Image of an automatic line with advanced Japanese alkaline ion electrolysis technology (3) 6

Figure 2 7 Food safety policy at Fujiwa Co., Ltd Displayed 9

Figure 2 8 Employees, customers, and partners are equipped with food safety standards when visiting and working at the factory 9

Figure 2 9 Warehouse at Fujiwa Co., Ltd 10

Figure 2 10 Functional water market 11

Figure 2 11 Market share of drinking water in Vietnam market 12

Figure 2 12 Bảng giá sản phẩm của nước Fujiwa 13

Figure 2 13 Bảng so sánh Fujiwa Premium Alkaline và Life’s ION water 13

1 FUJIWA VIETNAM COMPANY1.1 FORMATION AND DEVELOPMENT

Figure 1 1 This is a picture of Fujiwa's factory (Source: Fujiwa’s company website)

Fujiwa is the target product of Fujiwa Vietnam Fujiwa was established in 2018 with an investment of 300 billion VND Fujiwa subsidized the investment for the manufacturing line to ensure the quality of the product by importing European product line standard and alkaline ionized technology from Japan It aims at producing and providing high-quality ionized drinks for immense communities Not only introduced to the Vietnam beverage market in 2018, but Fujiwa has also been exported to various countries such as Cambodia, Singapore, and gained a stable number of customers in Australia According to Vietnam’s Trade Office, health drinks have been a tendency in Australia It is also the culprit, which led to around 160.000 bottles of Fujiwa alkaline ionized water sold out in Australia (Fujiwa, n.d.) The company takes pride in its manufacturing product line, which is fully automatic technology imported from Japan Moreover, Fujiwa has a clear mission in developing and enhancing the sustainability of many platforms in the company,for instance, revenue, product quality, workforce, and brand value This commitment motivatesthe company to become a crucial part of every customer's life (Fujiwa, n.d.).

Figure 1 2 Products of Fujiwa Viet Nam

II REPORT QUESTIONS

1 DESCRIBE THE OPERATIONS MANAGEMENT OF THE COMPANY, INCLUDING INPUT, TRANSFORMATIONPROCESS, AND OUTPUT

Fujiwa alkaline ionized water production process

Alkaline Ionized Water, the products that makes up Fujiwa brand We will learn the process of creating products

Figure 2 1 Alkaline Ionized Water production process (Source: Self-designed by students)

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Figure 2 2 Fujiwa premium Alkaline Ionized Water Production Process (Source: Fujiwa field trip_Date 23_09_2023)

Stage 1: Clean the source of the input water.

The factory is located above a groundwater raw material area at a depth of more than 200 metres Then, groundwater sources with depths more than 200 meters are routed through the deaeration tower The water is cleaned of hazardous gases and extra oxygen is added to the water To eliminate pollutants, the water is subsequently passed via the intermediate sedimentation tank system.

Following that, the water is sent via the water filtration and softening treatment system Water is softened here, eliminating heavy elements like iron and manganese Simultaneously, the concentration of particular minerals is lowered to a safe level for the body, as part of the alkaline ionized water production process.

Figure 2 3 Image of an automatic line with advanced Japanese alkaline ion electrolysis technology (Source: Fujiwa’s company website)

Stage 2: Electrolysis of water on an Alkaline electrolytic ion separator (Japanese technology)

After filtering and softening the water, it is passed through a water electrolysis device: the most modern high-capacity electrolysis Alkaline machine available today to create Alkaline Ionized Water with specific properties, raising the pH of the water to 9.0 - 9.5, naturally alkaline This is also a production process on an automatic line with advanced Japanese alkaline ion electrolysis technology.

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Simultaneously, water passing through the electrolysis machine will break the water molecules into microscopic ones (0.5 nanometers in size, 5 times smaller than typical water molecules) and contain a high concentration of active hydrogen (hydrogen).

After manufacturing Alkaline Ionized Water, Fujiwa goes through a few more procedures to generate the completed product, including microbial filtration > UV disinfection > second microbial filtration to remove any leftover germs in the water During electrolysis, water molecules will be dispersed and recombined into clusters of small water molecules The water molecules of the product measure 0.5 nanometres, five times smaller than normal water molecules, which helps absorption in the body Finally, the finished product is Fujiwa Alkaline Ionized Water.

Figure 2 4 Image of an automatic line with advanced Japanese alkaline ion electrolysis technology (1)

Figure 2 5 Image of an automatic line with advanced Japanese alkaline ion electrolysis technology (2)

Figure 2 6 Image of an automatic line with advanced Japanese alkaline ion electrolysis technology (3) 6

(Source: Fujiwa’s company website)

To sum up, Fujiwa premium Alkaline Ionized Water rich in hydrogen with pH 9.0+ is naturally alkaline such as green vegetables, and has numerous applications such as mineral supplementation in ionic form, rapid absorption, compensating for dehydration, and helping digestion (anti-reflux), stomach, neutralizes excess acid in the body, anti-oxidant, beneficial to one's health.

Because of its high hydrogen content, Fujiwa Alkaline Ionized Water stimulates the digestive system, relieves intestinal illnesses, and promotes anti-oxidation and the prevention of free radicals.

2 IDENTIFY THE COMPANY’S COMPETITIVE STRENGTHS, THEN USE PORTER’S 5 COMPETITIVE FORCESMODEL TO FULLY UNDERSTAND THE COMPETITIVE ENVIRONMENT OF THIS PRODUCT MARKET.

Currently, there are about 20–30 types of alkaline ionized water, and one of the biggest direct competitors is I-on Life, which not only offers products at lower prices but also has a good delivery network and many distributors, but Fujiwa still has its own unique strengths:

The company’s competitive strengths:

Modern production product chain, using the latest Japanese electric sorting machines provided by Superaqua Ionized drinking water offers many health benefits, including aiding digestion, slowing the aging process, neutralizing acids, moisturizing, and providing a variety of minerals.

Fujiwa is the first company in Vietnam to receive the HANE Green Dragon label recognized by the Ho Chi Minh City Association for the Protection of Nature and Environment.

Deaeration system for water source before entering the tank

Microbial filtration system removes harmful microorganisms that some brands do not have (in addition to UV sterilization equipment)

The shell and bottle are made of high-quality materials that prevent scratches and reverse contamination into water

In addition, there are three main strengths affirmed by the Deputy Director of Fujiwa Co., Ltd.

Water source to create: taken from Cu Chi, with a depth of about 200m, considered a clean, pure, cool water source because the water source was tested by experts in Japan before technology transfer.

The production process is absolute, with technology completely provided by Japan.

Location: Built in Cu Chi, surrounded by forests and unpolluted agricultural land, completely different from its biggest direct competitor, I-on Life, which has a factory in an industrial park (people in Japan never place water plants in industrial zones because of pollution).

Below is an analysis of Porter's five competitive forces model for Fujiwa, an alkaline ionized drinking water brand in Vietnam:

2.1 Current competitors

The alkaline ionized drinking water market in Vietnam is growing, with the appearance of many new brands such as Panasonic, Ion Life, Enagic, The entry of new competitors will increase the level of competition in the industry, forcing businesses to work harder to maintain market share and profits.

In this context, Fujiwa faces stiff competition from current competitors, including:

Panasonic is a famous Japanese brand of alkaline ionized drinking water that has been present in Vietnam for a long time.

Ion Life is a Vietnamese alkaline ionized drinking water brand established in 2017 Enagic is a Japanese brand of alkaline ionized drinking water, founded in 1955 Fujiwa's current competitors all have their own advantages, including: Panasonic has a strong brand, known by many consumers Ion Life: competitive price, suitable for many customers Enagic has advanced technology, bringing many health benefits.

Fujiwa also has a very notable strength: they are granted a "Food Safety Policy" and implement very strict food safety procedures for machinery, employees, and customers Partners who visit the factory are equipped with very standard food safety regulations with the criteria of FOOD SAFETY POLICY, with the principle that "Product quality is the most important factor, then the quality of food safety The product is the "core nucleus" of the food product.

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Figure 2 7 Food safety policy at Fujiwa Co., Ltd Displayed (Source: Captured by students)

Figure 2 8 Employees, customers, and partners are equipped with food safety standards when visiting and working at the factory.

(Source: Captured by students)

In addition, Fujiwa currently has a significant number of potential customers to develop its products compared to other competitors The proof is that inventory is always distributed to retailers nationwide.

Figure 2 9 Warehouse at Fujiwa Co., Ltd

2.2 Potential competitors

Vietnam is a potential market with a young population and increasing income These are favorable factors for foreign alkaline-ionized drinking water businesses to enter the market The entry of foreign competitors will create more competitive pressure for domestic businesses.

Some of Fujiwa's potential competitors include:

Kangen Water is a Japanese brand of alkaline ionized drinking water, founded in 1974 Aveeno is an American brand of alkaline ionized drinking water, founded in 1945 Vitamin Water is an American sports drink brand founded in 1998.

These potential competitors all have strong potential, which could pose a big challenge for Fujiwa in the future.

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The alkaline ionized drinking water production industry does not require many special materials and equipment Raw material and equipment suppliers often have a wide selection of customers, giving them a strong bargaining position with businesses in the industry.

In this context, Fujiwa faces pressure from suppliers, forcing the company to negotiate to get the best price and quality of raw materials.

2.4 The power of customers

Customers of alkaline ionized drinking water are people with high needs for health and quality of life They are often willing to pay more for healthy products This gives customers a high bargaining position with businesses in the industry.

The alkaline ionized drinking water market is growing rapidly, with global sales expected to reach $11.19 billion by 2027 This growth is driven by growing consumer awareness of the health benefits the potential of alkaline ionized water, as well as the growing demand for premium drinking water products.

Figure 2 10 Functional water market

2.5 Alternative products

Alkaline-ionized drinking water is a new product on the Vietnamese market Currently, alternative products for alkaline ionized drinking water include mineral water, purified water, bottled water, etc However, these

alternative products do not have the same health benefits as ionized drinking water alkaline This gives alkaline-ionized drinking water a more competitive position.

In this market, alkaline ionized drinking water accounts for about 20% of the market share.

Alternative products such as mineral water, purified water, and bottled water account for about 80% of the

Alkaline ionized water

Figure 2 11 Market share of drinking water in Vietnam market

2.6 Conclusion

As we can see that Porter's 5 competitive forces model shows that the alkaline ionized drinking water market in Vietnam is quite competitive Businesses in the industry face many challenges from current competitors, potential competitors, suppliers, and customers To be successful in this market, businesses need to have appropriate business strategies, focusing on developing quality products, building brands, and strengthening relationships with variety of customers.

3 LIST THE PRODUCT DESIGNS THAT THE COMPANY IS SELLING ACCORDING TO YOUR GROUP, WHICHPRODUCT DESIGN IS MOST INNOVATIVE AND BRINGS THE HIGHEST EFFICIENCY? EXPLAIN YOUR

Figure 2 12 Bảng giá sản phẩm của nước Fujiwa

CriteriaFUJIWA Premium Alkaline 330ml

Life's I-ON water bottle 330ml

technology Advanced Japanese electrolysis technology Advanced Japanese electrolysis technology

Design Compact, convenient and luxurious design Simple, modern design

Figure 2 13 Bảng so sánh Fujiwa Premium Alkaline và Life’s ION water

In general, FUJIWA Premium Alkaline 330ml has a higher price than Life's 330ml I-ON water bottle, but has a higher pH and is produced from purer groundwater In addition, FUJIWA Premium Alkaline 330ml also has a more luxurious design.

Based on these competitive figures, it can be seen that FUJIWA Premium Alkaline 330ml is a higher quality product and suitable for consumers with high demands for product quality.

3.1 The product is innovative and brings many benefits to Fujiwa

The most innovative and beneficial product for Fujiwa is FUJIWA Premium Alkaline Ionized Water 330ML This product is produced using advanced Japanese electrolysis technology, which helps create water with many health benefits, including:

Improves the digestive system: Strong alkaline ionized water has the ability to neutralize acid in the stomach, helping to improve the digestive system, reducing symptoms such as flatulence, bloating, constipation,

Strengthen the immune system: Strong alkaline ionized water has the ability to enhance the activity of immune cells, helping the body fight against pathogens.

Reduce stress: Strong alkaline ionized water has the ability to reduce stress, improve mood, and help users feel more relaxed and comfortable.

Anti-aging: Strong alkaline ionized water has antioxidant properties, helping to protect cells from the harmful effects of free radicals, preventing skin aging and chronic diseases.

3.2 The product is manufactured using advanced technology

FUJIWA Premium Alkaline 330ML is produced using advanced Japanese electrolysis technology This technology helps split water into hydrogen ions (H+) and hydroxide ions (OH-) Hydrogen ions are acidic, while hydroxide ions are alkaline Alkaline ionized water has a higher pH than regular water, which means it has more hydroxide ions.

Products are promoted effectively

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