(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 FINANCE

FACULTY OF ECONOMICS

MIDTERM REPORT OPERATIONS MANAGEMENT MGT1127E – A03E

Lecturer: Tran Hoang Nam

No

% contribution to the overall

result

Evaluation of task results

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

2.1 Current competitors 8

2.2 Potential competitors 10

2.3 Supplier power 11

2.4 The power of customers 11

2.5 Alternative products 11

2.6 Conclusion 12

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

4.4 Serviceability 16

4.5 Durability 17

III Summary 17

1.1 Limitation 17

1.2 Suggestions 17

REFERENCES 18

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 COMPANY

1.1 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 billionVND Fujiwa subsidized the investment for the manufacturing line to ensure the quality of the product byimporting European product line standard and alkaline ionized technology from Japan It aims at producing andproviding high-quality ionized drinks for immense communities Not only introduced to the Vietnam beveragemarket in 2018, but Fujiwa has also been exported to various countries such as Cambodia, Singapore, andgained a stable number of customers in Australia According to Vietnam’s Trade Office, health drinks have been atendency in Australia It is also the culprit, which led to around 160.000 bottles of Fujiwa alkaline ionized watersold out in Australia (Fujiwa, n.d.) The company takes pride in its manufacturing product line, which is fullyautomatic technology imported from Japan Moreover, Fujiwa has a clear mission in developing and enhancingthe sustainability of many platforms in the company,for instance, revenue, product quality, workforce, and brandvalue 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, TRANSFORMATION PROCESS, 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 iscleaned of hazardous gases and extra oxygen is added to the water To eliminate pollutants, the water issubsequently 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 islowered 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 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 linewith advanced Japanese alkaline ion electrolysis technology

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

After manufacturing Alkaline Ionized Water, Fujiwa goes through a few more procedures to generate thecompleted product, including microbial filtration > UV disinfection > second microbial filtration to remove anyleftover 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 thannormal water molecules, which helps absorption in the body Finally, the finished product is Fujiwa AlkalineIonized 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)

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(Source: Fujiwa’s company website)

To sum up, Fujiwa premium Alkaline Ionized Water rich in hydrogen with pH 9.0+ is naturally alkaline such asgreen vegetables, and has numerous applications such as mineral supplementation in ionic form, rapidabsorption, 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, relievesintestinal illnesses, and promotes anti-oxidation and the prevention of free radicals

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.

Currently, there are about 20–30 types of alkaline ionized water, and one of the biggest direct competitors is I-onLife, 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 SuperaquaIonized 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 MinhCity 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 UVsterilization equipment)

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

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 watersource 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 itsbiggest direct competitor, I-on Life, which has a factory in an industrial park (people in Japan never place waterplants 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 theindustry, 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 along 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 foodsafety procedures for machinery, employees, and customers Partners who visit the factory are equipped withvery standard food safety regulations with the criteria of FOOD SAFETY POLICY, with the principle that "Productquality is the most important factor, then the quality of food safety The product is the "core nucleus" of thefood 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 forforeign alkaline-ionized drinking water businesses to enter the market The entry of foreign competitors willcreate 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 bargainingposition with businesses in the industry.

In this context, Fujiwa faces pressure from suppliers, forcing the company to negotiate to get the best price andquality 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 areoften willing to pay more for healthy products This gives customers a high bargaining position with businesses inthe 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 alkalineionized 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 foralkaline 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 ionized drinking water a more competitive position.

alkaline-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 themarket share

20%

80%

Market share of drinking water in Vietnam

market

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 inVietnam 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 haveappropriate business strategies, focusing on developing quality products, building brands, and strengtheningrelationships with variety of customers

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.

Among the current hot topics Fujiwa is promoting is:

Products

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