Contents 1) — Introduction
1 Product diversity
2 Vinamilk’s business strategy activities 2.1 Research and Development 2.2 Technology
2.3 Human Resources management II) Vission and Mission
1 Vision 2 Mission I) = Set an objective IV) Analysis
1 Macro environment 1.1 Political factors 1.2 Economic conditions 1.3 Sociocultural factors 1.4 Technological factors 1.5 Environmental forces 1.6 Legal and regulatory factors 2 Other factors
2.1 Substitute 2.2 Buyers 2.3 New entrants 24 Rivals 2.5 Suppliers 3 Micro analysis
3.1 Resources 3.2 Capability 3.3 SWOT analysis
Trang 3VỤ VII)
Best-cost provider Compare to present strategy Executing strategy
Evaluating performance and initiating corrective adjustments
Trang 4I) Introduction
Established in 1976, over 45 years of sustainable development, Vinamilk has been making great contributions to the development of Vietnam's dairy industry and successfully established its position in the world Vinamilk has had the beliefs of customers through 18 million of products consumed everyday, having more than 200 products, distributed to 30 countries Vinamilk is present in nearly 60 countries and territories, also the only representative of South-East Asia in “World’s top 50 dairy producers” (36th position) - Leading the top 50 largest listed enterprises in Vietnam with sales of over $ 2,5 billion per year
1 Product diversity
In its portfolio, Vinamilk has nearly 250 products of all kinds, particularly the liquid milk category has nearly 50 types of products, meeting nearly all nutritional needs of consumers Vinamilk concommits to bring you the nutrition solution with international standards, meeting the needs of consumers with delicious and nutritious products and leading favorite brands in market such as: Vinamilk liquid milk, Vinamilk yogurt, Longevity sweetened condensed milk, Southern Star Sweetened Condensed Creamer, Dielac powdered milk, Vfresh Fruit Juice, cheese , plant-based milk, sugar, etc Diverse products for all customers: babies, children, adults, pregnant & infant
2 Vinamilk’s business strategy activities
Regarding Vinamilk’s strategic business activities, this brand has focused on developing and improving the following activities
2.1 Research and Development
Vinamilk’s research and product development team always updates the latest knowledge about technology, as well as closely researches domestic and foreign markets to find opportunities and ideas for product development
Trang 5product from Ganoderma combined with honey filtered from natural essence, convenient for customers in health care
In addition, Vinamilk also develops natural beverage products such as apple juice combined with fresh aloe vera, soaked apricot juice that retains traditional Vietnamese flavors, 2.2 Technology Regarding technology, Vinamilk’s business strategy is to produce sterilized fresh milk with modern equipment and advanced production technology Vinamilk’s dairy factory is equipped with a sterilized fresh milk production line with modern equipment and today’s leading advanced production technology The factory operates on an automatic, closed line, from input materials to product output
2.3 Human Resources management
To recruit suitable personnel, Vinamilk has linked with universities to find bright candidates Vinamilk is committed to cooperating with organizations that interview and recruit young people who wish to work at farm facilities after graduation for those studying to be veterinarians or livestock engineers Regarding the working environment, Vinamilk always respects and appreciates the contributions and opinions of employees
II) Vission and Mission 1 Vision To become a world grade brand in food and beverage industry, where people put all their trust in nutrient and health products Based on the Table 2.1: The Dos and Don'ts: Effective Elements (Dos): + Be graphic: Vinamilk's future vision of becoming "a world grade brand in the food and beverage industry" signifies a brand that is reputable and recognized globally It means that the brand is not only present on the international market
Trang 6but is also considered a standard in its industry in terms of quality, innovation, and reliability
+ Be forward-looking and directional: “Aiming to be "a world grade brand" and “where people put all their trust in," targeting the international market and positioning itself as a safe, reliable business where people feel secure in their purchases and use, reflects the long-term goals and development of the company
+ Memorable: The vision statement is succinct and clear, and alongside, the ambition to "reach intemational stature" also creates expectations and inspiration And the commitment to gaining the consumers' complete trust makes users feel secure and confident, leading to a lasting impression — Makes good business sense
Shortcomings (Don’ts):
+ Be sure the journey is feasible: Vinamilk has only announced future decisions but has not yet provided specific information about the feasibility of the vision or the concrete steps the company will take to achieve its goals 2 Mission To deliver the valuable nutrition to community with our respect, love and responsibility Vinamilk's mission statement also succinctly conveys the following ideas: (1) Identifies the company’s products and/or services:
“valuable nutrition to the community” — nutritional food, not only milk
(2) Specifies the buyer needs that the company seeks to satisfy and the customer groups or markets that it serves:
“with our respect, love and responsibility’ — Vinamilk is committed to providing quality nutritional products while focusing on dedicated
Trang 7customer service, ensuring that every shopping experience is filled with respect and responsibility We believe that customer needs encompass not only product quality but also the shopping experience
(3) Gives the company its own identity:
With points (1) and (2), Vinamilk has implicitly declared that it is not only a provider of nutritional food but also a symbol of respect, love, and responsibility in all its products and services, thereby establishing its unique identity as a trustworthy and approachable brand for every customer
III) Set an objective
Based on the positive developments of the enterprise, with a 5.2% increase in net profit in 2023, surpassing 9,000 billion, and regaining 2% domestic market share by early November 2023, Vinamilk's objective for 2024 is to increase net profit by 11%, rising from 9,000 billion to 9,990 billion, and to increase its market share in the dairy industry to 47%
IV) Analysis
1 Macro environment 1.1 Political factors
Vinamilk is significantly impacted by Vietnam's political structure as well Vietnam joined the WTO and ASEAN in 2007 and 1995, respectively Vinamilk is able to lower production costs by building processing factories in nearby nations However, Vinamilk will face even more severe competition and may lose its market share to global brands
Trang 8The government has also supported Vinamilk directly The National Institute of Nutrition, Ministry of Education and Training, National Fund for Children of Vietnam, and other governmental organizations have partnered with Vinamilk to carry out social programs after politicians approved the company's plan to build a dairy processing plant in Cambodia.To Vinamilk, it's also an opportunity to partner with government agencies to carry out social responsibility campaigns and strengthen its reputation as a conscientious company
The government offers tax incentives and preferential treatment for businesses Investing in green technologies and environmentally friendly practices Income from investment in the production of renewable energy, clean energy and waste-to-energy process is entitled to a preferential tax rate of 10% for 15 years This could benefit Vinamilk if they invest in energy-efficient equipment, waste management systems, or renewable energy sources for their production facilities By adopting these technologies, Vinamilk can reduce its environmental footprint and operational costs
1.2 Economic conditions 1.2.1 GDP
Trang 92011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 1.2.2 Exchange rates Exchange rates affect Vinamilk's profits through raw material costs, product prices, competitive interests and international business If the value of the importing country's currency increases compared to VND, raw material costs increase, causing a negative impact on profits If the value of VND decreases compared to the export currency, product prices increase, which may affect Vinamilk's sales and competitive benefits Vinamilk has expanded its business to many different countries, so exchange rate changes can affect revenue and profits from foreign markets
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Trang 10
1.2.3 Inflation
Vinamilk's after-tax profit fell by more than 26%, declining for six consecutive quarters as inflation impacted purchasing power and input material pressure Vinamilk stated that high inflation led to a decrease in consumption, with the consumption value of the entire fast-moving consumer goods industry quickly falling by 2% in the first five months of the year Meanwhile, competition is increasingly fierce as many new companies enter the milk market Export activities are still equivalent to the same period, but direct export activities have declined due to a decrease in the purchasing power of foreign markets in the short term and freight rates remain high
Kết quả kinh doanh Vinamilk từ năm 2021 đến nay | | lỊI tỷ oe -2021 11-2021 11-2021 1.3 Sociocultural factors
@ Doanhthu @ Loinhuansauthué -9- Biển lãi gộp
Vietnam is a country located in the Asia-Pacific region, considered a dynamic developing country, rich in potential, with an important strategic location, abundant labor force, and average per capita income People increase and participate strongly in the world market through the signing of free trade agreements An increase in income causes an increase in purchasing power
A growing number of people are concerned about their health due to factors including a high birth rate, expanding material life, steadily rising income, and vast population As a result, this creates chances for the dairy market and Vinamilk to grow and develop
Trang 11Vietnam's age structure (2020)
6.91% 9.55% 22.61%
Since children make up 23% of the nation's population and are the primary drinkers of liquid milk, Vinamilk is advising this client base to adopt product lines that improve resistance, typically increase height The target product is liquid milk
Seventy percent of the nation's population is adults (defined as 15-64 years old), which is a rather high number This set of employees makes selections about what to buy based on their income and expenses; they are frequently concerned with the caliber of goods and brands Vinamilk does not restrict the distribution of a specific product to clients in this age range
Older adults (65 years of age and above) This is a potential target group in this liquid milk consumption trend in the near future, since just 7% of the population, which is a relatively tiny number, will consume powdered milk more than liquid milk
Vietnamese people gradually tend to care about environmental issues and sustainable development Therefore, Vinamilk has launched an organic milk product line, produced from organic raw materials, without using toxic chemicals and pesticides Not only does this create a high-quality product, but it also helps protect the environment by minimizing chemical use and negative impacts on land and water
1.4 Technological factors
The application of automation systems and artificial intelligence (AI) in farm management and operation has helped Vinamilk's happy cows to be always optimally and thoroughly cared for
Trang 12Vinamilk Tay Ninh Dairy Cow Resort pioneers the integration of modern technology 4.0 into dairy farming practices in Vietnam, revolutionizing management and operational systems within the farm By automating tasks and enabling remote monitoring, employees can efficiently oversee farm activities from any location Recognizing the challenges posed by natural conditions, Vinamilk invests in cutting- edge science and technology to transform Tay Ninh into a sprawling Dairy Resort adorned with lush grasslands spanning hundreds of hectares with A sophisticated air conditioning system, an automatic cooling system regulated by internal and external climate sensors Each cow is outfitted with electronic chips in their necks, facilitating the collection of performance, health, and milk productivity data, which is then analyzed centrally The management center employs an automatic analysis system to evaluate individual conditions, providing specialized care as needed to ensure high- quality milk production Tailored nutritional solutions are devised by the diet management system based on individual development stages, with the Lely Juno robot autonomously dispensing appropriate food rations in each cow barn Juno enhances the dining experience with soothing music, fostering relaxation and enjoyment for the
COWS
This approach ensures that the ltvestock remains healthy, productive, and yields raw milk of exceptional quality, meeting stringent standards Utilizing a suite of management software encompassing areas like ration, nutrition, health, and equipment management, Vinamilk ensures seamless operations with data stored, analyzed, and accessed through cloud computing The company's commitment to modernization extends to its continuous investment in state-of-the-art equipment and regular updates with the latest global technologies to enhance dairy farming efficiency
1.5 Environmental forces
Vietnam's climate is characterized by a hot and humid windy climate However, there are places with temperate climates like Sa Pa, Lao Cai, Da Lat , and places with continental climates like Lai Chau, Son La suitable for growing high-quality grass Despite the culinary climate, in general, the natural conditions are quite suitable for developing the dairy farming industry, especially in the provinces of Tuyen Quang,