A research on domestic market development strategy of Thai Tuan textile& garment company in global crisis context

GRIGGS UNIVERSITY Global Advanced Master of Business Administration CAPSTONE PROJECT REPORT Class GaMBA01.C0509 Group No 4: LE KHANH DAT LE MINH HUY DANG THANH TUNG MAI KIM TRUC NGUYEN THI HONG NHANH HCMC - 2011 GaMBA01.C0509-Group ACKNOWLEDGEMENT To complete this capstone project report, our group, group No 4, wants to say thanks to all teaching and office assistant staffs of Center for Educational Technology and Career Development (ETC) of Hanoi National University who provided convenient conditions for us to pursue modern knowledge of business administration Moreover, they support us so much to complete global advanced master of business administration program successfully Beside, group No also sends warm thanks to cooperative program assistants at ETC center at Ho Chi Minh City (GASA), all colleagues of GaMBA01.C0509 class have paid so many attentions, contributed and supported ideas to our capstone project report Finally, we want to say thank to board of management of Thai Tuan Textile and Garment Company who supported and provided important material and data of their company which we can use to complete this capstone project report GaMBA01.C0509-Group TABLE OF CONTENT Acknowledgement Table of content list of table Introduction .8 CHAPTER I: THEORETICAL FUNDAMENTAL OF DOMESTIC MARKET DEVELOPMENT ON TEXTILE PRODUCTS .11 I Some issues of strategic management theory and market development 11 Some strategic management theories .11 a Strategy concept 11 b Strategic management concept 12 c Basic strategy models 12 Some basic concepts of consumer products market 12 d Product consuming .12 e Market development 13 The role and importance in the marketing of products, market development of the business: 14 Some strategies to penetrate and develop markets 16 a Products Development 16 b Customers Development 16 c Market development in geographic scope 16 GaMBA01.C0509-Group II The global economic crisis and the global textile industry crisis .17 The world market 17 Domestic market 18 III The need for strategic planning to develop the domestic market 19 CHAPTER II: ANALYSIS OF DOMESTIC MARKET DEVELOPMENT OF THAI TUAN TEXTILE & GARMENT COMPANY 20 I Introduction of Thai Tuan Textile Joint Stock Company 20 II Business situation of garment industry: 20 III Business situation of Thai Tuan Textile Joint Stock Company .22 Productive ability 23 Corporate Governance 24 Trademark 24 Marketshare 25 Products 25 Achievements 26 Competitors 26 IV The Situation of domestic market development of Thai Tuan Textile JSC (Business results) 27 V The successes and limitations of Thai Tuan Textile Company in the development of domestic market 29 VI The advantages and difficulties in developing domestic market, Thai Tuan Textile Company 33 External factor evaluation matrix 33 GaMBA01.C0509-Group a Opportunities (O) 33 b Threats (T) 35 Internal Factor Evaluation 39 a Strengths (S) .39 b Weaknesses (W) 41 VII SWOT Matrix 42 Use strengths to capture opportunities (SO) 45 Use strengths to overcome Threats (ST) 46 Overcome weaknesses to take advantage of opportunities (WO) 49 Minimize weaknesses to avoid threats (WT) 49 Quantitative Strategic Planning Matrix - QSPM: 50 VIII Conclusion of chapter 52 CHAPTER III: SOME SOLUTIONS CONSTRUCTION AND DEVELOPMENT STRATEGIES OF DOMESTIC MARKET THAI TUAN TEXTILE & GARMENT COMPANY 54 I Opportunities and challenges for Thai Tuan Textile Company in the development of domestic market 54 II The solutions to develop domestic market of Thai Tuan textile company 57 Product strategy 57 Selling price strategy 58 Contribution strategy 59 Promotion strategy 60 GaMBA01.C0509-Group Human Resource Strategy 60 III A number of recommendations and proposals for Thai Tuan textile company 61 The group of solutions to develop, complete production and improve product quality 62 Group of solutions to consolidate and expand market 62 Group of solutions to consolidate and brand positioning 63 The measure of human resource development and training and attracting talent 63 IV Conclusion of chapter 65 References .67 GaMBA01.C0509-Group LIST OF TABLE Table 1- Data and forecast production and import and export of textile and garment of Vietnam in the 2006-2013 period 21 Table - Summary of business activities .27 Table - External factor evaluation matrix 33 Table - Internal Factor Evaluation .39 Table - SWOT Matrix 45 Table - Current import clothing supplement data in 2002 - 2007 .54 GaMBA01.C0509-Group INTRODUCTION In economic integration and opening up, businesses have to confront numerous difficulties Strategy and market development is also an especially important step for the business enterprise The Vietnam Textile and Apparel companies are actually integrated into the world market mechanisms very challenging opportunities and, in conditions no longer supported by the state Textile industry has always been a leader in the industry, has an important role in the strategy of export of Vietnam to the world market It serves the essential needs of man, and the industry work to solve many of society The export growth rate is high, textile industry has made no small contribution to export growth chemistry In recent years, the garment industry has overcome difficulties in a spectacular way, one of the industry-leading export nations Entering 2010, the garment enterprises have identified the 'door' opened Activities in the field of fabric and clothing manufacturing, fashion Corporation Thai Tuan Garment and Textile (Thai Tuan Textile & Garment Corp.) is known as one of the leading textile enterprises providing textile products and services fashion in Vietnam Established in late 1993, Thai Tuan incessantly expanding manufacturing operations of its business from the construction of textile factories, workshops, plant dyes to the establishment and development expenditure Branch, Showroom system, the center of fashion and sewing workshops To date, Thai Tuan has branches, eight showrooms, more than 3,500 agents and 300 distributors spread across the country Along with expanding investment and production activities - business is the development of powerful computer facilities and equipment, especially the increase in human capital Besides enhancing the transfer of advanced technology from GaMBA01.C0509-Group Japan and Europe, human resources are focused on development of Thai Tuan expressed considerable number of the company's staff of about 1,300 people to date compared to first time only 30 people For years, companies have contributed to the richness and diversity of the market with many models and types of products, typically the product line silk, Silk Elastic, non-elastic, voiles, high-quality materials level for girls branded LENCII many customers are known and trusted, especially the high-end products such as digital print, embroidery and silk Besides, Thai Tuan also has launched fashion label luxury apparel available SILKI with designs costumes and walk around the family for young women and middle-aged In developing its strategy, Thai Tuan undertakings "Get the local market as the foundation and promote development through export." To ensure product quality to meet market demand for both domestic and export, Thai Tuan continuously and producing innovative designs, new fabrics to satisfy customers Thai Tuan's orientation to 2010 "will become the company offers clothing fabrics and top fashion in Vietnam" and beyond - to become a corporation specializing in providing services and fabric top fashion district Asia in the future With the criterion "Customer is the existence of the Company In production, get quality criteria In business, cooperation has mutual benefit On foreign policy, placed on top of trust ", Thai Tuan always put the interests of customers to the forefront and always respect the relationship of cooperation in business Over the past 15 years, Thai Tuan efforts in production and business activities, needs and bring added value to customers, participate in organized programs and activities concerned community and social With the enthusiasm of business owners along with the contributions and attachment of the collective enthusiasm of officials and public employees, Thai Tuan was honored with the Labor Medal Third, a lot of merit from the Prime GaMBA01.C0509-Group Government, the awards are prestigious and quality brand products by state institutions and society to recognize the title "Vietnam Golden Star", "Vietnam High Quality", "Strong Brands Vietnam "," typical enterprise Vietnam Textile and Garment Industry." 10 ... DOMESTIC MARKET DEVELOPMENT OF THAI TUAN TEXTILE & GARMENT COMPANY I Introduction of Thai Tuan Textile Joint Stock Company Thai Tuan Textile Company is one of not many textile companies have developed... strategic planning to develop the domestic market 19 CHAPTER II: ANALYSIS OF DOMESTIC MARKET DEVELOPMENT OF THAI TUAN TEXTILE & GARMENT COMPANY 20 I Introduction of Thai Tuan Textile Joint... direction and scope of an organization in the long term to gain a competitive advantage for organizations through the format of its resources in a changing environment, to meet market demand and satisfy