BUSINESS DEVELOPMENT STRATEGY OF FERROLI VIETNAM

INTRODUCTION AND ANALYSIS OF ACTUAL COMPANY STATUSAnalysis of external environmentAnalysis of external environmentBuilding the Company’s development strategySUGGESTION or PROPOSED SOLUTION AND CONCLUSIONFundamentals of new business targetsAnalysis and Selection of strategiesSolutions to implement strategies

BUSINESS DEVELOPMENT STRATEGY OF FERROLI VIETNAM Co., Ltd ACKNOWLEDGEMENTS We commit that the content of this assignment has not been submitted to any degree granting program yet We pledge that this report is made of all four members’ effort All the analysis findings and conclusions except for certain quotations are born by the whole group’s working results Signature of members in the group: TABLE OF CONTENTS No Discription Pages INTRODUCTION Necessity for studying the theme Objective of studying the theme Scope of study Method of study Practice meaning of the theme 6 Diagram of study Content lay-out CHAPTER I : THEORY BASIS 1.1 Concept of strategy 1.2 Roles of strategy 1.3 Strategic planning 1.4 Strategic planning process CHAPTER II: INTRODUCTION AND ANALYSIS OF ACTUAL COMPANY STATUS 27 2.1 Brief introduction about the Company 27 2.2 Analysis of external environment 27 2.3 Analysis of internal environment 37 2.4 2006-2009 Business Performance 43 2.5 Shortcomings and reasons 50 2.6 Building the Company’s development strategy 50 CHAPTER III: SUGGESTION or PROPOSED SOLUTION 51 AND CONCLUSION 3.1 Fundamentals of new business targets 51 3.2 Analysis and Selection of strategies 53 3.3 Solutions to implement strategies 66 3.4 Suggestion 69 3.5 Conclusion 70 Reference: 73 LIST OF TABLE No Discription Pages Table 1.1 Summary table of external business environment 17 Table 1.2 Summary table of internal business environment 18 Table 1.3 SWOT matrix 19 Table 1.4 QSPM matrix model 25 Table 2.1 Estimated total sales of the storage water heaters in 2008 35 Table 2.2 Total turn-over of the instant water heaters market in 2008 36 Table 2.3 Some achievement of Ferroli in the past few years 43 Table 3.1 SWOT matrix of Ferroli is described as follows 54 Table 3.2 QSPM Matrix of Ferroli Viet Nam Co.ltd 61 LIST OF FIGURES & GRAPHS No Discription Pages Graph 0.1 Diagram of study Graph 1.1 Analysis model of building and selecting strategies 10 Graph 1.2 Five - force model 13 Graph 1.3 Major strategic matrix 22 INTRODUCTION Necessities for studying the theme For more than 20 years of renovation and integration into the world, Viet Nam has been an active developing country With the average growth of over 7% in the past years, Viet Nam is considered to have a high growing rate in the region and in the world The economic development not only brings out a large number of local and foreign investment projects but also raises the demands for facilities of people, among which water heater (For bathrooms) are an indispensable need Thus, many enterprises including Ferroli Viet Nam Co., Ltd have imported, assembled and distributed the water heater in the Viet Nam market Viet Nam has been fulfilling its commitments in the Asean Free Trade Agreement (AFTA) together with regulations of World Trade Organization, bringing a lot of opportunities as well as challenges for enterprises As a result, the Company has to determine its short-term and long-term development plan in order to take full use of such opportunities and minimize the challenges to keep the business running and developing In this context, Group No decided to choose: “Business development strategy of Ferroli Viet Nam Co.ltd in the period of 2009 - 1012 and the business plan till 2015” as the theme of our graduation report Objectives for studying the theme - Enlighten the theory on business strategy and building business strategy to the practice of Viet Nam Ferroli Co.ltd - Clarify the relationship between business strategy and operation results - Apply the theory on the building of business development strategies into Ferroli Viet Nam Co., Ltd Scope of study The theme takes Viet Nam Ferroli Co.ltd as an example for study Due to lack of time and other resources, our Group has focused merely on studying the business development strategies of Ferroli Method of study Our Group has used the flowing methods in studying: - Historical materialistic dialectics - Expert and direct investigation method - Statistics and economic analysis method Practical meaning of the theme - Systematizing, summarizing matters and methodologies about the business development strategy and clarify all the specific characteristics of Ferroli Viet Nam Co., Ltd - Providing Ferroli with a panorama picture of its business environment so that the Company’s Board of Management (BOM) can build up and choose an optimal strategy to utilize its advantages and minimize it drawback to achieve its short-term as well as long-term goals - Making a contribution into the theoretical treasure of business development strategy Diagram of study Graph 0.1 OBJECTIVES FOR STUDY FIGURE COLLECTION THEORITICAL BASIS (PRIMARY AND SECONDARY) ANALYSIS OF EXTERNAL ENVIRONMENT ANALYSIS OF INTERNAL ENVIRONMENT SETTING AND SELECTING STRATEGY SOLUTION, SUGGESTION AND CONCLUSION Content lay-out Apart from the introduction, appendix and list of references, the assignment structure is divided into three chapters Chapter I: Basis for theory Theoretical fundamentals and concepts of strategic planning Chapter II: Analysis of Ferroli’s current status, business environment and the Company’s development strategies - Overview of the Company - Operation results of Ferroli from 2006 to 2008 and the first months of 2009 - Analysis of the internal environment so as to point out strengths, shortcomings of the Company - Analysis of the external environment in order to evaluate opportunities and challenges of the Company - Shortcomings and causes - Business targets from 2009 to 2012 and development plan till 2015 Chapter III: Solution, suggestion and conclusion Represent solutions and suggestions to fulfill the selected business strategies We have tried our best to study the theory and reality; however, due to lack of time, references and survey together with the limitation of analyzing and consolidating capability of the Group’s members, the assignment still has certain restrains We therefore would like to have comments and suggestions from the lecturers as well as students in the class to make this graduation report better We are especially indebted to Mr./Mrs.… who enthusiastically instructed and supported our group during the time we conducted this presentation Thank all the members for their enthusiastic and timely collaboration to complete the report Appreciation is also expressed to the Board of Directors and employees in Ferroli Viet Nam Co.ltd for their provision of important information and creating the most favorable conditions for us to learn about the Company CHAPTER I BASIS FOR THEORY 1.1 CONCEPT OF STRATEGY According to Alfred Chadler, strategy is defined as the determination of basic and long-term goals of an enterprise and a process of acting and distributing important resources to reach these targets There are various definitions of strategy which share the same contents: Study the current and future market to point out objectives for the Company After that establish, perform and check the implementation of decisions to fulfill those targets in the present-day and future environment 1.2 ROLES OF STRATEGY Strategy plays a special important role in the operation of an enterprise Strategy also makes an organization more active in forecasting the environmental changes then based on that to make control of its operation in the current market economy, strategy helps to raise the competitiveness of the enterprises An Enterprise that has good strategies will have good business and vice versa 1.3 STRATEGY PLANNING Strategy planning is the first stage in the strategic administration Strategy setting is a process of setting up the business tasks, examining and reviewing the internal strengths and shortcomings as well as the opportunities and the risks from the external environment, establishing the long-term targets and building up and choosing appropriate strategies 1.4 STRATEGIC PLANNING PROCESS The view of an individual or a team who determine the strategy, is considered to be the most important factor in the establishment and selection of the strategies This factor is dependent on individual’s intuition, the analysis of which enables to generate decisions about the establishment of appropriate strategies to the business environment In the fluctuating business environment, a good intuition and precise vision will enable the enterprise to comprehensively analysis and approach the business environment, find out the advantages and disadvantages that really affected its operation to build up and implement the high feasible strategies which is suitable to the environment and mission of the company Graph 1.1 Analysis model: building and selecting the strategies Mission Analyze the external environment to find out opportunities and risks Build up strategies Analyze the internal environment to point out strengths and shortcomings Select strategies 1.4.1 MISSION OF THE ENTERPRISE Every enterprise organization has its own mission or task no matter they officially announced or not Generally, the founders and the leaders of enterprises shall determine a mission to lead the company to fulfill certain targets Defining the current tasks, objectives and strategies of an enterprise is the first step in the strategic management b, Take advantage of the exemption from taxes to improve its competitiveness: That Ferroli is exempted from the export tax of components and materials is considered to be an advantage of the production cost, which raises the Company’s profit if retailer price is kept or the company lowers the price to put up its competitiveness c, Develop new products to compete with alternative products: Solar water heaters are competitive alternative products in the South In addition, such products require a great deal of initial investment but save energy Currently, there are many trademarks of solar water heaters; thus, Ferroli have to introduce its products as soon as possible d, Optimize advantages of the production cost, powerful trademark, well-trained staff to create the comprehensive competitiveness Take advantage of the prestige trademark and benefits of the production cost together with a well-qualified and experienced staff and the understanding of products, technologies, market and the relationship between the distributors and consumers and a united group to cope with new competitive products in the market or take full use of strategies in the recession of the economy so as to maintain the market share or favorable business results WT Strategies a, Maintain activities when the economy is degrading to build up a base when the market grows rapidly The Company still has certain shortcomings such as lacking the diversification of its products, the development is insignificant or the Company has not penetrated into the Southern market, all of which may become advantages in the economic recession because the small model is easy to adjust or adapt to business strategies Currently, potential competitors have not entered the market yet b, Grasp the market and wait for opportunities of new products: The combination of its weaknesses and risks enables the company to grasp information on the market, competitors, trends and to be ready for strategies and plans to penetrate into the market effectively 3.2.2 Selection of strategies Selection of strategies according to QSPM matrix Due to the limitation of resources, it is impossible for an enterprise to pursue various strategies at the same time The section of the most optimal strategy for Ferroli Viet Nam Co.ltd is dependent on the following principles: - Results of SWOT matrix and major strategic matrix - Ferroli’s targets in the new era - Sectorial characteristics and present-day business environment Strategies for selecting - Strategy 1: Diversify products - Strategy 2: Distinctive strategy - Strategy 3: Develop the distributing channel nationwide Strengthen exports to foreign countries Development of QSPM matrix To define the attraction points of each strategy, it is necessary to conduct the subsequent steps:  List internal and external influence factors  Classify the influence level on the Company - No impact :1 - Little :2 - Relatively strong :3 - Extremely strong :4  Pointing environmental elements on each strategy - No :1 - Little :2 - Relatively strong :3 - Extremely strong :4  HD: attraction TSD: Total attraction points The classification of influence levels of external and internal factors on each strategy is applied in accordance with the professional method including discussion or asking for opinions of experts, enterprises and high-ranking officers On the basis of the above evaluation, we have the following QSPM matrix: Table 3.2 QSPM Matrix of Ferroli Viet Nam Co.ltd Important influence factors Selectable strategies Clas Strategy Strategy Strategy sific HD TSD HD TSD HD TSD 2 of 2 6 Basic demand accumulation of 2 4 External factors ation Low growing economy Demand accumulation Government Government Developed technologies 3 12 High prestige in the market 6 6 Foreign investment in VN 2 4 Newly established companies 2 Sectorial severe competition 3 12 9 Stable political environment 6 10 Non-increasing demand 12 11 More fastidious customers 3 9 12 Influence of providers 6 Important influence factors Internal factors Selectable strategies Clas Strategy Strategy Strategy sific HD HD TSD HD TSD TSD ation Well – qualified staff 12 12 12 Favorable finance 3 9 12 Modern technology 3 12 Efficient 3 9 12 production management Good materials 6 12 Prestige trademark 3 9 12 Good distribution system 4 16 12 16 Distinctive products 16 12 Good customer service 6 According to SWOT matrix, major strategic matrix and opinions of some experts, we suggest some general strategies that are appropriate with the Company’s targets as follows: Strategy 1: Diversify products Basing on the analysis of sectorial environment to determine potentials and characteristics of the market and analyze competitors to make a comparison of strengths and weaknesses as well as its technology between the companies with the competitors According to the company’s practical business activities during the past few years and its targets in the coming time, it is important for Ferroli to develop the diversification strategy of products to meet the increasing demands of the market and improve its competitiveness The diversification in the coming years is to diversify storage water heaters to compete with other competitors, at the same time, to vary types of instant water heaters to expand the market to the south as well as auxiliary products such as showers and bathroom equipment for sales on the distributing channels Investigate the market to collect information for the development of household and industrial air-conditioners, water heaters and boilers Not only building up and developing the traditional distribution channels, Ferroli Vietnam has set up a direct sales team to directly sell to big projects During the year 2008 and 2009, Ferroli has managed to supply its products to many big hotels, high standard apartments with the quantity of thousands product/project It has shown that the product quality is good and the sales team has successful gained the relationship with the investors, contractors and consultant companies This is the base for Ferroli to trading other products as bath tubs, sanitary basin and air conditioner By studying Ferroli Group’s products and its potential development of Ferroli Vietnam, we would propose that Ferroli should set the target to assemble and distribute the air conditioner by 2012 and become one of the best 10 sellers brand in Vietnam market by 2015 However, due to the limitation of time we only focused on the current business activities of Ferroli Vietnam but not study in detail the Air conditioner development strategy Strategy 2: Distinctive strategy Such strategies which have been employed since the company appeared in the market bring about the great contribution to the rapid development of the company As analyzed above, the differences of Ferroli include: - The advanced management model of Ferroli Group is localized by the managers who are aware of the local This enables the company to apply the advanced management model flexibly, quickly and appropriately in accordance with the Group’s regulations - This technology allows the company to design and produce various products as well as raise its competitiveness and save the study expense of development and reduce copying because technological changes need knowledge, experience and cost much money - Establish a different distributing system and direct sales in comparison with that of major competitors’ general distributors Up to present, competitors have changed in compliance with the direct sales model However, in order for the direct sales to be successful, it is necessary to build a staff of direct sellers who are flexible, reliable and are controlled by the company This is Ferroli’s property that helps the company have more experience than competitors in terms of direct sales In addition, such strategies create a separate position among customers for the company, which is the basis to cope with the penetration of current rivals and potential competitors in the coming time As a result, the notice of distinctive strategies is essential Strategy 3: Develop wide and deep distributing channels Ferroli Co.ltd has entered the market for nearly four years with the average growth of 50% per year During the past years, the company has focused its resources to develop the Northern market with storage water heaters Ferroli trademark has been confirmed as the trademark of high-quality products which always draw the belief from customers and partners However, the North is half of Vietnam water heater market It is known that demands for instant and solar water heaters in the South account for 70% market, storage water heater only 30% Ferroli Group is already producing instant water heaters and solar water heaters; therefore, Ferroli Viet Nam Co.ltd can import, assemble and distribute those products with the technical and technological support of the Group The introduction of two new products will help the company to deeply penetrate into the Southern market and raise its turn-over and improve Ferroli’s image in Viet Nam The concentration of resources to develop the Northern market has brought about a considerable number of satisfactory results for nearly years Now the Company should maintain the development rate in the north and focus resources to develop the Southern market Therefore, the strategy to develop a wide and deep distributing channel needs to be applied in the coming time 3.2.3 Conclusion According to the above-analyzed results, selected strategies for Ferroli Viet Nam Company to grow during the period 2009-2012 and orientation till 2015 include: “Strategy of diversification, distinctive strategy and strategy to develop a wide and deep distributing channel.” Such strategies aim to maintain the existing market, raise the competitiveness and expand the market to new regions such as the South, Asean countries by developing human resource and applying advanced technologies and strengthening the commercial advertising 3.3 SOLUTIONS TO IMPLEMENT STRATEGIES 3.3.1 Effective application of new technologies of Corporation In new products research and development divisions of Ferroli Group, a creative team always study and develop advanced technologies to produce new products, and develop new products in accordance with the specific plan of subsidiaries so as to be appropriate with local conditions Therefore, divisions of marketing and new products development of Ferroli Viet Nam should study and grasp characteristics of taste, consumption trends, technological tendency and competitors’ activities… It is necessary to develop competitive and distinctive products to improve the company’s competitiveness and develop a wide and deep market, meeting various demands of potential customers Technology research and new product development is mainly done by the Group in Italy The company in Vietnam only applies the Group existing technology and develops products having the style and characteristic suitable to the Vietnam climate environment For example, European countries mainly use the water heaters with the electrostatic painted steel outer case However, Vietnam with the high humidity climate, the plastic outer case will be replaced for the steel case to prevent the rust Bathrooms in other countries is normally designed big, the water heaters is hidden inside the ceiling so they did not care about the size and style of the water heater In Vietnam, the bathroom is normally designed small and the water heater is hanged on the bathroom wall, therefore the size and style must be good and nice As such the new product research and development of the Group is mainly to increase the global strategy competitive capacity and it is budgeted It will not cost much for the Group’s members such as Ferroli Vietnam to modify and develop its own new products 3.3.2 Human resource development Human resource is a significantly important and decisive factor that decides the failure or success of an enterprise It was stated by the Chairman of Ferroli Group, Mr Dante Ferroli that “We should always remember that equipment can be bought, but collaboration of men must always be won” This message has been popularized to the staff as a lodestar for subsidiaries to build up their business strategies Ferroli Viet Nam has established well-qualified staffs who have contributed a lot for the company for nearly years However, in the event of severe competition in the market, it is important to boost the constant growth and later plans of the company by developing human resource In particular, the development of sales and marketing staff in HCM and Da Nang in 2009 and early 2010 are required to provide sufficient labor to the deployment of new products including instant water heaters and solar water heaters The nature of this industry together with the production and distribution strategy has only required a small number of staffs Company currently has 112 staffs with a full management team If the company develops new product or widen its market, company will only need to employ the direct production workers or sales executives Therefore it will not cost the company much but utilizing the senior staffs In case the company develop a new product which has a different distributing channel as air conditioner, the investment will be required as setting up new company However its brand has been known in the market, the management team is experienced and skillful so it will be a big advantage for the company 3.3.3 Development of new products That Ferroli does business on storage water heaters, mainly in the north means that the Company merely competes in half of the market Revenue and influence level of the company to the market is insignificant, so it is hard to establish long-term strategies to lead the market As a result, it is important for Ferroli to develop new products such as instant water heaters and solar water heaters together with auxiliaries like showers and bathroom accessories Meanwhile, the company should grasp the market to import, assemble and distribute commercial and industrial airconditions to the market 3.3.4 Financial plan During four year operation in Viet Nam, apart from the funds of the Group, Ferroli Viet Nam Company has conducted a lot of business activities and ensured the cash flow It is known as a close chain of activities including the purchasing of materials, production, sales, and collection of money… Such stages are organized closely and rhythmically combined so that the cash flow is circulated properly Therefore, the Company needn’t borrow money from outside sources, which is regarded as a big advantage during world financial crisis year of 2008, 2009 The development of new products to the market of instant and solar water heaters by 2009 has been planned and prepared since the beginning of the year According to the calculations of the company, its finance is ready for the introduction of these two new products In the future, in order to develop other products like commercial and industrial air-conditions, boilers or steamers, the Company can make a business plan for the Group to verify and invest or lend money 3.3.5 Marketing and sales Marketing and sales are significantly important in the development of the company In addition to well-qualified, experienced and enthusiastic staff, proper sales and marketing policies are also required to ensure the competitiveness Before introduced products in to the market, Ferroli were unfamiliar with customers As the above analysis, the cost of marketing which is extracted from the company’s limited revenue is still insignificant After a four year operation, all customers on the distributing channel of building materials along with large construction companies and a majority of Vietnamese people have heard of Ferroli as an Italian trademark This is resulted from the flexibility and efficiency of the company’s marketing activities The establishment and development of constant distributing channel during the past years is highly valued by sectorial companies Many competitors have to adjust their traditional distribution model to set up the same model to Ferroli’s, which reflects sound distribution strategies of this company However, the success in Ferroli’s trademark and the distributing system in particular and business efficiency in general is the combination of multi factors such as a board of directors who have strategic vision, recruit and manage effective the human resource as well as provide appropriate policies of sales, promotion, advertising and distributing channel… In order to penetrate deeply into the Southern market, it is important for the company to organize marketing campaigns to popularize its trademark with Southern customers At the same time, personnel are also supplemented to approach and develop the distributing channel so as to satisfy all the planned targets and strategies 3.4 SUGGESTIONS In order for Ferroli to successfully implement its target to maintain the growth of the past few years as well as improve business efficiency and competitiveness in the local and foreign market, let us raise certain suggestions as follows: - Continue with management policies of the distribution system so as to prevent the decrease price and ensure the stability of the distributing channel - Develop sanctions and measures against unfair competition - Register to protect copyrights, industrial designs of products to prevent counterfeit trademarks - Maintain training the staff to meet new demands and objectives of the Company 3.5 CONCLUSION Generally, competitors in the water heater market have their own business strategies However, Ferroli and MTS Company (Ariston brand) which are totally invested by FDI have more experience in the establishment and management of strategies that is thought to be more professional than other local companies That some companies set up their strategies on the basis of the experience and intuition of the board of Directors or managers is proved to lack of the analysis of external and internal business environments as well as not to use strategic planning tools to achieve the objective evaluation and selection of optimal projects Industrial products which is durable, require warranty and regular maintenance, will demand the company to have a long term orientation and big investment to both technology and market development to create a strong competitive capability In Vietnam, there are many companies investing in the water heater manufacturing factory such as Hoa Phat - brand name is Funiki, Prime Group - brand name is Prime, My Viet - brand name is Olympic… The investment capital of these companies is higher than Ferroli and MTS (Ariston brand), two 100% foreign invested companies As those company invested in the full production line including the inner tank enamel coating production line which is the most expensive equipment among the water heater production line equipments while Ferroli and MTS only import parts, assemble product then distribute However, local companies’ production quantity is below 50,000 products per year so they are not being able to buy the advance technology as the foreign invested company Ferroli Group has factories in many countries In China they have two factories, the production quantity of the one in Guangzou is 1,2 millions products per year With 50 year experiences, Ferroli has exported its products to many countries in the world Each factory is set up to be able to supply to countries in the same region This way is not only save the investment but increase the result from investment Another advantage of the foreign invested companies is they can get the loan from banks in the developed countries with a lower interest rate and more stable In Vietnam during the period of high economic development, the inflation rate is high and the interest rate is also higher than that in the developed countries In the event of great changes in Vietnam economy and the integration into the global economy, it is obvious that more and more competitors penetrate into the market Apart from challenges, enterprises are provided with a considerable number of opportunities including the extension of production and export to other countries, local demands for infrastructure and houses are on the increase It is important for enterprises to build up the strategies that are appropriate to their conditions and capability so as to fulfill short-term and long-term targets With the above-mentioned purposes and results gained from the theme “Business development strategy of Ferroli Viet Nam Co.ltd in the period of 2009 - 1012 and orientation till 2015” may be helpful references for Ferroli to plan its business strategies During the implementation of this theme, our group has conducted the following steps: - Investigate, analyze and evaluate Ferroli’s external and internal environments - Apply the SWOT matrix to set up feasible strategic plans for the Company - Employ QSPM matrix to make strategic planning to select the most optimal strategy for Ferroli Company - Provide some supportive measures for the implementation of strategies The theme closes at the investigation, evaluation, analysis and planning of strategies instead of going into the reality and evaluating the given strategies REFERENCES Business Strategy and Tactic, The Statistic Publisher - Associated Professor, Doctor Nguyen Thi Lien Diep and MBA Pham Van Nam (2001) Strategic Management - Charles W.L.Hill and Gareth R Jones (1999) Strategy Management Concept (Translation) - The Statistic Publisher Fred R David (2000), Business Strategy and Tactic (Translation) - The Statistic Publisher, Garry D Smith, Danny R.Amold (2003), Lecture on Strategic Administration of Griggs University Competition in Global Industries - Havard Business School Press, Prter, Michael E (1980) From Competitive Advantage to Corporate Strategy - Havard Business School Press, Prter, Michael E (1980) Enterprise Strategy – Raymond Alain THIETART.(1999) [...]... property of an enterprise Thus, it is necessary to study their taste, habit, payment capability, shopping behavior, possibilities of changing products and their thinking of the company - Suppliers The study of suppliers of materials, equipment, labor, finance together with fluctuations and trends of such factors makes a company active in its business strategy Currently, the domestic demand of the water... determination of fluctuations of external factors is of great importance in the strategy development of a company The macroscopic environment includes elements of economy, politics, society, nature and technology The analysis of the macroscopic environment supports the enterprise in defining opportunities and risks to its operation in the future 1.4.2.2 Economy Among different factors of the macroscopic environment,... 1.4.3.3 Technology and equipment The study of technology and equipment is important to recognize the actual condition of existing machines of an enterprise as well as to be aware of trends and development of technology of the region and the world so that technological strategies can be established to ensure the competitiveness 1.4.3.4 Finance The functions of finance are demonstrated as analyzing, planning,... of the opportunities and avoiding the external risks The strategy with the highest attraction point in QSPM matrix generally satisfies the above-mentioned requirements CHAPTER II INTRODUCTION AND ANALYSIS OF ACTUAL SITUATION OF THE COMPANY 2.1 OVERVIEW OF FERROLI VIET NAM CO., LTD Ferroli Viet Nam Co.ltd is a 100% foreign investment company which was established on 28th July, 2005 and belongs to Ferroli. .. Vertical axis demonstrates the growth potentials of the sectorial market and horizontal axis shows competitive strength of a company All enterprises may be located in one of the four strategic right angles of the major strategic matrix It can be referred from this matrix that the position of a company is defined on the basis of the analysis results of the macroscopic environment and competitive environment... policy the of the 1.4.4.2 Summary table of internal business environment The summary table of internal business environment enables strategists to summarize and assess internal factors of an enterprise so as to determine its strengths and shortcomings Table 1.2 Summary table of internal business environment Environmental Importance level Influence factors of factors to the on the sector Company List Classify... shares of storage water heaters in Vietnam MTS Viet Nam Co., Ltd is located in Tu Son Industrial Zone, Bac Ninh Its operating model is similar to that of Ferroli Co., Ltd : importing, assembling and distributing their products into the market Ariston products are direct rivals of Ferroli in the middle and high-grade market segment of the water heater market Before Ferroli entered the market (in 2005),... shortcomings of a company are worked out to establish the proper strategies which maximize advantages and minimize limitations of that company Marketing is the key to make the distinction and the way of marketing is a major factor that contributes to the success or failure of the enterprise 1.4.4 TOOLS FOR STRATEGIC PLANNING Strategies are built on the basis of analyzing and evaluating the business environment... analysis of external environment, the analysis and evaluation of internal environment of an enterprise shall find out major factors that have considerable influence on its competitiveness After listing main elements of internal and external conditions on the SWOT matrix, it’s time to combine such elements with each other This combination is considered to be the most difficult task in the development of a... strengths and shortcomings of a company as well as opportunities and risks directly influencing its existence and development After that, strategic plans are set up to reach the targets Important tools for strategic planning include the aggregate analysis of external elements and the summary table of internal factors, SWOT matrix, major strategic matrix 1.4.4.1 Summary table of external business environment