CHIẾN lược đề XUẤT CHO đồ NHỰA GIA DỤNG KHI THAM GIA vào THỊ TRƯỜNG MYANMARe

CHIẾN LƯỢC ĐỀ XUẤT CHO ĐỒ NHỰA GIA DỤNG KHI THAM GIA VÀO THỊ TRƯỜNG MYANMAR Contents I THE OVERVIEW ABOUT GLOBALIZATION AND ECONOMIC DEVELOPMENT TRENDS Globalization and trends .3 Economic operation in the context of globalization 3 Expanding business in the context of globalization .3 II DAI DONG TIEN COMPANY EXPANDS BUSINESS TO OVERSEA Dai Dong Tien Company in briefly common introduction Dai Dong Tien Co.: Products, services and market position Current business situation Choosing suitable goods to expand the market in Myanmar .7 III ANALYZE MYANMAR MARKET .7 Advantages Challeges involved in the Myanmar market Why chooses Myanmar market with household product services .9 IV WEAKNESS AND STRENGTHS OF PLASTIC UTENSILS WHEN PARTICIPATING IN MYANMAR MARKET 11 Strong points 11 Weak points 11 V PROPOSED STRATEGY FOR PLASTIC HOUSEHOLD FURNITURE WHEN PARTICIPATING IN MYANMAR MARKET 11 Penetrative methods 11 The product strategy in the Myanmar market 12 I THE - OVERVIEW ABOUT GLOBALIZATION AND ECONOMIC DEVELOPMENT TRENDS Globalization and trends Globalization is obvious trend, whether or not it still happens and brings benefits as well as challenges in all aspects of the society, within economic operation is a part - of globalization Nowadays, resulted from the strong development of the international economic integration, there are good opportunities for many countries around the world - develop their economy meanwhile creating challenges need solving as well Economic operation in the context of globalization In the economic globalization, all regions and nations participate in a common market Commodity, materials, fund, and manufacturing technology as well as human resources is being circulated across national borders Transaction rules are - discussed by joining-party When the Vietnamese economy in general and enterprises in particular totally integrate the world business leading to open global markets in parallel with competition that Vietnamese enterprises have to face with Expanding business in the context of globalization In the context of globalization, almost nations and companies are likely to widen their market into potential markets within Vietnamese enterprises follow this rule as well In order to expand business to global market, enterprises need to research the market, analyze products in each segment and well prepare to ensure success in the context of global challenge II - DAI DONG TIEN COMPANY EXPANDS BUSINESS TO OVERSEA Dai Dong Tien Company in briefly common introduction Dai Dong Tien Co specializes in producing plastic household, household furniture and other products serving for different industrial sectors right in Vietnamese market, the company’s establishing and developing process has experienced many stage in history: - Beginning as household production, specializing in the production of pens In 1983 Dai Dong Tien Group was founded and turned to producing plastic household by a founder, Mr Trinh Dong ( Chairman of Board Directors) He started to reform - totally Dai Dong Tien Group operation In 1997: Dai Dong Tien Group officially turned to Dai Dong Tien Plastic Co Ltd The Company built its own factory in 948 Huong lo Street , Binh Tan Dist, HCM city The company is the first plastic company in Vietnam gained the ISO certificate - 9002: 1994 granted by QUACERT & QMS In 2007, company changed its name to Dai Dong Tien Join Stock Co The Company has continued researching to provide high quality and healthy products for consumers On 26th July 2008, Company applied Nano-silver technology (Antibacterial technology) into manufacture successfully and launched products with SINA brand name, a brand of modern style, high quality standards to ensure - the consumers’ health Currently, the company has many branches across Vietnam following moderner - standards of management: ISO 9001: 2000 Strategy and vision for the long-term development of the company is to be a global company, there are three responsibilities: with product suppliers, with profit, and with society These duties will help the company get the target Dai Dong Tien Co.: Products, services and market position a) Household product lines Food container Ice cooler & Jar Pails & basins Basket &Pitcher Tables & Chairs Cabinets b) Products follow customers’ requirement and serve industry sectors c) Honourable names, quality standards and certificates - ISO-9001: 2000 certificate - The trade mark of Vietnamese high quality product for 13 years( 1997-2010) - Third class Labor Medal , 2007 Vietnam Gold Star Award 2007-2009 The Vietnamese strong brand Award in 2008 The well-known brand Award in 2006-2008 Top 500 largest private enterprises in Vietnam (2007, 2008,2009) Current business situation In 2010, Dai Dong Tien turnover attained over 880 billion VND; this figure went up to 900 billion VND in 2011 And in 2012, according to the board managers’ schedule, turnover is reaching 1.400 billion VND and increasing the growth rate up - to 40% compare with the last year The company has more than 300 kinds of good with brand names such as Household, Sina, Nice, Foodpak, and GIP… These products have being consumed strongly in both local market and export to other countries: Campuchia, Australia, - European countries and Middle East… In Domestic market, Dai Dong Tien had a distribution market with more than 70 distributers and over 3.500 outlets and big supermarkets as Big C, Maximark, and - Co.opmart… Except an operating factory in Ho Chi Minh City, in 2011, Dai Dong Tien also has invested to build a new plant with about $10 million investment fund (and is expected to raise $50 million in the coming year)following GMP standards of the World Health Organization Nhon Trach factory in Dong Nai province is putting into operation later this year With a modern plant, the company will strengthen the potential product line which has been limited output due to the lack of large - workshops such as plastic interior, exported-luxury goods Dai Dong Tien Company’s strategy is to increase productivity of high-quality products, paving the way for future export target and aiming at becoming a global - brand in 2020 And with the officially gained top Vietnamese high-quality products award in 2012 and prestige that the company itself has confirmed with consumers during the period Choosing suitable goods to expand the market in Myanmar To enter the Myanmar market sucessfully, the company selected the household products line which is essential for almost all families, plastic goods are very popular and handy for Asian families, especially with consumers in some countries have common characteristics of living as Vietnam, Thailand, Cambodia, Laos, Myanmar, Indonesia In the current study, household plastic products are commonly used by Myanmar people; they are very suitable for this market III ANALYZE MYANMAR MARKET Advantages a) In terms of business and society - This is a potential market for a variety of essential goods (consumer), because this is a country closed for a long period and now it opens to receive economic integration Myanmar government is actively improving the conditions for calling investment - as infrastructure development such as transport, electricity, telecommunication, ….criticized comments on IFC - http://www1.ifc org This is a market with high purchasing power, with approximately 54,584,650 million people (estimated figures in July 2012) and purchasing power in GDP is $ - 82.68 billion ( figures estimated in 2011) - referenced at CIA The World Fact book In terms of culture and religion of Myanmar people, Buddhist makes up 89% of the population, it is very advantageous in terms of society because people are friendly - and honest – Referenced at CIA The World Facet book A market where the production of goods for household only meets about 15% of the domestic consumption this is a great opportunity for household goods coming from other markets – referenced information from Department of Promotional Foreign Investment 15.00% 85.00% Domestic productions Import productions - Myanmar is a country which has a weak-developed science and technology so the - quality requirement of products is not too high As Vietnam, Myanmar has an agricultural economy therefore the demand on household goods also likes Vietnam so the Vietnamese enterprises are easier to - access Myanmar has just reformed and opened up its economy therefore the country needs a huge investment and business cooperation, this market also has the advantage of low labor cost, about $60-80/per lowest-level labor and from $200-400 USD/per mid-level labor b) The political situation - The Myanmar political makers and leaders have acknowledged and changed their mind to focus on economic development and commit to innovation and economic - development for the country The investment commitment as well as the world community support on expanding trade transaction in Myanmar reflected in the visit of influential politicians such as the United States, other countries , the latest state visit of the Vietnamese president to Myanmar to strengthen economic ties, create good conditions for doing - business between Vietnamese and Myanmar enterprises Vietnam has a traditional relationship with Myanmar (before having an opening door policy in this country) Vietnam is traditional partners so the Myanmar government has committed to create the first priority for Vietnamese businesses to make investment in Myanmar – Criticized information from Department of - Vietnamese promotional investment The openness of Myanmar government in calling foreign investment has been clearly demonstrated through the international multi-media, on the web site of calling foreign investment (http://www mida.gov.my) as well as in the regional - economic forum and the world Vietnam-Myanmar bilateral trade turnover has increased sharply, especially in recent period, from $9.31 million in 2001 to $167.20 million in 2011, up to $500 million in 2015 (according to the commitment of the general statement of Vietnamese President state visit to Myanmar president) Now Vietnam only accounts for 1% of Myanmar turnover - Criticized information from Department of - Vietnamese promotional investment Challeges involved in the Myanmar market Law system has not followed the international rule, thus still remaining violations in copyright, brand… affected to business activities This is also the point that countries will be improved in the near future when participating in the international - market - quoted document (CIA The World Factbook) Because of a new opening door country the English system has not been commonly used and it is also a barrier to business activities here - Infrastructure has not developed and made challenges for investors in this country The foreign companies have not been allowed to operate independently; they need to have a joint -venture with a local company in the country - Department of - Vietnamese promotional investment Vietnam has no borders with Myanmar so there isn’t advantages in transportation of goods by road as China, Thailand, (this is the countries which have major - competitors with Vietnamese businesses) The governmental Corruption is still high - quoted CIA The World Factbook reports Why chooses Myanmar market with household product services a) Why Myanmar market to be chose? - From the analysis of the strengths and weaknesses of Myanmar market it is said that Myanmar is a new opening market, and the only remaining potential market in the Pacific Asia has untapped like Vietnamese market 20 years ago There are many opportunities in various economic sectors for foreign investors to exploit business - expansion This is a market with high purchasing power, with close to ~60 million people that the domestic supply and production only meet about ~15% The left is mainly - imported Another favorable conditions for Vietnamese businesses, this is a country where the level of science isn’t highly developed, the standard requirement for goods and services isn’t highly demanding so Vietnamese businessese completely meet this - market without any difficulty The commitment to open market, call for foreign investment, Myanmar government supports for foreign companies to invest in Myanmar especially - Vietnamese enterprises The Myanmar people are very keen on goods and services of Vietnam, because Vietnam's household goods have high quality, are reputable safety for users, Myanmar consumers tend to boycott Chinese commodity, cheap price but low- quality and safe, this is a favourable condition for Vietnamese products b) Why choose household plastic product? - The plastic industry in general has reflected a strong potential growth in Asia and the world In the past 50 years the growth of the plastic industry in Asia was 9% per year, particularly in Southeast Asia plastic industry increased by 20% in 2010 Average demand per capita consumption of plastic products was 40kg/person/year in 2010, the highest figure was in North America and Western Europe, with more than 100 kg / person / year and Vietnam stood at 32 kg / person / year in 2010 - (From the report of the Vietnam plastic association, 2011) Household plastic utensils are popular use in most families, including common and personal items Plastics have the advantage of low cost, handy, easy to manufacture - so plastic household products are well able to access the new market Plastic products aren’t long lasting life, so consumers have quiet strong frequency of buying, replacing new one WEAKNESS AND STRENGTHS OF PLASTIC UTENSILS WHEN IV PARTICIPATING IN MYANMAR MARKET Strong points - The company is famous for manufacturing household plastic goods in Vietnam, it awarded ISO-9001: 200 certificate and other valuable trademarks in Vietnam, the - company's products are popular in Vietnam market The company has experienced of international markets such as: Laos, Cambodia, - Australia, European countries and Middle East The company has strong factory chains, with over 300 different product lines which - have been sold on the domestic and international markets The company's products are manufactured on the modern technology line certified as products for health and safety Weak points - The input source is the plastic resins and other additives, Vietnamese enterprises have to import up to 80% from oversea (source - Vietnam Plastics Association VPA 2011), Vietnamese enterprises can’t take the initiative for input source, this is the point that almost enterprises have to face with, so plastic businesses need to V build stratergy for predicting output productivity as well as input source International competitiveness power is not strong enough, marketing forecast is still limited, and human resources aren’t professional PROPOSED STRATEGY FOR PLASTIC HOUSEHOLD FURNITURE WHEN PARTICIPATING IN MYANMAR MARKET Penetrative methods According to Myanmar's foreign investment laws, the country doesn’t allow foreign companies to directly open business They have to joint venture with a local company, so in order to introduce plastic products into Myanmar market, the company selected a form Joint Venture, it is one of the most popular forms today From that the company carries out bringing products to consumption and distribution channels in Myanmar Another point, joint venture with a local partner is an important bridge to approach to the local consumer culture of the Myanmar The product strategy in the Myanmar market a) Advertising and marketing stratergies In order for Vietnamese goods to be well-known in Myanmar market, the company should have advertising campain on mass media, television, newspapers, radio and leaflets to introduce the outstanding characteristics about the company's products, as well as methods to identify the company's logo, creating a special style leds consumer to the company's products b) Openning outlets and agents Agent development policy is one of a key factor in diversifying business stratergy of household goods Manufacture Company It contributes to the company's products widely introduced in the market to consumers, increase the output and annual revenue This policy will put the company's products into all retail stores and supermarkets across the country of nearly 60 million people c) Actively participate in the Expo and introduce products Fairs will be a good opportunity to promote brand and look for partners to open up new markets for the company Fair also provides an opportunity for consumers to identify the brand and help consumers distinguish counterfeit products d) Building Factory construction site in place This is a long-term period after the company's products have dominated consumer tastes, the company will open the factory in place to take advantage of human resources, as well as reduce the cost of shipping … e) Competition As we know the consumer market in Myanmar has just opened but it is ongoing fierce competition between rivals from China, India, Thailand, and Malaisya so - to fight these rivals, the company must have a strategy in this market Making standards for product quality; it is a strong point that the company has been - conveying to customers in the process of product introduction Develop strategic in designing product style, to create a difference and indentification the company's products - Developing flexible price policy for each customer and segment References: Dai Dong Tien Company: (http://www.daidongtien.com.vn) The-world-factbook: (https://www.cia.gov) International Finance Corporation - IFC (http://www.ifc.org) Department of Vietnamese Promotional Investment Vietnam Plastics Association report – VPA 2011 Information from The World Economic Forum on East Asia 2012 ... still high - quoted CIA The World Factbook reports Why chooses Myanmar market with household product services a) Why Myanmar market to be chose? - From the analysis of the strengths and weaknesses... award in 2012 and prestige that the company itself has confirmed with consumers during the period Choosing suitable goods to expand the market in Myanmar To enter the Myanmar market sucessfully,... price but low- quality and safe, this is a favourable condition for Vietnamese products b) Why choose household plastic product? - The plastic industry in general has reflected a strong potential