Based on the evaluation of macro environment through PESTEL model, the report will evaluate opportunities as well as threats affecting businesses.Opportunities: + Vietnam has a stable and less volatile economy.+ Vietnam joined WTO, creating opportunities for Phuc Long to expand import and export markets through other countries.+ The market for tea and coffee in Vietnam has the potential for development and expansion. Potential customers and demand for large tea and coffee markets.+ Increasing per capita income leading to increased demand.Threats: + Because the tea and coffee market is growing so there are many domestic and foreign enterprises entering the market, so Phuc Long faces high competition.+ The government has many changes in tax policy. Since 2019, the Ministry of Finance has just completed a draft law on proposing the application of special consumption tax on sweetened drinks (including tea and coffee) (Vietnambiz.vn, 2018), so if it is approved by the government, and Phuc Longs business and operation will be significantly affected.+ Export markets face many risks, psychology of domestic customers likes to use foreign goods.The strategies Phuc Long can apply are market development strategies. Because of its reputation and position in the tea coffee market with a stable number of customers, Phuc Long can continue to expand its market not only in Vietnam but also internationally.
Table of Contents Introduction Established in 1968 in Bao Loc tea plateau, over half a decade of development, Phuc Long's tea and coffee are too familiar to Vietnamese consumers Up to now, Phuc Long has owned 43 stores in big cities such as Ho Chi Minh, Hanoi, Khanh Hoa, Binh Duong and Da Nang, Phuc Long's products not only serve domestic demand but also exported to the world According to Phuc Long's website, the company only explained about Phuc Long's vision and mission, other information about goals and objectives is not updated publicly So, I will give some suggestions for businesses about setting goals in the future Vision Until 2019, Vietnam has more than 97 million people (danso.org, 2019), along with the increasing use of tea and coffee Standing in such a potential market, Phuc Long has a desire to expand its market and develop sustainably, striving to become a company specializing in the production and export of high-value tea and coffee in Viet Nam Besides, it is the desire to create a Vietnamese brand with the level and quality, thereby marking its position in the international market (Phuclong.com.vn) Mission Phuc Long has main missions: - First, become a leader with innovative ideas pioneering in the tea and coffee industry - Secondly, developing brands together, turning ideas into reality with a spirit of cohesion, listening and mutual respect, motivating each other - Thirdly, to create the happiness and satisfaction of customers, each individual in Phuc Long must constantly shine, constantly learn and renew themselves - Finally, with all the insight, sympathy and real valuable suggestions, Phuc Long creates the highest value for customers and satisfy their customers (Phuclong.com.vn) Objectives Standing in a market with great competition, obtaining market share and standing in the tea and coffee industry is difficult With over 50 years of operation in the tea and coffee industry, I believe that Phuc Long has a certain position in the hearts of customers It can be able to set out objectives is by 2020 it can be listed in the top brands of pure tea and coffee in Vietnam Goals With the desire to dominate the market, Phuc Long can set goals to open new stores in different areas in big cities like Hanoi, Da Nang and Ho Chi Minh City Specifically, in 2025, Phuc Long can open 20 more stores in big cities to satisfy the needs of more customers, gradually creating a stable firm in Vietnam's tea and coffee industry and develop into the world Major Findings Task 2: The impact and influence which the macro environment has on an organisation and its business strategies To analyze the macro environment for Phuc Long, this report will use PESTEL model Political Vietnam is a peaceful country with a stable politics, very convenient for the production and business of enterprises in general and Phuc Long in particular Regarding tax policies, according to Vietnambiz.vn (2018), Vietnam currently has no special consumption tax on sugar beverages, particularly tea and coffee available Proposals of 10% tax rates were made but not yet approved Therefore, up to this point, this is still a good opportunity to develop with businesses in the tea and coffee industry in general and Phuc Long in particular With the trend of integration, opening domestic and foreign markets, Vietnam's tea and coffee industry will have many opportunities to develop into foreign markets According to the FAO, in the next decade, black tea production is forecasted to increase 2.2% per year, estimated to reach 4.4 million tons by 2027 Besides, green tea production also increased significantly about 7.5% per year and will reach 3.6 million tons by 2027 => This will create opportunities for Phuc Long to export tea to the world but it also poses many challenges in competing with other major markets in the world Econom Inflation rate: According to the Price Management Department (Ministry of ic average monthly increase of 0.25% Inflation was controlled, average inflation Finance), the average CPI of 2018 increased 3.54% compared to 2017, the in 2018 increased by 1.48% compared to the average of 2017 and kept the average CPI below 4% (VnEconomy, 2018) In consecutive years from 20162018, CPI is always stable ( Showing people's lives is changing and there will be more demand for food and services This is also a good opportunity for Phuc Long to develop new products and services with a large number of potential customers The economy grows stably, credit growth reaches 17%, businesses are able to meet capital requirements => Overall, in 2018 Vietnam's business environment was improved, the political situation was stable, the economic growth was relatively high, inflation was maintained at a stable level compared to the other new economies thereby attracting strong investment flows from abroad Social Until 2019, Vietnam has a population of more than 97 million with an average age of 31 years (danso.org, 2019) Most Vietnamese people in big cities have a habit of using tea and coffee every day Moreover, Vietnamese consumers are inclined to use organic and natural products With raw materials taken directly from Thai Nguyen tea hill, Phuc Long brand is associated with the image of safe and quality products, thereby attracting more customers to use the product Besides, with increasing income and life, Vietnamese people are increasingly interested in enjoying According to Tuoi Tre online (2018), food and beverages account for the highest proportion of consumers' monthly spending structure with 35% => This can see the cultural and social factors positively impacting Phuc Long's development Technolo Along with the development of information technology, nowadays there are many businesses are always trying to bring convenience to customers by using gy applications on the phone or laptop to support customers shopping or participating join other types of financial transactions Mobile applications also help companies design marketing campaigns such as introducing new incentive programs, accumulating points, giving gifts, Moreover, people tend to use social media more and more This has a direct impact on Phuc Long in focusing on marketing activities more on social media => Keeping up with the trend of information technology is one of the challenges for Phuc Long, because information technology develops day by day, this affects consumer buying habits If Phuc Long fails to update new information technologies, they will lose a number of their customers Environme In Vietnam, natural disasters, floods and some unpredictable changes from the weather can affect enterprises' tea growing areas Owning for its own tea nt plantation in Thai Nguyen, the processing of tea and coffee is taken from the input => Therefore, if natural disasters and floods occur, it will directly affect the output and quality of raw materials, thereby directly affecting the operation of Phuc Long Legal Up to now, there are no institutions or legal documents restricting participation in tea and coffee production and business Therefore, there are many businesses participating in the industry creating competitiveness for Phuc Long Based on the evaluation of macro environment through PESTEL model, the report will evaluate opportunities as well as threats affecting businesses - Opportunities: + Vietnam has a stable and less volatile economy + Vietnam joined WTO, creating opportunities for Phuc Long to expand import and export markets through other countries + The market for tea and coffee in Vietnam has the potential for development and - expansion Potential customers and demand for large tea and coffee markets + Increasing per capita income leading to increased demand Threats: + Because the tea and coffee market is growing so there are many domestic and foreign enterprises entering the market, so Phuc Long faces high competition + The government has many changes in tax policy Since 2019, the Ministry of Finance has just completed a draft law on proposing the application of special consumption tax on sweetened drinks (including tea and coffee) (Vietnambiz.vn, 2018), so if it is approved by the government, and Phuc Long's business and operation will be significantly affected + Export markets face many risks, psychology of domestic customers likes to use foreign goods The strategies Phuc Long can apply are market development strategies Because of its reputation and position in the tea & coffee market with a stable number of customers, Phuc Long can continue to expand its market not only in Vietnam but also internationally Task 3: An organisation’s internal environment and capabilities Sources: https://www.researchgate.net/figure/Porters-value-chain-model_fig1_312940672 Primary activities - Inbound logistics: + Supplier: Suppliers are important links in the supply chain of businesses With Phuc Long, tea and coffee are the main ingredients With tea, the company selected scrumptious young green tea buds taken from their own tea hill in Thai Nguyen With coffee, the company chooses premium Arabica coffee beans to prepare for its products Raw materials are selected through strict inspection and handling processes to ensure consumer quality and health With the advantage of owning a system of tea plantations, farms, factories, dispensing places and shops, Phuc Long's raw materials are always guaranteed in both quantity and quality, helping the company have many advantages + Storage: After the harvest of tea and coffee, the material will be preserved in storage In here, a series of strict requirements are made Employees are required to carefully inspect the source of raw materials and remove tea leaves that are crushed, withered and absolutely free of mold, with coffee beans that must dispose of poor quality coffee beans because it may affect quality of the whole shipment Tea and coffee must be stored in a cool, dry place and the moisture must be checked regularly because if the humidity is too high, it will make the tea more susceptible to mold quality - Operations: Production of raw materials and conversion of input materials into products is the main activity of Phuc Long Tea leaves are grown by Phuc Long in Phuc Long tea hill in Bao Loc & Thai Nguyen and cared for by a very strict process, ensuring clean requirements are no pesticides and no growth stimulants Tea leaves and tea buds are required to be rigorously selected, harvested according to techniques that are not crushed After harvesting the tea leaves will have to go through the drying period to prevent the fermentation of tea leaves After being processed, tea leaves will be carefully packed into aluminum bags or boxes and stored in Phuc Long's storage The storage process is strictly inspected to ensure product quality (Phuclong.com) Because Phuc Long has fields of activity: producing and exporting packaged tea and coffee products and catering services at the store system, material tea bags will be distributed to Phuc Long’s branches and chain store or export according to order requirements - Outbound logistics: + When there are orders, Phuc Long staff will prepare orders according to customers' requests and deliver them directly (when customers buy directly at the store) or indirectly (when customers buy online, Phuc Long will deliver the goods to the carrier) to the customer + To ensure product quality, Phuc Long's packaging is designed with a special liner with one-way valve to drain water and keep the freshness of the product - Marketing and Sale: Phuc Long did not invest too much in marketing before Phuc Long's brand promotion channel is mainly word of mouth advertising based on guaranteed raw materials, high product quality and good customer service But with the development of the tea and coffee industry, competition is increasingly fierce, so Phuc Long forces mines to change and focus more on marketing and sales Phuc Long focuses on social media marketing such as Facebook, YouTube, and Instagram with the investment in content in each article Besides, in order to serve the needs of customers, Phuc Long also expanded the system chain Specifically, from the beginning of 2019 to the present time, Phuc Long has opened stores in different districts in Hanoi to serve the needs of large customers in here In the opening day, Phuc Long launched a lot of programs to give gifts to customers, including porcelain cups, red envelopes, multi-purpose shelves In addition, to meet customers' online purchase needs, Phuc Long also cooperates with delivery applications such as Delivery Now, Grab Food, to bring convenience to customers - Services: Phuc Long always strives to bring customers the best service and quality experience Customers can exchange with businesses via hotline phone numbers or via Website, Email or Facebook Support activities - The infrastructure of firm: With Phuc Long, infrastructure is always focused Phuc Long often selects large & special locations and most of them are located in major roads and city centers to attract a large number of customers Infrastructure of Phuc Long is always focused and it supports many other activities in Phuc Long With Inbound logistic, infrastructure activities supporting storage of raw materials by building factories and warehouses and advanced equipment With Marketing and sales activities, Phuc Long has started to invest more in advertising activities Besides, Phuc Long often selects nice locations in big cities, invests in uniforms for employees along with a formal training process to bring satisfaction in service quality for customers - Human resource management: Phuc Long has a young and well-trained staff right from the beginning Besides, Phuc Long also owns a team of consultants to run and create the best working environment for employees With an experienced staff and strict management, Phuc Long's employees are the main source to support most of the company's activities With Inbound Logistic activities, human resources support in receiving and storing raw materials and managing them according to a strict requirement During Operations activities, people play a role in managing processes until the product is formed or managing different supply chains within the system Human resources also support Outbound Logistic through product quality management and distribution channels management With Marketing and Service activities, human resources play a role in creating ideas and plans to promote the brand and attract more potential customers - Technology development: Information technology plays an important role in helping Phuc Long manage customer information as well as managing and synchronizing branches By using data networks, Phuc Long can synchronize information between branches, branches can share data to manage a comprehensive supply chain In addition, Phuc Long also applies information technology to expand sales channels, customers can put Phuc Long tea and coffee through food apps or through the company's website Phuc Long uses information technology to support his Operation activities through the synchronization of branch chain information, thereby making it easier to manage branches Besides, providing free wifi system and order via app or social network also helps Phuc Long meet customer needs and support their Service activities and Outbound logistics - Procurement: Because Phuc Long's material source is taken from their own tea hill in Bao Loc, so it is easier for Phuc Long to produce, pack, transport and distribute to branches Other materials such as sugar, milk, cakes, all have abundant domestic supplies, so finding other materials with Phuc Long is not too difficult Phuc Long should develop its own strategies for partners to improve relationships with suppliers to get good prices and products, support for Operating activities After analyzing Phuc Long's value chain, the report will point out Phuc Long's core competencies to help them turn them into competitive advantages for businesses Modern technology Strong financial capacity Large distribution channel in big cities From analyzing the value chain of Phuc Long, the report will assess the strengths and weaknesses of the business, thereby helping businesses improve their strategy - in the future Strength: + Founded in 1968, up to now, Phuc Long has spent more than 50 years of establishment and development, with the motto "A passion for quality" Phuc Long gradually marks in the hearts of customers with pictures of pure tea and create a strong brand image in the tea and coffee industry + With a wide distribution system and having more than 30 retail stores in big cities, Phuc Long's current stores in Saigon and other big cities are located in prime locations, most of them are located in the big road, the most central district of big cities helps Phuc Long attract many customers + With the franchise system in Vietnam, Phuc Long quickly expanded its distribution system throughout the big cities + The menu is quite diversity, with traditional tea & coffee and ice-blended drinks like other foreign brands Besides, Phuc Long sells all kinds of milk tea and other products such as moon cake, breakfast foods to serve many different needs and many different customers + Because owning a private tea source in Thai Nguyen & Bao Loc, the raw material supply for Phuc Long's operation chain is always ensured both in quantity and quality - Weakness: + The quality of service is uneven between branches in the same system, at some branches, customer service is not good as well as the quality of drinks varies between branches + Phuc Long has not focused on developing marketing activities Although Phuc Long has been more interested in implementing marketing activities recently, these activities are not new and there have been many other coffee shops doing it before Task 4: Evaluate and apply the outcomes of an analysis using Porter’s Five Forces model to a given market sector Threat of new entrants With good development potential, the tea and coffee industry always attracts the investment of many businesses Besides, the institutions that join the industry are not complicated, businesses can easily join the industry This creates great competitive pressure for businesses However, with more than 60 years of joining the industry, Phuc Long has made a mark in the hearts of customers and has a certain number of loyal customers This gives Phuc Long a strong position in the tea and coffee industry and makes it difficult and threatening to join for other competitors => Overall, the difficulty in joining the industry is MEDIUM Threat of Until 2019, Vietnam has more than 97 million people together with relatively competitor large demand for tea and coffee consumption in Vietnam, Vietnam tea and rivalry coffee market witnessed the strong development of many large coffee chains Phuc Long faces great competition with Vietnamese brands like Highlands, Trung Nguyen, Cong Coffee, The Coffee House or Urban Station, and foreign competitors such as Starbucks or The Coffee Bean & Tea Leaf, Compared to competitors in the industry, we can see Phuc Long's advantage in the menu is quite rich from tea, coffee to fruit juice, smoothies, breakfast It can be said that Phuc Long currently occupying the market in both segments of tea and coffee drinks, complementing each other in the very competitive and diverse beverage market Besides, Phuc Long's drinks have very reasonable prices along with relatively good quality and service, which creates a competitive advantage for Phuc Long => Overall, the level of rivalry between existing competitor is HIGH Bargaining power of suppliers Nowadays, Phuc Long has a production system that works extremely effectively when the raw materials used for tea and coffee production processes are derived from tea hills in Thai Nguyen & Bao Loc , which owned and managed by Phuc Long It means that Phuc Long is the supplier of input materials for his production Other ingredients used to make drinks are not too complicated so competitive pressure from suppliers is not a problem that Phuc Long does face at the moment => Overall, the bargaining power of suppliers is LOW Bargaining While Starbucks and The Coffee Bean & Tea Leaf locate high-end brands when power of targeting high-income office workers and foreigners who are familiar with the buyers taste of foreign coffee Trung Nguyen locates a mid-range brand but clearly identifies customers who love traditional coffee flavor And the good thing of Phuc Long is to target more diverse customers, from employees, tourists to students The price is suitable with the budget of the majority of people along with diversified menu of all kinds of drinks suitable for each customer, making Phuc Long meet a large number of customers' needs Moreover, compared to other coffee shops, the price in Phuc Long is very reasonable, for example with milk tea, the selling price in Phuc Long is about 25,000 VND - 45,000 VND / cup, accounting for 50 - 70% of the price from Trung Nguyen, or 30% - 50% of the selling price of Starbucks and The Coffee Bean & Tea Leaf, it is clear that Phuc Long's price is somewhat lower than its competitors Therefore, it is difficult for customers to put pressure on Phuc Long's price However, Phuc Long also needs to build more advertising campaigns to pull customers back to them and turn them into their close customers => Overall, the bargaining power of buyers is MEDIUM Threat of With a variety of alternative products such as fast food, canned drinks, substitutes vending machines, with transfer costs low exchange consumers can nut milk, drinks available from supermarkets, convenience stores, easily buy these products instead of using Phuc Long's products In addition, many replacement products are affordable and lower cost than Phuc Long's products Therefore, the threat of replacement has a strong impact on Phuc Long => Overall, threat of substitutes is MEDIUM Competitive advantages: The first competitive advantage of Phuc Long is place In particular, Phuc Long was placed in favorable traffic locations, crowded with passersby in the heart of the big cities, so it was easy to draw people's attention Moreover, in Ho Chi Minh City, it is not too difficult to identify Phuc Long brand, it is located near rival stores in the area of District (the central district of the city) By taking advantage of home turf to choose to compete directly with Starbucks and other foreign coffee brands, Phuc Long has been up-branding them with these big guys, and has turned to the international market through visitors to Vietnam Secondly, price is also a competitive advantage of Phuc Long Phuc Long owns available tea hills in Bao Loc and Thai Nguyen, factories, dispensers so Phuc Long can take initiative in raw materials, so product costs to consumers are reasonably controlled Based on the available strength of tea and coffee, Phuc Long builds a quite extensive menu, with traditional tea and coffee and ice-blended drinks no different from foreign brands but the price is only about 25,000 - VND 45,000 that customers can still fully experience in a modern and luxurious space For this reason, Phuc Long is suitable for a wider customer segment from commuters, tourists to students, and they can choose to come here regularly with this price instead of big brands that focus on high-income customer segment The price suitable for the majority of people can help Phuc Long to bring its brand to all consumers in the fastest way The last advantages are product Unlike milk tea of other brands, Phuc Long tea does not use pearls, so there will be no industrial scent In particular, they are not too many sugar or have many blue or red hues The criterion of a delicious glass of milk tea in Phuc Long is the milkflavored fat, but still has a strong taste of tea Thanks to that, the brand's milk tea cups always leave the user a very unique taste without chemical smell In addition, Phuc Long's menu is also diversified by a wide range of products such as specialty teas, coffee, ice-cream coffee, fruit juices, smoothies and especially milk tea After analyzing Porter’s Five Forces, it can be said that, Phuc Long faces high competition in tea and coffee industry Not only competing highly with domestic competitors such as Trung Nguyen, The Coffee House, Highlands Coffee, Phuc Long but also faces competition from foreign businesses such as Starbucks, The Coffee Bean, In order to increase Competitive advantage and improving its position in the market, one of the strategies that Phuc Long has successfully applied is Cost leadership strategy Phuc Long cafe & tea has adopted a cost leadership strategy and it seems that this strategy has helped Phuc Long to bring its brand to all consumers in the fastest way The appeal of Phuc Long coffee brand comes from product quality, characterized by peach tea and milk tea at an affordable price Chain stores Phuc Long is developing in two ways: Take away express to serve ordinary customers with the price ranges from 28,000-35,000 VND with some common drinks such as iced milk, hot coffee and tea dig…; Take away house for customers with higher income, average drink price 40,000 - 42,000 VND However, this is still the average price and suitable for the majority of people Moreover, not because the price is lower than other big brands like Starbucks, Highlands Coffee but Phuc Long's quality is worse In fact, the location of most of Phuc Long's facilities is located in crowded places in large roads, space and modern facilities, customers can fully experience the architectural space Luxury with good product quality but with a localized price Task 5: Apply models, theories and concepts to assist with the understanding and interpretation of strategic directions available to an organisation From the analysis of external and internal factors, the report will use two tools, SWOT analysis and SPACE analysis, to help Phuc Long develop appropriate and effective strategies SWOT analysis Opportunities (O) O1: Vietnam's economy is Threats (T) T1: High competition There stable, are less volatile than many domestic and Asian countries foreign enterprises entering O2: Vietnam joined WTO the market creating an opportunity to T2: expand import and export many changes in tax policies markets T3: O3: The market for tea and markets face many risks, coffee in Vietnam has the psychology of potential to grow and expand customers likes Potential customer base and foreign goods The government Customers: has Export domestic to use large consumption of tea and coffee O4: Per capita income is increasing => Demand for Strength (S) consumption increases S-O strategies S-T strategies S1: Has a strong brand name S1, S5 and O2, O3, O4: S1, S5 and T1, T3: and image in the tea and Thanks to its brand name, With great opportunities and coffee industry strong image and available potential for development, S2: Wide distribution system raw materials to ensure both the tea and coffee markets with more than 30 retail quality and quantity, Phuc always attract many domestic stores in major cities Long can focus on market and foreign enterprises to S3: Nice location development strategy invest in Taking advantage of S4: Has a franchise system Specifically, Phuc Long can the brand's reputation, and its S5:Raw materials are expand branches not only in great position in the tea and because Phuc the country but also abroad, coffee industry along with the Long owns its own tea hill in to bring the company's image advantage of excellent raw Bao Loc to other countries around the materials, Phuc Long can world use product development guaranteed S1, S2, S3, S4 and O1, O3, strategy O4 competitive advantage in tea From their strengths, Phuc and coffee market Long can use positioning to increase its brand strategy by creating a unique impression for their products Specifically, Phuc Long can locate based on quality and value The brand positioning will help Phuc Long create its prestige and attract a large number of customers in the domestic and Weakness (W) W1 The quality of service markets, W-O strategies W1 and O1, O3: and The product With these inefficient stores, between franchise cafes in franchise stores needs to be Phuc Long can cut it and the same system done more closely to ensure focus on investing in stores W2: Marketing activities have quality consistency between that operate well, have a not stores competitive W2 and O1, O2, O3, O4: thereby Marketing activities need to effectiveness of competition be more focused to increase with other competitors in the the brand identity of domestic industry and products that customers have development uneven W-T strategies W1 and T1: of been is foreign focused on management foreign Besides, customers Vietnam joining advantage, increasing Besides, the with not responded well, Phuc WTO also creates conditions Long for Phuc Long to expand its eliminate it to avoid affecting business to foreign countries, the brand Phuc Long can use market penetration strategy foreign markets to should improve or SPACE analysis Financial Strengths (FS) Ratin Economic scale: Up to now, Phuc Long has developed with more than 44 branches g +4 in big cities like Ho Chi Minh, Hanoi, Khanh Hoa, Da Nang, Besides, Phuc Long also exporting tea and coffee products to other major foreign markets such as Japan, the Philippines, the United States, Indonesia and Cambodia (doanhnhanonline, 2017) In terms of revenue, Phuc Long has a stable revenue growth, about 7% a year ( data in 2017) (VnExpress, 2018) Inventory turnover: Inventory turnover in Phuc Long is at average level, with +3 materials mainly tea and coffee Regarding tea, the raw materials are taken from Phuc Long tea hill in Bao Loc & Thai Nguyen, with a wide distribution network both at Vietnam and foreign markets, so the inventory turnover is not too high Regarding coffee, Phuc Long often imports a large amount of coffee from suppliers so it cannot avoid inventory but due to the long storage time of coffee, Phuc Long always ensures availability when the demand increases dramatically About other ingredients such as fruits, milk, cakes, ice cream are imported during the day and used in a short time to ensure product quality so there is no revenue on inventory +7 Competitive advantages (CA) Ratin Market share: With over 50 years in the tea and coffee industry, Phuc Long has g -3 gained a relatively large market share in the tea and coffee industry, only for the milk tea market, although it is not the main product, Phuc Long has accounting for 13% of the market for milk tea in the Ho Chi Minh City (Khanh Trieu, 2017) However, with great competitive pressure from foreign brands such as Starbucks or The coffee bean, as well as from Vietnamese brands like Highlands, The Coffee House,… it will be difficult for Phuc Long to quickly expand its market share in the short term Product quality: Because Phuc Long's materials are taken from their tea plantations, -1 the quality of raw materials is always ensured with careful processing and unique recipes that make Phuc Long's products always keep good quality Customer loyalty: Not only providing diverse products, good quality and affordable prices, Phuc Long also gives customers the best service through the attitude of -2 employees as well as policies for customer Besides, Phuc Long has constantly launched various products such as moon cake, freeze fruit, smoothie, to meet customers' needs For that reason, Phuc Long has owned a large number of loyal customers Stable supply: Because of own tea hill in Bao Loc & Thai Nguyen, Phuc Long's -1 supply of main ingredients is guaranteed both in quality and quantity -7 Environmental Stability (ES) Ratin Change in demand: Customers' needs are changing and their demands are getting g -2 higher With a variety of products as well as good quality, Phuc Long can fully meet the needs of customers Competitive pressure: Phuc Long faces great competitive pressure from both foreign -5 businesses such as Starbucks, The Coffee Bean, and domestic businesses such as Highlands, Trung nguyen, The Coffee House, Pressure from substitute products: As mentioned in the previous section, Phuc Long -4 faces competition from other substitutes such as fast food, dairy products, -11 Industry Strengths (IS) Ratin Potential growth: The market for tea and coffee in Vietnam has the potential to grow g +2 and expand Potential customer force and consumption of tea and coffee are quite large Therefore, Phuc Long has opportunities and high development potential In particular, when people's income increases, they will spend more money on their enjoyment of life, which will bring development advantages for the tea and coffee industry in general and Phuc Long in particular The complexity of entering the industry: With new businesses entering this market, +3 they will face enormous competitive pressure from well-known enterprises such as Starbucks, Highlands, The Coffee House and Phuc Long, So the risk is quite high, which will help Phuc Long reduce its competitors Therefore, threats to new companies are not high Profit potential: In addition to supplying to the domestic market, Phuc Long also +4 expands its exports to foreign markets such as Japan, America, Indonesia, and in the future is expanding to many other countries This will help Phuc Long increase its profit significantly Price stability: Vietnam has a stable economy along with low inflation so the general +4 price for tea and coffee products is stable +13 • • • • FS average is 7/2 = 3.5 IS average is -7/4 = -1.75 ES average is -11/3 = - 3.67 CA average is 13/4 = 3.25 IS + CA = -1.75 + 3.25 = 1.5 FS + ES = 3.5 + (-3.67) = -0.17 Thus, through the development of the SPACE matrix for Phuc Long, the results show that Phuc Long has a quite competitive advantage in an unstable development industry, a strategy suitable for Phuc Long is a competitive strategy, including strategies such as vertical upside down, vertical downstream, cross-linking, market penetration, market development, product development Results from the SWOT analysis also show that Phuc Long can use strategies such as market penetration, market development and product development Therefore, it can be said that the results between SPACE analysis and SWOT analysis are the same Conclusion By analyzing the external influences as well as the internal environment of the enterprise, the report developed SWOT and SPACE models to help Phuc Long find appropriate strategies and help PL take advantage Get the advantages to gain opportunities as well as eliminate weaknesses and challenges The report is expected to help Phuc Long develop further and create a better position in the tea and coffee industry in the near future References DanSo.Org (2019) Dân số Việt Nam (2019) - cập nhật ngày - DanSo.Org [online] Available at: https://danso.org/viet-nam/ 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