Nghiên cứu năng lực cạnh tranh của tổng công ty bia – rượu – nước giải khát hà nội (HABECO) tt tieng anh

[89] One of the enterprises having a very good position in this industry is the Hanoi Beer - Alcohol - Beverage Joint Stock Corporation HABECO with over 60 years of establishment and dev

VIETNAM ACADEMY OF SOCIAL SCIENCES

GRADUATE ACADEMY OF SOCIAL SCIENCES

The work was completed at

GRADUATE ACADEMY OF SOCIAL SCIENCES

Scientific Supervisor: 1 Assoc Prof.PhD Hoang Van Hai

2 Assoc Prof.PhD Tran Thi Lan Huong

Reviewer 1: Assoc Prof.PhD Bui Huu Duc

Reviewer 2: Assoc Prof.PhD Bui Van Huyen

Reviewer 3: Assoc Prof.PhD Tran Minh Tuan

The dissertation will be defended before the thesis review council of the Academy at the Graduate Academy of Social Sciences at hour minute, day month year

The thesis can be found at:

- National Library of Vietnam

- Library of Graduate Academy of Social Sciences

1

INTRODUCTION

1 The urgency of the topic

Enhancing competitiveness is currently paid great attention in many countries and businesses (enterprises) in the world In Vietnam, this issue has become more urgent, in the context of active and positive international and economic integration, Vietnam's economy has been deeply integrated into the global playing field Therefore, in order to be able to compete and overcome foreign enterprises, Vietnamese enterprises need to constantly improve its competitiveness

Beer - Alcohol - Beverage Industry is an important economic sector, producing many products to meet the essential needs of people, domestic needs and exporting needs in the world In Vietnam, beer is one of the items that account for a large proportion of consumer’s demand, beer accounts for 94% of total alcohol consumption and 31% of the total beverage market In 2018, the growth rate of this industry reached 5.7% - the highest among the 10 countries with the largest market size [24] According to the General Statistics Office, the Beer - Alcohol - Beverage Industry sector contributes annually to the State budget with impressive figures, in 2018, the whole sector paid over VND 50,000 billion to the State budget In addition, the industry creates jobs for a lot

of workers with relatively high and stable income

According to statistics of the Vietnam Beer-Alcohol-Beverage Association, as

of 2018, the country has 110 breweries located in 43 provinces and cities According to the planning for development of Vietnam's beer, alcohol and beverage industry by the Ministry of Industry and Trade to 2025, with a vision

to 2030, by 2020, the country will produce about 4.1 billion liters of beer; by

2025, the beer production scale will increase to 4.6 billion liters; By 2035, domestic beer production will increase to 5.5 billion liters In order to develop beer, alcohol, and beverage industry, enterprises in the industry need to research enough opportunities to seize and develop, besides, it is vital to be prepared to deal with increased market challenges [89]

One of the enterprises having a very good position in this industry is the Hanoi Beer - Alcohol - Beverage Joint Stock Corporation (HABECO) with over 60 years of establishment and development The Corporation has experienced

2

many ups and downs through many historical periods, gradually made a deep impression in the minds of customers not only in the Hanoi market but also nationwide and offerred products to access the regional and international markets The main product of the Corporation is beer, with special know-how accompanying the development of the Corporation After many years, its beer still retains the traditional flavor and image in the minds of consumers With

years from VND 6,710 billion in 2013 to 7,867 in 2017 with consumption of

766 million liters However, since 2017, the Corporation's sales volume and revenue has showed signs of decline due to the fierce competition of enterprises in the industry Therefore, the reason for choosing the author's topic comes from certain grounds:

Firstly, Vietnam is a signatory and member of many economic organizations in the world With fierce competition in the industry, especially when Vietnam joined many major economic organizations such as ASEAN, APEC, WTO and most recently the CPTPP This is a great opportunity for Vietnamese enterprises in general and HABECO in particular to expand the market, improve the reputation and bring Vietnamese enterprises' brands to the world However, the Corporation faces huge challenges of domestic as well as foreign enterprises in order to maintain market share and reputation Therefore, improving the competitiveness of HABECO is necessary for the Corporation to compete effectively and enhance its position in both domestic and international markets

Secondly, the Corporation introduces a number of different types of beer to meet relevant market segments However, with the fierce competition in the market, rival businesses often have new products to meet the changing and growing needs of consumers Sabeco still holds the largest market share in the beer market, but its revenue is lower than Heineken and HABECO are experiencing a sharp decline in both revenue and market share In 2018, revenue decreased by 5%, profit after tax decreased by 23% compared to 2017, this is a very worrying issue for HABECO The consumption trend of customers has changed dramatically from the intermediate market to high-end

3

market This has greatly changed the production mindset of businesses If the Corporation does not quickly research and provide suitable products, its competitiveness will be reduced

Thirdly, the market area of the Corporation is narrowed due to the lack of investment worthy of expanding the market In 2014-2017, the company's beer market witnessed the strongest growth, especially in the Southern region, but this market share is gradually being occupied by other companies, especially

by a very strong competitor known as Sabeco, and the Northern market has also decreased This is alarming because the North market has been the company's main market for many years Another problem is that the high-end market segment is being occupied by foreign investors In 2015, the Corporation launched Truc Bach beer product to enter this market, although it has received good feedback but it has not yet brought significant results In

2018, the Corporation's market share and consumption area continued to be narrowed to 15% of the market share compared to 17% in 2017, this is a sign

of the decline in the competitiveness of the Corporation

Because of the above reasons, the PhD student decides to chose the topic:

"Studying the competitiveness of Hanoi Beer Alcohol Beverage Joint Stock Corporation (HABECO)" as the topic of the dissertation

2 Study purposes and objectives

2.1 Study purposes

Study and propose solutions to improve HABECO's competitiveness by

2025, with a vision to 2035

2.2 Study objectives

From study purposes, the dissertation focuses on the following tasks:

- Systematize the theoretical issues on competition and competitiveness, clarify the meaning of improving the competitiveness of enterprises Develop criteria framework to evaluate the constituent elements of competitiveness

- Analyze the actual situation and the components of the competitiveness

of HABECO

4

- Develop a study procedure, conduct surveys, collect ideas from employees and customers, and calculate results to analyze the situation and factors affecting the competitiveness of HABECO

- From the strengths and weaknesses of HABECO, the author proposes solutions to enhance the competitiveness of HABECO with a vision to 2035, recommending to the macro management agencies on the competitiveness of enterprises in general and beer, alcohol and beverage-industry businesses in particular

3 Object and scope of the study

3.1 Object of the study

The study object of the dissertation is the competitiveness of Hanoi Beer, Alcohol and Beverage Joint Stock Corporation

3.2 Scope of the study

* Regarding content: The dissertation focuses on the theoretical and

following elements: governance capacity, human resource capacity, financial capacity, marketing capacity, production technology capacity and corporate culture

* Regarding space: Analyzing and evaluating the competitiveness of HABECO through employees of the specific Corporation: Parent Corporation;

Me Linh - Hanoi Beer Factory; Hanoi Beer Trading Joint Stock Company (HABECO - TRADING.,JSC) specializes in draft beer business; Hanoi Beer Trading Co., Ltd (One member) consumes bottled beer and canned beer The study is conducted mainly in the North which is the main market of HABECO

* Regarding time: Analyzing and assessing the reality of the competitiveness of HABECO in the period of 2013-2018, proposing solutions

to improve the competitiveness of the Corporation by 2025, with a vision to

2035

4 Methodology and study methods of the dissertation

The dissertation is based on a combination of the following study methods:

- Method of descriptive statistics

5

The dissertation used many sources of data from the General Statistics Office, Ministry of Industry and Trade, Vietnam Beer - Alcohol - Beverage Association, Hanoi Beer - Alcohol - Beverage Joint Stock Corporation, previous documents, newspapers and study reports These documents were gathered by the PhD student to analyze and assess the reality of the competitiveness of HABECO

- Method of synthesis, analysis, comparison

In addition to the documents collected from the Corporation and its subsidiaries, the PhD student also collects secondary documents from specialized newspapers, magazines, documents from seminars and websites whose content is related to the topic

- Method of interviewing experts: The author collected opinions of

experts, researchers in the field of competition through seminars and exchanges Focus on meeting and collecting opinions of the leading officials in the Corporation; then, built up an appropriate questionnaire

- Methods of investigation and survey

+ The author conducted a survey of 400 employees of Hanoi Beer Alcohol and Beverage Joint Stock Corporation (HABECO) and 300 customers who are HABECO's target markets

+ Customer survey data through surveys and interviews conducted in the period from April 2018 to October 2018

5 New contributions to the science of the dissertation

Firstly, the PhD student offers 6 elements that make up the

competitiveness of HABECO: (1) Management capacity; (2) Financial capacity; (3) Human resource capacity; (4) Marketing capacity; (5) Technology and production capacity; (6) Corporate culture Impact factors are: (1) Policies and laws; (2) Population; (3) Economy; (4) Nature; (5) Competitors; (6) Assessment of customers

Secondly, from the results of surveys and direct interviews, the dissertation

determines the influence of each factor on the competitiveness of HABECO After testing the model and study hypotheses, and the results are satisfactory

6.2 Practical significance

Firstly, HABECO is an enterprise with more than 60 years of

establishment and development, however, in recent years, the enterprise has experienced a decline in its output and is gradually losing its position in the market The dissertation gives a comprehensive view of the Competitiveness of this Corporation over the years, emphasizing the successes achieved and the limitations that from which help to propose advanced solutions in the future

Secondly, conducting surveys and taking model accreditation related to the Competitiveness of HABECO From which there have been findings found in term of practical significance on the Competitiveness of HABECO, used as the basis for desging solutions and recommendations

Thirdly, the dissertation is a reference for researchers, students, and those

who are interested in the Competitiveness of HABECO Business administration manager and state management agencies therefore draw lesons and apply in making strategic planning and improving competitiveness

7 The structure of the Dissertation

In addition to the introduction, conclusion and references, the dissertation has 4 chapters

to the topic of the Dissertation

Chapter 2: Theoretical and practical basis for enterprise competitiveness

7

Chapter 3: Analyzing the competitiveness of Hanoi Beer Alcohol Beverage Joint Stock Corporation

Competitiveness of Hanoi Beer - Alcohol - Beverage Joint Stock Corporation

Chapter 1

A SUMMARY OF THE SITUATION BEING INVESTIGATED THAT RELATED TO THE TOPIC OF THE DISSERTATION

1.1 An overview of the research works focusing on competitiveness

1.1.1 Foreign documents on competitiveness

1.1.1.1 The concepts of competition and competitiveness

The concepts of competition and competitiveness have been around for a long time There are a great number of researchers interested in bringing out different concepts but have not yet to come up with a unified concept of Competitiveness Competitiveness can be considered and studied under 4 levels: National Competitiveness, Industrial Competitiveness, Enterprise Competitiveness and Product Competitiveness All of these 4 levels have a close relationship with each other, however the dissertation only focuses on researching the competitiveness aspect of the enterprise

1.1.1.2 Competitiveness models

a SWOT matrix model

b Diamond model

c Five forces model

1.1.1.3 Factors constituting enterprise competitiveness

There have been a large number of works and economists conducting studies on the criteria and factors affecting the competitiveness of enterprises Each study analyzed those factors from different perspectives

Sankrusme, Sinee (2011) in the study titled " Marketing Strategy

Competition among Beer Companies before Liquor Liberalization" [109],

analyzing marketing strategies of some domestic and imported beer companies

in Thailand The marketing strategies of local beers brands are product-related strategies such as product diversification, local wine sales with beer, pricing strategy, communication strategy, distribution strategy, brand strategy and

8

strategies focused on customer satisfaction, after-sales services Some companies use the SWOT matrix to devise competitive strategies in the increasingly fierce beer market

A study on a well-known Japanese brewery named Sapporo with the title

of “Holdings Limited 2006 company profile edition 1: SWOT Analysis” [117],

emphasizing the decisive factor to maintain and improve the quality of beer products is raw material input, therefore, the Company tighten the controls over its suppliers The study uses SWOT matrix to analyze the strengths, weaknesses, opportunities and challenges of the company in a fierce competition of domestic and foreign brewing companies in the Japanese beer market

1.1.2 Domestic studies on competitiveness

Nguyen Viet Lam (2014), "Discussion the methodology to determine the

Competitiveness of Vietnamese enterprises " [39] proposed a list of typical

criteria and component elements that constitute the Competitiveness of enterprises The list includes 2 groups, 10 criteria and over 20 different elements Group 1 consists of the criteria related to production and business efficiency: Including sales and market share; Production and business results include 5 elements: Costs per VND 1,000 of net revenue, profit per VND 1,000

profitability of assets, profitability of equity Group 2 consists of the criteria related to business capacity in the value chain of enterprises and creating value for customers which includes 8 indicators: Capability of capital, human resources, scientific and technological level, management and innovation ability, marketing planning ability, marketing mix capability, ability to provide services, brand power of enterprises In addition, the author also presents the methods of assessing and measuring the value of indicators as well as qualitative and quantitative factors such as the method of expert interviews and appropriate audience interviews The article also mentioned the way to determine the weights of the criteria by expert method, multivariate regression method, and general method This is one of the articles giving a complete set of

9

criteria as well as methods to evaluate the Competitiveness of enterprises and is

a very good basis to use in this dissertation

1.2 An overview of the research materials that focus on alcoholic beverage and soft drinks industry as well as Hanoi Beer-Alcohol-Beverage Joint Stock Corporation (HABECO)

Up to the time of research, there have not been many complete studies on the alcoholic beverage and soft drinks industry and on the Competitiveness of HABECO There has not been any in-depth study focusing on the Competitiveness of the Corporation either

1.3 The gaps between previous studies and the research direction

During the research process, by reviewing domestic and foreign documents on Competitiveness, the author inherits and finds the gaps of the previous studies

Firstly, there are many different concepts about Competitiveness given by researchers from three perspectives as follows: National Competitiveness, Industrial Competitiveness, Enterprises Competitiveness These concepts are quite complete, but from the perspective of Enterprises Competitiveness of beverage businesses, it requires a concept that is consistent with the research topic

Secondly, the evaluation criteria and factors affecting the Competitiveness given by these studies are quite diverse but are put under different approaches, however the alcoholic beverage industry has its own characteristics and there have not been any study poiting out the elements that constitute the competitiveness of alcoholic beverage and soft drinks businesses Therefore, the doctoral student needs to give out the constituent elements of the Competitiveness of enterprises

Thirdly, the research studies on the Competitiveness of enterprises trading

in beer, wine and soft drinks are still in small number and incomplete, most of which are only the reports that circulated in the industry Actual situation and

10

the industry statistics have not been summarized and analyzed thoroughly in a scientific work A number of related works have not been studied in the perspective of enterprise management, therefore, this is the gap for the doctoral student to further clarify in the dissertation

Fourthly, there is a lack of research works on HABECO and the Competitiveness of this Corporation Quantitative research on the Competitiveness of HABECO is not much, so the mission of the PhD student

is to rely on the framework of quantitative analysis and research to suggest recommendations and solutions

The recommendations and solutions for the industry are largely through reports, not based on the enterprise management platform on competitiveness Therefore, the author offers research directions for the dissertation based

on the gaps found:

- Proposing a model of components constituting the Competitiveness of HABECO

- Combining qualitative and quantitative researchs as well as specialized knowledge and practical situation of HABECO through investigation, surveys and summaries to analyze the constituent elements of the Competitiveness of HABECO

- Proposing solutions to improve the Competitiveness of HABECO focusing on beer products

Chapter 2 THEORETICAL AND PRACTICAL BASIS ON ENTERPRISE

COMPETITIVENESS 2.1 Concept of enterprise competitiveness

2.1.1 Compete

11

According to English-Vietnamese dictionary (2002), “Competition is a rivalry between enterprises in the same market to win more customers and increase the sales ” [22]

According to Michael Porter, the goal of competition is to take over market share The nature of the competition is to seek out profit, the profit higher than what the enterprise is currently having In his book “Competition Strategy”, he states that “The factor of price is the method of competition commonly used by the participants, when an enterprise lowers the prices, the rivals will do the same, the differences between products are the cause of competitiveness between enterprises, enterprises create uniqueness by making their products different, which will improve value, and so customers accept a higher and superior price than the additional shares” [55, pg 34-35]

Over all, for competitions in this new era, enterprises do not need to focus

on rivaling against one another to take over more market shares and benefits, but to go their own ways and make their products unique compared to all others, to have their own market, with high sales and growth but without rivaling against one another

2.1.2 Benefits for competing

Benefits for competing can be superior traits that the enterprise has or creates, so as to make products or traits superior than the rivals and gain higher sales in the market

2.1.3 Competitiveness

The author presents the concept of competitiveness of

Beer-Alcohol-Beverage enterprises: “Competitiveness of beer-alcohol-beverage enterprises

are shown in joint improvement of the resources of the enterprises, aiming to make products of outstanding and impressive quality, flavor and color, to satisfy the customers more than the rivals.”

2.2 Aspects of competitiveness of beer enterprises:

2.2.1 Governance capacity

2.2.2 Finance capacity

2.2.3 Human resources

2.2.4 Marketing capacity