Issue in Strategic Management in Vietnam - Vinamilk Case
EXECUTIVE SUMMARY
In the light of globalization, a well- established strategy makes a great contribution to the success of Vinamilk – the leading dairy company in Vietnam. Vinamilk chooses diversification strategy in order to reduce the risks, meet the customers’ higher demands and increase the competitive strength. The decision of diversification is based on the deep analysis about the company’s resources, value chain, core competencies, performance and product portfolio. As for resource audit, the report looks into both tangible resources (stable and effective financial situation, modern equipment, technology) and intangible ones (efficient human resource, innovation program including R&D, strong brand name). In terms of value chain, Vinamilk has well-organized activities to create more values, from inbound logistics, operations, outbound logistics, marketing & sales to other support activities like procurement, technological development, human resource management and firm infrastructure. Thanks to the company strategy and core competencies, in which of brand name, distribution network , maintaining and developing good relationships with suppliers, human resource management and international technology, Vinamilk has made many progresses since establishment. They have 4 core brands which became very popular to Vietnamese particularly and Vinamilk had earned a huge benefit from these products. In this research, we also want to give some ideas for contributing to the current comprehensive strategy of the company development.
INTRODUCTION
A global economy enables all nations around the world exchange goods, services, people, skills and ideas across geographic borders (Hitt et al, 2007, p.7) [1]. Globalization increases the chances of competition among the companies. Thus, it is of great importance for the managers to have a new mind-set and for the company to develop a strategy at the aim of achieving its competitive advantage in
In the light of globalization, a well- established strategy makes a great contribution to the success of Vinamilk – the leading dairy company in Vietnam. Vinamilk chooses diversification strategy in order to reduce the risks, meet the customers’ higher demands and increase the competitive strength. The decision of diversification is based on the deep analysis about the company’s resources, value chain, core competencies, performance and product portfolio. As for resource audit, the report looks into both tangible resources (stable and effective financial situation, modern equipment, technology) and intangible ones (efficient human resource, innovation program including R&D, strong brand name). In terms of value chain, Vinamilk has well-organized activities to create more values, from inbound logistics, operations, outbound logistics, marketing & sales to other support activities like procurement, technological development, human resource management and firm infrastructure. Thanks to the company strategy and core competencies, in which of brand name, distribution network , maintaining and developing good relationships with suppliers, human resource management and international technology, Vinamilk has made many progresses since establishment. They have 4 core brands which became very popular to Vietnamese particularly and Vinamilk had earned a huge benefit from these products. In this research, we also want to give some ideas for contributing to the current comprehensive strategy of the company development.
INTRODUCTION
A global economy enables all nations around the world exchange goods, services, people, skills and ideas across geographic borders (Hitt et al, 2007, p.7) [1]. Globalization increases the chances of competition among the companies. Thus, it is of great importance for the managers to have a new mind-set and for the company to develop a strategy at the aim of achieving its competitive advantage in