i
THAI NGUYEN UNIVERSITY
SOUTHERN LUZON STATE UNIVERSITY
Socialist Republic of Vietnam
Republic of the Philippines
NGUYỄN THỊ SINH CHI
(English Name: MARIA)
Potential of Vietnam tea
in the internation market
TNU-SLSU, 2013
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Potential of Vietnam tea in the internation market
A RESEARCH PROPOSAL PRESENTED TO THE FACULTY OF GRADUATE SCHOOL
SOUTHERN LUZON STATE UNIVERSITY LUCBAN, QUEZON, PHILIPPINES
THAI NGUYEN UNIVERSITY S.R. VIETNAM
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE
DOCTOR IN BUSINESS ADMINISTRATION
Name: Nguyễn Thị Sinh Chi
English name: Maria
Advisor: Dr. Nelly L. Mendoza
2013
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ACKNOWLEDGMENT
First, I would like to sincerely thank Dr. Nelly L. Mendoza who was dedicated to guide,
encourage and help me overcome the difficulties in the course of study to complete my
thesis.
I would like to express deep gratitude to the teachers of the SOUTHERN LUZON
STATE UNIVERSITY lectured, contributed many valuable comments, help me a clearer
orientation in the process of implementation and completion of the dissertation I also would
like to thanks to the teachers of the International Graduate Study Programs have
facilitated rapid help in terms of procedures, processes during the course of the dissertation.
I would like to thank to the Managing Board of University of Social Labor Affairs has
facilitated support in terms of time for me to complete the course.
Please be affectionate towards friends, colleagues, was always encouragement, help and
support me throughout the process of doing the thesis. Sincerely thank Mr. Phan Minh
Thuy, Deputy Head of the legal department, Vietnam Chamber of Commerce and Industry
(VCCI), Vietnamese enterprises were answer survey investigation, leaders of enterprises
were willing to help and provide the data, documentation, figures related to the subject.
Finally, please send your profound gratitude to the loved ones of the family had be always
side by side, encouragement and motivation helps me overcome difficulties to complete the
thesis.
Sincere thanks!
The Author
Nguyen Thi Sinh Chi
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TABLE OF CONTENTS
Chapter I: INTRODUCTION................................................................................ 1
1.1. Introduction ...................................................................................................... 1
1.2. Background of the study ................................................................................... 1
1.3. Statement of the problem .................................................................................. 3
1.4. Significance of the study.................................................................................... 4
1.5. Subject and scope of research ............................................................................ 4
1.5.1. Subject of research.......................................................................................... 4
1.5.2. Scope of research............................................................................................ 4
1.6. Definition of terms ............................................................................................ 5
1.6.1. Concept of strategy ......................................................................................... 5
1.6.2. Concept of the world market entry strategy..................................................... 6
Chapter II: REVIEW OF RELATED LITERATURE AND STUDIES
2.1. Significance of planning the world market entry strategy of a sector for
development of national economy .......................................................................... 12
2.2. The world market entry strategy planning ........................................................ 13
2.2.1. Determination of the world market entry target ............................................. 13
2.2.2. Selection of the target market........................................................................ 14
2.2.2.1. Information collection for market selection ................................................ 14
2.2.2.2. Methods for target market selection ........................................................... 15
2.2.2.3. Selection of methods to chose the target market ......................................... 16
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2.2.3. Analysis of competition ................................................................................ 17
2.2.3.1. Analysis of business sector ........................................................................ 17
2.2.3.2. Analysis of national competitive advantage................................................ 18
2.2.4. Analysis of competitiveness.......................................................................... 20
2.2.5. Selection of competitive strategy .................................................................. 23
2.2.6. Selection of the world market entry methods................................................. 24
2.2.6.1. The world market entry from domestic production..................................... 24
2.2.6.2. The world market entry from foreign production........................................ 24
2.2.6.3. The world market entry in the free trade zone ............................................ 25
2.2.7. Marketing Mix strategy planning ................................................................. 26
2.2.7.1. International product strategy..................................................................... 26
2.2.7.2. International pricing strategy...................................................................... 26
2.2.7.3. International distribution strategy .............................................................. 27
2.2.7.4. International promotion strategy ............................................................... 28
2.3. Research on experience lessons of successful tea exporting countries in the world
and lessons learned for Vietnam ............................................................................ 28
2.3.1. Research on experience lessons of tea exporting countries ............................ 28
2.3.1.1. Sri Lanka ................................................................................................... 28
2.3.1.2. Kenya ....................................................................................................... 28
2.3.1.3. India .......................................................................................................... 29
2.3.1.4. China ......................................................................................................... 30
2.3.2. Lessons learned from Vietnam...................................................................... 31
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Chapter III: RESEARCH METHODOLOGY
3.1. Methods of data collection, processing and analysis......................................... 32
3.1.1. Subjects of survey......................................................................................... 32
3.1.2. Sources of data ............................................................................................. 32
3.1.2.1. Sources of secondary data ......................................................................... 32
3.1.2.2. Source of primary data .............................................................................. 33
3.1.3. Methods of data collection, processing and analysis...................................... 33
Chapter IV: PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
4.1. Research on the production, export and import of tea in the world ................... 35
4.1.1. General overview of the tea industry............................................................. 35
4.1.1.1. The major products of the tea industry in the world trading ........................ 35
4.1.1.2. Standard Requirements for tea exports ....................................................... 36
4.1.1.3. Standard Requirements for tea exports ....................................................... 37
4.1.1.4. Analysis of competition in the world tea industry....................................... 37
4.1.2. The situation of production and export of tea and analyzes the competitive
advantage of countries exporting tea....................................................................... 39
4.1.2.1. The situation in the world tea production ................................................... 39
4.1.2.2. The situation in the world tea exports......................................................... 41
4.1.2.3. Analysis of the competitive advantage of tea exporting countries .............. 42
4.1.3. Tea import situation, analyze the factors that affect the size and price of imported tea
and segment of the world market for tea products................................................... 46
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4.1.3.1. Overview of world tea import situation ...................................................... 46
4.1.3.2. Analysis of factors affecting import scale and import prices of tea importing
countries................................................................................................................. 48
4.1.3.3. World market segments of tea products...................................................... 49
4.2. The situation of Vietnam's tea production ........................................................ 54
4.3. The situation of Vietnam's tea export ............................................................... 55
4.3.1. In volume and export turnover ...................................................................... 55
4.3.2. Regarding exports......................................................................................... 55
4.3.3. Regarding export markets ............................................................................. 56
4.3.4. About enterprises involved in exporting tea .................................................. 59
4.4. The situation of the world market penetration of Vietnam tea .......................... 60
4.4.1. The objective of market penetration of the world in time for tea.................... 60
4.4.2. Status of research activities tea export market and identify your target market63
4.4.3. Status of competitive strategy ....................................................................... 64
4.4.4. Selection modes penetrate world markets...................................................... 67
4.4.5. Status of strategic planning of the Vietnam Tea Marketing Mix .................... 67
4.4.5.1. Strategy for Vietnam tea products .............................................................. 67
4.4.5.2. Strategy for Vietnam tea products .............................................................. 72
4.4.5.3. Distribution strategy for Vietnam tea products ........................................... 73
4.4.5.4. Promotion strategy for Vietnam tea products.............................................. 76
4.5. Assess the competitiveness of exporters Vietnam tea ....................................... 76
4.5.1. The importance of these factors constitutes the competitiveness for Vietnamese tea
export industry (determination of weights) ............................................................ 76
4.5.2. Analysis of the elements of Competitive capacity of exporters Vietnam tea .. 77
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4.5.2.1. Competitiveness of price............................................................................ 77
4.5.2.2. Competitiveness of governance capacity .................................................... 78
4.5.2.3. Competitiveness of manufacturing technology........................................... 78
4.5.2.4. Competitiveness of human resources ......................................................... 79
4.5.2.5. Competitiveness of export organizations .................................................... 80
4.5.2.6. Competitiveness of developing business relationships................................ 80
4.5.2.7. Competitiveness in research and development............................................ 80
4.5.2.8. Competitiveness of marketing .................................................................... 81
4.5.2.9. Competitiveness of financial ...................................................................... 82
4.5.2.10. Competitiveness of handling trade disputes.............................................. 82
4.5.2.11. Competitiveness of the brand ................................................................... 82
4.5.3. Integrated assessment of Competitive capacity of exporters Vietnam tea ...... 83
4.6. SWOT Analysis of Vietnam's tea export.......................................................... 84
CHAPTER V: FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1. Strategic goal of penetrating the world market for Vietnam's tea products in 2020 …89
5.2. Viewpoints development of Vietnam's tea exports in 2020............................... 91
5.3. Strategic Options for Vietnam's tea export ....................................................... 92
5.3.1. These strategies can be applied to Vietnam's tea industry.............................. 93
5.3.2. The strategic option for the Vietnamese tea industry ..................................... 94
5.3.2.1. For types of black tea packaged in 3 kg black tea Type .............................. 95
5.3.2.2. For types of green tea Pack on3 kg ............................................................ 98
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5.3.2.3. For types of black tea packing under 3 kg under 3 kg Pack black tea........ 100
5.3.2.4. For types of green tea packaging under 3 kg packaged green tea Type ................. 102
5.4. Marketing Mix Strategy for tea export products of Vietnam........................... 104
5.4.1. Strategy for Vietnam tea products ............................................................... 104
5.4.2. Pricing strategy for Vietnam tea products.................................................... 105
5.4.3. Distribution strategy for Vietnam tea products ............................................ 106
5.4.4. Promotion strategy for Vietnam tea products .............................................. 107
5.5. The implementation of strategic solutions penetrate the world market for
Vietnam'stea products in 2020. ............................................................................. 108
5.5.1. The main solution ....................................................................................... 108
5.5.1.1. Manufacturing solutions .......................................................................... 108
5.5.1.2. Processing solutions................................................................................. 111
5.5.1.3. Solutions to improve capacity planning, implementation strategy............. 111
5.5.1.4. Solution for research and development..................................................... 112
5.5.1.5. Solution of branding for Vietnam tea products ......................................... 113
5.5.1.6. Solutions to build linkages between actors in the value chain of the tea industry.114
5.5.2. The solution supports.................................................................................. 115
5.5.2.1. Solution of training and development of human resources........................ 115
5.5.2.2. Financial Solutions .................................................................................. 116
5.6. Recommendations ......................................................................................... 116
5.6.1. For State ..................................................................................................... 116
5.6.1.1. The policy plannings resource development raw material......................... 116
5.6.1.2. The policy to support the development of export markets......................... 117
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5.6.1.3. Improve policies and methods of management of the tea industry and tea
quality control ...................................................................................................... 119
5.6.1.4. The policy to encourage and support other ............................................... 119
5.6.2. For the Vietnam Tea Association ................................................................ 120
5.6.3. For Businesses ............................................................................................ 121
CONCLUSION.................................................................................................... 123
REFERENCES..................................................................................................... 125
APPENDIX.......................................................................................................... 128
LIST OF SYMBOLS AND ABBREVIATIONS
Abbreviation
Symbol
EFW
Economic Freedom of the World
GAP
Good Agricultural Practice
GCI
Global Competitive Index
GDP
Gross Domestic Product
HACCP
Hazard Analysis and Critical Control Point System
IGG
Intergovernmental Group on Tea
RCA
Revealed Comparative Advantage
SWOT
Strengths, Weaknesses,Opportunities, Threatens
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LIST OF TABLES
Table 2-1: Useful data for market selection ............................................................ 14
Table 2-2: Description of evaluation matrix for the enterprise’s internal factors ..... 22
Table 4-1: Planting area of each continent in 2000-2009 (1000 ha)......................... 40
Table 4-2: Export turnover of tea of the world, classified by type of tea (million USD)
............................................................................................................................... 41
Table 4-3: List of countries exporting tea into groups ............................................. 44
Table 4-4: Some characteristics of the group of countries exporting tea ................. 45
Table 4-5: Import prices of 05 tea importing countries having highest import prices
in 2005-2009 (USD/kg) .................................................................................... 48
Table 4-6: Results of world market segmentation ................................................... 50
Table 4-7: Area, products and exportation of Vietnam tea ..................................... 54
Table 4-8: Structure of exports tea of Vietnam (2008-20011) ................................. 56
Table 4-9: Average prices of Vietnam's tea export and of the world (USD / kg)...... 56
Table 4-10: The Major Export Markets of Vietnam Tea Products (million USD).... 57
Table 4-11: Some average indicators of Vietnam's tea export in the period of
2005-2009 according to the World Market Segmentation ....................................... 59
Table 4-12: The leading tea exporters of Vietnam in 2012 ...................................... 60
Table 4-13: One of the specific targets of the tea industry the period of 2000-2010 61
Table 4-14: Some average indicators of Vietnam exported green tea packed more
than 3kg the period of 2005-2009 according to the World Market Segmentation .... 69
Table 4-15: Some average indicators of Vietnam exported black tea packed more
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than 3kg the period of 2005-2009 according to the World Market Segmentation .... 69
Table 4-16: Results of survey of importance of the elements made up the
competitiveness of Vietnam tea export industry...................................................... 77
Table 4-17: Matrix on competitive capacity of Vietnam tea exporters .................... 78
Table 5-1: Some targets for production and exportation of tea industry .................. 89
Table 5-2: Some of the characteristics of each market segment for this type of
black tea packaged on 3 kg..................................................................................... 97
Table 5-3: Some of the characteristics of each market segment for this type of
green tea Pack on 3 kg............................................................................................ 99
Table 5-4: Some of the characteristics of each market segment for this type of
black tea packing under 3 kg ................................................................................ 104
Table 5-5: Some of the characteristics of each market segment for this type of
green tea packaging under 3 kg............................................................................. 103
LIST OF BOXES
Box 4-1: Competitive strategy by creating differentiation of Tan Cuong tea .......... 65
Box 4-2: The strategy of New Generation limited liability company....................... 66
Box 4-3: Tea products of Vinatea ........................................................................ 68
Box 4-4: The role of brand tea - Tea olong ............................................................. 71
Box 4-5: Build Vinatea's direct distribution channe ................................................ 75
Box 4-6: "Taste for tea of each country”................................................................. 81
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RATING SHEET
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Chapter I
INTRODUCTION
1.1. Introduction
Vietnam is considered to be the cradle of the world’s tea plants, ranks the 5th in the
world for tea cultivation and processing and the 8th for annual tea export. However,
building and spreading Vietnam tea brand is almost open. Any enterprise can produce and
process tea depending on their capacity. Most of the exported products are only in the
rough and unbranded form, causing the Vietnam tea to be confused or named under large
foreign tea firms. Nearly half a century for exporting tea to the world market, only a
symbol of three tea leaves with the trade name "Vinatea" helps the importers know
Vietnam tea.
At present, Vietnam's tea export is still concentrated in big markets such as
Pakistan, Taiwan, Russia, Afghanistan and China. Ten countries with high tea import
turnover from Vietnam in 2012 reached 224.6 million USD, accounting for 73 % of total
tea export turnover. Specifically, in 2012, Pakistan was the biggest tea export market of
Vietnam, reaching 45.3 million USD, accounting for 20.1 % of the total tea export turnover
of Vietnam. Secondly, it was Taiwan where Vietnam’s tea export turnover reached 29.5
million USD, accounting for 13.1 % of the total tea export turnover of Vietnam. Thirdly, it
was Russia where Vietnam’s tea export turnover reached 21.6 million USD, accounting for
9.6 % of the total tea export turnover of Vietnam. Only tea export turnover to these three
markets accounted for 42.9 % of total tea export turnover of Vietnam. Furthermore, if
comparing 10 major export markets occupying about 90% Vietnam's tea export turnover in
the early 2000s to those nowadays occupying about 73%, it is possible to indicate that the
diversification and expansion of market of tea-exporting enterprises is limited and such
expansion has not been diversified in depth.
1.2. Background of the study
Although tea plants have been grown and consumed in our country for so long, the
domestic tea market now accounts for about 20%. Thus, the majority of Vietnam's tea
products are mainly consumed by the world market with 80% of Vietnam's tea output.
Because Vietnam tea products are mainly consumed by the world market and relied on a
few key export markets, they are exposed to market risks. This situation can be seen clearly
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in 2003 when the Iraq market was collapsed due to wars. Before that, Iraq was the biggest
tea export market of Vietnam in the period 1995-2002 (making up about 40% of total
exports) and its collapse has caused great loss to tea-exporting enterprises and tea sector of
Vietnam. This shows that although in recent years the tea export market has been
expanding, the Vietnam tea-exporting enterprises have not established stable and strong
markets for export development. Consequently market diversification is urgently required
for the tea sector as well as for the tea-exporting enterprises in Vietnam.
Moreover, one of the major tea import markets in Vietnam is India, where is now
slowed down, while in previous years, the largest tea producing country in the world still
imported more thousands of tons of tea a year, including Vietnam tea for processing. There
are many markets refusing to import Vietnam tea such as Ireland, Belgium, Denmark,
Korea, Hong Kong, France and Sweden due to poor quality products. During the last time,
although tea-exporting enterprises have made efforts to diversify the market and in fact we
have entered some new markets, the volume and value of export is very limited.
In addition, the export performance of tea-exporting enterprises in Vietnam is very
low. This represents the distance between the world tea price and Vietnam’s tea export
price is quite high, ranging from 50-70% depending on each kind of tea.
According to the general report on development of the tea sector in ten years (19992009) at "the second International Conference on Vietnam Tea" which was held in July,
2010, for the last ten years, the targets of tea output, export volume, average yield and
material region area have been achieved or exceeded. However, the noteworthy issue was
the continuous decrease in export tea price. The price of Vietnam's export tea in June, 2010
was only 1.4 USD/ kg, while in 1998, it was 1.52USD/kg. This price gap is getting wider
than the average price in the large auctions in the world. In 2009, while the average tea
price in such auctions increased to 2.43 USD/kg, the Vietnam’s tea price was only 1.23
USD/kg.
Thus, from 1998 until now, the average export tea price in the world has increased
by 18%, but the price in Vietnam has reduced 20%. Therefore, in spite of ranking the fifth
in the world for tea export, the price is lower than the average price in the world, Vietnam
tea brand has not been widely known and particularly the income of tea growers is not
improved.
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Although the price of tea in the world depends on the annual supply-demand
relationship, the price difference of Vietnam and other countries is a challenge requiring
Vietnam tea sector as well as tea-exporting enterprises to overcome and to improve the
efficiency of export, and increase income for tea growers and effectiveness of the tea sector
in general.
The fact that Vietnam tea industry is facing significant challenges such as low
competitiveness, specificly product quality are not homogeneous, low added value, the
distributing system is not complete , the brand is still faint, ... Therefore the analysis,
assessment and putting forward solutions to improve the competitiveness of Vietnam tea
products is a matter of necessity.
Stemming from the above reality, this thesis studies on “Potential of Vietnam tea
in the internation market” to help Vietnam tea exporting enterprises develop comparative
advantages, overcome disadvantages, in order to improve the efficiency of tea exports.
1.3. Statement of the Problem
The dissertation does research into scientific and practical basis on the exports
market entry strategy planning for Vietnam tea products until 2020, potential of Vietnam
tea in the internation market, from which it proposes the world market entry strategy for
Vietnam tea products to help Vietnamese tea-exporting enterprises penetrate stable and
steady markets in the world.
Research questions:
The study aimed to answer the following questions:
1. What is the current status of tea production and export as well as world market
penetration of the Vietnam tea sector?
2. Which components of competitiveness are most important for tea-exporting
enterprises in Vietnam?
3. What market strategy shall be used to enter the world market for the tea sector
in Vietnam?
Specific objectives
Specifically, the research targeted to:
· Analyze and evaluate the status of supply and demand, import and export of tea
in the world market;
· Present experiences and lessons learned of successful tea-exporting countries in
the world;
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· Identify and analyze characteristics and competitive advantages of tea-exporting
countries and group tea-exporting countries;
· Analyze the factors affecting tea import scale and price of tea-importing countries
and segment the world market for tea products;
· Analyze and evaluate the status of Vietnam's tea export;
· Analyze and evaluate the world market entry of Vietnam tea;
·Analyze and determine the competitiveness of Vietnamese tea-exporting
Enterprises;
· Analyze and assess strengths, weaknesses, opportunities and threats for Vietnam’s
export tea sector;
· Propose the world market entry strategy for Vietnam's tea products; and
· Propose solutions to implement the world market entry strategy for Vietnam's tea
products.
1.4. Significance of the study
The contribution of this thesis is in the formulation of strategies to enter the world
market of Vietnam's tea products by 2020. The thesis is expected to systematize the
framework of planning the world market entry strategy for the tea sector. The thesis will
generally outline the world tea market and Vietnam’s tea production and export situation.
Basically, it shows the basics of the world market penetration of Vietnam tea during the last
time; identifies strengths, weaknesses, opportunities and threats for Vietnam's export tea;
and determines competitiveness of Vietnamese tea-exporting enterprises.
The author also describes a number of recommendations to the State, Vietnam Tea
Association and for businesses to help Vietnam tea industry can more effectively penetrate
into the world market.
In this thesis, the author only studied the exporters and importers in view of the new
national and strategic planning to enter the world market for the products of Vietnam's tea
industry perspective. Each specific business on the basis of this strategy will further
research on specific commodities, competitors and customers to conduct specific entry.
This is limited and further research directions of the thesis.
1.5. Subject and scope of research
1.5.1. Subject of research
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The research subject of the thesis is the world market entry strategy for Vietnam's
tea products.
1.5.2. Scope of research
· Space: The thesis researches on the world market entry strategy for Vietnam's tea
products in the importing countries with average tea import scale of from 250 tons /year
and above.
· Time: Time for surveying and collecting data is updated to 2012
1.6. Definitions of terms used in the research
1.6.1. Concept of strategy
According to normal meaning, strategy (originated from Greek as strategos) is a
military term used to refer to plans of disposing troops and distributing force with the
purpose of defeating the enemy. Carl von Clausewitz – a military thinker of the 19th
century - has described the strategy is "to plan war and campaigns to fight. Such campaigns
will determine each individual’s participation.” Today, business organizations also apply
the concept of strategy similarly as in the military.
According to James B. Quinn (1980), "Strategy is the integration of key objectives,
policies and activity chains of the enterprise into a whole."
According to Fred R. David, "Strategy is the means to achieve long-term goals."
According to Kenneth R. Andrews (1987), strategy is a plan of control and use of
organization’s resources such as people, property and finance with the aim to enhance and
ensure its essential rights. In his opinion, the strategy is what an organization must
implement based on its strengths and weaknesses in the context of opportunities and
threats.
According to Michael Porter (1996), the strategy is to create a harmony between
activities of a company, which produces the valuable and unique position. The essence of
strategy is to create difference in competition. According to him, the strategy is to create a
unique and valuable position, including differentiation and exchangeable choice in order to
gather the best resources from which to create advantages for the organization.
According to Johnson and Scholes (1999), strategy is to identify direction and scope
of activities of an organization in the long run, in which the organization must achieve
competitive advantage through the combination of resources in a changeable environment
in order to best meet the needs of the market and the expectations of the agents involved in
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the organization. By this approach, the strategy of an enterprise is formed to answer the
following questions:
· Where will business activities take place in the long run? (orientation).
· Which markets will business activities compete in and which scope of activities?
(market and scope of activities).
· How can business activities be conducted better than competitors in the market?
(advantage).
· Which resources (skills, assets, finance, personnel, technology, brand, etc) are
required to create competitive advantage? (resources).
· Which factors of the external environment do affect the competitiveness of the
enterprise? (environment).
From the above issues, the author believes that proper strategy has to be set to
achieve the organization’s basic long-term goals. However, ways to achieve such goals in
the best manner are always based on the organization’s strengths and weaknesses in the
context of opportunities and threats."
Opinions on the definitions of strategy mentioned above mainly refer to the strategy
for an organization and an enterprise, thus, they may apply to a specific sector or more.
According to the author, the concept of strategy above can be applied to a specific sector
because that strategy has firstly appeared in the military art with its meaning as a way to
win a war. Similarly in business, it is a must to indicate the way to develop, compete and
win competitors. In the author’s opinion, "strategy of a sector is a combination of its
basic long-term goals and implementation ways to achieve such goals in the best
manner, based on the strengths and weaknesses of the sector in the context of
opportunities and threats."
1.6.2. Concept of the world market entry strategy
There are many criteria to classify strategy; according to criteria of corporate
strategy levels, the strategy is divided into three levels: corporate level, business unit level
and functional level. Currently, with the trend of globalization, many companies change
their operation directions out of the national borders and it is said to a fourth strategy level
that is global strategy.
At corporate level, there are many strategies with different names, each author can
classify and name by their own way. According to Fred R. David, the corporate level
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strategy can be classified into 14 categories, including the market entry strategy. As a
result, the market entry strategy is to increase market share for products/services available
in the existing markets with greater marketing efforts. However, in this thesis, the world
market entry strategy is not approached by the concept above. The author approaches the
world market entry strategy from the point of view of international marketing.
From the point of view of international marketing, according to Nguyen Dong
Phong and his colleagues (2007), the world market entry strategy is regarded as a
marketing program used for product/market. Content of the world market entry strategy
basically comprises the following specific decisions:
· The company's objective to enter the world market
· Choice of appropriate target market to penetrate
· Selection of the world market entry methods
· Marketing mix strategy planning
· Distribution of resources to implement the strategy
· Organization for implementation of the strategy
· Supervision of the implementation of the world market entry strategy
According to Tran Minh Dao and Vu Tri Dung (2007), the world market entry
strategy includes decisions as follows:
· Define the company's objectives to enter the world market
· Select the market for penetration
· Select the market segments
· Analyze competition: analyze business lines and competitive advantage of
countries
· Select competitive strategy
· Select methods of market entry
· Build Marketing Mix strategy
Thus, the world market entry strategy is now often understood as a system of
opinions, orientation goals of business strategies, ways of the world market entry and
marketing strategies to bring products to effectively and steadily penetrate the world
market. In other words, in planning the world market entry strategy, enterprises must make
strategic decisions related to things such as: selecting competitive strategy in the world
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