INTERNATIONAL BUSINESS STRATEGY DOJI GROUP FUTURE DEVELOPMENT DIRECTIONS

TON DUC THANG UNIVERSITY
FACULTY OF BUSINESS ADMINISTRATION

INTERNATIONAL BUSINESS STRATEGY

DOJI GROUP – FUTURE
DEVELOPMENT DIRECTIONS

Lecture: Ms. Nguyen Thi Hong Hanh
Group 5 member:
1.
2.
3.
4.
5.
6.

Thai Le Thanh Vy
Tran Ngoc Anh Tho
Pham Nguyen Khanh Chi
Nguyen Phan Gia Tue
Nguyen Phuong Nam
Thai Diep Thao Nhi

719H0603
719H0797
719H1068
719H0574
719H0789
719H0468

Ho Chi Minh City, 15th Nov, 2022

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TABLE OF CONTENTS
INTRODUCTION……………………………………………………………………1
CHAPTER 1. COMPANY ANALYSIS.....................................................................2
1.1 Business model analysis canvas of DOJI........................................................2
1.1.1 Customer segments...............................................................................................................2
1.1.2 Value Porposition...................................................................................................................2
1.1.3

Channel......................................................................................................................................4

1.1.4 Customer relationship..........................................................................................................4
1.1.5 Revenue stream......................................................................................................................5
1.1.6 Key resources..........................................................................................................................5
1.1.7 Key activities...........................................................................................................................7
1.1.8 Key partners.............................................................................................................................9
1.1.9 Cost tructure...........................................................................................................................10
1.2 External analysis............................................................................................12
1.2.1 PESTEL anlysis....................................................................................................................12
1.2.1.1

Political...........................................................................................12

1.2.1.2

Economic.........................................................................................12

1.2.1.3

Social...............................................................................................13

1.2.1.4

Technological..................................................................................13

1.2.1.5

Environmental.................................................................................15

1.2.1.6

Legal................................................................................................15

1.2.2

Five forces framework.............................................................................16

1.2.2.1

Threat of new entrants.....................................................................16

1.2.2.2

The power of suppliers....................................................................17

1.2.2.3

The power of buyers........................................................................18

1.2.2.4

Threat of substitute products...........................................................18

1.2.2.5

Rivalry among existing competitors................................................19

1.3 Internal analysis through VIRO....................................................................20
1.4 Financial situation.........................................................................................21
CHAPTER 2. FUTURE GROWTH........................................................................24
2.1 Timeline of project:........................................................................................25
2.2 Implementation..............................................................................................26
2.3 Financial Plan:..............................................................................................28

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CHAPTER 3. CONCLUSION.................................................................................30
REFERENCES……………………………………………………………………...31

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LIST OF FIGURE
Figure 1.1 Logo of DOJI...............................................................................................2
Figure 1.2 Webside of DOJI Jewelry.............................................................................4
Figure 1.3 DOJI Jewelry Factory..................................................................................6
Figure 1.4 DOJI Tower..................................................................................................7
Figure 1.5 TP Bank - Member of DOJI group...............................................................8
Figure 1.6. Logo of DOJILand - Member of DOJI Group............................................9
Figure 1.7 The business results of DOJI.....................................................................22
Figure 2.1 The ground is considered...........................................................................27

LIST OF TABLE
Table 1.1 Business Model Canvas of DOJI.................................................................11
Table 1.2 VRIO Frame of DOJI..................................................................................21
Table 1.3 DOJI's business results for the last 3 years..................................................22
Table 2.1 Grantt of new project...................................................................................25
Table 2.2 Financial plan..............................................................................................29

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INTRODUCTION
The DOJI Group is one of the famous enterprises in the field of gold, silver,
jewelry, and gems in Vietnam. Accordingly, DOJI has made a strong mark in the
Vietnamese business community with its impressive revenue growth and growing
brand value. DOJI also dominates the domestic market with the gold bar trading

system, distributing Diamonds and high-end Jewelry. After the covid 19 pandemic,
Vietnam's current gold and jewelry market have more or less influenced. However,
DOJI still retains its position as a "big man" in the field of jewelry and gems and
competes with two other big competitors, PNJ and SJC. Because jewelry is a specific
industry, besides developing in foreign markets, the DOJI also pays special attention
to developing strategies in the Vietnam market.
In this report, we perform a performance analysis of DOJI's activities through
the canvas business model, VRIO framework, and the company's financial position.
We feel it is necessary to focus on further development in the Vietnamese market.
Analyzing the Vietnamese market by methods such as (PESTEL, Five Forces, ...)
shows the purchasing power, the development of the jewelry and gem industry after
covid, and the strong development of competitors such as PNJ, SJC,... Therefore, to
make a big change and gain more market share of DOJI, we propose a development
strategy to compete with PNJ in the next 3 years. Accordingly, we do the planning
with each phase.

Therefore, our report will include the following:

•

Chapter 1: Analysis of the company

•

Chapter 2: Analysis of the macro environment and future development

directions
•

Chapter 3: Conclusion.

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1

CHAPTER 1. COMPANY ANALYSIS

Figure 1.1 Logo of DOJI.
DOJI GOLD & GEMS GROUP COMPANY, formerly TTD Trading and
Technology Development Company, was established in 1994 by Mr. Do Minh Phu.
TTD became the first company to bring to the international market the Vietnamese
star Ruby stone product. Since then, the company has been named the world's star
Ruby king, bringing Vietnam to be depicted as a bright spot on the international
Gemstone map.
1.1 Business model analysis canvas of DOJI
1.1.1 Customer segments
DOJI targets the majority of female customers, with diverse ages but focusing
more on adult age. Customers that DOJI targets are people with high income and
understanding of the value of the jewelry industry.
1.1.2 Value Porposition
DOJI always committed to bring customers top quality products for personal
values and the essence of life. The motto of VALUES OF PRODUCTS - CORE
SERVICES (BLUE CHIPS) is considered as a red thread throughout the Group's
production and business activities.
DOJI products always come with criteria that competitors can hardly follow:

beauty, long lasting, unique, elegance, creativity, high quality, innovation, physical
evidences, satisfaction.
 Beauty:
DOJI Group's constant efforts to create jewelry products are not out of the
question of beauty and beauty.
 Long lasting:
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DOJI jewelry products have lasting value over time not only thanks to their
eternal materials but also because of their delicate designs. It is easy to imagine when
DOJI's products are carefully preserved by customers for the next generation as a
meaningful gift.
 Unique:
The difference and uniqueness in the design of DOJI will not be able to be
mixed with other brands, helping customers to own their own unique products.
 Elegance:
DOJI high-class jewelry products are a combination of the quintessence of the
earth (with precious materials produced from the ground) and the quintessence of
people (with the talented hands of a jeweler).
 Creativity:
Modern technology can replace the steps of jewelry production, but creativity
cannot be replaced by any machine. DOJI's design experts with extensive experience
and outstanding creativity are able to create unique products that are loved by a large
number of customers.
 High quality:

DOJI's gem and diamond products are tested by world famous gemological
institutes such as: GIA, HRD, IGI... In addition, determining the quality of products is
the development of the Group, the Center. DOJILAB accreditation was established.
This is a prestigious testing center with modern machinery and leading experts in
Vietnam, cooperating with famous foreign inspection centers such as Thailand,
Singapore, Germany...
 Innovation:
DOJI Group always updates the latest jewelry trends in fashion capitals of the
world such as the UK, France... to launch the most trendy jewelry products.
In the field of design, besides domestic experts and artisans with decades of
experience, DOJI Group also cooperates regularly with experts from Matsumi
Company (Japan). The Group also has many years of cooperation with the world's
leading suppliers of gems and diamonds.
At the same time, DOJI Group also regularly cooperates with partners around
the world to apply modern machinery and production technology to create
sophisticated products.
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 Physical evidences:
DOJI high-end jewelry products are manufactured according to standard
processes with the support of modern machinery and equipment. From the stage of
design, prototyping with the ingenuity and sophistication of human hands to finishing
products with equipment imported from Japan, special attention is paid.
In jewelry manufacturing activities: Besides traditional processing methods,
DOJI Group uses a modern industrial method of cutting and grinding gemstones that

can cut and sharpen all different types of gemstones including Diamond. Invisible
Setting - one of the advanced technologies in the world applied by DOJI Group to
create the highest quality jewelry products.
1.1.3 Channel
Direct: DOJI has a system of nearly 100 distribution centers of gold, silver and
jewelry, typically in big cities such as Hanoi, Ho Chi Minh City, Da Nang, etc., and
nearly 500 agents in many provinces and cities across Vietnam.
Indirect: Customers can buy any product of DOJI Luxury Jewelry through ecommerce service with website trangsuc.doji.vn. Furthermore, DOJI also have a wide
network such as: Facebook, Zalo, Instagram, Youtube,..

Figure 1.2 Webside of DOJI Jewelry.
1.1.4 Customer relationship

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DOJI Jewelry always has the best after-sales service and customer care policy,
including warranty policies, exchange policies, installment policies to bring maximum
benefits to customers.
DOJI launches many special promotions on each occasion of Tet holiday or
wedding season, such as promotion program for the season of love, welcoming the
new month peacefully,... to attract more customers. For customers who are members
of DOJI, DOJI always gives exclusive E-vouchers on birthdays, holidays and Tet.
1.1.5 Revenue stream
•

Revenue from product sales

•

Revenue from investment in real estate (DOJI Land)

•

Revenue from restaurant services. (JadeMoon Premium Chinese Restaurant).

•

Revenue from banking and finance sector (TP Bank).

1.1.6 Key resources
 Factory to manufacture gold, silver and gems at Hanoi
The factory was started construction with a total construction capital of more
than VND 300 billion, an area of over 10,000 m2 and has more than 5,000 m2 of
workshops. DOJI Jewelry Factory is invested in scale, spacious equipment, modern
jewelry production line.

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Figure 1.3 DOJI Jewelry Factory.
 Many golden lands in Hanoi and Ho Chi Minh City:

-

DOJI Tower Building, the largest Center of Gold, Silver, Gems and Jewelry in
the country at 5 Le Duan, Ba Dinh District, Hanoi, 16 floors high and 3
basements; total usable area 18,883 m2;

-

Office building Ruby Plaza at 44 Le Ngoc Han, Hai Ba Trung district, Hanoi,
17 floors; total usable area 12,000 m2;

-

Jewelry, Jewelry and Office Building at 214 Phan Dang Luu, Phu Nhuan
District, Ho Chi Minh City, 10 floors high; total usable area 4,454 m2;

-

Ruby Tower office building at 81-83-85 Ham Nghi, District 1, Ho Chi Minh
City, 20 floors high, total usable area 13,500 m2.

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Figure 1.4 DOJI Tower.
 Engineers and experts, workers.

DOJI Group has a total workforce of nearly 3,000 employees who are
engineers gem experts and workers are all professionally trained, seasoned with
experience to ensure serious and effective work progress… In which, up to 25% of
people have seniority of more than 10 years, seniority of more than 20 years also
reaches nearly a hundred people. Many employees have been with the company since
its inception and are holding important positions.
 Modern specialized machines.
Modern and abundant equipment and machinery are all imported from Korea,
Thailand, China... the countries with the world famous gem processing technology
today.
1.1.7 Key activities
As a multi-industry corporation, DOJI's 3 main pillars are currently Gold,
Silver and Gems business, real estate and banking and finance.
 Gold, Silver and Gems business:
DOJI Group is constantly developing outstandingly in the key fields of Gold,
Silver and Gems (spanning from activities of Mining, Gemstone cutting, Jewelry
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production; Gold bar trading; Exporting; Importing and trading in gold jewelry and
fine art; Expanding the chain of Jewelry Centers, which is also their main activity.
In 2020, DOJI Jewelry Group officially takes over Diamond World Company,
creating a product distribution system covering most regions of Vietnam.
 Banking and financial sector (TP Bank):
In early 2012, DOJI Group officially expanded its business into the field of
Finance and Banking and became a strategic shareholder of Tien Phong Commercial

Joint Stock Bank (TPBank).

Figure 1.5 TP Bank - Member of DOJI group
 Real Estate (DOJI Land):
Along with trading in gold, silver, gems and finance - banking, Mr. Do Minh
Phu's group chose to make real estate a key and important field in its development
strategy. By November 2014, DOJI Land Real Estate Investment Co., Ltd was
established to implement real estate projects.
Currently, DOJI owns a lot of golden land in Hanoi and Ho Chi Minh City,
besides focusing on projects in the center of Ha Long, Hai Phong, Hanoi, Vinh Phuc.

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Figure 1.6. Logo of DOJILand - Member of DOJI Group.
1.1.8 Key partners
 De Beers – the world's leading diamond company and IIDGR – the
International Institute of Diamond Grading & Research
On September 15, 2017, DOJI Group officially cooperated with, which started
with the combination of diamond testing of DOJILAB (DOJI Institute & Laboratory
For Gemology And Jewelery – DOJI Institute of Gemology and Jewelery) and IIDGR
(the International Institute of Diamond Grading & Research, a De Beers company).
 BIDV Bank – a provider of comprehensive financial solutions.
On May 31, 2022, BIDV and DOJI signed a comprehensive cooperation
agreement for the period of 2022-2027. According to the cooperation agreement,
BIDV will be the provider of comprehensive financial solutions for DOJI Group such

as banking products, securities, insurance, financial restructuring, bond issuance
consulting, centralized cash flow management, e-banking system connection,
distribution chain financing…BIDV and DOJI have always been together and trusted
partners of each other since 2019 until now, using the system together. system of each
party to cooperate in promoting the brand, cross-selling products and services,
creating sustainable value for each party, the community and society.
 Suppliers of equipment and machinery:
DOJI Group has a close cooperation in equipment and machinery with large
domestic and foreign companies such as Vietnam Coal and Minerals Group, Inmacbc
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Company of Japan, Beauty Gems Company. Thailand's Hatta Gems, Taiwan's Hatta
Gems, etc. Some equipment and machinery such as grinding, polishing, cutting, and
underground cutting machines... are imported from Korea, Thailand, China... are
countries with a strong background. world famous gem processing technology today.
1.1.9 Cost tructure
•

Labor costs

•

Building factory, machinery systems costs: The factory was started construction
with a total construction capital of more than 300 billion VND

•

Invest in Bank and Financial sector: DOJI Group supports TPBank in finance and
management capacity, especially in gold trading. Accordingly, TPBank has
increased its charter capital to VND 5,550 billion

•

Product research and development costs

•

Sales and Marketing costs

•

Administration costs

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Key Partners
• De Beers – the
world's
leading
diamond company.

• IIDGR
–
the
International
Institute of Diamond
Grading
&
Research.
• BIDV Bank – a
provider
of
comprehensive
financial solutions.
• Vietnam Coal and
Mineral Corporation
–
Suppliers of
equipment
and
machinery.

Key Activities
Value Proposition
Customer relationships
Customer Segments
• Mine and crafting gems.
• The motto: VALUE •Service quality to improve DOJI targets the
• Manufacturing
gold
PRODUCTS

–
customer
experience majority of female
jewelry.
CORE
SERVICE
through flagship stores.
customers,
with
• Buying and selling gold
(BLUE
CHIPS) •There are warranty policies, diverse ages but
bars.
brings true value to
exchange
policies, focusing more on
• Real Estate Investment.
customers.
installment
policies
to adult age. Customers
• Financial.
• DOJI
products
guarantee customers' rights. that DOJI targets are
always come with
people with high
Channels
Key Resources
criteria

that
income
and
• E-commerce service with
• Factory to manufacture
competitors
can
understanding of the
website trangsuc.DOJI.vn
gold, silver and gems at
value of the jewelry
hardly
follow:
• Network:
Facebook,
Hanoi.
industry.
beauty, long lasting,
Instagram, Zalo, Youtube,..
• Many golden lands in
unique,
elegance,
• A system of nearly 100
Hanoi and Ho Chi Minh
creativity,
high
distribution centers.
City
quality, innovation,
• Nearly 500 agents.

• Engineers and experts,
physical evidences.
workers.
• Modern
specialized
machines.
Revenue Stream
Cost tructure
• Revenue from product sales
• Labor costs
• Revenue from investment in real estate (DOJI Land)
• Building factories, machinery systems costs
• Product research and development costs
• Revenue from restaurant services. (JadeMoon
• Sales and Marketing costs
Premium Chinese Restaurant).
• Administration costs
• Revenue from banking and finance sector (TP
Bank).
Table 1.1 Business Model Canvas of DOJI
1.2
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1.3 External analysis
1.3.1 PESTEL anlysis

1.3.1.1 Political
In general, Vietnam has a stable political economy, creating favorable
conditions for economic development, attracting foreign investment, solving labor
problems, promoting economic growth, and having a strong impact on the economy
increasing consumer demand.
The Government has made important policies related to the DOJI's field of
activities, such as Government Decree 24 on gold business management or Circular
22 of the Ministry of Science and Technology on measurement management in gold
trading and quality management of jewelry and fine art gold circulated on the market.
 These regulations have made the management and administration of the gold,
silver, and foreign exchange markets more organized and have also adjusted the
quality of jewelry management in the direction of standardization, creating
favorable conditions and protecting the rights of consumers.
 These policies create good conditions for the units to do business seriously,
and methodically, helping the market develop better..
1.3.1.2 Economic
Deputy General Director of the DOJI Group Mr. Duong Anh Tuan said: "DOJI
Group is one of the few enterprises that have consistently achieved high positions in
the VNR500 table of rankings since 2010. In the context of the country's economy has
not really prospered and still faced many challenges, this is an objective recognition
for the efforts of the DOJI Group during the past".
Looking back at the economy of the country, through the survey reports of the
Vietnam Chamber of Commerce and Industry for the past 3 consecutive years, all
have made a basic remark with the data show. The number of small and medium-sized
enterprises, even small and micro, has increased rapidly and the number of large-scale
enterprises has decreased or the number of large enterprises has been difficult but the
business has narrowed down.
Back to the revenue growth of the DOJI Group. With the key business of
jewelry, the product is deeply affected by the factors of economy, politics, domestic
monetary policy, and major economies in the world. It is said that achieving a

phenomenal growth rate (from VND 5,258 billion in 2008 to VND 20,000 billion in
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2010) and sustainable growth (from VND 30,000 billion in 2011 to VND 40,500
billion in 2015) is an excellent achievement of this Group.
Continuing for 6 consecutive years holding a high position in the VNR500
rankings, achieving the national brand name of Vietnam, DOJI Group is becoming
more and more steadfast on the challenging and arduous journey ahead. This is also a
great source of power for DOJI Group to constantly strive for the aspiration to
conquer the domestic market in general, to reach out to regional and international
markets in particular
1.3.1.3 Social
Each country and territory has its own unique cultural values and socio-cultural
factors and these factors are the characteristics of consumers in those regions.
The economy has developed, people's living standards have been improved,
from just meeting material needs, now towards spiritual enjoyment. People are more
and more inclined to beautify themselves. In Vietnam, the demand for jewelry is very
high and popular. According to the custom in Vietnam, Vietnamese people often tend
to use gold jewelry as a gift to give and express the purpose in wedding ceremonies.
Besides, the common habit of Asians likes to hoard gold and jewelry when they
need to save. Therefore, these are also advantages that help DOJI's gold jewelry
industry to still grow while the economy is relatively difficult.
According to the General Statistics Office, Vietnam has a population of 91
million people with 70% of the population in the age group from 15 to 64 years old, in
working age. In which, 51% of the population is female, creating an abundant jewelry

shopping force. In the long term, the Vietnamese people's culture of hoarding gold and
using gold jewelry ensures a stable market for DOJI that can continue to develop in
the future.
 Due to the domestic operation, the ability to understand and grasp the culture
and traditions of the people is very good, thereby adjusting the strategy and
business direction to target the consumption market. That is also an advantage
that the Company currently has.
1.3.1.4 Technological
After the covid pandemic, technology is increasingly popular, expanding in
almost every industry. For the gold, silver, and gem industry in Vietnam, technological
innovation is an extremely necessary issue. Because the needs and tastes of customers
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for products are increasingly high, the product must have a new design, a variety of
lines, and a large number of. Because of those requirements, it requires a huge human
resource and leads to a lot of costs for businesses. However, with the outstanding
development of science and technology, machinery and equipment manufacturing has
reduced the production cost problem of enterprises. Therefore, the use of equipment
and machinery is inevitable. One such example is laser engraving technology, which
has produced goods with incredibly rich and diversified designs that are acceptable for
consumers' tastes.
Additionally, enterprises in the gold, silver, and jewelry sectors bravely
invested in and deployed numerous cutting-edge tools and technology when Vietnam
joined and became a member of the World Trade Organization (WTO). High-tech
materials were imported from nations all over the world, including Germany, the

United States, Italy, Japan, etc., and produced a large number of gold and jewelry
products that met worldwide quality and standards. Businesses also employ those
machines for a variety of technological equipment and machinery chains to
synchronize jewelry manufacturing and produce items that are high art, beautifully
designed, and on-trend. A focus on the present and a price that appeals to customer
desires.
To ensure that Vietnamese businesses can compete with foreign ones, there are
already several companies in Vietnam that specialize in providing machinery and
equipment for the gold, silver, and jewelry industries. However, there are still some
machines and technologies in Vietnam that have not yet met the needs of businesses,
so Vietnamese businesses still have to buy abroad and the cost of those machines and
technologies is extremely high. Therefore, that requires businesses to have enormous
financial resources. This can be seen as one of the cost challenges that jewelers must
carefully consider to bring the best benefits to their company.
Besides, with the development of technology in Vietnam, it can be seen clearly
that the shift from traditional shopping to online shopping is now clear. Vietnamese
businesses use data analysis and digital marketing to create tailored services, products,
and strategies to give customers the greatest possible experiences. Customers' online
purchasing forms can be accessed, updated, and developed, which gives the firm the
chance to both sustain and grow its current market.

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One example in the application of science and technology to the production of
gold and silver jewelry can be mentioned DOJI Group. Accordingly, DOJIhas

pioneered the application of technology in the production process and constantly
innovated products, DOJI Jewelry has created leading product lines. Since then,
continuous success in all product segments such as Diamond House Diamond Jewelry,
Wedding Land Wedding Jewelry, Gems City Color Stone Jewelry, and Loc Phat Tai
Gold Jewelry with thousands of pieces.
In general, it can be said that technology is both a strength and a difficulty for
businesses. Businesses can increase their market share and engage in more effective
competition thanks to technology. Technology plays a part in the company's ability to
maintain its position in the market.
1.3.1.5 Environmental
Consumers in today's culture are always worried about environmental issues.
As a result, everyone is particularly concerned about topics like social stability and
safety as well as environmental sustainability. Therefore, businesses require solutions
for the whole product life cycle, from inventory handling to supply chain
management. In particular, the area that requires attention is the jewelry business. The
origin of the product and the components that make it up are the essential issues. The
majority of the raw materials used in the jewelry industry's production come from
mining operations, like gold resources. However, because gold is a valuable resource,
the government has long been concerned about the issue of gold mining. Besides,
Vietnam is also moving towards a green industry, focusing on economical use and
efficient exploitation of mineral resources.
The DOJI Group is considered to have done well in terms of mining. The proof
is that since the establishment of the company, DOJI has not received any complaints
or related complaints from the government about the company's mineral exploitation.
This also proves that DOJI is a company worth paying attention to and investing in..
1.3.1.6 Legal
In Vietnam, the jewelry industry is considered a very special industry.
Vietnamese people have a hobby of buying gold to hoard. This industry is also very
interesting to the state. Before that, the market had almost no common standard for
gold jewelry products. Most gold shops buy from wholesalers or do it themselves.

That leads to the situation that there are some cases of gold shops "cheating" during
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the golden age. To protect the interests of consumers. The State Bank of Vietnam has
issued Circular 22/2013/TT-BKHCN stipulating that gold jewelry and fine art must be
suitable and consistent with standards of quality and measurement. Products must be
stamped with symbols, and gold content on each product to be circulated on the
market. The allowable error level is only 0.1 - 0.3%. In addition, measuring
instruments must also be quality checked by the Department of Standards, Metrology
and Quality, affixed with standard stamps, and sealed with lead clamps to be used in
business.
For international integration as well as creating development conditions for
businesses. Accordingly, the State Bank issued Decision 03/2006/QD-NHNN dated
January 18, 2006, allowing businesses and commercial banks to trade gold on their
accounts. There are also decrees 24/2012/ND-CP on the management of gold trading
activities. Accordingly, helping to make the gold business environment more healthy.
In addition, the Ministry of Finance also issued a tax reduction policy to
support businesses in importing gold materials, which is Decision No. 25/QD-BTC.
With the issued regulations, it will be both an opportunity and a challenge for
businesses to grasp and develop more with the gold, silver, and jewelry industry in the
Vietnamese market. In addition to the application of regulations and laws for the
company to develop more in the market, compliance with the law also plays an
important role to minimize the disadvantages that may affect the image of the
company. of the company. Typically, DOJIGroup has many stores in provinces and
cities in the country. Compliance with regulations is considered a top factor for DOJI

in maintaining and operating stores. Accordingly, DOJI stores must strictly comply
with product quality and product reliability censorship standards to avoid lawsuits and
fines that affect the company's brand image. DOJI also pays taxes on time according
to the law so that the company is not subject to administrative penalties as well as
leading to a more serious situation than being forced to go bankrupt.
1.3.2 Five forces framework
1.3.2.1 Threat of new entrants
DOJI is increasingly pressured by the threat of entry from competitors with
foreign corporations that have just entered Vietnam such as Prima Gold (Thailand),
Pandora (Denmark), and Swarovski (Austria),... Revenue will probably go down,
there will be more choices for customers.
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The economies of scale are quite difficult to achieve in the industry in which
DOJI operates. This makes it easier for large-capacity producers to dominate costs. It
also makes production expensive for new entrants. Investment should emphasize
advertising services to attract customers. All of these factors make the threat of new
entrants a weak force in this industry.
However, the capital requirement in the industry is very high, making it
difficult for newcomers to start a business because of the high cost. Capital investment
is also high because of high research and development costs. All these aspects make
the threat of new entrants a weaker force in the gem and jewelry industry.
Government policy on the industry requires strict licenses and legal
requirements must be met before licensing to new entrants begins selling. Moreover,
the criteria for approval are very harsh, so it becomes difficult to become a product

distribution representative. Therefore, making the threat of newcomers a weak force.
DOJI can take advantage of the economies of scale that companies have in the
industry, against the forces of new entrants through cost advantages to prevent this
force from becoming stronger in the future. And most importantly, it focuses on
design innovation and quality to easily distinguish it from new entrants. DOJI can
invest because of the high research and development costs. All these aspects make the
threat of new entrants a weaker force in the gem and jewelry industry. DOJI can invest
more in advertising strategy, marketing, and brand recognition. strong brand. This will
help retain customers instead of losing them to new entrants.
1.3.2.2 The power of suppliers
With the force and the larger number of suppliers in the industry of the DOJI
gem group than the buyers, there is no need to expand the supplier. This means that
suppliers have less control over prices and this makes the supplier's bargaining power
a weak force.
Products offered by these vendors are comparable in design and quality and
have a low conversion cost. This makes it easier for DOJI customers to switch
suppliers. This makes the bargaining power of suppliers become a weaker force.
And most importantly, the gold, silver, and gem industry that DOJI operates is an
important customer for suppliers. It means that the industry's profits depend on the
profits of its suppliers.

Therefore, suppliers must list reasonable prices. This

makes the bargaining power of suppliers a weaker force in the industry.
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In short, with the supplier's bargaining power, DOJI can get raw materials from
wholesale suppliers at affordable prices. If the cost or product does not match the
DOJI, then they can switch suppliers for a more reasonable price.
DOJI may have multiple suppliers to meet its supply chain requirements. For
example, DOJI may have different suppliers for each facility in different supply
chains. In this way, it can ensure efficiency in its supply chain.
As noted above, as the industry is an important customer for its suppliers, DOJI
can develop close relationships with suppliers for mutual benefits.
1.3.2.3 The power of buyers
The number of suppliers in DOJI's gold, silver, gems, and diamond industries is
more active than the number of companies that manufacture the product. This means
that buyers have a few companies to choose from and therefore don't have much
control over pricing. This makes the bargaining power of buyers a weaker force in the
industry.
Product differentiation in this industry is so high that the customer has a lot of
power when there are many products and when the customer has many alternatives to
buy. That means it is very difficult for buyers to find a substitute product or an
alternative company that manufactures a particular product. Since then, the bargaining
power of buyers has become a weaker force in the industry.
In addition to price, quality and design are also important to buyers and loyal
customers. For these buyers, there is less price pressure, which makes buyers'
bargaining power a weaker force in the industry.
So DOJI jewelry and gems should continue to focus more on innovation that
makes a difference to attract more buyers. Product quality remains a top priority,
creating exclusive products to impress customers. It needs to build a large customer
base because the bargaining power of buyers is very weak.
 DOJI can take advantage of economies of scale to develop cost advantages and
sell at low prices to low-income buyers. In this way, an important potential
market can be easily reached. DOJI may take measures to reduce buyer power

by implementing loyalty programs or by differentiating its products and
services.

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1.3.2.4 Threat of substitute products
The existence of products outside the boundaries of the common product
boundary increases the trend of customers switching to alternative products. To
explore these alternatives, one has to look beyond similar products that are branded by
competitors.
There are very few substitutes available for products manufactured in the
industry in which DOJI operates. A small number of available substitutes are also
made by low-margin industries. That means it does not have the highest value in terms
of maximum profits that companies can earn in the gold, silver, and gem businesses.
All of these factors make the threat of alternative products a weaker force in the
industry.
So, to make this force not stronger in the industry in the future, DOJI needs to:
o Firstly, there is still a need to focus on improving the quality of products
supplied to the market. Based on that, get the trust of customers, attract more people,
and provide higher quality products but at a lower price than high-quality high-quality
alternatives.
o Secondly, DOJI should focus on developing proprietary products,
proving itself to be the only source of supply to the market, and not easily
transitioning to alternative products that cannot provide these unique benefits. To be
able to meet the DOJI needs to understand the needs of customers through market

research and towards the customer's wishes.
1.3.2.5 Rivalry among existing competitors
Finally, examine the current level of competition in the market, which is
determined by the number of current competitors and the capabilities of each
competitor. Competition is high when there are many competitors of equal size and
strength when the industry is slow to grow and when it is easy for consumers to switch
to low-cost competitors.
Competitors:
o Domestic joint-stock companies: Saigon Jewelry Company Limited
(SJC), Bao Tin Minh Chau Jewelry Company, etc. These companies are
gradually improving and affirming their position. their own in the
marketplace.

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o Private businesses and stores: Diamond World, Silver Cricket, Kute
Jewelry... This is a group of competitors that can capture the tastes of
customers and is the main competitor in the popular jewelry market.
Currently. In the future, they will be strong competitors.
o Foreign companies: Design International France and Pranda Thailand
are operating on a large scale, with modern technology, experience in
marketing as well as the financial potential for advertising, and
establishing a network. retail in our country's market.
Especially rival PNJ, which is highly appreciated in the country and in the
region. With a wide range of skin types from popular to high-end and many unique

designs but the price is reasonable, it is suitable for many customers and meets the
needs of agent stores in provinces throughout the country. . Moreover, the initial
charter capital of PNJ is also many times larger than that of DOJI (PNJ is 24600 mil
while DOJI is 4500 mil). In addition, the popularity and brand recognition with
customers is also more (eg: PNJ's Facebook fan page is 1.2 million while DOJI has
only 600k more,...). That shows that DOJI needs to try harder and contribute more to
competitive activities to achieve market leadership. This makes competition between
existing companies a challenge. stronger force in the industry.
In addition, competition will be more intense when exit barriers are high,
forcing companies to stay in the industry despite falling profit margins. Barriers to exit
can be long-term loan contracts and high fixed costs.
The strategies of the companies are different, which means they are unique to
each other. This resulted in them running directly into each other strategically. This
makes competition between existing companies a powerful force in the industry.
In the DOJI jewelry, gold, silver, and gemstone manufacturing business, with
positive growth, competitors are less likely to get involved in the actions and capital is
qualified to do business. This makes competition between existing companies a
weaker player in the industry. For each different company in this industry, products
are manufactured with different supply and demand benefits. Therefore, it is difficult
for companies to compete for each other's customers because each of their products is
unique. This makes competition a weaker force in the industry.
As the industry is in a growing phase, DOJI may start to focus on new
customers instead of competing with customers from other companies. And it is
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necessary to have an in-depth market research plan to understand the supply and
demand situation in the industry and limit overproduction.
1.4 Internal analysis through VIRO
The VRIO model created by Jay Barney helps businesses analyze the
company's resources and competitiveness. The purpose of this is to find out if those
strengths can create a sustainable competitive advantage. Coming to DOJI, they
always understand consumers in each region to "tailor" according to requirements and
meet all needs for product quality and design, continuously promoting competitive
advantages. The following is a more specific breakdown of DOJI's VRIO model:

Location
Promotion activities
Product diversification
Quality of products
Modern equipments
Customer services

V

R

I

O

Valuable

Rare

Inimitable

Organized

YES

NO

NO

YES

YES

YES

NO

YES

YES

YES

YES

YES

YES

YES

NO

YES

YES

NO

NO

YES

YES

NO

NO

YES

Table 1.2 VRIO Frame of DOJI.
My team evaluates based on 6 basic factors that a jewelry company needs such
as: location, promotion, product diversification, product quality, modern equipment
and customer service.
To maintain its current position, DOJI always focuses on investing in product
diversification but must have unique characteristics. Know how to please customers of
all ages, meet the needs of Stocking - Fashion - Gifts at the same time. Constantly
rising up, researching and applying science and technology to production with the aim
of diversifying products. DOJI is proactive, creating competitive pressure with itself

and leading the market, causing many units in the industry to pursue when creating
unique products, positioning high-end jewelry brands in the Vietnamese market. Male.
For example, in recent times, DOJI Jewelry has become a partner of the world's
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