marketing cho sản phẩm xe đạp của công ty xe đạp thống nhất có thể xâm nhập vào thị trường của nền văn hóa châu âu e

MARKETING CHO SẢN PHẨM XE ĐẠP CỦA CÔNG TY XE ĐẠP THỐNG NHẤT CÓ THỂ
XÂM NHẬP VÀO THỊ TRƯỜNG CỦA NỀN VĂN HÓA CHÂU ÂU
Marketing planning for the bicycle of Thong Nhat Company entering the European
markets (France, Germany, UK, Italy, Spain, Belgium, and the Netherlands). When
analyzing, apply the CAGE model.
I-Concepts:
1. the concept of multi-national Company: multinational company, often
abbreviated as MNC or MNE (Multinational Enterprise), is the concept referring to
manufacturing companies or service providers in at least two countries.
Multinational companies may be classified into three major groups based on the structure
of the production means:
- Multinational companies "in horizontal" produce the same or similar products in
the different countries (e.g., McDonalds).
- The multinational companies “in vertical” have factories in some countries to
produce products which are inputs for its production in other countries (e.g. Adidas).
- Multinational companies “in multi-dimensional” have factories in different
countries that cooperate in both horizontally and vertically (e.g. Microsoft).
2 - Business Strategy: Business Strategy - is more concerned with how a business
can compete successfully in a specific market. It involves the strategic decisions on the
selection of products to meet customer demand and gain competitive advantage over
competitors, exploit or create new opportunities...
3 - The definition of culture: Culture is the seen behaviors and values and the
separately intangible beliefs for each society. Those value systems are ingrained in society
and transmitted from generation to next generation.
II-Marketing plan for the bicycles of Thong Nhat Company can enter the
European market (France, Germany, UK, Italy, Spain, Belgium, and the
Netherlands). Analyzing with CAGE model?

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As we all know Bicycle is just a simple mean of transport but it has more
convenient than other means, because it helps to reduce CO2 emissions and traffic
congestion. The affordable transportation for the poor also contributes to improve health
and lose weight without drugs.
Reseaches show that bicycle helps save space in traffic and parking. Six bicycles on
street with space is only equivalent to space for a car rolling. In parking lot, parking area
for 20 bikes is equivalent to a parking area for one car. Bike shows the wonder in the
effectiveness of design when only an investment of £ 22 for steel and rubber provides
three benefits: Flexibility in traffic; Helping to balance caloric intake and out of the body;
helping to reduce heart diseases, osteoporosis, arthritis and strengthening the body's
immune system.
During the period of 1990 to 2002, the average global bicycle production is 94
million bikes per year, before increasing to 130 million bikes in 2007, far exceeding the
output of 70 million cars in the same year.
Catching large demand, we Thong Nhat Company intend to export bikes from
Vietnam to serve European people (France, Germany, UK, Italy, Spain, Belgium, and the
Netherlands). For effective marketing plan, we will explore the European market based on
the following aspects:
- Demand for bicycle in Europe.
- Situation of bicycle exported from Vietnam to Europe recently.
- Impact of culture on marketing activity and the characteristics of European
culture.
- The marketing plan for bicycle of company in Europe (applying CAGE model).
1- Status of the demand for bicycle in Europe:
Transportation by bicycle is a growing trend in urban areas of Europe. The fresh
and beautiful Europe thanks to people interested in cycling such as people in Sweden,
France, Germany ...They have "cities of bike" absolutely without air pollution or noise
pollution, such as Cambridge, Bristol, Oxford (UK), Copenhagen (Denmark), Amsterdam
(Netherlands) ... Today, more than 100 cities have opened bicycle rental service to
encourage people to travel by this environmental friendly mean.

The movement was started in France - a country of revolution. The Velib system of
bicycle rental is changing the daily travelling routine of people in Paris. Currently Veslib
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system has 1,451 sites of bike rental with a total of 20,600 bicycles across Paris. Rental
price is surprisingly cheap: the fare of ticket in a day and monthly ticket is respectively 1.4
and 40 USD.
Local residents, tourists and all of city benefit from the new movement. According
to statistics, 46% of Vélib customers seldom travel by car, 96% of people in Paris believe
that Vélib help urban life more comfortable.
With more than 50 million of rentals in three years of operation, Velib is the world's
largest bicycle rental system. The big cities in Europe are also actively following
Paris. Similar bicycle rental system to velib in London was opened in June. As mayor of
London - Boris Johnson, bicycle rental project Barclays Cycle Hire (Vélib version in the
UK) is a major effort to "pull people away from their cars." 5,000 bikes for rent at more
than 300 sites are supported with 39.8 million by Barclay Bank - one of the leading banks
in the field of environmental protection. Work with large corporations is a necessary step
to improve and the effectiveness from the revenue of leasing bike is quite small and not
sufficient to cover cost.
In Germany, StadtRAD bicycle rental system is operated by DB Rent GmbH (a
subsidiary of the German national railway). The profitability of DB Rent GmbH is
confidential, but at least $1.5 million/year is supported to develop the program. In
addition, companies also benefit from advertising in the rental sites.
The immaterial profit from environment and health helps the program get support
from all sectors of society, from citizens, businesses and the opposition party. It's a proven
fact in Germany.
In France, Velid rental systemt still "live well" by the income from rental and
advertising. JCDecaux – velid’s executive company has expanded this system in many big
cities such as Lyon, Marseille, Brussels and Dublin. The French are proud of their title

"those who create new trend". And in this case, velib bicycle rental system is a good
example of that reputation. The German minister of transport said: "I encourage advanced
bicycle rental system. This system should be combined with existing transport network to
produce the best performance.” Although still very new, the bicycle rental model meets
serious problems. In some cities such as Helsinki - the capital of Finland, this model has
failed because of financial difficulties. According to management officials, unless there
are improvements and changes, bicycle rental system in many other cities will have
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similar results. Therefore, the meeting with the purpose of setting standards for bicycle
rental system is being held in Paris. The managers of enterprise must go a long way to
convince urban residents to "left their car." However, the people’s excitement and groups
of tourist riding bike every day in major cities demonstrate the potential as well as positive
benefits that the system of bicycle rental offers.
In some markets, bicycle sales are increasing as the government launch a series of
measures to encourage the use of bicycle. Italy's government has begun a program to
encourage the purchase of bicycles or electric bicycles to improve urban environmental
quality and reduce the number of cars on the road. Direct assistance program will pay 30%
of the cost to buy a bicycle. In Netherlands, people have developed friendly transportation
system with bicycle. The 27% of transportation in this country is bicycle, compared to
respectively 18% in Denmark and 10% in Germany.
John Pucher and Ralph Buehler of Rutgers University (USA) conducted a study to
analyze the reasons for the differentiation between countries and come to an interesting
finding that where parking lot for bicycle is large, transportation system is convenient with
many public transport, cyclists and cars are trained and understand the traffic clearly is
where the rate of bicycle use is high. Additionally, in those countries, authoriy impose tax
and charge very high fee to limit ownership and use of car parking. In some Nordic
countries, the government of city has built more lanes for cyclists.
In the Netherlands, a country which is famous for bikes, 1/3 of money used to buy

bike last year is for electric bicycles. Experts predict the similar growth rate in many other
European countries, especially Germany, France and Italy, because the need to use
bicycles goes along with the aging population model.
2- The situation of exporting bicycles from Vietnam to Europe recently:
From a country which does not export bicycles at all, each year millions of bicycles "made
in Vietnam" have landed in the European market. In 2003, export of bicycle and bicycle
parts from Vietnam to the EU reached 150 million USD; increased 21% compared to 2002
and is expected to reach 180 million USD in 2004. If in 1999, the market share of
Vietnamese bike in the EU was 1.6%, in 2001 increased to 3.7%, in 2002 was 5% and in
2003 was 8.2% (Source: Ministry of Industry and Trade) .
This phenomenon has shocked the bicycle manufacturer in Europe and caused the
case of dumping Vietnamese bike. The case began on 29/4/2004 when the European
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bicycle manufacturer Association (EBMA) requested anti-dumping investigation against
Vietnamese bike to the European Commission (EC).
According to a report to EC, EBMA said that Taiwan bicycle manufacturers have
increased the construction of the plant in Vietnam because of many incentives from
government; in addition, cheap labor cost has created unfair competitive advantage. Six
out of nine companies listed in dumping investigation by EU are 100% Taiwan’s Capital
Company: A & J High Ride Bicycle, Asama Yuh Jiun (Binh Duong), Dragon Bicycle
Vietnam, Liyang Industrial, Strongman (Dong Nai) and Sheng-Fa International
(HCMC). Three Vietnam bicycle company in the list of defendants are Thong Nhat, Xuan
Hoa, and Le Ngoc Han (merged into the Haprosimex Company) in Ha Noi. The reason for
dumping not because Vietnamese bicycle is sold in low price in EU markets, but
Vietnamese bicycle is sold in EU with too large number and rapid growth. In four years
(2000-2004), six Taiwan bicycle companies in Vietnam exported to the EU each year 2-3
million bicycles. From a non-bicycle exporting country, the number of bicycles exported
surge making bicycle manufacturers in Europe shock. So the case will be barrier to reduce

the number of bike massively flowing into the European market.
Anti-dumping tax rate of 34.5% in 2005 applied for Vietnam bicycle exported to
the EU until the date of 07.15.2010, the European Commission officially notified of
abolishing duties for Vietnam's bicycle exported to the European Union (EU). Ministry of
Industry and Commerce said that in the five-year anti-dumping duties, Vietnamese Bicycle
Company falled in exhaustion and are on the way to go bankrupt. The amount of
Vietnam’s bicycle exported to EU dropped severely. Before 2005, when not being imposed
tax, exported bicycle accounted for 80% of yield, while bicycle for domestic consumption
is only 20%. From 2005 to 2009, export volume of Vietnam’s bike declined with the
respectively proportion of 60%, 45%, 30%, 20% and 15%, especially in 2005, from over
one million bicycles exported to about 21,400 bicycles in 2009.
The exporting value of this goods from Vietnam to the EU also decreased
continuously, typically in 2007, bicycle exported to this market decreased 95.3%
compared to the previous year.
The EC imposed tax from 15.8 to 34.5% during the last five years (from
14/07/2005) almost eliminated bicycle industry in Vietnam, many businesses went
bankrupt or changed production, and few tried to operate moderately. Production capacity
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of the whole industry is just less than 200,000 units/year, equivalent to 10% of capacity in
2005.
Meanwhile, the bicycle industry in Europe has maintained its stability and grown
steadily in recent years, increased profits brings optimism as well as expands the
market. According to the report of the Association of motorcycle Retailers in European,
sales profits in Germany in 2009 increased by 10%. Market share of Vietnam's bicycle
exported to Europe are very small and not able to affect the business in Europe. In 2008,
the number of Vietnam’s bicycles exported to this market was 21,421 units, only 0.1% of
the total number of bicycles sold with 20,407,000 units.
The difficulty of the bicycle industry in Europe in general, only comes from the

weak competitiveness of this sector in some European countries, the limitation in
competition because of some dominant countries in this industry and the trend of
exporting to the countries of European Community. According to statistics of the
representing European bicycle industry (COLIBI) and the Association of the European
two-wheeler parts’ and accessories’ industry (COLIPED), in 2008, only six European
countries in which four plaintiffs Italy, Germany, Holland, France accounted for 70% of
bicycle production of the whole European Community; five European countries including
four plaintiffs represent over 2/3 of sales of the entire EU.
In addition, the average selling price of bicycle has great disparity among European
countries. In 2008, the average price of Dutch bicycles is 688 EUR / unit, while in
England is only 190 EUR. This disparity shows the difference in production costs of
European countries causing the trend of pushing exporting to the internal markets of
Europe and the damage to the local production market.
Vietnam is doing its utmost to create a favorable business environment for
investors, including investors from Europe, but the EC imposing anti-dumping tax on
Vietnam's bikes exported to Europe has concerned not only for Vietnam enterprises but
also impacted to the investors, business partners and potential of Vietnam. After the EC
abolished anti-dumping duty, the Vietnam enterprises - including us - are very confident in
the recovery of the exported bicycle sector.
Once no longer be subject to anti-dumping duty, Vietnam bicycle will have a price
competitive advantage to other competitors such as Thailand and Indonesia. Currently,
Vietnam has been able to produce three-quarters of components and spare parts needed for
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bike; in addition the cost of labor is much cheaper than in other countries, the production
cost of Vietnam is quite competitive. Besides, a favorable factor for Vietnam enterprises is
Chinese bikes continue being subject to anti-dumping duty in Europe. This competitor is
the most ominous and the EC had not been repealed this tax is a great opportunity to
recover the exported bicycle sector of Vietnam.

On the business side, we believe, lines and manufacturing equipment of companies
remained virtually intactness, so it may work again at any time. But that does not mean
business can immediately bring production capacity back to the previous period in
2005. The biggest difficulty is the labor recruitment and training. Because of nearly losing
all export orders in the last five years companies have laid off thousands of skilled
workers. Now back to training again will take time and cost, not including the recruitment
in current condition is not easy. Currently, the personnel in bicycle industry are only about
5,000 employees. To restore more than 200,000 employees as before will probably take
years.
3- Impact of culture on the organization's marketing activities and the
characteristics of European Culture:
a- The impact of culture on marketing activities of the enterprise:
There were a lot of organizations, countries and experts in culture making the concepts of
culture and related issues, and currently there is not an absolutely consistent concept of
culture. In 2002, UNESCO has launched the definition of culture as follows: "Culture
should be regarded as the permanently evolving set of distinctive spiritual, material,
intellectual and emotional features of society or a social group, in addition to art and
literature - lifestyles, ways of living together, value systems, traditions and beliefs.”
Direct influence of culture on marketing activities of the business is affecting the
behavior of the business entity or marketer. These acts will sign up in the marketing
methods that they implement. For example, the etiquette, ways of talking and behavior of
a culture that the marketers are affected will be used in the process of communication,
negotiation and bargaining with customers. In this case culture has impacted or driven
directly to the fourth marketing tool - mixed promotion tool with the meaning of
communication.
Compared with direct impact, indirect impact of culture are more often and
broader. The cultural values are transmitted by institutions such as families, religious
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organizations, social organizations, schools, etc... which affect the buyer and then decide
the seller's marketing efforts. The impact of culture on the buyer not only focus on their
desires, but is also performed by the attitudes of people for themselves, for others, for the
entity existing in the society, for the nature and universe ... All these things are affecting
on the marketing methods.
Culture as an element of the marketing environment affects overall marketing
activities of enterprises. Specifically, culture affects a wide range of the strategic issues in
marketing such as business choices, selecting the target market, selecting the overall
marketing strategy, the decisions on the tasks and general objectives of the business and
marketing activities.
Culture also affects the implementation of tactics, strategies, specific measures,
actions, specific acts of marketer in the marketing process.
Culture affects comprehensively on the various tools of marketing-mix system of business
which particularly affects product tools, distribution and mixed promotion.
Each of the cultural variables has different influences on the process of marketing
activities. The fact is this cultural variable may have a strong influence on a certain
marketing activity, and other variables are less relevant or not significantly affected. If
looking back from the marketing-mix tools people gave a summary of the impacts of some
cultural variables as follows:
Firstly, mixed promotion policy is deeply affected by the language problem. For
example, ads may need to change because a banner or campaign used in any culture can
mean embarrassing in a different culture.
Secondly, the acceptance of products is affected by the standard of attitudes and
values. For example, in Vietnam people often avoid eating squid, duck ... at the beginning
of month.
Thirdly, pricing is often influenced by cultural attitudes to change by so-called
“mental price." In some places, the change is often considered a positive thing so fashion
should be set very high price because it represents change. But elsewhere, the change can
be seen as not good, a higher price for new products often makes product become too
expensive for consumers.

Forthly, the distribution system is often affected by the regulations of society. For
example, in some countries, the relationship between suppliers and buyers often rely on
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relatives. Those who are not members of family will be excluded from the business
transactions in a certain distribution channel.
In a culture where the cultural values with different sustainability and universal
affects differently on the marketing activities of enterprises. In addition to the universal
and uniform cultural values there always exist cultural values with local characteristics,
known as the cultural division. The universal and uniform cultural values have broad
influence within the society and create the general characteristics of demand, desire,
consumption behavior of a large number of buyers in a country and nation. For example,
traditional food culture of Vietnam is habit of eating rice with chopsticks and bowls,
etc... As in many Western countries, it is bread, butter, milk, meat with spoons, forks,
etc... The specific cultural values create unique style in demand and behavior, trading
characteristics of each consumer group in society.The cultural values can be differentiated
by region, type of religion, geographical region, ethnic group or classes of people. Along
with the existence of basic and traditional cultural values, known as the primary cultural
values there are non- basic, temporary or secondary cultural values. The core cultural
values are formed long time ago and transmitted from generation to generation,
underpinned by the basic regulations of society and have very high sustainability. This
also decides the permanence of the consumption behavior of consumers deeply influenced
by those cultural values. In contrast, the secondary value is easy to change, adjust and
likewise people can change, control consumer behavior defined by these cultural values.
b- Characteristics of European Culture:
Thus, culture has a strong influence on marketing. For the success of Thong Nhat bicycle
in Europe, we need to understand the characteristics of European culture. The
characteristics of European’s behavior cultures as follows:
- They greet each other cheerfully and quickly. General style is handshake, hug or

nod. They always show their confidence, equality and barely value social position.
- At work, they always show their courage and enthusiasm, but also judge others by
their work. Social position, in their opinion is set by each person. They admire anyone
with ability and perseverance to succeed. They also respect family tradition.
- They always respect the civil rights of everyone. They always believe in legal
regulations for the implementation of social justice and respect, ensure the individual
property rights. Therefore, the questions proving too much kindness of private life is not
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as popular as for Asian. Independence is also shown in the family activities (including
travel). They often teach their children the desires, trend and the ability to live
independently. In general, they prefer to have separate sleeping accommodation to be
completely free.
- They barely respect the neiborhoodly relationship like Asian. Once free, they can
have fun with friends or in a club and not visit the people around.
- They respect scientific knowledge and linear thinking, and want everything to be
done according to plan. With the concept of “We have only onle life”, they value time so
much. They often put things in the exact time, work on time and time must be used
appropriately, and the task is solved as quickly as possible. For them, time is money and
what has passed belong to the past, they don’t linger.
In addition, we anticipate to do bicycle marketing for the specific characteristics of
culture:
*- The British: Avoid talking about issues of national independence as it is
sensitive polictical issues. These people have English as a common language. They are
careful in communication, dress and pay attention to social status, fame, always on time
and shake hands when greeting. Men usually like to wear striped caravat. The favorite
topic: the history, literature, architecture and garden. The topics need to be avoided are:
religion, money. They call one’s name for informal, invite each other when eating...
*- The French: They always pay attention to the formality and ritual in the

meetings and rarely call informal name. They have a habit of shaking hands quickly and
lightly. They use the dinner for conversation about important issues and consider quite
carefully before making decision. The French are very proud of the history, language,
education system, artistic achievements of their country. They require high quality food
and service, the main meal is usually lunch. Their favorite topic is food, sports, arts and
culture. They avoid the subject of money, price, privacy, politics...
*- The German: They have a habit of shaking hands tightly when greeting and call
informal name when being familiar. They have punctual manner and are pretty fair. When
communicating, they do not put their hand in their pocket and shirt lapel while eating, and
profess full name when answering the phone. They often discuss about work after a meal.
Favorite topic: cars, football, food and avoid the topics of war, the American sports.
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*- The Belgian: They have a habit of shaking hands when greeting and farewell,
do not use informal names unless for friends. When hugging, they kiss on both cheeks for
three times. They are very punctual. Belgian speak French and Dutch, is quite stylish
cooking, often jokes about the Dutch. For them, putting hands into pocket or holding
hands while going is rude. Favorite topics: football, history, walking with bicycle. They
avoid the political issues, and do not like being mistaken for a Frenchman.
*- The Netherlands: They have a habit of self-introduction, and also want the
speaker to self-introduce, and then shake hands with everyone, including children. They
do not turn around when communicating and are unobtrusive. Dutch is fluent in English
and some other European languages. They usually give accurate idea and do not
exaggerate. They are very on time and when giving gifts, often wrap gifts in traditional
style. The Dutch are proud of the encroaching sea and the country's history, trade. Their
favorite topics are politics, tourism, sports and appreciating the honesty in trade.
*- Italian: They have a habit of shaking hands and holding elbow when
communicating. They can express attitudes and emotions through gestures, posture, but
rarely call informal name. However, in the social contacts they always pay attention to

time and do not want to take it long and talk business in social gathering, they have meal
at noon. Favorite topic is the world events, football and family. They avoid the subject of
Maphia, politics, religion, taxation.
*- Spanish: They are quite enthusiastic in communication, and they often hug and
kiss when meeting and parting in close relationship. During communication, they often
joke before talking about the main topic. They need information about address briefly. The
Spanish have dinner very late: from 10 pm and the main meal is lunch, usually from
13h00 to 16h30. They taboo chrysanthemum. When communicating they sometimes
interrupt to show their enthusiasm. Favorite topic is sports, travel, and history. They avoid
the subject of politics, religion, family, and career.
c- Marketing plan for bicycle of company in Europe (application of the CAGE
model).
*- The capacity of the company:
In the domestic market are now selling many kinds of bicycle and electric bicycle
produced and assembled domestically and imported bicycles with brand names such as
Thong Nhat, Martin 107 electric bike, E-GO, Viha, Yamazuki ... especially many kinds of
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electric bicycle from China and Taiwan manufacturers with great designs and colors create
a diversified options for consumers. However, according to our research, most consumers
still prefer to buy the Vietnam’s brand bicycles. Because these bicycles are not inferior
quality compared to imported bicycles, with warranty and reasonable price. For example,
Greenbike costs 3.7 million/bicycle, Thong Nhat bicycle cost 4.65 million, Delta bicycle
costs 3.85 million. For a firm position on the domestic market at present is due to the
relentless efforts of innovative production technologies and equipment capacity of the
Thong Nhat Company. With a strategic orientation “only launch to the market type A
products to ensure credibility." Strictly complying with this commitment, the company has
developed and applied strictly quality management system according to ISO 9001:2001,
environmental quality management system according to ISO 14000, IWay, QWAY (IKEA)

international management system. By doing this, in 2009, industrial production value of
Thong Nhat bicycle increased 22% compared to 2008, reached 212 billion,
correspondingly each employee produces nearly 1 million product value/day; revenue is
235 billion, increase 35%, export value is 5 million USD, increase 30% compared to the
previous year. The earlier months of 2010, industrial production value was estimated to
increase 40%, revenue was estimated to increase 40% compared with the same period.
Currently, the Thong Nhat company are capable of manufacturing, assembling more than
100 sizes, types of bikes, from commonly used to complex structures, the quality meets
international standard, continues to be sold well in domestic market, affirm 50 year life of
the Thong Nhat bike, put the company up to the leading position in the bicycle
manufacturing sector in Vietnam and become a "national brand" in 2010. Thong Nhat,
Viha Brand, are known in every continents, from the most developed industrial countries
like the United States, Britain, Germany, Holland, Spain, Malaysia, Singapore ... honored
Thong Nhat as the prestige exporting business during the years from 2005 - 2009, with
average export value is about 5 million USD/year.
Until now, Thong Nhat bicycle has built strong market structure, with
approximately 40% of market for export (mainly the U.S., EU), 40% of products are
provided in urban areas and 20% for the countryside. Each day, the company sells from
500 to 800 units, ranging from ordinary to special type.
To better prepare for the competition, Thong Nhat has invested $2 million in
purchasing technology equipment from Europe, Japan, Taiwan, including injection
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molding machine, powder coating line, robot welding. In 2009, the Company has
launched a complete production line from manufacturing chassis and components to
assembling the final product. Thong Nhat now are capable of manufacturing, assembling
more than 100 sizes of rim (wheel). In urban areas like Hanoi, Ho Chi Minh City, Hai
Phong, Thong Nhat dominate the high-end product lines (1.5 to 3 million/bicycle) with
mountain and sport bicycles, aimed at students. Meanwhile, the product line for rural areas

(550.000 to 850.000 VND/unit) with the feature of both travelling and freight chassis
should be strong, firm but the shape shouldn’t be rough, it should be very stylish. As for
the export market, the company produces bicycle with freewheel and large wheeled
vehicle with a diameter of 660-700 mm, suitable for those with tall stature, like mountain
bicycles.
*- Marketing plan for Europe:
- About the cultural gap:
As indicated above, the seven countries in our marketing plans have their own
unique culture, but they have in common valuing the class and people regard bicycle as
effective transportation. Therefore, products exported to Europe are most advanced
products to meet up their demands on design, style (a traditional bicycle, sports bike,
bicycle fashion and children bicycle). We will take advantage of supermarket chains here
to advertise and sell products. Thong Nhat brand has been confirmed in the domestic
market, the strict quality management system will meet the tastes of people here. At the
same time we will also promote the brand by gifting products for the bicycle rental
companies prevailing in these countries.
- About the administrative gap:
Taking advantage of abolished anti-dumping duty on Vietnam bicycles, we
concluded this is a great opportunity to penetrate into the European market, but we should
be very careful in making the purchase price. Price will be equal to the price of
competitive products, but we will step up promotion: big discount to distributors, lucky
draw program...
- About the geographical distance:
Because seven countries we plan to marketing our products lie relatively close to
each other so the geographical problem is not very serious. The company has applied strict
quality management system according to ISO 9001:2001, environmental quality
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management system according to ISO 14000, IWay, QWAY (IKEA) international

management systems so we would not have anything to worry about product failures for
the warranty or repairing.
- About the economic gap:
We can confirm these are the countries whose economy is quite developed in
Europe; the price of our products at par with its competitors is very suitable.
Based on the success of Vietnam bike in Europe before being imposed anti-dumping, the
understanding of cultural differences in Europe and our own capabilities, Thong Nhat
bicycles believe in the success of the company when launching our bicycles in Europe.
References:
1. International Business Administration textbook - TS. Do Ngoc My - Da Nang University
of Economics
2. Cross-cultural management - Charlene M. Solomon & Michael S. Schell - translated by
TS. Nguyen Tho Nhan.
3. Lecture on “cross-cultural management "- TS. Duong Ngoc Dung
4. Webisite: thongnhat.com.vn
5. By: Camranhonline

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