Phân tích và đánh giá chiến lược kinh doanh của BIG c việt nam e

Phân tích và đánh giá chiến lược kinh doanh của BIG C Việt Nam
I. Advantages and disadvantages of 2 approaches: via industry analysis and
via via business resources.
Every company needs to build its own business strategy to exist and develop. There
are some appoarches of building strategies:
Approach via market: Base on industry analysis and business environment
Approach via capacity: Base on analysis of business resources and internal capacity
Firstly, we must know that: “An industry is a group of companies
providing products or services that can substitute for each other closely. During
the competition, these companies affect each other. Goods and services which
satisfy customers’ demands are basically similar.”
Industry analysis also indicates: advantages of absolute cost, economies of
scale, switching costs, government regulations and retaliations of companies
within the industry, barriers to enter and competitions of rivals in the industry.
 Advantages of industry analysis:
- Highlight the economic characteristics of industry, life circle of industry,
trends of life circles to define the scales of investment limitation
- Competitive forces within the industry; the nature and the power of forces.
- Drivers of industrial changes and effects.
- The strongest and weakest companies.
- Who can create next changes in the industry and how theses changes will have
influence on the company?

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- Attraction of an industry in terms of possibility to gain profits higher than
average income level.
- Industry analysis allows leaders to realize opportunities and threats; through
strategic selections, the company can turn the powers of one or more forces
into its own advantage. .

- Threat of new entrants
- Competitive rivalry within the industry.
- Bargaining power of suppliers (The number of suppliers, the importance of
industry for suppliers, the importance of products provided by suppliers for
customers and the differences in provision)

- Bargaining power of customers (Proportion of product consumption in total
income, differences of products, shift of demands, importance of product
quality and the amount of information customers have)
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- Industry analysis also indicates: advantages of absolute cost, economies of
scale, switching costs, government regulations and retaliations of companies
within the industry, barriers to enter and competitions of rivals in the industry.
 Disadvantages:
If business strategy is solely based on an analysis of industry, administrators
will not know the actual capacity of the business as well as they are only able to
build strategies that enterprises themselves are incapable of performing on scales of
science and technology, capital, human resources, process management and
competitiveness.
 Advantages of resources analysis:

- Allow administrators to know about capital and ability to manage capital of
the company.
- The ability to create capital of the company.
- The organizational structure of reporting system, planning, coordination and
control of the comapny
- The modernity of equipments and the position of the company
- Confidence, satisfaction of employees in the company. Knowledge, skills,

capacity management and disciplines.
- Is the production process reasonable?
- Ideas of innovations in production, scientific capacity as well as innovative
capacity?
- Fame of the company, credit in the heart of customers

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- Values of brand name
- Competitiveness, time for product development and short commercialization,
ability to create networks of agents
- Perceptions of quality, duration and trust
- Effective reactions and win-win supports,
- Access to sources of raw materials, techonologies, patents, trademarks, trade
secrets with low trading costs
 Disadvantages:
If we only access from the internal resources without analyzing business
sectors and other factors, this will impact very severely to business strategy. Then
businesses can fall into the situation of massive production without knowing the
market demand, leading to inventory and cash flow is not circulating.
Products do not meet the demands if life circle of product is short.
Do not know disadvantages if entering market; strengths, weaknesses of
competitors and substitute products.
Do not know who competitors are and what disadvantages of entering the
industry are. Also, do not know strengths and weaknesses of competitors and
substitute products
II/ Analyze and assess business strategy of BIG C Vietnam
2.1Introduction
Big C is a retail brand of Casino Group with more than 9,000 stores, supermarket

chains in many countries around the world. In 1998, Big C firstly presented in
Vietnam with the first supermarket located in Dong Nai and has been growing
rapidly. Up to 2013, Big C has 23 agents across the country and is preferred by more
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and more consumers with affordable prices, which are suitable with with shopping
habits of consumers.
(Source: />With more than 8,000 employees, Big C offers essential goods, fresh products to
household goods, electrical goods, electronics and entertainment centers. Special
promotions are also applied.
2.2 Market approach of BIG C
2.2.1 Approach from outside environment
In the past 10 years, the retail industry of Asia achieved remarkable
accomplishments and was one of 30 fastest growing industries. Scale of retail market
is expanding in Asia, increasing by 30% during the period of 2007 – 2011. And it is
estimated that in 2013 the scale of this market increase by 10% though world
economy crisis affect the purchasing power of consumers.

( nguồn: />2.2.2 Existing barriers of entering

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Big C has succeeded in creating entry barriers, making it more difficult and costly
for other companies who want to enter the industry. Firstly, Big C has advantage of
economies of scale. Big C is a retail system which is widely available in many
countries around the world. Therefore, its production scale is very big. And this
makes its cost and price per one unit of product is relatively small in comparison
with other companies. For example, for the same products, products of Big Care are

always cheaper than that of other supermarkets’ products such as Star Bow, Hapro
and Techsimex. Big C, on the other hand, always creates incentives for customers
via constantly promotions or discounts. In addition to economies of scale, it also
created some other barrier system like: the need for initial capital investment and
commercial elements... Big C has built a brand that is well known not only in
domestic market but also in global market.
2.2.3 Bargaining power of suppliers
Big C has applied very successfully the bargaining power of suppliers. Thanks to
that bargaining power, Big C can increase the prices of some products but still make
sure that these prices do not exceed market prices, thus, Big C can increase supply
volumes. Big C has at most 3 exclusive brands: WOW, eBon, Casino.
2.2.4 Bargaining power of customers
At Big C, customers always get good products with reasonable prices. Customers’
demands are satisfied. Thus, Big C has reduced the bargaining power of customers.
2.2.5 Competition in the industry
Big C is located for providing cheap goods, so the company constantly offer
promotions and introduce cheap products which are suitable with income of
customers. Besides, Big C is associated with major manufacturers to reduce
production costs to the minimum level. Also, the company has policies to stabilize
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prices during the current crisis, creating favorable conditions for customer's
shopping activities. Therefore, Big C are evaluated to be very competitive in the
industry.

2.2.6 Threat of substitute products
Some products which can replace beers and wines: coffee, tea…These products can
fulfill some needs of customers. It can be seen that the main substitute product is the
ability to fulfill the demands in comparison with other companies. Price, quality and

other environmental factors like social, political or technological are all affect to the
threat of substitute products.
2.2.7 Bargaining of related sides
Government: supermarkets must ensure all legal factors and accept required reserse
ratio.
Investors and shareholders: require high profits. If not, they will withdraw their
funds and invest to other sectors.
Key factors of success:
- Human resources: This is considered a key factor for the success of the
business and development of retail system. Big C has a good staff,
professional expertises and skilled information technology teams. Especially,
qualified professional staff is a decisive factor which determines the success
or failure of the supermarket. Besides, the staff of Big C is very responsible on
working. Continuous training is considered an urgent task, a red threat
throughout the development process of the company. Leaders and personnel
on transactions must be typical examples which are foundations to build
cultural style
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- Culture: Culture is what human beings create, including material culture,
spiritual culture and behavior culture. Any profession in social life is also
related to culture.
Distinct characteristic of retail system is to regularly be in contact with customers
who are very different from qualifications, nationality, gender, the age, color and
purposes of using products and services....Thus, cultural awareness and cultural
behavior in jobs are required for salespeople…Culture material requires a broad,
polite and modern business system. Apparels of sales staff of Big C are also an
important element in the material culture, which makes internal management easier,
creating dignified behavior and raising awareness of responsibility of employees.

Then, customers can see that they receive respects from employees whom they meet.
- Technology: Many experts appreciate the role of technology. In the period of
international economic integration, legal framework becomes clear. Barriers
of discrimination among supermarkets no longer exist and services of
supermarkets are nearly identical. All supermarkets have more advanced
technologies. Sensibility of access new technologies is gradually revealed.
3.1 Analysis of inside environment
SWOT analysis

Opportunities

Strengths

- Vietnam joined WTO

-

Chances

Weaknesses
to

expand -

Must

improve

- Retail market develops distribution system (in quality and
coming time, Big C will methods

more and more
- Income is increasing

open 2 more agents in Nha -

Expand

good

payments

distribution

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- Stimulus package of 1 Trang and Vung Tau)
billion USD

systems,

using

both

product traditional and modern
structure, especially high- methods (online sales)
-

Diversify

valued

and

profitable - Improve the efficiency of

products

marketing,

customer

caring and PR…

Threats
- competition

S-T
is

fiercer and fiercer
- Shopping habits
- Economic crisis
- Supply of goods is
scarce and in low
quality
- Legal system

W-T

- improve
quality,

service
human

resources
- Expand
structure,

- Enhance perceptions
and

improve

shopping habits of
item
be

customers
- Have

promotions

competitive in both

and

prices and qualities

campaign

- Enhance the quality
of supply, find other

discounts
more

often to stimulate
consumption

partners
Over 10 years in Vietnam, Big C has carried out brand development quite well. The
company has invested in marketing to develop market research and after-sale
services, which have helped the company increase sales on the market. Company
should continue maintaining what has been achieved and expanding business scale.
Every 3 weeks, Big C releases a newsletter of promotion with attractive prices and
gifts. The promotions with themed goods (beauty, housewife, kids shopping or

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fashion) create diverse choices for customers, strong reduction (up to 50% product
value).
Besides, Big C also builds image through charity activities. Big C always wants
to become an enterprise with high sense of responsibility, being actively involved in
charity activities. The strategy of analyzing external factors and internal business
resources helps Big C, a European brand, survive and develop in Vietnam and
become one of the most preferred brands. In addition to brand building, it can be

seen that supermarket chains of Big C are growing more and more. Consumers’ trust
and love for this brand is desirable for all domestic brands.

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The end

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