Phân tích chiến lược kinh doanh của hệ thống bán lẻ của siêu thị big c e

Phân tích chiến lược kinh doanh của hệ thống bán lẻ của siêu thị Big
C.
Business strategy analysis of the retail system of supermarket Big C.

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TABLE OF CONTENT

TABLE OF CONTENT............................................................2
INTRODUCTION...................................................................4
RESEARCH OF CONTENT.....................................................5
1. General introduction about Big C supermarket..........................................5
2. Assess the impact of the macro environment..............................................6
2.1 Political Factors – law..........................................................................6
2.2 Technological factors............................................................................6
2.3 Economic Factors.................................................................................6
2.4 Cultural factors - social.........................................................................7
3. Assessment of intensity of competition......................................................7
3.1 Existence of barriers to entry................................................................7
3.2 The key success factors (KFS)............................................................10
3.2.1 The Human Factor.......................................................................10
3.2.2 Cultural Factors...........................................................................11
3.2.3 Technological factors...................................................................11
4. Analysis of the internal environment........................................................12
4.1 Assessment of resources and capacity based on the enterprise value
chain....................................................................................................................12
4.1.1 Basic Operation...........................................................................12
4.1.2 The complementary activities......................................................14
4.2 Determination of competitiveness......................................................15
5. Competitive position of businesses..........................................................15

5.1 The model EFAs.................................................................................15
5.2 The model IFAS..................................................................................15

CONCLUSION.....................................................................17
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..........................................................................................17

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INTRODUCTION
Business strategy is the most important part of the whole strategy of the
business. Other parts of the overall strategy must be based on the business strategy to
build and calibrate.
Business strategy is extremely important for the existence and operation of the
business. It set out major objectives, which need to mobilize appropriate resources
both short and long term. It ensures that the plan was not misleading. Business
strategy built good way for companies to gain more profit, have secure foothold in the
business, proactively adapt to the business environment.
Competitive strategy to help businesses trade capture market opportunities and
create competitive advantage in the market by applying the limited resources of
enterprises with superior results to achieve goals out, allowing enterprises to consider
and determine what direction we should follow? The business environment is always
volatile create opportunities and risks in the future (business strategy will help
companies capitalize on the opportunities and reduce the risks related to the business
environment).
Business strategy to help enterprises better prepared to cope with and master
the movements of the market. Business strategies also reduce the risk and enhance the

ability of the enterprise to take advantage of business opportunities as they arise.

4


RESEARCH OF CONTENT
1. General introduction about Big C supermarket
- Big C is a trademark of the Casino Group, one of the leading retail groups in
Europe with over 9,000 stores in Vietnam, Thailand, Ac-hen-ti-na, U-ru-guay, aboutZue-la Indonesia, Brazil, Kuwait, Colombia-Colombia, India, Indonesia, the
Netherlands, France ..., using over 190,000 employees
- Big C Vietnam opens first hypermarket in Dong Nai in 1998. Currently, the
Big C store presence in most major cities like Hanoi, Hai Phong, Hue, Da Nang, Bien
Hoa, Ho Chi Minh City.
- Big C shopping center is an ideal client for Vietnam: each shop has over
50,000 items, from fresh food to the grocery store, from clothing to interior
decorations, as well as the electrical goods such as home appliances and audio-visual
equipment, all of which are sold cheaply.
- Every day, Big C's customers are exploring multiple promotions, new items,
exclusive items, of various types, manufactured in Vietnam or imported from abroad.
- Just a regular 3 weeks, Big C released a promotional newsletter with pricing
policies and attractive gifts. Just subscribe to the newsletter by mail and customers
will not miss any promotions yet Big C again.
+ Full Name of Business: Trading Ltd Co Big C
+ Enterprise Abbreviation: Big C
+ Head office: 222 Tran Duy Hung, Trung Hoa, Cau Giay District, Hanoi.
+ Year established: 1998
+ Tel: 0437848596
+ Website:
+ Business of Business: Distribution sale
+ Certificate of business registration: 175 /GP and the license amendment

+ Date of issue: on November 25, 1996. Place of issue: Ministry of Planning
and Investment
+ Type of business: Joint Venture
+ Current Capital: $ 250 million (all member firms)
+ Business operations strategies (SBU):
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* Manufacturing
* Retailers
* Exports
- Vision, mission of the enterprise business:
+ Vision: Nourishing a world of diversity
+ Business Mission: Become the reference be the best retailer to Satisfy our
customer.
2. Assess the impact of the macro environment.
2.1 Political Factors – law
This is the most powerful factor in the operation of supermarkets. Every
profession has now lifted the legal documents individually adjustable, soft law
adjustment, orientation and operating regulations must be in accordance with the
constitution and law changes the law has always strongly influenced production and
business activity for economic entities, so the replacement this change impacted the
operation of the retail system. Political factors have close relationship with the
industry. Political stability will create a favorable business environment.
- Anti-Monopoly Law
- Tax Law
- Labour Law
- The philosophy of liberalization
- Law on training, coaching employees
- The policies and philosophy of education

2.2 Technological factors
- Product Innovations
- The application of knowledge
- Note in the proceeds of state or private R & D spending
- New technologies in information and communicate.
2.3 Economic Factors
- Inflation
- Interest
- Balance of payments
- Revenues and expenditures
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- Personal saving rate
- The rate of corporate savings
- Gross domestic product
2.4 Cultural factors - social
- Women in the labor force
- The diversity of the workforce
- Attitudes about the quality of life at work
- The environmental concern
- The change in the trend of career
- The change of the favorites in choosing the product characteristics
3. Assessment of intensity of competition
5. Respective power of

Potential accession

1. Threatening a new

different stakeholders

Other
Stakeholders
The supplier

enter

The competitors in the
industry
6. Competition among

4. Bargaining power of
buyers

The buyer

existing businesses
2. Threat of product/

3. Bargaining power of 6. Cạnh tranh giữa các
Replacement
suppliers
DN hiện tại

service alternative

3.1 Existence of barriers to entry
As we all know Big C is a trademark of the Casino Group, one of the leading
retail groups in Europe, with more than 9,000 stores in Vietnam, Thailand, Argentina,

Uruguay, Venezuela, Brazil, Colombia, India Ocean, The Netherlands, France,... use
on 190,000 employees. Big C shopping center is an ideal client for Vietnam, each
store has over 50,000 items, from fresh food to the grocery store, from clothing to
interior decorations, as well as items electronics such as home appliances and
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audiovisual equipment, all of which are sold cheaply. The reason, BigC do this is
because businesses have adopted exactly five regulatory forces M. Porter.
Big C has succeeded in creating more barriers to entry makes joining the
industry more difficult and costly. First, since there are economies of scale, Big C is a
retail system is widely available in many countries around the world. Therefore, its
production scale is very large making the cost and cost per unit of its products is
relatively small compared to other competing businesses. We can take the example,
for the same commodity product, the product of Big C always cheaper than the
products of other supermarkets like Star Bow, Hapro, Techsimex. On the other hand
BigC always created for customers with special hospitality constantly as promotions
or super discount to stimulate customer demand. In addition to economies of scale it
may also build a system of barriers such as the need for initial investment and
commercial elements,etc,... More specifically, it has a complex distribution system
makes Big C Vietnam took first in Dong Nai in 1998. By now, the Big C store has
presence in most major cities like Hanoi, Hai Phong, Hue, Da Nang, Bien Hoa, Ho
Chi Minh City. It has built for himself is a brand that the brand is known not only
within the country but the whole world. Scale is considered: 5/10
a) The power to negotiate from suppliers.
Big C has employed very successfully negotiate power from suppliers. Thanks
to the bargaining power that Big C may increase the price of some products while
ensuring not to exceed the price of the item on the market, increasing the volume of
supply. Big C has 3 exclusive manufacturer brands were: WOW, eBon, Casino. Scale
rating: 6/10.

b) Bargaining power from customers:
At Big C customers always possess the products with the most affordable price.
Customers will satisfy every demand of essential commodities. So Big C gave the
bargaining power from customers less. Scale rating: 7/10.
c) Competition between businesses in the sector
+ Big C is a trademark of the Casino Group, one of the leading retail groups in
Europe with over 9,000 stores in Vietnam, Thailand, Ac-hen-ti-na, U-ru-guay,
Venezuela, Brazil, Kuwait, Colombia-Colombia, India, Indonesia, the Netherlands,
France,etc...
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+ Big C with positioning is cheap commodity, therefore, they continuously
offer promotions, with cheap products, in line with many people's pockets. In addition,
Big C also linked with major manufacturers to reduce product costs to the fullest
extent for consumers, with the price stabilization policy during the current crisis and
create conditions shopping convenient for the customer.
So Big C were evaluated with the competition is high compared with other
firms in the industry. Scale rating: 7/10.
d) The threat of substitute products
In competitive regulatory force of M. Porter is applied in Big C that is
competitive pressure from alternative products. Products and services replace the
products or services that can satisfy the needs of the equivalent of the products and
services in the industry. We can take the example then always make judgments about
competitive pressures primarily of replacement products:
Most customers at the wine shop, beer in Big C is the gentlemen for gentlemen,
the hobby beer, drank alcohol while on then was drunk, drunk, the wife will not like.
They often blame the friends, colleagues, partners,etc,... to defend his excuse for
consuming large quantities of beer to additional revenue for the business. So what
beer to satisfy demand:

+ Meet the partners
+ Gather friends, also numerous other reasons, but in terms of our work should
only use a few elements to identify.
So the replacement of beer and wine is a commodity that can replace the
requirement. At Big C can list some merchandise may substitute alcohol: coffee, tea.
These products can satisfy the demands on and add a benefit was welcomed by
everyone, it is just one of many products sold in the retail supermarket Big C.
Through this example we see competitive pressures primarily of replacement products
is the ability to meet the needs compared with products in the industry, add more as
the factors of price, quality and other factors environment of culture, politics,
technology will also affect the threat of substitute products.
Scale rating: 6/10.
e) negotiating power of the parties involved

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Government: the supermarket to ensure good implementation of all elements of
law, in addition to observance of the compulsory reserve ratio
For investors and shareholders: request high profit, low profit if the
shareholders would gradually withdraw invested in the retail system and redirect its
operations to other areas. Scale rating: 6/10.
To judge:
The competitiveness of the Big C for businesses in the sector to create pressure
on the industry to create a tough competition intensity. Demand, the growth rate affect
the number of competitors. Supermarket business focuses structure and branches have
only one or a few firms holding dominant role. Also barriers that Big C launched
retreat like the barriers to entry, barriers withdrew factors that make a withdrawal from
the sector of the competitors become difficult:
+ Investment barriers

+ Binding laborers
+ The binding strategies and plans.
Market service providers Vietnam supermarkets now have a lot of vendors but
the dominant market power remains in the hands of three service providers mainly
Metro, Big C, G7 Mart. Although the barriers to entry, barriers to retreat,... are high,
pressure from customers negligible but many enterprises are prepared to enter into the
market. One more good thing is the introduction of the service sector with
supermarket vu service: amusement parks, cafes, restaurants,etc,... With this trend in
competitiveness within the industry will increasingly increase and then consumers
will increasingly be respected more.
Thus we see the retail industry is an attractive sector.
3.2 The key success factors (KFS)
3.2.1 The Human Factor
This is considered a key factor to the success of the business and development
of retail systems. Should have good staff, professional expertise, expertise,
information technology. Especially the staff provision with strong qualifications,
dynamic creativity, acumen at work will be a key determinant of success or failure of
the supermarket. Besides must have quality and professional ethics, spirit, high
responsibility job. Must constantly retraining and advanced training and professional
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qualifications, their political, cultural and ideological ethics officers. This is
considered an urgent task, the red thread throughout the business development of the
system. Themselves leaders and specialized cadres, cadres transaction is the mirror
into which the typical construction style corporate culture deeply imbued in the sector.
3.2.2 Cultural Factors
Culture is all that the creator includes material culture, spiritual culture and
behavior culture. Culture is never missing baggage being of mankind in the past,
present and future,etc,... Any one industry in social life is also related to culture,

making culture and cultural impact are constantly,etc,... With its own characteristics of
the retail system is regularly exposed to customers is also very diverse in subject, of
degree, the difference in nationality, gender, the age, ethnic skin color, differences in
use of products and services. Hence cultural awareness and cultural behave in a job
that requires sales staff must constantly cultivate, train, nurture unceasingly.
Material culture requires an extensive trading system, courteous and convenient
modern showroom. Apparel sales staff is also an important element in the material
culture of the supermarket, making our internal management advantages, creating
dignified behavior and enhance the sense of responsibility in public employee.
Through which customers find easy to respect and recognize the staff that I have been
exposed.
Culture is the overall spirit of the non-material value, not determined by the
unit of measurement, not move well in space and also can not be determined so that
sufficient quantity and quality. Spiritual culture must first mention the brand value of
the business units themselves. Culture is the general behavior of the factors attitude
and behavior of people in public life. Culture of behavior that curb the human instinct
makes people behave with each other between purely social, and moral civilization.
Staff must first behave with each other so that the true culture and behave with
superiors and colleagues would feel harmony, made of glass on the bottom, to help
each other in work and life.
3.2.3 Technological factors
Many experts appreciate the role of technology. During the period of
international economic integration, the legal framework is clear, the barriers of
discrimination between supermarkets together was no more, when the service of the
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nearly identical supermarket equal, the supermarket also offers more advanced
technology. In Vietnam, the supermarkets have demonstrated that awareness. Flair in
access to new technologies has gradually been revealed.

4. Analysis of the internal environment
Main products: fresh food, groceries, clothes to interior decorations, as well as
electrical goods such as home appliances and business services - look.
Markets:
+ Scope: spread across the country, with branches in six cities: Hanoi, Hai
Phong, Da Nang, Hue, Dong Nai and Ho Chi Minh City. In addition, Big C also
exports goods to European markets, South America, to supermarkets in the Casino
System, Jumbo Score and vice versa.
+ Customer: Towards all customers have average incomes medium - low
becomes.
4.1 Assessment of resources and capacity based on the enterprise value chain
4.1.1 Basic Operation
a) Import Logistics: Big C is a joint venture corporation invested capital from
abroad, apart from imports, the majority of goods that Big C's business in the country.
Big C also produces ham eBon effective HACCP standards thus purchasing fresh raw
materials and standards are essential. Prices of cattle feed and poultry increased in
recent years due to import some essential raw materials at higher prices than the
previous 20-50%. So the cost of raw materials increased greatly, affect the price of
products. The cost for the warehouse has increased due to the impact of real estate
prices. Gasoline prices thus leading to escalating transport costs also increased.
b) Manufacturing: With large supermarkets ensuring sufficient supply of goods
for the system is very large. Big C is a manufacturer of labels eBon with delicious fish
and cold meats at reasonable prices. Also at every supermarket in the system are
factory making bread at the supermarket with the professional baker baked breads are
delicious Vietnam favored customers (over 50% of customers to Big C can look at a
bakery). With supermarkets and production areas of its own brands and nearly 3000
employees, although to produce large quantities to meet the demand but Big C
remains focused on each stage of the production process to ensure the number of
patches for the products best meet the needs of consumers.
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c) Logistics Export: Products of Big C is always associated with cheap, but
good quality should be very confident people choose appreciated. All of Big C
supermarket system that has preserved the standard, it can stamp commodity ensure
food safety.
d) Marketing and sales: More than 10 years of presence in Vietnam market,
developing the Big C brand was done quite well with investments in marketing to
research and development of the market and after-sales service has help companies to
improve sales, increase consumption of products on the market. The company should
continue to maintain what has been achieved and continue to constantly develop the
market and expand business scale. Just a regular 3 weeks, Big C released a
promotional newsletter with pricing policies and attractive gifts. These promotions
have an ever larger scale, with rich gamut themed restaurant (beauty, housework,
shopping, children, fashion,etc,...) create the diversity of options for customers, strong
prices (to 50% of product value) as the program "an unprecedented low price" with 20
essential commodities have been highly acclaimed customer. In addition, Big C also
build corporate image through philanthropy. Big C always wanted to become a
business with a high sense of responsibility, actively participate in charitable
activities, such as community: Giving the love for Dong Nai province; Society
donated 50 million VND for Agent Orange victims in Dong Nai province; gifts for
children with difficult circumstances in the city: Hanoi, Ho Chi Minh City, Bien Hoa,
Da Nang and Hai Phong International Children occasion; Poor Fund donated Hanoi
(130 million VND), sponsored the program "Beyond the fate".
e) Services:
Activities and the principles of the Big C in distribution services to customers,
work procurement, cooperation with suppliers, public relations, community,
relationships with investors as well as all officers and employees of the system is
based on five values of Big C: Customer satisfaction, innovation, invention silver,
solidarity and mutual assistance. Big C has incentives for free shipping for buyers

with over 500 thousand invoices and within 10 km, changing conditions, customers
with bill intact within 48 hours after purchase,etc,... In addition the company also
launched a website to help customers to learn about the company, the type of goods
and the promotion of biological information selected customers.
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4.1.2 The complementary activities
a) Management buy: The administrator acquired companies performed well
when the market is buzzing economic crisis, the Big C has attempted to curb the rise
in prices through negotiations with suppliers are not price increases, especially for
essential commodities. Adamantly refused the request to increase the price without
good reason. In fact, most of the price index of commodities at Big C bracket down
sharply from late 2008 and early 2009. The policy on the best price for the goods
subject to price stabilization as meat, fish, bread, dry food, ... Even if market prices
increase; commitment to buy in bulk, stable, enabling manufacturers optimal planning
production planning and cost savings.
b) Development of technology: Big C is a trademark of the retail group Casino,
modern

procurement

systems,

manufacturing

technologies

of

Europe,

the

deployment's management, staff and have qualified the experience.
c) Human Resource Management:
At present, the phenomenon of brain drain, labor trends, human resource study
and work abroad are increasingly popular. That is because they are important not use,
do not find professional development opportunities. Work environment, respect the
role of the person, the equal treatment,... is something lacking in most Vietnam
enterprises. Big C thing to do is to create business culture training, turning it into
internal advancement opportunities for employees. They see the development of
human resources is an investment, not considered as expenses. The value and benefits
that they earn higher multiples than the sums spent for its employees to go to school:
The dedication of the staff. This is a management strategy that very little manpower
now done and achieved success as Big C.
d) Infrastructure organization:
The way Big C layout style presentation abroad, the overview outside if you do
not know anything about the Big C you will not dare to step in because it looks a little
luxury, but in fact the price of commodities which are most turn. Inside, the wide
aisles relatively easily push the car to choice, the display is relatively easy to find,
easy to choose, because it is not built up more floor space very airy and spacious
feeling created. Infrastructure of Big C-style modern, comfortable, spacious and

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modern technology to create customer attraction, creating confidence in the quality of
the customer.
4.2 Determination of competitiveness.

Big C is proud to be a destination for consumers and retailers is the best to
satisfy our customers. Big C has succeeded in using cheap strategy, quality assurance
and utilities, saving for customers with rivals. So Big C had gained the advantage
compared to the other competitors, such as Co-op Mart, Metro, Citimart,
HaproMart ,etc,... Come to Big C customers are always assured buying the cheapest,
quality assurance and good service.
5. Competitive position of businesses
5.1 The model EFAs
General
The external factors

Importance Classified

important
point

Explanatory
Note

The chance:
Vietnam joined the WTO

0,2

3

0,6

The retail market is growing

0,1

4

0,4

People's income increasing

0,1

4

0,4

One billion stimulus package

0,05

2

0,1

Economic growth in Vietnam
Challenging:

0,05

3

0,15

Next page tougher

0,2

4

0,8

Shopping habits

0,1

3

0,3

Economic crisis

0,05

2

0,1

Supply of goods

0,1

3

0,3

Legal Policy System
Total marks

0,05
1

2

0,1
3,25

Comment: From a total score of 3.25 shows the degree of influence of external
factors on the company's strategy was great.
5.2 The model IFAS

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Importance Classified
The internal factors

General

Note

important
point

Strengths:
Management experience

0,1

3

0,3

trademark

0,05

3

0,15

Facilities

0,15

4

0,6

Professional staff

0,1

4

0,4

Price, structural items
Weak:

0,2

3

0,6

High cost

0,05

2

0,1

Frequently overloaded, slow

0,1

4

0,4

payment

0,1

3

0,3

Quality of Goods unstable

0,05

3

0,15

Narrow distribution system

0,1

2

0,2

Capture customer demand slow
Total marks

1

3,15

Comment: From a total of 3.15 points is the level we see the effects of internal
factors to the company's strategy is quite large.

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CONCLUSION

Business strategy is the direction of the business operations, it stipulates the
types of products or services that it undertakes, business scale, manufacturing
resources, profitability and growth prospects of business. Because of these reasons
that in their business operations, companies need to build their own business strategies
appropriate to each condition and the specific circumstances, this is the essential
requirement for any enterprise.
Thus, we can see that the strategy of the business is a combination of what the
environment? What can businesses? What businesses want? In general, in the life of
the business, strategy is the art of designing organizations the means to achieve longterm goals (in this economic objectives), the relationship with an environment
variable change and competition.
Define strategy is a necessary task for the existence and development of any
business, because in order to survive and grow in the market mechanism, must know
the environment of business survival .
Effective combination of these factors will assist strategic direction and provide
excellent service. This is an ongoing activity to establish and maintain strategic
direction and operations of an organization; making daily decisions to resolve the
situation is changing and the challenges in the business environment.

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