Post on 15-Apr-2017
HOA NI SHOE COMPANY
CORPORATECORPORATEPROFILE: PROFILE: HOA NI HOA NI
SHOE COMPANYSHOE COMPANY
Established in 1968 as a prefabrication plant to produce exported leather
goods.Joint-stock company,
employees in the company hold 49%
and 51% is holded by the state.
Specializes in producing genuine
and imitation leather products.
Manufactures products for exporting.
PRODUCTS & SERVICES
Manufactures products based on foreign partners
preferences.
Gloves, shoes, briefcases & Men's Wallet, women's sandals & shoes, small key bags
CASE OBJECTIVE
To obtain more control over foreign markets as well as to be successful in domestic markets
are problems faced by the company.
Đổi Mới is the economic
reforms initiated in Vietnam in 1986 with the
goal of creating a "socialist-
oriented market economy"
"Doi Moi"
EFFECTS
Prior Doi Moi, and the opening up of Eastern Europe, business was
very difficult.
HNSC had to seek partners under restricted conditions and somewhat
closed markets.
Collapse of eastern Europe bloc and
introduction of more open market policy in Vietnam, businesses in general and
with HNSC in particular have positively affected.
.
CORPORATE PERFORMANCE
1992exporting to
Italy & Thailand
1996Started to
export South Korea
Recently, developed a
reputation for on time
deliveries and high product
quality.
1998, HNSC
produced
600,000 women's shoes,
500,000 gloves,
600,000 different
bags.
Annual Turnover of 51.5 billion dong in the year 1998.
1 USD = 13,391.33695
3 VND in 1998.
PRICING STRUCTUR
E
Raw materials account for a large proportion (68-75%) of price
structure of footwear.Enterprises
import most of the important materials such as leather,
leatherette, canvas for
upper parts, PVC, PU paint,
fabric, and glue.
Every year, Vietnam spends approximately US$ 300 million on importing leatherette and leather.
VIETNAM'S DOMESTIC FOOTWEAR SECTOR
ANALYSIS
PORTER’S FIVE FORCES ANALYSIS
High cost barrier and low profit
margin.High
Investments as it requires well
setup distribution channels
New Free Trade Agreements
Liberal laws for foreign entrants
THREAT OF NEW
ENTRANTSTHREAT OF
SUBSTITUTES
INDUSTRY RIVALARY
BARGAINING POWER OF BUYERS
BARGAINING POWER OF SELLERS
Except for atheletic,
orthopedic & dancing shoes
sandals, slippers,
croax etc. Are some
substitutes
Switching cost is very
low.
Technological Advancement
s
Buyers are less concentrated, so reduces the buying power.
Don't buy in large volumes
Buyers are more sensitive
to prices.
Any supplier that meets
quality standards for the company will be able to supply these commodity
goods.
Supplier concentration- Fragmented
Highly competitiv
e
Rapid Growing Market
High exit barriers
FORCES TREND ANALYSIS RATING
THREAT OF NEW ENTRANTS
Medium to high 8/10
THREAT OF SUBSTITUTES
Low to Medium 4/10
INDUSTRY RIVALARY High 10/10
BARGAINING POWER OF BUYERS
Medium to High 6/10
BARGAINING POWER OF SELLERS
Low 2/10
10
08
06
04
02
00
10
08
06
04
02
00
10
10
10
08
06
04
02
00
08
0604
02
0806
0402
00
00
THREAT OF NEW ENTRANTS
THREAT OFSUBSTITUTES
BARGAINING POWER OF BUYERS
BARGAINING POWER OF SELLERS
INDUSTRY RIVALARY
CONCLUSION FOR DOMESTIC FOOTWEAR MARKET ANALYSIS
The corresponding market is highly competitive with low entry barriers and high exit barriers.
The footwear market is operating on low profit ranges.
RECOMMENDATIONS
Increase Market penetration pricing.
HNSC should increase marketing activities and try to increase
domestic as well as international consumer awareness about their
products, so that they can compete well in this highly competitive
market.
SWOT ANALYSIS OF HNSC
SO STRATEGIES ST STRATEGIES
WO STRATEGIES WT STRATEGIES
RECOMMENDATIONS
HORIZON PLANNING
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