I. Introduction

II. Profile of Business2.1. History & VMGOsBoA Donut are established in 2010. The two first stores located in Ho Chi Minh and Hanoi under the name DOCO. After that, it come to Danang and change the name into BoA. The store in Danang was located in Nguyen Chi Thanh. In 2013, it moved to Bach Dang St. At present, there are two stores located in Danang, at Bach Dang and Nui Thanh St. The owner names Bui Van Minh. Until now, main customers of BoA include teenagers, those who love sweet stuffs and look to have western style meal and coffee.By the time of establishment, BoA has become the first and leading premium donuts and coffee brand of Vietnam. In 2020, BoA wants to expand their brand and products in Asian, compete in the international donut industry. To maintain their position in confectionary industry of Vietnam, BoA create more than 36 variety of donut and many kind of beverages. They also confirm that all the material will be export to ensure the product quality and update constantly the new products to diversify their core competences.DifferentiationCompetitors2.2. SWOTStrengthsWeaknesses

Convenience fast food choiceFriendly service staffHigh quality with 36 types of doughnutsFreshly bakedInterest promotion (buy 3 get 1, etc.)Easy to find location.Long experienced (from 2010)Weak competition with other substitutes such as panna cotta, tiramisu, cupcake, choux, etc.Constant rift with the land-owners.Donuts are too sweetLow market adaption.

OpportunitiesThreats

Western culture importOnline, mobile business and marketing by social mediaSelling through others company or Donut distribution partyIncrease its presence in neighbor countries like Cambodia, Lao, Philipine, etc.Augmentation of obesity and diabetes as well as the other diseases related to the sugar.People are tending to healthier ways of eating.Competition from many local cafes and Bakeries.Not a daily consumption.Increase of petrol cost and depreciate the local currency.

2.3.

III. Competitor analysisIn Danang city, Molly is the typical coffee shop which is competing with BoA. It is chosen to compare the KPIs in following table.Molly Ham Nghi StBoA- Bach Dang St

Marketing and Sales

Daily number of shipping time (Per day)5-75-10

Daily number of customers (Per day)80 - 130 15

Daily number of new customers (Per week)7-1210-20

Satisfaction rate on Facebook3.6/54.1/5

Monthly revenue (VND) 50 Mil23 millions

Human resources

Number of training (times/year)15-189 - 11

Number of individual mistake (times/ week)5 3

Number of employee leave (per month)2 2

Number of employee working118

Number of employee late1 time/ week/person2times/month/person

Finance

Cost pay for raw material (Per Month)21 Mil 3,5 millions

Cost pay for office Charges (Per Month)3 mil 1 millions

Cost pay for Advertising (Per Month)1,5 mil 1 millions

Cost pay for Logictics (Per month)2,5mil1 millions

Salary for employees per employee (VND) 1,7- 2 million 1,5 millions/person

Operation

Customer complants (times/week)7 4

Number of product returns (product/week)4 10

Number of on-time deliveries (per day)None25

Percentage of wasting food and beverage8%10%

Response times for ordering(Per 1 time)2-3 min 3-5 mins

Table 3.1: Comparison of KPIs between Molly Coffee and BoA Coffee & Donuts. (Authors observation, 2015)1. Marketing and SalesAs per shown in previous table, firstly, Molly has lower shipping times per day than BoA because of the characteristics of products. While Molly focus essentially on drink and food as spaghetti, sandwich, tiramisu, etc. the characteristic of BoAs main product Donut is convenience and customer then want to take it away. However, with the donuts price quite high, shipping can cause the financial problem because of shipping cost. Secondly, in daily number of customers, Mollys customer number is obvious higher than BoAs. The reason is that Mollys product, especially drinks and cake, are cheaper. These are more supported by the low and average income people in Danang more than BoA where the products price is quite high. It can be understood that BoA is located in Bach Dang St. It will cost a lot of money of BoA to rent. Moreover, the raw materials for baking is export to ensure the Donut quality. Thus, it results in higher revenue of Molly than BoA with 50 and 23 million VND per month respectively.In spite of this, BoA has 10-20 new customers per week, higher than Molly with 7-12 people per week thanks to its location where tourists always pass. In addition, BoA attract new customers include the foreign people by its western style food Donuts.Rate on Facebook are quite ambiguous but it still identify how satisfied of Customers are. Donut get higher rate than Molly. Customers often appreciate the view from BoA (they can see the Han riverside) and airy atmosphere. Additionally, 60% people surveyed said that the drinks taste of BoA is better than Molly. (face to face survey, 2015)2. Human resources Molly at Ham Nghi St belongs to the coffee shop chain of Group directed by three people: 1 Vietnamese and 2 Japaneses. In fact, Molly always attract special importance in training. Molly recruit employees at least three times per month. Then, they often open the training course in weekend not only for new but also old staffs, not including the training course in working time. For BoA, because of smaller scale, training courses is simpler. It is essentially for new staffs.It can be seen that number mistakes in Molly are higher. In Molly, customers have to queue up in front of cashier to order. Mistakes can be made in case of the fact that a lot of customers are waiting for just only one cashier. Moreover, if any problem, customer have to come to cashier and order again. For BoA, each waiter/waitress will take responsible for each area in shop. They have to hold clearly what their customers order and serve exactly and immediately. It is more effective because one staff serve a few customers.However, the number of customer in Molly is also higher. Based on observation, there are 5-6 staffs will work for barista and cooking in Molly. The rest will be cleaner and vehicle keepers. In BoA, there are two bakers, one cashier and 5 waiters.3. Finance4.

IV. Blue ocean strategy application1. Strategy Canvas

2. ERRC Framework

3. Value-Innovation4. Market space

I. Ansoff Matrix

APPENDICE