1.

innovation vs strategic advantage, 1 example of innovation of product in car

industry in vnam
Definition strategic advantage: if a company or country has a strategic advantage, it has a
particular characteristic or way of doing things that makes it more successful than others

Some of the ways in which enterprises can obtain strategic advantage through innovation.
CAR:
With the mission to create a sustainable future, in 2021, VINFAST has introduced the first
electric car line (VF e34), the first electric cars in Vietnam. Also, the car is smart-controlled
with the Vinfast application for some assisting functions: locating, maps, car battery tracking,
movies, making appointments, etc.
Phenikaa-X Vietnam introduced the first self-driving car in 2021. Passengers will determine
the destination via the mobile app and the car will automatically drive there without any
manual direction from humans. The engine runs by electricity and requires 6 hours to be fully
charged for 40 kilometers consumed. (xe ô tô không người lái đầu tiên tại việt nam, chạy
bằng điện, đưa địa điểm cần đến qua app rùi xe tự đưa mình đến đó)
BEER:
Sabeco introduced Bia Saigon Coffee - Infused Beer with the combination of coffee and
beer, the favorite drinks in Vietnam, in 2022. The product is aimed to bring Vietnamese
youngters with new experience with their favorite drink.
Heineken introduced the Heineken 0.0 with only 69 calories/330 ml and 0% alcohol. This is
to satisfy the demand for a balanced and healthy life of beer consumers, as they want to
enjoy the taste of beer in their everyday moment, even when they could not drink beer
before. (bia ko cồn ít calo)
SMARTPHONE:
In 2020, Vsmart introduced a smartphone named Aris Pro with a hidden camera and 5G,
which had not been produced by any smartphone brands in the world.
Samsung Galaxy S10 was initially introduced to the Vietnamese market in 2019, with the
very first wide angle lens (camera góc rộng). The back camera enables the aperture up to
F2.4 with the resolution up to 16 megapixels. Moreover, the product can also turn out to be a
wireless charging device for Samsung's earphones, which had not been introduced by any
other smartphone product before in Vietnam. (đại khái là cái samsung s10 nó là điện thoại
có camera góc rộng đầu tiên của samsung, có khả năng làm sạc không dây cho sản phẩm
tai nghe của samsung lun. coi hình cho dễ hiểu nhe)

2. explain positioning concept, choose 3 products + list attributed customers use to

distinguish btw competing brands
- Positioning concept:
+ Market positioning refers to how target markets perceive an organisation’s offering
in relation to its competitors’ offerings.
+ Market positioning is fundamental to how customers choose between competing
products.
+ Organisations may choose to undertake positioning at the company or brand level,
or to focus on differences with close competitors.
+ Process:
1. Determine how the company wishes to be perceived by market segments
+ Analyse current position
+ Assess competitive position
+ Reposition towards the desired position in the buyer’s mind
2. Develop an appropriate marketing mix for each segment
+ Be consistent with desired position
+ Be long-term sustainable
BEER
 - EXAMPLE: https://ivypanda.com/essays/positioning-mapping-and-situation-analysis/

The positioning map reflect the amount of sugar and caffeine as determinant
attributes that affect purchasing decisions. The map compares the following
products: Pepsi, Coke, and Diet Coke.
+ Coke and Pepsi are placed closely together on the perceptual map. It means
that consumers perceive their offerings as similar ones across the whole
range of products.
+ There are significant variations in the amount of sugar in Pepsi and Coke. The
same holds about diet offerings of Diet Coke.
3. What is supply curve? why it slopes upwards? factors that shift supply curve
 - Supply: an economic concept that describes the quantity of goods and services that
a household or firm chooses to sell at a given price.
- Supply curve: shows that quantity of goods or services a firm is willing to produce at
each price.
- The curve slopes upward because the higher the price is, the more is the firm willing
to produce.
- Factors that shift the supply curve:
- Price of inputs
- Natural condition
- Technological improvements
- Availability of credits
- Changed expectation
- Demand: an economic concept that describes the quantity of goods and services that
a household or a firm chooses to purchase at a given price.
- Demand curve: shows that quantity of demanded goods and services a household or
a firm is willing to buy at each price.
- The curve slopes downward because the increase in price reduces the quantity of
demanded goods or services.
- Factors that shift the demand curve:
- Changes in income
- Changes in price of substitutes
- Changes in price of complementary goods
- Demographic effects
4. explain discovery vs creation theory + example for each
Discovery theory: OEIE
- Opportunities: Opportunities exist, independent of entrepreneurial actions, just
waiting to be discovered and exploited.
- Entrepreneurs: Discovery of new means-ends relationship. Entrepreneurs actively
look for opportunities and they are particularly adept at recognising opportunities
(alertness).
- Information conditions: The possession of information that is appropriate to a
particular opportunity leads to opportunity discovery.
- Entrepreneurial process: Causation: the outcome is given. The entrepreneur selects
between means to achieve that outcome by starting with ends, analysing expected
returns, doing competitive analysis, and controlling the future.
Example: According to Vietnam Economy Magazine, despite the complicated development
of the epidemic, businesses have discovered many opportunities to expand their business
from consumption behaviour. When the pandemic broke out, more than 81% of consumers
changed their shopping behavior to online, and more than 90% said they would continue to
shop. TikTok Shop, which was formally established in early 2022, has risen to the top three
e-commerce platforms after one year, trailing only Lazada and Shopee.

Creation theory:
- Opportunities: Opportunities do not exist until entrepreneurs engage in an iterative
process of action and reaction to create them.
- Entrepreneurs: Creation of new means-ends relationships. Entrepreneurs may or
may not be different than non-entrepreneurs and may be changed by the opportunity
formation process.
- Information conditions: Opportunities may be unrelated to currently available
information. Extensive new knowledge may have to be created from scratch.
- Entrepreneurial process: Effectuation: sets of means are given. The entrepreneur
selects between possible effects that can be created with those means by starting
with means, analysing affordable loss, establishing and leveraging strategic
relationships, and leveraging contingencies.

Example: M_Service is the first firm in Vietnam to offer the MoMo e-wallet on mobile
phones, allowing customers to conduct transactions akin to banking on the go. This is the
first service in Vietnam to assist consumers in making electronic payment transactions
directly on their mobile phones, leading to the increase in non-cash payments.

5. adv disadv of 3 types of market entry for a client who wants to move into VN car
industry

Smartphone: Vietnam is one the 4 fastest growing markets for smartphones users in the
Asia-Pacific region. This is expected to be a foundation for a boom in the number of smart
phone-based enterprise in Vietnam.
1. A new business start-up:
ADVANTAGES:
Ability to determine business direction:
A new business start-up allows the owner of the venture to exert near-total control over the
smartphone enterprise.
Flexibility: A startup business can be molded and shaped to fit the needs of both the owner
and the market. In addition, the start-up business owner is able to build up the project slowly
over time, and get it right as it progresses.
Cost minimisation: Many new small businesses can start trading with a lower cost base
than established businesses, since they do not have the ongoing costs of their established
competitors or any of the inefficiencies that may have built up over time.
Lifestyle goals: A new business allows the owner to develop a particular desired lifestyle
(more convenient hours, to spend more time with friends and members of their family, to
work from home, to build an asset they can pass on to their children, or to avoid a stressful
environment in their current workplace)

DISADVANTAGES:
Raising capital: Because a new business does not have any established financial history or
resources to draw on, financing the business venture can be difficult. If the intending
business owner does not have the necessary access to finance, the business may quickly
fail from a lack of sufficient start-up funds or working capital.
Lack of an established customer base: The formation of a new business means that the
entity does not yet have any customers of its own. Although the owner may be in a position
to attract customers through personal networks and previous industry experience, there are
rarely enough to immediately create a viable business.
Cash flow shortages: Lack of capital and a shortage of customers may mean that the
business’s cash flow will be under severe stress during the early days of its existence. When
cash flow is tight, a sudden unexpected change in the business environment may mean that
the business can no longer pay its bills.
Learning curve expenses: Because a new enterprise is one in which nobody has
previously done the work required, there will be a considerable number of one-off events
where the owner will have to invest time, effort and money to get the business working
effectively

2. Purchasing an existing business:

ADVANTAGES:
- allows a proprietor to begin trading immediately
- easier to arrange finance for the venture
- established track record of the firm allows the prospective owner to make a more
objective evaluation of likely future performance/
DISADVANTAGES:
- less flexible than start-up business
- difficult to establish purchase price
- may have existing liabilities which will passed over
3. Entering a Franchise system
ADVANTAGES:
- all aspects of organising and operating the business have already been investigated,
pre-tested and successfully implemented.
- have better survival rates
 - more easily attract customers using the presence of an established product or brand
name
- the cost of raw materials and supplies is often lower
- raising capital can also be easier
DISADVANTAGES:
- the purchase price for entering into a business system franchise is often quite high
- sometimes expected to pay a proportion of their profits to the franchisor
- lack of independence - must follow set of process/guidelines
- has a limited lifespan
Car: Vietnam’s automobile industry has grown significantly in recent years thanks to the
country’s fast-growing middle class and the competition is increasingly fierce
1. A new business start-up:
Advantages:
- Ability to determine business direction
A new business start-up allows the owner of the venture to exert near-total control over the
enterprise.

For example: Vinfast acquired the entire automobile distribution and production system of
GM Vietnam. In only about 3 months, we quickly saw Vinfast dealers and showrooms
"sprout" all over the provinces and cities in the great location.

In addition to owning the world's leading highly automated production cycle and the first in
Vietnam - VinFast automobile factory also masters all core stages, has the ability to
automatically manufactures the main components of an automobile.

- Tapping into the mentality of "national pride"

Invite Vietnamese people to participate directly in the designs from the beginning. Vinfast is
creating a product not only from Vietnamese people, but from Vietnamese people.

Disadvantages:

- Raising capital:

The business owners have to provide much of the initial capital themselves.

For example: Vinfast, they invested $3.5 billion, this is the highest investment in the last 10
years for a start-up in the car industry.

- Learning curve expenses

Because a new enterprise is one in which nobody has previously done the work required,
there will be a considerable number of one-off events where the owner will have to invest
time, effort and money to get the business working effectively. For example: recruit and train
staff, devise an initial marketing campaign, and make the firm known in the marketplace.

Ex Vinfast: They train highly skilled technicians in partnership with the Eckert school in
Munich (Germany).
 - VinFast's challenge is to confront and compete with many experienced "big guys" in
the automotive industry such as Hyundai, Toyota, Mazda or BMW, Mercedes. Those
are all big brands that have a certain position.
Cars are not only a means of transportation but also a valuable asset in the family.
Therefore, the immaturity can cause customers to doubt the quality and durability. VinFast's
challenge is not only to create perfect products, but also to build trust in customers and
affirm its position in the minds of customers.

2. Purchasing an existing business (cái này là Vinfast mua GM của Vietnam thoi
chớ hong phải mua nguyên cty GM)
Advantages:

- allow a proprietor to begin trading immediately, since an established business

operation, cash flow, staff, product range and customer base already exist
Example:

Vinfast receive the transfer, take over the entire GM factory in Hanoi and implement
investment activities to increase capacity to produce new small cars licensed from GM.

VinFast accepts the current authorized dealer network of Chevrolet brand and becomes the
exclusive distributor of Chevrolet branded products and services in Vietnam market.

Buying GM Vietnam represents VinFast's goal of rapid development when taking advantage
of GM's existing factory as well as US automaker's technologies to produce small cars. The
system of 22 Chevrolet dealers (including 8 in the North, 3 in the Central region and 11 in
the South) is the basis for VinFast to form a distribution network in the future. Convenient
sales and service network is one of the prerequisites for car manufacturers if they want to
boost sales.
- allow the prospective owner to make a more objective evaluation of likely future
performance than would be the case if starting a new enterprise.

Example: Vinfast receive the transfer, take over the entire GM factory in Hanoi and
implement investment activities to increase capacity to produce new small cars licensed
from GM.

Disadvantages: (cái này nó mua lại công ty của ngta giá cả như nào, vấn đề như nào ko
public nên ko biết ghi ví dụ sao)

- the issues involved in the purchase of a going trading concern.

- the prospective purchaser must also be able to correctly calculate a purchase price,
and know the appropriate issues to investigate before making an offer.
- the purchase will often entail assuming responsibility for debts or liabilities incurred
by the previous managers. These may include unpaid tax bills, accrued staff leave
entitlements, legal actions outstanding against the firm, or creditors whose accounts
are due. It is important to note that in many jurisdictions, such liabilities continue to
rest with the business itself, regardless of the change of ownership. Other potential
 liabilities such as undesirable or poorly trained staff, products with a poor reputation
in the marketplace, or a large base of unsatisfied previous customers.

3. Entering a franchise system

Advantages:

- Thaco Truong Hai can easily utilize the localization advantage to strengthen the
BMW brand in the Vietnam market.

For example: 31 showrooms and wholesalers of Thaco in the North of VN, 13 in the Central
and 28 in the South.

- Enhance efficiency

Example:

+ BMW can focus on manufacturing, branding, and implementing promotional

activities.
+ A distribution franchise (Thaco Truong Hai) accounts for a larger percentage of retail
sales than a business format franchise.

- Most franchisors provide continuing training for franchisees, as well as the

technology.

example: The fact that BMW allows Thaco to assemble vehicles in Vietnam shows that the
German company has long-term business goals and realizes the potential of its partners to
develop in the coming years. Besides, the price of BMW cars can be reduced, making it
easier to reach customers.

Disadvantages:

- Cost and fees:

+ Buying a franchise is not cheap, there is usually an up front franchise fee on top of
the cost of the premises, equipment and inventory.
+ You need to be aware of the ongoing fees. In addition to the initial franchise fees
ongoing fees are payable by you to the franchisor.
+ You also need to be aware that some franchisors will require you to refurbish
franchisee stores to keep up with a changing image or theme.
- If a franchisor or other franchisees are receiving bad press or suffering from poor
public perception then you will ultimately suffer.

Example: BMW continues to make a decision to recall 99,000 vehicles in 2019 when there
were quite a few car models with fire and explosion incidents.

- Abiding by the franchisor’s rules and brand guidelines

One downside to purchasing a car dealership franchise is abiding by the rules laid down.
Every company has a set of rules, regulations, systems operations, brand guidelines and
other directives they may need you to follow. If you ever want to change the way you do
business, you will find this more difficult if your business is a franchise.

Beer: Beer is among the most popular beverages in Vietnam. The popularity of this
beverage in Vietnam has made the country one of the largest beer-consuming nations
worldwide. Besides, Vietnam also is among the top ten beer producers globally.

1. A new business start-up:

Advantages:
- Ability to determine business direction
A new business start-up allows the owner of the venture to exert near-total control over the
enterprise.

For example: SABECO's leadership has come up with many smart reform strategies to
bring new vitality to this enterprise. After nearly 2 years of transformation, SABECO has
begun to reap sweet fruits. The corporation's solid production system, professional
supply system, and innovative brand promotion strategies help SABECO's products
strengthen their foothold in the domestic market and are affirming its reputation in the
world.

- Tapping into the mentality of "national pride"

Saigon Beer is one of the best beers in Vietnam and has become very familiar to people
from the South to the North. Because of its popularity, Saigon beer's market share accounts
for more than 30% of Vietnam's beer market.

Disadvantages:

- Raising capital:

The business owners have to provide much of the initial capital themselves.

For example: In 2020, Sabeco continue to invest an additional 650 billion VND in the project
of expanding the capacity of Saigon - Quang Ngai Brewery. Besides investing in more
modern, high-speed production lines, they have invested in 17 new storage tanks, new
filtration lines, yeast propagation system and reverse osmosis (RO) water treatment system.

- Learning curve expenses

Because a new enterprise is one in which nobody has previously done the work required,
there will be a considerable number of one-off events where the owner will have to invest
time, effort and money to get the business working effectively. For example: recruit and train
staff, devise an initial marketing campaign, and make the firm known in the marketplace.

- When a new beer business is opened, you have to compete with many big guys like
Heineken, Tiger, Sapporo, etc. Those are all big brands that have certain positions.
 2. Purchase an existing business
Advantages:
- allow a proprietor to begin trading immediately, since an established business
operation, cash flow, staff, product range and customer base already exist
- allow the prospective owner to make a more objective evaluation of likely future
performance than would be the case if starting a new enterprise.
Disadvantages:
- the issues involved in the purchase of a going trading concern.
- the prospective purchaser must also be able to correctly calculate a purchase price,
and know the appropriate issues to investigate before making an offer.
- the purchase will often entail assuming responsibility for debts or liabilities incurred
by the previous managers. These may include unpaid tax bills, accrued staff leave
entitlements, legal actions outstanding against the firm, or creditors whose accounts
are due. It is important to note that in many jurisdictions, such liabilities continue to
rest with the business itself, regardless of the change of ownership. Other potential
liabilities such as undesirable or poorly trained staff, products with a poor reputation
in the marketplace, or a large base of unsatisfied previous customers.

3. Entering a franchising system

Advatages:
- The new business owner is spared the task of developing an operating system,
which usually represents a large amount of time and energy in most new small firms.

- There is less ‘learning by mistakes’, which can often cause many businesses to falter
and fail.
- Customers are usually attracted by the presence of an established product or brand
name, which is backed up by the franchisor’s ongoing marketing efforts.
- Most franchisors provide continuing training for franchisees, as well as market
research into emerging trends and purchasing behaviour.
Disadvantages:

- access to these systems does not come cheaply. The purchase price for entering
into a business system franchise is often quite high, and may be beyond the reach of
many small-scale entrepreneurs.
- In addition to this initial outlay, franchisees are sometimes expected to pay a
proportion of their profits to the franchisor, and may also be required to pay a
separate marketing levy.
- Many franchises are sold on a geographical basis. Franchisees are often restricted to
serving a set market, and may not expand beyond a predetermined boundary. The
opportunities for individual store owners to innovate and change the pre-set rules are
limited, since the core appeal of many franchises is their uniformity.
- If the parent company (franchisor) fails or is poorly run, then the dependent
franchisees may also be at risk of collapsing.