Diagnose of the business

1. Target customer:
+ Age: From 23- 35 years old ( Gen Y)
Gen Y: is a group of people who have first access to social media, technology,
forums, social networks,etc. They are considered as the key workforce of the
economy, because they have knowledge of modern information technology and
possess a lot of wealth in society. This is also the main customer target
Gen Z: is the generation born right after Gen Y, referring to the generation of
creative and dynamic young people. Most Gen Z have been exposed to and
used technology and media is not difficult. Modern and fashionable decorative
handicraft products are products that young people are interested in.
+ Gender: women and men
+ Job profile:
All the professions- especially workers
● For workers, handicrafts are an indispensable part of their lives.
Necessary items for the house such as baskets, plates, baskets, etc.
+ Income/ month
- Income/month Based on statistics, Vietnam's GDP per capita in 2021 is
$3,694 (~87 million VND), which works out to about $307/month (~7.4
million VND).
The target of CraftVista is people with the following income levels
=> Having a stable income, from 2 million VND or more. CraftVista have
extremely
diverse prices, from high to low, suitable for all incomes.
+ Way of life:

Based on statistics, we find that Vietnamese people are gradually changing

their minds and becoming more active in protecting the environment. And
people who tend to love the environment and know how to protect it are the
goals that CraftVista is aiming for.
+ Needs and goals;
● Uniqueness and personalization: Customers often look for arts and crafts
products to express personalization and uniqueness in interiors or in gift
 giving. One of their main goals is to own or give away handmade items
that are unique and unavailable to anyone else.
● Beauty and aesthetics: A common need of customers is to find
handicraft and fine arts products with high aesthetic value. They want to
decorate the house or make gifts with beautiful and meticulous items.
● Innovative and quality products: Customers need high-quality arts and
crafts products that demonstrate the care and technique of the craftsmen
who make the products. They often look for products with artistic value.
● Arts sponsorship and promotion of local arts: Some clients have a goal
of supporting and promoting local arts. They can shop at your store to
support the local artist community.
● Creative tools and materials: In addition to available handicraft
products, some customers need to buy creative tools, materials and
materials to create their own works. Their goals may involve learning
how to do crafts or participating in creative projects.

* Target number of customers;

- In the period 2020-2021, when the trend of "green living" among Vietnamese youth
is increasingly spreading, products made from bamboo, palm, etc. will become more
attractive and trusted by gen X and gen Y use. They are working people and have a
stable income and their need to buy lifestyle products is higher than other generations.
That's why we choose Gen Z and Gen Y as the main target audience.
By 2023, Vietnam's population will be about 99 million people
- When the number of gen Y accounts for 27%, about 27% * 99 million people =26,73
million people.
- According to the age target of gen Y, it is about 28-35 years old, accounting for
50%, about 50%* 26,73 = 13,36 million people.
- When the number of Gen Z accounts for 25%( 1997-2012), about 25% * 99 million
people = 24,75 million people.
- According to the age target of gen Z, it is about 23-25 years old, accounting for 2%,
about 2% * 24,75= 495 thousand people.= 0,495 million people
=> The core target of products is: 13,6 + 0,495 = 14,095 million people
Core target audience size: 14,095 million people.

2. Competition in the industry:

Direct competitors are businesses that are offering identical or similar products or
services as the focal firm. These are organizations that customers can easily buy from
instead of from the firm, so these companies represent the most intense competition.
Direct competitors offer the same products and services, and customers often compare
prices, features, and deals from these competitors as they shop. Based on these
features, we have identified :Tăng Tiến Bamboo and Rattan Craft Village and Rattan
Craft Village, Liên Khê Bamboo as our direct competitors.
- Tăng Tiến Bamboo and Rattan Craft Village: with over 300 years of formation and
development in Tăng Tiến commune, Việt Yên district, Bắc Giang province. The
village is renowned for its high-quality products such as mattresses, pillows,
handbags, curtains, and more. The craftsmen carefully preserve and ensure that the
products from the craft village are free from issues like pests or fading. It is precisely
this quality that has gained trust and popularity for the Tăng Tiến craft village's brand
among consumers.
- Liên Khê bamboo and Rattan Village: located in Khoai Chau district, Hung Yen
province, is one of the renowned bamboo and rattan craft villages for export in our
country. The craft village was established in the 1990s and has continued to develop
to this day. In the initial stages, the establishment of the craft faced numerous
challenges and seemed almost unsustainable. However, the passion for the craft of the
local people has enabled the craft village to not only survive but also expand, with
numerous small-scale establishments throughout Lien Khe commune.

3. Bargaining power
- CraftVista is a store that sells handicraft products woven from sedge, seagrass,
rattan, and bamboo. To diagnose its bargaining power, we need to analyze the
bargaining power of its buyers and suppliers:
● The bargaining power of buyers refers to the pressure that customers can put on
businesses to get them to provide higher quality products, better customer
service, and/or lower prices. The bargaining power of suppliers, on the other
hand, refers to the ability of suppliers to influence the price or quality of goods
and services they provide. In the case of CraftVista, the bargaining power of
buyers is likely to be high because handicraft products are not essential goods,
and customers have many options to choose from. If CraftVista fails to provide
high-quality products or good customer service, customers can easily switch to
other stores. This puts pressure on CraftVista to maintain high standards and
competitive prices to retain its customers.
● The bargaining power of suppliers is likely to be low because the raw materials
used in handicraft products are widely available and can be sourced from many
different suppliers. This means that CraftVista has many options to choose
from and can negotiate favorable prices and terms with its suppliers.
→ Overall, CraftVista’s bargaining power is likely to be moderate, with the
bargaining power of buyers being higher than that of suppliers. To maintain its
competitive edge, CraftVista needs to focus on providing high-quality products and
excellent customer service while keeping prices competitive.
4.Threat of new competitors
- The threat from new competitors is a significant concern for businesses in various
industries including Craft Vista. We must look closely at the threats and have
solutions to prevent them. Prevent and minimize the risks that these issues bring.
Below is how the threat of new competitors may impact Craft Vista:
1. Price Competition: New competitors might employ a price competition strategy,
especially if they have lower production costs or an aggressive marketing strategy.
2. Technology and Innovation: New competitors may leverage new technologies to
create modern and attractive products
3. Brand and Marketing: New competitors could build a strong brand and effective
marketing strategy to attract customers.
4. Quality and Diversity: New competitors may bring diversity and higher quality to
their products.
5. Distribution Network and Customer Reach: New competitors might establish a
wide distribution network and effectively reach customers.
- From predicting possible threats, Craft Vista also offers a number of solutions to be
able to promptly resolve if threats occur:
1.Continuous Research and Innovation:
- Organize research and development teams to maintain uniqueness and innovation in
products.
- Continuously monitor new technological trends and integrate them into the
production process.
2.Invest in Marketing and Brand Building:
- Strengthen online and offline marketing strategies to increase brand awareness.
- Build relationships with artists and celebrities to create attractiveness and enhance
brand credibility.
3.Enhance Quality and Diversity:
- Focus on improving product quality to retain current customers and attract new ones.

- Expand the product range to meet the diverse needs of the market
4.Distribution Network:
- Research and establish relationships with new distribution partners to expand market
presence.
- Optimize distribution processes to deliver products to customers quickly and
efficiently.
5.Strengthen Customer Relationships:
- Build an online community to interact with customers and gather feedback.
- Organize special promotions and incentives to retain customers and generate interest.
6.Cost and Financial Management:
- Adjust pricing strategies to balance quality and value for customers.
- Optimize production and operational processes to minimize costs and maximize
profits.

5.Threat of substitutes
In the context of business strategy, the availability and attractiveness of substitute
products are important factors that can influence the competitiveness of a particular
product or industry. It's also a threat to our Craft Vista business. Here are some issues
with replacement products and how we deal with them when they arise:
1.Price Competitive Substitutes:
- Threat: New competitor enters the market with handcrafted products made from
alternative materials that are cheaper, providing similar aesthetic appeal.
- Mitigation: CraftVista can minimize this threat by optimizing its production
processes, negotiating better deals with suppliers, and focusing on the unique
craftsmanship and quality of its traditional materials. If a competitor may introduce
machine-made replicas at a lower cost, CraftVista can highlight the authenticity and
skilled craftsmanship of its handmade products. 2.Diversity and Convenience:
- Threat: Competitor introduces a line of handcrafted products that are not only
visually appealing but also designed for multi-functional use, providing customers
with greater convenience.
- Mitigation: CraftVista can respond by expanding its product range to include
versatile items, such as storage solutions, home décor with dual functions, or products
suitable for various spaces. This strategy ensures that we remain competitive by
offering a diverse range of products catering to different customer needs.
3.Quality and Performance:
- Threat: Shifting consumer preferences lean towards minimalist design, impacting the
popularity of intricate traditional handcrafted products.
- Mitigation: CraftVista can counter this threat by investing in research and
development to enhance the quality of its traditional materials. If a competitor
introduces products with enhanced durability,we can explore collaborations with
artisans skilled in new techniques or incorporate additional features to maintain a high
level of quality and performance.
4.Consumer Trends and Preferences:
- Threat: Shifting consumer trends may decrease the attractiveness of traditional
products.
- Mitigation: By closely monitoring market trends, CraftVista can proactively adjust
its product designs to align with the evolving preferences.If there is a rising demand
for sustainable and eco-friendly products, we can emphasize its commitment to using
environmentally friendly materials in its traditional handcrafted items.
5.High-Tech Substitute Products:
- Threat: Substitutes utilizing advanced technology may increase value and modernity.
- Mitigation: To counter this, we can explore integrating subtle technological elements
into its products. Incorporating smart features like wireless charging stations in
handwoven baskets or creating decorative items with embedded LED lighting. This
way, we maintain the charm of traditional craftsmanship while embracing modern
trends.