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 TABLE OF CONTENT TABLE OF CONTENT INTRODUCTION RESEARCH OF CONTENT General introduction about Big C supermarket Assess the impact of the macro environment 2.1 Political Factors – law 2.2 Technological factors 2.3 Economic Factors .6 2.4 Cultural factors - social .7 Assessment of intensity of competition 3.1 Existence of barriers to entry 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 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 Competitive position of businesses 15 5.1 The model EFAs .15 5.2 The model IFAS 15 CONCLUSION 17 17 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 RESEARCH OF CONTENT 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 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: http://www.bigc.com.vn + 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): * 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 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 - 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 Assessment of intensity of competition Respective power of Potential accession Threatening a new different stakeholders Other Stakeholders The supplier enter The competitors in the industry Competition among Bargaining power of buyers The buyer existing businesses Threat of product/ Bargaining power of Cạnh tranh Replacement suppliers DN 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 audiovisual equipment, all of which are sold cheaply The reason, BigC 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 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 + 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 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 10 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 11 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 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 12 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 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 13 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, 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 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 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 14 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 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 0,6 The retail market is growing 0,1 0,4 People's income increasing 0,1 0,4 One billion stimulus package 0,05 0,1 Economic growth in Vietnam Challenging: 0,05 0,15 Next page tougher 0,2 0,8 Shopping habits 0,1 0,3 Economic crisis 0,05 0,1 Supply of goods 0,1 0,3 Legal Policy System Total marks 0,05 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 15 Importance Classified The internal factors General Note important point Strengths: Management experience 0,1 0,3 trademark 0,05 0,15 Facilities 0,15 0,6 Professional staff 0,1 0,4 Price, structural items Weak: 0,2 0,6 High cost 0,05 0,1 Frequently overloaded, slow 0,1 0,4 payment 0,1 0,3 Quality of Goods unstable 0,05 0,15 Narrow distribution system 0,1 0,2 Capture customer demand slow Total marks 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 16 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 17 ... 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... 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... 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 12 c)