Kinh Do

Topics: Strategic management, Marketing, New product development Pages: 26 (6058 words) Published: March 17, 2013


Task 13
Possible alternative strategies3
1.1 SWOT Matrix3
1.2 Ansoff Matrix4
1.3 SPACE Matrix6
1.4 GE McKinsey Matrix8
Evaluate possible alternative strategies11

Task 219
* Select the final appropriate future strategy and prepare a strategic plan19



Kinh Do was established in 1993 and has gone through 17 years of formation and development.  Up to now, Kinh Do has become a system of corporations in the field of foodstuff including: cake, candy, beverage, ice-cream, and products from milk. The development strategy of Kinh Do is to maintain as one leading foodstuff group in Vietnam and orient to become a multi-sector group including: foodstuff, real estate, finance and retail in order to ensure the sustainable development in the future. From the size of only 70 staffs at the initial establishment, up to now, Kinh Do has total staff of over 7,741 persons. Total charter capital of Kinh Do Corporation is 3,483.1 billion dong. Total revenue reaches 3,471.5 billion dong, in which the revenue from foodstuff accounts for 99.2%, total profit reaches 756.1 billion dong.  Based on information about external and internal environment to the company from the first assignment, in that assignment, as a strategic consultant, I will evaluate possible alternative strategies – substantive growth, limited growth and retrenchment strategies. Then the final appropriate future strategies for Kinh Do Corporation will be select and a strategic plan for the company is also prepared in this assignment.

1. Possible alternative strategies

2.1 SWOT Matrix

Corporate appraisal (SWOT) is a critical assessment of the strengths and weaknesses, opportunities and threats in relation to the internal and environmental factors affecting the entity in order to establish its condition prior to the preparation of a long-term plan. | Strengths(1) Prestigious and well-known brand(2) Great market share(3) Good distribution system(4) Diversified and high-quality products(5) Advanced manufacturing technology(6) Professional and experienced management system(7) Large financial resources| Weaknesses(1)The brand Kinh Do is well-known but they fail to build own mark for each product line.(2) Except some product line such as Moon Cake, Fresh Cake…, most of products are only meet a demand of customers with low or middle income| Opportunities(1) Domestic economic grows stability (2) The confectionery industry high-potential  (3) The demand for high-nutrition food grows considerably(4) Export market is promising, many tariff barriers are abrogated| S-O Strategies pursue opportunities that are a good fit to the company’s strengths.O1O4+S4S5 : Market development strategy O1O2+S1S6S7 : Horizontal integration | W-O Strategies overcome weaknesses to pursue opportunities.O1O2+W1W2 : Product development| Threats(1) Many new competitors from abroad will entry Vietnamese market(2) Technological has developed rapidly in recent years and the life cycle of technology will be shorter.| S-T strategies identity way that firm can use its strength to reduce its vulnerability to external threatsO4O5O7+T1 : Market development strategy | W-T strategies establish a defensive plan to prevent the firm’s weaknesses from making it highly susceptible to external threats.|

Due to analyze SWOT matrix, Kinh Do Corporation can apply Market development, Product development or Diversification (Horzontal Intergration).

2.2 ANSOFF Matrix

Due to analyze ANSOFF matrix, the first strategy Kinh Do can implement is Market penetration strategy because Kinh Do is well on its position Vietnam’s leading confectionary corporation and has the biggest amount of market share in this Industry (about 28%). To apply this strategy, Kinh Do should combine of competitive pricing strategies, advertising, sales promotion to not only maintain or increase the...
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