As expansion is always the essential target of Star Industry Cooperation, especially in Viet Nam because there is a huge and potential market for eco-friendly windows and doors constructed by artificial wood. The report is written for providing strategies how to expansive our market in Viet Nam and views of operation department. It will also consider issues and solutions that related to market expansion. Expansion in Viet Nam is a changeling for every Star Industry's departments, particularly Operation team. The first part of the report will introduce some market researches’ views contained supply and demand issues available. Costs and benefits of researches also are provided. Potential issues and these solutions will be considered and evaluated in the second part in the report. The proposed procedure will explain for the whole strategy. Finally, Operation department suggests recommendation to evaluate and whether Star Industry should apply strategy of expansion market in Viet Nam.
In several years, STAR’s products have been the first choice of the customers for high quality architectural buildings. The company has gained significant successes in all perspectives and operations. Owing to the development of Star Industries, Australian market is becoming more limited so that market expansion to South East Asia is the best and most appropriate direction to the company. In the expansion strategy, Operation department is responsible for several activities, which will be operated in new regions, including purchasing materials, scheduling supply of materials, managing inventories and distributing finished good. Operation Department main duty in this expansion is to cooperate well with the assigned partner to ensure the operation chains work smoothly for the whole processes. These essentially entail the formal institutionalization of the factor economic integration and interdependence in East Asia in a way that complements global frameworks of the WTO and the IMF. Moreover, in ASIAN countries, the market for our company is quite wide and open as in there, high quality human resource but low fee and globalization process is pushing strongly. Large domestic market, high-speed market develop, especially IT market increases 25%/year. These last issues are investment environment is stable, safe and security and have incentive investment policy for investors. In Viet Nam, since 2001, the country reaffirmed its commitment to financial liberalization and international integration. Up to now, Vietnam has implemented structural reforms for modernizing the economy and generating competitive export-driven industries. The country’s membership in AFTA and entry into the US-Vietnam Bilateral Trade Agreement has led to rapid changes in the trade and economic regimes. The WTO membership in 2007 has secured Vietnam in the global market scenario and also reinforced its home economic reform process. As of 2009, the sharp economic slump resulted in tremendous lowering of exports, higher unemployment, and corporate bankruptcies and decreased foreign investment.
There are some statistics about the growth of Vietnamese economic.
GDP - per capita (PPP)| $2,800 (Year 2008)|
Unemployment rate| 4.7% (Year 2008)|
Inflation rate (consumer prices)| 24.4% (Year 2008)|
The objectives of Star industry are put in several points. First of all, it is crucial to fully understand and exceed our customers’ needs and deliver superior customers service and to attract and keep innovative, customers-focused employees who can support our expanding business, and reward performance fairly and equitably. We want to use best-in-class door and window manufacturing techniques to maximize the quality of all of our products. Finally, Operation department aims to achieve best-in-class warehousing, ordering, and distribution practices across our whole operation in the new region.