Trung Nguyen Coffee

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2.External Analysis:
Company’s macro - environment consist all relevant factors and influences outside the company’s boundaries. Economic, There are many economic factors affecting business activities of TrungNguyen, but basically there are several major factors by following: Economic growth–Viet Nam’s economic growth rate stood at 5.32% (Nhandan 2010). Per capita income – the average income per person claims to level of 1,074 USD (Vietnaminvestnetwork 2009). Rate exchange – the VND/USD rate has stood around 19,000VND in 2009 (Presscenter 2010). Technology, after the popularity of Cappuccino coffee in over the world, TrungNguyen took European technology to produce new products like G7 Cappuccino - Hazelnut, Irish Cream and Mocha (TrungNguyen 2009). Otherwise, they also support their business by signing a memorandum of technology copyrights to Microsoft Corporation. Societal values and lifestyles, In Vietnam society, the majority of Vietnam cult value of nationalism, it means ‘Vietnamese people use Vietnamese product ' (Chip 2009), this factor has become a huge competitive advantage in the campaigns to build a brand in domestic market as well as strategic leverage in the expanding markets abroad. Demographics, characteristics of the population have crucially effect to coffee industry. Population characteristics include structure of age, ethnicity and social class. According to CIA Fact book, 68.3% of Vietnamese population are fail in 15-63 age group which number of male and female are slightly the same (2009). Consequently, TrungNguyen’s market strategy may bases on 68.3% of population; and serve different product feature in different age. Legislation and regulations, politics of Viet Nam relatively settle, there is no huge difference in legislation between generations of leaders because of the policies of the socialist-oriented combining the market economy. Moreover, Vietnamese government is stimulating and supporting the coffee...
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