Development Strategy for a Textile Firm

Topics: Strategic management, Strategic planning, Qualitative research Pages: 40 (13788 words) Published: June 19, 2013
Journal of Management and Sustainability; Vol. 2, No. 2; 2012 ISSN 1925-4725 E-ISSN 1925-4733 Published by Canadian Center of Science and Education

Development Strategy for a Textile Firm
Luu Trong Tuan1
1

University of Social Sciences and Humanities, Ho Chi Minh City, Vietnam

Correspondence: Luu Trong Tuan, University of Social Sciences and Humanities, Ho Chi Minh City, Vietnam. E-mail: luutrongtuan@vnn.vn Received: September 26, 2011 doi:10.5539/jms.v2n2p136 Abstract The researched firm is a state-owned company of more than forty years of operation and is one of pioneer companies providing textile and garment to Vietnam market. Its vision is to be the sustainable multidisciplinary firm which operates in three main areas: textile and gament industry, travel – real estate and financial investment in global market. After more than forty years of operation in the market, company has obtained some recognized results but these are still low and do not meet company’s strategic goals and company’s shareholders expectation. A need of a development of strategy which will help company to take market positioning and to develop. This research will help to have an overview of company, its business environment, its strengths, weaknesses, opportunities and threats. Business environment and SWOT analysis are used for alternatives of strategies. Each activity of the company is reviewed to find the real problem that company is facing and helps to find a solution. A strategy is finally given for company’s competitiveness anddevelopment. Keywords: development strategy, SWOT analysis, textile industry, Vietnam 1. Introduction Vietnam is expected to grow as a manufacturing base to supply to foreign buyers in developed countries. More and more orders from corporate buyers are supposed to take place. As a matter of fact, Vietnam’s textile and garment industry plays an important role in the Vietnamese economy. The industry consists of around 2,000 enterprises; of which 25 are state-owned and 1,500 are private enterprises including 450 foreign-owned enterprises, with over 2 million employees involved. 55 % of them are located in and around Ho Chi Minh City, 30 % in and around Hanoi, and 15 % in and around Da Nang. Vietnam is ranked as the 10th largest textile and apparel export country in the world. The textile firm under research is one of the company plays leading role in the development process in Ho Chi Minh City. Established in 1965 with experience of over forty years of operation, it is developing rapidly in its business with an average growth rate 15-20% per year in terms of revenue. During the past years, it paid attention to supply textile and garment products with high quality to the customers. As a result, after Vietnam joining WTO, it has fierced competition with other rivals to gain contracts. Along with supplying textile and garment products for the domestic market, it will take part in the external market. Therefore, in next years, it must face directly the competition from domestic and foreign rivals. The question “How to keep its current customers and expand its business activities to the nationwide market?” will be answered through the findings of this research study, which helps: 1) to have a good understanding of the background of the company with its structure, performance and strategies. 2) to understand the environment of the company with external and internal analysis. 3) to understand strength and weakness that company is having, threats company is facing and the opportunities that company will benefit. 4) to understand the strategic decisions made by the company to develop in the competitive market. 2. Literature Review 2.1 Strategy Throughout the history the term strategy reflected strong military roots. Army leaders used strategy in dealing with their opponents. Numerous military theorists (Sun Tzu, Alexander, Clausewitz, Napoleon, Stonewall 136

Accepted: December 10, 2011

Online Published: May 24, 2012...

References: Adermark, C., & Britz, J. (2002). Värdering av kunskapshantering. Linköping University, Linköping. Akingbade, W. A. (2007). Impact of Strategic Management on Corporate Performance in Selected Indigenous Small & Medium Scale Enterprises in Lagos Metropolis. Unpublished M.Sc.Thesis, Department of Business Administration & Management Technology; Lagos State University, Ojo; Lagos. Aluko, M., Odugbesan, O., Gbadamosi, G., & Osuagwu, L. (2004). Business Policy and Strategy (3rd ed.). Nigeria: Longman. Bell, J. (2000). Introduktion till forskningsmetodik. Studentlitteratur, Lund. Bryman, A. (2002). Samhällsvetenskapliga metoder. Liber Ekonomi, Malmö. Cheah, Y. J. (2002). Fundamental analysis and conceptual model for corporate strategy in global engineering and construction markets. Ph.D. Thesis, Department of Civil and Environment Engineering, Massachusetts Institute of Technology. Denscombe, M. (2000). Forskningshandboken för småskaliga forskningsprojekt inom samhällsvetenskaperna. Lund: Studentlitteratur. Doole, I., & Lowe, R. (2004). International Marketing Strategy: Analysis, Development and Implementation (4th ed.). Thomas Learning. Drucker, P. F. (1974). Management Tasks, Responsibilities and Practices. New York: Harper and row. Gharui, P., & Grönhaug, K. (2005). Research Methods in Business Studies: a Practical Guide (3rd ed.). Prentice Hall, England. Goold, M., & Campbell, A. (1987). Many best ways to make strategy. In Montgomery, C. A., & Porter, M. E. (Eds.), Strategy: Seeking and securing competitive advantage (1991, pp. 333-345). Boston: Harvard Business School Press. Henderson, B. D. (1989). The origin of strategy. In Montgomery, C. A., & Porter, M. E. (Eds.), Strategy: Seeking and securing competitive advantage (1991, pp. 3-9). Boston: Harvard Business School Press. Jacobsen, D. I. (2002). Vad, hur och värför? Høyskoleforlaget AS – Norwegian Academic Press, Kristiansand. Johnson, J., & Reynolds, H. T. (2004). Political Science Research Methods (5th ed.). CQ Press, Washington D.C. Kazmi, A. (2008). Strategic Management and Business Policy (3rd ed). New Delhi: McGraw-Hill Companies. Kinner, T. C., & Taylor, J. R., (1996). Marketing Research – An Applied Approach (Int. ed.). New York: Mc Graw-Hill. Krueger, R., & Casey, M. (2000). Focus Groups – a practical guide for applied research (3rd ed.). Sage Publications, London, England. Neuman, W. (2003). Social Research Methods-Qualitative and Quantitative Approaches (5th ed.). Pearson Education Inc, United States. Nmadu, T. M. (2007). Strategic Management in some Nigerian Businesses: “A business reality”. Journal of Management Research and Development, 1, 17-23. Ohmae, K. (1988). Getting back to strategy. In Montgomery, C. A., & Porter, M. E. (Eds.), Strategy: Seeking and securing competitive advantage (1991, pp. 61-74). Boston: Harvard Business School Press.
156
www.ccsenet.org/jms
Journal of Management and Sustainability
Vol. 2, No. 2; 2012
Pitts, R. A., & Lei, D. (2000). Strategic management: Building and sustaining competitive advantage. Ohio: South-Western College Publishing. Porter, M. E. (1979). How competitive forces shape strategy. In Montgomery, C. A., & Porter, M. E. (Eds.), Strategy: Seeking and securing competitive advantage (1991, pp.11-25). Boston: Harvard Business School Press. Porter, M. E. (1980). Competitive Strategy. New York: Free Press. Porter, M. E. (1985a). Competitive advantage. New York: Free Press. Price, A. D. F. (2003). The strategy process within large construction organizations. Engineering, Construction and Architectural Management, 10(4), 283-296. http://dx.doi.org/10.1108/09699980310489997 Richardson, G. P. (1991). Feedback Thought in Social Science and Systems Theory. Philadelphia: University of Pennsylvania Press. Stacey, R. (2000). Strategic Management and Organizational Dynamics. London: FT. Stake, R. E. (2005). The Art of Case Study Research. Thousand Oaks: SAGE Publications. Tellis, W. (1997). Introduction to case study. The Qualitative Report, 3(2). Thompson, A. A., & Strickland, A. J. (2003). Strategic Management: Concepts and Cases (12th ed.). New York: McGraw-Hill. Wilson, A. (2003). Marketing research: An integrated approach. Harlow: Pearson Education Limited. Yin, R. (1994). Case Study Research (2nd ed.). Thousand Oaks, CA: SAGE Publications. Yin, R. K. (2003). Case study research; design and methods. California: Sage Publications.
157
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Customer Development Strategy Essay
  • Strategy Development Report on a Coal Mining Firm Essay
  • Strategy Essay
  • Creative Strategy Planning and Development Essay
  • textiles Essay
  • Essay about Mentoring and Coaching as a development strategy
  • Essay on Knowledge Management and the Competitive Strategy of the Firm
  • Development of Medical Textile Market Essay

Become a StudyMode Member

Sign Up - It's Free