Structure and Maket Entry of P&G in Vietnam

Topics: Investment, Capital accumulation, Capital Pages: 2 (418 words) Published: April 4, 2013
c. Organizational structure of TNC in Vietnam

d. Modes of market entry
As soon as the U.S. normalized relations with Vietnam, P & G has entered the Vietnamese market. P & G is one of the first U.S. companies to invest in Vietnam after the opening policy of the country. On November 23th, 1994, P & G established Procter & Gamble Vietnam Co. Ltd being a joint venture operating under license No. 1052/GP by the State Committee for Cooperation and Investment (the previous name of the Ministry of Planningand investment), with total investment capital and legal capital of $ 37 million and 14.3 million. P & G officially operating in Vietnam since 1995 and has built a factory in Binh Duong province. After less than 10 years, P & G purchased shares in the joint venture and became a company with 100% foreign capital. Thus, P & G Uused the same way as other transnational corporations such as Coca Cola, Unilever, ... in the process of entering the Vietnamese market. The first is the establishment of a joint venture with a local company to initially easy to put products into Vietnam market.Then, it purchased the shares of other companies in the joint venture (as Unilever with Vinachem in 2009) to become a company with 100% foreign capital. In Vietnam, the P & G know how to take advantage of its core strengths as understanding the consumer, branding, innovating. But in the first three years, due to low market demand than expected of P&G VN and investment activity expenses exceeding away, P&G are loss of $ 43 million. Despite the loss, P & G has still identified Vietnam as a potential market, use the positive measures to improve as investigating customer needs, customers, changing items to suit (from laundry water Vizir to washing powdered Tide), changing advertising strategies (invited Johnny Tri Nguyen as the visual representation for Head & Shoulders, Vietnam helps consumers easily accepted). Besides improving the...
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