Da Nang University Of Economics

----------

REPORT
THE ERA OF MANAGEMENT

46K01.3
1. Lê Nguyên Phương Thảo
2. Trần Thị Quỳnh Thy
3. Trương Thị Mỹ Diệp
4. Phạm Tuyết Nhung
5. Trần Lê Vy
 BITI’S
I. Company introduction:
 Name: Biti's (Full name: BINH TIEN IMEX CORP., PTE.,LTD).
 Year of establishment: 1982.
 Founder: Vuu Khai Thanh.
 Head office: No. 22 Ly Chieu Hoang, Ward 10, District 6, Ho Chi Minh City.
 Website address: Biti's Vietnam's online sales page (http://www.bitis.com.vn/).
 Industry: Consumer goods.
 Scope of activities: a brand specializing in footwear and footwear production in
Vietnam and now has expanded to a few countries in the region.
1. The process of formation and development:
 Formation: Biti’s, former two production units called Binh Tien and Van
Thanh, were established in 1982 with 20 employees, and specialised in producing
rubber sandals.  In 1986, the two units merged into Binh Tien Rubber Cooperative
which started producing high-quality footwear for the domestic market and exporting
to Eastern and Western Europe. It then changed to BINH TIEN IMEX CORP., PTE.,
LTD  Company.
 Background established: In 1980, Europe collapsed, losing its main market.
The domestic market faces fierce competition from ThaiLand and Chinese foam
footwear made of new, beautiful, lighter and more convenient materials than
Vietnamese rubber sandals.
 Outstanding events during the development:
 1986: The two units merged into Binh Tien Rubber Cooperative which started
producing high-quality footwear for the domestic market and exporting to Eastern and
Western Europe.
 1989: Binh Tien Rubber Cooperative became the first non-state-owned unit of
Vietnam to be granted the right to directly import and export by the State.
 1990: Binh Tien Rubber Cooperative invested completely new Taiwan
technology and produced new products (EVA foam shoes) to increase competitiveness
with imported goods.
 1991: Established Son Quan Joint Venture Company - a joint venture unit
between Binh Tien Rubber Cooperative and SunKuan Doai Loan Company -
specializing in producing footwears and slippers for export. This is the first joint
venture between a Vietnamese private economic unit and a foreign company (for 18
years).
 1992: In the new hill period of the country, the General Director officially
changed the business name to BINH TIEN IMEX CORP., PTE., LTD  Company, or
Biti’s.
 2000: Established a representative office in Yunnan, China.
 2001: Biti's was certified by BVQI and QUACERT to reach the ISO 9001:
2000 quality management system.
 Achievements and reviews:
 Twice achieved the national brand of Vietnam Value (2008 and 2010)
 Awarded "Top Brand in Vietnam High Quality Goods" in 2007.
 Three consecutive years (2005 to 2007) was the enterprise that won the Golden
Cup of Top Ten prestigious and qualified Vietnamese brands organized by the
Vietnam Union of Science and Technology Associations.
 Biti's strategies have been implemented:
 When he first entered the Chinese market, the first thing Mr. Thanh did was to
immediately register and protect the trademark.
 The one-price policy, wide distributing and advertising the brand name so that
consumers can rest assured that they do not have to worry about paying the price,
buying the wrong thing or buying it wrong.
 With its large market, Biti's organized the “centipede distribution system” from
general agents to sales agents to cover and be present everywhere.
 Biti's has applied AIDA's communication formula to its strategy in a very
methodical and attractive way, which has partly brought success to the brand as well
as created a mark in the hearts of customers:
o Awareness (Attention): The goal is that everyone know and talk about
Biti's Hunter. To accomplish this goal Biti's chose Viral Video, Son Tung MTP's "Lac
Troi" MV and Soobin Hoang Son's "Going to Return" MV.
o Interest (Interesting for brands, products): using KOL channel to
communicate the next strategy, stimulating customer love and love for the product.
 o Desire (Stimulus, desires, needs of customers): Underground PR, hitting
patriotism; PR directly targets the product, posted on online newspapers.
o Action (Stimulating customers to take action on products): Biti's
launching promotions, combining e-commerce websites with discount codes within a
certain time frame.
 The "Đi để trở về" campaign with the Biti's Hunter product line revived Biti's
timeless vitality from the strong attack from big competitors such as Nike, Adidas,
Puma, ... This is considered. This is a clever and spectacular step that brings Biti's back
to the name of the campaign "Đi để trở về", "Thing comes when you least expect" in
the hearts of fans as well as consumers.

2. Mission abd Vission:

 Mission:
 Không ngừng cải tiến, nâng cao chất lượng cung cấp sản phẩm đúng ý nghĩa
của bản sắc thương hiệu Biti's "Uy tín - chất lượng". Công ty TNHH SX HTD Bình
Tiên cam kết sẽ không ngừng cải tiến, nâng cao chất lượng cung cấp sản phẩm, đáp
ứng ngày một tốt hơn yêu cầu ngày càng cao và đa dạng của quý khách hàng, đúng
như ý nghĩa của bản sắc thương hiệu Biti's "Uy tín - chất lượng", tạo dựng niềm tin lâu
dài đối với tất cả khách hàng.
Bà Lai Khiêm - Phó tổng giám đốc Công ty TNHH Bình Tiên
 (Constantly improving and updating the quality of product supply in accordance
with the character of Biti’s brand: “Prestigious - Qualitative”.  Binh Tien Limited
Liability Company is committed to constantly improving and enhancing the quality of
product supply, better meeting the increasing and diverse requirements of customers in
accordance with the character of Biti’s brand: “Prestigious - Qualitative”, building
long-term reliability with all customers.)
  “Nâng niu bàn chân Việt”. The slogan shows that Biti’s geared toward not only
beauty but also reliability. Slogan also highlights the idea “ Vietnamese use
Vietnamese goods”.
 Vision:
 Trở thành công ty sản xuất hàng tiêu dùng lớn mạnh tại khu vực Châu Á. Quyết
định xây dựng tầm nhìn và khẳng định diện mạo nhằm phát triển Công ty TNHH SX
HTD Bình Tiên thành một công ty lớn mạnh và ngày càng phát triển không chỉ trong
nước mà còn rộng khắp trên toàn thế giới, giữ vững vị trí hàng đầu tại Việt Nam và hội
nhập tích cực với quốc tế, trở thành công ty sản xuất hàng tiêu dùng lớn mạnh tại khu
vực Châu Á.
Ông Tổng Giám Đốc Vưu Khải Thành
 (Becoming a strong consumer goods manufacturing company in Asia. Deciding
to build a vision and affirm the appearance to develop Binh Tien Limited Liability
Company into a large and growing company not only domestically but also
worldwide, maintaining the leading position in Vietnam and actively integrating with
the world , becoming a strong consumer goods manufacturing company in Asia.)

3. Structure design:
 Source: Phòng Quản lý nhân sự & Hành chính pháp lý
 Approach to structure design: Vertical Functional
II. The environment analysis:
1. International Environment:
 Coronavirus Disease (COVID - 19):
 Vietnam's GDP growth rate reached at 2.91%, the lowest since 2010.
VIETNAM'S GDP GROWTH PERIOD 2011 - 2020

Source: https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-ke/2021/01/kinh-te-viet-nam-
2020-mot-nam-tang-truong-day-ban-linh/?
fbclid=IwAR2fcDjVq45nGEESfE0sL2FVoCIh-
DyOZ8TUxxtWN8fBV8XcjDsG7ZMWdxI
 Although the leather and footwear industry was strongly affected by the Covid-
19 epidemic in the second quarter of 2020, the IIP of the industry improved when the
decrease in IIP between months was narrowed. In particular, the increase/decrease of
IIP in months from Q2/2020 compared to the same period last year is as follows:
decreased by 16% in June; decreased by 12% in May; in June decreased by 9.6%; in
July decreased by 6.2%; August decreased by 3%; September decreased by 3.4%;
October decreased by 2.6% and November went up by 0.7%. In the future, the disease
situation is well controlled in the country and EVFTA will help the footwear industry
to grow again. (Source: https://www.gso.gov.vn/du-lieu-va-so-lieu-thong-
ke/2020/12/nganh-cong-nghiep-det-may-va-da-giay-trong-boi-canh-dich-covid-19/?
fbclid=IwAR2xpfVl6Q2nBMk_1DgJW226zLKWcZRrXTWyTK2-
We6yWf3UIx5hLSu_3Ig)
 The fashion industry was excluded from the list of needs for priority over
essentials or anti-epidemic products ... Biti's faced a crisis to continue its business:
after the 2020 Tet holiday, which lasted until At the end of April, Biti's company faced
many difficulties and challenges: stopping the annual opening ceremony. In April,
Biti's domestic sales fell by 60%, 150 stores closed, European customers cut orders
continuously. (Source: Ms. Vuu Le Quyen - CEO of Biti's)
 Biti's launched its marketing campaign #ProudlyMadeInVietnam, turning the
#ProudlyMadeInVietnam shoes into colorful propaganda pictures, capturing positive
human love stories with the whole country, helping in these difficult times. Biti's
connected and spread, not only contributing to the fight against the disease, but also
strengthening the love between consumers and brand. (Source:
http://brandme.com.vn/bitis-vuot-kho-mua-covid-voi-chien-dich-proudly-made-in-
vietnam/?
fbclid=IwAR3MuNGE369Up3rJYLJJRcz2ZKX46SQr9IkSLPDGObkRnSpS23bUcLeG
N98)

 The US-China trade war:

 That the US imposed high tariffs on goods from China (25%) makes the
chances of entering the US in some fields that we have direct competition with China
such as textiles, footwear ... will come more.
  Besides, the US-China trade war also leads to many consequences for the
Vietnamese footwear market in general and Biti's in particular because 70% of raw
materials in the industry are still imported, of which China accounts for a large
proportion.
 Vietnam joined the WTO: On the one hand, increasing footwear exports; On
the other hand, putting pressure on Biti's as foreign footwear has entered the domestic
market with diverse quality and designs.
2. General Environment:
 Legal/ Political:
 Legal:
 The 05/2007/QH12 law regulates the quality of products and goods, products
need to meet standards to ensure safety for consumers, the source of raw materials
should be transparent, avoid counterfeit and poor quality products. For these laws,
Biti's focuses on traceability of materials and ensuring the quality of each product.
 Law on enterprise Tax(14/2008/QH12) defines the tax obligations that
businesses need to contribute to the government budget and regulations that ensure
penalties for violations. Biti's need to develop, ensure the tax payment deadline to
contribute to national economic growth.
 Labor Law (10/2012/QH13) defines regulations on the use of labor to ensure
the legitimate interests and interests of employees directly under the enterprise. This
requires Biti's need to take care of its staff and appropriate policies to encourage labor
and avoid violating State Laws.
=> All the laws enacted by the state affect the development of Biti’s.
 Political:
 Vietnamese footwear exporting enterprises enjoy preferential import tax on raw
materials (for exports) and the export tax on finished products equal to 0% according
to the export incentive policy of the State => great opportunities for Biti's export
footwear to international markets.
 Pursuant to Article 12, Decree 87/2010 / ND-CP of the Government dated
August 13, 2010 detailing the implementation of a number of articles of the Law on
Import Tax and Export Tax: Tax exemption or entitled Priorities import duty for
equipment, machinery, computer service of the production, which can not be produced
to facilitate Biti's imports of machinery modern, innovative materials and create out to
high quality products.
 Footwear is one of the key sectors of the National Key Trade Promotion
Program => Biti's is also one of the businesses that receive preferential loans and trade
assistance.
 Economic:
 GDP in 2020 will increase by 2.91% (the first quarter: increases by 3,68%, the
second quarter increases by 0,39%, the third quarter increases by 2,69%, the fourth
quarter increases by 4,48%).
=> Despite the influence of Covid 19, Vietnam's GDP 2020 still has a positive
growth. That proves that our country's economy is undergoing significant
improvements. That is the premise and a great opportunity for Biti's to continue to
develop in the Vietnamese market.
 The increase of income sources rises customers' shopping needs, and the
consumer goods market is attractive to consumers.
 The banks' lending rates seem to be kept at a stable level, creating favorable
conditions for consumers to borrow to spend for their own consumption.

 Core inflation is adjusted to balance, value for money is less volatile. Therefore,
the spending needs of customers basically have not decreased significantly.
 Vietnam's annual core inflation, which excludes volatile items, increased to 0.79
percent in February 2021 from 0.49 percent in January.
Source: General Statistics Office of Vietnam
 Fashion items like Biti's are very sensitive to these changes. The consumption
of customers depends heavily on the increase or decrease of interest rates and income
sources, but these factors are easy to change according to the market. Therefore,
customer spending is affected over time.

Vietnam
Money Last Previous Highest Lowest Unit

Interest Rate 4.00 4.00 15.00 4.00 percent [+]

Interbank 1.44 1.44 19.77 1.18 percent [+]

Rate

Money 1198095.00 1085018.14 1198095.00 55.00 VND [+]

Supply M0 Billion

Money 2456665.00 2174032.77 4613262.00 109.00 VND [+]

Supply M1 Billion

Money 10573725.00 9211848.05 10573725.00 112.00 VND [+]

Supply M2 Billion
Vietnam
Money Last Previous Highest Lowest Unit

Foreign 88351.20 87790.30 88351.20 878.30 USD [+]

Exchange Million
Reserves

Deposit 4.78 4.98 22.04 3.65 percent [+]

Interest Rate

 Footwear export turnover in September 2020 reached over US $ 1.25 billion,

down 9.2% from August 2020 and down 5.4% compared to September 2019. Overall,
the first 9 months of 2020 reached nearly 12.13 billion USD, down 8.4% compared to
the first 9 months of 2019.
The three billion-dollar markets for Vietnam's footwear consumption are the US,
the EU and China; of which exports to the US reached nearly US $ 4.51 billion,
accounting for 37.2% of the country's total footwear export turnover, down 7.4% over
the same period in 2019; export to EU market reached nearly 3.04 billion USD,
accounting for 25%, down 15.8%; Export to China reached nearly 1.54 billion USD,
accounting for 12.7%, up 20.6%.
In general, footwear exports to most markets in the first 9 months of 2020
decreased in turnover over the same period last year; in which, exports fell sharply in
the following markets: Denmark decreased 67.9%, reaching 6.92 million USD;
Portugal decreased 36.7%, reaching 2.43 million USD; Hungary decreased 34.5%,
reaching 0.98 million USD. However, exports to some markets increased strongly such
as: Luxembourg increased 194.4%, reaching 20.85 million USD; Turkey increased by
26.6% to 27.87 million USD.
 Sociocultural:
  Social:
 Vietnam had a population of 97.75 million in January 2021. (According to data
from danso.org)
 Young age structure, mainly in working age, 69.3% of the population aged 15-
64. (According to tongdieutradanso.vn)

=> That the demand for footwear and the consumer market are large has the
potential to create conditions for Biti's development. Young people make up the
majority and are part of fast trend grasping. => It requires the company to develop a
variety of models and tastes.
 The population growth rate tends to go up, the birth rate decreases, so the
demand for children's footwear decreases, in contrast, the demand for shoes of adults
and young people increases.
 o The birth rate for Vietnam in 2020 was 16.223 births per 1000 people, a
2.18% decline from 2019.
o The birth rate for Vietnam in 2019 was 16.584 births per 1000 people, a
2.13% decline from 2018.
o The birth rate for Vietnam in 2018 was 16.945 births per 1000 people, a
0.4% decline from 2017.

Source: https://danso.org/viet-nam/
 The lifestyle of most of the population is becoming more and more dynamic
and youthful. => Biti's needs to change styles and increase new lifestyle items like
sneakers,...
 Cultural:
 In Vietnamese culture, all kinds of shoes, especially sandals, are preferred.
Vietnamese 8X, 9X generation and parents are mainly concerned with the durability
and price of shoes that they are reasonable. Sandal shoes have long been a mandatory
part of school uniform regulations => Biti's is one of the leading brands in sandal
production in Vietnam.
  That the integration trend of Western culture and the catching up of youth
trends, sneakers, slip-on shoes are increasingly popular is a way to express the ego and
personality of the users => Biti's expands new product lines.
 Technological:
 The era of 4.0 technology has opened up many opportunities for businesses to
invest in the development of modern equipments to serve production as well as to meet
the increasing demand for product features and designs of consumers.Therefore, Biti’s
is also making efforts to improve products, sales, and communication activities
through modern technology equipments.
 Technology is more developed to help customers easily access businesses, get
more information about products, Biti's also sells more products through e-commerce
sites. (Biti's - Cửa Hàng Giày Sneaker, Giày Sandal Chính Hãng | Mua Online tại
Lazada.vn)

 Biti's applies many advanced technologies in manufacturing, especially

children's items: Phylon soles technology helps faster speed movement, quieter EVA
foot pads, cooler Airmesh materials.
  Biti's state-of-the-art in-line production system meets all of Disney's stringent
requirements, which paved the way for Biti's to have been a strategic partner with
Disney since late 2016.

 In 2019, Biti's Smart's launch of products Biti's Smart was a combination of

sneakers, smart devices and smart device apps to track and make recommendations
about children's health and activity.
 Natural:
 Society is increasingly developing, which is followed by the change of the
natural environment. This makes Bitis have to adapt and exploit new and more
innovative materials and improve product quality to better serve customers.
 For example, the increasingly erratic weather requires customers to look for
shoes that can be used in both the wet and dry seasons, are water-resistant, heat-
resistant and non-irritating to the skin. 
=> Biti’s uses new materials like Phylon and Midsole TPU to create water-
resistant shoes.
  The natural environment provides raw materials for Biti's (rubber,leather,..) =>
When the natural environment changes, the company needs to be flexible in sourcing
raw materials
 Biti's will have been continuing to look for solutions to protect the environment
such as non-destructive packaging, regeneration centers and demolition systems...
=> Objectively , Bitis has not really had  campaigns towards environmental
protection. However, the company is trying to find the most effective ways to improve
social responsibility as well as achieve sustainable development.
=> The investment in environmental pollution waste treatment systems can cause
a large loss of business revenue. However, Biti's environmental concern will impress
and attract more customers.
3. Task Environment:
 Customers:
 Groups of customers:
 People:
 Customers from 0 to 5 years old often prefer vibrant colors with funny motifs.
 Customers are young people from 15 to 25 years old, mainly students. For
them, footwear is not only an outfit to serve the needs of travel, but it also contributes
to express personality. They value comfort, convenience and fashion.
 Customers in the over 30-year-old class are working people with stable
incomes. They like to consume reputable products in the market.
 Organization: Footwear distribution bussiness
 Competitors:
 Direct competitors: Nike, Adidas, Vans, Converse, Bita’s, BQ,...

 Indirect competitors: Juno, Bershka, Zara are potentially indirect competitors of

BITI’S although these are not only the major brands in the clothing, fashion handbags
but also are investing in the production of shoes for young people.
  Advantages of competitor’s companies:

Direct  Adidas + Good durability, sturdy, adaptable in all environmental

competitors conditions
+ Easy to clean, good force
+ Trendy, stylish, sporty style, comfortable for the user
+ Adidas has travelled a long way to establish itself as a
youthful brand
+ Celebrity endorsements & sponsoring major sport
organizations
+ Adidas ha an effect distribution system for their product
available through different

Nike + Durable, lightweight, good quality, high strength

+ Youthful, dynamic, light color
+ Utilize modern tools and rate 1st place of technology
+ Celebrity endorsements & sponsoring major sport
organizations
+ Regular promotions are available at the end of the year
Indirect Bershka Dedicated canvas sneaker: although it is not one of the famous
competitors names in sports shoes, it has reasonable prices and designs that
catch the trend; Bershka has conquered the hearts of people
who love shoes. Cost only 29.99 Euro (about 710 thousand
VND)

Zara Ultra light sneaker: Although not prominent in color, Zara

sneakers  still have plus points thanks to weight. With the base
is made from synthetic rubber and body garments from fabrics
waterproof, this shoes not only bring a slight sense but also
comfort the users. Shoes are sold for 29.95 euros ( about 710
 thousand VND)

 Suppliers:
 Bitis develops under a full value chain management model from designing,
manufacturing, and distributing products to consumers. All member companies are a
link in the product value chain of the company, contributing to increase product value
and reduce production costs.
 Currently, according to the need to diversify types of products on the basis of
ensuring quality standards with the company's customers, Biti's are implementing
business cooperation plans with domestic and foreign suppliers specializing in
producing a wide range of raw materials such as: PU Leather Shoe Straps, nubuck,
PVC,... Biti's have huge demand for production materials, but these raw materials are
still very limited, businesses can produce but cannot ensuring demand that Biti's set
out. As a result, 60% of Biti's inputs are imported from overseas, only 40% come from
local manufacturers. With the motto that suppliers are friends, partners (cooperate and
share profits), Biti's offers suppliers the best policies and business opportunities.

Sandal Si PU Nam Biti's DPM028100DEN

Biti's Hunter Go For Love DSMH03000TRG (The #Si nubuck shoe body keeps the
form more sturdy and forms a firmer form)
  Biti's footwear production technology is imported from Korean and Taiwan
modern technology, including EVA material, leatherette, ... The strap: is made from
materials such as leather, imitation leather, foam mesh... stitched details ensure
durability and smoothness - the sole is made from BU, rubber, EVA,... made by cold
gluing technology, the shoe heel is lined with shaped plastic to ensure that the collar
always stands, does not fall and does not crease during use.
 Biti’s main suppliers:
o About leather: Biti's chooses Wei Tai Leather Viet Nam, which is a
100% Taiwan invested company, specializing in manufacturing and processing
finished leather products, head office in Nhon Trach, Dong Nai.
o About buttons, key rings, metal markings: Biti's chooses TIM DO
TRADING AND PRODUCTION LIMITED COMPANY. Since 1980, the brand name
TIM DO metal buttons has been trusted by domestic and foreign companies and
customers for its product quality and always meet the diverse needs of the market.
With the goal of growing, TIM DO has constantly invested in modern machinery and
equipment and applied the latest technologies on the production, with a team of
experts and skilled workers, are thoroughly trained to better respond to the needs of
companies and customers.
o Plastic lock: Trieu Phong Limited Liability Company. The head office
and factory are located in 10 precinct, Tan Binh district.
o About synthetic plastic beads: The company mainly imports from the
Netherlands and France. In addition, the company also selects a number of domestic
suppliers, typically Vietnam Polystyrene Co., Ltd., which is the first unit in Vietnam to
produce EPS, HIPS, GPPS, BPO resins in Vietnam.
o With the supplier of heels and shoe soles: Tae Sung Company is a
leading company in manufacturing plastic products.
 Labor Market:
Biti's aim is to select a key employee system to create professionalism and
preeminence from product manufacturing to customer care.
For each position, the company requires specific requirements to create
specialization:
 Goods Classification Staffs
  Forecast And Goods Replenishment Staffs
 Ordering Staffs
 Product Line Management Staffs
 Data Analysts
 Graphic Designers 
 E-commerce Executives
 Trade Marketing Executives
 Admin Staffs 
 Sellers
 IT Helpdesks
In general, Biti's always requires experienced, highly qualified, energetic and
enthusiastic staff. In addition, the remuneration policies for employees are also very
attractive:
 Income under the agreement and based on salary market
 Participate in social insurance - health insurance according to the provisions on
the labor contract's salary
 Be sponsored medical expenses of Bao Viet Insurance if working officially for
full 08 months
 12 days off / year, Tet holidays according to regulations
 To participate in extracurricular activities and movements of the company
 Professional, dynamic environment with friendly colleagues
 Have the opportunity to enjoy preferential standards for individuals who are
excellent through the process of working at the company
 To be able to assume important positions in the company if there is a prospect
and assert personal capacity
 Other policies according to company regulations.

END