Contents

Strategic capabilities ..................................................................................................................................................... 6

Resources .................................................................................................................................................................. 6
Competences ............................................................................................................................................................ 6
Benchmarking ........................................................................................................................................................... 6
Value chain framework ............................................................................................................................................. 7
Internal capabilities ...................................................................................................................................................... 8
VRIO table ................................................................................................................................................................. 8
Strong domestic presence ........................................................................................................................................ 8
Technology advantage. ............................................................................................................................................. 8
Produce variety products.......................................................................................................................................... 9
The strength and weakness that Vina Acecook is currently having. ............................................................................ 9
Strength .................................................................................................................................................................... 9
Weakness .................................................................................................................................................................. 9
References .................................................................................................................................................................. 10

5
 6.1

Strategic capabilities
In order to understand about the internal environment of Vina Acecook company, analysis 2 fields of company
which are: resources and competencies. The benchmarking framework and value chain framework is used as the
6.2
method to analyze those. In the Neil Ritson’s book: Strategic Management define the value chain describes the
categories of activities within an organization which, together, create a product or service. The benchmarking is
understood as the reason how the companies can compare to each other

Resources
Vina Acecook is the “market conqueror” in instant noodle field for a long time. Because the company takes1 over
the market almost 30 years, it has a lot of advantage when compares with rival companies. In 2003, just after 1
years became a full foreign capital, the company had 30 chain of product process lines. The company average
income for a year is about 4.500 billion Vietnam dong. (agro info, 2008)

6.3
Competences
When the resources characteristic is about physical advantage, competences is more about intangible
achievement which is referenced to the activities that company good at. The Vina Acecook has done well in their
operation years. The company still remain as the “the most famous instant noodle company voted by consumers”
and “Hảo Hảo” brand is honored as “the most bought instant noodle” in 2018 and 2019. In order to keep up with
“the connoisseur”, the company keeps releasing new products which can remain the numbers of consumer stable
or maybe can raise the number up. (Vina Acecook, 2019)

Benchmarking
As the company has the most market share in the industry-70%, Vina Acecook company already has advantage
when compare with other company in the instant noodle industry. the company is 100% foreign capital and also
adapted the product making process from Japan-origin of instant noodle. Although, the company is foreign capital
6.4 and the director is a Japanese, almost 99% of employees are Vietnamese which create a working place has
“Vietnam Net” environment. Because of the famous and fame, the company easily introduces to consumer new
product and without a doubt consumer can trust quality of the product.

When compare to other company the instant noodle market itself, Vina Acecook has most of the share in the
market and far more surpass when compare to the seconds place- Masan company: Vina Acecook takes over 70%
when Masan only holds 19% of the market share. (Vina Acecook, 2019)

6
Value chain framework

Inbound logistic

Most of the ingredient use for instant noodle in the company can be bought from anywhere in Vietnam: the
noodle is made of flour and turmeric powder… Also the company has 30 manufactories cross the country. Almost
all the employees are Vietnamese which can make the working network become more affective and can hire new
employees for unexpected even happen in the future. The company also has strong basic based on the mother
company from japan in instant noodle industry. (Vina Acecook, 2019)

Operations

In the manufacturing, most of the employees are Vietnamese which the cost for employee’s payment are much
lower than the mother-company in Japan. All the ingredients are from inside the country so the cost for supply is
not so high when compare to other company. (Vina Acecook, 2019)

Outbound logistic

Vina Acecook has 7 branches and more than 300 agents nationwide. The whole delivery process is internal. The
company has their own of delivery network but only delivery to branches destination. (Vina Acecook, 2019)

Marketing and sales

Being the “Market conqueror” is an advantage in marketing. “Hảo Hảo” branch is most famous instant noodle
branch for a long time is an example. So good that their market shares take over 70%. (agro info, 2008)

7
Service

The famous of the Vina Acecook is a prove for its high quality in product, over 95% of the interviewee know about
“Hảo Hảo” instant noodle packs. In 2018 and 2019, the company keep the title of “the most consumed instant
noodle of the year”. With the “reasonable” price-only 3000d to 5000d per pack, “Hảo Hảo” is the cheapest instant
noodle branch in Vietnam. Recent years, Vina Acecook keep releasing new types of instant noodle to keep the
diversity in product choice for the customers. If in the beginning years of the company, the main products of Vina
Acecook focus on the “common and cheap”, nowadays the products are keep the diversity and bring a new vibe to
the customer
8.1 in order to keep the curious of the customer. (agro info, 2008)
8.2

Internal capabilities
VRIO table 8.3
Resources of Value Rare Inimitability Organized
capability
Strong domestic Yes Yes Yes Yes
presence
Technology Yes Yes No Yes
advantage

Produce variety Yes No No Yes

products

Strong domestic presence

Value of being a “market’s conqueror” in instant noodle field, it takes over 70% market share, far more than the
rest of other competitors. The company currently owns 10 factories, 4 branches and 300 distribution agents cross
the country. Almost 95% of interviewer know about an Acecook’s brand: “Hảo Hảo”, the company has advantage
about fame and famous. Being only one on the top of instant noodle in 2014 and have never dropped out of top
10 brands in Vietnam ever since. Strong domestic presence is a sustainable competitive advantage of Vina
Acecook. (Vina Acecook, 2019)

Technology advantage.
Due to the advantage in technology, Vina Acecook company earns a lot value from this advantage. The higher
technology, the better products and production process are. The production line with advantage technology can
help the company saves not only money but also times, bringing a lot of value for the company. But Vina Acecook
is not a company has inimitable capabilities in technology. Also the technology and product process line are based
on Japan’s technology, the other competitive from inside the country still can compare with Acecook. For
example, the Masan group with Omachi product based on UK research to their production line which is the reason
why an “after born” company can keep up can compare with the first, the conqueror in the instant noodle field.
This is considered as the temporary sustainable competitive advantage for Vina Acecook. (masan group, 2017)

8
 Produce variety products
the company provides variety types of instants food: instant noodle, vermicelli, instant Pho,… which can help
consumer easily to choose and buy company’s product. But due to the competitive in the instant noodle market,
many other company the variety of choice the most well-known is Masan group. Also tradition foods in Vietnam is
also can use as sustainable products for instant noodles. Variety of choice can create profit for the company but it
is just a competitive parry.

The strength and weakness that Vina Acecook is currently

having.
Strength
The company is having the competitive advantage with the rest of the rivalry in the industry. Vina Acecook takes
over 70% of market shares which almost 3 times higher than the “market challenger”-Masan Consumer (23%) and
way much higher than the rest of companies in the industry. This is a proof that the company have strong market
share and strong domestic presence can help the company promotes and earns more consumer in the future and
have the strong number of loyal customer. The company also has fame and really famous to the customer. Having
10 factories cross the country and 300 agents in Vietnam. After 23 years of operating, the company earned a lot of
9.1
experience thought development and also avoid the mistake that the mother-company already get. The company
has a lot of experience thought the development time.

Weakness
There are a lot of competitive companies in the industry and “the wind may not blow in the same way anymore”.
In the pass, “Miliket” was the most well-known branch in Vietnam but “the king” was taken down. Vina Acecook
takes the market ever since. Many branch are developing so fast that someday can take down the “conqueror”.
Instant noodle is not a really a healthy food and people nowadays try to be heathier to get better life. Instant
noodle also can be replaced by another food or home cook meals.

9
 References
agro info, 2008. BÀI HỌC TỪ ACECOOK. [Online]
Available at: http://agro.gov.vn/vn/tID9608_Bai-hoc-tu-AceCook-.html
[Accessed 6 12 2019].

masan group, 2017. Mì khoai tây Omachi. [Online]

Available at: https://www.masanconsumer.com/masan-info-news-and-event/mi-khoai-tay-omachi-2/
[Accessed 5 10 2020].

Vina Acecook, 2019. Acecook Việt Nam là nhà sản xuất mì ăn liền được người tiêu dùng lựa chọn nhiều nhất năm
2018, 2019. [Online]
Available at: https://acecookvietnam.vn/acecook-viet-nam-la-nha-san-xuat-mi-an-lien-duoc-nguoi-tieu-dung-lua-
chon-nhieu-nhat-nam-2018-2019/
[Accessed 6 12 2019].

Vina Acecook, 2019. branch information. [Online]

Available at: https://acecookvietnam.vn/en/branch-information/
[Accessed 6 12 2019].

10

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Index of comments

1.1 Failed P2

3.1 1. Strengths:

- The student attempted to use benchmarking method and discuss the value chain of Vina Acecook company to
find out the strategic capabilities of the company.

- Some business data have been provided in the discussion of the value chain of the company.

2.Weaknesses:

- More comparison criteria should be used in the benchmarking section.

- Value chain of the company should be discussed more comprehensively with a clear structure. Support activities
should also be analyzed.

- VRIO table should be redeveloped. Relevant explanation for the table should be devised.

- The weaknesses of the company should be identified more reasonably.

- The work contains many spelling and grammar errors.

3. How to further improve:

- Assignment context should be incorporated into the introduction and conclusion.

- All sources should be cited in Harvard style (both inside and at the end of the assignment). All tables, graphs,
charts should be cited properly as well.

- There should be better transition between different contents in the work.

- Careful proofreading is highly recommended to avoid spelling and grammar errors.

The student is highly recommended to redo the assignment for second submission chance.

Final score: failed P2

Assessor: Nguyen Thuy Linh (6th Oct 2020)

6.1 Missing Introduction?

6.2 Ref?

6.3 What's the purpose of these part? Theoretical explanation or the discussion on the resources and competences of
the company? Either way, it's still ineffective.

6.4 This benchmarking is not effective. You have to make clear comparison between your chosen company and the
competitors or industry average in terms of specific comparison criteria.

8.1 What about the support activities of the company?

 Index of comments

8.2 A final conclusion about the company's key strategic capabilities should be drawn before applying VRIO to assess
them in later part.

8.3 You should add one more column: competitive implications to name each capability such as: competitive parity,
temporary competitive advantage, sustainable competitive advantage.

9.1 The company’s strengths and weaknesses should be named clearly and properly.

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