ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 03/07/2021 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Duong Vo Son Hoai Student ID GTD201899

Class GBD905 Assessor name Le Xuan Nguyen

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

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 TABLE OF CONTENTS

1. Introduction:---------------------------------------------------------------------------------------------------------------------- 4
2. Macro environment:------------------------------------------------------------------------------------------------------------ 4
2.1. Socialcultural factor:------------------------------------------------------------------------------------------------------ 4
2.2. Economic factor:----------------------------------------------------------------------------------------------------------- 5
3. Micro environment:------------------------------------------------------------------------------------------------------------ 6
3.1. Current competition:----------------------------------------------------------------------------------------------------- 6
3.2. Potential competition:--------------------------------------------------------------------------------------------------- 8
3.3. Power of buyers:----------------------------------------------------------------------------------------------------------- 9
3.4. Power of suppliers:------------------------------------------------------------------------------------------------------ 10
3.5. Threat of substitutes:--------------------------------------------------------------------------------------------------- 10
4. Internal analysis of KinhDo confectionery joint stock company:--------------------------------------------------11
4.1. Brand:----------------------------------------------------------------------------------------------------------------------- 11
4.2. Human resource:--------------------------------------------------------------------------------------------------------- 13
4.3. Strengh and weakness of KinhDo confectionary Joint Stock Company:-----------------------------------13
5. SWOT analysis of KinhDo confectionary Joint Stock company:----------------------------------------------------14
5.1. Business decision-making:--------------------------------------------------------------------------------------------- 14
5.2. SWOT analysis:----------------------------------------------------------------------------------------------------------- 14
6. Conclusion:---------------------------------------------------------------------------------------------------------------------- 15
References*--------------------------------------------------------------------------------------------------------------------------- 16
 1. Introduction:
The confectionery market is really developed in Vietnam. This industry is very profitable. There are
also many confectionery companies in Vietnam with a wide variety of products. This increases the
likelihood of customer satisfaction as well as more buyers.
KinhDo Confectionery Joint Stock Company is the company that I would like to introduce. This is the
company with the most potential for development in the Vietnamese confectionery market.
2. Macro environment:
2.1. Socialcultural factor:
- The lifestyle of Vietnamese people is improving day by day. They will be more concerned about the
safety of the food they consume. Customers will be more interested in whether the candy
ingredients have many health effects. Customers will prioritize products with big brands. Products
with "fat" and "cholesterol" content are suitable for health.
- The development of the tourism industry makes the confectionery industry develop because of the
need to buy long-preserved gifts as gifts from tourists.
- According to information published on General Department of Population (Danso.org, 2020) as of
December 31, 2020, the population of Vietnam is estimated at 97,757,118 people, an increase of
876,475 people compared to the population of 96,903,947 people the previous year.
- According to data on Wikipedia (Wikipedia, 2020) Vietnam has more than 54 ethnic groups, with Kinh
making up the largest percentage (about 86%), Tay (about 1.9%), Thai(1.8%).

Figure 1: Age chart in VietNam (Source: Danso.org, 2017)

- The population is concentrated at the age of 15-64, then 0-14. There are a lot of people under the
age of 30 in Vietnam, which is the main confectionery consumption force.
- According to the DanSo website (Danso.org, 2017) as of 2017, 67,190,823 people or 94.52% of the
adult population (aged 15 and over) in Vietnam can read and write. Accordingly, about 3,895,532
adults are illiterate.
- Vietnam is divided into three regions: urban, rural and mountainous. According to data on
Vietnam.net (VietNam.net, 2020), an urban person will have an income of 5.5 million VND/month,
and 3.48 million VND/month in rural areas. The general income of the whole country is 4.23 million
VND/month per person.
- Most Vietnamese people follow Buddhism. According to information on Wikipedia (Wikipedia, 2020)
the number of believers accounts for 4.8% of the country's population. These believers will not use
products such as meat and fish.
 Positive impact
- The average income of Vietnamese
people is quite good. They can access
confectionery products that are not
expensive. Some product of KinhDo
only from 6,000 VND.
- The age of Vietnamese people is
concentrated under 30. This is the age
of consuming the most confectionery
products. Therefore, KinhDo will have
a large number of customers.
- Products made from flour, butter, and
grapes will be easily accessible to
Buddhists.
- With a population of nearly 100 million
people, KinhDo's products are easily
accessible to more people in the
Vietnamese market.
Figure 2: Possitive and Negative impact of sociocultural factor upon to Kinh Do confectionary jont-stock
company.
Negative impact
- Customers will be more demanding
when choosing products because
health factors are put on top.
KinhDo have famous brand and
high equipment. It’s attract
customer buy product.
- The product must have a beautiful
design because many people want
to buy it as a gift.
- In some mountainous areas, it will
be difficult for KinhDo to reach
customer here,due to geographical
obstacles.

 The general impact of socialcultural factor on confectionary business:

- Social culture creates the corporate cultural environment.
- The North - Central - South market in Vietnam will be different due to cultural differences. The social
culture creates the corporate culture environment. Confectionery companies need to have
reasonable policies to suit the social culture in that area.
- Market demand depends on lifestyle and customs.
2.2. Economic factor:
- According to the ADO report, (nhandan.vn, 2021) Vietnam's economy is forecasted to grow by 6.7%
in 2021 and 7% in 2022. This is a strong and solid growth, thanks to the success of Vietnam's
economic growth. Vietnam's contribution in controlling the Covid-19 pandemic.
- According to the forecast of Vietnam's economic situation, the International Monetary Fund (IMF,
2021) believes that, although the pandemic leaves some lasting adverse effects, the economy is
expected to recover strongly in 2021 as the normalization of domestic and foreign economic activities
continues. Fiscal and monetary policies are expected to remain supportive, albeit to a lesser extent
than in 2020, and inflation is forecast to remain close to the Government's target of 4%.
- According to the labor report information on the General Statistics Office (gso.gov.vn, 2020) as of
December 2020, the labor force participation rate in the third quarter of 2020 was 74.0%, up 1.7
percentage points from the previous quarter but still 2.4 percentage points lower than the same
period last year.
- According to a report by the General Statistics Office (gso.gov.vn, 2020) Vietnam's total GDP in 2020
reached $3,521, ranking sixth in ASEAN, up 2.91%. The scale of the economy is more than 343 billion
USD. The unemployment rate of working age in 9 months of 2020 is 2.48%, 1.14 times higher than
the same period last year.
 Figure 3: VietNam GDP growth 2010-2020 (Source: Gso.gov.vn, 2020)

Positive impact Negative impact

- The relatively low inflation (4%) is under the - The unemployment rate is higher than the
control of the government so that previous year, putting the economy under
companies can borrow capital from banks great pressure when it comes to solving
for investment and development. Low problems for these people.
inflation will lead to lower interest rates on - GDP in 2020 decreased to 2.91% due to the
bank loans. Covid-19 pandemic. However, this level has
- A strong and stable growing economy will been very stable compared to other
attract foreign investors and promote the countries in other regions. But this has
development of domestic enterprises. temporarily slowed down the development
- High-tech machinery and equipment will be progress of the Vietnamese economy.
invested in Vietnam if it attracts large
investors.
- GDP growth helps people's living standards
to be improved and they will have the
opportunity to access more products,
services and goods.
Figures 4: Possitive and Negative impact of economic factor upon to Kinh Do confectionary jont-stock company.

 The general impact of economic factor on confectionary business:

- If the economy is in recession, high unemployment rate, high bank interest rate will reduce
purchasing power. It will cause commodity-producing industries such as the confectionery industry to
fall into recession
- Markets and customer needs are always changing. Confectionery companies need to promptly
change according to the market situation to avoid losses and bankruptcy.
- Confectionery companies need to have products at reasonable prices with the income of customers
to ensure the products reach as many people as possible.
3. Micro environment:
3.1. Current competition:
The confectionery market is a potential market. Therefore, there are many confectionery companies
operating in the Vietnamese market. These companies are different in size but always compete with
each other. Some prominent companies in the confectionery industry are: KinhDo, HaiHa, BiBiCa.
-
- According to information published on Vietstock (Finance.Vietstock.vn/HHC, 2020), HaiHa's owner
equity is 468 billion VND, the revenue of this company in 2020 is 1471 billion VND, total assets up to
1.188 billion VND. Besides, According to annual report of Kinh Do Confectionery Joint Stock Company
was published on Vietstock (Finance.Vietstock.vn/KDC, 2020), KinhDo’s owner equity is 7.699 billion
VND, the revenue of this company in 2020 is 8.324 billion VND, total assets up to 12.349 billion VND.
And according to annual report of Bibica confectionary company was pubblised on website of this
company (bibica.com.vn, 2020), Bibica’s owner equity is 1.095 billion VND, the revenue of this
company in 2020 is 1.219 billion VND, total asset up to 1.543 billion VND. With the above data, we
can see that the companies in the confectionery market are quite different in size. KinhDo
Confectionery Joint Stock Company has a much larger scale than two typical companies in the
confectionery industry, HaiHa and Bibica. Total asset of KinhDo is about 8 times higher than Bibica
and about 10 times higher than HaiHa. Although the revenue of Bibica and HaiHa is similar, the two
have a big gap because KinhDo is about 7 times. Competitors in the confectionery market are not
roughly equal size.
- Confectionery companies have their own products to create market influence. The prominent
confectionery companies in the market such as Bibica, HaiHa, KinhDO all own a large number of
distinct products. Although it is the same cookie, KinhDo has products such as Cozy and AFC cookies
with flavors such as seaweed, butter, grapes, etc. Bibica also has cookies products with different
recipes such as Goody chips with chocolate flavor, cashew nuts, grapes, etc. HaiHa also has cookies
products with distinctive flavors such as Kami algae cookies, buran milk cookies, etc. Different
products make a high difference for companies. There is a high level of differentiation.
- According to VietNambiz (VietNambiz.vn, 2020), mature economy is the term used to describe a
country with a stable population and slowing economic growth. A stable population is a state when
the birth rate is equal to or lower than the death rate.
+ According to a report by the Da Nang electronic information portal (danang.gov.vn, 2019), the
crude birth rate in Vietnam in 2019 is 17.7% and the crude death rate is 5%. Therefore, the
population in Vietnam is unstable because the birth rate is higher than the death rate.
+ Vietnam's GDP is growing slowly and stably. But in 2020 due to the global impact of the covid-19
pandemic, the global economy is also affected. Therefore, Vietnam's GDP will decrease from 7.02%
(2019) to 2.91% (2020).

Figure 4: VietNam GDP growth 2010 - 2020 (Source: Gso.gov.vn, 2020 )

 Therefore, the Vietnamese market is not a mature market, although it has a fairly
stable GDP growth rate, it has an unstable population and is subject to population pressure and
employment problems.
 Through the above factors, we can see that the competitiveness of competitors in the confectionery
industry is low.
 THREAT LEVEL: LOW
3.2. Potential competition:

Enterprises when choosing to enter the confectionery have to face many barriers. Those are barriers
that these businesses must overcome in order to survive in the confectionery market, more and
more develop. It's not easy for businesses. These potential competitors are not yet present in the
industry, but they can also exert great influence in the future. Besides the competition of
confectionery businesses that have not yet operated in the Vietnamese market, Kinh Do
Confectionery Joint Stock Company competes with companies already present in the Vietnamese
market that are trading in other products and in the future can trade in the same products as the
company. Those barriers are:

- Barriers to entry: Food safety issues are the most concern by society. Food safety standards are
getting higher and higher. This requires businesses operating in the food industry to always have an
environmental treatment system, modern machinery, and food safety machines to meet the needs of
the community. Failure to ensure food safety will cause serious problems for businesses. Customer
loyalty will decrease. They will no longer trust the company's products. Large companies like Kinh Do
Confectionery Joint Stock Company always meet this standard. Because they always have modern
equipment to ensure product quality. It will reduce the competition of smaller companies that want
to enter the confectionery industry. Therefore, the barrier to entry is quite high.
- Experience and learning: The confectionery market is very diverse with many products. Part of that is
because there are already so many companies operating in the market. These companies have been
operating for a long time and have researched many new products with their experience and learning
process. The oldest companies operating in the confectionery field are Kinh DO since 1993, Bibica
since 1990, Hai Ha since 1960. The experiences of these companies help them to have products with
the right taste for customers as well as the right strategies. New companies can hardly compete with
quite famous products such as AFC cakes - Cozy, Solite, Slide, Hura, Goody.
- Access to supply and distribution channels: According to the introduction of KinhDo confectionery
group (KDC.vn, 2020), Kinh Do has a nationwide distribution system with 32 Kinh Do Bakery, more
than 200 Distributors and 70,000 confectionery retail points, 335 Distributors and 104,000 beverage
retail points, 70 distributors and 15000 retail ice cream and cold foods. According to the information
introduced by Bibica confectionery company on VNR (VNR.500.vn, 2020) Bibica has a distribution
system more than 100,000 points of sale, 120 distributors, over 600 supermarkets/convenience
stores, commercial The Bibica effect has also spread to 21 countries around the world such as the US,
Japan, Singapore, and Cuba. Distributors play an important role in whether the product reaches the
end consumer or not. The more distributors, the easier the product will be accessible to customers.
Confectionery companies must have a market in the entire province of Vietnam. Existing competitors
in the market already have a large number of distributors. Therefore, it is quite difficult to reach
many distribution channels of new people who want to enter the confectionery industry. This barrier
to potential competitors is quite high.
 The barriers to entry as well as the ability to access distributors of potential competitors is high. The
lack of experience compared to previous companies is also a big barrier for new companies
wanting to enter the confectionery industry. Therefore, the competition of potential competitors in
the confectionery industry is low.
 THREAT LEVEL: LOW
3.3. Power of buyers:
It seems that the competitive pressure that businesses face is customers. They can impact the
company. Because, they will be the ones who decide the success or failure of the company. With
diverse requirements set by customers such as price, product quality, food safety. It will affect the
competitiveness of companies when it comes to pleasing customers.
- Customers always have 2 main groups which are:
+ Distributors: Including retailers, product distributors.
+ End consumers: Those who use a product and make decisions about whether to continue using it or
not.
- Price sensitive buyers: Different regions have different requirements. Customers in urban, rural and
mountainous areas will have different thoughts about prices, which forces the company to have a
solution to attract customers. Specifically, in urban areas, the product must be beautiful and good-
looking. Product quality must also be high. And users in rural and mountainous areas will prioritize
products with moderate design and quality, and prices that are suitable for people here.
- Buyers are concentrated: The confectionery market is having high purchasing power coming from
many customers rather than focusing on a few large customers. The consumption market of the
confectionery industry is very diverse. Buyers of the confectionery industry are located in many
regions and they have access to a wide range of products because confectionery companies have
many distribution points. According to the introduction of KinhDo confectionery group (KDC.vn,
2020), Kinh Do has a nationwide distribution system with 32 Kinh Do Bakery, more than 200
Distributors and 70,000 confectionery retail points, 335 Distributors and 104,000 beverage retail
points, 70 distributors and 15000 retail ice cream and cold foods. According to the information
introduced by Bibica confectionery company on VNR (VNR.500.vn, 2020) Bibica has a distribution
system more than 100,000 points of sale, 120 distributors, over 600 supermarkets/convenience
stores, commercial The Bibica effect has also spread to 21 countries around the world such as the US,
Japan, Singapore, and Cuba.
- Low cost of switching to another supplier: The company that has quality products suitable for
customers' pockets will create greater competitiveness. The confectionery products are diverse and
focus on cakes, candies, ice cream, etc. These products are really not too expensive for all 3 customer
markets. Therefore, low switching costs make it easier for customers to choose another brand's
product if they find that company's pricing more reasonable to their income level. The company must
strengthen its supply ability to meet the needs of customers that make them always want to choose
the company's products first. The prices of confectionery products on the market are also quite
suitable for customers. Example, Kinh Do's grape butter bread is only priced from 6,000 VND, Bibica
fruit clown cake is 25,000 VND, Tomato Oshi snacks is 6.000 VND, Swings snacks is 6,000 VND, etc.
 With a large number of buyers and they have great decisive power in the market because the cost of
switching to substitute products is quite low. Therefore, the power of the buyer is high.
 THREAT LEVEL: HIGH
3.4. Power of suppliers:
Suppliers play a huge role for companies that need a lot of ingredients like those operating in the
confectionery sector. They can put pressure on companies in many ways. In which, some common
ways are such as increasing service prices, reducing product quality, increasing delivery deadlines.
Making the company's production process stagnate and encounter many difficulties.
- Few substitutes: The indispensable ingredient in the confectionery company is flour. The production
process of these companies will have problems if the delivery of raw materials is delayed or the
material is not of good quality. According to information on Zingnews (Zingnews, 2020), the covid 19
epidemic has pushed up the price of flour because Covid-19 has restricted trade between countries.
- Suppliers hold scarce resources: The Covid-19 epidemic has made it more difficult for companies
operating in the confectionery industry to import confectionery ingredients. Ingredients become
harder to find. Some materials are still available in the country but it is difficult to ensure the
necessary quantity for the corporation. The flavoring group is mainly imported from abroad. As
KinhDo company imports through overseas representative offices such as Mane, Griffit, Cornel bros.
- Suppliers can integrate forwards: Vietnam also has sugar factories which increase the number of
suppliers. But the domestic sugar price is quite high. But the price of imported sugar from Thailand,
Laos, Cambodia, Malaysia, and Indonesia is quite cheaper, so the quantity imported is more.
According to information published on the stock news (tinchungkhoan.vn, 2021) In the first quarter
of 2021, sugar imported from 5 ASEAN countries including Cambodia, Laos, Malaysia, Myanmar,
Indonesia to Vietnam about 188,202 tons, up to 5,735% compared with the same period. Along with
the trend of vertical merger of sugar mills. Because there are many domestic companies importing
sugar from abroad in many industries. In the confectionery industry alone, there are companies such
as Huu Nghi, Bibica, Hai Ha, Kinh Do, Trang An, etc. This will create competition when the
confectionery companies on the issue of sugar prices.
 Suppliers have a great influence on confectionery companies. The power of the supplier is quite high.
 THREAT LEVEL: HIGH
3.5. Threat of substitutes:
Vietnam's confectionery market is very diverse. However, the confectionery products on the market
are easily changed according to the buying needs of customers. Therefore, products that do not
match the needs of customers will be easily replaced by other products with more suitable price and
quality for customers.
- Nowaday, consumers will prefer to use branded products. Because, the issue of food hygiene and
safety is being put on the top by consumers. Customers will prefer to choose products of big brands
that already exist in the market. They want their own health to be guaranteed. Therefore, big
companies in the confectionery industry such as: Bibica, HaiHa, KinhDo. These companies are always
chosen by consumers. KinhDo can meet this demand of customers to limit being replaced by other
companies' products.
- The substitute benefits from an innovation that improves customer satisfaction: Organic food is the
choice of most customers because of its health benefits. That partly makes processed products will
be affected. However, young Vietnamese people tend to use more
- The price/performance ratio of the substitute is not superior: There are many confectionery products
on the market with similar prices. Thus creating a great competition in the market.
 No Products Mass Prices Market growth
1 Butter fresh sponge cake 38g 6,000 Made with quality ingredients with safe
(KinhDo) VND processes. This cake has a huge market
in Vietnam. The low price will make it
accessible to many people. Preferred by
many generations.
2 Snack swing orion 36g 6,000 This is a good option for young people.
VND The taste of this snack is very delicious
and is loved by many people due to its
low price.
3 Snack Tomato Oishi 40g 6,000 Its taste is quite good but it does not
VND seem suitable for many people. Most
young people will like this product due
to its novel taste and low price.
Figure 5: (Comparision table about KinhDo's product and substitiles)

- The confectionery market is indeed very diverse. With a price of 6,000 VND was able to buy many
different products.
 The competition of substitute products is high. Because there are many products that can replace the
products of Kinh Do confectionery joint stock company with the same price. It can be the products of
other confectionery companies or companies that process canned foods, processed organic foods.
 THREAT LEVEL: HIGH
4. Internal analysis of KinhDo confectionery joint stock company:
4.1. Core value, Mission, Vision:
- According to the information on Kinh Do's introduction (KDC.vn, 2020), KinhDo's vision is "Increasing
the taste of life". That means KinhDO will develop many new confectionery products in the market to
satisfy customers' needs.
- According to the information on Kinh Do's introduction (KDC.vn, 2020), KinhDo's mission is to
become a prestigious FOOD GROUP in Vietnam and Southeast Asia by bringing more flavors to
customers with safe, nutritious, convenient and unique products.
- According to the information on Kinh Do's introduction (KDC.vn, 2020), KinhDo's mission are:
+ Creativity - Innovation
+ Dynamic Features
+ Pioneering - Leading
+ Calculate Quality
+ Trustworthiness
+ Have vision
4.2. Organization structure:
 Figure 6: Organization of KinhDo

- The structure of the Kinh Do is a partial structure. The parts have different functions. KinhDo divides up
companies responsible for manufacturing different products: cakes, crackers, cookies, buns, candies. These
companies are self-determined about their business activities but always support each other.
4.3. Brand:

Figure 7: KinhDo’s Logo

- Brands play an important role for companies. Companies that want to be competitive in the market
must make their brand famous in the market. KinhDo Confectionery Joint Stock Company has a long-
-
 standing brand name in the market. According to the introduction of KinhDo confectionery group,
this group ranks first in the food industry with a popularity index of 60.
- KinhDo was established in 1993. The group has many famous brands such as Merino, Cozy, AFC, Wei
Yo, Celano. This makes KinhDo's products always have great coverage as well as easy access to many
new customers.
4.4. Human resource:
- The human resources of Kinh Do confectionery joint stock company are really strong and
experienced. The management of the company really has the vision and strategy to run the company
effectively. The staff are all professional and skilled.

Numerica Job position Amount(Person Proportion(%)

l order )
1 Board of Directors 14 0,50
2 Heads of departments and workshops. 48 1,72
3 Officers, office staff, business development. 777 27,94
4 Worker 1.804 64,89
5 Housekeeping, security, driver, warehouse 134 4,99
Total 2.781 100,00
Figure 8: Labor structure according to functional management (Source: KDC.vn, 2010)

Numerica Section Amount(Person) Proportion(%)

l order
1 Above university 19 0,68
2 University 213 7,69
3 College, High School 244 8,77
4 Other 2.304 82,85
Total 2.781 100,00
Figure 9: Labor structure by level (Source: KDC.vn, 2010)

- With a large workforce, the company's operations run more smoothly. The many leadership ranks make the
corporation run smoothly.
4.5. Strengh and weakness of KinhDo confectionary Joint Stock Company:

Strengths
Core value, + Know how to approach
mission, customers, always create new
vision products to meet customer needs.
Organization + The divisional structure gives the
structure company's business segments the
opportunity to develop their own
advantages and unique products.
Brand + Strong brand, large market share
and easy recognition of customers
make KinhDo's products able to
cover the confectionery market.
Weaknesses
+ It is necessary to surpass other food
companies in Southeast Asia to take
the top spot in the region.
+ There will be some parts that have
the same function.
+ The company's products are not
evenly branded, some products are
promoted more than others.
+ Not focusing on building brand in
 + Large and long-standing brands foreign countries.
make the group's products
accessible to new customers.
Human + Having a team of highly educated + It is necessary to have labor policies
resource and skilled workers makes the to ensure a large number of employees
company's operating activities of the company.
more smooth. + Need to train more important
+ The experience of the board positions of the company.
members will make the company
run smoothly.
+ The large workforce helps the
company's production activities to
develop.
Figure 10: Strenghs and weaknesses of Brand and Human resource of KinhDo confectionary Joint-stock
company.

5. SWOT analysis of KinhDo confectionary Joint Stock company:

5.1. Business decision-making:
According to information published on the company's strategy section (KDC.vn, 2020), the company's
business strategies are:
- Growth strategy through acquisition: Kinh Do has been attached to the M&A strategy for many years.
The growth of the company was greatly contributed by these deals, the acquisition of other
confectionery brands and their merger into KinhDoo. It will help KinhDo to limit competitors and
expand its brand.
- Growth strategy through joint venture: Kinh Do also announced to shareholders that it will cooperate
with Saigon Ve Wong Co., Ltd. to produce instant noodles and sauces under Kinh Do's brand. This will
increase Kinh Do's growth in the food industry.
5.2. TOWS analysis:

SO Strategies + With its position as a major player in the confectionery market. KinhDo is
constantly developing. The company's products are very diverse with many
beautiful designs. With modern technological lines, the products of this
company are gradually meeting the needs of customers in terms of both food
safety and price.
+ The field that KinhDo develops has expanded into the production of sauces
and condiments through joint ventures with other companies. This makes
KinhDo growing stronger with many investment fields.
+ To develop more KinhDo must invest in more machines to increase
development. As well as investing money to research new products with new
flavors that the confectionery market does not have.
WO Strategies + With great economic potential, KinhDo is acquiring smaller confectionery
companies with growth potential to increase brand value as well as reduce
new competitors.
+ Owning a number of distributors makes KinhDo's products easily accessible
to more customers. Thus, increased purchasing power accelerates the
production process.
+ KinhDo's machines can produce large quantities of products. Make the
 production cost cheaper. And the products sold will be cheaper with
competitors increasing the purchasing power of customers.
+ Big brands make confectionery products from smaller companies
overshadowed. Customers will prioritize choosing KinhDo products because of
its coverage.
ST Strategies + The confectionery market has many products with similar prices. The
number of confectionery products of confectionery companies is very large.
Many products of other companies are cheaper than KinhDo products.
Therefore, KinhDo should occasionally launch gratitude events and
promotions to attract new customers.
WT Strategies + Imported confectionery products are highly competitive in the Vietnamese
market. Besides, the conversion to using other products of customers is quite
low. Products with better prices and good taste like Chocopie will be preferred
by customers. Therefore, KinhDo is creating new products with prices more
suitable to customer needs.
+ KinhDo has not focused on distributing products in rural areas. That makes
KinhDo lose a large number of customers here to competitors. Recently,
KinhDo's strategies are targeting customers here to increase its unique
position in the market.

- According to its business strategy, KinhDo's goal is to develop confectionery products to enhance its
own brand. KinhDo will always develop products with flavors that can satisfy many customers in
order to expand the market. KinhDo will also apply the strategy of merging many companies with
growth potential with its financial potential. Thus, eliminating many new competitors and making the
company's brand larger and more diverse. KinhDo must limit its weaknesses and promote its
strengths to become stronger. The cooperation with other food companies to produce products
outside the confectionery industry will make the company have a more diversified market.
- With an existing and growing brand name. KinhDo will be able to sell more of its products in regions
around the world. Paying attention to food safety will make KinhDo have trust from customers. As
well as eliminating a few other opponents.
6. Conclusion:
The report has shown us the competitive pressures of companies in the confectionery market. We
have seen the strengths and weaknesses of KinhDo. The strengths are the advantages for us to
develop the company further in the market. KinhDo's weaknesses need to be overcome to enhance
the company's competitiveness in the market. With great financial potential and outstanding brand
name with many famous products. We can see that the company's growth potential is huge in the
confectionery industry. Owning many distributors makes KinhDo's products present in many stores
across the country. Investing in this company is a pretty good choice.
6.1.
 References*
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