ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

Submission date 29 December 2020 DateReceived1stsubmission

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Student Name Nguyen Tuan Anh Student ID GBD201490

Class GBD0902 Assessor name Phan Tran Phuong Trang

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 TABLE OF CONTENT
A. INTRODUCTION .................................................................................................................................1
B. FINDINGS..................................................................................................................................................1
I. PORTER’S FIVE FORCES......................................................................................................................... 1
1. Potential competition..................................................................................................................... 1
2. Current competition ....................................................................................................................... 1
3. Threat of substitute ........................................................................................................................ 1
4. Power of suppliers .......................................................................................................................... 1
5. Power of buyers ............................................................................................................................. 1
II. PESTLE ANALYSIS .................................................................................................................................. 1
1. Political Factors .............................................................................................................................. 2
2. Economic Factors ........................................................................................................................... 2
3. Social Factors .................................................................................................................................. 2
4. Technological Factors ..................................................................................................................... 2
5. Legal Factors ................................................................................................................................... 2
6. Environment Factors ...................................................................................................................... 3

C. DISCUSSION ..........................................................................................................................................3
I. POSITIVE AND NEGATIVE IMPACTS OF MACRO ENVIRONMENT TO THE COMPANY ........................ 3
1. Porter’s Five Forces ....................................................................................................................... 3
1.1. Potential competition .............................................................................................................. 3
1.2. Current competition ................................................................................................................ 3
1.3. Threat of substitute ................................................................................................................. 4
1.4. Power of suppliers ................................................................................................................... 4
1.5. Power of buyers ....................................................................................................................... 5
2. Six Factors of Macro Environment (PESTLE) ................................................................................. 5
2.1. Political .................................................................................................................................... 5
2.2. Economic ................................................................................................................................. 5
2.3. Social ........................................................................................................................................ 6
2.4. Technological ........................................................................................................................... 7
2.5. Legal ......................................................................................................................................... 7
2.6. Environment ............................................................................................................................ 8
II. INTERNAL AND EXTERNAL ANALYSIS – SABECO’S POTENTIAL ........................................................... 8
1. The internal environment of SABECO ........................................................................................... 8
1.1. Vision – Mission – Core value .................................................................................................. 8
1.1.1. Vision .......................................................................................................................... 8
1.1.2. Mission........................................................................................................................ 8
1.1.3. Core value ................................................................................................................... 9
1.2. Company structure .................................................................................................................. 10
 1.3. Human Resources .................................................................................................................... 11
1.4. Brand Equity ............................................................................................................................ 11
1.5. Financial Strength/Fix assets ................................................................................................... 11
1.6. Research and Development..................................................................................................... 12
2. The influence of external environment ........................................................................................ 13
III. STRENGTHS – WEAKNESSES – OPPORTUNITIES – THREATS ANALYSIS .............................................. 13
1. SWOT ANALYSIS............................................................................................................................. 13
1.1. Strengths of SABECO................................................................................................................ 14
1.2. Weaknesses of SABECO ........................................................................................................... 14
1.3. Opportunities of SABECO ........................................................................................................ 14
1.4. Threats of SABECO ................................................................................................................... 14
2. Decision-making of SABECO – New solution for the new context .............................................. 15
IV. LESSON FROM EXPERIENCE OF CURRENT COMPETITOR .................................................................... 16
1. HEINEKEN’S PROFILES.................................................................................................................... 16
2. Analysis the solution to both companies ..................................................................................... 17
2.1. Advantages of HEINEKEN......................................................................................................... 17
2.2. Disadvantages of HEINEKEN .................................................................................................... 17
3. Lesson for SABECO......................................................................................................................... 17
D. CONCLUSION .......................................................................................................................................17
REFERENCE ...................................................................................................................................................19

LIST OF PICTURES
Picture 1: PESTEL model analyzes the enterprise environment ........................................................................ 1
Picture 2: Some popular beer brands in Vietnam ............................................................................................. 4
Picture 3: The police go out to check for alcohol content violations in traffic .................................................. 8
Picture 4: Core Values of SABECO (Annual report 2019, p.13).......................................................................... 9
Picture 5: The organization structure of SABECO (Annual report, 2019, p.33) .................................... 10
Picture 6: Some typical products of SABECO ..................................................................................................... 11
Picture 7: SABECO's sustainable development strategy focuses on four pillars .................................. 13

LIST OF FIGURES
Figure 1: Per capita income in Vietnam from 2010 to 2020 and forecast by 2021 ........................................... 6
Figure 2: Energy consumption figures for 2019 compared to 2018 .................................................................. 7
Figure 3: Profit after tax of SABECO (VNEXPRESS,2020) ...................................................................... 12
Figure 4: Beer market shares of enterprises from 2010 to 2019 ......................................................... 13
A.INTRODUCTION
SABECO is a famous beer brand in Vietnam with the leading beer market share in the country. Over 145
years of establishment and development, SABECO has been a familiar brand name to Vietnamese people.
In the previous report, the researcher analyzed the company's internal environment, the following report
will analyze how the external environment affects the company's operations.
Through Porter's Five Forces, PESTLE, and SWOT analysis, this report will show the strengths and
weaknesses of SABECO and the potential investors can realize.

B. FINDINGS
I. PORTER’S FIVE FORCES
1. Potential competition
Potential competitors are the competition that manifests itself in the reaction of existing competitors
to barriers to entry. The risk of intrusion by potential competitors will affect the level of competition in
the future.
2. Current competition
The major determinant is the number and ability of competitors in the market. When the market has
many competitors but the products and services offered do not differ much, it leads to a sharp drop in
the attractiveness of the market.
3. Threat of substitute
The substitution threat largely depends on the nature of the goods being traded in the market and the
degree of differences in the product, such as price and quality. If a product does not have a substitute,
the producer will face less competition, which results in a higher producer market power.
4. Power of suppliers
A supplier's bargaining power relates to the supplier's ability to put pressure on companies by increasing
prices, reducing quality or reducing the availability of products. Vendor powers are significantly reduced
as companies can produce the components they need by themselves.
5. Power of buyers
A customer's bargaining power means that a customer or consumer can put pressure on a business to
provide higher quality products, better customer service at lower prices. Buyers have higher market
power when a market has a small number of buyers. Enterprise, companies always need customers,
so most of the market power of customers is high.
II. PESTLE ANALYSIS
PESTEL analysis is an acronym for a tool used to identify the macroscopic (external) forces that an
organization faces.

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 Picture 1: PESTEL model analyzes the enterprise environment

1. Political Factors
These factors determine the extent to which government and government policies can affect a
particular organization or industry. Governments can impose a new tax or tax, which in turn can
change the overall revenue-generating structure of organizations. Political factors include tax policies,
Fiscal policy, trade tariffs, etc.
2. Economic Factors
These factors determine the performance of the economy that directly affects a company and has
lasting effects on resonance. For example, an increase in inflation will affect the way a company prices
its products and services. It also affects consumer purchasing power and supply/demand patterns for
that economy. Economic factors include inflation rate, interest rates, foreign exchange rates,
economic growth patterns, etc.
3. Social Factors
These factors carefully analyze the social environment of the market and evaluate determinants such
as cultural trends, demographics, demographic analysis and so on.
4. Technological Factors
These factors indicate that innovations in technology can affect industry and market performance,
either favorably or adversely. Factors can include changes in digital or mobile technology, automation,
research and development.
5. Legal Factors
Organizations need to understand what is legal and permitted in the territories in which they operate.
They also need to grasp the earliest changes in laws to adjust their business accordingly. Factors
include employment laws, consumer laws, health and safety, international and commercial regulations
and restrictions.

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 6. Environment Factors
The environment is an essential factor for certain industries such as tourism, farming, agriculture and
so on. Factors include climate, recycling, carbon emissions, waste disposal and sustainability.

C. DISCUSSION
I. POSITIVE AND NEGATIVE IMPACTS OF MACRO ENVIRONMENT TO THE
COMPANY
1. Porter’s Five Forces
1.1. Potential competition
The Vietnamese market is considered the directional land for both foreign and domestic brewers
due to the massive consumption. In reality, however, it is a highly competitive playing field. As a
long-standing beer company, SABECO has great power in the market and has become the leading
brand in Vietnam (VNEXPRESS, 2018).
1.2. Current competition
Vietnam's beer industry has grown rapidly over the past 10 years with beer production now
accounting for 95% of the total alcohol consumption of Vietnamese. Facing the great
attractiveness of the market, the world's leading beer brands such as Heineken, Tiger, Carlsberg,
Budweiser, Sapporo, ... all "landed" in Vietnam. Therefore, the Vietnamese beer market
gradually becomes "cramped" when there are more than 30 major beer brands in the world
participating. The increasing appearance of international beer brands has made competition in
the Vietnamese beer market increasingly fierce, especially in the premium beer segment. This is
a bad sign for SABECO when dealing with other famous beer brands (MINH DUNG, 2020)

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 Picture 2: Some popular beer brands in Vietnam.

1.3. Threat of substitute

Recently, after a series of doubts about the effects of alcohol on gout, scientists have finally
proved this connection is real. And beer is the most dangerous threat. Hence light beer
appeared. SABECO's direct competitor is HEINEKEN when it has launched a new non-alcoholic
beer.
1.4. Power of suppliers
Climate change is one of the main factors influencing the price and volume of key ingredients
such as malt and hops. Malt and hops are agricultural products; if the weather is not favorable,
farmers will not actively harvest, leading to a shortage of raw materials. Moreover, in order to
limit the negative impact of price and volume fluctuations, SABECO has actively looked for
solutions to reduce raw material costs such as (ANNUAL REPORT, 2019, P.52)
• Buying output in advance following the demand to ensure enough raw materials for
production.
• Maintain supplies from different regions to minimize the risk of product shortages and
provide the opportunity to purchase raw materials at the most affordable prices.
• Collaborate with companies in the system to make joint purchases to achieve better prices
and stable quality.
• Packaging improvements to reduce costs and harm the environment.
1.5. Power of buyers

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 With the number of over 300 breweries with the production of over billion litres per year and
with the presence of famous beer brands both at home and abroad such as Heineken, Tiger,
Sapporo. Beer products have given customers in Vietnam many choices. This has created
enormous competitive pressure on brewers, and SABECO is also facing similar difficulties.

2. Six Factors of Macro Environment (PESTLE)

2.1. Political
The beer industry is directly influenced by the State's policy changes.
• In 2018, the excise tax on alcoholic beverages increased from 60% to 65% on beverages with
an alcohol content above 20 ABV and increased from 30% to 35% for beverages below 20
ABV. This has a significant impact on the profitability of SABECO.
• In 2019, the Law on Prevention of Harms of Alcohol No. 44/2019 / QH14 was issued by the
National Assembly and came into effect from the beginning of 2020. This regulation affects
the consumption behavior of the beer and alcohol market in Vietnam. Besides, the law has
also enacted many restrictions on advertising beer and wine products. Businesses in the
industry have more difficulties in promoting products.
• At the end of 2019, the government issued Decree No. 100/2019 / ND-CP on handling
violations in the road traffic sector with strong and strict sanctions to minimize traffic
accidents. However, this will cause a significant reduction in alcohol consumption.
• In 2020, due to the complexity of the COVID-19 epidemic, the government has policies to
restrict people from going to the streets and closing businesses such as restaurants, bars,
and karaoke. This causes SABECO's local consumption channel seriously affected, leading to a
decline in revenue and profit in 2020.
2.2. Economic

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 Figure1: Per capita income in Vietnam from 2010 to 2020 and forecast by 2021

In 2020, Vietnam is one of the four economies with per capital GDP growth (Viet Hoang, 2020)
According to the General Statistics Office of Vietnam, the economic growth rate in 2019 will reach
7.02%, creating favorable conditions for SABECO's the production and business activities (Annual
report, 2019)
Vietnam's economy is in a fast-growing group with increasing GDP and per capita income and rapid
urbanization. Vietnam is one of the countries in the region with a population structure in the "young
population" period. These are factors that help boost demand and support the future growth of
Vietnam's beer market.
According to John and Partners, there is a strong disparity between urban and rural incomes. This leads
to significantly different trends and habits of Vietnamese product consumption in different regions,
depending on each person's income level. The writer also points out that in industrial activities, the
beer-alcohol-beverage industry has higher economic efficiency than other industries (John & Partners,
2018)
2.3. Social
Vietnam is witnessing rapid changes in population and social structure. Currently, Vietnam's
population is 96.5 million, with 70% of the population under 35. This is a good sign for the beer
industry.
According to John et al., With a golden population structure, increasing educational attainment, a
growing middle class and a stable economic outlook of the government are key factors helping
Vietnamese consumers. More importantly, spend more money and drink more beer.

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However, domestic brewers cannot compete in the high-end beer segment, while the high-end
trend is strong. Vietnamese consumers tend to use more premium beers as a way to assert their
status in society. This has a significant impact on the domestic alcohol industry in general and
SABECO in particular.
2.4. Technological
In today's competitive era, product quality is the basic factor that all businesses must have if they
want to exist. In addition to traditional methods, using modern production technology will help
businesses achieve larger goals.

Figure2: Energy consumption figures for 2019 compared to 2018.

• Identifying technology and technology as the fundamental factor in competition and

development strategy, SABECO's factories are invested in machinery and equipment
synchronous with modern production technology to be imported from European industry
leaders such as Krones AG, KHS etc., => to reduce energy consumption.
• SABECO constantly improves and applies technology and equipment modern equipment in the
production process. This helps SABECO reduce the consumption of materials (water, chemicals,
solvents etc.).
• Highly automated and closed processes are issued and applied by the corporation, managed by
a team of experienced technical engineers and brews masters to ensure product quality.

2.5. Legal
• Despite bringing abundant tax revenues to the state budget, the beer industry and the entire
alcoholic beverage industry, are seen to have negative impacts on consumers' health and social
security. Therefore, the government and many social organizations, have carried out many
activities to limit the growth of the beer industry, such as organizing propaganda and education
about the harmful effects of alcohol, or especially increasing special consumption tax.
• According to SSI research, measures to reduce alcohol consumption include: banning
advertising at events and in the media within specific timeframes; prohibiting sales in specific
public places such as hospitals and schools; Prohibit selling to people under the age of 18 and
prohibiting driving after drinking (Nguyen Manh, 2020)

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 Picture 3: The police go out to check for alcohol content violations in traffic.

2.6. Environment
• The natural conditions are not suitable for developing raw material areas, causing domestic
enterprises to import almost 100% of raw materials, subject to high risks of supply fluctuations,
price fluctuations and exchange rate fluctuations.
• Water consumption and wastewater treatment create negative effects on the environment,
which affects the brewing process of factories.
• Environmental problems such as droughts and floods cause serious impacts on the main raw
materials for beer production. Climate change is a big problem for the beer industry.
• However, the environment also has a positive side when Vietnam is a hot and humid tropical
monsoon climate. Since summer is often hot, this increases the demand for soft drinks and
especially beer.
II. INTERNAL AND EXTERNAL ANALYSIS – SABECO’S POTENTIAL
1. The internal environment of SABECO.
1.1. Vision – Mission – Core value
1.1.1. Vision (Annual report, 2019)
The company’s continued success is due to the whole BoM's efforts – both its Vietnamese and
foreign members – and their shared focus on SABECO’s seven strategic pillars: sales, brand,
production, supply chain, cost, human resources, and board. Despite their differences in
background, knowledge, and expertise, each BOM member shares the same vision for SABECO –
to become a continually evolving company. SABECO has been finding strategies to become the
leading beverage group in Vietnam, having a firm foothold in regional and international markets
in 2025.
1.1.2. Mission (Annual report, 2019)

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 i. Develop Vietnam’s beverage industry to maintain its integration into the global
economy.
ii. Honor and promote Vietnam’s culinary culture.
iii. Provide safe, high quality, and healthy beverages while satisfying the needs and
wants of the consumers.
iv. Comply with the rules of international food safety standards.
v. Deliver value and bring benefits to their own shareholders, employees,
customers, communities, friends and family, and even competitors.
vi. Actively participate in community activities
vii. Continue to develop a strong economic position.
1.1.3. Core value (Annual report, 2019)

Picture 4: Core Values of SABECO (Annual report 2019, p.13)

➢ Heritage brand: The superiority of a traditional brand. Having been formed for more than 100
years, affirming a long-standing brand. Customers are always taken care of and have many
choices about the services that SABECO has proposed. Because of its long-standing reputation,
SABECO has become the "top of mind" in customers' heart - always the top choice product.
➢ Continuous improvement: Continuous learning, innovation, and improvement are the mottoes
that SABECO has set. With the desire not to stand in one place, SABECO always dreams of rising,
learning, and creativity to meet the ever-changing needs of customers.

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➢ Coherence: SABECO has been striving every day to create a friendly working environment. A
place where everyone can share and exchange to learn, create and contribute knowledge to lead
to SABECO's success.
➢ Cooperation for development: SABECO build "equally beneficial" partnerships as the basis for
sustainable development. SABECO develops appropriate policies for a long cooperation to
partner.
➢ Social responsibility: Social responsibility development is a tradition of SABECO. In addition to
bringing the best products to the market, SABECO also has the mission of taking responsibility for
social work and environmental protection through practical actions.
1.2. Company Structure

Picture 5: The organization structure of SABECO (Annual report, 2019, p.33)

SABECO's organizational structure is a division structure. This means that each department in the company
takes on and is responsible for each of the duties and responsibilities. The advantage of this structure is that
the departments are more flexible and efficient.

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 The division structure of SABECO is performed in a professional and reasonable manner, helping the company
to clearly divide responsibilities for each department.

Through the successes SABECO has received, the division structure brings many advantages for the company.

1.3. Human Resources

One of the factors that make this success is that SABECO always invests and develops a strong team.
Cooperation for mutual development: SABECO offers appropriate remuneration policies for its
employees; this makes them commit with the company for a long time.
SABECO builds a friendly and sharing working environment. Where all members are facilitated to learn,
create and contribute to the development of the company.
Recognizing that human resources are the most important value for sustainable development, SABECO
develops good remuneration policies for its employees.
• Tempting salary regime.
• Professional training programs are regularly held.
• Respect employees and recognize their contributions.
• Bring clear, fair promotion opportunities to everyone.
1.4. Brand Equity
As a long-standing brand name, SABECO always keeps its prestige in the hearts of consumers.
In 2019, SABECO increased brand investment through innovative and inspirational marketing campaigns
aimed at achieving new successes.
The consumer promotion program “Open Beer Saigon Special, rise up billions” is a company's strategy in
gratitude to customers and product advertising to confirm SABECO's leading position in the beer market.
With the brand image of a dragon - a symbol of Vietnam's strength and prosperity. A dragon's image
gives a good impression to consumers, leading to a national product's confidence.

Picture 6: Some typical products of SABECO

1.5. Financial Strength/ Fixed assets

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 Figure 3: Profit after tax of SABECO (VNEXPRESS,2020)

Based on the previous report's analysis, the financial advantage will be summarized through the following figures.

Total assets have increased to over 4,595 billion VND (20.5%), and equity increased to approximately
4000 billion VND (24.5%).

SABECO's after-tax profit increased markedly in 2019 while this was a year with many obstacles in
business. Compared to the previous year of 2018, profit after tax increased quite high and reached 5,370
billion VND. According to the statistics table, after tax profit of SABECO has grown steadily from 2013 to
2017. Only in 2018, there was a slight decrease in profit. However, the number has improved in 2019,
which shows that SABECO has come up with reasonable strategies to make revenue being raised and
stable.

1.6. Research and Development

SABECO focuses on investing in research and development of new products and applying
advanced technology to diversify product portfolio, improve product quality and reduce
production costs.
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 The factory's production processes always ensure health, environmental and sustainable
development. (Annual report, 2019)

Picture 7: SABECO's sustainable development strategy focuses on four pillars.

The commitment to sustainable development revolves around four main goals: Consumption,
Conservation, Country and Culture, including social activities, support community assistance and
environmental protection. (Annual report, 2019).
2. The influence of external environment
Compared to 2018, the business situation of SABECO and the companies in the system in 2019
continues to face many difficulties and challenges, and the spread of false information that SABECO is
the Company. Because it was sold to China or the new Saigon Beer brand of China has seriously
affected the reputation and image of SABECO and the Saigon Beer brand - Vietnamese Beer Brand
with heritage over 145 years (Annual report, 2019, p.56)
III. STRENGTHS – WEAKNESSES – OPPORTUNITIES – THREATS ANALYSIS.
1. SWOT ANALYSIS

Figure 4: Beer market shares of enterprises from 2010 to 2019.

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1.1. Strengths of SABECO
+ SABECO is a company with a large market share, accounting for 40% of the domestic beer
market share and is a leading enterprise.
+ Being an enterprise with a prestigious brand name, high quality, diverse designs, stable
products in the market.
+ Extensive brewery system, advanced beer production techniques, to meet the market's
increasing beer consumption demand. Wide distribution system.
+ Staff members are dynamic and enthusiastic at work.
+ Good working environment, high and tempting average salary, attracting many talents in the
future.
+ With 1 master trading company, 10 regional trading companies and more than 145,000
product sales channels spread across 63 provinces in Vietnam and distributed to 38 countries
around the world.
1.2. Weaknesses of SABECO
+ Marketing strategies are not really effective. There should be a team of marketing staff who
are more innovative and working (Despite being the market share leader, Saigon beer is still
considered a mid-tier beer, unlike premium beers are Heineken and Tiger.)
+ The factory system is not uniform in size, technology, and quality (between factories and
branches).
+ Products facing many difficulties due to strong competitors (Heineken and Tiger are top
quality and prestigious brands world of beer).
+ The distribution system is not strong in the North, only concentrating
in the Central and the South.
1.3. Opportunities of SABECO
+ The beer market in Vietnam is growing rapidly. Vietnam ranks first in Southeast Asia, ranked
third in Asia after China and Japan in terms of annual beer consumption.
+ People's lives have been improved, and the trend of alcohol consumption is increasing. Beer
is a safer drink than alcohol and usually has a lower alcohol content.
+ The company owns many valuable properties and plans to combine with the restaurant and
hotel business to provide a new solution in the future distribution of more premium beer
products.
1.4. Threats of SABECO
+ The fierce competition from foreign joint ventures and companies with famous beer brands
in the world.
+ Vietnam's accession to the WTO has opened up opportunities for foreign businesses and at
the same time poses a great threat to domestic firms, especially to the beer market.

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 + The high price of raw materials has affected profitability. The special consumption tax on
canned and bottled beer has decreased but remains high.
+ The tendency to prefer foreign goods over domestic ones makes SABECO's products face
with major of difficulties.

2. Decision–making of SABECO – New solution for the new context

After the analysis of PESTLE and SWOT, it can be seen that SABECO has been significantly
affected its sales and marketing activities after the government has enacted policies to penalize
road users with alcohol content. in blood.
SABIBECO is a beer industry associate of SABEC.
The solution proposed by the general assembly is to produce non-alcoholic beer.
In mid-January 2020, the Saigon - Binh Tay Beer Group Joint Stock Company, a unit in which
SABECO owns 21.8% of the shares and 22.18% of the voting rights, has produced SAGOTA non-
alcoholic beer. In 2012, the Vietnam Beer market welcomed a brand new beer brand to Beer
village with a very new name: SAGOTA. In fact, SAGOTA beer did not hold many customers in the
first days of its launch. However, this beer gradually became popular as the demand for beer of
women and young people is increasing. After only 2 years, SAGOTA quickly covered all three
regions and affirmed its brand when it was chosen by the Vietnam Tourism Association to be the
beer of Vietnam Tourism. This is a good signal for both SABIBECO and SABECO to become a
leading enterprise. This stems from the fact that SABECO has set a target of producing 1 billion
liters of beer by 2025.
SAGOTA has 6 beer lines including SAGOTA Light, SAGOTA Gold, SAGOTA Premium, Non-
alcoholic SAGOTA, SAGOTA Lager, and SAGOTA Pure, 3 out of these 6 beers are recognized as
the world's delicious beer when they all won the Grand Prize at World Beer. Awards: Gold
SAGOTA Lager WBA 2017, SAGOTA Copper WBA 2018, and SAGOTA Pure WBA 2019.
a) Strengths of new decision
This is a good solution that solves legal problems, protects consumers, and minimizes
traffic accidents.
The effectiveness of the solution is obvious with both certificates and awards.
b) Weaknesses of new decision
Marketing strategy is still weak, not strong enough to advertise the product, making
people not aware of this product.
c) Opportunities of new decision
New products will be recommended by the government and consumers are more likely
to use new ones.
As a new strategy, many investors will pay attention.
d) Threats of new decision

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 Products will face other non-alcoholic brewers like HEINEKEN. It will be a big challenge
when HEINEKEN non-alcoholic beer is a brand from abroad and has been loved by many
people.

• Based on the general analysis above, the table below will suggest some solutions for the
company.

SO WO

• Create new products to meet the • Expanding market share in the

needs of customers.
• Focus on consumers in the age group
where alcohol is allowed.
• Promote production to dominate the
domestic market and expand foreign
markets.
• Combined with restaurant, hotel, and
bar business to have a stable product
consumption place.
North.
• Focus on the development of beer
products.
• Increase production efficiency to
save costs.
• Producing more high-end products.
• Partnering with major partners to
leverage advanced technology and
management.

ST WT

• Reasonable price adjustment, • Consistency and focus on currently

attracting customers with attached
services.
• Take advantage of the reputation and
policies of Vietnamese people to use
Vietnamese goods to increase
consumption.
• Enhance brand reputation.
dominated market areas. Stop
expanding into new markets.
• Focusing on investment and
production in alcohol products.
• Train and recruit staff with high
technical and managerial
qualifications, improve the
company's autonomy.

IV. LESSON FROM EXPERIENCE OF CURRENT COMPETITOR

With a potential market in the development of the beer-alcohol-beverage industry, HEINEKEN is a
familiar name in the Vietnamese market with market share just behind SABECO about 7%. In
recognition of the growth opportunities, HEINEKEN also has the advantages and disadvantages
analyzed below.
1. HEINEKEN’S PROFILES (HEINEKEN, About us, 2020)
HEINEKEN Vietnam Limited Liability Company is a member of the HEINEKEN Group, a factory
with the most presence in many countries in the world. With a history of more than 150 years,

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 produces and distributes over 300 brands of beer and fermented apple juice in more than 190
countries.
Founded in 1991, HENIEKEN Vietnam has so far operated 6 breweries and 9 commercial offices
spread across Vietnam.
In 2017 and 2018, HEINEKEN Vietnam was honored as Vietnam's Most Sustainable
Manufacturing Enterprise by the Vietnam Chamber of Commerce and Industry (VCCI) under the
Assessment and Ranking of Sustainable Enterprises in Vietnam (CSI).
2. Analysis the solution to both companies.
With recommendations from experts on the harmful effects of alcoholic beverages on health,
the brewing market faces even more difficulties. Along with that are the government's policies
on preventing traffic accidents caused by alcohol with stronger sanctions such as Decree
100/2019 / ND-CP. These influences create even more challenges for the beer market in
Vietnam.
2.1. Advantages of HEINEKEN
With limited government policies, people are more cautious about consuming alcoholic
beverages, especially beer. Recognizing this limitation, HEINEKEN has launched a new non-
alcoholic beer product to the market. Non-alcoholic beer products are strongly welcomed by
consumers when people no longer worry about the harmful effects of alcohol and the
dangers of participating in traffic (Quang Dinh, 2020). In addition to launching new products,
HEINEKEN also focuses on Marketing to promote the brand widely to Vietnamese people.
As a beer brand from abroad, HEINEKEN is considered a premium beer brand. Along with
good quality beer and foreign brands, HEINEKEN gradually gained the hearts of consumers.
As a result, after only 9 years from 2010 to 2019, the beer market share was from 20% to
34%.
2.2. Disadvantages of HEINEKEN
Along with the campaign "Vietnamese people use Vietnamese goods" of the Ministry of
Industry and Trade, Vietnamese people tend to use more Vietnamese goods instead of
expensive foreign goods. This is a dangerous sign for HEINEKEN when beer prices are still
high compared to Saigon beer.
3. Lesson for SABECO
Launching non-alcoholic beer is a typical strategy of HEINEKEN while SABECO still does not have
a single non-alcoholic product. HEINEKEN gradually wants to dominate the Vietnamese beer
market, replacing SABECO's leading position. This is a competitive move that SABECO needs to
act on in response. With the advantage of Vietnamese products and Vietnamese quality,
SABECO still has an advantage in this market and needs to come up with new strategies to make
a difference.

D.CONCLUSION

17
 It can be seen that most businesses in the world in general and businesses in Vietnam in particular are
affected by economic difficulties because of the spread of the COVID-19 epidemic and the policies that
government set out. Porter's five forces and PESTLE analysis shows how SABECO's strengths and weaknesses
and the external environment have affected the beer industry's production activities. SWOT analysis
identifies the shortcomings of the company in order to propose the best business strategies to strongly
develop the business and make the business become a leader in the beer industry.

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