ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 32: Business Strategy (574)

Submission date 17/08/2021 Date received (1st submission) 17/08/2021

Re-submission date Date received (2nd submission)

Student name Ha Tran Doan Thuc Student ID GBD201438

Class GBD0905 Assessor name Nguyen Huu Nam Phuc

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 Table of Contents
PART I. INTRODUCTION.................................................................................................. 1

PART II. REPORT ............................................................................................................. 2

I. STRATEGIC CAPABILITIES OF VINHOMES ...................................................................... 2

1.1. Theory of strategic capabilities .............................................................................. 2
1.2. Theory of Benchmarking and Value Chain ............................................................. 3
1.3. Applying value chain analysis Vinhomes to indentify the resources &
competences .................................................................................................................... 5
II. VRIN/VRIO FRAMEWORK ............................................................................................15
2.1. Theory of VRIN/VRIO framework..........................................................................15
2.2. Vinhomes VRIO/VRIN Framework ........................................................................16
III. STRENGTHS AND WEAKNESSES OF VINHOMES .......................................................19
3.1. Strengths...............................................................................................................19
3.2. Weaknesses ..........................................................................................................20

PART III. CONCLUSION ................................................................................................. 21

PART IV. REFERENCES .................................................................................................. 21

PART I. INTRODUCTION
In assignment 1, researcher analysised about the external of business, Vinhomes particularly, and an internal
analysis should be also conducted to develop the organizaiton in the most effective way. Therefore, researcher
will use SWOT, Value Chain, VRIO and Benchmarking model to study the strategic capabilities of Vinhomes in
assignment 2.

Figure 1. Logo Vinhomes

It can be seen that Vinhomes is the number 1 real estate brand in Vietnma, operating in the field of
development, transfer, and operation of mixed-use residential real estate in the mid and high-end segments.
Vinhomes’s projects all have prime locations in key cities and provinces across the country. Toward Vinhomes,
pioneering to bring an ideal living experience in urban areas, featuring professional planned residential areas in
harmony with nature, aligning utility services and a green environment, forrming a new lifestyle for the
Vietnamese people. In 2022, the company is developing large-scale complex urban projects, synchronously
developed infrastructure with a variety of utilities and services, smart technology application, development
Maximize the advantages of the Vingorup ecosystem. As a result, Vinhomes is considered a community builder,
not only providing the market with high-class real estate products but also providing customers with a quality,

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civilized, green, clean and modern pipe environment. contribute significantly to changing the face of Vietnam's
cities (Vinhomes Annual Report, 2022).

PART II. REPORT

I. STRATEGIC CAPABILITIES OF VINHOMES
1.1. Theory of strategic capabilities
According to Teece (2019), businesses use tactics that are based on deliberate strategy to compete for
customers, market share, and revenue. The leadership of a company is responsible for formulating and putting
strategy into action. However, not all businesses have the same advantages when it comes to developing and
implementing strategy. A company's strategic capability is its capacity to use all of its skills, resources, and
capabilities to gain a competitive advantage and, as a result, to survive and increase in value over time. While a
firm's strategy are taken into account, its resources, market position, and assets are also taken into account to
forecast how well the company will be able to carry out its objectives in the future. There is no method or
standard metric for identifying or quantifying strategic capability. In a free market, a company's strategic talents
are a key factor in its ability to remain profitable and expand despite the presence of rivals. Various entities are
making efforts to evaluate and monitor strategic capability. Investors that want to invest in businesses with a
strong chance of growth and success are among them. Employees value strategic competencies because they
help identify both businesses that are stable and unlikely to collapse and those that require cost-cutting
measures like layoffs. In order to better understand the markets in which they operate, business leaders track
the statistic for both their own companies and competitors. Finally, because it affects how financial analysts and
government regulatory agencies evaluate and oversee organizations, strategic competencies are important to
both group (Teece, 2019).
In addition, the strategic competency of a corporation may be impacted by many different things. A company's
ability to create and carry out strategy is influenced by its cash, property, and patent holdings. Since employee
abilities and organizational procedures all contribute to a company's competitiveness, human resources and
organizational structure are also essential considerations. Pricing may also be a tactic, with businesses that can
control prices to maximize profits likely to have a competitive advantage over rivals that find it difficult to set
profitable prices for their items. The process of evaluating strategic capacity is challenging in part because there
are so many factors to take into account. A technique for evaluating a company's strategic potential is a
strategic value analysis. It determines whether firms in a certain industry have strategic skills over others using

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data from annual reports, public surveys, and market trends. As businesses grow and acquire new resources,
analysts must often do fresh strategic value analyses (Teece, 2019).

1.2. Theory of Benchmarking and Value Chain

The internal environment of a company has an impact on how well a firm operates as well. It is crucial to
understand the internal environment of businesses as a result. To examine the tactics used by the business
based on their internal environment, a variety of management techniques might be used. Additionally,
benchmarking tactics, value chain analysis, and the VRIN/VRIO framework might all be used to assess how the
internal environment affects corporate operations.

a. Definition of Benchmarking
According to Moriarty (2011), Benchmarking is the comparison of products, services, and procedures across
divisions within an organization that carry out comparable tasks, between competing organizations in the same
sector, or between businesses. Other industries use techniques that are comparable to these. Benchmarking is
used to identify the methods and practices that help firms perform at higher levels, as well as how and why they
do so. Benchmarking identifies the company's comparable expenses and suggests opportunities for
improvement. A strategic advantage can be gained by concentrating on the skills required to advance to higher
levels of performance. Through organizational learning, the creation of fresh ideas, and the sharing of
knowledge, benchmarking is used to spark innovation in businesses. Engineering is where benchmarking first
emerged, where it is applied to enhance processes. In addition, according to Rolstadas (2013), organizations do
benchmarking studies that concentrate on the effectiveness of strategic management, competitive strategy,
financial management, goods, services, core business processes, and functional activities. Regression analysis
and data envelope analysis are the two most widely utilized analytical techniques in metric benchmarking.
According to Johnson et al., (2014), the influence that these comparisons may have on examining capabilities
underlying performance, rather than the precise "mechanics" of comparison, is what makes benchmarking so
important. Therefore, there are essentially two methods for benchmarking:
- Industry/Sector Benchmarking – using a set of performance indicators to compare an organization's
performance to that of other businesses operating in the same sector or industry.
- Best-in-class Benchmarking – assessing an organization's performance or capabilities in comparison to
what is considered to be "best in class" performance, even in a totally different sector.

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 b. Definition of Value Chain
According to Kumar and Rajeev (2016), Michael Porter was the first person who introduced the term “Value
Chain” in his book Competitive advantage: Creating and Sustaining Superior Performance. According to the
author, a company's value-adding operations are represented by its "value chain," which is based on its price
strategy and cost structure. It is essential for competitors that participate in the framework that each
organization be able to comprehend both its own capabilities and the wants of the consumer. The next
processes include evaluating the possibility for value addition via cost advantage or differentiation. Last but not
least, it is crucial for the analyst to identify the strategies that center on the initiatives that would help the
business achieve long-term competitive advantages. The efficiency with which a company manages the
numerous value chain operations determines its profitability. The price that customers are willing to pay for the
company's goods and services is higher than the activities along the value chain's relative cost. Value chains
include all activities and services necessary to bring a good or service from its inception to sale in its target
market, whether local, national, international, or global. The value chain consists of the following parties:
producers, input suppliers, operators, processors, retailers, and customers. A variety of technical, commercial,
and financial service providers assist them (Kumar & Rajeev, 2016).
“A Value chain Analysis is an alliance of enterprises collaborating vertical to achieve a more rewarding position
in the market.” (Kumar & Rajeev, 2016),
The value chain primarily focuses on the market collaboration strategy, emphasizing the connections between
the activities of manufacturing, marketing, etc., of the goods and services in a practical and successful way. At
every step of the goods' development, organizations should connect one end of the main activities to the other
end of the complementary activities in order to increase value (Kumar & Rajeev, 2016).
The value chain structure is composed of five different components: the end market, the business and enabling
environment, the vertical links, the supporting market, and the horizontal linkages. End markets play a distinct
function in the value chain structure and reflect the final consumer of goods or services rather than physical
marketplaces. It is crucial to any company's success in setting the standards, quantities, costs, and timeliness of
their products and services. It also helps to generate demand for the goods. At the local, national, and
international levels, a variety of policies, trade agreements, rules and regulations, and limitations on
infrastructure that impose obstacles can be overcome with the availability of those resources (Kumar & Rajeev,
2016).

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 Figure 2. Michael Porter's Value Chain Model

1.3. Applying value chain analysis Vinhomes to indentify the resources & competences
1.3.1. Primary activities
According to Barnes (2001), the fundamental tasks required in competing in every industry fall into five general
categories. Each category is subdivided into a variety of unique tasks depending on the sector and business
strategy, including:
• Inbound Logistics:
Inbound Logistics associated with receiving, storing, and disseminating inputs to the products, such as material
handling, warehousing, inventory control, vehicle scheduling, and returns to suppliers (Barnes, 2001).

About the raw material of Vinhomes, as one of the most valuable real estate brand in 2022, Vinhomes and its
high-class products are always the first choice of customers. For projects in Vinhomes such as Vinhomes
Metropolis, Vinhomes also uses 2 unique materials to put into construction. Firstly, this is Low-E glass, which is
coated with a special compound that helps the glass to have slow heat emission, reduce dispersion, slow heat
absorption and slow down the transmission process. heat but still ensure the brightness in the room
(Vietnamplus, 2022). Secondly, the type of material used in the project is the ETFE material that replaces the
glass installed on the roof of the indoor swimming pool. Currently, ETFE is applied in many famous projects such
as Beijing Aquatics Center for the 2008 Olympic Games (China), and the Eden eco-zone in Cowan (UK)...

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Compared with traditional glass materials, ETFE only accounts for 1/100 of the weight, transmitting a lot of light,
with high aesthetics. Always using the most advanced construction technologies and exceeding the committed
schedule, Vinhomes, which is typically the "architectural masterpiece" of Metropolis is contributing part to
building an increasingly modern and artistic appearance. In addition, Vinhomes apartments also choose quality
imported materials such as German-made laminate flooring - Krono Orginal, Viglacera ceramic tiles, and aerated
concrete,... (PhanGiaGroup, 2022)

Regarding inventories in the real estate market, Vinhomes (HoSE: VHM) was the champion in inventory with
VND 60,297 billion in 3 years ago; nowadays, it is Novaland (HoSE: NVL) with VND 109,767 billion. Novaland's
inventory value increased by 92% compared to 2019 and accounted for 54% of total assets. However, Vinhome
announced that its short-term assets reached VND 94,437 billion on December 31, 2021, down 7.6% compared
to the end of 2020, thanks to a sharp decrease of VND 14,405 billion in inventory due to the year The company
has handed over to home buyers, reducing VND 4,351 billion from short-term loan recovery (Thanh, 2022).
However, Vinhomes always have a provision for obsolete inventories. Based on the appropriate evidence of
impairment that was available at the separate balance sheet date, an inventories provision is made for the
estimated loss resulting from the diminution, damage, obsolescence, etc. of the value of raw materials, finished
goods, and other inventories owned by the Company. The cost of goods sold account on the separate income
statement is where changes in the provision balance are reported (Vinhomes Joint Stock Company, 2022).

• Operations
Operations associated with transforming inputs into the final product form, such as machining, packaging,
assembly, equipment maintenance, testing, printing, and facility operations (Barnes, 2001).

About Vinhomes, in order to make the Vinhomes project successful, there are 3 "golden" factors: unique
location - synchronous planning - high-class utility landscape, the role of Vinhomes management is also
extremely important. Buildings with 20 or more apartments are required to set up a management board to
make the management and operation process run more smoothly while ensuring the interests of residents. For
Vinhomes, synchronous and professional operating standards, strict working standards, and thorough training
are common features of the management board of Vinhomes urban areas in order to create a consistent, ability
to fully meet customer requirements (Vinhomes News, 2022).

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In addition, for the operation of Vinhomes, the construction quality of a real estate project can degrade after
only 5 to 8 years of operation if it is not maintained and repaired regularly. Therefore, having a competent,
sophisticated, and experienced management team is the key point to help the project ensure quality and
sustainably accompany residents. At Vinhomes, the project management team always closely monitors issues
related to infrastructure, and construction quality and thereby makes appropriate maintenance decisions. As a
result, the occurrence of material problems at Vinhomes projects is extremely rare (Vinhomes News, 2022).
• Outbound Logistics
Outbound Logistics associated with collecting, storing, and physically distributing the product to buyers, such as
finished goods warehousing, material handling, delivery vehicle operations, order processing, and scheduling
(Barnes, 2001).

After the projects are completed, Vinhomes and the brokers trade their products to customers in the segments
that the company is targeting. For customers, one of the unique and attractive things by Vinhomes products
include projects Vinhomes Smart City, Vinhomes Ocean Park, Vinhomes Wonder Park, Vinhomes Sky Park,
Vinhomes West Point, Vinhomes Dream City Hung Yen, Vinhomes Green Bay, etc., are all product lines
belonging to expensive geographical locations, all possessing the appearance of a miniature city with the
location located in golden lands, the ability to connect easily. Easy access to arterial roads, and convenient life
from inside to outside areas are diverse (nhatoday, 2021). For purchase and sale, customers only need to
arrange an initial budget of 15% of the published price to be able to own apartments in Vinhomes Smart City
and Vinhomes Ocean Park (conditional application program). The remaining value will be supported by the
investor and the bank with 0% interest. With this policy, customers only need an accumulation of VND 222
million, and at the same time have up to 3 years of leisure without worrying about paying interest (Agency of
the Government Inspector Vietnam, 2021).

However, Vinhomes Joint Stock Company (VHM) has just announced its financial report for the second quarter
of 2022 with revenue and profit targets falling sharply over the same period. In particular, the reason given by
the company's leaders is that most of the revenue from real estate sales contracts in the period has not been
recorded because it is not until the house handover period. Along with the decline in revenue, Vinhomes' gross
profit also decreased by more than 10 times, reaching only 1,391 billion. With this size of property, Vinhomes is
still the largest real estate developer in the domestic market (VN Direct, 2022).

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 • Marketing & Sales
Marketing & Sales associated with providing a means by which buyers can purchase the product and including
them to do so, such as advertising, promotion, sales forces, quoting, channel selection, channel relations, and
pricing (Barnes, 2001).
About Vinhomes, the company has cooperated with 5 banks, including Vietcombank, VietinBank, Techcombank,
MB, VPBank to launch a special promotion program "Only from 250 million, Win Vinhomes brand house" for
customers in the northern provinces and cities when buying Houses in 2 big projects: Vinhomes Ocean Park and
Vinhomes Smart City (Hanoi). Not only providing superior home buying and investment solutions, Vinhomes
also offers a lucky draw program with a total value of more than over 2 billion. The program "From only 250
million, Win Vinhomes brand house" with the combination of Vinhomes - the number 1 real estate brand in
Vietnam and the top 5 prestigious banks in Vietnam to bring to customers in Vietnam. Northern provinces and
cities such as Hai Phong, Quang Ninh, Hung Yen, Bac Giang, Hai Duong... the privilege of owning a class
apartment in the capital (baotintuc, 2021).

Figure 3. Vinhomes launched a special offer for customers in the North (Sources: baotintuc.vn)

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Accordingly, customers wishing to buy a house only need an initial capital of VND 250 million to immediately
own high-class apartments in two mega-urban areas Vinhomes Ocean Park and Vinhomes Smart City. In
particular, customers who buy houses under the preferential program "Only from 250 million, Win a Vinhomes
brand house" will enjoy special policies such as borrowing up to 80-85% of the apartment value, supporting 0%
interest rate up to 0%. Up to 28 months, vouchers to buy VinFast cars worth up to 200 million VND and many
other outstanding incentives (baotintuc, 2021).

Figure 4. Vinhomes launched a special offer for customers (Sources: baotintuc.vn)

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In addition to the opportunity to own a luxury apartment with a cost of only 250 million VND,
Vinhomes also offers customers a big lucky draw program with a total prize value of more than 2 billion
VND. The luckiest customer will become the owner of a high-end VinFast Lux A2.0 car worth more than
1 billion VND, along with hundreds of other extremely attractive prizes such as VinFast Klara S
motorbike, Vinpearl resort voucher, etc,. On the other hand, Vinhomes offers attractive advertising
strategies that not only attract customers but also enhance Vinhomes' brand image (baotintuc, 2021).
• Services
Services associated with providing service to enhance or maintain the value of the product, such as installation,
repair, training, parts supply, and product adjustment (Barnes, 2001)
According to VinhomesCoLoa (2021), the company will provide several services to go along with each of
Vinhomes' many products. It is a typical idea among many consumers who reside in other investors' projects on
the market that "It would be nice to purchase a house, if you have any problem, you have to address it
yourself." However, Vinhomes distinguishes itself from its competitors by "Always listening to consumers'
comments, taking care of them after buying items, and ensuring their safety and pleasure". Many consumers
have recommended friends and family to continue buying and owning Vinhomes items because of the benefits
of their services. Vinhomes is prepared for its team to quickly take care of, guide, and handle the following
issues instead of problems that no one can solve:
+ Always respond to customer inquiries as quickly as possible
+ Always ensure the safety of residents
+ Ready to assist in handling all errors that may arise while residing at the project
Therefore, Vinhomes is the innovator in bringing a refined and civilized lifestyle that allows clients to experience
the benefits of high-quality care services (VinhomesCoLoa, 2021).

1.3.2. Support activities

According to Barnes (2001), there are four general categories that may be used to classify support value
activities involved in competing in any business. Each type of support activities can be further broken down into
a variety of unique value activities that are unique to a particular sector, just like main activities. For instance,
discrete tasks in technology development can include technology selection, field testing, process engineering,
component design, and feature design. Similar to this, procurement may be broken down into tasks like vetting
potential new suppliers, buying various types of inputs, and continuing to track supplier performance.

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 • Human Resource Management
According to Barnes (2001), human Resource Management consists of activities involved in the recruiting,
hiring, training, development, and compensation of all types of personnel. Human resource management
supports both individual primary and support activities (e.g., hiring of engineers) and the entire value chain
(e.g., labor negotiations). Human resource management activities occcur in different parts of a firm, as do other
support activities, and the dispersion of these activities can lead to inconsistent policies. Moreover, the
cumulative costs of human resource management costs, such as salary compared to the cost of recruiting and
training due to turnover.

According to Vinhomes Annual Report (2021), the number of the Company’s employees as at 30 June 2022 is
8,912 employees. With Vinhome, the employees are the main internal stakeholders. Employees have a critical
role in the organization's policies and organizaitons, and have a great deal of interest in the business and its
resources. Controlled organizations that include employee perspectives, concerns, and values while shaping the
company's strategy, vision, and objectives. The success of Vinhomes is greatly influenced by its personnel. In
addition, human activity is also one of the most precious and crucial resources for Vinhomes (Vingroup, 2022).

In addition, at Vingroup, each specific position will have its own mandatory standards, but all members meet
the requirements: have professional qualifications, determination to develop career, and sense of responsibility.
and high morale. Managers at the Group are those who fully promote the core values of Vingroup: "Trust - Mind
- Tri - Toc - Tinh - Nhan", demonstrating enthusiasm, steadfast bravery, dare to think, dare to do, dare to take
responsibility, have good organizational and management capacity. For senior management positions, the
recruitment requirements are quite strict with mandatory standards of work experience, logical thinking ability,
quick judgment, effective analysis and problem solving. Those members have formed a strong team with the
same goal of common development of the Group (Vingroup, 2022).

Vingroup's employees always take the initiative and creativity in work under the leadership of a team of
sensitive leaders, capable of both flexible and methodical corporate governance, creating a prestige and class of
Vingroup in the market. Under the leadership of the Group, Vingroup people always carry their own culture
with their own identity. That culture is imbued with humanity, friendliness, and discipline; was built and
nurtured by the wisdom and constant creativity of the staff. After a long journey of growth and development, it
is the people of Vingroup who have created good values, contributing to the success of the Group today
(Vingroup, 2022).
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According to Chi (2022), Vinhomes's biggest recruitment congress of the year seeks many employees, especially
senior managers in the real estate industry. On the afternoon of March 5 and March 6, the largest recruitment
congress of Vinhomes in 2022 will be held at Vinpearl Luxury Landmark 81, Ho Chi Minh City. This is the first
major recruitment event of Vinhomes in 2022 with the gathering of 68 agents and candidates who want to
participate in these branded real estate projects (Chi, 2022). In 2021, Vinhomes has made a mark in the real
estate industry with many large projects. Vinhomes products attract the attention of customers. According to a
company representative, more than 10,000 apartments The Rainbow - Vinhomes Grand Park were sold out in
just 17 days. The entire list of The Manhattan luxury villa subdivision sold out in just 8 days. 2,400 apartments in
The Origami subdivision were registered within 3 days in July 2020. Most recently, the entire shopping cart of
The Beverly luxury apartment subdivision was successfully traded when it was just opened for sale (Chi, 2022).

"The above figures are thanks to tens of thousands of business personnel who have accompanied Vinhomes
over the years," said a Vinhomes representative. With a series of large-scale projects about to be launched in
2022 in the Central and Southern regions, the Vinhomes recruitment conference wishes to create more
opportunities for thousands of young people.

• Technology Development
According to Barnes (2001), every value activity embodies technology, be it know-how, procedures, or
technology embodied in process equipment. The array of technologies employed in most firms is very broad,
ranging from those technologies used in preparing documents and transporting goods to those technologies
embodied in the product itself. Moreover, most value activities use a technology that combines a number of
different subtechnologies involving different scientific disciplines. Machining, for example, involves metallurgy,
electronics, and mechanics.

According to VinhomeCitys (2022), Vinhomes introduced virtual tabletop technology. With virtual table
technology, consultants can easily introduce visual information to customers, optimize consulting ability, can
easily view house layout, interior perspective on April 26... Previously, customers I have to go to the project to
see the sand table, but I can't watch it at home. However, Vinhomes has brought new technology to customers.
This is a new technology that will help sales staff visually introduce to customers, optimize consulting ability, can
easily view house layout, interior perspective, etc., (VinhomeCitys, 2022)

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 Figure 5. Vinhomes' virtual table (Sources: vinhomecitys.com)

Vinhomes' virtual table has two versions, customers can view online on a web browser or view on a large screen
when visiting the project. Vinhomes' virtual desk can also bring customers into each apartment with information
about direction, area, house model, roof, balcony as well as surrounding landscape. When going into the details
of the apartment, customers can also see the interior images of each space, each floor, each room. Customers
can even see the view from the balcony and the layout of each house. Together with Vinhomes Experience
Center - Vinhomes Real Estate Experience Center, virtual desks are an effective tool to support customer
consultation at the best Vinhomes projects. Vinhomes's virtual desk is currently being implemented at the
Vinhomes Ocean Park The Empire project and continues to be deployed in the next large-scale projects of
Vinhomes (VinhomeCitys, 2022).
• Procurement
According to Barnes (2001), procurement refers to the function of purchasing inputs used in the firm’s value
chain, not to the purchased inputs themselves. Purchased inputs include raw materials, suppliers, and other
consumable items as well as assets such as machinery, laboratory equipment, office equipment, and buldings.

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Though purchased inputs are commonly associated with primary activities, purchased inputs are present in
every value activity including support activities.

For Vinhomes, the input materials are selected Vinhomes carefully, and imported from abroad such as
Germany, Italy, USA, etc., In addition, one of the new strategic orientations of Vinhomes in the current period.
The next time is to focus on developing social housing projects with selling prices from 300 million to 950 million
VND/unit. Besides, Vinhomes also continues to upgrade and perfect the O2O ecosystem, constantly improve the
quality of life for residents with technology as the core and promote investment promotion in the field of
industrial real estate (Vy, 2022). However, the high price of raw materials inevitably increases the price of all
types of real estate. Vinhomes implements 2 methods of working with suppliers, increasing value by investing in
utilities, adding more for customers. In 2022, the company will mainly launch low-rise products to target
middle-class people with good finance and good credit history with NH. I don't think it will have a big impact on
customers (Vy, 2022).
• Infrastructure
According to Barnes (2001), infrastructure includes many activities such as general management, planning,
finance, accounting, legal and quality management, etc. These activities, unlike other supporting activities, often
support the entire value chain and not just one or several individual activities.

According to Vinhomes Annual Report (2021), despite the difficulties caused by the Covid-19 epidemic to the
whole economy, Vinhomes Joint Stock Company still achieved stable business results in 2021 thanks to its
flexible policy. Actively and promptly adapting to market developments because Vinhomes is always run by
talented leaders, including Mr.Pham Thieu Hoa, Mrs. Nguyen Thu Hang, Mr. Douglas John Farrell,a and a strict
supervisory board, including Mrs. Nguyen Le Van Quynh, Mrs. Pham Ngoc Lan, and Mrs. Le Thi Duyen. According
to Ngan (2022), Mr. Le Tien Cong - General Meeting of Shareholders, chief accountant of Vinhomes, said that
the business will implement many new open projects and this will be the main driving force to ensure the
company's sales target. "We consider the target sales of 120,000 to be feasible, especially after the market's
positive signal when the Vinhomes The Empire project was launched for sale. The demand for the real estate
market is still very large, especially especially with low-rise products", Mr. Cong analyzed. Regarding the coastal
real estate development plan, Mr. Pham Thieu Hoa shared, in addition to the Green Ha Long project in Quang
Ninh, there are also projects in Can Gio, which are all great projects of Vinhomes. Some other projects will be
implemented in Khanh Hoa, Da Nang in the near future. Besides, the Chairman of Vinhomes also shared that in

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the future, industrial park real estate will be a long-term strategic investment of Vinhomes. "In the 10-year plan,
Vinhomes strives to reach 3,000 hectares of industrial zone leased land. Industrial park real estate will go hand
in hand with rental and office real estate and contribute regular revenue to Vinhomes in the future. about 8-
10% in the long term," said Mr. Hoa. This year, Vinhomes sets out a new development strategy direction in the
coming time, which is to focus on developing social housing projects for low-income people in provinces and
cities across the country. From here, Vinhomes officially joins the social housing race with other real estate
developers (Ngan, 2022).

II. VRIN/VRIO FRAMEWORK

2.1. Theory of VRIN/VRIO framework
According to Johnson et al., (2014), The VRIO and VRIN framework might be one of the most useful types of
analytical tools used to evaluate resources and competencies in order to identify the primary source that gives
the firm a competitive advantage. Regardless of whatever phase of the strategic model a firm's resources and
competencies come under, VRIN is utilized as a framework to evaluate them all. VRIN belongs to the internal
analysis stage of these procedures. This abbreviation was created to help managers remember the inquiries to
make while assessing the capabilities and resources of their organizations. The four criteria of VRIN—Value,
Rarity, Inimitable, and Non-Substitutable—put a strong emphasis on each.

Figure 6. The VRIO Framework

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 2.2. Vinhomes VRIO/VRIN Framework
Vinhomes's VRIO/VRIN analysis will look at each of these internal resources, in turn, to see if they create a
sustainable competitive advantage. Vinhomes's VRIO/VRIN analysis also reveals whether these resources can be
upgraded to give the company a competitive advantage at each stage. Finally, the resources examined are
ranked based on whether they provide a long-term competitive advantage, unused competitive advantage,
temporary competitive advantage, or favorable or unfavorable competition. Below is a specific analysis of
Vinhomes's VRIO.
Table 1. Vinhome's VRIO/VRIN

Impact on
Resources or Non –
Valuable Rare Inimitable Competitive
Competences substituability
Advantage
Wide range of
products, in the
Temporarry
most expensive
YES YES YES NO competitive
locations and
advantage
high quality
customer service

Sustainable
Gathering many
YES YES YES YES competitive
talents
advantage

Sustainable
HR culture YES YES YES YES competitive
advantage

Advertising Competitive
YES NO - -
ability parity

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 • Wide range of products with in the most expensive locations and high quality customer services &
Advertising ability

For the diversified products of Vinhomes, Vinhomes creates diverse product lines aimed at different customer
segments and real estate products with world-class standards. Therefore, Vinhomes always focuses on the value
of life and quality for customers more than ever. Vinhomes Quality’s core values are which Vinhome’s
commitment to high quality in its operations is expressed as: "Best in People, Best in Products and Services, Best
in Quality of Life, and Delivering the Best in Society. Moreover, Vinhomes also focuses on "integrity", which lays
the foundation for Vinhome where we strictly respect and comply with the laws and ethical standards, putting
the interests of our customers first. Vinhomes always tends to customer’s value so that Vinhomes’ customers
are satisfied with all of them, from products to service quality. Vinhomes is able to thrive because its services
are consistently valued by clients and offer prospective benefits in the marketplace. In spite of the fact that
these elements are rather uncommon, it is difficult to imitate Vinhomes, for instance Novoland. According to
Novaland (2021) claims that a wide range of items are available from Novaland, including offices, apartments,
garden townhomes, business townhomes, villas, etc. But Vinhomes' products themselves have greater
significance. They all specifically target distinct consumer groups, including young customers, newlyweds or
families with one to two young children, short- and long-term investment groups, as well as overseas
customers, while Novaland does not. Therefore, Vinhomes goods are always able to thrive as long as they are
consistently valued by clients in comparison to other real estate businesses and provide possible competitive
advantages.

Additionally, Vinhomes has always unique marketing and promotion skills. Vinhomes has worked with five
banks to develop marketing plans while also implementing unique reward schemes for clients in cities and
provinces. Media coverage of Vinhomes is thought to be robust. Since the brand's debut, every one of its
projects has garnered a lot of interest and popularity on social networking websites and online publications. As
a result, Vinhomes' marketing strategy calls for all initiatives to concentrate on creating useful content and
engaging on the fanpage. Videos that are only about the project tend to lose viewers' interest faster than
emotive short films do. Customers appreciate the themes "dream of a solid existence" and "enjoyable worth."
This demonstrates once more the shift in consumer perception of real estate products: purchasing a home
involves more than just a place to live; it also involves a place with values like tranquility and enjoyment. These
are the messages Vinhomes wants its clients to understand. The success and importance of marketing strategy

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are also enormous. However, Vinhomes is not alone in using this strategy for marketing and promotion; other
real estate companies have also used it. Therefore, Vinhomes's advertising and marketing capabilities are
competitive parity with competitors in the same industry

According to experts, it is the Vinhomes brand that has been the verification, assurance, and peace of mind for
customers. With a series of high-quality real estate projects, fully legal, owning a golden position in new
downtown areas, always invested in a "terrible" utility ecosystem and paying special attention to security
services. With complete customer care from buying, selling, renting and transferring, Vinhomes has successfully
built an image of a perfect housing ecosystem, complete with amenities (Trieu, 2021). Therefore, imitating
Vinhomes is possible, but not so perfect.

Additionally, it may be claimed that Vinhomes does not match the need for irreplaceability because there are
already a large number of alternative high-quality real estate companies entering the Vietnamese market, many
of which provide both high and affordable prices as benefits. even the populace's budget, etc. It is challenging to
compete on pricing despite Vinhomes' goods consistently touting greater quality. As a result, Vinhomes has
developed a variety of goods for a range of consumer categories, from those with modest to high incomes.
Therefore, the Company has so leveraged cutting-edge technology, created a variety of goods, and enhanced
the quality of its services to differentiate itself from its rivals and preserve its dominant position.

• HR Culture & Gathering many talents

It can be seen that Vingroup's corporate culture is different and rich in humanity. Vingroup is the gathering
place of elite people of the Vietnamese nation and international colleagues - people who have thought and act
in a disciplined way law, talent and bravery, patriotism and national pride, good direction and a spirit of drastic
and thorough work for good purposes. With the spirit of discipline, first of all, is the culture of professionalism
expressed through 6 core values of "Credibility – Integrity – Creativity – Speed – Quality – Compassion". The
culture of high speed, efficiency and discipline has been imbued in every action of the staff, creating a synergy
that has brought Vingroup to a great development in all areas of participation. In particular, to support this, it is
impossible not to mention the talents recruited by Vingroup. To achieve the set goals, Vingroup has been very
strict in applying for jobs through many rounds of interviews and Vingroup's personnel need to ensure the
continuous implementation of talent recruitment forms to select the right ones. , put them in the right
environment and work to be able to maximize their potential. At the same time, Vingroup is ready to screen

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 unsuitable individuals. Therefore, both of these factors of Vinhomes create a sustainable competitive advantage
in the real estate market.

III. STRENGTHS AND WEAKNESSES OF VINHOMES

3.1. Strengths
- It can be seen that Vinhomes always move to build its own sales staff under competent, sophisticated and
experienced management team of the Company competencies to combine with a network of tens of
thousands of external sales associates ➔ service quality will be improved, ensuring uniformity through a team
of internal sales staff who are professionally trained and closely monitored by the Company, helping to make
operations transparent and save cost.
- High quality products and services: Vinhomes products are the result of not only Vietnamese talents but also
the participation of prestigious consultants from abroad, helping Vingroup improve product quality and brand,
especially in the segment. premium products and services. In addition, with the influence and strong financial
resources from the group ➔ Vinhomes has the advantage in acquiring land and building real estate projects in
a short time, creating initiative and capital rotation in investment and business activities.
- Technology developed to outperform competitors: Vinhomes promotes the implementation of the system and
online sales form to supplement the traditional sales form. This platform, in addition to updating projects on
projects, also fully integrates the features of an e-commerce platform, helping buyers make Vinhomes home
purchases completely through the application ➔ interested customers can easily view 3D images of the whole
project as well as each apartment visually on the website or through the mobile application, from which it is
easy to consider and make decisions. Vinhomes management said that this is an inevitable step in the industrial
era 4.0 ➔ helps Vinhomes diversify its approach to a wider range of customers, especially young technology
enthusiasts and foreigners who transact remotely are the main target customers of the mid-end segment. Not
only in sales, technology has a far-reaching impact on Vinhomes as it helps develop products and optimize
customer experiences.
- Service is different from competitors: Vinhomes focuses on improving service thinking in serving customers in
2022. Quality customer service is one of the leading factors that help affirm the company's brand reputation. In
addition to the standardized and regularly improved customer care process, Vinhomes' staff, especially those
directly serving customers, are regularly trained to improve their skills as well as improve their customer service.
maintain a spirit of unsurpassed service. Accordingly, the company not only professionally meets the needs and
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 aspirations of customers, but all employees also have to actively find ways to bring customers more values
beyond normal standards. With the mindset of "service from the heart", Vinhomes strives to conquer customers
with an absolute satisfaction rate in 2022.
- Strong brand image thanks to Marketing strategy: The great success of Vinhomes Marketing strategy is the
brand element. Vingroup investors create trust for investors and users. Factors that create the level of the
project. It is a project belonging to an investor with a great reputation and reputation. Therefore, Vinhomes's
strategy is to launch the market in association with the Vingroup brand.
- Buyers with high income and wealth increase rapidly. They are the ones with great demand for premium
products.

3.2. Weaknesses
Risks during project construction: although VHM's ability to manage multiple projects has been proven by
existing projects, maintaining continuous construction and service quality is a challenge for any investor any
investor. Foreign project development companies are also introducing new development concepts that change
buyers' views on the value and quality of a premium product. This means that VHM must not only minimize
construction errors and ensure quality, but also improve products to protect its market share from foreign
investors.

Long-term development plan comes with many risks: large sales volume and long-term development plan can
raise skepticism about the possibility of site compensation and project construction due to the close connection.
between government intervention and the real estate market. The recent change in the project licensing
process mentioned in the Investment Strategies 2022 report is proof of this as project developers have to delay
the launch date until they have obtained the license construction permit. In addition, most of the surplus in
Vinhomes' valuation comes from licensed projects, although VHM also has a good legal team and is able to deal
with unpredictable changes in home regulations country.

Actual absorption rate is lower than estimated: VHM may gradually move from HCMC and Hanoi to low-end
markets to diversify and hedge against future market crises. The secondary urban market has a less competitive
environment and VHM has the advantage of having a well-known nationwide brand name so it will be easy to
penetrate this market and take the top position. However, the Company does not have reliable historical data
and market research data on the actual needs of buyers. This can lead to a misjudgment of the absorption rate
of each product. Some of the projects in VHM's plans in these markets are very large and require significant land

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and infrastructure expenditures. This can lead to burying a large amount of capital if the products show low
demand and drag down the company's investment revenue while the assets fail to realize the planned return.

PART III. CONCLUSION

In conclusion, this research looks at how Vinhome's internal environment affects the way it develops its
strategies. Vinhome's capabilities and resources were examined and ranked using internal factors such as
benchmarking and value chain analysis. After that, based on the Value Chain and VRIN assessments, the
company's existing strengths and weaknesses are analyzed in order to discover which variables are more
important to its competitive advantage than those of its rivals. Furthermore, it is clear from the research above
that Vinhome is progressing favorably. By combining external and internal information, this report will act as an
invaluable starting point for strategic recommendations in the report that follows.

PART IV. REFERENCES

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