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COUNTRY &

CHANH THU
COMPANY
ANALYSIS
About Student

Name: Lam Phuong Anh

Student ID: 11190162

Class: International Business Administration EEP 61B


Table of contents
01 02

Macro market Micro market


analysis analysis

03 04
Company competitive
Fit of company
advantage relative to in
offering with market
market competition
01
Macro market
analysis
1.1. PESTLE analysis of United State
Political
National policies are merged with state legislative and executive authority in the US. Despite growing
domestic and foreign terrorism threats, the federal government's response has been excellent. Biden is
anticipated to enact climate-friendly policies and contain the COVID-19 epidemic in 2021.

Economic factor
The US boasts one of the world's most developed economies and powerful industrial and services
industries. The US economy faces challenges connected to diminishing labor productivity in many of
its key areas, thus the government must monitor its productivity and the banking sector to enhance
economic activities.

Social factor
The US provides social security and social insurance for retirees, the disabled, and the unemployed.
Americans live well. Since 2020, COVID-19 has spread primarily in poor communities due to high
medical costs and limited income.
1.1. PESTLE analysis of United State
Technological factor
Innovation and technology propel the US economy. World leader in scientific papers and developing
technology. The US's IPR protection and enforcement system fosters technology commercialization.

Legal factor
The US's robust legal structure and independent judiciary generate a favorable investment climate.
The country ranks 17th out of 180 in the 'Index of Economic Freedom 2020' and has good business,
labor, investment, and financial freedom. Lack of state-wide business law uniformity presents
compliance issues for multi-location enterprises.

Enviromental factor
President Biden pledged $400 billion between 2021–2030 for sustainable energy and innovation.
Biden plans to reduce the US building stock's carbon footprint by 50% by 2035.
1.2. Risk assessment models
As a result, the country risk calculations based on the modified
BERI model showed that the USA has well business environment
among because its country risk index is very high (83.5), so the
country risk level is quite low.
1.3. GNP/ Capita/ Education

GNP GDP per capita Education


• GNP was reported at • US is the world's leading • In the US, 51% of 25-34 year-olds had a
$6,291.385 bn in economy with regard to tertiary qualification in 2021 compared to
June 2022.  GDP ($6,312,119 million; 47% on average across OECD countries. 
• This records an 2022) •  Education funding reached USD 35,347 per
increase from the • US has a quarterly GDP per student at the tertiary level, 12% of which
previous number of capita, of $17,847 which is corresponds to expenditure for R&D. 
$6,162.296 bn for $3421 higher than the same • The U.S. Education Market is propelled by the
March 2022.  quarter last year.  increase in the prevalence of SMART
technology, the rise in consumer income, and
quality spending on education.  
02
Micro market
analysis
2.1. Market size
Fruit and vegetables market:  
• Rising consumer health consciousness, as well as an increased
understanding of the myriad health benefits of fresh and natural produce,
has been driving market expansion. Increased spending and a special
allocation of the household budget dedicated to healthy eating is a
growing trend among U.S. consumers.  

• According to an article published in Value Penguin in December 2021,


on average, people in the U.S. spent USD 270 on fresh fruits and USD
236 on fresh vegetables in 2020. In 2021, the fruit and vegetable market
in the U.S. was valued at over 5.2 billion U.S. dollars.  
2.2. Porter’s five forces model
Bargaining power of Suppliers
● Bargaining power varies in the short-term, depending on weekly supply and
demand.
● The suppliers’ products are not differentiated, they are just different in the
packaging and flavor.
• There are good substitutes of fruits for what the suppliers provide. The
development of produce and vegetable production in Central and South
America has raised a threat to bargaining power of suppliers.
Bargaining power of Buyers 
• Buyer demand is quite strong in relation to fresh fruits supply. 
• Buyer costs of switching to competing products are low. 
• The industry’s products are undifferentiated.  
• Consumers today are more knowledgeable about the diversity and usage of
fresh produce, with the average fresh produce department in supermarkets
offering over 300 items. 
2.2. Porter’s five forces model
Threat of New entrants 
Incumbents have quite large cost advantages over potential entrants due to: 
• Chanh Thu supplies Europe, Asia, the Middle East, and the US with fruit products.
Potential new market entrants from tropical countries, they can benefit from the
economies of scale at the same extent. 
• High experience-based cost advantages: The quality of the fruit depends a lot on design
innovation and management, which requires a lot of skills and experience. 
• Customers have week brand preferences and loyalty to the fruit's suppliers. 
Threat of Substitutes 
• Consumers have various options and regularly swap within and between product
categories based on the season, which affects availability, look, flavor, and price. 
• Product differentiation and year-round availability of tropical fruits have increased the
number of year-round replacements. 
• Substitutions are influenced by health, purpose, and usage. The economic slump has
temporarily increased replacements between fresh and processed fruits and vegetables. 
2.2. Porter’s five forces model
Industry rivalry 
• Buyer demand is growing fast. The increased spending on fruits and
vegetables to fulfill the daily essential intake of minerals and vitamins is
expected to benefit the market. 

• Buyer costs to switch brands are low 

• The products are weakly differentiated 

• The firms in the industry have high fixed costs and high storage costs.
Standard packing factory including cold storage system, freezing,
packing line.  

• Competitors are numerous and roughly equal size.  


2.3. Competencies needed in local market context
 
• Technological advancement and innovation in the supply chain, from production
to consumption to improve the quality and output. Innovation in packaging
techniques such as modified atmosphere packaging, edible coating, etc., for
maintaining freshness or improving the shelf life of the product. 
• The rising preference for organic food in the U.S, owing increasing awareness
about the harmful effects of pesticides, chemicals, and additives on human health,
and the high per-capita income of consumers. 

• Concentrate on mainstream must-have: Bananas and pineapple are long-time


mainstream tropicals. Mangos and papayas are everyday items. 

• Keep up with the changing customer base in store area. Demographics are
changing fast, and it’s important to have a store strategy and game plan on how to
offer a one-stop-shop experience for customers. 

• Preservation: It’s important to know what products are supposed to look like, such
as not leaving a rambutan that has turned black on display.  
2.4. Competitive strength
 

• Increasing health awareness among the U.S. population, growing


understanding of the benefits of eating healthy food for the mind
and body is also favoring the market growth. They are also
investing in sustainability measures and rebranding to keep up
with evolving consumer trends. 

• Supermarkets and hypermarkets are also opting for an integrated


supply chain. Bigger wholesalers are acting as service providers
to the supermarkets, capitalizing on value-added services such as
packaging and mixing. 

• With the introduction of online grocery shopping, consumers


have found a convenient way to purchase fruits and vegetables,
freshly chopped or processed. 
Company competitive
advantage relative to in
market competition
3.1. Analysis of company competitve advantage
A value proposition helps Chanh Thu businesse identify what sets it apart from competitors. With value chain
analysis, business can take steps to create a competitive advantage, improve efficiency, and increase profit
margins. 
Value chain of Chanh Thu: From managing raw material areas, supplying agricultural materials, from traders
and cooperatives, they share jobs, assigning clear tasks to form a truly sustainable chain.
 Primary activities: 
Inbound logistic: 
• Location of suppliers: In order to sustainably accompany farmers, Chanh Thu buys products from farmers
and cooperatives at a fixed price. Tien Giang, Ben Tre, Dong Thap, Dak Lak, and... 
• Quality control: Chanh Thu has their own quality standards. Chanh Thu farmers and cooperatives must
comply. Each farmer is a connection in ensuring safe products in production linkages. 
Operation: 
• When returning to the company after picking fruit in the growing area - usually cooperatives. Chanh Thu
then brought the fruits to pack, preserve, and irradiate. The company inspected drug residues at the
appropriate authorities to assure shipping safety. 
• Chanh Thu has two packaging factories that fulfill HACCP and GlobalGAP requirements, as well as cold
storage and freezing systems that meet international standards. 
• The company's transportation system is complete so products may be harvested and delivered fast. 
3.1. Analysis of company competitve advantage
Outbound logistics: 
• Chanh Thu sells bulk to reduce business risks. When they wish to sell to supermarkets and large
retailers. 
• Long-distance transportation is easily damaged and expensive. Low transportation and
irradiation expenses make mangoes from Mexico/Guatemala and other nations affordable. 
Sales & Marketing: 
• Direct export is mainly used. Through Vietnamese and international agricultural shows, the
company reaches foreign customers. The company advertises its products in newspapers and
online. 
• Finding, retaining, and developing the market are crucial to them. 
• Chanh Thu recognized another essential tactic in the US: don't sell cheap fruit; instead, provide
quality and service. 
Services: 
• Globalgap-certified fruits have a 30-day shelf life and a 24-hour cold storage limit. Cold storage
is 0-15 degrees. 
• When there's an order, the purchasing department notifies the gardener to buy quickly. 
 Support activities: 
Firm infrastructure: 
• Ben Tre, Nha Trang is home to Chanh Thu's factory. The business wants to build a Dak Lak agricultural
processing complex in 2022. Hopefully, the factory will open in July 2023. This third factory targets the US, EU,
Japanese, and Chinese high-end markets. 
Human resources management: 
• Each farmer is a link in generating standard product quality, so they alone must create product value. Each
farmer is told to adjust. 
• Over 60% of employees have college degrees; they make documentation, deliver things, and manage cash flow. 
• The corporation adopts a functional management structure to attain high professional efficiency. 
Technology development: 
• The company established a packing plant that satisfied FSSC, GlobalGAP, VietGAP, and US code standards. The
factory has a freezing, preprocessing, processing, and packing system. 
• Chanh Thu Company is the investor for the 20,000-ton/year project to provide domestic and global markets with
safe fruits. The project would plant, buy, and process high-quality fruits for export. This place will become a
center for high-tech fruit processing and export using a closed chain of cultivation, purchasing, processing,
preservation, export, and trading. 
Procurement: 
• Chanh Thu's growth plan is to buy from farmers and cooperatives at a fixed price, not the market. 
• Chanh Thu has built planting areas in numerous provinces and cities. 
• Traders must be controlled so they buy the proper materials and meet the standards firms promise farmers. 
3.2. Relative competitive advantage compared
with competitors
• Chanh Thu Company has constantly improved as well as applied GlobalGAP
standards for the production and export packaging model to ensure stable product
quality, improve export output and gradually eliminate small production status,
uneven fruit quality.  

• Chanh Thu's fruit products are highly appreciated by customers for their quality.
The output of fruits purchased and packed cannot keep up with export. 

• Over the years, Chanh Thu company has always prioritized cooperation with
farmers to build planting areas and material areas that meet export standards to
fastidious markets and gradually expand. 

• The company went into operation in the direction of clean and safe production,
meeting the growing needs of consumers globally, especially in fastidious
markets such as the US, UK, France, Germany, Australia, and European and
Middle Eastern countries.  
Fit of company
offering with market
4.1. Market attractiveness
 
in the light of:
 Company objectives 
• As one of Vietnam's top agricultural import markets, the US is the promised land for Vietnamese exporters. 
• Chanh Thu aims to re-evaluate market demand and customer tastes after 2 years of COVID-19. Find and
expand the customer network in the US to determine a long-term strategy in this industry. 
• US and EU are good for branding and customer trust. When Vietnamese agricultural products obtain US and
EU passports, exporting to foreign markets will be easy. This plan is for branding, not money. 
 Company experiences 
• Chanh Thu exports mangoes and lychees to the US and Japan. Chanh Thu exports fruit to 12 nations,
including the US. In June 2020, the US welcomed its first frozen durian export. 
• The corporation invested in dried and frozen fruits after studying foreign markets and consumer trends.
Where durian is frozen. 
• The company has created a development strategy in the US and wants to build more factories to develop
deep-processed products, expand the production-consumption chain, and partner with farmers to build
specialized cultivation zones that fulfill VietGAP, GlobalGAP, and American regulations. 
4.1. Market attractiveness in the light of:
 
 Company resources
• With more than 25 years of expertise, Chanh Thu has a cumulative reservoir of experience, proper policies,
planning, and production organization, and products that meet quality criteria for finicky markets.
• Chanh Thu fosters and maintains relationships with scientists and farmers, asking them to advise, oversee,
and guide gardeners in specialized farming areas in the care and harvesting process.
• The company has built a cold storage system to preserve items and a transportation system to harvest and
distribute products fast.
• Chanh Thu owns over 1000 hectares of material areas that fulfill US, EU, Australia, New Zealand, and
GlobalGAP requirements. To ensure a supply of quality products, the company promotes consumer ties with
other regions.
4.2. Challenges the company might face
 
• The corporation will face severe competition from Thailand or
China and considerable payment risk in the US. Agricultural
exporters to the US prefer postpaid payment. In this sector,
enterprises still struggle to deposit goods. 

• American production is hard. US Department of Agriculture


rules such as pesticide and pesticide residue control; restricted
active substances; active compounds must be registered and
utilized in the correct amount. 

• Before items may be imported, many trade laws and


documentation must be handled. 

• Durability is a major issue for importers of fresh vegetables.


Fresh fruits and vegetables are perishable and deteriorate
quickly after being picked. 
Recommendations
the feasibility of
the launch
• With the current potential and experience, Chanh Thu is fully capable of
expanding the export market in the US even more in the future. That comes
from surveying the market, capturing the competitive advantage of the product
and building a competitive strategy in the market. 
• Chanh Thu Fruit Import Export Co., Ltd has really become a prestigious and
leading address in the field of fruit import and export business.  
• Chanh Thu Company has constantly improved the quality of products as well
as applied GlobalGAP standards for the model of production and export
packaging to ensure stable product quality, increase export output.  
• Over the years, businesses have always prioritized cooperation with farmers to
build raw material areas that meet export standards.  
• The company convinces farmers and cooperatives with lessons on agricultural
product rescue to build their confidence in finding the true values ​of
Vietnamese agricultural products together build trust in the market. 
REFERENCES
1. Marketline (2021) The United States In-depth PESTLE insights. Available from:
https://guides.ucf.edu/ld.php?content_id=63823411 
2. Anne-Marie Roerink, President, 210 Analytics (August 2022), Volume Pressure Sharpens as Produce
Inflation Climbs Higher in August. Availble from:
https://www.freshproduce.com/siteassets/files/reports/retail/iri/ifpa-producesales-week50.pdf 
3. Grandviewresearch (2021) Fresh Fruits Market Size & Share| Industry Report, 2028 (n.d.) from
https://www.grandviewresearch.com/industry-analysis/fresh-fruits-market-report 
4. Nytimes.com. (2018, March 13) Most of America’s Fruit Is Now Imported. Is That a Bad Thing? Available
from https://www.nytimes.com/2018/03/13/dining/fruit-vegetables-imports.html 
5. Grandviewresearch.com (2021), U.S. Fruit & Vegetables Market Size Report, 2022-2030. (n.d.), from
https://www.grandviewresearch.com/industry-analysis/us-fruit-vegetables-market 
6. ReportLinker (2022, June 17). U.S. Fruit & Vegetables Market Size, Share & Trends Analysis Report By
Product, By Distribution Channel And Segment Forecasts, 2022 – 2030,– 2030, from
https://www.globenewswire.com/news-release/2022/06/17/2464782/0/en/U-S-Fruit-Vegetables-Market-Size-
Share-Trends-Analysis-Report-By-Product-By-Distribution-Channel-And-Segment-Forecasts-2022-2030.htm
l
 
7. Hart, M. (2022, April 6). The Straightforward Guide to Value Chain Analysis [+ Templates], from
https://blog.hubspot.com/sales/value-chain-analysis 
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