https://www.giaythuongdinh.com.

vn/

Thuong Dinh ITM

Nguyen Viet Hien Long – s3978283

Nguyen Trinh Thu Giang – s3979219
Pham Duy Hieu – s377781
Nguyen Quoc Dat- s3970592
 TABLE OF CONTENTS

01 Introduction 02 Analysis

03 Recommendation 04 Reference
 • Innovation is a product, business model, or strategy that's both novel and useful (
Michael Boyles, 2022).
What is
innovation • Innovations don't have to be major breakthroughs in technology or new business models (
Michael Boyles, 2022).
?
• Without innovation, there is no learning, no growth, and nothing ever changes. As a result, that
company will ultimately stagnate, lose its competitive edge, and fail

Figure 1: The Adoption of Innovation

 01
Introduction
 Thuong Dinh History
 X30 factory was
transferred to Hanoi Merged with  Officially named
Department of Hanoi Cloth Thuong Dinh
Industry Shoes Factory Shoe Company.

1957 1961 1967 1970 1978 1993

Formerly the X30      X30 factory received Merged with

workshop under a number of other Thuong Dinh
the Military Cloth Shoes
units and changed
Supplies Factory
Department  its name to Thuy
Khue Rubber
Factory.
 Revenue

• For 5 consecutive years

from 2016 to 2021, Thuong
Dinh recorded as a business
of loss

• However, during
Covid 19 from 2019 to
2021, the revenue of Thuong
Dinh remarkably increased
about 13 billion VND

Figure 2: Revenue of Thuong Dinh from 2011 to 2021

2.1 Problem
2.2 Problem analysis
S&A

02
Analysis
 www.slidesgo.com

Problem
Management: Failed to apply
modern management

S&A
 • Total quality management (TQM) is the continual
process of ensuring long term customer loyalty
and customer satisfaction (Management study guide n.d.).

• The fashion industry is notable for the volatility of

consumer preferences, hence it requires the Data-driven
- Making use of data to improve the organization.
Total quality
management

Figure 3: TQM Principles

• Thuong Dinh has failed in recent years because of not :

o Focusing on the customer’s experience 
o Constantly improving in their product
o Quantifying success and defining the steps taken to
achieve success.

Figure 4: How Small Changes In Women’s

Fashion From 1784 To 1970
 Thuong Dinh
• The country's Ministry of Industry and Trade's Department of E-commerce and Digital Economy said in a report
that came out in January 2021 that 53% of the population has already participated in online retail (
Nguyen Le Diem, 2021).

• Meanwhile, according to the "Economy SEA 2020" study by Google, Temasek, and Bain & Company, e-
commerce in Vietnam gained 46% per year. (Nguyen Le Diem, 2021).

Low brand • Thuong Dinh are struggling with marketing strategy in order to promote their product 

awareness

Figure 5: Traffic to Thuong Dinh and Biti's websites within 3 months (screenshot.)
 Material
The shoes use old-fashioned soft fabric with
a price of less than 100,000 VND 

• Easy to torn
• Hard to break in
Actual Figure 6: Thuong Dinh shoes

value
Technology
Thuong Dinh doesn’t apply any smart
technique ( Khánh Hà, 2019).
 Material
• The Bitis shoes are designed with high-
quality Liteknit material, providing
good elasticity. 
• The sole of the shoe is made of phylon

Actual material, a lightweight material

( thegioigiay n.d.) Figure 7: Phylon sole technology in Bitis shoes

value
Technology
Biti's is a pioneering Vietnamese company
in applying smart technology to footwear
products (Tuấn Trần, 2018).

Figure 8: Bitis shoes

 Thuong Dinh encountered many difficulties such as:
•  Old production line 
•  Could not keep up with the trend in fashion. 

Design

Figure 9: All products of Thuong Dinh

 "Thuong Dinh shoes, perhaps the problem is not only in
quality but also in whether businesses can follow the
market trends as well as consumer tastes, especially
young people"

-Mr. Dang Duc Anh - Deputy Director of the National Center for
Socio-Economic Information and Forecasting (Ministry of
Planning and Investment) 
(Khánh Hà, 2019)

Figure 10 : Mr. Dang Duc Anh

Recommendation
 Thuong Dinh
Thuong Dinh should hire marketing specialists to promote their products as they can
create unique and innovative marketing campaigns that convey Thuong Dinh's
values, and alter the minds of customers.
 

Promotion

Figure 11: CAS Media is a professional Digital Marketing Agency in Viet Nam

 Competitors - Bitis
Regarding advertisement, Gen Z using a lot of social platforms to look up the most modern items.

Promotion

Figure 12 : Most popular social networks worldwide as of January 2022, ranked by number of monthly active users
(Statista,2021)
 Competitors – Biti's
Bitis has taken advantage of popular social networking sites as well as TV commercials in Vietnam
to run ads for brands.
=> They also collaborate with famous person, making TVC ads.

Promotion

  Figure 13 :  TV ad of Biti's Figure 14 : TVC ad of Biti's

Technology

Figure 15 : High-quality materials of Biti's shoes Figure 16 :Biti's applies smart technology to
products

• Khan and Ahmed (2012) claimed that " Product quality is a critical determinant of consumer satisfaction.

• What Thuong Dinh needs to do to be able to compete with Bitis and others is to learn from what other
brands did, constantly improve products as well as quality to increase customer satisfaction with the
product.
Design
• Attract and hire expert designers. Thuong Dinh is known for limited product-line,
therefore, the brand new shoes with unique design will expand their segmentation.

• In the “Vietnam Arising” collection, Biti’s Hunter Street x VietMax introduces 3 new
designs inspired by Vietnamese spirit materials. It has immediately attracted a lot of
young people

Figure 17 : The number of keyword searches on smartphones and computers: " Biti’s Figure 18 :Fabo – a KOL review about Biti’s
Hunter Street x VietMax Hunter Street x VietMax 
References