Hewlett Packard Company in Vietnam- Case Study

1221 Words Dec 29th, 2013 5 Pages
Hewlett Packard Company in Vietnam

Case Summary

John Peter, a Marketing Manager of Hewlett-Packard Asia Pacific (HPAP) was evaluating HPAP’s long-term strategic investment options for doing business in Vietnam. Before start up business in Vietnam, John needs to know the current business environment in Vietnam. History, Economic and Politic Environment are important to know about the country whether is stable from others control. Current workforce is important to find the skillful employee when it’s start up the factory in Vietnam. Foreign exchange and investment regulations are also important to know whether Vietnam market was open to global market or not. Hence, facility in Vietnam such as financial services, communicate services,
…show more content…
It is because through the joint venture, the company is more familiar with the situation of the company there. The negative outcome is that the management system different between the company. So it is hard to make a decision making. It is because there is different opinion of each person.
2. Independent
The positive outcome of this strategy is that the company will get more profit. It is because the company no need to share the profits with others company. The negative outcome is that it is more risky. The government will take action to take over the company because there have no acknowledge of the company.
3. Franchising
The positive outcome of this strategy is that the company is easy to control the market. It is because through the franchising, the local company needs to get the agreement contract from the main company. The local company can manage the local market well because it has already familiar with the cultural of that country. The negative outcome is that the local company didn’t follow the rules that have set by the main company and boycott them because they take control of the business.

The Best Strategies and Justification
1. Joint venture with Local partner

The best strategy to resolve the problem of “What strategies that Hewlett-Packard Company should adopt to explore the Vietnam market” is joint venture with local distribute. The Hp Company doesn’t know with the environment there so through the Joint-venture, the company can more

More about Hewlett Packard Company in Vietnam- Case Study

Open Document