Vinamilk Swot

1726 Words Nov 20th, 2008 7 Pages
Vinamilk’s SWOT analysis
a) Strengths
Established since 1976, Vinamilk has grown strongly and become the leading business of the industry of milk processing. Obviously, its long history is the first and foremost strength to make it become the biggest dairy producer in Vietnam. Throughout more than 30 years operating, Vinamilk has become a familiar trademark to domestics’ clients. Also, Vinamilk has gained a great customer understanding and satisfaction as well as knowledge of the local market.
Another remarkable factor that has actually strengthened Vinamilk’s leading position in the market is that it already holds a strong distribution presence which spreads nationwide, from urban to rural, coastal and mountainous areas. The
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Aside from these criticism and disputes, marketing strategy is most emphatically a weakness of Vinamilk. According to Mr. Tran Bao Minh, Vinamilk’s new subdirector in marketing, the company’s marketing policy is not adequated to its position in Vietnam’s dairy market. Particularly, it has not succeeded in giving a message to clients about the advance of Vinamilk’s products in comparison with other firms’ commodities, its high fresh milk content products for example. Also,both the logo and the slogan “International quality, VINAMILK’s quality” have not impressed consumers nationwide.
c) Opportunities:
Setting these problems aside, Vinamilk is standing many good chances. For the last three years Vietnam's economic growth has exceeded eight percent and in 2007 economic growth was at 8.5 percent. If industrial production and services in Vietnam grow in 2008 as is being predicted, an economic growth rate of 8.7 percent may be seen. Annual individual income has also improved gradually (620 USD per head in 2005, 715 USD per head in 2006, 835 USD per head in 2007 and 960 USD expected in 2008). The economic growth has helped boosting purchasing power of domestic products; therefore, people are now ready to pay more on nutritional commodities like dairy products.
Additionally, Vinamilk gains benefit from the affluent supply. Being aware of the importance of cow breeding for milk, the Prime Minister issued two Decisions on the development policy of breeding dairy

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