1 AIT Asian Institute of Technology

Changing the distribution model in B Braun Vietnam Company Ltd.

AuthorNgo Thi Kieu Diem
NoteA project submitted in partial fulfillment of the requirements for the degree of Master of Business Administration (Executive) in International Business – Management of Technology, School of Management
PublisherAsian Institute of Technology
AbstractB.Braun Vietnam (BB) is a subsidiary of the global corporation, B.Braun Corporation entered Vietnam quite early compared to other multinational healthcare companies. The first representative office of BB Vietnam was established in 1992, based in HCMC, followed by Hanoi in 1993 and expanded to 5 cities Hanoi, Hue, Da nang , Ho Chi Minh city and Can Tho province. In the first 5 years, the company had major advantages as one of the first foreign company to enter Vietnam market. Most of BB products were welcomed by customers. Since 2000, there have been more strong competitors entering the market. This means that there is more competition among companies in the Health care industries. To survive, the company has to look more closely into improving of product quality, productivity and especially in cost saving. According to the current Vietnam law FDI enterprises are not allowed to do direct sales in the local market. To overcome this situation, BB must use the name of a local company to import and sell all BB products to its customers in Vietnam. This will cost a huge amount of money which the company has to pay for local company to use its name as importers, distributors and sellers to BB customers. Vinh Tam pharmaceutical company limited (VT) – a company run by a former Finance Manager of BB - is the one BB chose as the exclusive distributor. The contract has been signed for 5 years and is valid until the end of 2008. In May this year, because of the problem with this distributor, the new management of our company decided to change its business model by taking the formal steps of termination of this exclusive distributor contract. A new model will be implemented.
Year2008
TypeProject
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (Executive) in International Business - Management of Technology (VN/BKK))
Chairperson(s)Swierczek, Fredric William;
Examination Committee(s)Bechter, Clemens ;Zimmerman, Willi ;


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