| Abstract | Ha Tien 1 based in Ho Chi Minh city is the leader of Vietnam cement market. They produce civil cement and industrial cement with very high quality. They dominate the cement market in south of Vietnam. In 2009, their sales reached 2,840 billion vnd, increased 11% compared to 2008, the year of whole economy recession. At present, the company occupy 32% market share in southeast area. The company also wishes to expand their sales in this market as their purpose is to sell more industrial cement which is more demanded here.
The cement industry in Vietnam has been developing rapidly with new technologies, management and dimensions. Over the last 5 years, cement industry has contributed 12 – 15% GDP of all industries and the competition in the cement market has become stronger in recent years. Moreover, Vietnam economy is significantly developing with many projects of new infrastructure, buildings, apartments, etc. The most fruitful market is southeast area. This is supported by the prediction of Ministry of construction (November 2010) that the demand on construction in southeast area will reach more than 55% in 2020. It leads to a prominent increase in cement demand in this area.. Moreover, it is predicted that Vietnam economy and politics is table till 2011, and the government will support industry by removing restrictive rules and regulations. However, the domestic companies not only compete with each other but also have to compete with foreign companies such as: Holcim, Lafarge…which have good brands on over the world. Ha Tien 1 and Holcim are presently leading brands of cement market in the Southeast Vietnam with large market share and prominent reputation in consumer mindset.
To grasp the opportunities and overcome the threats, Ha Tien 1 should emphasize on their key competitive advantage. Based on its strong financial resource, the company should spend on sponsor its distributors and on marketing activities.
Core competency of the company is delivering high quality products with many certificate awards like ISO 9001: 2000, Vietnam high quality product award yearly…Additionally, Ha Tien 1 have very good relationship with distributors by timely delivery and organizing overseas trips for distributors twice a year.
However, the company also has to overcome the threats. The SWOT analysis helps to recognize their strengths, weaknesses, opportunities and threats in order to work out competitive strategic plans timely. Also, the market niche strategy is very useful in increasing sales in potential market like southeast area. On the other hand, five forces model of Michael Porter is used to identify the level of competitive on cement market which shows that Ha Tien 1 should offer stable high quality with best service.
Research method based on collectting data from Reports, articles, magazines, websites related to Vietnam macro - economic, Vietnam cement market, area countries cement market, monthly reports; yearly reports of all departments in HT1 and opinions from the top management (3 people) and the department heads (7 people) of the company is done. This is a good way to review Vietnam macro - economy, Vietnam cement market, and Ha Tien 1 Production and Business report It will also forecast Vietnam economy and cement market from 2011 to 2015. Accordingly, it will give a depth analysis on the business environment, factors under consideration (SWOT analysis); competitor’s insight and hopefully help Ha Tien 1 to gear better to face the challenges of Vietnam market, sustain a leader in this market and expansion into Southeast market. |