Strategic Management'S Assignment: Analyze Businesses and Make Strategies For Circlek
Strategic Management'S Assignment: Analyze Businesses and Make Strategies For Circlek
Strategic Management'S Assignment: Analyze Businesses and Make Strategies For Circlek
ASSIGNMENT
Group 3:
Nghiêm Công Việt Hoàng
Nguyễn Hồng Hạnh
Võ Nhật Hoàng
Nguyễn Minh Hùng
Lý Quang Huy
Trần Quang Huy
Nguyễn Thị Huyền
Lê Hoàng Khánh
Table of contents
I.Vision, mission and objectives…………….…...3
1.Base information about circle K………...................3
2.Vision, mission and objectives………………….....4
( By Ly Quang Huy)
IV.SWOT…………………………………………15
( By Hong Hanh ,Nhat Hoang and Viet Hoang)
V. Strategy………………………………………...16
1.Product……………………………………………..16
2. Price………………………………………………..16
3.Channel……………………………………………..17
4. Branding…………………………………………....17
( By Hoang Khanh and Tran Quang Huy)
2, Economic
3,Social- culture
4, Technological
* Forms of activity
Although most retail operations taking place in the retail stores, but in recent
years, thanks to the development of technology, retail formats not via stores as
sales via mail , catalogs, telephone, Internet, TV, vending machine ... growing
and becoming popular. Online shopping is becoming a habit for many
consumers around the world. Sales through mobile phones and social
networking is a step forward.
The Internet became popular, ecommerce development, the retail business can
empower marketing comfortably, from the poll customers to gender About
enterprise, ... If you can make good use of the development of information
technology, enterprises can make your brand become popular and easily
recognized, remembered more for the people, thereby boost sales of the
business.
Many retail businesses have built their own websites such as Big C, Coopmart,
FamilyMart ... or create their own pages on social networks such as Circle K,
Shop
However, also by the development of the Internet and the risk of e-commerce,
but now can be lowered prestige by the articles or comments negative about
your business, or because the problem arise occur in the process of
implementing e-commerce with customers and partners.
5, Legal
* The legal system is not uniform, stable, do not ensure the clarity and
predictability.
* The legal system of Vietnam although there are some rules and guidelines
for the franchise in commercial law in 2005, but on the issue of procedures and
legal action franchise in Vietnam still limited. Registration procedures franchise
still troublesome, rigid, dossier evaluation process is complex. Tax law has no
provisions on tax, registration fee of franchise operations, confusing for the
receiving agency to register and tax administration agency. Between the laws of
the franchise still has many shortcomings, namely between the Civil Code
(understood as licensed franchises, are classified in object technology transfer)
and the Law on Technology Transfer (not ranked franchise license is the subject
of technology transfer), this would cause difficulties in the management and
protection of the rights of the concessionaire and the franchisor.
6, Environmental
b. Consumers’ demand:
At the end of 2011, 68% of the population is younger than 40 years old,
15% of which regularly shops at malls.
Vietnam has a population of around 86 millions and half of it is under 30.
20% is from 10-19 years old, which means in the next 10 years, 17
millions people will become potential customers in the retailing market.
The young is regarded as modern, adaptable => They create a significant
amount of supply. Also, as the living standard increases, the demand for
luxury items rises as well.
Big population with high demand => The supermarket system has been
expanding constantly at a rate of 30-50% since 1993.
It is estimated that there’ll be 40 millions middle-class citizens by 2020
=> More potential in the market.
Summary: With a huge amount of demands and high growth rate, it can be an
opportunity but also a threat, since many businesses will step in => Very
competitive market.
Statistics show that the amount of goods sold from supermarkets and
department stores only accounts for 10%. On the other hand, that of
traditional stores and markets respectively takes up 44% and 40%. Circle
K has to compete directly with these pre-existed traditional forms of
commerce. The number of Circle K stores is nowhere near as that of
traditional stores and markets (only 300+ all across VN) and they are
located at the big provinces only.
The price is usually higher.
=> The threat from substitute products create the biggest challenge for Circle K.
Circle K mostly sells necessties, the supplies of which can either come
from domestic or foreign suppliers. However, they mostly cooperate with
foreign firms. The switching cost for changing suppliers is low.
=> Suppliers don’t have too much power on Circle K.
Final Conclusion
Circle K faces the most challenges from substitute products, followed by
customers and competitive rivalry. They face significantly fewer threats
from new entrants and suppliers.
V.SWOT
Strenghts Weaknesses
+ Brand is an advantage because
Circle K is one of the most popular +Many space shops are small,
convenience store brands in the limited to selling many items, no
world and is no longer an parking space for customers
unfamiliar name especially
Vietnamese youth.
+ Diverse products and reasonable +Unable to meet clean and fresh
prices food items of vegetables and fruits
+ Many deals are open to
customers with diningcombos with + Operating costs are still quite
preferential prices and attractive large
gift-exchange programs
+ Stores are concentrated in + Customer target are still limited
densely populated places and big
cities
+ Strong financial resources and
professional staff
Opportunities Threats
+Vietnam is a country with a rapid +Competitive challenges from
pace of urbanization, so early entry extremely strong and large
into the Vietnamese market is a alternative brands in the country
great opportunity for the company. and abroad
S5> <O1 + O3: With a dynamic young staff, Circle K can take advantage
of the opportunity to apply modern technology and take advantage of e-
commerce. Train employees to be technologically proficient, use e-
commerce to promote, promote product consumption. * S5> <O1 + O2 +
O3: With strong financial resources, Circle K easily recruits an abundant
source of young and high-skilled young workers, a team of e-commerce
professionals. At the same time, it is easy to buy modern technologies and
software to minimize costs and increase operational efficiency.
W1+ W3 >< T1. With costly cost due to 24-hour operation and high
product price challenge, big competitor, Circle K should build stores with
small area in entertainment centers, crowded places. and bustling to
increase the efficiency of 24-hour operation, while reducing the impact of
prices due to such places, prices will be less important. Open stores in
places where there are many foreigners to exploit their late-night habits,
as well as reduce the impact of prices. In places where the demand for
nighttime is low, it is possible to have flexible working hours, close at
night to increase operational efficiency.
W3 + W4> <T1 + T2: Customer target are limited, the level of promotion
is low and the product price is high, purchasing power is low, products
are less different. Circle K should focus on targeting young people
because they are a group of people who will be at the forefront of
innovating consumer habits, contributing to building and changing
people's buying habits. Providing products that cater to the essential
needs of young people, and research investments to develop products and
services different from competitors. Conduct advertising to raise the
awareness of the people, especially the young people about consumer
goods of high quality and origin at convenience stores.
V.Strategy
Market penetration
1.Products
Current Service Improvement:
New & Standard Services:
o Payment: Using Online Payment Service for particular type of
payment (e.g. Bills, OHS, Telephone or Internet fees, etc.) through
shops
o Seasonal products: Providing appropriate seasonal products matching
to target customers’ demand (e.g. Focus on iced & refreshing beverage
in Summer)
o Quality Guarantee: Quality & Innovative products, Affordable Price,
Refunding or on low quality products complained by customers
2.Price
Long-term Promotion
o Daily Discount: 20%-30% discount for convenience food in night shift
o Occasional Promotion: Discount proportion appropriate to each
occasion (e.g. Christmas products’ price will be reduced or bonus
Xmas theme gifts provided along with itemized bills)
3.Channels
Taking advantage of the financial and brand advantages continuously to develop
a strategy to expand market share, creating a competitive advantage compared to
other convenience chain stores, opening chain stores first concentrated in the
areas District center city to suburban areas. The initial operating costs of the
doors will be based on the company's main resources. The profits of open stores
will be used to open new stores to continue expanding markets. Estimated after
applying the strategy: the number of stores opened about 200 chains nationwide (
first establised stores in main distric in Hà Nội and Hồ Chí Minh city) after 1
year of application, profits increased steadily over the previous quarter.
Stores Improvement & Expansion:
Reasonable Locations:
4.Branding
Boost Promotion in order to raise branding awareness
Stores decoration: Consistency of visual concept but different vibes & retail
styles in order to meet requirement of customers in different areas. However,
customers still need to know that Circle K always brings them highest service
& products quality
Boost IMC tools (Integrated Marketing Communications):
o Advertising: Digital Advertising, Outdoor Advertising (Poster &
Banner, Billboard), TVC, etc.
o Sales Promotion: Gifts & Discount (membership cards, special
discount on customers’ birthday)
o PR Publicity: Offline Promotion, Events, Gameshows, etc.
Customer Service:
o Improve service & products quality base on customers’ evaluation
(feedback survey, emotion rate booth)
o Hotline for emergency response (complaint, demand)
o Keep contact to loyalties (provide new information asap)
o Employee responsibility: Clearly understand and execute rules set by
company, well-trained “How to nicely treat your customers”