5 áp lực cạnh tranh của Vinamilk của Michael Porter PDF

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Analysis of Vinamilk's 5 competitive pressure modelWith the development of Vietnam's dairy industry, the competition between domestic and foreign manufacturing companies is increasing. Let's analyze the case study of Vinamilk's 5 competitive pressure models to understand the strength of this "big ma...

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Analysis of Vinamilk's 5 competitive pressure model With the development of Vietnam's dairy industry, the competition between domestic and foreign manufacturing companies is increasing. Let's analyze the case study of Vinamilk's 5 competitive pressure models to understand the strength of this "big man" in the current dairy market. Vinamilk ranks 2nd on Vietnam's stock market after 10 years of equitization. Currently, Vinamilk accounts for about 53% of the market share of liquid milk, 84% of the yogurt market and 80% of the condensed milk market. Vinamilk also has a wide distribution system throughout Vietnam, Vinamilk products are present in more than 212,000 retail points, 100 stores introducing its own products, and 650 supermarkets nationwide.

+) Competitive pressure on customers The end customer, is likely to put great pressure on companies about the quality of the product. The brands of dairy products are very diverse and interchangeable; the price factor is no longer so important to consumers when choosing dairy products. Companies compete with each other by quality, product variety, brand strength, etc., then price. For dairy products, when the price of raw materials is high, the dairy company can raise the price of the product that customers still have to accept. Therefore, the bargaining power of buyers is low. As for resellers, nutrition centers, the company will give discounts and commissions. Distribution points such as nutrition centers, hospitals, pharmacies, etc. can gain significant power over dairy brands, as they can influence the retail customers' decisions on which dairy products to buy/ finally through consulting, product introduction.

+) Threat of substitute products In fact, dairy products always have a strong position in the market with very few other substitutes due to the characteristics of milk as an essential nutritional supplement. For liquid milk, the substitute products that are likely to reduce the company's market share are nut milk, soy milk, cereal drinks or soft drinks with milk, etc. The dairy industry is less exposed to substitute products.

+) Barriers to entry into the industry In general, the barriers to entry of the dairy industry are quite high given the costs of entry, product characterization and the establishment of appropriate distribution channels: – The cost of entering the industry, in general, is not high but must be large enough for advertising, research / development needs. However, for liquid milk and yogurt products, it is quite high. – Product characterization: The Vietnamese dairy market has so far present most of the major dairy companies in the world, in which the large dairy firms have owned a certain market share and have little change in recent times. Therefore, new competitors who want to enter must have a strong investment to entice and change the market's loyalty to existing dairy firms. - Distribution channels: The current product distribution channels of the dairy industry have been fully utilized by existing businesses. Therefore, new entrants must convince these distribution channels by accepting high commission share. Therefore, it can be concluded that the pressure from new competitors is not significant, but competition will mainly take place within the existing industry.

+) Bargaining power of suppliers Vinamilk in particular and dairy enterprises in general have quite high bargaining power with suppliers. Regarding the size of the dairy industry, 95% of dairy cows are raised in households, only 5% are raised in specialized farms with a scale of 100-200 heads or more (VEN, 2009). This shows that people raise cows spontaneously, not focusing on the process, so the quantity and quality are not stable, reducing the ability to negotiate with production companies. The lack of management experience, the small farm size, the high rate of reproductive disorders and diseases of dairy cows… make dairy farmers very disadvantageous. Therefore, domestic dairy companies take the initiative in negotiating the purchase price of input milk.

+) Competition among competitors in the industry

Vinamilk is currently facing relatively high competition from domestic and foreign brands such as: TH True Milk, Nesle, Abbott, Mead Jonson, etc. In the future, the dairy market will continue to expand and expand. competition increases....