INTERNATIONAL BUSINESS STRATEGY DOJI GROUP FUTURE DEVELOPMENT DIRECTIONS

The DOJI Group is one of the famous enterprises in the field of gold, silver,jewelry, and gems in Vietnam.. DOJI GOLD & GEMS GROUP COMPANY, formerly TTD Trading andTechnology Development

TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

INTERNATIONAL BUSINESS STRATEGY

DOJI GROUP – FUTURE

DEVELOPMENT DIRECTIONS

Lecture: Ms Nguyen Thi Hong Hanh

Group 5 member:

Ho Chi Minh City, 15th Nov, 2022

TABLE OF CONTENTS

INTRODUCTION………1

CHAPTER 1 COMPANY ANALYSIS 2

1.1 Business model analysis canvas of DOJI 2

1.1.1 Customer segments 2

1.1.2 Value Porposition 2

1.1.3 Channel 4

1.1.4 Customer relationship 4

1.1.5 Revenue stream 5

1.1.6 Key resources 5

1.1.7 Key activities 7

1.1.8 Key partners 9

1.1.9 Cost tructure 10

1.2 External analysis 12

1.2.1 PESTEL anlysis 12

1.2.1.1 Political 12

1.2.1.2 Economic 12

1.2.1.3 Social 13

1.2.1.4 Technological 13

1.2.1.5 Environmental 15

1.2.1.6 Legal 15

1.2.2 Five forces framework 16

1.2.2.1 Threat of new entrants 16

1.2.2.2 The power of suppliers 17

1.2.2.3 The power of buyers 18

1.2.2.4 Threat of substitute products 18

1.2.2.5 Rivalry among existing competitors 19

1.3 Internal analysis through VIRO 20

1.4 Financial situation 21

CHAPTER 2 FUTURE GROWTH 24

2.1 Timeline of project: 25

2.2 Implementation 26

2.3 Financial Plan: 28

CHAPTER 3 CONCLUSION 30 REFERENCES……… 31

LIST OF FIGURE

Figure 1.1 Logo of DOJI 2

Figure 1.2 Webside of DOJI Jewelry 4

Figure 1.3 DOJI Jewelry Factory 6

Figure 1.4 DOJI Tower 7

Figure 1.5 TP Bank - Member of DOJI group 8

Figure 1.6 Logo of DOJILand - Member of DOJI Group 9

Figure 1.7 The business results of DOJI 22

Figure 2.1 The ground is considered 27

LIST OF TABLE Table 1.1 Business Model Canvas of DOJI 11

Table 1.2 VRIO Frame of DOJI 21

Table 1.3 DOJI's business results for the last 3 years 22

Table 2.1 Grantt of new project 25

Table 2.2 Financial plan 29

The DOJI Group is one of the famous enterprises in the field of gold, silver,jewelry, and gems in Vietnam Accordingly, DOJI has made a strong mark in theVietnamese business community with its impressive revenue growth and growingbrand value DOJI also dominates the domestic market with the gold bar tradingsystem, distributing Diamonds and high-end Jewelry After the covid 19 pandemic,Vietnam's current gold and jewelry market have more or less influenced However,DOJI still retains its position as a "big man" in the field of jewelry and gems andcompetes with two other big competitors, PNJ and SJC Because jewelry is a specificindustry, besides developing in foreign markets, the DOJI also pays special attention

to developing strategies in the Vietnam market

In this report, we perform a performance analysis of DOJI's activities throughthe canvas business model, VRIO framework, and the company's financial position

We feel it is necessary to focus on further development in the Vietnamese market.Analyzing the Vietnamese market by methods such as (PESTEL, Five Forces, .)shows the purchasing power, the development of the jewelry and gem industry aftercovid, and the strong development of competitors such as PNJ, SJC, Therefore, tomake a big change and gain more market share of DOJI, we propose a developmentstrategy to compete with PNJ in the next 3 years Accordingly, we do the planningwith each phase Therefore, our report will include the following:

• Chapter 1: Analysis of the company

• Chapter 2: Analysis of the macro environment and future developmentdirections

• Chapter 3: Conclusion

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1 CHAPTER 1 COMPANY ANALYSIS

Figure 1.1 Logo of DOJI.

DOJI GOLD & GEMS GROUP COMPANY, formerly TTD Trading andTechnology Development Company, was established in 1994 by Mr Do Minh Phu.TTD became the first company to bring to the international market the Vietnamesestar Ruby stone product Since then, the company has been named the world's starRuby king, bringing Vietnam to be depicted as a bright spot on the internationalGemstone map

1.1 Business model analysis canvas of DOJI

1.1.1 Customer segments

DOJI targets the majority of female customers, with diverse ages but focusingmore on adult age Customers that DOJI targets are people with high income andunderstanding of the value of the jewelry industry

1.1.2 Value Porposition

DOJI always committed to bring customers top quality products for personalvalues and the essence of life The motto of VALUES OF PRODUCTS - CORESERVICES (BLUE CHIPS) is considered as a red thread throughout the Group'sproduction and business activities

DOJI products always come with criteria that competitors can hardly follow:beauty, long lasting, unique, elegance, creativity, high quality, innovation, physicalevidences, satisfaction

DOJI jewelry products have lasting value over time not only thanks to theireternal materials but also because of their delicate designs It is easy to imagine whenDOJI's products are carefully preserved by customers for the next generation as ameaningful gift.

 Creativity:

Modern technology can replace the steps of jewelry production, but creativitycannot be replaced by any machine DOJI's design experts with extensive experienceand outstanding creativity are able to create unique products that are loved by a largenumber of customers

 High quality:

DOJI's gem and diamond products are tested by world famous gemologicalinstitutes such as: GIA, HRD, IGI In addition, determining the quality of products isthe development of the Group, the Center DOJILAB accreditation was established.This is a prestigious testing center with modern machinery and leading experts inVietnam, cooperating with famous foreign inspection centers such as Thailand,Singapore, Germany

At the same time, DOJI Group also regularly cooperates with partners aroundthe world to apply modern machinery and production technology to createsophisticated products

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 Physical evidences:

DOJI high-end jewelry products are manufactured according to standardprocesses with the support of modern machinery and equipment From the stage ofdesign, prototyping with the ingenuity and sophistication of human hands to finishingproducts with equipment imported from Japan, special attention is paid

In jewelry manufacturing activities: Besides traditional processing methods,DOJI Group uses a modern industrial method of cutting and grinding gemstones thatcan cut and sharpen all different types of gemstones including Diamond InvisibleSetting - one of the advanced technologies in the world applied by DOJI Group tocreate the highest quality jewelry products

1.1.3 Channel

Direct: DOJI has a system of nearly 100 distribution centers of gold, silver andjewelry, typically in big cities such as Hanoi, Ho Chi Minh City, Da Nang, etc., andnearly 500 agents in many provinces and cities across Vietnam

Indirect: Customers can buy any product of DOJI Luxury Jewelry through commerce service with website trangsuc.doji.vn Furthermore, DOJI also have a widenetwork such as: Facebook, Zalo, Instagram, Youtube,

e-Figure 1.2 Webside of DOJI Jewelry.

1.1.4 Customer relationship

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DOJI Jewelry always has the best after-sales service and customer care policy,including warranty policies, exchange policies, installment policies to bring maximumbenefits to customers

DOJI launches many special promotions on each occasion of Tet holiday orwedding season, such as promotion program for the season of love, welcoming thenew month peacefully, to attract more customers For customers who are members

of DOJI, DOJI always gives exclusive E-vouchers on birthdays, holidays and Tet

1.1.5 Revenue stream

• Revenue from product sales

• Revenue from investment in real estate (DOJI Land)

• Revenue from restaurant services (JadeMoon Premium Chinese Restaurant)

• Revenue from banking and finance sector (TP Bank)

1.1.6 Key resources

 Factory to manufacture gold, silver and gems at Hanoi

The factory was started construction with a total construction capital of morethan VND 300 billion, an area of over 10,000 m2 and has more than 5,000 m2 ofworkshops DOJI Jewelry Factory is invested in scale, spacious equipment, modernjewelry production line

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Figure 1.3 DOJI Jewelry Factory.

 Many golden lands in Hanoi and Ho Chi Minh City:

- DOJI Tower Building, the largest Center of Gold, Silver, Gems and Jewelry inthe country at 5 Le Duan, Ba Dinh District, Hanoi, 16 floors high and 3basements; total usable area 18,883 m2;

- Office building Ruby Plaza at 44 Le Ngoc Han, Hai Ba Trung district, Hanoi,

17 floors; total usable area 12,000 m2;

- Jewelry, Jewelry and Office Building at 214 Phan Dang Luu, Phu NhuanDistrict, Ho Chi Minh City, 10 floors high; total usable area 4,454 m2;

- Ruby Tower office building at 81-83-85 Ham Nghi, District 1, Ho Chi MinhCity, 20 floors high, total usable area 13,500 m2

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Figure 1.4 DOJI Tower.

 Engineers and experts, workers.

DOJI Group has a total workforce of nearly 3,000 employees who areengineers gem experts and workers are all professionally trained, seasoned withexperience to ensure serious and effective work progress… In which, up to 25% ofpeople have seniority of more than 10 years, seniority of more than 20 years alsoreaches nearly a hundred people Many employees have been with the company sinceits inception and are holding important positions

 Modern specialized machines.

Modern and abundant equipment and machinery are all imported from Korea,Thailand, China the countries with the world famous gem processing technologytoday

1.1.7 Key activities

As a multi-industry corporation, DOJI's 3 main pillars are currently Gold,Silver and Gems business, real estate and banking and finance

 Gold, Silver and Gems business:

DOJI Group is constantly developing outstandingly in the key fields of Gold,Silver and Gems (spanning from activities of Mining, Gemstone cutting, Jewelry7

production; Gold bar trading; Exporting; Importing and trading in gold jewelry andfine art; Expanding the chain of Jewelry Centers, which is also their main activity.

In 2020, DOJI Jewelry Group officially takes over Diamond World Company,creating a product distribution system covering most regions of Vietnam

 Banking and financial sector (TP Bank):

In early 2012, DOJI Group officially expanded its business into the field ofFinance and Banking and became a strategic shareholder of Tien Phong CommercialJoint Stock Bank (TPBank)

Figure 1.5 TP Bank - Member of DOJI group

 Real Estate (DOJI Land):

Along with trading in gold, silver, gems and finance - banking, Mr Do MinhPhu's group chose to make real estate a key and important field in its developmentstrategy By November 2014, DOJI Land Real Estate Investment Co., Ltd wasestablished to implement real estate projects

Currently, DOJI owns a lot of golden land in Hanoi and Ho Chi Minh City,besides focusing on projects in the center of Ha Long, Hai Phong, Hanoi, Vinh Phuc

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Figure 1.6 Logo of DOJILand - Member of DOJI Group.

 BIDV Bank – a provider of comprehensive financial solutions.

On May 31, 2022, BIDV and DOJI signed a comprehensive cooperationagreement for the period of 2022-2027 According to the cooperation agreement,BIDV will be the provider of comprehensive financial solutions for DOJI Group such

as banking products, securities, insurance, financial restructuring, bond issuanceconsulting, centralized cash flow management, e-banking system connection,distribution chain financing…BIDV and DOJI have always been together and trustedpartners of each other since 2019 until now, using the system together system of eachparty to cooperate in promoting the brand, cross-selling products and services,creating sustainable value for each party, the community and society

 Suppliers of equipment and machinery:

DOJI Group has a close cooperation in equipment and machinery with largedomestic and foreign companies such as Vietnam Coal and Minerals Group, Inmacbc9

Company of Japan, Beauty Gems Company Thailand's Hatta Gems, Taiwan's HattaGems, etc Some equipment and machinery such as grinding, polishing, cutting, andunderground cutting machines are imported from Korea, Thailand, China arecountries with a strong background world famous gem processing technology today.

• Product research and development costs

• Sales and Marketing costs

• Administration costs

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• Buying and selling gold

• DOJI productsalways come withcriteria thatcompetitors canhardly follow:

beauty, long lasting,unique, elegance,creativity, highquality, innovation,physical evidences

Customer relationships

•Service quality to improvecustomer experiencethrough flagship stores

•There are warranty policies,exchange policies,installment policies toguarantee customers' rights

Customer Segments

DOJI targets themajority of femalecustomers, withdiverse ages butfocusing more onadult age Customersthat DOJI targets arepeople with high

understanding of thevalue of the jewelryindustry

Key Resources

• Factory to manufacture gold, silver and gems at Hanoi

• Many golden lands in Hanoi and Ho Chi Minh City

• Engineers and experts,workers

• Modern specializedmachines

Channels

• E-commerce service withwebsite trangsuc.DOJI.vn

• Network: Facebook,Instagram, Zalo, Youtube,

• A system of nearly 100distribution centers

• Nearly 500 agents

Cost tructure

• Labor costs

• Building factories, machinery systems costs

• Product research and development costs

• Sales and Marketing costs

• Administration costs

Revenue Stream

• Revenue from product sales

• Revenue from investment in real estate (DOJI Land)

• Revenue from restaurant services (JadeMoonPremium Chinese Restaurant)

• Revenue from banking and finance sector (TPBank)

Table 1.1 Business Model Canvas of DOJI

1.2

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The Government has made important policies related to the DOJI's field ofactivities, such as Government Decree 24 on gold business management or Circular

22 of the Ministry of Science and Technology on measurement management in goldtrading and quality management of jewelry and fine art gold circulated on the market

 These regulations have made the management and administration of the gold,silver, and foreign exchange markets more organized and have also adjusted thequality of jewelry management in the direction of standardization, creatingfavorable conditions and protecting the rights of consumers

 These policies create good conditions for the units to do business seriously,and methodically, helping the market develop better

1.3.1.2 Economic

Deputy General Director of the DOJI Group Mr Duong Anh Tuan said: "DOJIGroup is one of the few enterprises that have consistently achieved high positions inthe VNR500 table of rankings since 2010 In the context of the country's economy hasnot really prospered and still faced many challenges, this is an objective recognitionfor the efforts of the DOJI Group during the past"

Looking back at the economy of the country, through the survey reports of theVietnam Chamber of Commerce and Industry for the past 3 consecutive years, allhave made a basic remark with the data show The number of small and medium-sizedenterprises, even small and micro, has increased rapidly and the number of large-scaleenterprises has decreased or the number of large enterprises has been difficult but thebusiness has narrowed down

Back to the revenue growth of the DOJI Group With the key business ofjewelry, the product is deeply affected by the factors of economy, politics, domesticmonetary policy, and major economies in the world It is said that achieving aphenomenal growth rate (from VND 5,258 billion in 2008 to VND 20,000 billion in12

2010) and sustainable growth (from VND 30,000 billion in 2011 to VND 40,500billion in 2015) is an excellent achievement of this Group.

Continuing for 6 consecutive years holding a high position in the VNR500rankings, achieving the national brand name of Vietnam, DOJI Group is becomingmore and more steadfast on the challenging and arduous journey ahead This is also agreat source of power for DOJI Group to constantly strive for the aspiration toconquer the domestic market in general, to reach out to regional and internationalmarkets in particular

to use gold jewelry as a gift to give and express the purpose in wedding ceremonies Besides, the common habit of Asians likes to hoard gold and jewelry when theyneed to save Therefore, these are also advantages that help DOJI's gold jewelryindustry to still grow while the economy is relatively difficult

According to the General Statistics Office, Vietnam has a population of 91million people with 70% of the population in the age group from 15 to 64 years old, inworking age In which, 51% of the population is female, creating an abundant jewelryshopping force In the long term, the Vietnamese people's culture of hoarding gold andusing gold jewelry ensures a stable market for DOJI that can continue to develop inthe future

 Due to the domestic operation, the ability to understand and grasp the cultureand traditions of the people is very good, thereby adjusting the strategy andbusiness direction to target the consumption market That is also an advantagethat the Company currently has

1.3.1.4 Technological

After the covid pandemic, technology is increasingly popular, expanding inalmost every industry For the gold, silver, and gem industry in Vietnam, technologicalinnovation is an extremely necessary issue Because the needs and tastes of customers13

for products are increasingly high, the product must have a new design, a variety oflines, and a large number of Because of those requirements, it requires a huge humanresource and leads to a lot of costs for businesses However, with the outstandingdevelopment of science and technology, machinery and equipment manufacturing hasreduced the production cost problem of enterprises Therefore, the use of equipmentand machinery is inevitable One such example is laser engraving technology, whichhas produced goods with incredibly rich and diversified designs that are acceptable forconsumers' tastes.

Additionally, enterprises in the gold, silver, and jewelry sectors bravelyinvested in and deployed numerous cutting-edge tools and technology when Vietnamjoined and became a member of the World Trade Organization (WTO) High-techmaterials were imported from nations all over the world, including Germany, theUnited States, Italy, Japan, etc., and produced a large number of gold and jewelryproducts that met worldwide quality and standards Businesses also employ thosemachines for a variety of technological equipment and machinery chains tosynchronize jewelry manufacturing and produce items that are high art, beautifullydesigned, and on-trend A focus on the present and a price that appeals to customerdesires

To ensure that Vietnamese businesses can compete with foreign ones, there arealready several companies in Vietnam that specialize in providing machinery andequipment for the gold, silver, and jewelry industries However, there are still somemachines and technologies in Vietnam that have not yet met the needs of businesses,

so Vietnamese businesses still have to buy abroad and the cost of those machines andtechnologies is extremely high Therefore, that requires businesses to have enormousfinancial resources This can be seen as one of the cost challenges that jewelers mustcarefully consider to bring the best benefits to their company

Besides, with the development of technology in Vietnam, it can be seen clearlythat the shift from traditional shopping to online shopping is now clear Vietnamesebusinesses use data analysis and digital marketing to create tailored services, products,and strategies to give customers the greatest possible experiences Customers' onlinepurchasing forms can be accessed, updated, and developed, which gives the firm thechance to both sustain and grow its current market

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