Report final exam strategic management

1 ACADEMY OF POLICY AND DEVELOPMENT INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE REPORT FINAL EXAM 2 STRATEGIC MANAGEMENT APRIL 2022 / / 3 Table of Contents I INTRODUCTION 4 II EXTERNAL ANALYSIS 7 1[.]

ACADEMY OF POLICY AND DEVELOPMENT

INTERNATIONAL SCHOOL OF ECONOMICS AND

FINANCE -

REPORT FINAL EXAM

STRATEGIC MANAGEMENT

_

APRIL 2022 / /

Table of Contents

I.INTRODUCTION 4

II.EXTERNAL ANALYSIS 7

1.PESTLE 7

2.Porter’s Five Forces 12

3.The External Factor Evaluation (EFE) Matrix 15

III.INTERNAL ANALYSIS 18

1.The key internal forces 18

III.INTERGRATED ANALYSIS AND STRATEGIC DECISION 23

1.SWOT Analysis 23

2.Measure the SWOT factors 25

IV.STRATEGIES IMPLEMENTATION AND EVALUATION 27

1.Strategies implementation 27

2.Evaluation system 28

V.CONCLUSION 28

I.INTRODUCTION

 General introduction

 Transaction name: BOO TRADING JOINT STOCK COMPANY

 Abbreviations: BOO TRADING JSC

 Email: online@boo.vn

 Website: https://boo.vn/

 Registered business address: No 19A, Dang Tran Con Street, Quoc

Tu Giam Block, Đống Đa Distict, Ha Noi city, VietNam

 Head office: 9 floor, TMC Tower, No 1, Luong Yen Street, Hai Ba

Trung District, Ha Noi city, VietNam

Phone: 1900 232313

Landline: (024)39785426

 History and development

BOO opened a sliding clothing and accessory store on Nam Cao Street in Hanoi in 2003 The store is decorated in a hip hop style with contemporary street and culture Mr Do Viet Anh, the company's founder, has a similar flair

BOO Trading Co., Ltd was created after

6 years (2009) Bo Sua is a brand that is no

longer unfamiliar to young Vietnamese

people T-shirts printed with motifs

connected with memories of a time of

Vietnamese subsidies, such as a bunch of

morning glory, honeycomb sandals, a box of

2 shrimp noodles, and so on, with the slogan

"Local StreetWear," made a breakthrough at

If Bo Sua focuses to middle and high school students, Infamous serves to working people, Be Sua caters to young people, and Bazic serves to the

populace

According to international standards, all BOO brands were merged to form three primary Bo Sua lines: Bo Sua Graphic BOO successfully signed

an investment collaboration agreement at the end of 2017, marking the start

of a new period of sustainable development The name of the corporation was changed to "BOO Trading Joint Stock Company."

Bo Sua changed its name to BOO - the brand that started the label - in 2019, for the first time after ten years of continuous development This return

guarantees that the brand's original worth will be fully restored while being current in fashion and imbued with the street's liberal attitude

BOO had worldwide "handshakes" during this time as well DC Comics

(Batman - Superman), Larva, Disney: Star Wars, Mickey, Marvel Comics, and other worldwide brands have collaborated with Bo Sua to offer official

copyrighted collections

Experiencing nearly 13 years with creative fashion thinking, imbued with national identity Many Vietnamese teenagers admire Bo Sua Bo Sua today has 7 agents and 32 outlets in 63 provinces and cities throughout Vietnam, in addition to the promotion of well-known celebrities

 BOO’s line of business

1 Textile

2 Printing: printing packaging, labels, forms

3 manufacture of ceramic products

4 Producing cloth masks, medical masks, gloves and medical protective clothing

5 Design product; buying and selling all kinds of clothes; raw materials

6 Commercial advertising, advertising

7 Clothing and footwear retail

8 Vocational training, market research

 Tiktok

TikTok is a social media platform for creating, sharing and discovering short videos The app is used by young people as an outlet to express themselves through singing, dancing, comedy, and lip-syncing, and allows users to create videos and share them across a community Amateur and professional creators alike can add effects like filters, background music, and stickers to their videos, and can collaborate on content and create split-screen duet videos even if they're

in different locations

Fashion trends dominate TikTok’s fashion content These appear on a users’ FYP (for you page) and can feature anything from a clothing haul to styling inspiration TikTok provides an accessible platform for creators, which is why these fashion trends and the products included often go viral Whether you use TikTok or not, the global social media app has become one of the most

influential platforms for the fashion industry With the hashtag #FashionTikTok trending with over 15.9 billion views, this massive community is only

continuing to grow

Cassandra Russell, Head of Fashion, Luxury, Beauty and Retail Brand

Partnerships (EMEA) at TikTok, said: “The impact the TikTok community has made on the fashion industry this year has been incredible, from driving new fashion trends like #cottagecore, to bringing back old ones like #Y2KFashion or

#upcycling TikTok has fast become a home for fashion creators, designers and stylists to find their voice, collaborate, share their unique style and create the next big fashion trend

“TikTok is all about creativity and self-expression, which has huge synergies with the fashion industry As the community continues to creatively interpret trends in new ways, conventional style rules are challenged and real originality

is born on the platform.”

This platform attracts a big number of GenZ, including well-known and important celebrities In the first quarter of 2022, Tiktok officially passed the 2 billion user, surpassing other big applications like as Twitter, Pinterest, and Tumblr, among others Tiktok has surpassed Instagram as the most popular video and image sharing app It's not difficult to see how Tiktok is having an expanding impact on the fashion sector

Assembly of Vietnam, which is the competent authoritative force The political climate is stable, and the legal system is improving, resulting in favorable

economic conditions

About economic development policy: Our country is industrialization and modernization, creating all favorable conditions for the system of preferential tax policies to encourage the development of enterprises Every year, the state spends quite a lot of budgets on building infrastructure, bridges, roads, and

ancillary works that indirectly affect economic activities In addition, our

country has exchange relations with many countries, creating favorable

conditions for our exports around the world and looking for partners to develop foreign markets

 Economic:

The covid-19 pandemic has had a huge impact on Vietnam's economy The impact of the epidemic reduced fashion market revenue by more than 10% in

2020 compared to 2019 In which apparel accounts for more than half of the industry's entire revenue When people began to shop online, communication channels and online shopping grew dramatically Lazada generates over half of all online fashion retail channel revenue, followed by Sendo, Facebook, Tiki

About income: Out of which, the country’s per capita earnings were 2.786 dollars

About exchange rate: In recent years, foreign currency exchange rate has increased volatility For fashion companies, the increase in exchange rate has a strong influence on business results because Transportation prices are three times greater than the five-year norm The covid 19 pandemic, on the other hand, has raised consumer demand for masks and medical protective gear, which

is considered as a symbol of the textile industry's endurance amid the crisis

About growth rate: Vietnam's economic growth rate directly and strongly affects the growth rate of business lines In recent years, according to the

General Statistics Office of Vietnam, Vietnam's economy has experienced rapid growth The country's economic development rate in 2018 reached 7.08%, the highest in the past 10 years, decreased slightly to 7.02% in 2019 and in 2020 reached an estimated economic growth rate of 2.9% But is one of the few

countries in the world with positive economic growth due to the impact of the COVID-19 pandemic

Many countries, including Vietnam, are suffering from the effects of the current COVID-19 pandemic It is critical to restore and stabilize the

Vietnamese people's demand for goods

 Socio-cultural:

Vietnam is a country with a young population that uses the Internet at a high rate People in Vietnam are quick to adapt to online buying Data shows that by the first half of 2021, Vietnam would have added more than 8 million new

online consumers, with 55 percent of them coming from rural areas

The present generation of genZ, in particular, is concerned with ecologically responsible fashion products and a strong sense of national pride They have a higher need than earlier generations to demonstrate their personal identity As a result, "Local Brand" was formed with the mission of ensuring that Vietnamese people use Vietnamese products at reasonable costs, that they can be purchased directly, and that they are appropriate for students' economic levels - students should be the keyword at this time "Vietnamese streetwear brand" and

"Vietnamese local brand" are important to Gen Z

 Technological:

TikTok has created a set of very distinct and diverse features and tools that are not available on other platforms Unlike other social networking and e-

commerce platforms, which require time to evaluate user behavior, the user's personality is used to select the audience that will receive content whenever the user adds new content Tiktok's algorithm works in the opposite direction; they test-distribute content to a small number of users to check, and they're ready to immediately expand the distributed audience once the tested episodes confirm a good signal

This is especially important for new sellers; before the possibility to

disseminate content, all businesses will be treated the same, regardless of

whether they are new or old, have few or many followers All that is required is for everyone to concentrate on producing high-quality material, and chances will appear practically immediately On the other hand, "bad" evaluations from other people or brands that try to drown their products can still pose a threat to brands

TikTok has approximately 13 million monthly active users in Vietnam, according to the statistics website Q&Me In Southeast Asia, Vietnam has the most Tiktok users According to estimates, 13 million Vietnamese people will use the internet by the end of March 2020 Students, aged 12 to 24, make up the majority of the age group Each user uses TikTok for an average of 28 minutes every day

The rise of this social network has given birth to a new generation of

influencers in which designers are finding a certain appeal to their authentic content compared to many other social networks TikTok has proven to bring the fashion industry closer to the millennials and Gen Z’s of our time, which surprisingly has grown a number of high fashion brands sales – leading labels to understand that the fasted way to reach their potential consumer is through

TikTok stars

 Environmental:

Local Brands is nearly usually a fast fashion market, allowing new brands to expand quickly and profitably However, the negative effects on the

environment are proportional to that development, and we urgently need

efficient and timely solutions to address them

These firms provide buyers the ability to keep up with the newest fashion trends

at a fraction of the cost by releasing collections on a quarterly or monthly basis The fast-fashion market has an impact on the fashion industry and helps it

thrive However, this has detrimental consequences for the ecosystem After the oil sector, the fashion business is regarded as the world's second-largest polluter Because of the energy consumed in production, manufacturing, and

transportation, it contributes for 10% of world carbon emissions

Businesses and consumers have become increasingly interested in online buying as a result of the Covid-19 pandemic and the requirements for distance, blockade, and contact restriction Many consumers no longer want to go to retail establishments to buy items directly after a period of online shopping; they

believe that online shopping takes much longer than online shopping

 Legal:

The Justice Department has long advised the Government, the National Assembly, and authorities at all levels to fully and quickly institutionalize the Party's rules and policies; Contribute to the development and refinement of a basic legal system that is appropriate, synchronous, unified, transparent, and feasible for people and enterprises, resulting in advantageous conditions for both In particular, in 2021, legal issues arising from the COVID-19 epidemic that need to be reviewed, amended and supplemented to complete and adapt to the new situation is one of the tasks placed on the shoulders of the Justice sector very heavy responsibilities In the context of many difficulties in terms of

resources, the sector promptly coordinated with the Government advisory

agencies and authorities at all levels to develop and complete documents related

to epidemic prevention and control; mechanisms and policies to support

businesses and employees affected by the epidemic, ensuring the legitimate rights and interests of the people

You only need to be 18 years old and have a legal entity in Vietnam to put your brand on Tiktok (including an Enterprise business license, an individual business household registration license)

With the development trend of the region and the world, the state has

promoted and reformed the mechanisms Laws and regulations that represent this change: Vietnam's domestic and foreign investment law, current tax laws that are unified in favor of all economic sectors, environmental protection laws, laws food safety protection, corporate law and copyright law These

requirements compel the corporation to implement, if slowly at first In the new

trend, a company that wants to survive and grow must constantly update its regulations and requirements in order to maintain a competitive advantage in both domestic and international markets

2.Porter’s Five Forces

replaced at any time

As a result, input prices for this industry are relatively low and will stay there until the global development gap closes up significantly

Finding a trustworthy supplier with extensive expertise, production capacity, warranty, defective goods handling, and customer service is difficult As a

result, it is simple to grasp when comparing the same manufacturer to a different brand This is particularly problematic since suppliers can steal exclusive

production ideas or favor companies with higher purchases

With virtually no barrier to entry and little to no technical knowledge needed

to enter, the threat of suppliers becoming competitors is very grave, and hence the power that the supplier hold is high

Another reason for this is the fact that the quality of raw material plays a vital role in the brand’s image, and procuring the same quality raw material from

a different vendor is a difficult task also, the cost of replacing the supplier is high

Therefore, the overall Bargaining power of suppliers for Bo Sua is Moderate

to high

 Power of consumer:

The Bargaining power of the customer is relatively on the higher side, there

is little to no cost of switching, and the competition is fierce; the customer can

easily switch to the competitors, the influence of the customers in this industry is significantly higher and hence the bargaining power

Bo Sua's clientele ranges from young children to people who have worked hard to develop an active lifestyle (5 years old - 35 years old) Furthermore, buyers who like the brand are young individuals aged 14 to 24, with a

purchasing power ranging from 200,000 VND to 3,000,000 VND per product This is the same type of customers that use social media the most; they often check Tiktok for popular content and have a strong desire to express themselves

However, the customers usually don’t bargain as the brand already provides apparel at a cheaper rate than the competitors while maintaining the quality

After taking all the points into account, we can say that for Bo Sua, the

Bargaining power of the customers is moderate

 Potential of new competitions:

With the rise of social media and the high demand of today's youth, a slew

of new local companies have emerged with the goal of imitating or replicating other brands, as well as using low-cost ink to compete with established local brands such as Bo Sua Furthermore, they must compete with overseas

companies such as Uniqlo, Muji, and Tokyo Life, which have entered Vietnam

in recent years

Bo Sua has a competitive advantage over these competitors because they have their own positioning strategy, long-standing brands that have won the hearts of Vietnamese customers, and local businesses have the advantage of understanding the market and consumer needs Foreign competitors or new local brands do not understand the Vietnamese physique as well as Vietnamese do

 Potential of substitute:

The GenZ generation has a proclivity for imitating celebrities, most

particularly in terms of clothing and style As a result, brands must continually keep up with the latest trends in order to remain relevant to their target

audiences And it is in this area that Chinese local products excel

Products from China with a dense appearance on Tiktok by reviewers, even more than Vietnamese brands Sleek design, good quality comes with a much cheaper price than Bo Sua A T-shirt of Bo Sua currently costs an average of about 350,000 VND, but you can easily buy a domestic T-shirt from China with similar design and quality, for about 120,000 to 150,000 VND Unique source, good quality, good design and affordable price is the reason why Chinese

clothes always attract young customers The fashion products here such as

clothes, shoes, bags always have beautiful designs, the product models are constantly updated with trends, suitable for consumer tastes and account for the majority of the products goods are consumed in Vietnam Chinese goods are always known for their extremely cheap prices, so it is easier to do business than high-priced genuine high-end products Because of the low price, the quality is not inferior, so now on the market, most of the items on sale are of Chinese origin Not only that, importing Chinese goods is also relatively easy due to the close geographical distance and cultural similarities, so the delivery time is also fast, so it is always guaranteed regular volume to serve customers

 Direct competitors:

BOBUI

BOBUI is a Vietnamese fashion brand and clothes maker started in July

2014 by Nguyen Thanh Dung in Saigon

BOBUI is focused on casual fashion as well as hip-hop, rock, street, and youth culture styles in general

With a commitment to self-respect and the preservation of national cultural traditions BOBUI recognizes the need to alter and raise understanding about product quality and design so that the young generation in particular, as well as Vietnamese people in general, may confidently use products made by