00051000772 building the business strategy for hanoi elevator and electrical equipment jointstock company (hnee) duration 2023 – 2028

00051000772 building the business strategy for hanoi elevator and electrical equipment jointstock company (hnee) duration 2023 – 2028

Reasons for choosing the research topic

Hanoi Elevator and Electrical Equipment Joint Stock Company (HNEE) is a prominent player in Vietnam's elevator and escalator market, specializing in both trading and installation HNEE offers a diverse range of products from renowned global brands, including Schindler, Kone, Kohler, Mitsubishi, and Matiz.

The Covid-19 pandemic led to a significant stagnation in the elevator market, causing delays in construction projects However, as the market rebounds post-pandemic, there is a strong surge in demand for elevators, presenting a substantial growth opportunity for elevator businesses like HNEE This is evidenced by HNEE's impressive 68% increase in sales in the first quarter of 2022 compared to the average sales from 2019 to 2021.

To establish a strong market presence and drive sales growth, HNEE requires a robust business strategy that effectively creates a competitive advantage over its rivals This necessity has led to the selection of this topic for the master thesis.

Objectives of the study

This study aims to formulate a comprehensive business strategy for HNEE in the elevator sales and installation sector within the Vietnamese market over the next five years, specifically from 2023 to 2028 The strategy will be defined through a set of specific objectives.

- To assess how the internal and external environment affects the company's business

- To evaluate the current busienss strategy of Hanoi Elevator and Electrical

- To formulate the businees strategy for HNEE to achieve the set goals for the period of 2023-2028.

Research scope

- Main content: business strategy of Hanoi Elevator and Electrical Equipment

Joint Stock Company (HNEE) to improve business efficiency and competitive position in the Vietnamese market

- Key products: Elevators and escalators distributed by HNEE come from famous brands in the world such as: Schindler, Kone, Kohler, Mitsubishi,

- Research period: From May to October 2022

The research analyzes general issues for the development of the business strategy of Hanoi Elevator and Electrical Equipment Joint Stock Company

(HNEE), does not go into analysis of specialized issues.

Research Methods

This thesis employs a qualitative research method, utilizing a questionnaire to assess customer needs for HNEE's elevator products Additionally, the researcher gathers secondary data from market reports and internal financial statements to analyze and compare the competitiveness of industry enterprises Consultations with economic experts, company leaders, and employees further enrich the research The findings lead to the development of a SWOT matrix and related strategies, ultimately aiming to identify optimal solutions for enhancing business efficiency.

Hanoi Elevator and Electrical Equipment Joint Stock Company (HNEE).

Scientific and practical significance of the research topic

Strategic management, an established field in higher education, remains underutilized in practice, with few companies developing systematic and original strategies.

This thesis aims to enhance the practical application of strategic management within Vietnamese enterprises, ultimately contributing to a valuable repository of strategic management experiences tailored for the Vietnamese business landscape.

Thesis structure

Thesis has the following structure:

In addition to the introduction, conclusion, list, tables, list of acronyms, the content of the thesis is presented in 3 chapters:

Part I: Theoretical basis of business strategy in the business organization

The first chapter outlines the definition of "business strategy" and categorizes various types of business strategies according to different criteria and research It presents a structured analytical framework for strategic planning aimed at developing an elevator trading and installation business in Vietnam.

Chapter II: Assessment of internal and external environment and overview of strategy development at Hanoi Elevator and Electrical Equipment Joint Stock Company (HNEE)

The second chapter analyzes HNEE's internal and external environment, focusing on the impact of political, economic, technological, and legal factors on the business It explores the distribution and installation market for elevators to gain insights into industry competition and potential competitive advantages Additionally, a value chain analysis is conducted to identify internal strengths and weaknesses.

Chapter III: Building the business strategy for Hanoi Elevator and Electrical Equipment Joint-Stock Company (HNEE) duration 2023 –

2028 on the basis of assessment and analysis

The third chapter focuses on selecting an effective business strategy by establishing clear priorities and creating comprehensive executive plans It also offers recommendations for monitoring the execution of new strategies.

THEORETICAL BASIS OF BUSINESS STRATEGY IN

Concept of business strategy and strategic management

Historically, strategic thinking was primarily associated with military applications, but it has since evolved to encompass business contexts, integrating elements of strategy and leadership To effectively analyze strategy, it is essential to first define what strategy entails, as various definitions exist, reflecting the perspectives of different authors Alfred Chandler, a pioneer in strategic management, defined strategy in 1962 as the determination of long-term goals and objectives, along with the acceptance of a sequence of actions and resource allocation necessary to achieve these goals Similarly, in 1980, Quinn described strategy as a pattern or plan that harmonizes an organization's goals, policies, and action sequences into a cohesive framework.

Mintzberg introduced the concept of strategy with the 5Ps (1987):

- Plan: A consistent sequence of planned actions

- Partner (Pattern): Consistent behavior over time

- Position: The fit between the organization and its environment

- Perspective: A way of perceiving the world deeply

- Ploy: A specific way to deceive an opponent

According to Fred R.David (Fred R.David, 2006): business strategy is the means to achieve long-term goals

Business strategy, as defined by Harold Koontz (1993), involves identifying the fundamental and long-term objectives of an organization while also outlining the methods, action plans, and resource distribution necessary to achieve these goals.

According to Michael E.Porter (1996): strategy is the creation of a unique and valuable position that includes differentiating activities, choice, competitive trade-offs, and matching activities and company action

Strategy is generally defined as a collection of key goals, policies, and plans aimed at achieving specific objectives, outlining the business activities a company is currently engaged in or plans to undertake (Nguyen Thi Lien Diep et al., 2006) Mintzberg has categorized strategic management into 10 theoretical schools, which are further divided into three primary groups.

Group 1: School of rules or directives

The Designing School emerged in the late 1950s and early 1960s, emphasizing strategy as a cognitive process This perspective contrasts with the studies of Selznick and Chandler, as well as the SWOT model The straightforward approach of this school significantly influenced its planning process.

The Planning School, established in 1965 with the release of Ansoff's Corporate Strategy, emphasized strategic planning as a standardized process involving complex models and rigorous testing stages This approach was prevalent during the 1970s; however, it faced significant challenges in the early 1980s and ultimately declined by the 1990s.

The Positioning School, introduced by Porter in the 1980s, emerged alongside the military perspective, which draws on Sun Tzu's tactics, and the consulting perspective, exemplified by the Boston Consulting Group (BCG) models and the Profit Impact of Market Strategy (PIMS) developed in the 1960s This school remains influential and is widely utilized in the creation of contemporary strategic models.

Businessism School: Although this school was in vogue in the 1980s, it

The concept of visionary leadership has been a cornerstone of economic development, as argued by notable authors such as Schumpeter (1944) and Cole (1959) According to these thought leaders, the views and perspectives of visionary leaders play a pivotal role in driving economic growth This fundamental idea laid the groundwork for the emergence of visionary concepts and strategic thinking in the 1980s, revolutionizing the way businesses and economies approach development and innovation.

The Cognitive School, emerging in the 1980s, highlights the significance of psychology in strategy formation as a mental process It explores how psychological experiences shape cognitive capacities, influence decision-making, and affect the evolution of strategies over time A notable example is 3M, which integrates strategic events into its business planning by promoting the idea that "writing is thinking." This approach encourages employees to create narrative business plans, fostering clarity in strategic thinking and enhancing commitment by allowing individuals to see themselves within the narrative.

School of Learning: In this school, it is thought that strategy is a conspicuous process Strategic planners accumulate knowledge over time, gain experience, and improve their understanding of an organization's ability to execute strategy formulation effectively In the 1990s, this theory became very popular, and in the following years, the Learning School still had great impacts

The Political School, which emerged in the 1970s and thrived through the 1990s, emphasizes strategy formation as a process of building strength This approach highlights the importance of negotiation in developing strategies, particularly in the context of globalization and the ongoing transformation of business organizations.

The Cultural School highlights the critical role of organizational culture in sustaining strategic success, a concept that gained prominence in the 1980s when Japanese firms outperformed their American counterparts Influential scholars from the Scandinavian Academy have further explored this perspective, emphasizing its relevance today In contemporary marketing, the significance of fostering a market-oriented organizational culture remains widely recognized and valued.

The Environmental School, which emerged in the late 1970s, posits that organizations are inherently passive and that their strategic formulation is largely a reaction to external conditions rather than driven by internal processes Mintzberg critiques this perspective, suggesting that it lacks relevance and coherence.

This school integrates nine distinct perspectives into a cohesive model, emphasizing that strategy formulation is a critical stage where organizational structures align with specific environments Mintzberg strongly supports this view, predicting the school's continued growth His analysis of ten schools offers a theoretical framework that clarifies various perspectives on the strategic planning process among planners, managers, consultants, and academics Ultimately, there is no universally correct approach to planning; an effective strategic planning process must be consistent and tailored to the unique circumstances of each business.

Strategic management is the art and science of formulating, implementing, and evaluating cross-functional decisions that help an organization achieve its goals (Fred R.David, 2006)

In addition, there are currently many different conceptions of strategic

Strategic management is a decision-making process that connects an organization's internal strengths and weaknesses with the external environment's opportunities and threats This approach emphasizes the importance of being environmentally oriented, enabling companies to capitalize on opportunities while mitigating potential risks.

The "Goals and Measures" approach in strategic management involves a series of decisions and actions that shape a company's long-term performance This method enables managers to clearly define organizational goals, which serve as the cornerstone of effective governance, while optimizing the use of the organization's resources for greater efficiency.

The role of strategic management

Helping businesses achieve organizational goals:

Environmental conditions are continually evolving, presenting both opportunities and threats to businesses A strategic orientation enables organizations to capitalize on these opportunities and gain competitive advantages, allowing them to formulate development policies aligned with their goals Additionally, it helps forecast uncertainties and risks, empowering business owners to adapt to changing circumstances based on their capabilities.

- Help managers effectively use the existing resources of the business, allocating them appropriately Therefore, business managers can coordinate the functions in the business in the best way for the common goal of the organization Studies show that companies that apply strategic management have much better results than previously results and the results of companies that do not apply strategic management (Nguyen Thi Lien Diep and associates, 2006)

Tools to provide information for business strategy development

This matrix summarizes and evaluates the important strengths and weaknesses of the functional business segments, and it also provides a basis for identifying and evaluating the relationships between these segments The IEF Matrix is developed in five steps:

Step 1: Make a list of the key success factors as identified during the internal factors assessment This category includes 10 to 20 factors, including strengths and weaknesses

Step 2: Rank the importance from 0 (not important) to 1 (very important) for each factor This classification shows the relative importance of a factor to the success of firms in the industry The sum of the critical levels should be 1

Step 3: Classify from 1 to 4 for each factor, where: 1- represents the greatest weakness, 2 is the smallest weakness, 3 is the smallest strength, 4 is the greatest strength

Step 4: Multiply each factor's importance by its classification to determine the importance score

Step 5: Add the total importance score for each factor to determine the importance score

Regardless of the number of elements in the IFE matrix, the highest total is 2.5 A total score greater than 2.5 indicates that the business is strong on internal scores and vice versa

1.3.2 The matrix of external factors (EFE)

The matrix of external factors (EFE) helps us to summarize and quantify the influence of the environment on the business Develop a five-step EFE matrix:

Step 1: Make a list of factors that play a decisive role in the success of the business This category includes 10 to 20 factors, including opportunities and threats affecting the business and industry

Step 2: Rank the importance from 0 (not important) to 1 (very important) for each factor The classification shows the relative importance of that factor to the success of the business industry of the enterprise The appropriate level of classification can be determined by comparing successful businesses with unsuccessful firms in the industry or discussing and reaching consensus within the strategy team The sum of the classification levels must be 1 As things are classified based on industry

Step 3: Classify 1 to 4 for each success factor to show how the company's current strategies respond to these factors In which: 4 - good response, 3 - above average, 2 - moderate and 1 - weak These levels are based on the strategic performance of the business

Step 4: Multiply the significance of each variable by its classification (= step

2 x step 3) to determine the importance score

Step 5: Add up the total importance scores for each variable to determine the total business importance score regardless of the number of opportunities and threats in the matrix The highest total significance score that a company has possible is 4.0, lowest is 1.0 and average is 2.5 A total critical score greater than 2.5 indicates that the company is taking advantage of opportunities and limiting environmental threats to a moderate level

The competitive image matrix is a strategic tool that identifies key competitors, assesses their unique strengths and weaknesses, and evaluates their overall performance By extending the evaluation matrix of external and internal factors crucial to business success, this matrix provides a comprehensive analysis of competitors The total score of each competitor is calculated and compared to the company under study, yielding valuable strategic insights The construction of the competitive image matrix parallels that of the external factor evaluation matrix, offering a systematic approach to competitor analysis.

Methods of building a business strategy and the steps of each method 11 1 SWOT Matrix

Strategic planning methods often incorporate various analytical models, including the SWOT assessment matrix, the Definable Strategic Planning Matrix, the Quantitative Strategic Planning Matrix (QSPM), the PEST Model, the Blue Ocean Strategy, Michael Porter's Five Competitive Forces, and the Balanced Scorecard (BSC).

This thesis employs a comprehensive strategic planning approach, integrating SWOT analysis with Quantitative Strategic Planning Matrix (QSPM) analysis, to devise the most effective business strategy By combining these two methodologies, a thorough examination of internal strengths and weaknesses, as well as external opportunities and threats, is conducted The QSPM analysis then quantitatively evaluates and prioritizes the resulting strategies, ensuring the selection of the most suitable approach for the business This dual-method approach enables a robust and data-driven strategic planning process, ultimately informing business decisions and driving growth.

The SWOT matrix is a high-level model used at the outset of an organization's strategic planning SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats In which, strengths and weaknesses are considered as internal factors, while opportunities and threats are considered as external factors

Any pattern, or strategy, has strengths and weaknesses Understanding the advantages and disadvantages and applications of the SWOT matrix will help implementing the business plan in a better way

In addition, by conducting a dissecting analysis of the business situation in the process of market research We will have the opportunity to come up with groundbreaking new ideas Thereby promoting continuous innovations and creativity, limiting future risks

The SWOT matrix is an important matching tool that can help managers develop four types of strategies:

- Strength-Opportunity (SO) Strategies: These strategies use the firm's internal strengths to take advantage of external opportunities

- Weakness-Opportunities (WO) Strategies: WO strategies aim to improve internal weaknesses by taking advantage of opportunities from the external environment

- Strengths-threats (ST) strategies: These strategies use the strengths of the business to avoid or reduce the impact of external threats

- Weakness-threat-threats (WT) strategies are defensive strategies aimed at reducing the internal weaknesses of the enterprise and avoiding threats from the external environment

To build a SWOT matrix, it is important to identify the major opportunities and threats from the environment, and the core strengths and weaknesses The next step is to combine strengths, weaknesses, opportunities, and threats into four pairs of SO, WO, ST, WT strategies and write them in the appropriate boxes of the matrix according to the model in the appendix

The SWOT matrix provides possible strategies to choose from and the QSPM matrix is a tool to be able to decide which strategy is best for the business The QSPM matrix uses input factors thanks to information-providing tools to build a strategy, which is analyzing the EFE and IFE matrix and combining the results of the analysis in the SWOT matrix to make an objective decision Which of the strategies is the best alternative?

To develop a QSPM matrix, there are six steps as follows:

Step 1: List important external opportunities/threats and internal weaknesses/strengths

Step 2: Categorize each of the key internal and external success factors This classification is the same as in the IFE and EFE matrices

Step 3: Identify alternative strategies the company should consider implementing Group strategies into separate groups where possible

Step 4: Determine the attractiveness score (AS) of each strategy The attractiveness score represents the relative attractiveness of each strategy relative to the others Only strategies from the same group can be compared The number of attractive points is classified as follows: 1 = not attractive, 2 slightly attractive, 3 = quite attractive, 4 = very attractive If the success factor has no influence on the choice of strategy, then no attractive score is given to the strategies in this strategy group

Step 5: Calculate the total attractiveness score (TAS), which is the result of multiplying the classification score (step 2) by the number of attractiveness step 4) in each row

Step 6: Calculate the total attractiveness score for each strategy It is the sum of the total number of attractive points in the strategy column, the higher the score indicates the more attractive the strategy

The theoretical basis presented in Chapter 1 will be the foundation for analyzing and evaluating the operation of Hanoi Elevator and Electrical Equipment Joint Stock Company along with influencing factors, from which to consider and develop a business strategy, which is most suitable for the period 2023-2028

CHAPTER II: ASSESSMENT OF INTERNAL AND EXTERNAL ENVIRONMENT AND OVERVIEW OF STRATEGY

DEVELOPMENT AT HANOI ELEVATOR AND ELECTRICAL EQUIPMENT JOINT STOCK COMPANY (HNEE)

About Company HNEE

Here is the rewritten paragraph:Established in Hanoi on July 12, 2012, Hanoi Elevator and Electrical Equipment Joint Stock Company (HNEE) has capitalized on the vast potential of Vietnam's elevator market Through strategic business planning, rigorous personnel training, and collaboration with global industry leaders like Mitsubishi, Schindler, and Kohler, HNEE has developed a highly skilled and experienced team By investing in ongoing technical education and expertise, HNEE has become a leading supplier and installer of elevators in Vietnam, proud of its reputation for delivering complex projects with precision and flexibility.

With over a decade of development, HNEE has consistently prioritized product quality and customer experience, adhering to its motto "Customer satisfaction is our pride." This commitment has earned the company absolute trust from major partners and customers in both domestic and international markets, solidifying its position as a leading enterprise in the field of supplying, consulting, designing, constructing, and installing.

 Elevators and escalators of Mitsubishi, Matiz, Schindler, Kohler, Fuji, Nippon, Montanari, Ziehl Abegg, Sharp

 Components, details of elevators and escalators, air conditioners, generators in Vietnam

 Maintain and maintain genuine products of escalators, elevators, and automation equipment at home and abroad

 Automatic parking system for works high-rise buildings and IBMS intelligent building management system

HNEE has its headquartered at: 12th floor, Landmark 72 building - Keang Nam, Me Tri Ward, Nam Tu Liem District, Hanoi

Office and showroom at: U04 - L52, Do Nghia Urban Area, Yen Nghia Ha Dong, Hanoi

In 2013, HNEE has built a production factory at: No 74, No 511, Bao Chua Hamlet, Nhuan Duc Commune, Cu Chi District - City Ho Chi Minh

In 2015, branch 1 was established at: No 106 Nguyen Van Troi, Ward 8, Phu Nhuan District, Ho Chi Minh City

In 2016, branch 2 was established at: No 10 Giap Van Phuc Street, Nam Giang Group, Xuong Giang Ward, Bac Giang City

In 2018 established 3 branches at: Adjacent to N1 30 Trau Cau Garden Urban Area, Binh Thanh Street, Vo Cuong Ward, Bac Ninh City

HNEE has been in the market for 11 years and, despite a modest market share, has experienced significant growth in recent years, positioning itself for stability and expansion However, the Covid-19 pandemic over the past two years has caused market stagnation and an economic downturn, resulting in a slowdown in the company's revenue and profit growth, although it continues to achieve market growth.

Sales and service provision revenue in 2021 increased by 78.9% compared to

2020, from VND 85.5 billion to VND 153 billion In 2022, revenue increased from VND 153 billion to VND 186.3 billion, up 21.87% over the same period in 2021

Every year, the company always achieves a positive profit after tax, specifically in 2021, profit after tax increases by 213% compared to 2020 In

2022, profit after tax increases less, only 46% compared to 2021

Table 2 1 HNEE's business performance from 2020-2022

Revenue from sales of goods and provision of services

Analyze internal factors

2.2.1 Assess the factors of internal environment

Basically, the company has built an apparatus according to the model of functional departments Here is the organization chart:

In which, employees of the departments include the following titles:

- Finance - Accounting Department: Head of Finance - Accounting Department, Accountant

- Technical Department: Head of Technical Department, Technical staff

- Project Management Department: Installation team leader, Installation staff

- Sales Department: Sales Manager, Sales staff, business associates

- Marketing Department: Outsourced human resources

Here is a rewritten paragraph that captures the essence of the original content:"HNEE's organizational structure is primarily functional, with departments operating in line with job-specific characteristics, yet it remains incomplete Notably, the company lacks a dedicated human resources department, relies on outsourced marketing services, and struggles with stability Furthermore, decision-making processes are also impacted, hindering the company's overall efficiency and effectiveness."

Because it is a joint stock company, major decisions of the company related to policies and strategies must be made at a meeting of the Board of Directors However, the General Director holds 90% of the shares, so he has a high degree of self-determination, then making decisions is very quick and timely, does not take too much time to discuss, but at the same time, business decisions may be influenced by subjective opinions of the Leader

HNEE's personnel is divided into 2 groups: permanent staff and seasonal staff

The fixed permanent staff belongs to the official number of the company, receives a fixed monthly salary and sales commission This group of employees are mostly in the age of 24-35, young and dynamic, most of them are trained with undergraduate and graduate degrees However, the professional knowledge about the elevator industry has not been intensively trained at Vietnamese universities, so employees need a period to receive professional training when entering the company

Seasonal staff is a group of employees who are contracted project by project and are paid according to the assigned task in eachprojects This group of employees is quite diverse in age and technical level, not required to have a degree, but a certificate of technical training is necessary

Training and education are highly paid attention by HNEE

Electrical engineers in the Technical Department will undergo a training program led by the Head of the Electrical Engineering Department and an expert from elevator companies This training lasts between 2 to 6 months, after which employees will receive an “installation certification” from the company's experts.

For the group of mechanical installers under the Project Management Department, when they first join the company, they will be trained by the Head of the Project Management Department in conjunction with an expert from elevator companies The training period is from 3 to 6 months After the training period by the company's Experts, employees will be issued with an installation certificate When working experience of 3 years or more, mechanical installation staff can develop their own technical team and become team leader

For the group of sales staff under the Sales Department, when first joining the company, they will be trained by the Sales Manager in conjunction with an expert from elevator companies Sales Manager provides training on business operations, Experts from elevator companies provide training on product technical features

Our company's salary and bonus policy is tailored to the unique demands of each department, rather than solely following market standards For instance, the Technical and Finance-Accounting Departments offer overtime wages in addition to fixed salaries, reflecting the frequent need for work beyond regular hours In contrast, the Sales Department provides commissions based on revenue generated from customer contracts, while the Project Management Department employs a contract-based salary structure due to its reliance on seasonal workers Ultimately, our salary packages are influenced by the labor market situation and are subject to periodic adjustments to ensure competitiveness.

The development of an appropriate salary policy makes the company able to maintain a core staff, only frequent personnel changes with seasonal groups and business collaborators, this does not affect the company to the company's apparatus as well as its core operations

With the characteristics of the elevator business, the company must always set aside a reserve fund for orders Therefore, it is necessary to ensure a healthy financial situation, to meet the needs of cash flow when not promptly recovering debts of completed projects HNEE's financial position is affected by elevator projects that usually last from 3 months to a few years, leading to long collection of debts of the company, resulting in affected working capital Besides, the charter capital of the company is not large, only about 30 billion VND

In the home elevator segment, HNEE holds the leading market share

For the segment of high-rise elevators (apartments, office buildings…) and goods elevators in industrial parks, the market share is not high

By possessing in-depth knowledge of its target market, the company holds a significant competitive advantage, enabling it to swiftly comprehend and effectively cater to the needs of its potential customers, thereby fostering a strong customer-centric approach.

HNEE offers a range of key products, including passenger elevators and escalators from renowned brands such as Mitsubishi, Matiz, Schindler, Kohler, Fuji, Nippon, Montanari, Ziehl Abegg, and Sharp By distributing products from these established and reputable manufacturers, HNEE enjoys significant brand recognition and awareness in the market.

- Supply components, spare parts of elevators and escalators, air conditioners, generators in Vietnam

- Service and maintenance of genuine escalators, elevators, automation equipment at home and abroad

- Supply and installation of automatic parking system for buildings, high-rise buildings and IBMS intelligent building management system + Quality of service

HNEE is dedicated to offering authentic products and components, ensuring a warranty period of up to 18 months Our team is available 24/7 to address any issues that may arise Additionally, all elevator products from HNEE come with lifetime product liability insurance for added peace of mind.

Time to deal with problems quickly and promptly Service Level Agreements (SLAs) commit when there is an elevator problem: inner city Hanoi and TP

Ho Chi Minh City: within 30 minutes of receiving the notice Other provinces/regions: 1 hour from receipt of notice

In the elevator installation business, products are provided to customers through three main distribution channels: brokers, agents and directly

Here is the rewritten paragraph:Through strategic partnerships with architects, construction contractors, and building material suppliers, the company's brokerage model effectively introduces potential customers to its products This distribution channel yields a high conversion rate, as customers referred by trusted brokers are more likely to sign contracts, driving sales and revenue growth.

Agents: The company's agent network is branches in the provinces (3 branches mentioned in the introduction) The company can provide elevator services to customers in its target market throughout the country and even some neighboring countries such as Laos and Cambodia

Assess the influence of the external environment

2.3.1 Analysis of factors of the macro environment

2.3.1.1 The influence of the economic environment

Vietnam's economy is increasingly integrating deeply with the world economy A series of bilateral and multilateral economic agreements were signed, creating a breakthrough mechanism and driving force for the Vietnamese economy

The positive impact of the macro-economy has affected the construction industry in general and the elevator industry in Vietnam, which is an extremely potential market and has many opportunities for development in many years to come

The global demand for elevators has experienced a significant surge, with an average annual growth rate of 5.9% since the dawn of the 21st century This upward trend culminated in 2020, when the total value of newly manufactured and installed elevator products worldwide reached a substantial figure, underscoring the escalating need for efficient vertical transportation solutions.

128 billion USD (about 3 million billion VND)

The transition of supply chains from China to Vietnam has significantly heightened the demand for constructing facilities in industrial parks, which in turn has escalated the necessity for installing elevators in factories and warehouses.

It is forecasted that from now to 2027, the world elevator market size will constantly expand with more than 1 million new products per year, bringing the number of elevators in use worldwide to 24 million units bringing huge revenue for companies operating in the field of manufacturing, manufacturing, installing and maintaining elevators

The need to build infrastructure and develop the country is increasing day by day A series of public works such as airports, ports, subway stations, offices, schools, factories, office buildings, apartment buildings are invested by the state and private enterprises Along with that, people's quality of life is improved Owning an elevator for moving in the house is no longer a luxury and has become more popular

In Vietnam, elevators are becoming increasingly common, particularly in urban areas like Hanoi and Ho Chi Minh City, which host around 3,000 high-rise buildings The family elevator market is also experiencing significant growth, with installations in villas, townhouses, and tube houses gaining popularity This trend is driven by reasonable pricing, low power consumption, minimal pit requirements, and reduced maintenance costs, leading to a rapid increase in both the quantity and quality of residential elevator systems.

However, within the past 1 year, the real estate and stock markets froze, and bank interest rates increased, reducing the need for infrastructure construction

The Covid-19 epidemic appeared and raged around the world, causing a lot of as one of the few professions that are able to withstand the negative impact of Covid-19, elevator production and business still suffer certain impacts Typically, the import process is affected by Covid and the trade war, the global economy The currency exchange rate fluctuates unpredictably to the profit margin of elevator enterprises in the import-export process

Currently, each year Vietnam imports an average of about 6,000 months of machines and 1.7 million sets of components, proving that the elevator is a narrow industry, but the market is getting bigger

2.3.1.2 Influence of law, government, politics

In recent years, the Vietnamese Government has given priority to promoting infrastructure development with many key transport projects such as metro lines in Hanoi, Ho Chi Minh City, railway stations, airports, ports, etc., the ice system passenger lines combined with intelligent monitoring systems at projects This helps to synchronize local infrastructure with national and regional infrastructure, helping to optimize the problem of "People flow" in urban areas, contributing to sustainable development According to a report by the Ministry of Construction, the elevator manufacturing and trading industry achieved a total revenue of VND 7.6 trillion in the first half of 2020

In response to Vietnam's significant growth potential and challenges in the elevator and escalator sector, the Ministry of Home Affairs established the Vietnam Elevator Association on August 20, 2020, under Decision No 594/QD-BNV This socio-professional organization aims to create development opportunities for businesses involved in the research, production, and trade of elevators and escalators, ensuring compliance with legal standards.

The Vietnam Elevator Association will have 3 main functions: Training and research in the field of elevators and escalators; Organizing activities for fairs and exhibitions, ranking elevators and escalators; Support, advice, intermediary evaluation of elevator and escalator services

Elevators are integral to various aspects of daily life, necessitating oversight by specialized units Occupational safety concerning elevators is governed by the Law on Occupational Safety and Health (2015) established by the National Assembly Additionally, the technical regulations for elevators fall under the jurisdiction of the Ministry of Labor, War Invalids and Social Affairs, as well as the Ministry of Science and Technology.

Because there is a clear legal corridor, elevator businesses and consumers have a basis to understand their responsibilities in business, installation, maintenance and use of elevators

2.3.1.3 The influence of culture and society

Residential elevators, including platform lifts, cabin lifts, and wheelchair lifts, are increasingly popular in residential areas as the population ages These elevators provide essential accessibility solutions for individuals with disabilities In 2023, the global residential elevator market is projected to reach approximately 15.86 billion USD, with Europe being the largest and most established market due to the presence of renowned elevator manufacturers Many of these manufacturers also export residential elevators to countries like China, collaborating with local partners in the real estate industry Despite a slowdown in growth since 2016, the residential elevator market continues to expand rapidly, driven by the demand for enhanced user experiences.

Therefore, to meet the needs of the market, elevator suppliers and installers continuously innovate technology and update advanced products in the world for construction and installation in Vietnam At the same time, several domestic elevator enterprises have imported components and materials to Vietnam to process and assemble elevators This creates a product line that is competitively priced and responds to market demand in a timely manner With a population of more than 98 million people on a total area of more than 310,000 square kilometers, Vietnam has a population density of 317 people/km2 In which, 38% of the population lives in urban areas (by 2020) and is expected to increase to 60% by 2050 With population growth and urbanization among the top in the world, the demand for elevator installation, escalators for office buildings, apartments are more and more in Vietnam According to statistics, the annual demand for elevators and escalators in Vietnam can reach more than 10,000 units

+ The development situation of the industry

According to statistics, the number of companies dealing in the distribution and production of elevators in Vietnam is very large, but the number of companies with famous names and professional reputation is only about 10 companies machine of a major construction contractor said In which, domestic enterprises only have about 2-3 units, and only account for a small proportion of the country's market share

BUILDING THE STRATERY FOR ELEVATORS

Viewpoints, goals

3.1.1.1 The view of the Ministry of Construction in strategic orientation for Vietnam elevator market to 2030

In tandem with Vietnam's expanding market economy, foreign investment, and social development, the Ministry of Construction has prioritized the growth of the construction industry, with a particular focus on the elevator sector The ministry aims to foster a comprehensive and healthy development of the elevator industry to cater to the fundamental needs of businesses, mass organizations, and individuals Furthermore, the Ministry of Construction emphasizes that the elevator industry's development must be closely aligned with Vietnam's robust socio-economic growth, ensuring a harmonious and sustainable progress.

With the approval of Decision No 11/QD-BXD dated January 11, 2023 on the Strategy for Science, Technology and Innovation Development of the Construction Industry to 2030, the Ministry of Construction stated: manufacturing equipment for hoists, cranes, elevators and escalators.” and

One of the primary objectives is to research and implement high-performance building engineering systems, utilizing intelligent control device technology to enhance energy savings and efficiency in buildings, including elevator systems.

3.1.1.2 Enterprise's point of view when building a business strategy for the period of 2023-2028

The company, focused on the Vietnamese elevator market, aligns its strategy with the industry's development direction and the Ministry of Construction Its approach emphasizes creating a business strategy that effectively addresses the elevator needs of businesses, organizations, and individuals, while also introducing the latest global elevator technologies to Vietnam.

 Forecast of Vietnam elevator market development

According to statistics, at present, in Vietnam, there are more than 100 units of business, installation, maintenance and repair of elevators across the country, of which there are 9 enterprises operating with professional reputation, accounting for a percentage of the total number of customers 60% market share According to the statistics of the Materials Research Center (MRC), the smart elevator market is expected to grow at a rate of 16.7% between 2015 and 2022

In the Vietnamese elevator market, there are mainly imported elevators with typical names such as Mitsubishi, Nippon, Fuji (Japan), Schindler (Switzerland), Thyssen Krupp (Sweden), Aritco (Sweden), Kone (Finland), Otis (USA) According to survey data, more than 80% of elevators in our country are imported elevators Imported elevators have many advantages such as strictly controlled quality, diverse models, safety standards Imported elevators are manufactured by reputable longtime elevator companies with diverse designs In addition, imported elevators also apply 4.0 technology, applying high modern advanced technology to the elevator For example, screw elevators, hydraulics with high synchronization of motors combined with smart chips on each elevator part and smart applications Therefore, imported elevators are preferred by investors in large and key projects develop to compete with imported elevator lines Domestic elevators (or joint- venture elevators) are manufactured and processed some parts such as cabins, handrails, floor control panels, Buttons, cabin floors, cabin walls domestically and imported main engines from abroad manufacture That is why this line of elevators also has many outstanding advantages Joint- venture elevators are cheaper than imported elevators because they are produced domestically plus, they are not subject to import tax, so they are suitable for the economic ability of the vast majority of Vietnamese households In addition, because the cabin is manufactured domestically, the elevator can still be installed for projects with non-standard pit sizes

According to data from the Department of Labor Safety, Ministry of Labour, Invalids and Social Affairs, each year Vietnam imports about 6,000 elevators and assembles about 25,000 domestically

According to tapchithangmay.vn, the world's elevator industry is affected to some extent, which also affects the Vietnamese elevator market From the second half of 2021 until now, the real estate market has cooled down significantly, supply outstripping demand Specifically, it is forecasted that the output of elevatorselevators will decrease by about 30% in 2023 and the difficult situation will last into 2024 Economic experts also forecast that the war between Russia and Ukraine may soon end and be over The global economic recovery has begun

However, there are also positive signs In the context that the construction industry is growing after the pandemic, Vietnam becomes a potential market for the development of the elevator sector

Accordingly, the trend of building low-rise villas and luxury consumption will make the Vietnamese market attractive for high-tech integrated elevators designed and crafted with luxurious materials

Vietnamese customers in the low-rise elevator segment are increasingly seeking high-end options, prioritizing not only technology and cost but also safety features and pit size Additionally, they place significant importance on the reputation of the business and the quality of the installation team's workmanship.

Thus, the strong development trend of high-end low-rise urban areas including villas and shophouses has created a demand for high-class villa elevators To meet this demand, some elevator suppliers in Vietnam have imported high-end machines in Europe, which are carefully invested in design and materials Experts estimate that in the next 5-10 years, the trend of environmentally friendly green elevators, multi-utility and safe smart elevators will dominate the market./

HNEE, in collaboration with leading global partners such as Kohler, Matiz, and Schindler, is poised to capitalize on the high-end elevator market by leveraging existing capabilities and exploring new development opportunities for complete imported units.

In addition, domestic partners have also supported and cooperated very well, besides introducing customers, they also supported in training, communication

After nearly 11 years of operation in the Vietnamese market, the company has gradually built up the trust of customers in the services provided by the company, with an increasing number of customers in the company's customer portfolio

Over the years of operation, employees in the company have clearly understood the company's culture and built good relationships with partners and customers In addition, the Company also recruits and trains a team of highly qualified staff These are the premise, the basis for the company to build its goals in the coming years

By 2028, HNEE aims to establish itself as the premier provider of elevators, escalators, and smart parking solutions in Vietnam, while also creating an ecosystem to foster related industries and expand its global reach.

- The average annual growth rate is 40-50%/year

- Increase the company's market share in the market to 3% by 2028 and the company's revenue to reach 1000 billion VND by 2028

- Supplying products to 63 provinces and cities nationwide, expanding the dealer chain, branch offices covering the whole country by 2028

- Exclusively supply Kohler elevator products in Vietnam market before

From the information analyzed above, along with the information from the IFE and EFE matrices, we build a SWOT matrix and a combination of strategies that can be selected as follows:

O1: Elevator industry market has many development opportunities

O2: Population growth and urbanization increase the demand for elevators

O4: Large budget for infrastructure investment from the Government (schools, agencies, etc.)

O5: The wave of supply chain shift from China to Vietnam

Threats (T) T1: Many competitors, fierce industry competition

T2: Real estate market, stock market freezes, bank interest rates rise, reducing the need for infrastructure construction

T3: Currency exchange rate fluctuates unpredictably

T4: Import process affected by Covid and trade war, global economy

T5: There are fake goods, imitation goods, poor quality goods

S1: Quick, timely but subjective decision making

S2: The staff is diverse in age and level, suitable for the specific job

S3: Thorough training, clear and close training schedule

S6: The product's strong brand advantage

S7 Strong and effective marketing activities

SO, Strategies S1, S2, S3, S4, S5+ O1, O2 | O4: Seeking increased market share by increasing exploitation of target market => Market penetration strategy

S1, S4, S6, S7+ O1, O2, O3, O5: Expansion of exploitation to other customers outside the current target market =>

S1, S2, S6 +O1, O2, O5.: The company can establish branches and offices in industrial cities to better approach and exploit the market

ST strategies S1, S2, S7+T1: Strengthening marketing to penetrate the market

=> Market penetration strategy S1, S2, S3, S5, S6 + T5: Affirming product quality to create competitive advantages over with competitors

Promote the operation of the information

WT Strategies W3+T3, T4: increase financial capacity to ensure supply => policy is suitable for job characteristics but not attractive compared to the market

W3: Financial capacity is not strong

W4: Distribution channel is not effective

W5: Ineffective information system system to better exploit the target market =>

O2, O3, O4, O5: increase charter capital, improving the salary policy to develop and expand the scale =>

W4 + O1, O2, O3, O4, O5: Strengthening links with agents in the provinces, architects, construction contractors to increase distribution network and increase customer access =>

W4 + T1: Strengthening links with agents in the provinces, architects, construction contractors to increase distribution network and increase customer access =>

From the matrix model in Table 3-1, combined with the analysis of the elevator market as well as the company's competitive position, we can draw the conclusion that HNEE Company is located in quadrant II, because the market In a rapidly growing industry, the company has a competitive position that is not strong in the market Thus, we can choose strategies: market integration, elimination, liquidation Except for the liquidation strategy The remaining 5 strategies are all proposed in the SWOT matrix The coincidence between the SWOT matrix and the main strategy matrix shows that the proposed strategies are reasonable, appropriate for consideration and selection

Table 3 2 Matrix of Key Strategies

FAST GROWTH OF THE CHILD MARKET

SLOW GROWTH OF THE MARKET

To enhance competitiveness and market share against stronger rivals like Thang Long and Thien Nam, the company should leverage its market strengths By capitalizing on its deep understanding of potential customers, delivering high-quality services, and utilizing its strong brand reputation, the company can effectively target market opportunities This approach will allow the company to benefit from favorable external conditions, including significant market growth, rising demand, and substantial government investment.

Solutions to implement the strategy

In order to implement the 3 selected strategies as above, this thesis offers specific groups of solutions

3.3.1 Solution group to implement market penetration strategy

3.3.1.1 Solutions for marketing and brand promotion

- Implementing marketing solutions to help the company promote the company's brand image to the target market, contributing to building the

HNEE brand in the Vietnamese elevator market In addition, the company needs to have a plan to actively investigate the market in order to collect information about customers, the company's reaction to the services provided by the company, develop agency policies, etc

- Cooperating with some KOLs who customers are using HNEE's elevator

- Construction of several national symbolic works

- Actively participate in Associations, Exhibitions of construction and elevator industries

- Strengthen communication work on mass media, newspapers, social networks

- Participating in and sponsoring charity activities, sports exchanges, cultural and artistic activities, etc

- Participate in several prestigious domestic and international awards to affirm the brand

- Completing the construction of a new and more modern and professional new headquarters office and showroom for customers to directly visit and experience the products

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- The company should pay attention to organizing a strong information department and an appropriate mechanism to facilitate the information flow within the enterprise and between the enterprise and the market to be optimized All the potential of the staff, professional skills and positive working attitude can only be realized by a system that encourages the exchange of information between members of the company If a strong information system is built, the company can create a strong and sustainable competitive advantage Therefore, the company needs information system solutions to successfully implement the strategy The solutions are shown below:

- It is necessary to invest in purchasing business management software to be able to serve risk management and customer management

- It is necessary to research and build a separate website for different product lines so that the work of publishing information out is done professionally and raise the company's brand to a new level

- Staff in charge of information systems should give preference to those with concurrent expertise in information technology, network management and business

- It is necessary to organize the work of collecting information from the market, information on customers and information on investment projects

A dedicated staff member is required to carry out preliminary collection and processing before disseminating it to the entire company

3.3.2 Solution group to implement market development strategy

The characteristics of elevator products are high-precision mechanical products, project-based construction and services, so there are three product

Here is the rewritten paragraph:"We collaborate with renowned international elevator brands to distribute their CBU imported elevator lines in Vietnam, where they have a strong global reputation but lack a local representative office By establishing a strategic cooperation model, we aim to become the exclusive agent for these esteemed brands in Vietnam, effectively distributing their product lines to other elevator companies across the country."

- Build popular elevator packages and publicly accessible pricing to create customer funnels

- Build elevator packages with better options and personalize with HNEE's expertise and unique know-how to drive optimal revenue and profit for the company

- Develop warranty maintenance service packages to provide more to customers after customers have decided to sign a contract to provide elevators with HNEE

- Improve the quality of maintenance services, unscheduled inspection of works while technicians are performing maintenance

- Improve the aesthetic part of the ladder, creating unique features under the HNEE brand

- Development of a smart car park product line

- Continue to maintain and diversify the product lines of elevators, escalators, transmission elevators, hospital elevators

- Develop more Homelife ladder product segment for special small size elevators

- Flexible pricing solution: The price of elevator products is calculated based on two basic factors, technical factors and market factors Technical factors are factors related to the technical characteristics of the elevator, the origin, the brand, the installation location of the elevator, the terrain of goods transportation, the distribution channel, etc The market factor is the factors related to market supply and demand, currency, impact of economic policy Currently, in the current fiercely competitive market situation, market factors have become decisive factors, technical factors are being ignored by many companies The company needs to use a flexible pricing solution, rationalizing for each risk, but not separating from the technical factor, without sacrificing quality at any price

- Applying a preferential price policy or giving a maintenance service package to customers who continue to buy more elevator products or introduce customers to the company

3.3.2.3 Distribution channel solutions a Distribution channel through agents, collaborators:

- Continue to expand the network of agents and collaborators to all 63 provinces and cities

- Continue to expand agent and collaborator relationships to neighboring countries such as Laos and Cambodia

- It is necessary to develop a mechanism to take care of specific agents and collaborators at the same time as building a strict agency management mechanism in the direction of professionalism and exclusive agency in accordance with business law

- The company needs to pay attention to the training of agents and collaborators to create professional agents, with agency activities as a business service

- Develop a commission policy for company employees in other departments to have the opportunity to refer customers to the company's sales department b Distribution channel through broker:

- Continue to tighten relationships with brokers, create relationships with

- Develop a strict policy with brokers and ensure competition with other companies c Direct distribution channel

- Promote to market, meet and contact with customers

- Creating favorable conditions in terms of time, means and costs for sales staff to actively develop direct distribution channels d Online distribution channel, telesale

- Building packages of elevator products, elevator maintenance services are popular in the market with optimal prices Products and services clearly show policies and publicly list prices to create funnels to attract customers

- Training sales admins can directly close contracts via online channels and telesale of elevator products and elevator maintenance services

- The company needs to focus on research and development, research and development plays an indispensable role in the implementation of the strategy The company currently has not organized a separate R & D department, the R & D work in the company should be organized in the following direction:

- Sales Department cooperates with technical department to research and develop products by designing technical characteristics, textures and decorations from standard products to suit the mining company's market segment

- The sales department cooperates with the marketing department to research existing elevator products of famous elevator companies in the world to serve the Vietnamese market

- The marketing department researches and designs catalog covers, product brochures, product images ;

- The Project Management Department needs to study and improve the construction progress, project implementation process, research and evaluation to come up with the process of measures, coordinate work to prevent loss, and work safety for the project customer, company

- The Finance and Accounting Department studies the policies of banks and financial institutions to optimize cash flow for the company

3.3.3 The solution group to implement the Correction strategy for development

In order to implement the Correction to Growth strategy, the company should change its organizational structure and management method in the direction of reorganization as follows:

• Board of Directors Meetings: The Board of Directors should regularly hold meetings to develop development strategies, update business plans, etc

• Delegation of authority to the Board of Directors: The Board of Directors needs to decentralize more power to the Board of Directors so that the Board of Directors can actively implement business plans and strategies

• Operations Departments should be restructured into the following divisions:

+ Sales Department: It is recommended to set up 2 marketing teams specializing in two separate market segments Because the company's two market segments have different characteristics: the target customers are projects serving domestic and foreign agencies and businesses, so they need to be served professionally complicated terms and conditions Therefore, employees in this department need experienced staff, able to speak foreign languages, and have negotiation skills With the target audience is individuals elevators Employees in this department need to have skills in collecting information about customers, communication skills, situational awareness and improvisation

- The sales manager is responsible for setting up business plans and programs to boost sales of business groups

- Sales admin department oversees answering online and telesale customers

+ Marketing Department: need staff in charge of public relations to organize propaganda and public relations (PR - Public relations) work

Here is the rewritten paragraph:HNEE's Technical Department is currently comprised of a head of department, a head of electrical engineering, and a head of mechanical installation, which has proven efficient in executing new installation projects However, the maintenance of existing elevators and projects focused solely on providing customers with elevator maintenance services have faced delays due to the overlapping responsibilities of the electrical and mechanical departments To address this issue, HNEE plans to introduce a dedicated head of maintenance department, who will oversee a team of technical staff responsible for elevator maintenance and warranty work, streamlining the process and enhancing overall efficiency.

Here is the rewritten paragraph:The Project Management Department at HNEE is currently facing a significant workload due to the increasing number and scale of projects, particularly with the urgency to complete elevator works before the Lunar New Year However, the department's staffing needs fluctuate, with a lull in workload during the first stage of the year, making it impractical to maintain a large team year-round To address this challenge, HNEE plans to consolidate key personnel and recruit collaborators and interns from June annually to train and prepare for the peak period, with the potential to convert promising candidates into official employees Additionally, to enhance the department's bidding capabilities, especially for online bidding documents, HNEE aims to add specialized staff to ensure professional and timely bid document preparation.

The Administration and Human Resources Department primarily handles receptionist and administrative tasks, but the importance of human resource management has been overlooked To enhance its effectiveness, the department should recruit an experienced human resources professional and a legal expert to mitigate potential legal risks in the future.

Effective implementation of a company's strategies hinges on the critical role of human resources Success in executing these strategies demands strong management, a skilled workforce, a stable personnel environment, and minimal staff turnover To achieve this, the company must adopt specific solutions.

Request

- The government needs to continue the policy of opening the economy to promote the development of domestic elevator businesses At the same time, there should be appropriate policies so that foreign elevator companies when entering the Vietnamese market must have positive effects to transfer technology and create jobs for Vietnamese workers

- It is necessary to introduce and complete the legal framework soon to ensure the transparent operation of the market

To ensure fairness for compliant companies and uphold the integrity of the law, it is essential to enhance inspections and controls while strictly penalizing those that violate regulations.

- It is necessary to develop a legal framework soon for the installation and maintenance of elevators to become one of the conditional business service areas

- The Vietnam Elevator Association needs to improve its role in the operation of the market, admitting more prestigious members

- Building a training center serving training for the entire industry in order to provide human resources and save training costs for enterprises

- Coordinate with colleges and universities to train human resources for the industry

- The Association needs to promptly give recommendations to businesses on violations, typical success or failure cases so that businesses can promptly learn and have better risk control measures

To foster growth and collaboration in the elevator industry, associations and businesses should consider organizing seminars and fairs that facilitate knowledge sharing and networking opportunities among elevator companies, as well as connections with other stakeholders in the construction industry and potential customers.

- Enterprises need to clearly define the role of human resources in strategy implementation

- It is necessary to set short-term goals that are consistent with reality as well as long-term goals that the enterprise has determined, avoiding the case of setting goals that are too high not close to the actual situation and assigning too high targets to employees, making employees have no attempt to complete to be rewarded because the feasibility is not high;

- Regularly monitor the strategy, the unusual developments of reality to adjust accordingly

Operating in a dynamic environment and fiercely competitive market like the current Vietnamese elevator market, with foreign businesses and hundreds of years of experience in the world and decades in the Vietnamese market South has occupied most of the market share Domestic elevator companies such as Hanoi Elevator and Electrical Equipment Joint Stock Company need to plan for themselves a specific and clear business strategy

- On the basis of generalizing the theoretical bases of strategic management and using practical analytical research methods, the author has built a development strategy for the company until 2028 with solutions for implementation Accordingly, the company should focus on the following strategies:

- Market penetration strategy: It is important and priority to penetrate deeply into the company's target market segment, which is individual customers

- Market development strategy: In addition to the initial target market, with the company's strengths, the company needs to expand to the customer segment that is ministries, departments and businesses implementing projects

- Correction strategy for development: to develop firmly and successfully in the Vietnamese market, the company needs to correct and improve its weaknesses

- With a system of appropriate business strategies, the author hopes to have contributed useful ideas for the development of HNEE company and the elevator industry in general The author believes that, if the above solutions are applied synchronously and effectively, HNEE will succeed in

O: List of the main opportunities

T: List of the main threats

S: List of the main strengths

S-O: Strategies that combine strengths to take advantage of opportunities

S-T: Strategies that combine strengths to limit and avoid threats

S: List of the main weaknesses

W-O: Combined strategies to overcome weaknesses to take advantage of opportunities

W-T: combined strategies to overcome weaknesses to reduce threats

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- ADDENDUM 3: THE CHART PREDICTS A STRONG INCREASE IN

THE MARKET SHARE OF RESIDENTIAL ELEVATORS AND HOME

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To serve scientific research, we organize opinion polls opinions about the quality of products and services provided by HNEE Please take a moment to answer the following questions:

- Average income (for individuals and organizations):

1 With the ordinal numbers from 1-5, please indicate the importance of the factors listed below for the problem of choosing the elevator company to serve you (the larger the order number, the more important the factor is.)

- Satisfaction level with the Saler who consulted directly with customers

- Satisfaction level with the progress of the project

- Satisfaction level with construction technical staff

- Satisfaction level with product quality

- Reputation, brand of the company

- Attractive promotions, high promotional value

- Diversity of products and services

2 In addition to products and services provided by HNEE, are you using products and services provided by other elevator companies? If yes, what is the name of the company? With the ordinal numbers from 1-5, please indicate the importance of the factors listed below to the issue of choosing that company to serve you (the larger the number, the better the higher the factor's importance)

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- Satisfaction level with the Saler who consulted directly with customers

- Satisfaction level with the progress of the project

- Satisfaction level with construction technical staff

- Satisfaction level with product quality

- Reputation, brand of the company

- Attractive promotions, high promotional value

- Diversity of products and services

3 Your specific comments to help us improve our service

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ADDENDUM 5: RESULTS OF CUSTOMER COMMENTS

- Assess the brand reputation and competitiveness of HNEE across the country through the form of the customer satisfaction survey for products and services provided by HNEE Understanding the level of customer satisfaction is necessary because, through the survey process, strengths, weaknesses, opportunities and threats are systematically synthesized to serve as the basis for SWOT analysis and analysis Determine the right business strategy

To formulate a development strategy and enhance competitiveness, HNEE must have a precise understanding of its main competitors' strengths and weaknesses A survey can provide valuable insights not only into customer satisfaction with HNEE but also into how customers perceive the products and services offered by its competitors, enabling the company to make informed strategic decisions.

Understanding customer needs and expectations regarding the quality of an elevator company's products and services is crucial This involves identifying the key factors that influence customer decisions and assessing the extent to which these factors impact their choice of elevator provider.

The survey is aimed at two customers, individuals and economic organizations, who have purchased products and services provided by

HNEE The number of questionnaires distributed was 300 panels, of which

258 were distributed to individuals and 42 were distributed to economic organizations The survey results obtained 233 valid responses, of which

215 were answered by individuals and 18 by economic organizations

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The only selected survey subjects are individuals and economic organizations who have been buying products and services provided by

Here is the rewritten paragraph:According to our analysis, only customers who have directly purchased products and services from HNEE can provide relatively accurate assessments of the company's service quality and brand reputation However, it's worth noting that the survey's findings may be limited in scope, as the respondents are exclusively HNEE customers, and therefore do not offer a comprehensive comparison with other competitors in the market.

Customer reviews and comments are widely shared, making them essential for evaluating brand reputation and developing effective strategies To achieve this, we utilize a scoring method and aim to expand our survey sample, allowing us to quantify customer feedback with greater accuracy.

4 Determine the influencing factors and the degree of influence of these factors on the customer's choice of elevator company