SWOT analysis of NHB Company

This report provides an analysis and evaluation of strategic management that affects the stability and development of NHB television Equipment Company.. NHB’ goal is bringing television

With rapid change in information technology, suppliers in this field face a great deal of challenges This report provides an analysis and evaluation of strategic management that affects the stability and development of NHB television Equipment Company Methods of analysis include vision and mission identification, internal and external analysis NHB’ goal is bringing television devices with high quality and suitable price for customers as well as making profit for company To make this goal become realistic, the company has its own strengths and opportunities in finance, human resource and government support Similar to other organizations, it also confronts threats and weaknesses from customers, rival, technology and inside the company Having deep understanding deep knowledge about current situation of NHB company, some suggestions are given to promote development of the company such as making flexible strategy to cope with the fast changing environment, building good relationship with the directors of local station andgiving more compensations and benefits to the employees

Executive summary ii

1 Introduction of the company 1

2 Literature of review 1

3 Management issues 2

3.1 The company’s current mission, goals and strategies 2

3.2.External analysis 2

3.3 Internal analysis 4

4 Recommendation 5

5 Conclusion 6

References 8

Appendices 9

1 Introduction

NHB Television Equipment Company Limited (NHB Co Ltd) is one of the most potential companies in the field of providing television equipment in Vietnam Founded in 2012 with headquarter in Ho Chi Minh City, NHB started out as a company with a handful of employees and a burning passion That company soon become large as well as strongly developed through operating two branches in Vietnam’s two trade center cities: Ha Noi and Ho Chi Minh City This report is going to concentrate on the office located in Hanoi –Group 19, CauDien Ward, Nam Tu Liem District, Hanoi NHB specializes in providing products in the field of television devices such as dedicated camera, filming boom, camcorder, tripod, Kinoflo camera and so on The customers ranged from small organizations, provincial TV stations to companies specializing in entertainment media Therefore, their products as well as their price are quite competitive In addition, motto operation of NHB is “Bring the best things to the customers”, it is one of the most significant determinants of NHB helping it gain the trust of the clients and get more profit Through nearly 5 years of development, it has extended more branches as well as has nearly doubled the revenue over the period from 2012 to 2015 The extent of this report is about a certain number of core aspects in the strategic management of NHB in Hanoi, which has substantial impacts on the efficiency and effectiveness of the company

2 Literature review

Strategic management is what managers do to develop the organization’s plan, the method

to complete it successfully leading to the evaluation of satisfaction of the customers in order to achieve its goal(Robbins 2012) Strategic management plays an important role in the operation and evolution of the company because of three reasons Firstly, it helps managers making a difference in organization performance, coping with continually changing situation and finally, focusing employees on what is important In order to apply strategic management in specific situation effectively, the manager needs to understand and follow six steps of strategic management process encompassing strategy planning, implementation and evaluation This report mainly focus on SWOT analysis (including external and internal analysis) The internal analysis has purpose of pinpointing the strengths and weaknesses of the organization such as resources and capabilities The external analysis examines opportunities and threats that exist in the environment including customer analysis, market analysis and environmental analysis

SWOT is an acronym used to describe the particular Strengths, Weaknesses, Opportunities, and Threats that are strategic factors for a specific company (Robbins 2012)

3 Management Issues

3.1 The company’s current mission, goals and strategies

According to Nguyen Van Ngoc, CEO of NHB Co Ltd, “NHB always puts their customer’s interests to the forefront with the aim of bringing the most advanced equipment with the reasonable price for customers” In the market economy, there are many companies providing

TV equipment, NHB will be wiped outfrom the market by stronger opponents, if itputs emphasis

on the profit However, with motto operation “Brings the best things to customers”, NHB has affirmed its position in the field of TV devices and achieves lots of success In the long run, this company wants to provide the most advanced equipment with various incentives to the market

Mr Ngoc said that “We aim for customer satisfaction at first We always strive to satisfy through the product with absolute guaranteed quality, with competitive prices” In order to realize that goal, NHB focuses on improving service quality by training and transferring technology for the employees, emphasizing on customer service In addition, the incentive programs are given appropriately to each client such as free delivery, discounts, free installation and maintenance

3.2 External analysis

a. Opportunities

As NHB Television Equipment Company mainly supply to television stations, the relationship between firm and customers is vital to company’s business The firm has been in the market for several years so it has built stable customer base which helps them get more opportunities than other new entrants to the market Thus, the advantage provides them with steady number of customers coming with large contracts and introduction to new ones (Appendix A) This is an effective way to advertise the company by customers who have used company’s products and services Moreover, many customers had decided to purchase equipment from NHB Company after several times of hiring and using services which help increase company’s profit (Appendix A)

The growth in market of broadcasting equipment in Vietnam’s urban and remote areas is another NHB’s opportunity With nearly 7 million of households in Vietnam (mainly in Hanoi and Ho Chi Minh City) having TV set and each of the provinces having at least one cable network (Ministry of Information and Communications), the market for NHB is large and has many potentials to grow The high demand for broadcasting in many fields such as sports, news

production and corporate conferences also lead to the development of market in urban areas (Persistence Market Research, 2015) Moreover, the government’s expansion station coverage and the improvement in the quality of lifein several mountainous areas are also expected to drive the market of broadcasting equipment (Tuyet Trinh, 2012)

In addition to that, the government are trying to help local firms to develop and control the market They implement television digitalized scheme and provide many funds with low interest for companies to import equipment (Thu Nhan, 2016) These actions create consistent resource for companies’ evolution, promote them to keep up with the latest technology in the world and make the demand for television equipment surged Furthermore, according to the Ministry of Industry and Trade of Vietnam, many trade shows are opened domestically for firms

to come, advertise products and attract potential customers such as Vietnam International Broadcast and AV Show 2016 and Vietnam International Exhibition on Film and Television Technology 2016

b. Threats

Despite the fact that NHB Company has many opportunities, there are still many threats

in the market making it difficulty for the manager to set up the strategies to develop further

The first difficulty is that the company is facing extremely dynamic environment with rapid change in technology and industrial innovations The online and mobile technologies turns the industry upside down as it dramatically changed the way people access information In the past forty years, people’s primary source of news has completely changed from paper, to television and to the Internet Researchers at the Reuters Institute at Oxford University have calculated that in many cases, consumption rates of standard TV news are falling more quickly than print newspaper readership Nowadays, viewers have increasingly choices over the Internet

as many choose to watch free programs streamed on the websites (Stelter, D) This poses a huge threat to broadcasting equipment market as they have to take strategies to deal with this unpredictable environment

The company also faces many competitors in the environment as there are approximately

20 firms in the Northern area (Appendix A) The company has to deal with many strategies from competitive device providers in order to take project from them It is reported by the manager that some companies bribe the top managers of television stations to break their contract or prevent NHB from tender for supplying to local stations by spreading scandal about their products In addition to that, the black market of imitation and counterfeit equipment is also the striking cause

of breaking the faith of customers to the company (Khoi Nguyen, 2016)

However, the largest obstacle of the company originates in administrative procedures To import and sell products, the company has to handle various procedures such as customs procedure and disbursement procedure Each of these requires many complex steps which are usually time-consuming and costly (Nguyen Nga, 2016) Furthermore, the company has to pay

higher tax (35%) for importing from China (Dinh Anh, 2016) The manager of NHB Company pointed out that they are also confronted by capital loss due to the late disbursement from the government and the difference in national’s funds distribution for each local station

3.3 Internal analysis

a.Strengths

After 5 years of foundation and development, NHB Company has its own potentials to remain stability and success In recent years, there have a steady growth in total revenue of the company nearly doubled from 8.5 billion VND in 2012 to 16 billion in 2015 (Appendix A)

In comparison with companies providing the identical products, the equipment from NHB Company has many outstanding features As they import the television devices from prestigious suppliers such as Sony and Hualin Beijing television technology Company, they usually get much more reasonable price and more stable source of products For example, NHB sells Kino Flo lamp with 6 million VND as compared to PNO Company with 7.5 million VND (Appendix A) Sometimes, the company orders special devices with unique features that meet customer’s needs Furthermore, the business acumen of the manager helps them provide the most recent devices such as virtual studio and wireless transmission system which catch up with the rapid changing technology world nowadays While most companies just provide 6 months to 1 year of warranty, NHB offers 1.5 to 2 years’ term and after-sale services including free change of components, bringing specialists to give instruction for using the devices (Appendix A) In addition to that, the firm have advantages over companies providing higher standard equipment Since those companies import devices from Japan and Europe, their price is much higher and can just response to the need of a certain number of customers

The company’s culture is outcome orientation which means that they focus on results rather than how these outcomes are achieved (Appendix A) To make its culture become realistic,

Mr Ngoc- manager of the company is always the pioneer in every field of work He is the manager who has a thorough understanding of technological devices because he spent 1 year in China learning about television technology and working directly with suppliers (Appendix A) Therefore, his employees can acquire a lot from him When choosing employees for the company, ethics is the most important condition that the manager requires because he thinks that skills and knowledge can be trained rather than quality inside each person In business, ethics play a crucial key to determine customer’s belief and decision in choosing suppliers Understanding the essence of customer’s faith and satisfaction, employees are trained in 2-month course by television technology professors before becoming official employees to have deep knowledge about company’s products, update the most innovative technology as well as create relationship to buyers (Appendix A) All activities of the company are managed and controlled by the manager through heads of department such as finance, business and service If there is any

problem coming from customer, product or service, Mr Ngoc is the first person taking responsibility for it and investigating others later

Relationship between manager and employee also contributes to the development of the company Mr Ngoc is willing to support his employees in both work and life which narrows the gap between manager and others and create comfortable and equal environment for them to try their best to achieve the goals Besides, according to the manager, best employee’s revenue of each quarter is given an award such as money, vacation and career opportunity to acknowledge his or her efforts and motivate them to dedicate more for the company’s development

b.Weaknesses

In contrast to strengths, NHB Company has some weaknesses that affect its development Although working environment is dynamic and equal, Mr Ngoc said that it contains competition among employees as they need to show their best performance to gain profit for the company and commission for themselves In life, they are friends but in work, they are competitors who compete to earn a living and an award from manager Their concerns are their own success and interests more than their colleagues so when they become a team, it results in low effectiveness

In addition, since its culture is paying more attention to outcomes, some employees cheat to have better performance such as reducing the reputation of their colleagues and scrambling for customers Manager sometimes leave employee’s effort behind throughout the process because of concentration on results This makes some employees feel that their dedications are not recognized Gradually, they do not want to devote more, they just accomplish their job to get basic salary, which leads to ineffectiveness and affects company’s success in general (Appendix A)

4 Recommendations

Based on the SWOT analysis above, we have some suggestions for NHB to improve performance and become one of the biggest suppliers in the field of television equipment The opportunity and strength are the crucial key to promote and sustain the long-lasting development

of NHB Firstly, as the relationship between the firm and customers is important, NHB should initially improve customer service to create a long-term profitable relationship with customers The customers will evaluate employees through their attitude as well as behaviors Therefore, employees have to be trained professionally overseas to serve the customers It is important for them to learn how to control and handle the aggressiveness of customers if they are not satisfied with the device provided

At the same time, weakness and threats should be diminished as much as possible to improve company that directly contributes to success and growth of company NHB has to hire

more employees and give various compensations and benefits such as retirement plan, maternity pay and many career opportunities to satisfy employee as well as to keep them working in the long-run The more satisfied the employee the less pressure and bad attitudes happens in workplace The company should also hold recognition party at the end of the year and mini vacations to improve the relationship between managers, employees and co-workers Secondly, NHB always cope with dynamic environment with many components Therefore, flexible strategies are carefully prepared to meet the demand of changing technology or innovating industry For example, NHB should launch more effective marketing campaign such as advertising on social network, investing equipment to famous reality show and creating different channels to interact with customers or provide more service in order to boost potential growth It

is essential to build and maintain good relationship with NHB and the directors of local stations Therefore, market position is improved and brand image is highly ameliorated This increases revenues from the segment of the business and maintains market share nationally Furthermore, to gain income to compensate for the capital loss and to maintain firm’s activities, NHB should get contract of any size and provide more services such as lend equipment or offer professional cameramen to large events or instruct television station’s staff

5 Conclusion

NHB is a popular company located in two mega cities with highest demand in Vietnam It must assess its external and internal environment in order to improve its performance An effective SWOT analysis plays a crucial key helping NHB put emphasis its strengths, take advantage of the opportunities, highlight the key weaknesses as well as avoid threats Additionally, NHB can as well make use of the analysis to find perceptive of opponents which can present NHB the insights it requires to have consistent position in the market Having done a SWOT analysis, the process of planning will be more thorough and will lead to a better quality of decision being taken In many cases, carrying out a SWOT analysis will create a more positive outlook in the future Finally, by identifying strengths and weakness and factoring opportunities and threats into action through the strategic planning process will help NHB’s market position enhance significantly

1 Dinh Anh 2016, “Thuếnhậpkhẩunhiềuloạiđầuthutruyềnhìnhvẫn ở mức 35%”, viewed 18 November 2016,

http://ictnews.vn/ so-hoa-truyen-hinh/thue-nhap-khau-nhieu-loai-dau-thu-truyen-hinh.ict

2 Khoi Nguyen 2016, “Điểmmặt 7 loạiđầuthusố DVB-T2 “lậu” trênthịtrường”, viewed 16 November 2016,

http://ictvietnam.vn/xa-hoi-so/truyen-hinh-so/diem-mat-7-loai-dau-thu-so-lau-tren-thi-truong.htm

3 Nguyen Nga 2016, “Thủtụchảiquanmớinhanh trêngiấy”, viewed 20 November 2016,

http://thanhnien.vn/kinh-doanh/thu-tuc-hai-quan-moi-nhanh-tren-giay-680752.html

4 Persistence Market Research 2015, “Broadcasting Equipment Market: Global Industry Analysis and Forecast to 2021 (review)”, viewed 21 November 2016,

http://www.persistencemarketresearch.com/market-research/broadcasting-equipment-market.asp

4 Robbins, Stephen P., 2012, Management, 11thEd., Pearson, Upper Saddle, New Jersey.

5 Stelter, Dan "How Do You Adapt To A Rapidly Changing Industry: The Cable TV Story - Bplans Blog", viewed 20 November 2016,

http://articles.bplans.com/how-do-you-adapt-to-a-rapidly-changing-industry-the-cable-tv-story/

4 Thu Nhan 2016, “Sôiđộngthịtrườngthiếtbịthutruyềnhìnhsốmặtđất”, viewed 14 November 2016, http://baovinhphuc.com.vn/xa-hoi/soi-dong-thi-truong-thiet-bi-truyen-hinh-so-mat-dat.html

5 Tuyet Trinh 2012, “Rútngắnkhoảngcáchvềhưởngthụthông tin giữacácvùng, miền”, viewed 15 November 2016,

http://baophutho.vn/xa-hoi/Rut-ngan-khoang-cach-ve-huong-thu-thong-tin-giua-cac-vung-mien

6 Vietnam International Trade Promotion Company 2016, “Danhsách – Lịchhộichợvàtriểnlãmthươngmại 2016-2017”, viewed 18 November 2016,

http://www.tradepro.vn/vi/danh-muc-cac-hoi-cho-trien-lam

APPENDIX A

QUESTIONNAIRE

Student: Hello, we are the students from Hanoi University Today, we are very happy to be here

to find some information about NHB Ltd Co Can you introduce briefly about NHB Company?

Mr Ngoc: NHB Company was founded in 2012 and had opened two branches in Ho Chi Minh

City and Hanoi NHB specializes in providing television devices such ascamcorder, tripod, kino camera and so on The customers are very diverse from small organizations to provincial TV stations In the last 3 year, NHB had increased revenue from 10 billion VND in 2013 to 14 billion VND in 2014 finally got 16 billion VND in 2015

Student:What is the mission of your company?

Mr Ngoc:NHB always puts their customer’s interests to the forefront with the aim to bring the

most advanced equipment with the lowest price for customers