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Essay on Vinamilk’s SWOT analysis

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Vinamilk’s SWOT analysis
a) Strengths
Established since 1976, Vinamilk has grown strongly and become the leading business of the industry of milk processing. Obviously, its long history is the first and foremost strength to make it become the biggest dairy producer in Vietnam. Throughout more than 30 years operating, Vinamilk has become a familiar trademark to domestics’ clients. Also, Vinamilk has gained a great customer understanding and satisfaction as well as knowledge of the local market.
Another remarkable factor that has actually strengthened Vinamilk’s leading position in the market is that it already holds a strong distribution presence which spreads nationwide, from urban to rural, coastal and mountainous areas. The distribution network is the decisive factor for the success of a consumer goods producer. Vinamilk is now operating agencies at grassroots levels like villages in rural areas, and almost all shops on the main streets of major cities sell Vinamilk products. In addition to the strong domestic distribution with the network of 183 agencies spreading over 64/64 provinces, cities, and Vinamilk products are exported to United States and many European countries as well as area of Middle-East and Southeast Asia.
Along with the solid distribution network, technology capability is another key to success making Vinamilk a top business of the Vietnam milk industry branch. Vinamilk has ceaselessly renovated its technology, invested in modern production lines, improved administrative and products quality so as to meet increasingly high demands from customers. For the time being, VINAMILK possesses the most modern production lines in Vietnam which ensure the quality and hygiene. Additionally, Vinamilk also takes advan...


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...tion, the market for beer and coffee is very potential for further investment. However, participation in a new business area always has risk. The process urges VINAMILK to cooperate with other companies and corporations, who have experience in this area, in order to increase its competitiveness through learning experience in management, marketing, products distribution, enhancing capability of cooperation and raising capability of export etc. Otherwise, the company might suffer from a constant loss.
Furthermore, while many types of businesses, including food business, are expanding, prices across the board have been rising resulting in the current high rate of inflation. In case of the inflation rate below the growth rate, the market price of material resource may be higher in the short-run which can force the price of dairy product to rise and thus lower the demand.


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