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Vinamilk’s SWOT analysis

The privileges of size and experience: Long history and strong foundation is the first and foremost strength to make Binomial become a leader in dairy market of Viet Name. Binomial has been watching over the Vietnamese dairy market for almost 30 years and has thus understood what makes people tick. The company is able to capture a wide market range with its abundant number of products.

The mere size of Binomial (in term of assets and capacity) is the foremost factor that differences from there competitors. SO – The diversity of products: Binomial supplies a wide range of products to meet different consumers’ needs. They have products aiming at special groups of customers like kids, adults and elderly and also products for families and enterprises like cafeterias. Moreover, through their products and different sizes of packaging, they provide customers with convenient portable milk products.

SO – The wide distribution network: Their wide network of distribution is an essential factor hat leads to their success, helps them attract a great number of customers and guarantees the effectiveness of new product introduction and marketing strategies nationwide. Up to December 31 2012, they had sold their products through 250 distributors and over 200,000 outlets in

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64 provinces in the country. As for export: Vandalism exports products to over 16 countries worldwide. Major export markets include countries in The Middle East, Cambodia and Philippines.

Their experienced sales team of 1,900 salespeople nationwide has supported the distributors to attend o the outlets and customers better as well as advertising their products SO – Stable relationships with suppliers to ensure high-quality milk: They have established stable relationships with suppliers through their assessment policy. They assist farmers financially by buying dairy-producing cows and we commit to purchase high quality fresh milk at the highest price. They have signed agreements every year with milk suppliers and up till now approximately 40% milk material has been bought from domestic sources.

Our factories, which are located in strategic locations near farms of milk cows, enable them to maintain and improve these relationships with suppliers. They also choose the location for their milk purchase centers carefully to ensure the freshest and highest-quality milk available. On the other hand, they import milk powder from Australia and New Zealand to satisfy the needs for both quantity and quality. They believe that the stability of milk material sources is extremely important to their business as it helps them maintain and increase the productivity.

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