Essays on Cellarbration Entry to Vietnam Market Case Study

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The paper 'Cellarbration Entry to Vietnam Market " is an outstanding example of a marketing case study. This strategy report provided numerous recommendations to Cellarbration on basic entry decisions; entry mode as well as multinational structure/competitive strategy; global marketing strategies and R& D; production and supply management; and international HRM Strategies and other considerations. It was noted that the process of entering and afterwards developing an international market is not a simple task for Cellarbration. This is because penetrating a new country is similar to a start-up situation, with no marketing infrastructure, no sales, and no or little knowledge of the new market.

In spite of these challenges, this situation is normally treated by companies as their business extension, a basis of incremental revenues for current services and products. The economic condition in Vietnam has not been friendly, but the government has made some signs of progress by trying to develop an environment favourable for investment through continuous revision of its legal system as well as the introduction of crucial incentives for foreign investors. Corruption is another situation that can create challenges when entering the Vietnam market since the country is well known for its poor record on corruption, but the situation is gradually improving after the introduction of anti-corruption regulations. Cellarbration entry to Vietnam market will be a zero-base process since there will be no existing business and will have little market knowledge when entering the market, especially based on the managerial competence needed for the new market setting.

Years after entering the Vietnam market, the changing rate of Cellarbration’ s marketing capability will probably be higher as compared to the change in the market environment; therefore, in shaping strategy, the organisation effects could govern market effects.

This will predominantly be imperative considering the business context, wherein the new business generation is crucial as compared to efficiency in the management of a business that is relatively stable. In spite of the recent liberalization, regulations in Vietnam are still presenting significant restrictions on foreign participation, especially in the distribution and importing sectors. Considerably, distribution and import activities are reserved only for Vietnamese entities, so, foreign producers are expected to work through Vietnamese companies so as to create retailing or distribution operations in Vietnam.

Nevertheless, multinational companies that have a license for manufacturing activities in Vietnam are allowed to distribute their products in Vietnam. Besides that, investment licenses also permit the importation of raw materials by foreign-invested companies so as to produce their products in Vietnam. Moreover, finished products can be allowed prior to production start-up for developing and test marketing the business for a certain time period. In a number of situations, market entry is impelled as a reaction to a competitor’ s move, and not some striking features of the host country.

The economy of Vietnam has widely gained from the open-door policy introduced by its government. Besides that, thanks to its economic potential and its stable political environment, Vietnam has turned out to be an attractive market for foreign companies. It was observed that it was imperative to understand that the barriers attributed to market entry are variable, and changes as the industry mature or because of the strategic decisions by the main competitors. With regard to the international human resource management issue, it was observed that foreign companies experience numerous HR-related challenges such as strikes, job-hopping, and labour laws.

Besides that only 15 per cent of Vietnamese are skilled or trained workers with higher or elementary qualifications; so, Cellarbration may experience a shortage of skilled labour force.

References

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