GSM - Final
GSM - Final
FINAL ESSAY
I. Analysis..............................................................................................................................................1
1. Vinfast's global ambition...............................................................................................................................1
1.1 Business definition.........................................................................................................................................................1
1.2 Mission.......................................................................................................................................................................... 2
1.3 Vision............................................................................................................................................................................. 2
1.4 Long-term objectives..................................................................................................................................................... 2
1.5 Relative importance of regions and countries...............................................................................................................3
2. Global positioning.........................................................................................................................................3
2.1 Choice of country...........................................................................................................................................................3
Key Countries:.................................................................................................................................................................... 3
Emerging Countries:...........................................................................................................................................................3
Marketing Countries:......................................................................................................................................................... 4
Platform Countries.............................................................................................................................................................4
Sourcing Countries............................................................................................................................................................. 4
2.2 Value Proposition...........................................................................................................................................................5
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of customers. However, reasonable and suitable prices are also an important factor that
helps Vinfast achieve success in winning the hearts of consumers.
Dedicated customer care: VinFast not only focuses on selling products but also
pays special attention to after-sales service, bringing satisfaction and peace of mind to
customers throughout the product usage process. This contributes greatly to brand
positioning and enhancing Vinfast's reputation in the eyes of customers.
1.2 Mission
VinFast's mission is to develop smart, sustainable electric vehicles that bring value
to consumers at affordable prices, meeting the needs of domestic and foreign customers.
The company wishes to contribute to the transition to green transportation, aiming to
"green" the world, improve the quality of life and protect the environment. At the same
time, VinFast also aims to build a global brand with a commitment to ensuring
technological progress, product safety, and focusing on the impact of production and
business activities on the environment and society. (Vén Màn Tầm Nhìn Và Sứ Mệnh
Của VinFast: Hành Trình Chinh Phục Thế Giới Bằng Xe Xanh, 2024)
1.3 Vision
Vinfast's vision is to become a smart electric vehicle brand that strongly promotes
the global electric vehicle revolution. At the same time, it will become one of the 10
largest electric vehicle manufacturers in the world, with a spirit of always reaching out
to the world, demonstrated by its production capacity - market - unlimited intellectual
connection. VinFast also aims to build a complete electric transportation ecosystem,
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from products to services, contributing to the development of a green economy.
2. Global positioning
2.1 Choice of country
VinFast has expanded into the international market and entered the following groups
of countries:
Key Countries:
- US: VinFast has opened stores and introduced products in the US, focusing on
branding and selling electric vehicles. The main method of entry is opening experience
centers and showrooms.
- Europe (Germany, France, Netherlands): The company enters the European market
through auto exhibitions and opening representative offices.
Goal: VinFast wants to affirm its position in the global automobile market,
especially in large markets such as the US and Europe, to create trust for consumers. At
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the same time, research and develop products suitable to the needs and preferences of
customers in each market, thereby enhancing competitiveness.
Emerging Countries:
- India: VinFast plans to enter the market through market research and cooperation
with local distributors, and has started construction of its first electric vehicle factory in
this market. (VinFast chính thức động thổ nhà máy xe điện tại Ấn Độ, 2024)
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- Indonesia: VinFast has opened its first dealership and plans to strongly develop its electric
vehicle dealership network across major cities in Indonesia by 2024, to meet the growing
demand for electric vehicles from customers. (VinFast chính thức khai trương đại lý đầu tiên tại
Indonesia, 2024)
Goal: VinFast aims to develop the automobile market in emerging countries, where the
demand for transportation is increasing rapidly. The goal is to capture market share by providing
affordable but quality products. In addition, it will establish effective distribution channels and
cooperate with local retailers to increase product presence and expand the distribution network.
Marketing Countries:
- Singapore: VinFast has participated in exhibition events to promote its brand and products
and opened a representative office in Singapore to manage business and marketing activities in
the Southeast Asian region.
- Thailand: Vinfast has brought its products to the Bangkok International Motor Show
(BIMS), considered the leading event in the automotive industry in Southeast Asia. Here, Vinfast
conducts marketing campaigns to raise awareness of its brand and products. (Cơ hội và thách
thức của VinFast tại thị trường Đông Nam Á, 2024)
Goal: Implement strong promotional campaigns to raise awareness of the brand and products,
creating a positive and consumer-friendly image. Use marketing activities to collect feedback
from consumers, thereby improving products and services.
Platform Countries
- US: Build a distribution and customer support service platform through opening service and
maintenance facilities.
Goal: Develop a service ecosystem, establish a strong after-sales service and maintenance
system, to ensure customer satisfaction and build brand loyalty. Cooperate with technology
companies, service providers, and local organizations to create a partner network, develop
sustainable solutions for the electric vehicle industry.
Sourcing Countries
- China: VinFast seeks to source components and spare parts for electric vehicle production.
Vietnam - the homeland of Vinfast, can be considered an emerging country, and at the same
time plays an important role in providing components for the resource country, developing the
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domestic market as a key country, launching and promoting the brand as a marketing country,
and being a platform country to help build the brand in the global automobile industry.
Global positioning has brought many important opportunities for Vinfast. Market expansion
helps increase revenue, thereby creating strong financial resources for development, affirming
Vinfast's position and scale in the international market. Global positioning also allows businesses
to focus on exploiting strengths based on the characteristics of each market they penetrate.
- Differentiation in product pricing strategy: VinFast brand cars are currently sold at
competitive prices compared to competitors in the electric vehicle segment. The company
accepts to put the initial profit criteria down to second place to gain market share. Manufacturing
in Vietnam helps reduce logistics and tax costs, allowing VinFast to keep prices lower when
exporting to international markets. VinFast also provides many modern technological features in
its cars, creating added value while keeping prices at a reasonable level. This helps customers
feel that they are receiving higher value. In addition, promotions and incentives also help attract
customers and motivate purchases, especially during the new product launch phase.
VinFast's differentiation strategy not only helps the company create a competitive advantage
in the automotive industry but also builds a strong, sustainable and future-proof brand. These
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benefits will contribute to VinFast's long-term success in the domestic and international market.
Tesla and VinFast both have their own strengths. While Tesla offers premium electric
vehicles with advanced technology aimed primarily at the higher end of the market, VinFast
aims to reach a wider market with more affordable products. (Cấu hình ngang ngửa nhưng giá
bán chỉ bằng nửa Tesla, xe điện VinFast liệu có thể cạnh tranh tại Mỹ?, 2022)
High Price
Mass-Produced Customized
Low Price
a. The potential markets of Essilor are suggested as emerging nations, how Essilor
strategic pillar are compatibale with these market prospect?
Figure 5.18 illustrates that the fastest growing markets are in emerging countries. To
clearly analyze the compatibility between Essilor's strategic pillars and emerging markets, it is
necessary to clearly understand the characteristics of this market:
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- High growth: Economic growth; the rise of middle class, high degree of infrastructure
and education investment; open to international business.
- Market mechanism.
- Governance.
- Market imperfection.
- Innovation in products, services and marketing as well as the quality of its relationships
with opticians all over the world.
- The growth and development of middle markets in emerging countries. Figure 5.18
represents the company’s views about the per-spective of market development.
- Offering check-ups and supplying lenses in regions where access to optical care is
difficult, in order to develop new markets.
These strategic pillars are seen as highly compatible with the characteristics of emerging
countries, and the strategies combined together have contributed to Essilor's success in emerging
countries.
Essilor’s innovation in products, services and marketing helps the company meet the
growing needs of consumers in emerging countries, where the middle class is expanding rapidly
and is willing to spend on higher-end products and services. However, as purchasing power
increases, so do customer expectations. Therefore, Essilor can take advantage of its innovation
pillar to develop products and services that meet the needs of consumers in this segment.
In addition, marketing innovation plays an important role in the development and success
of a business. Rapid economic and social changes lead to constant changes in consumer needs
and preferences, requiring businesses to innovate to keep up with new trends. With the entry of
many new businesses, competition becomes fiercer, and marketing innovation helps companies
stand out in this context. The diverse cultural characteristics in emerging countries also require
businesses to tailor their messages and approaches to each customer segment. Furthermore, as
economies grow, especially in emerging countries, consumer purchasing power increases,
driving the introduction of new products and services. And marketing innovation is key to
helping businesses adapt, grow, and capitalize on the huge opportunities in the volatile
environment of emerging countries. Essilor’s quality relationships with eye care professionals
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contribute to its success in emerging countries. With a large network of eye care professionals
globally, including in emerging countries, Essilor can reach potential consumers and provide
them with high-quality products and services. This also contributes to meeting the higher
demands of emerging country consumers, while enhancing Essilor’s image in the eyes of
customer.
The third strategic pillar of Essilor is to pursue acquisitions and partnerships. This
strategy of Essilor in emerging countries brings many significant benefits. This helps the
company quickly access new markets and understand the needs and consumption habits of local
people. From there, Essilor can take advantage of the resources, assets and distribution networks
of local partners, saving costs and time. Partnerships also reduce risks related to understanding
the market and culture, and adjusting business strategies accordingly. In addition, acquiring local
companies helps strengthen competitive position, expand product and service portfolios, and
increase market share. Partnering with local companies also promotes innovation and creativity,
bringing new ideas and technologies suitable for local needs. Pursuing partnerships and
acquisitions in emerging countries also contributes to maintaining sustainable growth in the
context of saturated domestic markets. In addition, working with local partners makes it easier
for businesses to comply with local market regulations and standards, while enhancing brand
recognition and building consumer trust. This strategy not only taps into the potential of
emerging countries but also creates value for both parties through sharing resources and
experience. This proves that the strategic pillars that Essilor brings are extremely compatible
with emerging countries.
With the fourth strategic pillar of examining and providing lenses in areas with limited
access to optical care, aiming to develop new markets, this strategy also shows Essilor's
compatibility with emerging markets in many aspects. This strategy reflects Essilor's
commitment to expanding access to eye care services for underserved communities. This not
only helps improve the quality of life for people but also creates a strong demand for the
company's products. In addition, focusing on hard-to-reach areas shows Essilor's ability to adapt
to the economic and infrastructure conditions of emerging markets. The company can develop
flexible business models that are suitable for the needs and consumption habits of local people.
Furthermore, this strategy also shows Essilor's acumen in identifying business opportunities.
With the rise of the middle class and the increasing demand for healthcare, Essilor can tap into
the growth potential in emerging markets while building a strong brand and enhancing its
presence in the optical sector. In short, the lens examination and supply strategy not only helps
Essilor expand its market but also reinforces the company’s commitment to public health.
In summary, Essilor's strategic pillars are highly compatible with these emerging market
prospects.
b. And how emerging markets such as China and India contribute to overall
objective achivement?
China Market:
China contributes significantly to Essilor’s overall goals through its strong demand for eye
care products. In particular, it is an emerging market with an expanding middle class and a
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growing demand for high-quality, fashionable eyewear. With a population of over 1.4 billion and
a high rate of myopia, especially among young people, the eyewear market in China has become
one of the most potential markets in the world. Essilor can take advantage of many advantages in
China such as cost advantages and cheap labor. In addition, Essilor has invested heavily in
expanding its distribution network, establishing retail stores and partnering with major chains
and online retail systems, which has significantly increased the brand’s presence. The company
has also actively developed products tailored to local needs, such as anti-blue light glasses, to
meet the growing electronic device usage habits of young people. Working with the government
on national initiatives has also helped Essilor improve vision health for many people, especially
in disadvantaged areas. All these efforts in the Chinese market have not only increased revenue
but also reinforced Essilor’s commitment to providing comprehensive eye care solutions, giving
millions of people access to quality products and services, and helping Essilor strengthen its
position in a rapidly growing emerging market.
Indian Market:
In the emerging market of India, Essilor has seen a rapid increase in demand for eye care due
to urbanization and changing lifestyles. With a young and growing population, raising awareness
about eye health has become a top priority. Essilor has expanded its presence in urban and rural
areas through partnerships with local stores and a diversified distribution network. The company
has developed a range of products tailored to the needs of Indian consumers, including
affordable fashion and functional eyewear. In addition, Essilor has been able to focus its R&D
investments in India as it has been able to hire lower-cost researchers, scientists and high-quality
technicians. These efforts have not only helped the company grow its revenue but also
contributed to Essilor’s mission of improving eye health for millions of Indians, ensuring
everyone has access to quality eye care.
Issues that will be relevant to developing businesses in emerging countries such as China,
India and Mexico include:
- Political: The Chinese government strictly regulates the business activities of foreign
enterprises. Enterprises need to comply with Chinese laws and regulations and may face
legal risks if they violate these regulations. Foreign investors complain that there are still
many obstacles when they come to India, most commonly mentioning the situation of too
many officials at each approval level and the slow legal review process, not to mention
enforcement. In addition, in Mexico, corruption in government agencies can increase
costs and risks for businesses. This limits foreign investors from expanding Essilor's
business into these markets.
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- Human resources: Although these are countries with abundant labor resources, they do
not always meet the requirements for professional and management skills. Therefore,
cross-cultural management can be difficult for Essilor, leading to reduced work
performance and loss of profits. While some countries have low labor costs, they need to
invest in training to improve labor quality.
- Competition: Local businesses often have a deep understanding of the market and
consumer habits, which can create a big challenge for foreign businesses like Essilor.
Competition from local brands, with more competitive prices and deep understanding of
the market, can make it difficult for Essilor to maintain market share. In addition,
protecting intellectual property rights is often costly and complicated, creating a big
challenge in competing through product and service differentiation.
In short, developing business in emerging countries such as China, India and Mexico requires
businesses to have flexible strategies and high adaptability. Understanding the challenges and
opportunities in each specific market will help Essilor optimize business operations and achieve
sustainable success.
b. What are some recommendations for Essilor when operting in such markets?
Some recommendations for Essilor when operating in these emerging markets are:
- Thorough market research: Conduct in-depth market research to understand the needs,
consumption habits and preferences of local consumers. This will help Essilor develop
products and marketing strategies that are suitable for the culture and lifestyle of
customers in emerging countries. Use social media channels and online advertising to
reach the target audience more effectively.
- Design appropriate products: Essilor can focus on developing affordable products and
services that still meet high quality standards. Since the bottom of the pyramid is still the
largest segment of the market here. The company can also focus on creating products and
services that are suitable for the specific needs of consumers in emerging countries. In
particular, consider features such as durability, light weight and stylish design to attract
consumers.
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good relationships with consumers and build trust. Organizing educational programs to
raise awareness about eye health in the community. Cooperating with local health
organizations to communicate the importance of eye care.
These recommendations will help Essilor optimize its business operations and effectively
capitalize on opportunities in emerging markets.
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III. References
Cấu hình ngang ngửa nhưng giá bán chỉ bằng nửa Tesla, xe điện VinFast liệu có thể
cạnh tranh tại Mỹ? (2022). From https://vietnambiz.vn/lieu-vinfast-co-the-
canh-tranh-ngoi-vuong-cua-tesla-202210511151155.htm
Cơ hội và thách thức của VinFast tại thị trường Đông Nam Á. (2024). From
https://vneconomy.vn/techconnect/co-hoi-va-thach-thuc-cua-vinfast-tai-thi-
truong-dong-nam-a.htm
Điểm qua chặng đường 5 năm “vươn ra biển lớn” của VinFast. (2024, 03). From
https://vinfast.vn/diem-qua-chang-duong-5-nam-vuon-ra-bien-lon-cua-vinfast/
lõi, G. t. (2024, 09 21). Giá trị cốt lõi của VinFast: Nền tảng vươn tầm thế giới. From
Giá trị cốt lõi của VinFast: Nền tảng vươn tầm thế giới:
https://brademar.com/gia-tri-cot-loi-cua-vinfast/
Phân tích thương hiệu Vinfast: Định vị và chiến lược phát triển. (2023). From
https://taothuonghieu.com/thuong-hieu-vinfast/
Thị Trường Mục Tiêu Của Vinfast. (2023, 7 4). From
https://webchuyennghiep.com.vn/thi-truong-muc-tieu-cua-vinfast/
Vén Màn Tầm Nhìn Và Sứ Mệnh Của VinFast: Hành Trình Chinh Phục Thế Giới Bằng
Xe Xanh. (2024, 07 15). From https://otothaiphong.vn/tam-nhin-va-su-menh-
cua-vinfast/
VinFast chính thức động thổ nhà máy xe điện tại Ấn Độ. (2024). From
https://vinfast.vn/vinfast-chinh-thuc-dong-tho-nha-may-xe-dien-tai-an-do/
VinFast chính thức khai trương đại lý đầu tiên tại Indonesia. (2024). From
https://vinfast.vn/vinfast-chinh-thuc-khai-truong-dai-ly-dau-tien-tai-indonesia/
Vinfast. (n.d.). Vinfast. From Vinfast: https://vi.wikipedia.org/wiki/VinFast
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