Australia market entry strategy of huu nghi food Joint stock company

.BANKING ACADEMY OF VIETNAM

FACULTY OF INTERNATIONAL BUSINESS

GRADUATION THESIS

TOPIC:

AUSTRALIA MARKET ENTRY STRATEGY OF HUU NGHI FOOD

JOINT STOCK COMPANY

STUDENT : BUI NGOC KIM OANH

CLASS : K21KDQTA

COURSE : 2018 - 2022

STUDENT ID : 21A4050337

INSTRUCTOR : Dr. NGUYEN THI THANH TAN

Hanoi, May 2022

BANKING ACADEMY OF VIETNAM

FACULTY OF INTERNATIONAL BUSINESS

GRADUATION THESIS

TOPIC:

AUSTRALIA MARKET ENTRY STRATEGY OF HUU NGHI FOOD

JOINT STOCK COMPANY

STUDENT : BUI NGOC KIM OANH

CLASS : K21KDQTA

COURSE : 2018 - 2022

STUDENT ID : 21A4050337

INSTRUCTOR : Dr. NGUYEN THI THANH TAN

Hanoi, May 2022

Bui Ngoc Kim Oanh – K21KDQTA i

ACKNOWLEDGEMENT

This graduation research would be impossible without the support of many people.

To begin with, I would like to express my deep sense of gratitude to my instructor –

Dr. Nguyen Thi Thanh Tan, due to her detailed guidance and encouragement, which

have contributed immensely to the evolution of the research. Despite her busy

schedule, she spent time giving me valuable ideas to fulfill this project. Her

knowledge, experience and suggestions have directed me to take the most suitable

decisions to make this thesis reliable and focus on the most substantial elements.

Secondly, my special thanks go to Huu Nghi Food Joint Stock Company’s Board of

Directors and my colleagues in Export Business Department for their support during

my internship and the collecting data. They have supported me with valuable

information and opinions that were very interesting and significant to answer my

thesis purpose which gave me a good ground to build my research.

Thirdly, I also take this opportunity to thank all my lecturers of International

Business Faculty for assisting me over the last four years of studying at Banking

Academy.

Last but not least, I am grateful to my parents and friends, who helped and

encouraged me a lot in finalizing this project within the limited time frame.

Bui Ngoc Kim Oanh – K21KDQTA ii

DECLARATION

I declare that this graduation thesis is my own research, under the guidance of Dr.

Nguyen Thi Thanh Tan. The contents and results in this research are accurate and

have never been published in any study works before. The references are properly

cited as prescribed in the reference section.

Hanoi, 23rd May 2022

Signature

Bui Ngoc Kim Oanh

Bui Ngoc Kim Oanh – K21KDQTA iii

TABLE OF CONTENTS

ACKNOWLEDGEMENT........................................................................................ i

DECLARATION...................................................................................................... ii

TABLE OF CONTENTS........................................................................................ iii

LIST OF ABBREVIATIONS...................................................................................v

LIST OF TABLE & FIGURE................................................................................ vi

INTRODUCTION.....................................................................................................1

CHAPTER 1: AN OVERVIEW OF MARKET ENTRY STRATEGY...............7

1.1.Market entry strategy theories..............................................................................7

1.2. Market entry modes..............................................................................................9

1.2.1. Direct export....................................................................................................10

1.2.2. Indirect Export ................................................................................................11

1.2.3. Strategic Alliences ..........................................................................................13

1.2.4. Joint Ventures..................................................................................................14

1.3. Entry market strategy decision making process.................................................15

1.4. Factors affecting the entry mode decision .........................................................17

1.4.1. External factors ...............................................................................................17

1.4.2. Internal factors ................................................................................................20

SUMMARY OF CHAPTER 1..................................................................................22

CHAPTER 2: HUU NGHI FOOD'S INTERNATIONAL MARKET...............23

ENTRY STRATEGY..............................................................................................23

2.1. General business activities.................................................................................23

2.2. Past experience penetrating Asian markets and lessons drawn……………………….26

2.2.1. Entry market strategy into Myanmar ..............Error! Bookmark not defined.

2.2.2. Entry market strategy into China ....................................................................28

2.2.3. Experience lesson............................................................................................31

SUMMARY OF CHAPTER 2..................................................................................32

CHAPTER 3: SOLUTIONS AND RECOMMENDATIONS FOR HUU NGHI

TO ENTER THE AUSTRALIAN MARKET ......................................................33

3.1. Category .............................................................................................................33

3.1.1. Australia PESTEL Analysis............................................................................33

Bui Ngoc Kim Oanh – K21KDQTA iv

3.1.2. Market size ......................................................................................................36

3.1.3. Market growth.................................................................................................39

3.2. Consumers..........................................................................................................41

3.3. Competitors........................................................................................................45

3.5. SWOT analysis...................................................................................................47

3.6. Strategic Options & Evaluation .........................................................................48

3.7. Recommendation................................................................................................50

SUMMARY OF CHAPTER 3..................................................................................51

CONCLUSION........................................................................................................52

REFERENCES........................................................................................................53

Bui Ngoc Kim Oanh – K21KDQTA v

LIST OF ABBREVIATIONS

HNF Huu Nghi Food

SOE State Owned Enterprises

UN United Nations

CAGR Compound Annual Growth Rate

FMCG Fast Moving Consumer Goods

R&D Research & Development

ISO International Organization for Standardization

HACCP Hazard Analysis and Critical Control Point System

FTA Free Trade Agreement

AU Australia

MT Modern Trade

GT General Trade

KA Key Account

CVS Convenience Store

EMC Export Management Company

ETC Export Trading Company