Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond
This case is set in 2017, when Co Gia Tho, Chairman of the Board at Thien Long Group Corporation ("TLG"), a Vietnam-based manufacturer and supplier of writing instruments and stationery products, is considering further international expansion. While Vietnam already had over 65,000 points of sale across the country, the company is looking to grow stronger by developing overseas markets. Founded in 1981 as a small family business manufacturing ball-point pens, TLG had grown to become the top stationery manufacturer in Vietnam and a market leader in the region. By end-2016, the company had a market capitalisation of approximately VND 4,000 billion (US$176 million), and total revenue of VND 2,162 billion (US$95 million). Its products were being distributed to more than 50 countries across six continents. Export revenues accounted for nearly 15% of the group's total revenue, and had been growing at over 30% year-on-year for the past three years. And yet, it continued to be a challenging proposition. What could Co do to enhance TLG's reach overseas? Moreover, given the global megatrend of rapid digitisation which was causing headwinds for the growth of physical office supplies in the more developed countries, how best could it adapt its strategy in the face of the changing dynamics of this almost commoditised and highly fragmented stationery industry?
Swot Analysis of "Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond" written by Philip Zerrillo, Havovi Joshi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Stationery Vietnam facing as an external strategic factors. Some of the topics covered in Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond case study are - Strategic Management Strategies, Growth strategy and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond casestudy better are - – technology disruption, wage bills are increasing, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, increasing household debt because of falling income levels, increasing inequality as vast percentage of new income is going to the top 1%, digital marketing is dominated by two big players Facebook and Google,
there is backlash against globalization, increasing commodity prices, etc
Introduction to SWOT Analysis of Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Stationery Vietnam, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Stationery Vietnam operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond can be done for the following purposes –
1. Strategic planning using facts provided in Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond case study
2. Improving business portfolio management of Stationery Vietnam
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Stationery Vietnam
Strengths Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Stationery Vietnam in Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond Harvard Business Review case study are -
Successful track record of launching new products
– Stationery Vietnam has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Stationery Vietnam has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Sustainable margins compare to other players in Sales & Marketing industry
– Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond firm has clearly differentiated products in the market place. This has enabled Stationery Vietnam to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Stationery Vietnam to invest into research and development (R&D) and innovation.
High brand equity
– Stationery Vietnam has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Stationery Vietnam to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Stationery Vietnam digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Stationery Vietnam has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Operational resilience
– The operational resilience strategy in the Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Innovation driven organization
– Stationery Vietnam is one of the most innovative firm in sector. Manager in Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Superior customer experience
– The customer experience strategy of Stationery Vietnam in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Analytics focus
– Stationery Vietnam is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Philip Zerrillo, Havovi Joshi can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Ability to recruit top talent
– Stationery Vietnam is one of the leading recruiters in the industry. Managers in the Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Learning organization
- Stationery Vietnam is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Stationery Vietnam is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Low bargaining power of suppliers
– Suppliers of Stationery Vietnam in the sector have low bargaining power. Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Stationery Vietnam to manage not only supply disruptions but also source products at highly competitive prices.
Diverse revenue streams
– Stationery Vietnam is present in almost all the verticals within the industry. This has provided firm in Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Weaknesses Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond are -
Skills based hiring
– The stress on hiring functional specialists at Stationery Vietnam has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Lack of clear differentiation of Stationery Vietnam products
– To increase the profitability and margins on the products, Stationery Vietnam needs to provide more differentiated products than what it is currently offering in the marketplace.
Low market penetration in new markets
– Outside its home market of Stationery Vietnam, firm in the HBR case study Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Stationery Vietnam supply chain. Even after few cautionary changes mentioned in the HBR case study - Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Stationery Vietnam vulnerable to further global disruptions in South East Asia.
High cash cycle compare to competitors
Stationery Vietnam has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Products dominated business model
– Even though Stationery Vietnam has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond should strive to include more intangible value offerings along with its core products and services.
Increasing silos among functional specialists
– The organizational structure of Stationery Vietnam is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Stationery Vietnam needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Stationery Vietnam to focus more on services rather than just following the product oriented approach.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Stationery Vietnam is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Capital Spending Reduction
– Even during the low interest decade, Stationery Vietnam has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Stationery Vietnam has relatively successful track record of launching new products.
Aligning sales with marketing
– It come across in the case study Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond can leverage the sales team experience to cultivate customer relationships as Stationery Vietnam is planning to shift buying processes online.
Opportunities Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond are -
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Stationery Vietnam can use these opportunities to build new business models that can help the communities that Stationery Vietnam operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Using analytics as competitive advantage
– Stationery Vietnam has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Stationery Vietnam to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Stationery Vietnam is facing challenges because of the dominance of functional experts in the organization. Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Loyalty marketing
– Stationery Vietnam has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Creating value in data economy
– The success of analytics program of Stationery Vietnam has opened avenues for new revenue streams for the organization in the industry. This can help Stationery Vietnam to build a more holistic ecosystem as suggested in the Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond case study. Stationery Vietnam can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Stationery Vietnam can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Stationery Vietnam to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Stationery Vietnam can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Stationery Vietnam can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Developing new processes and practices
– Stationery Vietnam can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Stationery Vietnam in the consumer business. Now Stationery Vietnam can target international markets with far fewer capital restrictions requirements than the existing system.
Buying journey improvements
– Stationery Vietnam can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Building a culture of innovation
– managers at Stationery Vietnam can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.
Threats Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond are -
Increasing wage structure of Stationery Vietnam
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Stationery Vietnam.
Stagnating economy with rate increase
– Stationery Vietnam can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Shortening product life cycle
– it is one of the major threat that Stationery Vietnam is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Regulatory challenges
– Stationery Vietnam needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
High dependence on third party suppliers
– Stationery Vietnam high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Stationery Vietnam in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond, Stationery Vietnam may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Stationery Vietnam business can come under increasing regulations regarding data privacy, data security, etc.
Environmental challenges
– Stationery Vietnam needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Stationery Vietnam can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Stationery Vietnam with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Stationery Vietnam can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond .
Weighted SWOT Analysis of Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Thien Long Group Corporation: Stationery Success in Vietnam, Dynamic Ambition Beyond is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Stationery Vietnam needs to make to build a sustainable competitive advantage.
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