Saigon Coop Mart is the most successful leader of retailing and distribution in Vietnam on recent years. This company has been established in 1991, which is cooperated by many shareholder and state-own company. Since those years, Saigon Coop Mart has been using the traditional management system effectively and efficiently. Recently , it has own 13 stores around the countries and its ambitious in the next few year is expanding the market brand to 50 stores as well as becoming the biggest retailer in Vietnam .
However, Vietnam has signed a new contract to join WTO and it will bring more chances to Saigon Coop Mart as well as more international competition. In order to face up new trend of domestic market, the company has analyzed its external environment, especially in competitors, suppliers and customers.
Furthermore, as the development of information technology and information management, the company also applies the new tools for analyzing the information needs resources which are useful to adopt environmental changes in the future.
In order to backing up those alnalyze, this report will focus on environmental change theory and Henzcel information needs chart
Saigon Coop Mart is leading in retailing and distribution market in Vietnam in those recent years. However, traditional management can help them keep their position in domestic market for a long time after Vietnam has been joining WTO. There will be more challenge and competition in this industry. In order to identify and analyze the potential issue of this company, this report will focus on key factors and trends external environment that may effect company in the future as well as demonstrate the information needs and resources of the company.
2. Company Overview:
Saigon Coop Mart, owned and operated by the Saigon Union of Trading Cooperatives, accounts for an estimated 50% of modern food retailing in HCMC. (Isakson, 2001). There are approximately 21 member cooperatives comprising the union, and some of them engage separately in various business ventures, including import and export. In the early 1990s, Saigon Co-op was essentially an obsolete operation operated as an arm of the state. (Issaksson, 2001). As it found new life in the mid 1990s, the Co-op began modernizing and opening new stores, which range in size from about 1,100 square meters to 4,600 square meters for the newest supermarket under construction in early 2002 in the south of HCMC. The number of different items
(stock-keeping units, or SKUs) in an average store is reported to be about 20,000, with at least a quarter of the retail space allocated to non-food items (e.g., clothing and appliances)
3. Key factors and trend in external environment of business:
As the result of joining WTO, Saigon Coop Mart has many chances to choose suitable distributors for their business. However, it’s also known as a new challenge in distribution process that has been used for long time ago. Consequently, traditional distribution channel can not provide and efficient and effective good flow for the company. Moreover, customer become stricter in quality of goods and less loyalty with the retailing and distribution market in those recent year as the result of an incredibly increase in income and living standard of Vietnamese. In order to improve those business segments, the company has connected to Resources and Environment Department to check out those inbound good comes from the suppliers as well as chosen the right and reliability suppliers such as: Vissan, Pepsi co Beverage International (Vietnam news, 2007)
Competitor is an essential requirement for any progress in business. Coop mart has identified competition is the only way to improve their business in the future. After opening the market and signing the contract to cooperate to the other countries, Vietnam has faced up with many foreign companies and investors which have a professional management skills and huge capital. It’s seemed to be an unfair fight for domestic market, especially Saigon Coop Mart, which uses a traditional distribution channel, small capital and weak management skill. As a result of that, those issues will lead to fail to meet the international standard for retailing and distribution industry. However, the company starts realize those issues and decide to use business methods when approaching management from international dynamic (Thai News Services, 2006)
Vietnam boasts a relatively large population of 84 million people, half of whom are under 30 years. However, this retail market potential has not been fully tapped as only 10 percent of the country's total amount of goods is circulated through local supermarkets and trade centers, while the remainder is sold at street markets and small outlets. The reason for those lost in market share is the customer is becoming stricter in food quality as well as focusing in customer services. As the result of and increase in income and living standard , customers have more chances to choose a suitable price and customer services for their consumption , so their loyalty for one retailing and distribution channel will be less loyalty . The core management team of Saigon Coop Mart looked at this problem as the main issue of company and changed the customer service for the whole distribution channel. For instance, the company has launched many customers services campaign such as, free home delivery, carrying bag for woman, etc.(Thai News services )
4. Speculate on information needs and organization resources:
In recent, Saigon Coop Mart is still leading the domestic retailing and distribution in Vietnam. However , in the near future with many environmental change , the company has realized the influence of change in external environment and the information need , resources may effect the development of company . Besides, company has their own strategies to survive in an international challenge and competition after Vietnam has joined WTO.
• Angela Abell (2004) Conducting an information audit, TFPL
• Isakson, David (2001), “Success in Saigon.” A report of the KF Project Center, Stockholm, Sweden, 2001
• Factiva searching tools ,viewed on 20/08/2207 , http://global.factiva.com/factivalogin/tou/tou_en.html
Vietnam: Picture of 2007 trade activities in the eyes of entrepreneurs (Thai New Services, 2007)
Vietnam: Unequal fight for domestic distributors (Thai New Services, 2007)
Business: $377Mln Domestic Goods Distribution Network Underway
((c) 2006 Toan Viet Limited Company. All rights reserved.)
Vietnam: Steps taken to tap retail market potential ((c) 2006 iInvest Pty. Ltd. All Rights Reserved.)
Vietnam: Retail market expected to flourish (Thai New Services, 2007)
• Vietnam news , Saigon Coop Mart reflect on success , 16-11-2005 , viewed on 20/08/2007 , http://vietnamnews.vnagency.com.vn/showarticle.php?num=02ECO161105