Nowadays, Vietnam is known as one of developing countries in Asia, and this is also a potential situation to attract both foreign and domestic investors. Co-op Mart is one of biggest supermarket brand names in Vietnam market, which is located its branches in many main areas through Vietnam, and almost focus on the big cities, such as Ho Chi Minh, Hanoi, etc. Co-op Mart is becoming new types of market which replaces the traditional market; moreover, it supports to customer an efficiency and confidence product. At the end of last year, Co-op Mart achieved annual revenue around 5000 bil VND and plan to expand its operating range with about 100 supermarkets in next 10 years. This report will describe and analyze some market conditions and trends which affect to Co-op Mart’s development; moreover, it also discusses about some Technologies which are useful for company in order to improve Information Management or Knowledge Management. (Ly. H, 2007)
II.BUSINESS CONDITIONS FOR SUPERMARKET SECTOR
In the current situation, Vietnam is partnership of WTO, so commercial development in domestic is operating with many business sectors that require investing much on infrastructure, labor force, technologies, etc. Especially, in city areas, by increasing and expanding the number of trade centers and supermarkets which satisfy market demand. Thus, it brings about a trend development based on supermarket system which aims to main areas in domestic, such as Ho Chi Minh, Hanoi; however, almost all are under unprompted, therefore, it does not fit with the progressing speed of market. On other hand, because of lacking of resources, such as labor force, technologies and capital, so expanding of trade centers/supermarkets are limited. (TTXVN, 2007)
According to article, “Domestic supermarket jump on retail market”; nowadays, Vietnamese market is a potential and highly consumption environment, so it attracts a lot foreign investors; therefore, opened retail market is an essential step to have more foreign capital. It is due to an increasing in competition of Vietnamese retail market, and requires big change with domestic supermarket in order to survive.
However, in Vietnam, there is now only 10% of market share is owned by modern distribution channels, such as supermarket, wholesaler centers, trade centers; it means the other 90% are still following the traditional distribution channels, such as traditional markets. Thus, it is one of the most attractive conditions with foreign investors to enter Vietnam market.
Retail distribution channel is increasing and expanding as a main factor for serving consumption in big cities now, while there are many opinions from small traders in tradition market think that supermarket business does not affect much to the tradition market; because of diversity goods and reasonable price. Therefore, Price is an important factor which impact to customer’s mind between two types of business above.
In addition, although Vietnamese retail system is developing dramatically, however, it also exist some weakness points that need to be overcome and implement in order to compete with other competitors. Firstly, domestic investors need a good finance, to cover any problems and costs. Logistic is second case and not less important in developing of supermarket business; company require a good logistic system, contains of cold storages, specialized lorries, goods control equipment, goods preservation, etc, that can ensure the best supporting product to customer and reduce much cost for management; however, Vietnamese supermarket business is not satisfy all requirement, for example, they still have problems about distributing product, time and place, so it affect much to business operating and increasing cost on labor management. The third one is professional manner; operating retail system requires professional processing within organization, such as Information management, Human Resource, etc; by controlling and training management skills, it brings more advantages for this type of business. For example, merchandise is an important step, so how to deal with a good price, promotion, marketing, etc with suppliers.
A.Retail-Point of Sales Technology(POS)
Point of Sales technology (POS) is referred to the combination between the hardware and software data in organization which records most of information about organization’s operating. For example, hardware system like Barcode Scanners, receipt printers, etc; they are connected with product and customer information in order to improve the customer’s purchases experience quick, efficient and accurate; moreover it also tracks the inventory level and sales which is used for decision making of managers.(MGM Solutions Inc, 2003)
This device helps manager to control all information about purchasing and products. By scanning product’s barcode, this device translates code into other forms like text or number, and then sends to manager’s computer that improve accuracy and efficiency of information flow within organization. Moreover, it is also applied with other common applications, such as Excel Spreadsheet, Databases, POS software, etc, that will help organization reduce cost for upgrading information to suit with a new technology. (MGM Solutions Inc, 2003)
b)Cash Register Software
This software brings a lot of advantages to supermarket sector, by customizing daily sales reports, and supporting for all inventory level control (how many available product, or sold out). In addition, this item also increases customer’s satisfaction by streamlined checkout experience, reducing respond time to customer. On other hand, Cash Register Software is also very useful for multi-distribution store like supermarket, which improves internal. (MGM Solutions Inc, 2003)
B.SAP Technology – Enterprise Software:
a)SAP Customer Relationship Management(CRM)
Supermarket sector has to focus much on its customer such as feeling or insight of customer in order to satisfy its customer. SAP CRM technology is used to enhance the relationship with customer by following customer demands and needs, improving sales/ services and marketing effectiveness, to streamline critical business processes across and beyond customer touch points, and quickly fix to business’s changing and market demands.(SAP, 2007)
b)SAP Product Lifecycle Management (PLM)
At the moment, most of business has to support the high-quality product, speedy delivery and reasonable cost; moreover, it also need to build up a good customer information-based and service is essential, especially for supermarket sector. Thus, SAP PLM software brings a new change, by providing an information based system which contains related product’s detail that is necessary for organization and its business partners in dealing with market operating, for example, designing, quality control, internal and external issues, etc.(SAP, 2007)
In conclusion, the environmental scanning report shows a general view on information resources about some current conditions and trends about supermarket sector that Co-op Mart needs to know in order to be used in its operating business. Moreover, by understanding deeply the weakness points from internal or external organization, such as domestic and foreign competitors, information about customer’s requirement or situation to expands company’s business, advantages and disadvantages of retail system, etc, company can overcome these problems and achieve goal. In addition, the report also points out some useful technologies which can enhance the Information Management or Knowledge Management infrastructure of Co-op Mart by supporting effectiveness and efficiency for operating business and in competition, such as Retail Point-of-Sale (POS) technology, Enterprise software. With these information that I collected, it proves that Co-op Mart needs to improve and update its IM/KM frequently in order to run its business smoothly and can adapt with changing of market.
• Ly. H, 2007, The Successfulness of Distributor in Vietnam, Vietnam Chamber of Commerce and Industry, 11th on Jan 2007, updated 22nd on August 2007, viewed August 17th 2007.<http://vibforum.vcci.com.vn/news_detail.asp?news_id=8735>
• MGM Solutions Inc, 2003, Bellingham WA 98225, Barcode Scanners, viewed 5 August 2007. <http://www.posguys.com/posguys/barcode-scanners/>
• MGM Solutions Inc, 2003, Bellingham WA 98225, POS system, viewed 5 August 2007. <http://www.posguys.com/posguys/pos-systems/>
• MGM Solutions Inc, 2003, Bellingham WA 98225, Cash Register software, viewed 5 August 2007. <http://www.posguys.com/posguys/cash-register/>
• SAP, 2007, Walldorf, Germany, SAP CRM: Software for Enabling Customer Relationship management (CRM) Without Compromise, viewed 5 August 2007. <http://www.sap.com/solutions/business-suite/crm/index.epx>
• SAP, 2007, Walldorf, Germany, SAP PLM: Software That Provides the Single Source of Truth for All Product-Related Information, viewed 5 August 2007. <http://www.sap.com/solutions/business-suite/plm/index.epx>
• The three main weaknesses of Vietnam retail system, 2007, Pacific Franchise Developing Corp, viewed August 17th 2007. <http://www.pfdc.com.vn/modules.php?mod=info&cat=22&top=&iid=181&lang=en>
• TTXVN, 2007, “Chợ, siêu thị, trung tâm thương mại thời gia nhập WTO “, Ministry of Planning and Investment, April 20th 2007, viewed August 17th 2007. http://thongtindubao.gov.vn/Default.aspx?mod=News&cat=137&nid=6602
• Vietnamnet, 2007, Pacific Franchise Developing Corp, viewed August 17th 2007.
• < http://www.pfdc.com.vn/modules.php?mod=info&cat=13&top=&iid=162&lang=en>