Vietnamese business Essay Example

buy from foreign European and American brands (Sinh 1995, p. 29). Vietnam offers a plethora of reasons for businesses to enter its market, including direct sales, research and development, and exploring other Asian markets (Mccargo 2004, p. 56).

Having a strategic goal is crucial for a successful entry strategy, as well as considering the role of Vietnamese market in the overall global strategy. Starbucks coffee provides a chance to implement a more universal approach. It's essential to avoid the mistake of assuming that all Asian markets are identical when expanding into Vietnam.

Starbucks needs to gain a deeper understanding of the Vietnamese market and adapt its product to the local culture in order to achieve success. Similarly, when considering partnering with a Vietnamese firm, companies must weigh the benefits and drawbacks. While relying on a Vietnamese partner is often advised for foreign entrants, some businesses have succeeded without one. However, these entrants may still rely on relationships with Vietnamese suppliers and distributors, even if they do not form joint ventures (Abuza 2002, p.).

According to Abuza (2001, p. 90) and Mccargo (2004), foreign entrants are finding joint ventures with Vietnamese trading companies less popular due to the trading companies' lack of marketing expertise, making it easier for Starbucks to enter Vietnam directly with changes in regulations and distribution systems.

Aside from leveraging research and knowledge bases in industrial markets, forming a partnership presents other compelling reasons. It is crucial to evaluate the distinct market conditions of Vietnam when determining the significance of potential partners. Failing to recognize the importance of trading companies and other components of the Vietnamese infrastructure, which may initially seem unnecessary, could lead Starbucks to undervalue

their role in conducting successful business. Without a local partner, bureaucratic challenges and other obstacles may arise.

When creating an entry strategy for Vietnam, there is a crucial decision to be made between partnering with a local company or going solo. While traditional reasons for partnering, such as access to complex distribution, may not be as compelling as before (Gainsborough 2002, p. 245), understanding the emerging Vietnamese consumer remains significant. Therefore, it is important for Starbucks to carefully evaluate potential partners' insight into the current market rather than solely focusing on their past successes. Additionally, developing independent networks is now more cost-effective and hiring employees has become less challenging.

This has made solo ventures much simpler compared to previous times. One common method for overseas companies to establish themselves in markets is franchising. Yet, it often presents complications as the challenges of franchising overshadow its advantages (Fforde 1997, p.).

The flexibility to explore new directions in order to meet market demands may lead a company to consider owning its business. Moreover, understanding the Vietnamese market and business owners is crucial due to the close cooperation required between headquarters and franchisees. Such relationships are often easier for Vietnamese companies to establish compared to foreign counterparts.

Bibliography Abuza, Zachary. 2001, Renovating Politics in Contemporary Vietnam, Boulder, CO: Lynne Rienner. Abuza, Zachary. 2002, 'The lessons of Le Kha Phieu: changing rules in Vietnamese politics', Contemporary Southeast Asia, 24, 1. Abuza, Zachay,. 'Leadership Transition in Vietnam Since the Eighth Party Congress: The Unfinished Congress', Asian Survey, vol.

This text provides a bibliography of works by Zachary Abuza related to politics in contemporary Vietnam. Included are: "Renovating Politics in Contemporary Vietnam" (2001), "The lessons

of Le Kha Phieu: changing rules in Vietnamese politics" (2002), and "Leadership Transition in Vietnam Since the Eighth Party Congress: The Unfinished Congress" (Asian Survey, vol.).

The Asian Development Bank published the "Country Economic Review - Socialist Republic of Vietnam" in December 1998, numbered as 38, issue 12. The publication is attributed to ADB and can be found in Manila.On February 1, 2008, the American Chamber of Commerce in Vietnam website offered access to the Socialist Republic of Vietnam's 2000 Country Economic Review as published by the Asian Development Bank in Manila. The review is readily available on their online platform.