Established in 1968 as a prefabrication plant to produce exported leather goods. Joint-stock company, employees in the company hold 49% and 51% is holded by the state. Specializes in producing genuine and imitation leather products. Manufactures products for exporting. Manufactures products based on foreign partners preferences. Gloves, shoes, briefcases & Men's Wallet, women's sandals & shoes, small key bags

1. HOA NI
SHOE
COMPANY

2. CORPORATECORPORATE
PROFILE:PROFILE:
HOA NIHOA NI
SHOE COMPANYSHOE COMPANY
Established in 1968 as
a prefabrication plant to
produce exported
leather goods.
Joint-stock company,
employees in the
company hold 49% and
51% is holded by the
state.
Specializes in
producing genuine and
imitation leather
products.
Manufactures products
for exporting.
PRODUCTS &
SERVICES
Manufactures
products based on
foreign partners
preferences.
Gloves, shoes,
briefcases & Men's
Wallet, women's
sandals & shoes,
small key bags

3. CASE OBJECTIVE
To obtain more control
over foreign markets as
well as to be successful
in domestic markets are
problems faced by the
company.

4. i M i is theĐổ ớ
economic reforms
initiated in
Vietnam in 1986
with the goal of
creating a
"socialist-oriented
market economy"
"Doi Moi"
EFFECTS
Prior Doi Moi, and the
opening up of Eastern
Europe, business was
very difficult.
HNSC had to seek
partners under restricted
conditions and somewhat
closed markets.
Collapse of eastern
Europe bloc and
introduction of more
open market policy in
Vietnam, businesses in
general and with HNSC in
particular have positively
affected.

5. CORPORATE
PERFORMANCE
1992
exporting to
Italy &
Thailand
1996
Started to
export South
Korea
Recently,
developed a
reputation for
on time
deliveries and
high product
quality.
1998,
HNSC
produced
600,000
women's
shoes,
500,000
gloves,
600,000
different bags.
Annual
Turnover of
51.5 billion
dong in the
year 1998.
1 USD =
13,391.33695
3 VND in
1998.

6. PRICING
STRUCTURE
Raw materials account for a
large proportion (68-75%) of
price structure of footwear.
Enterprises
import most
of the
important
materials
such as
leather,
leatherette,
canvas for
upper parts,
PVC, PU
paint, fabric,
and glue.
Every year,
Vietnam
spends
approximat
ely US$
300 million
on
importing
leatherette
and leather.

7. VIETNAM'S DOMESTIC
FOOTWEAR SECTOR ANALYSIS

8. PORTER’S FIVE FORCES ANALYSIS
High cost barrier
and low profit
margin.
High Investments
as it requires well
setup distribution
channels
New Free Trade
Agreements
Liberal laws for
foreign entrants
THREAT OF
NEW
ENTRANTS
THREAT OF
SUBSTITUTES
INDUSTRY
RIVALARY
BARGAINING
POWER OF
BUYERS
BARGAINING
POWER OF
SELLERS
Except for
atheletic,
orthopedic &
dancing shoes
sandals,
slippers, croax
etc. Are some
substitutes
Switching cost
is very low.
Technological
Advancements
Buyers are less
concentrated,
so reduces the
buying power.
Don't buy in
large volumes
Buyers are
more sensitive
to prices.
Any supplier
that meets
quality
standards for
the company
will be able to
supply these
commodity
goods.
Supplier
concentration-
Fragmented
Highly
competitive
Rapid
Growing
Market
High exit
barriers

9. FORCES TREND ANALYSIS RATING
THREAT OF NEW ENTRANTS Medium to high 8/10
THREAT OF SUBSTITUTES Low to Medium 4/10
INDUSTRY RIVALARY High 10/10
BARGAINING POWER OF
BUYERS
Medium to High 6/10
BARGAINING POWER OF
SELLERS
Low 2/10

10. 10
08
06
04
02
00
10
08
06
04
02
00
10
10
10
08
06
04
02
00
08
06
04
02
08
06
04
02
00
00
THREAT OF NEW ENTRANTS
THREAT OF
SUBSTITUTES
BARGAINING
POWER OF
BUYERS
BARGAINING
POWER OF
SELLERS
INDUSTRY
RIVALARY

11. CONCLUSION FOR DOMESTIC FOOTWEAR
MARKET ANALYSIS
The corresponding market is highly
competitive with low entry barriers
and high exit barriers.
The footwear market is operating
on low profit ranges.

12. RECOMMENDATIONS
IncreaseMarket penetrationpricing.
HNSC shouldincreasemarketingactivities and
trytoincreasedomestic as wellas international
consumerawareness about theirproducts, sothat
theycancompetewellinthis highlycompetitive
market.

13. SWOT ANALYSIS OF HNSC

15. SO STRATEGIES ST STRATEGIES
WO STRATEGIES WT STRATEGIES
R
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16. HORIZON PLANNING

17. THANK YOUTHANK YOU
FOR YOUR KINDFOR YOUR KIND
ATTENTIONATTENTION
M V S SAI HEMANTM V S SAI HEMANT
BBA FOREIGN TRADE, SEM VBBA FOREIGN TRADE, SEM V