Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptx
MBA Thesis_Dien Quang Strategic Management.pptx
1. THESIS POSTER:
DIEN QUANG LAMP JOINT STOCK COMPANY
BSAD689 – STRATEGIC MANAGEMENT
AU11 – HCM
Instructor: Dr. Nguyen Viet Anh
Student: Le Ngoc Long
2. DIEN QUANG LAMP JOINT STOCK COMPANY (DQC)
1973 2005 2007 2008 2016 2020
Establishment Equitization Shifted to LED Listed
Invested Hi-tech
factory 600bn VND
Started operation
Hi-tech factory
- Top 1 in lighting industry
- Incandescent (IL) & Fluorescent (FL)
- Domestic 55% - Export 45%
- Violation in acquired a large number of shares
- Controlled & operated by family members of
Mrs. Thoa (became Deputy Minister of MoIT in
2010)
- Focus on Downstream only
- Mainly relied on IL&FL
Shift to Mid & Upstream
- LED Chip Fabrication
- Eletronic board SMT line
- Final assembly line
- R&D facilities
RAL
DQC
3. Vision:
Dien Quang is oriented to develop under the model of a multinational technology corporation specializing in the field of
supplying lighting products, services and solutions, electrical equipment and smart control.
Mission:
Dien Quang's mission is to create products, services and solutions (2) that bring comfort, safety and aesthetics (7),
contributing to improving the quality of life of people and society of Vietnam (3). We believe customer satisfaction, both
households and organizations (1), is paramount to our continued success. Our solid focus on core-competence from
upstream to downstream allows us to be industry leaders (5). Our utilization of hi-tech R&D and manufacturing technology
(4) is critical to achieving our goal of operational efficiency. Our philosophy of social and environmental responsibility (8)
guides our operations, by prioritizing caring for our employees (9) and the environment (6). (94 words)
VISION & MISSION
(1) Customers
(2) Products or services
(3) Markets
(4) Technology
(5) Survival, growth, profitability
(6) Philosophy
(7) Distinctive competence
(8) Public image
(9) Employees
4. Lose all competitive advantages,
Seeking new competitive advantages to
return to market leadership.
A family-member group
controlled BOD & BOM since 2008
Lack of focus on domestic
market due to higher priority
on export
Too late invest in LED technology
caused huge market share lost
No growth in revenue and constant
decrease in profit after tax since 2014
Organizational structure and
human resources could not meet
the requirements of Strategies
PROBLEM STATEMENT
5. IFE Score: 2.4 – Below Average
New Hi-tech R&D and factory with LED fabrication are major
strengths need effectively exploitation
Ineffective distribution and misperception of brand position
are major weaknesses need to be improved
EFE Score: 2.72 – Above Average
LED market with large size and high growth rate are major
opportunities
Increasing competition is major threat
DQC aware and respond for O & T but not effectively
IFE Matrix EFE Matrix
7. Advantages Disadvantages
- Fully exploiting existing resources and
strengths, especially LED chip fabrication
capability (only DQC).
- Quickly capture a high-growth general lighting
market.
- Good foundation for eco-system in the future
- Great complementary marketing effort needed
to leverage the effect.
- Profitability depend significantly on Economies
of Scale.
- Market growth is expected to decline from
2030
- A new market with potential large scale and
attractive profits.
- Partially leverage resources and brand
awareness.
- Vietnam is still in emerging phase, the scale is
not large enough in the next 4-5 years.
- DQC lacks much needed expertise.
- Fragmented markets and unstandardized
technical standards.
- Resources ready for deployment.
- Large total market size.
- Difficult to win global customers.
- Not fully utilize of existing resources (SMT &
Plastic).
New LED Lamp portfolio,
differentiated by “Light Quality”
Smart products and
control solution
Contract manufacturing
business
EVALUATING
8. Qualitative Quantitative (QSPM –
Appendix 3)
New LED lamp portfolio,
differentiated by “Light Quality”
Smart products and
control solution
Contract manufacturing
business
RECOMMENDATIONS
3.54 (Highest STAS)
Most favorable
2.79
Good for long-
term success
3.16
A potential
contigency plan
Compete by Differentiation Strategy
Develop New LED lamp portfolio,
differentiated by “Light Quality”
Strategic Choice
11. Silicon Die LED Package Electronic Driver Optics & Cover Prototype Trial Test
External,
contract to University of Technology
(Basic research)
Internal
(Applied research)
Product Roadmap
R&D Process
Estimated budget
Research Orientaion Quality of Light
Blue light hazard Natural light spectrum
3% of revenue (2023)
R&D STRATEGY
12. Fine-tune channel structure
Prioritize “Push strategy” by concentrating on Channel
partners:
Point-of-sale management (display – presence – shelf space % - inventory
level & turn over)
Motivation by competitive margin & attractive incentive policies
Prepare sufficient resources to meet sales volume growth
according to forecast
Develop and implement TQM quality management system
Recruit high profile leaders for R&D, Branding, Sales &
Distribution from external
Search & develop human resources researchers for basic
science R&D, especially from on-campus
Focus on succession plans and retain key positions by ESOP
Financing for the increase in Working capital (Inventory) by
short-term financial assets, retained earnings, and short-term
debt.
SALES & DISTRIBUTION PRODUCTION
HUMAN RESOURCE FINANCE
13. REORGANIZE CORPORATE STRUCTURE
B.O.M
Commercial Marketing Production R&D
Corporate
Services
Finance &
Accounting
B2C
B2B
Marketing
R&D
LED Chip
SMT
Glass/Plastic
Final
Assembly
Human
Resource
Administra-
tion
MIS
LED
Electronic
Testing
R&D R&D
Current Restructure
16. PROJECTED FINANCIAL STATEMENT
Projected
Overall
• Fixed percentage of sales
Exceptional:
• COGS: decrease from 70% to 65%
• Opex: decrease from 30% to 25%
• Inventory: decrease from 50% to 35%
• Fixed assets: unchange
• Working capital: finance by short-term debt
18. CONTINGENCY PLAN
Unfavorable events
R&D failure or delay
Unsuccess to market new porfolio
Seek and license the equivalent research from
overseas
Contract manufacturing business (SMT & Plastic)
Contingency plan
Contingency plan Advantages Disadvantages
License the equivalent
research
- Allow to continue the selected
strategy
- Can be very costly
Contract manufacturing - Increase revenue to offset the
under-achievement
- Increase the capacity utilization
of SMT & Plastic factory
- LED Chip fabrication is not fully
utilized
- Cannot improve market position
of core business
19. CONCLUSION
Vietnam LED market is a very potential market with large scale and high growth rate. However, DQC is
not in the favorable market position due to the loss of competitive advantages which is resulted from
mistakes in the past and late in technology transformation.
Developing a new product line, which is differentiated in “light quality”, is the most approriate and
effective strategy for sustainable growth. This strategy will help the company reposition the brand,
thereby generating revenue growth that will increase its market share from 5% to 15% and improve
operating profit from 0% to 6% by 2025.
20. APPENDIX
1. Porter’s 5 Forces
2. Competitive Profile Matrix (CPM)
3. Quantitative Strategic Planning Matrix (QSPM)
4. Historical Business Result DQC & RAL
5. Historical Stock Price DQC & RAL
6. LED Industry Value Chain
21. RIVALRY AMONG
COMPETITORS
BARGAINING POWER OF
BUYERS
BARGAINING POWER OF
SUPPLIERS
THREAT OF SUBSTITUTE
PRODUCTS
THREAT OF NEW
ENTRANTS
HIGH
• Low entry barriers
• Low switching cost
• Low to medium capital
requirement
RATHER HIGH
• Small order size
• Low differentiated products
• Low switching cost
• Buyer’s information available
LOW
• No close substitute
products
MEDIUM
• Many suppliers with
equivalent products
• Medium switching cost
HIGH
- Numerous competitors
- Lack of differentiation
- Low brand loyaty
- Medium exit barriers
PORTER’S 5 FORCES
Industry competition:
RATHER HIGH
50 years ago there were only 2 company dominated lamp market. Rang Dong cover north market, Dien Quang occupy the south market. Both were state-own companies.
DQ chiem uu the vi thi truong phia nam lon hon, dong thoi dam nhan xuat khau cho 1 so nuoc xhcn theo hiep dinh hop tac cua chinh phu. DQ ngu quen tren chien thang
Giai doan 2005-2008 xay ra nhieu su kien buoc ngoac.
2005 equitization, nha nuoc thoai von khoi DQ, CEO thau tom co phan sai qui dinh de kiem soat cty. Sau do ba ta dc bo nhiem DM of MoiT. Cty do cac thanh vien trong gia dinh kiem soat den hom nay.
2007 thi truong bat dau chuyen tu cong nghe truyen thong sang cong nghe LED. DQ chuyen doi cham va chi tap trung vao downstream, tan dung khai thac the manh truyen thong. Trong khi Rang Dong thay doi quyet liet hon. Thi truong xuat hien nhieu player do cong nghe LED khong doi hoi EoS. Bat dau tu day doanh thu DQ gan nhu khong tang truong trong khi doi thu chinh tang truong lien tuc dat 5,000 bil gap 5 lan DQ nam 2020.
Trong 5 nam vua qua, DQ da co gang thay doi quyet liet. Dac biet la dau tu nha may san xuat den LED hien dai cover tu upstream den downstream. Nha may dc dua vao van hanh tu 2020. Ben canh do DQ cung no luc diversify sang 1 so linh vuc lien quang den dien va chieu sang nhung chua cho thay hieu qua. Do la ly do toi chon thuc hien de tai.
And here is the vision and mission which I only try to rephrase the original structure to include 9 neccessary elements
Tu cac phan tich va highlights vua trinh bay, 5 symptom dc tom tat nhu ben phai man hinh. As a result, DQ lose all the competive advantages.
Va rao can lon nhat de quay tro lai vi the leadership la DQ phai tim kiem va phat trien new CA.
Day la ket qua cua IFE va EFE matrix.
Ve tong the IFE dat 2.4 gan nguong trung binh. Kq nay phan anh