Thu Thiem Investment Corporation's 2012-2017 strategic plan aims to achieve stability and preservation by 2013, then growth with 25% annual increases in equity and 300 billion VND in pre-tax income by 2017. Key strategies include market penetration by improving products and customer service, market development in new areas using existing products, and concentric diversification into health and education using current land resources. Strategic models like SWOT, BCG, GE and SPACE analyses were used to evaluate internal/external factors and select appropriate strategies.

1. STRATEGIC PLAN
FOR 2012 – 2017
THU THIEM INVESTMENT CORP.

2. MỤC LỤC
SECTION I: COMPANY PROFILE
- Overview on Thu Thiem Investment
Corporation
- Vision and Mission
- Core Competencies and Core Values
SECTION II: EXTERNAL FACTORS
- PEST&N factors
- EFE Matrix
● Industry Analysis (5 Forces Model)
SECTION III: INTERNAL FACTORS
- IFE Matrix
SECTION IV: MARKET POSITION
MATRIX
SECTION V: STRATEGIC OBJECTIVES
SECTION VI: STRATEGIC MODELS
- SWOT Analysis
- BCG Matrix
- SPACE Matrix
- GE Matrix
- QSPM Matrix
SECTION VII: SELECTION OF
STRATEGIES AND SOLUTIONS

3. SECTOR I
COMPANY PROFILE

4. COMPANY OVERVIEW
●Thu Thiem Investment Corporation (Tcity) was established
on the date of 18 April 2003. Since the very first days, Tcity
has deployed many key residential projects in District. After 9
years of operation, Tcity has created a strong foundation of
human resources, finance, as well as numerous and valuable
experience. Tcity has been, is and will be towards the mission
to bring the residents a high-standard living environment with
the best hedonic values.
●With the motto “Credibility – Quality – Co-operation to
develop”, Tcity always endeavour to construct solid buildings
with a high standard setting for a sustainable development
and long-term benefits

5. TCITY HEADQUARTER

6. VISION
2017
Top real-estate
investment corporation
in HCMC – an investor
with dedication,
responsibility for
customers, the
community and society
2022
A top 10 real-estate
invesment coporation
in Vietnam

7. MISSION
We contribute to a better life by creating
space for living, working, studying,
resting and recreation in high standards,
ensuring people a joyful life

8. CORE COMPETENCIES
Quick and accurate sources of information about
planning, navigating spatial development
Land located in favourable areas with convenient
transport and complete, modern infrastructure
Good relationship with governmental sectors,
agencies and partners
1.
2.
3.
4. Excellent construction quality

9. CORE VALUES
●Creditability
●Quality
●Harmony of Interests
●Human Development
●Environmental Tectonics
●Lifetime Devotion
WE COMMIT

10. MISSION STATEMENT
1.Customers: Investors and individuals that have housing needs
2.Products/Services:
●Land
●Apartments
●Investment on Health, and Education
3.Markets: Highly competitive and challenging
4.Viability: Bring profits to shareholders in the long term by creating lifetime
values for people in need of establishment and security
5.Business doctrines: Credibility, Quality and Co-operation to develop
6.Company’s competitive advantages: Quick and accurate sources of
information about planning, strong relationship with governmental sectors, and
partners, land located in favourable areas
7.Concerns for employees: Create an ideal working and developing
environment for all employees, frequently train and coach skills and
qualifications so they will devote themselves to the company’s development
8.Concerns for the community and environment: Create a green and
clean environment as well as actively participate into charity events and acitivities:
donation, house building…

11. TCITY’S STRATEGIC BUSINESS UNITS
SBU LAND

12. TCITY’S STRATEGIC BUSINESS UNITS
SBU APARTMENTS

13. TCITY’S STRATEGIC BUSINESS UNITS
SBU HEALTH & EDUCATION INVESTMENT

14. PARTNERS
Dat Luat Law Firm
Pho Dong
Development and Investment
J.S.C

15. SECTION II:
EXTERNAL FACTORS

16. COMPANY’S ENVIRONMENT ANALYSIS
1
Macro-environment
●Politics
●Economics
●Society
●Technology
●Nature Industry Environment
●Competition
●Customers
●Suppliers
●Potential Competitors
●Alternatives
Micro-environment
●Sales
●Marketing
●Research and Development
●Human Resources
●Information System

17. MACRO-ENVIRONMENT ANALYSIS (PEST & N)
Politics
Economics
Society
Technology
Nature
- Circular 117/2004/TT-BTC: Fees for use of land at
market prices
- Circular 83/2012/TT-BTC: 6-month extension of
deadline for Value Added Tax; 9-month extension of
deadline for Corporate Income Tax
- High (bank) interest rates for real-estate (20-21%): poor
- High rate of inflation. Reduced capital mobilisation
interest rates (9%), reduced interest rates
● Increased foreign direct investment (FDI)
Growing population, young population structure, tendency
of living independently, owning a private home/apartment
Developing Internet, easy real-estate information access
Healthy and natural environment (river systems, canals ...)

18. EFE MATRIX
Evaluation: Tcity’s EFE score = 2.93 >2.50 => well responded

19. INDUSTRY ANALYSIS
MICHAEL PORTER’S 5 FORCES MODEL
Competition
within industry
Buyers
Potential
Competitors
Suppliers
Alternatives

20. INDUSTRY ANALYSIS
MICHAEL PORTER’S 5 FORCES MODEL
1. Competition within industry: HIGH LEVEL
● High cost of market enter
● Many existing competitors
● Great barriers to prevent exit
● Slowing industry growth
● High fixed costs and inventory costs
● High-level product differentiation
● High costs of switching products

21. PHÂN TÍCH NGÀNH KD
MÔI TRƯỜNG 5 ÁP LỰC (5 FORCE MODEL)
2. Suppliers’ (contractors) negotiation capability: HIGH
● Working with only one contractor
● Difficult to find a new partner (time-consuming and costly)
● Not many high quality contractors
3. Threats of alternatives: NONE

22. 4. Market barriers: HIGH
● High costs of entering industry
● Daunting policies on Real-estate development
● Unstable government policy
5. Buyers’ powers: LOW
● High costs of switching products. Few chances to
change to other products (Low)
● Broad advertisement information (High)
● Quality not affected by customers (Low)
PHÂN TÍCH NGÀNH KD
MÔI TRƯỜNG 5 ÁP LỰC (5 FORCE MODEL)

23. SECTION III
INTERNAL FACTORS

24. INTERNAL FACTORS
■Organisational structure, corporate culture
■Orientation of Management
■Human Resources
■Research and Development
■Management, Training Procedures
■Finance
■Marketing
■Information Systems

25. IFE MATRIX
Evaluation: Tcity’s IFE = 2.68 > 2.50 => well responded

26. IFE MATRIX
STRENGTHS
● Close relationship with the Government
● Good relationship with partners (lifetime partners)
● R & D: quick acquisition of planning, legal and market
information to develop new products/projects
● Good quality of construction

27. IFE MATRIX
WEAKNESSES
● Newly-restructured hence unstable organisational
system
● Non-equal qualifications of staffs, non-focused training,
lack of motivation
● Unsatisfactory customer service
● Not concentrated on Marketing & PR

28. SECTION IV
COMPETITIVE MATRIX

29. COMPETITIVE MATRIX
SBU LAND

30. COMPETITIVE MATRIX
SBU APARTMENTS

31. COMPETITIVE MATRIX
SBU HEALTH & EDUCATION INVESTMENT
UNABLE TO ALLOCATE ANY COMPETITOR

32. COMPETITIVE MATRIX
ANALYSIS RESULTS

33. SECTION V
STRATEGIC OBJECTIVES

34. STRATEGIC OBJECTIVES
●Between 2012 and 2013: Stability, Preservation
Sufficient profits to maintain company operations
●From 2014 to 2017: Growth
Annual Growth Rate achieving 25% of owners’
equity, income before tax reaching 300 billion VND

35. SECTION VI
STRATEGIC MODELS

36. STRATEGIC MODELS
●SWOT Matrix
●BCG Matrix
●GE Matrix
●SPACE Matrix
●QSPM Matrix

37. SWOT MATRIX
Strengths
S1. Close relationship with the Government
S2. Good relationship with partners
S3. R&D: quick acquisition planning, legal
actions and market information
S4. Good construction quality
Opportunities
O1. Tendency of independent living
O2. High rate of inflation
O3. Policies to support Real Estate
O4. Growing population
O5. Increasing FDI
Weaknesses
W1. Newly-restructured organisational
systems
W2. Non-equal qualifications of staff, non-
focused training, lack of motivation
W3. Dis-satisfactory customer service
W4. Not focused on Marketing & PR.
Threats
T1. Tax policy on Real Estate
T2. High interest rates for Real Estate
T3. Economic crisis
T4. Increasing competition level

38. SWOT STRATEGIES
SWOT Opportunities
O1. Tendency of independent living
O2. High rate of inflation
O3. Policies to support Real Estate
O4. Growing population
O5. Increasing FDI
Threats
T1. Tax policy on Real Estate
T2. High interest rates for Real
Estate
T3. Economic crisis
T4. Increasing competition level
Strengths
S1. Close relationship with the
Government
S2. Good relationship with
partners
S3. R&D: quick acquisition
planning, legal actions and market
information
S4. Good construction quality
S-O strategies
S3, S4, O1, O3, O4: Market
penetration: expand and
improve market shares
S1, S2, S3, O5: Product
development: focus on Health
and education
S1, S2, O2, O3, O5: Market
development: bring existing
products to new markets such
as Ben Tre, Nha Trang, Hanoi
S-W strategies
S3, S4, T4: Horizontal
integration: acquire the
competitors
S1, S2, T2: Alliance/Joint-
venture: agree with banks on
interest rates

39. SWOT STRATEGIES
SWOT Opportunities
O1. Tendency of independent living
O2. High rate of inflation
O3. Policies to support Real Estate
O4. Growing population
O5. Increasing FDI
Threats
T1. Tax policy on Real Estate
T2. High interest rates for Real
Estate
T3. Economic crisis
T4. Increasing competition level
Weaknesses
W1. Newly-restructured
organisational systems
W2. Non-equal qualifications of
staff, non-focused training, lack of
motivation
W3. Dis-satisfactory customer
service
W4. Not focused on Marketing &
PR.
W-O strategies
W3, W4, O1, O2, O3, O4, O5:
Market penetration: improve the
quality of customer service and
increase brand by focusing
Marketing & PR.
W1, W2, O5: Alliance:
associate with a personnel
company with high-quality staff
training in order to develop
company’s human resources
W-T strategies
W1, W2, S3: Concentric
diversification: take
advantage of current land
resources to expand to
Health and Education.

40. BCG MATRIX
The real-estate market in the last 3 years (2009-2011)
has been in a difficult period with decreased growth rate
and negative MGR (Market Growth Rate) index
No BCG analysis

41. GE MATRIX
LAND
INDUSTRY ATTRACTIVENESS COMPANY COMPETITIVENESS

42. GE MATRIX
APARTMENTS
INDUSTRY ATTRACTIVENESS COMPANY COMPETITIVENESS

43. GE MATRIX (Results)
COMPANY COMPETITIVENESS
INDUSTRYATTRACTIVENESS
1.002.003.004.005.00
Low
Average
High
1 (I) 6 (S)2 (I)
3 (I) 4 (S) 7 (H)
5 (S) 8 (H) 9 (H)
(I): Invest/Develop
(S): Select/Harvest
(H): Liquidate
5.00
3.67
SBU Land
SBU Apts
2.33

44. SPACE MATRIX

45. SPACE MATRIX
FS: 13/7 = 1.86
ES: -19/6 = - 3.17
= - 1.31
IS: 30/6 = 5.00
CA: -24/9 = - 2.67
= 2.33

46. TCITY’S QSPM MATRIX

47. TCITY’S QSPM MATRIX

48. SECTION VI
SELECTING STRATEGIES
& SOLUTIONS

49. SELECTING STRATEGIES
* Market penetration: SBU Land and Apartments
* Product development: SBU Health & Education Investment

50. SOLUTIONS FOR LAND & APARMENTS
1. Cost management: Reduce or cut unnecessary costs and
calculate prices reasonably to design the best pricing policy for fast
inventory push-out and recall of owned funds
2. Personnel:
●Select employees with appropriate professional qualifications.
●Fair policy on wages, apply bonus-on-sale policy to encourage
sales department to work hard.
●Introduce policy on training professional qualifications and
customer service skills.
●Introduce policies on product support. Information on
buyers/sellers’ needs must be constantly updated to ensure the liquidity
of the product.

51. SOLUTIONS FOR LAND & APARMENTS
3. Marketing & PR: Reduce Marketing & PR costs in the period 2012-
2013. Focus on promoting product quality, environments & habitat,
utilities, security through the website. Focus on advertising after a
good signal of market recovery.
4. Support policy:
● Flexible sales policy: Split payment schedules into instalments in
accordance with the solvency of the majority of customers.
● Link with banks for loan support (70%) and low-interest rates applied
to customers when purchasing real estate. The company supports
50% interest rates in the initial year.
● Link with real estate trading floors to promote the sales.

52. SOLUTIONS FOR LAND & APARMENTS
5. After-sale service:
●Support customers in housing construction: guiding document
processes, construction & work completing procedures
●Improve public utilities, create good living environments & habitats.
●Ensure security for the whole area to enhance the value of residential
life.

53. SOLUTIONS FOR HEALTH & EDUCATION
● Promote R&D
● Build relationships with partners in the areas of health & education
● Plan to call for/attract investment
● Train staff qualifications and skills

54. THANK YOU