GRIGGS UNIVERSITY
Global Advanced Master of Business Administration

CAPSTONE PROJECT REPORT

HCMC - 2011

Finally, we want to say thank to board of management of Thai Tuan
Textile and Garment Company who supported and provided important
material and data of their company which we can use to complete this
capstone project report.

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TABLE OF CONTENT
Acknowledgement 2
Table of content 3
list of table 7
Introduction 8
CHAPTER I: THEORETICAL FUNDAMENTAL OF DOMESTIC
MARKET DEVELOPMENT ON TEXTILE PRODUCTS 11
I. Some issues of strategic management theory and market
development 11
1. Some strategic management theories 11
a. Strategy concept 11
b. Strategic management concept 12
c. Basic strategy models 12
2. Some basic concepts of consumer products market 12
d. Product consuming 12
e. Market development 13
3. The role and importance in the marketing of products, market
development of the business: 14
4. Some strategies to penetrate and develop markets 16
a. Products Development 16
b. Customers Development 16
c. Market development in geographic scope 16

b. Threats (T) 35
2. Internal Factor Evaluation 39
a. Strengths (S) 39
b. Weaknesses (W) 41
VII. SWOT Matrix 42
1. Use strengths to capture opportunities (SO) 45
2. Use strengths to overcome Threats (ST) 46
3. Overcome weaknesses to take advantage of opportunities (WO) . 49
4. Minimize weaknesses to avoid threats (WT) 49
5. Quantitative Strategic Planning Matrix - QSPM: 50
VIII. Conclusion of chapter 2 52
CHAPTER III: SOME SOLUTIONS CONSTRUCTION AND
DEVELOPMENT STRATEGIES OF DOMESTIC MARKET THAI TUAN
TEXTILE & GARMENT COMPANY 54
I. Opportunities and challenges for Thai Tuan Textile Company in the
development of domestic market 54
II. The solutions to develop domestic market of Thai Tuan textile
company 57
1. Product strategy 57
2. Selling price strategy 58
3. Contribution strategy 59
4. Promotion strategy 60
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5. Human Resource Strategy 60
III. A number of recommendations and proposals for Thai Tuan textile
company 61
1. The group of solutions to develop, complete production and
improve product quality 62

of man, and the industry work to solve many of society The export growth rate is
high, textile industry has made no small contribution to export growth chemistry.
In recent years, the garment industry has overcome difficulties in a spectacular
way, one of the industry-leading export nations. Entering 2010, the garment
enterprises have identified the 'door' opened.
Activities in the field of fabric and clothing manufacturing, fashion Corporation
Thai Tuan Garment and Textile (Thai Tuan Textile & Garment Corp.) is known as
one of the leading textile enterprises providing textile products and services fashion
in Vietnam.
Established in late 1993, Thai Tuan incessantly expanding manufacturing
operations of its business from the construction of textile factories, workshops, plant
dyes to the establishment and development expenditure Branch, Showroom system,
the center of fashion and sewing workshops. To date, Thai Tuan has 3 branches,
eight showrooms, more than 3,500 agents and 300 distributors spread across the
country.
Along with expanding investment and production activities - business is the
development of powerful computer facilities and equipment, especially the increase
in human capital. Besides enhancing the transfer of advanced technology from
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Japan and Europe, human resources are focused on development of Thai Tuan
expressed considerable number of the company's staff of about 1,300 people to date
compared to first time only 30 people.
For years, companies have contributed to the richness and diversity of the market
with many models and types of products, typically the product line silk, Silk Elastic,
non-elastic, voiles, high-quality materials level for girls branded LENCII many
customers are known and trusted, especially the high-end products such as digital
print, embroidery and silk.
Besides, Thai Tuan also has launched fashion label luxury apparel available

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CHAPTER I: THEORETICAL FUNDAMENTAL OF DOMESTIC
MARKET DEVELOPMENT ON TEXTILE PRODUCTS
I. Some issues of strategic management theory and market
development
1. Some strategic management theories
a. Strategy concept
Strategy, a word of military origin, refers to a plan of action designed to achieve
a particular goal. In military usage strategy is distinct from tactics, which are
concerned with the conduct of an engagement, while strategy is concerned with how
different engagements are linked. How a battle is fought is a matter of tactics: the
terms and conditions that it is fought on and whether it should be fought at all is a
matter of strategy, which is part of the four levels of warfare: political goals or
grand strategy, strategy, operations, and tactics. Building on the work of many
thinkers on the subject, one can define strategy as "a comprehensive way to try to
pursue political ends, including the threat or actual use of force, in a dialectic of
wills – there have to be at least two sides to a conflict. These sides interact, and thus
a Strategy will rarely be successful if it shows no adaptability.
Business perspective: match the capacity to make a difference and the external
environment.
Quinn (1980): "Strategy is a pattern or plan to integrate the major goals, policies,
and action sequences into a cohesive whole is a strictly"
Johnson and Scholes: "Strategy is the direction and scope of an organization in
the long term to gain a competitive advantage for organizations through the format
of its resources in a changing environment, to meet market demand and satisfy the
expectations of stakeholders”
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regulations, the consumption of products is the only organization to sell goods
produced on schedule and prices fixed in advance.
In the market economy, businesses themselves must decide three issues
important to the production of consumer products need to be understood in the
broad sense and narrow sense. Broadly, consumption is an economic process
includes many stages from the market research, identify customer needs, orders and
production organization to the organization of professional sales, contact sales
process the purpose of achieving the highest efficiency.
In strict sense, consumption goods, labor services, moving services is the
product of ownership of goods, labor services, services performed for customers
and collect money or goods to be sold to collect money.
e. Market development
Market Development simply means that getting customers, maintaining and
expanding the system of customers.
Businesses have to do some surveys required to point out that their products hit
the market if it will be seen at any level (position). Answer the question: Why do
customers choose to buy their products without buying the same products?
After that, enterprises must identify the target market (defined market segments,
target customers, sales growth is expected and desired ). Then make a new
approach for each customer they aim to target (for each of the buyers will have
different buying behavior, there are many factors governing the purchase
decision ).
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After identifying clear client goals, approaches; the enterprise must provide the
roadmap and achieve the expected results if the execution of that approach. This is
important because it will help enterprises make timely adjustments tactical, even
strategic adjustments to match the corresponding actual habits, buying behavior of
customers to target enterprises.

So in addition to highly profitable measures to reduce production costs to
enterprises to promote the sale of products, increasing the volume of freight traffic,
increasing sales. Speeds as high consumption of products, time products are in
circulation is declining which means that will reduce circulation costs, transfer
costs, inventory, storage, loss, loss etc create conditions for enterprises reduce
product costs and selling prices, increase competition and ensure the expected
profit.
The process of market development strategy also requires businesses to
understand the engine of choice and the factors favored customer in the market,
through which discovered the basis of competitive advantage, helping companies
industry sees opportunity in the market through the analysis of the needs of each
customer group. That may offer similar product but with different uses, different
packaging, different price, etc to cater to the different needs of different
customers.
More importantly, by identifying themselves a niche market segment, will easily
lead to successful strategies for the enterprise market based on the capability and
real advantage of the business suit needs of the market. Conversely, if companies
choose the wrong market, the strategy is a theoretical or always difficult to
implement successfully, because businesses can choose a market too big for their
ability , or a market that require the most urgent, most decisions of customers, the
enterprises are not able to respond better than other competitors.
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The strategy of the enterprise market is also the basis for enterprises to identify
and assess the market, it helps businesses track the market performance, judging the
changes in future market needs to catch up market.
4. Some strategies to penetrate and develop markets
a. Products Development
New products are an important factor in the development and survival of the

II. The global economic crisis and the global textile industry crisis
1. The world market
Textile industry in the world today are affected by the buyers rather than
producers, and retailers of textiles and garments in large economies of developing
leading buyers such as Wal-Mart, Sears, JC Penny, Liz Claiborne and Gap
holding a key role in promoting the development of the market.
Since early 2009, many developing economies no longer apply quotas on
imported textiles. However, these regulations exist that many WTO members to
implement anti-dumping actions, and expected number of these actions continue to
increase.
The credit crunch, the dwindling demand and strong competitive pressure on the
market has caused a huge range of textile companies in many countries fall into
bankruptcy, closure or temporary or permanent production Business perfunctorily.
Therefore, employment levels in the global textile industry has declined.
On the global textile market, China is still a major force, but not without
competitors. China remains the largest textile and garment exports in the world. The
end of quotas on textile and apparel imports from China to major markets like the
U.S. and Europe is important, however, the higher wages of workers and the yuan
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rise prices has made Chinese textile products are no longer attractive in price as
before. Many commercial sources of analysis that the textile exports of China are
expected to fall 15% this year. Many countries other textile and apparel exports
have lower labor costs, China as Bangladesh, Sri Lanka and Vietnam have started to
expand market share. Besides, many large import market in the world such as USA,
EU and Japan also wants to reduce the dependence of textile and garment imports
from China and has moved into the cooperation in other Asian manufacturers.
Early third quarter of 2009, the decline of textile and garment retailers across the
developed world has hit bottom, and the market is expected to recover in 2010. In

strategic planning to develop the domestic market and expand export
markets is a step steady and consistent.
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CHAPTER II: ANALYSIS OF DOMESTIC MARKET
DEVELOPMENT OF THAI TUAN TEXTILE & GARMENT
COMPANY
I. Introduction of Thai Tuan Textile Joint Stock Company
Thai Tuan Textile Company is one of not many textile companies have
developed strategies and products dominate the local market very early. Since it was
founded in late 1993, Thai Tuan continuous efforts to expand production and
business activities from the construction of textile mills, dyeing, sewing, developing
distribution networks, branches, Showroom system and abroad. Growth in sales
and distribution channels average 15 - 20% over a year.
II. Business situation of garment industry:
Vietnam's garment industry has made remarkable progress in recent
years. Textile and apparel exports of Vietnam also achieved growth results are quite
impressive. In this article, we will analyze the strengths - weaknesses
and opportunities - challenges ofVietnam's garment industry in recent years.
Vietnam's garment industry can avail a number of strengths. First, the equipment
of the garment industry has been renovated and modernized to 90%. The products
have a better quality and more difficult markets like the U.S., EU, and Japan
accepted.
Besides, the textile business has built up a relationship more closely with
importers, many large corporations in the world consumption. Firms themselves are
also customers in Vietnam evaluated as advantages in labor costs, skills and good
computer skills.

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5,7
5,2
4,9
5,0
5,0
5,1
The
growth
rate of
value
added, %
13,2
13,5
9,2
-3,0
-0,9
9,8
9,2
9,0
Value-
added in
textile
sector,
million
USD
325,0
368,9
402,8
390,7
387,2

Textile
trade
balance,
million
USD
-2.930,0
-3.588,0
-4.184,8
-3.381,6
-3.603,4
-3.568,0
-3.247,9
-3.183,8
The export
turnover of
5.579,0
7.186,0
9.054,4
7.424,6
8.335,4
8.898,6
8.929,0
9.505,3
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garments,
million
USD
The import

III. Business situation of Thai Tuan Textile Joint Stock Company
Return to 2010, despite the many difficulties and challenges, but has been the
positive signal for the Vietnamese textile and garment sector in general and in
particular of the Corporation. The biggest challenge export market of textile apparel
industry will have plenty of stiff competition from countries such as China's strong
exports, India, Bangladesh
However, the corporation has been striving to fulfill the plan targets within 06
months of 2010 following specific:
No
Indicator
Unit
2009
2010
Compared
Actual / Budgeted
1
Earning
Million
vnd
449,001
533,368
19.68%
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2
Earnings
before tax
Million
vnd


ISO 14000, SA8000, 5S, a team more than 1400 staff members were trained at
home and abroad, professional work
In fact, in recent two years, business investment was stronger focus on market
research, fashion and design new products, organizing specialized production line
fit, construction brands, combined with programs to rural goods. The turn of the
domestic market pluses a positive impact from the campaign ”Vietnamese uses
Vietnam’s products,” the textile business was initially brought a new look, more
profound changes in domestic market.
2. Corporate Governance
- Strengthening the management, conduct organizational restructuring,
reorganizing departments, merging firms produce under the motto "Compact,
efficient and specialized."
- Applied strictly to the comprehensive saving measures, particularly the cost of
production, consumption costs. Perform well the administration costs.
- The application of new technologies in production technology Lean methods
from 2008 to now make the effect of labor productivity improved markedly
(average increase of 20% compared with before).
- Implementation of intensive investment in machinery and specialized
equipment to replace many workers use the same time meet the increasing quality
of customer.
3. Trademark
But deeper with ordinary customers, but the Thai Tuan took pains to insist the
quality is top competition criteria. Thai Tuan provide only quality fabric is tested,
committed no skin irritants. Thus, the Thai Tuan fashion overcame prejudice
"criticism" of Vietnam.
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Thai Tuan pays great attention on cultural factors such as each region, the habit