DEVELOPING A COMPETITIVE STRATEGY: A CASE STUDY OF THE THANGLONG GARMENT COMPANY IN HANOI, VIETNAM - Pdf 31

DEVELOPING A COMPETITIVE STRATEGY: A CASE STUDY OF THE
THANGLONG GARMENT COMPANY IN HANOI, VIETNAM
by
Dang Anh Tuan
A research study submitted in partial fulfillment of the requirement for the degree of Master of
Business Administration
Examination Committee: Prof. N. Ramachandran (Chairman)
Dr. Truong Quang
Dr. Arne Deussen
Nationality Vietnamese
Previous Degree Bachelor in Economics
National Economics University
Hanoi, Vietnam
Scholarship Donor Government of Switzerland
Asian Institute of Technology
School of Management
Bangkok, Thailand
April, 2001
ACKNOWLEDGMENT
I wish to express my deep gratitude to my advisor and Committee Chairman, Professor N.
Ramachandran for his useful guidance, suggestions and encouragement through out the research
work.
I also would like to express my sincere appreciation to Dr. Truong Quang, committee member,
for his sharing and encouragement for the research work.
I also grateful to Dr. Arne Deussen not only for serving as committee member but also for his
enthusiasm sharing, valuable suggestions for my research.
Thanks are also due to the Government of Switzerland, the Government of Vietnam, and the
Asian Institute of Technology for providing the scholarship and opportunity for me to pursuit
my master degree at AIT.
I also would like to extend genuine thanks to Mr. Phuong, Ms. Ha, Mrs. Binh and other staffs at
Thanglong Garment Company for their help and suggestion during the implementation of my

Table of Content.......................................................................................................................iv
List of Figure.............................................................................................................................vi
List of Table.............................................................................................................................vii
ACKNOWLEDGMENT.............................................................................................................................................II
TABLE OF CONTENT.............................................................................................................................................IV
1. CHAPTER 1
INTRODUCTION............................................................................................................................................IV
2. CHAPTER 2
LITERATURE REVIEW.......................................................................................................................................VIII
3. CHAPTER 3
EXTERNAL ENVIRONMENT ANALYSIS........................................................................................................XVI
4. CHAPTER 4
INTERNAL ANALYSIS......................................................................................................................................XXIX
5. CHAPTER 5
DEVELOPING COMPETITIVE STRATEGIES FOR THALOGA..........................................................XXXIX
6. CHAPTER 6
CONCLUSION AND RECOMMENDATION..................................................................................................XLIV
BIBLIOGRAPHY..........................................................................................................................................................I
APPENDICES.............................................................................................................................................................III
GUIDING QUESTIONS FOR DIRECT INTERVIEW........................................................................................IV
QUESTIONNAIRE....................................................................................................................................................VI
1. CHAPTER 1
INTRODUCTION
1.1. Rationale of the research study
In profit leaded organizations, net profit margin and return on equity are important measures of
their performance. To achieve high rate of profit, high sales volume is critical. But sales volume
is very much depend on the attractiveness of the products offered in terms of price, quality, and
other dimension that satisfy customer needs. The heart of this attractiveness lies on the
competitive advantage that a product has over other competing alternatives.
The research study aims at exploring current business practice at the Thanglong Garment

analyzed to identify strategic situation that company is facing. Strategies are developed for the
company and evaluated to choose the most suitable one for recommendation. Figure 1.1
illustrates the framework of the research study.
v
External Analysis
Mission and Goals
SWOT analysis
Strategic Choice
Internal Analysis
Alternative strategies
Strategy evaluation
Recommended strategy
Recommendation
Figure 1.1 Framework of the research study
1.4. Scope and limitation of the research
The research only focuses on one product category- jackets in Vietnamese market of Thaloga,
since the company under consideration manufacturing variety of products and competitive
strategy for each product type will not be the same. The reason to choose this product is that it
contributes an important proportion in company total revenue and that producing jackets for
domestic market is still new in company operation. In the past, most of jackets manufactured
are exported, company only focused on the domestic in the last three years.
However, the framework and analysis of external environment can be applied in developing
competitive strategy for other product categories or for company as a whole with certain
modification in area of analysis.
1.5. Limitation
The unavailability of information about sales volume of each product categories, timing of sales
of each product, and expenditure on activities such as advertising, promotion, administration
constrains deep analysis on the profitability of jacket category and on marketing mix activities.
Unavailability of current detail accounting information limits the understanding about cost
drivers (cost-causing items) thus limits the specific of recommendation on cost cutting

analyzed. Customer analysis and industry analysis including competitor analysis is discussed
extensively in this section as well.
Chapter 4. Internal analysis
Company organization, business performance, operation, manufacturing process, and other
related activities are analyzed to identify strength and weakness.
Chapter 5. Developing competitive strategies for Thaloga
Three competitive strategies are developed including cost leadership strategy, differentiation
strategy, and focus strategy and evaluated. Cost leadership strategy is recommended to the
company to compete in the future.
Chapter 6. Conclusion and recommendation
vii
2. CHAPTER 2
LITERATURE REVIEW
2.1. Competitive advantage
2.1.1. Definition
There is not many clear definitions of competitive advantage in textbooks of strategic
management.
Hill and Jones (1998) say a company has a competitive advantage when its profit rate is higher
than the average for its industry and it can sustain this advantage to maintain high profit rate
over a number of years.
This definition uses profit rate as a measurement to rate the competitive advantage. In other
view, we can say that a product has competitive advantage when it was chosen by a customer
after his or her comparing among several similar products. This definition is constructed in a
competition context. It can give us better idea about competitive advantage in a competitive
environment.
The heart of competitive advantage lies in the concept of value creation. The value of a product
to a consumer may be V, the price that company can charge under competitive pressure may be
P, and the cost of producing that product is C. the company profit is equal to P-C while the
consumer benefit equal to V-P. For two similar products with the same price P1=P2, product 1
has competitive advantage if V1>V2. In other words, product 1 has competitive advantage

product innovation is Sony for Walkman, Hewllet Packard for lazer printer. They are the
poineer company in each kind of product. When competitor immitate the product, Sony and HP
have extablished leader position in the market and strong customer loyalty which is hard for
competitors to attack.
- Customer responsiveness: to be viable, any company must find their customer and satisfy their
needs. The process of adjusting, tailoring product features to market will be crucial to company
competitiveness. Another aspect of customer responsiveness is customer respond-time, which is
the time require company to bring a product to customer hand. For manufacturing company,
customer responseveness is the time needed to fill an order, for a band, it is the time to process
the loan, and for a supermerket, it is the time customer have to wait in check out line.
Besides, the quality of aftersales service and support also affect customer satisfaction and
consequently company competitiveness.
2.2. Competitive strategy and competitive advantage
A strategy is a specific parttern of decisions and actions managers take to achieve the
organization’s goals. Any firm can consider three level of strategy: corporate strategy, business
or competitive strategy, and functional strategy.
2.2.1. Three level of strategy
* Corporate strategy: corporate strategy is primarily about the strtegic choice of direction for the
company as a whole. It raise three key issues facing the corporation: (1) the firm’s overall
strategy toward growth, stabality or retrenchment (directional strategy); (2) The industries or
market in which the firm competes through its products and business unit (portfolio strategy);
ix
and (3) The maner in which management coordinates activities and transfer resource and
cultivate capabilities among product lines and business units.
* Business strategy: Business strategy or competitive strategy refers to the plan of actions that
management adopt to use a company’s resource and its distintive ability to gain a competitive
advantage over its rivals in a market or industry. Porter (1985) proposed three generic
strategies company can pursuit to outperform its competitors in the market:
- Low cost strategy: strategy to design, produce and market a comparable product more
efficiently and thus cheaper than its competitors do. Cost leadership strategy aims at the mass

2.3.1. Mission and goals
The beginning point of strategic management process is to review and/or selecting new
organization’s mission and major goals. This statement will be the foundation for strategy
formulation and implementation in later steps.
x
The mission sets out the reason why the organization exist, whose benefit it serve and what it
should do. For example, the mission of an airline is to provide convenience and safety flight to
its customers.
Major goals are the targets that an organization wants to fulfil in long or medium term. Most
profit-seeking organizations place maximization of profit near the top of their goals. Other
possible goals are to get the largest share in the market that a company currently competes in
two years for example, or to get annual sale growth of 17% etc. Goals should be specific and
measurable within a time frame.
2.3.2. External analysis
Aaker (1995) presented a comprehensive framework for analysis external and internal
environment for an organization.
External analysis focuses on examination of relevant external elements to organization. The
object of this analysis is to identify threats and opportunities facing organization both present
and potential. An opportunity is a trend or event tat could lead to significant upward change in
sales and profit pattern- given appropriate response. A threat is a trend or event that will result
in the absence of strategic move, in a significant reduction in sales and profit figures. External
analysis including the following analysis:
* Customer analysis includes identifying the organization’s customer segments and each
customer’s motivations and unmet needs. Segment identification defines alternative product
markets and thus structure the strategic investment decision (what investment levels assigned to
each market segment). The analysis of customer motivation provides information needed to
decide whether the firm can and should attempt to gain or maintain sustainable competitive
advantage. An unmet needs- the need that currently not being met by existing products- can be
strategically important because it may represent a way that entrenched competitors can be
dislodged.

to be different but can satisfy the same needs as another product. Tea can be considered a
substitute for coffee. To the extend that switching cost are low, substitute product can have
strong effect on an industry. Substitute products can put a ceiling price that firm within the
industry can profitable charge.
- Bargaining power of buyers: Buyers in an industry can affect firm’s profitability through
their ability to force price down, bargain for higher quality or more services, and play
competitor against each other. A buyer or group of buyers is powerful if some of following
factors hold true:
• A buyer purchase a large proportion of seller’s product or service,
• A buyer has the potential to integrate backward by producing the product itself,
• Product is standard and there are plentiful of supplier,
• Buyer is sensitive to price and service difference, or
• The purchased product represents high percentage of buyer’s cost so it is worth to shop
around for a lower price.
- Bargaining power of suppliers: suppliers can affect industry through ability to raise price or
reduce the quality of goods or services purchased. A supplier or group of suppliers is powerful
if some of the following hold true:
• the supplier industry is dominated by a few companies but sell to many,
• Its product or service is unique or it has built up high switching cost,
• Substitute products are not readily available,
• Supplier can go forward and compete directly with current customers (like Intel company
can produce computers), or
• The purchasing industry buys only a small proportion of the supplier group’s goods and
services thus unimportant to the supplier.
xii
- Societal environment: the strategists must also be aware of societal factors that do not have
short-run impact in firm'’ performance but they usually influence firm's long run decision. Four
important categories of societal are:
• economic forces that regulate the exchange of material, money, energy and information
• technological forces that generate problem solving inventions

Strategy Cost leadership Differentiation Focus
Commonly
required
skills and
resources
Substantial capital
investment and access to
capital
Process engineering skills
Intensive supervision of
labor
Products designed for
ease in manufacture
Low cost distribution
system
Strong marketing abilities
Product engineering
Creative flair
Strong capability in basic
research
Corporate reputation for
quality or technological
leadership
Long tradition in the
industry or unique
combination of skills drawn
from other businesses
Strong cooperation from
channels
Combination of

strategic market
Source: Adapt from Porter, Michael E., 1980. Competitive Strategy: Techniques for Analyzing
Industries and Competitors. 1998 Ed. with new introduction, NewYork, The Free Press, pp. 40-
41.
Strategy evaluation: having developed alternative strategies, we need to evaluate their
suitability and feasibility. A strategy can be valued through three criteria dimensions:
- Criteria of suitability which attempt to measure how far the proposed strategy fit the
situation in strategic analysis. Does strategy capitalize on company’s strength, overcome its
weakness and counter environment threats?
- Criteria of feasibility that assess how a strategy might work in practice. For example,
whether strategy is achievable in resource term.
- Criteria of acceptability that assess whether the consequences of proceeding with a strategy
are acceptable. For example, will it be sufficiently generate profit or growth expected by
management or the risk involved in every strategy.
2.3.5. Strategy implementation
Having chosen a strategy, the next step is to put strategy into practice. Managers should choose
an appropriate organizational structure and control system to implement selected strategy.
xiv
Organizational structure defines role and responsibility of each manager and personnel within a
business unit as well as reporting relationships. If the old organizational structure is unfitted,
managers should develop a new one. The control system is designed to measure the
performance and control the actions of the sub-units. Measures like sales, market share, margin,
profit can be used to monitor and control performance. In addition, manager should also decide
when to review and revise strategy. This will be the feedback loop for the whole process of
strategic management.
xv
3. CHAPTER 3
EXTERNAL ENVIRONMENT ANALYSIS
3.1. Societal environment
3.1.1. Government and legal factors

this policy, the Vietnam Textile and Garment Corporation (VINATEX) was established in 1995
in textile and garment industry. The role and mission of VINATEX is discussed in Section 3.2.
The textile and garment industry is an important one in Vietnam economy. In 1998, this
industry scored the highest export turnover among exporting goods, about $1.35 billion, and
textile and garment products is always one of top three export goods (the others are crude oil
and rice). As a result, this industry will continue to receive high priority in development policy
of the government. During period of 2001-2005, the government plans to invest in the industry
VND 35,000 billion including VND 12,000 billion for VINATEX. By 2005, the target export
turnover of the industry is $4 billion and create two million jobs. Till 2010, the total soft loan
xvi
the government tend to release amount to VND 65,000 billion and the VAT tax for the industry
will be cut a half to 5% during this period (Vietnam Economics Times, 12/10/00).
On the other hand, Vietnam plans to enter WTO in 2004 and comply with AFTA requirements
in 2006. This will represent a critical challenge to textile and garment industry since its products
must compete directly with imported goods without government support in terms of tax and
non-tariff measures.
3.1.2. Economic factors
During the last decade, the Vietnam economy has been growing with the average growth rate of
7.76%. However, after several year of high growth rate in 1992-1997, in 1998, the are some
signals to show the economy was slowing down. In that year 1998, GDP grew only 6.1% (Table
3.1). Especially in 1999, due to the affect of Asia crisis, GDP grew only 4.7%. In 2000, the
economy overcame the hard time and show its grow trend again its GDP growth raise to 6.7%.
Table 3.1 GDP growth rate in 1992-2000 period
Year 1992 1993 1994 1995 1996 1997 1998 1999 2000
GDP (%) 8.65 8.07 8.84 9.54 9.34 8.8 6.1 4.7 6.7
Source: General Statistical Service, Statistical Year Book 1998, 1999 and other sources.
Although the economy has been growing, it has its own weakness. The quality and efficiency of
the economy is low, represented in high manufacturing cost and this cost is increasing.
Manufacturing cost in the economy as a whole account for 48% in 1996 and increased to 50.5%
in 1999 of total goods value. Of which, manufacturing cost for industrial goods increased from

living in rural area have lower income compared with people living in urban area. This income
gap leads to the differences in buying pattern, product requirement, and consuming style. Urban
people are more sophisticated when buying goods, they require new design, color, quality, and
brand-name. Rural people emphasize more on price and durability.
Vietnamese people used to prefer imported goods due to their high quality. Although imported
goods are more expensive, people are willing to pay the premium to choose the good products
in their perception. However in the past several years, domestic goods emerged as favorite
choice for local citizen thanks to their good and stable quality. Domestic manufacturers in many
industries like Vinamilk dairy products, Thien Long ball-point pens, Biti's footwear, Vinh Tien
notebooks, Casumina tires and tubes etc., has gained big market share and defeat imported
goods in the market. Local consumers are changing to buy domestic goods since they have
comparable quality with imported goods but at substantial lower price.
3.1.4. Climate and weather factors
The weather condition in Vietnam differ substantially between two regions North and South. In
the South, there are two seasons: dry and rainy with the average temperature ranging from 21
o
C
to 34
o
C in the whole year.
In the North, there are four distinctive seasons with the temperature conditions differ
significantly among four seasons. In summer, it is hot with the daily temperature varies between
25 to 37
o
C. But in winter, the cold weather with temperature ranging from 9 to 15
o
C during
winter monsoon (Northeastern seasonal wind flows). The temperature in winter is affected by
winter monsoon (wind flow) compliment with light rain. The weather changes to cold during
wind flows coming from the north blowing through the area that drive the temperature down.

and technology. About $200 million is being invested every year in new factory and/or
replacement of old equipment in existing factories. Ducgiang, Garment 10, and Viettien
companies are those invested most heavily in new equipment in 1997, in which Garment 10
invested VND 8 billion. New technology and equipment increase quality, productivity thus
allows companies to increase their product competitiveness.
Machinery in garment industry is diversified with automation and computerized equipment can
be applied to any stage of sewing process. There are many kinds of machine such as spreading,
drawing, cutting, sewing, embroidery, pocket welting machine etc. Machines used in garment
industry are mostly imported from Japan, Germany, and the United State.
3.2. Customer analysis
To collect data on customers’ requirement on jacket and their perception toward jackets made
by Thaloga, a survey was conducted during late December 2000 and early January 2001.
First, a pilot survey was conducted by interviewing 12 customers for deep understanding about
their requirement and their understanding about vague concept like product quality, color, and
design of the product.
Second, a questionnaire survey was conducted to collect data. A convenience sampling method
was applied. Questionnaire are delivered at Thaloga fashion shop 250 Minh Khai street, at 39
Ngo Quyen street where six garment company’s sales representative offices are around, and at
the new year fair at Giang Vo International Exhibition and Fair Center. Targeted respondents
are adults who can use and buy jackets. One hundred eighty questionnaires were delivered and
one hundred fifty two were returned. Of which one hundred thirty two are considered valid and
used for analysis. Questionnaire sample is included in Appendix 3.2.
3.2.1. Sample characteristics
The survey intended to identify adult customers’ requirement for jacket and their perception
toward Thaloga’s jackets. Therefore, all respondents in the sample are above 20 year old. Group
xix
age of 20-30 is dominant in the sample. They account for 75.8% of the sample. Respondents
within 30-40 represent second population in the sample with 19% (Appendix 3.3 Table 1).
Women represent the majority in the sample with 62% (Table 2). A third of respondents are
married. They can be important customers as they can purchase clothes for them and for other

3.2.3. Customers needs on the products
• Product itself: customers need following benefit from the product:
 It can bear light rain
 It must give sufficient warm level
 Customers prefer a jacket that they can use to go to various places and it can fit many
contexts. For example, they can use at work, going to picnics, funeral, or other
activities. Five layer jackets are least preferred. Two or three layer jackets are liked
more due to its tightness and convenience.
xx
 Jacket should fit the body form of customers
 For fabric materials, the respondents roughly agree that fabric material is of non-dust
catching type. To a lower degree, they want fabric material resistance to fire from
cigarette or match.
• Product color: Respondents agree that they like elegance and simple color. Jacket with
colorful color mix, too bright or heavy dark colors are considered unattractive in customer
perception (Item with score near 3 up can be considered unattractive).
• Design: again, simplicity in design for jackets is preferred. However, fashionable design
with few stylized features is also preferred with lower degree and opinion of respondent
upon the issue is more diverse than for simple design.
If there is a hat accompanied with the jacket, respondents agree that it can be flexible to
attach or unbind from the jacket (Table 11).
Among four dimensions of a jacket, price are the most important element that customers
consider in making their buying decisions (Table 12). 40% of respondents placed price in the
first priority. Quality is ranked second in important level after price that is followed by color
ranked third in the important ladder. Consider simple versus fashionable design, we can see that
simple design is more important. The implication of important levels is that it suggests a hint
for companies to compete in these important dimensions of jacket. If quality is relatively similar
among competitive products, and it is difficult and costly to significantly increase quality level,
we can choose to compete on price or product appearance (color, design). It is critical to note
that respondents’ opinion about the important level of four dimensions of jacket is not affected

different companies, it is revealed that Thaloga’s jackets has the most frequent use besides
imported goods (Table 19). Thaloga is the second most frequent bought and used by
respondents in the sample (43%) after imported jackets including Chinese jackets (49%). Two
companies follow Thaloga are Garment 10 and Nha Be companies with frequent use of 32%
and 20% respectively. The information in Table 19 does not indicate market share of each
company in the table, but we can understand that Thaloga might have a large market share of
jacket in domestic market, company can be the first or second position in market share in this
market.
On the other hand, of 132 valid respondents, 89 people know and give their assessment about
Thaloga’s jackets. The most positive point that respondents have about Thaloga’s jacket is good
quality and their assessment is most consensus among other issues of jacket (mean 2.31 and
standard deviation 0.82). For price issue, respondents score half point between agree and
neutral point for two question about price appropriateness and relative price level. This fact
shows that the price of company’s jacket is not more attractive than other companies.
Respondents’ perception about color and design variety is nearly neutral. Number of color and
design pattern is not more diversified than other companies. That means the company’s jackets
do not big competitive advantage over other companies’. In other words, little difference in
term of price or differentiation can be a threat to Thaloga’s jackets and its competitive
advantage.
3.3. Textile and garment industry analysis
3.3.1. Industry overview
The textile and garment industry (the industry) is heavily fragmented including about 600
enterprises engage in textile and garment business. Their main business or garment companies
are manufacturing for orders from foreign customer (FOB business) and subcontracting for
commission fee for foreign garment companies (CMP business). Only small percentage of total
revenue of this garment companies come from domestic sales.
The total employee in the industry is 800,000 labors. Of the 600 firms, there are about 130
state-owned enterprises of which the Vietnam National Textile and Garment Corporation
(VINATEX) is the largest state corporation. Half of total firms are belong to private sector
(Table 3.3). Foreign and joint-venture firms account for small percent in the industry, 88 firms

Import/Export ** 72 86.95 53
* Import of material and accessories for textile and garment
** Percent of import material to export turnover
Source: Vietnam Economics Times, Vietnam and World Economy 1998-1999
Note that 80% export turnover of garment industry is through commission business mainly with
Hong Kong, Taiwan, South Korea, and Japan. 50% of commission contract is export to Japan.
The remaining 50% of commissioning business is with Hong Kong, Taiwan, and South Korea
partners selling finished goods to EU market.
There are two market categories for Vietnam’s export garment: quota and non-quota market.
The quota market includes EU, Canada, And US. Non-quota markets are Japan, Taiwan, South
Korea, and Hong Kong. These two market categories share the same proportion (50%) of total
export value.
Despite Vietnamese garment products have appeared in many sophisticated markets, domestic
sales of local garment companies account for small proportion. Garment companies had not
xxiii
paid attention to domestic demand. There are about dozen large garment companies that serve
the domestic market. The proportion sales in domestic market account around 7,5-10% total
sales value of garment firms. Garment 10 has the highest domestic sales ratio of 17.1%.
Thaloga domestic sales account for 11% of company total’s revenue. This fact represents a
great potential for garment enterprise to capture domestic market share.
Although the industry has experienced growth in export turnover, there are some problems
inside. First, the textile sector does not grow as fast as garment sector, textile companies can
satisfy only 20-30% of fabric needs of garment sector. A large quantity of high quality fabric
and accessories are imported (300-400 million square meters per year). The export value in
some years is also given in table 3.5. Therefore in finished garment product for FOB and
commissioning business, local material amount to merely 10-15%. For many contracts,
customers supply all fabric and accessories, domestic companies only do the processing part. In
other words, high export turnover is accompanied with high import value of material and
accessories. In 1997, the textile and garment industry reported a increase 16% in revenue and
14% in manufacturing goods. There is not profitability data but an overview of export turnover

institute; one model and fashion research institute and three workers training schools.
VINATEX also establishes its branch offices in Haiphong and Danang and two trading service
companies in Hanoi and Ho Chi Minh City. VINATEX has trading relationship with more than
200 companies in 40 countries and regions. As an important organization in garment industry
whose one function is to help the State Government in orientation and development of local
textile and garment sectors VINATEX is an important force in the environment of the industry.
3.3.2. Industry attractiveness and competitor analysis
Vietnamese garment market is supplied by garment companies, household tailors, and imported
clothes. The household tailors account for 60% of the domestic market, according to a study by
SECO Sector Consulting (JICA, 1999). The remaining of the market is supplied by legal import
clothes (5%), illegal import primarily from China (15%), used clothes supplied through aid
program or smuggled through border of Cambodia or China (10%) and diversion of exports
product to domestic market (10%).
The household tailors gain some advantage over other companies in domestic market.
Vietnamese prefer tailor-made clothes because ready-made garment usually made with standard
size of foreigners to export so they are of large size. Tailor-made clothes can be built to fit
customer body and they can be customized. However, for a specific product like jacket,
household tailors can not compete in large scale because making jacket requires several
specialized equipment and large investment that very few single household can afford. Thus the
competitive forces in the market only comprises imported goods (legal or illegal) and domestic
firms producing jackets. The next section will apply the five-force model of Michael Porter to
analyze the competitive force in the industry.
• Threat of new entrant
Technology and equipment in garment industry is available and easy to assess. For a small to
medium firm employing from 60-150 workers, and 40-60 sewing machines, an initial
investment of VND600-1,000 million is needed to start a business. The recruitment of workers
is easy. For setting up a new business, such an investment is not difficult to get for an
organization, so money will not a big entry barrier for this business. The main entry barrier is
the established market for existing jackets from several big companies like Garment 10,
Ducgiang or Nhabe companies. These companies had set up strong customer bases thank to


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