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Trung Nguyen Case Analysis

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To determine how good the current strategy is, three test can be applied. They are the fit test, the competitive advantage test and the performance test. At first, the thing that helps Trung Nguyen has a position in the coffee market is the special products with the main raw material is from Buon Ma Thuot, the largest coffee region in Vietnam. With numerous types of coffee, customers can have a large number of choices from the average to high price. As a result, Trung Nguyen can satisfy their customers in different jobs and income. Trung Nguyen has numerous kinds of coffee that can provide for a large number of different customers. With the wide range of development, Trung Nguyen has closely positioned in the coffee market. Therefore, it can …show more content…

The revenue from coffee is likely to be reduced in recent year. According to Trang (2015), Trung Nguyen’s chain stores are just enough to cover losses for each other. Their major task is to increase brand image for Trung Nguyen instead of earning profit. And, instant coffee grows slower than opponents. Vinacafe has growth twice when it belongs to Masan, in 2014, this group's revenue rose more than 30% compared to 2013 while Trung Nguyen rose 15%. The distribution system is not comparable to Vincafe and Nescafe: Trung Nguyen still uses traditional distribution networks, and high or low discount depends on dealer sales. Trung Nguyen has problems of managing the franchise system. They franchise too much, as a result, it cannot be guaranteed for the consistency and the synchronization. Moreover, the public relations is also weak. When Trung Nguyen first attends the market, there are a lot of newspapers writing about Trung Nguyen with many positive images. In contrast, now, the concern of press for Trung Nguyen is getting faded. From the analysis, it is easy to identify that the current strategy of Trung Nguyen is not good enough in comparison with its

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