Strategic Management: Case Study: Ho Chi Minh Securities Corporation

STRATEGIC MANAGEMENT
Case Study: HO CHI MINH SECURITIES CORPORATION
Submitted by:
R J Mahesh
B2484
Submitted to:
Dr. Sushil Kumar,
Assistant Professor
HO CHI MINH SECURITIES CORPORATION: SEEKING COMPETITIVE
ADVANTAGE IN VIETNAM’S EVOLVING FINANCIAL SECTOR
1. In 2008, what were the major factors that influenced HSC from the macro and industrial
environment? What are its implications for HSC?
Porters Five Force model can be used to analyze the competition faced by HSC as per the
case study. Porter’s five forces can provide a detailed analysis as to the nature of
competition and how HSC can cope with it. Porter’s five forces consists of:
 Bargaining power of suppliers- suppliers will take higher price from HSC if they
have high bargaining power.
 Threat of substitutes: a high level of substitutes in the market means that HSC has
to make continuous investments into R&D.
 Threat of new entrants: a high level of threat from new entrants means HSC should
reduce their current level of profits to reduce threats. There existed more than 100
companies competing in the developing financial market of Vietnam.
 Bargaining power of suppliers: high bargaining power of buyers drives towards
price reduction.
 Rivalry among existing players: high level of competition indicates difficulties for
companies like HSC to earn profits. Saigon Securities Incorporated (SSI), held
14.5% of the market. 28.1% of the market share were occupied by the top three
companies in the industry and 71.9% was occupied by other companies including
HSC.
PESTEL analysis is a framework used by marketers to analyze the macro
environmental factors which have an influence on the organization.
 Political factors:
1. The regulatory practices of the Government lead to upward push in the
ease to do business ranking.
2. Government is adhering to the WTO norms. There is consistency in
policy making and its implementation.
 Economic factors:
1. HSC can acquire skilled workforce at competitive salaries.
2. High rate of employment can have a dual impact on HSC in two ways.
Firstly, it will provide sufficient customers and secondly, it will make it
expensive for HSC to acquire talented workforce
3. The constant increase in the disposable income can help HSC to expand the
market
 Social factors:
1. Norms accepted in the society
1|Page
2. Composition of gender in the labour market
3. The attitude towards savings impact both consumption and quantity of
consumption
 Technological factors:
1. HSC should develop a business model by finding out the preferred mode of
mobile payment in the economy.
2. HSC should prepare to install 5G infrastructure.
3. Licensing of IPR and digital assets should be considered.
 Environmental factors:
1. HSC should be aware of the environmental groups and consumer activism
in the society.
2. Sufficient analysis has to be made with regard to its CSR activities.
3. HSC should be aware of the environmental standards.
 Legal factors:
1. The protection level that IPR provides under the laws of the country should
be analyzed.
2. HSC should be aware of the health and safety laws of the country.
3. Should adhere to the domestic and international law.
2. Critically analyze the resources, capabilities, core competency, and dynamic capabilities
of HSC. Determine if they help HSC to create a sustained competitive advantage?
VRIO analysis is undertaken to evaluate the company’s resources and thus, its competitive
advantage. VRIO stands for Value, Rareness, Imitability and Organization.
 Value: The board consists of people with diverse background. HSC is a local
company which makes it more valuable. HSC has also diversified and added more
value to its offering.
 Rare: The service offered by HSC is not much different from the ones offered by
its competitors. The ability of HSC to attract talented workforce has a reputation.
HSC has a special relationship with its customers.
 Imitability: It is easy for the competitors to imitate the products offered by HSC.
There is no IPR in place.
 Organization: HSC is one of a competent firm in the industry. HSC rise to 5th
position despite the increase in competition, HSC moved forward by issuing more
shares and rising its capital.
2|Page
3. Using the above two analyses, create a SWOT table for HSC. Based on the SWOT, what
are your recommendations for HSC in terms of achieving future growth?
SWOT analysis is a compilation of a company’s Strength, Weakness, Opportunities and

Threats. SWOT analysis of HSC are:
STRENGTHS WEAKNESS
- Strong financial position - Low ROI

- Intellectual property right - Poor inventory management
- Robust domestic market - Organizational culture
- High margins - Customer dissatisfaction
OPPORTUNITIES THREATS
- Developments in AI - US- China trade relations

- Penetration into international - Government regulation
market - Increase bargaining power of
- Acquiring global talents buyers
- E- commerce business model - Threat of new entrants
Recommendations to HSC for achieving future growth:

1. Refining the CSR activities
2. Geographical expansion
3. Adapting to more digital platform
4. Investments in R&D
3|Page

Strategic Management: Case Study: Ho Chi Minh Securities Corporation

Uploaded by

Copyright:

Available Formats

Strategic Management: Case Study: Ho Chi Minh Securities Corporation

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Strategic Management: Case Study: Ho Chi Minh Securities Corporation

Uploaded by

Copyright:

Available Formats

STRATEGIC MANAGEMENT

Case Study: HO CHI MINH SECURITIES CORPORATION

SWOT analysis is a compilation of a company’s Strength, Weakness, Opportunities and

- Strong financial position - Low ROI

- Developments in AI - US- China trade relations

Recommendations to HSC for achieving future growth:

You might also like