VIETNAM NATIONAL UNIVERSITY – HO CHI MINH CITY

INTERNATIONAL UNIVERSITY

SCHOOL OF BUSINESS

UNVEILING SUCCESS: THE STRATEGIC BUSINESS PLAN

OF CENTRAL RETAIL VIETNAM

In Partial Fulfillment of the Requirements of

GROUP PROJECT

in the Course of STRATEGY FORMULATION AND IMPLEMENTATION

(BA162IU)

Lecturer/Instructor: Ph.D. NGUYEN NGOC DUY PHUONG

GROUP FOUR

Student Name Student ID

TRAN VAN DINH KHANG BABAIU19037

PHAM MINH ANH BABAIU20433

TRAN HONG AI VAN BABAIU20402

MAI HA HOANG YEN BABAIU20623

Ho Chi Minh City, Vietnam

2024
CHAPTER 1: INTRODUCTION.

1.1 Company Background.

Central Retail Corporation (CRC) is Thailand's leading retailer and the most crucial
commercial subsidiary of the Central Group. In 2011, it established Central Retail Vietnam, with a
mission of broadening its storefronts and real estate businesses and a vision of advancing
Vietnamese society's wealth and standard of living. Its four main business segments are culinary,
wearables, electronic appliances, and real estate/retail centers. This was executed through Big C, the
supermarket chain whose supreme shareholder is Casino Group with more than 60% stocks. In
2016, CRC transacted Casino $1.14 billion, helping it pay its debt and simultaneously acquiring
100% shares of Big C Vietnam. Through 5 years, Central Retail has initiated its journey of brand
repositioning by establishing original labels, shopping center models, and developing omnichannel.

Eventually, on the 1st of March 2021, after 22 years of existence in Vietnam, parent firm
Central Group withdrew the Big C trademark. Subsequently, 7 Big C shops located in buildings
were rebranded Tops Market, while 5 Big C supermarkets changed their name entirely to GO!
According to the latest report in 2023, Central Retail Thailand is investing $1.45 billion in the
Vietnamese rebranding series, paving the way for a strenuous but promising path over the following
four years

1.2 Vision, Mission, and Core Value.

1.2.1 Vision.

“ We commit to contribute to Vietnam’s prosperity and to enhance the quality of life of the people.”

Upon entering the Vietnamese retail sector, Central Retail Group promptly established a
visionary commitment “To contribute to Vietnam’s prosperity and to elevate the quality of life for
its people.”Annually, the group orchestrates more than 50 weeks dedicated to showcasing local
agricultural products and specialties, spanning the nation in its effort to bolster the distribution and
consumption of domestically grown items, especially among small and medium enterprises. This
undertaking involves championing distinctive regional fruits like Hoa Loc sand mango, Cai Lay
durian, and Cho Gao dragon fruit, along with renowned Mekong Delta offerings such as custard
apple, mangosteen, longan, coconut,… These initiatives not only boost purchasing power but also
broaden the global reach of Vietnamese fruits. In addition to hosting agricultural product weeks
across various provinces of Vietnam

Apart from elevating the visibility of Vietnamese agriculture products, particularly fruits,
Central Retail Vietnam is committed to enhancing the well–being of the Vietnamese people. Across
its nationwide network of supermarkets and hypermarkets, the group consistently presents
customers with an extensive array of goods, services, and price points. The product offerings remain
continuously refreshed and diverse, with the group actively seeking collaborations with new brands
to maximize customer choices.

1.2.2 Mission

“ We make customers’ lives easier thanks to our empowered & passionate people who collaborate
and interact well in a start-up mentality.”

Stepping into the Vietnamese market, the core mission of the Central Retail Group is to
“Make customers’ lives easier thanks to the empowered and passionate employees, who collaborate
and interact well in a start–up mentality”. To align with the digital era evolution and elevate the
shopping experience for customers, the group has expanded its strategies to encompass online
platforms such as websites and apps. This strategic move not only facilitates access to a bigger
number of customers but also nurtures loyalty among existing patrons. The company’s online retail
frameworks contribute to an enriched, swift, and hassle–free shopping journey for customers. The
group’s workforce undergoes comprehensive training primarily focusing on placing customers at
the forefront. Each employee is instilled with an enterprising and entrepreneurial outlook. They are
encouraged to empathize with customers and provide optimal assistance. Moreover, the staff are
consistently motivated to refresh their perspectives and enthusiasm, fostering the generation of
innovative ideas that captivate customers' interest and elevate the company’s position.

1.2.3 Core Value.

The company’s fundamental principles are encapsulated within the acronym “ICARE”, with each
letter signifying a distinct value:

● I – Innovation: Open to the widest possibilities for better quality and greater efficiency.

● C – Customers: Think like customers. Delight them always.

● A – Alliance: Value diversity and inclusive team spirit for the benefit of the group.

● R – Relationship: Engage employees, partners, and society for a sustainable future.

● E – Ethics: Maintain honesty and integrity in all aspects of the company

As can be seen, the company’s core values revolve around prioritizing both its customers and
employees. Beyond merely understanding customers’ perspectives to provide top–notch shopping
experiences, the company ensures customer contentment through its dedicated and enthusiastic
staff. Aligned with the vision of contributing to Vietnam's prosperity, cultivating a workforce is the
plan's cornerstone. Central Retail Vietnam always motivates employees to widen their safe zone,
continuously growing, which extends individual growth, collaborative work, unifying teams, and
nurturing close relationships among employees. In addition, ethics is the priority in every business
facet of the company. By that element, Central Retail achieved both customers’ trust and
employees’ satisfaction.

CHAPTER 2: ANALYZING THE INTERNAL AND EXTERNAL ENVIRONMENT OF

CENTRAL RETAIL VIETNAM.

2.1 External factor evaluation.

2.1.1 The macro-environment ( PESTEL analysis).

2.1.1.1 Political factors.

Vietnamese governmental circumstances are utterly stable without any threat of war or
terrorist attack. Moreover, its socialist republic legislative system enables the authority to control
the price tag and inflation growth tensely.

Regarding the retail industry, frames of law exist in only some official and scattered inscribed
text. Subsequently, they showed neither effectiveness nor optimization in a multi-aspect look.
Efforts have been taken via reviewing and adjusting the Commercial Law, whose sections include
retail distribution as well as other relevant policies. In general, the law implies favors for FDI firms
and imported products/services, which somewhat encourages Central Retail’s business.

Policies for cutting enterprise tax during the 2020-2022 era were issued in response to the
economic recovery trend; notwithstanding its shortcomings and restrictions, the taxation reduction
is necessary and will not be revisited soon. Everything provides a favorable atmosphere for Central
Retail and its rivals.

2.1.1.2 Economic Factors.

In the latest reports, the global retail business is becoming vivid as countries reopen their
economies. Vietnam's economy has recovered fiercely through drastic, practical policies and
solutions, positively impacting the recovery and expansion of the domestic retail market. After three
years of stillness due to the COVID-19 pandemic, the domestic retail market has exhibited positive
signs indicated by the following points:

- Retail sales have grown substantially. Most retail businesses are optimistic about the
domestic retail market's potential for expansion.
 - State management agencies, communities, and businesses carry out continuing advertising
and promotional activities to gain trade, while measures to ensure safety and epidemic
prevention in new scenarios.

- Retail firms utilize the 4.0 Industrial Revolution, AI, digital transformation, and eBanking...
in their corporate structure and administration to boost investment in facilities and human
resources. Simultaneously share and safeguard information with partners and customers.

- Business models are rapidly modernized and diversified (minimart /convenience store,
supermarket, and megamall). Most dominant is the convenience store concept originating in
non-urban areas owing to the benefits of product characteristics (mainly everyday products),
small shop space size, and flexibility in site selection.

- On the verge of positive results, the domestic retail market still has certain constraints and
challenges, such as:
+ There are still illegal imported goods, counterfeit goods, and non-quality goods
sold in some shopping centers and supermarket chains of large retail businesses.
+ Retail activities in rural, mountainous, and distant areas run by small enterprises
and home businesses, presenting managerial issues.
+ The link between merchants and producers (especially for agricultural products) is
currently ineffective, failing to display the role of connecting commodities with buyers.

In most circumstances, the Vietnamese economy is stable, providing opportunities for retail
businesses to thrive and evolve via innovation and commercial expansion. Central Retail, at its most
critical period of rebranding and renewal, has a great opportunity to establish new values in this
favorable context.

2.1.1.3 Social Factors.

TikTok, Facebook, YouTube, and other social media platforms have had the largest influence
on Vietnamese people's social lives. People are more prone to being affected by the words and
actions of their idols, streamers, or KOLs. Followers are the "intangible money" that equates to
reputation and influence. They will consume the same meals, take the same services, and dress
similarly to their KOLs. As a result, new advertising strategies, such as live streaming, have become
popular to utilize these buying patterns.

Furthermore, technological gadgets are becoming increasingly important in modern life. Key
transitioning services are no longer banks, but e-wallets, as a consequence of innovation that
includes service provider modernization, smartphone popularity, and payment method innovation all
at once. As a result, e-commerce and online purchasing are the current dominant trends, which is
partially solved through Central Retail's new Go! and TopsMarket online departure.

Finally, during the trend of modernizing and diversifying retail patterns, convenience shops,
and minimarkets emerged as the most significant ones. This has been attributed to the benefits of
product quality, small shop space size, and location selection versatility. Topsmaker and Lanchi
have so far provided the most reasonable replies for Central Retail but still prove being lack of
competitiveness compared with Bachhoaxanh, Ministop, Circle K, and Family Mart.

2.1.1.4 Technological Factors.

Following the COVID-19 event, individuals have become accustomed to remote and flexible
employment, as well as remote/online services. More precisely, non-face-to-face experience has
been identified as a key value in the battle for services. Japan, China, and Korea are now leading
this trend, having made significant investments in AI, robotics, and automation technologies in
recent years.

Although artificial intelligence and robotics are too advanced science for the Vietnamese retail
business, e-commerce is no longer a foreign notion, thanks to the rise of technology-based logistics
firms such as Grab, Shoppee, Lazada, and others. Because automated, robotic, and AI-related
services and commodities were not sustainable during Vietnam's current boom phase, the trend
continues with e-commerce and its associated features, including omnichannel and online shopping.
Central Retail, on the other hand, demonstrated weakness and lack of competitiveness through its
poor reputation in technology-based or logistical fields. In reality, Central Retail did collaborate
with Grab, Now, Baemin through its newly built model name hypermarket. It also developed
original software, "Go! and BigC" with employers for its shipping business, which has a low and
disappointing rating owing to poor customer support and a sluggish interface.

In conclusion, contemporary technological improvements are detrimental to Central Retail's

general business. Nonetheless, it has a unique history as a pioneering retail conglomerate for
supermalls and other infrastructure, providing a solid foundation for its current omnichannel
development. Long-term, automation and robot technology are worthwhile investments.

2.1.1.5 Environment Factors.

In the context of The macro-environment and PESTEL analysis, the Environmental factor
plays a decisive role in the retail market in Vietnam. Climate change and increasing environmental
conservation efforts can exert significant pressure on retail businesses, requiring them to adjust their
production and operational strategies to comply with new standards and regulations. Environmental
legislation also plays a crucial role, potentially introducing new requirements for product
management and waste disposal.

The community's awareness of environmental issues is growing, and environmentally-friendly

brands can benefit from the trust and support of customers, as seen in examples like Vinamilk,
Unilever Vietnam, and others. Managing natural resources such as water and energy becomes a
strategic factor, especially in the context of potentially limited resources. These brands not only set
business goals but also aim to make positive contributions to environmental and social protection.

Additionally, biodiversity conservation and sustainable management can become significant

resources in helping retail businesses build a reputable image and create attractive products. In
summary, the Environmental factor not only influences how retail businesses operate but also opens
up new opportunities for developing adaptive and sustainable business strategies in the Vietnamese
market.

2.1.1.6 Legal Factors.

"Legal Factors play a crucial role in influencing the retail market in Vietnam, including
Central Retail. It has a broad impact across all business sectors within a geographical region;
regulatory factors and laws can affect the viability and development of any industry. When
operating within an administrative unit, businesses are compelled to adhere to the regulatory
framework of that area.

Policies on export and import taxes, consumption taxes, income taxes, etc., can impact the
revenue and profitability of businesses. Changes in taxes can influence prices and profits for retail
enterprises. According to representatives from FPT Retail Joint Stock Company (FPT Retail, stock
code FRT), reducing VAT could help lower the cost of products and services, contributing to
inflation control and assisting businesses in reducing input costs, thereby overcoming the current
challenging period and quickly recovering business activities.

Government policies can either generate profits or pose challenges for businesses. These can
include trade policies, industry development policies, economic development policies, taxes,
competition regulatory policies, and consumer protection policies.

Consumer protection is a crucial area that requires businesses to provide comprehensive and
accurate information about products, ensuring quality and safety. Non-compliance with these
regulations can lead to legal consequences and damage to reputation. Relevant laws in this context
include investment law, business law, labor law, anti-monopoly law, and anti-dumping law.

Finally, regulations related to businesses and commerce, such as business registration,

business licenses, and organizational forms, can impact the operational processes and development
of retail businesses. Compliance with legal regulations is key to maintaining stable and lawful
business operations in the Vietnamese business environment.

2.1.2 The microenvironment ( FIVE FORCE analysis).

2.1.2.1 Bargaining power of buyers.

In the Vietnamese retail landscape, the influence of the bargaining power of buyers is pivotal,
evident through the extensive range of options, easy access to online information, and the insistence
on competitive pricing. Vietnam's retail sector is marked by diversity and competitiveness, housing
both prominent and emerging businesses and brands. As customers enjoy a multitude of choices,
their ability to negotiate strengthens. Increasingly, customers prioritize product and service quality,
emphasizing the significant role of convenience and shopping experiences. Price considerations,
along with insights from fellow consumers on online platforms like Shopee, Lazada, and
Bachhoaxanh, contribute to their decision-making process. Consequently, safeguarding reputation
becomes crucial for retail establishments to ensure sustained customer satisfaction and loyalty. In
navigating this landscape, retail enterprises must acknowledge and adapt to this trend, aiming to
retain and attract customers by elevating quality and value to effectively address the growing
negotiating power of customers within this competitive environment.

2.1.2.2 Bargaining Power of Suppliers

The bargaining power of suppliers plays a significant role in the retail market structure in
Vietnam. The diversity in this market reflects not only intense competition but also substantial
influence from the control of high-quality resources by key suppliers. Maintaining stable and
reliable relationships with suppliers becomes a decisive factor for the smooth operation of
businesses. In cases where there are limited supplier options or when crucial suppliers maintain
control over high-quality resources, they may increase prices or impose stringent transaction
conditions. Moreover, if suppliers raise prices or alter transaction conditions, retail businesses may
struggle to maintain competitive prices and profitability. Furthermore, the quality and performance
of products depend on the negotiation abilities of suppliers, directly affecting customer satisfaction
and the reputation of the business. International business conditions, as exemplified by companies
like Apple, Nike, Toyota, etc., can significantly impact the profitability and products that retail
businesses can offer.
In summary, the negotiating power of suppliers is not only a crucial factor for retail businesses
in Vietnam but also creates opportunities to develop strategic relationships, playing a vital role in
the success and sustainability of this market.

2.1.2.3 Threat of New Entrants

 The threat of new entrants in the retail sector can be considered remarkably high. The
Vietnamese retail market acknowledges developed areas with two major cities which are Ho Chi
Minh City and Ha Noi City. These urban locations not only have high GDP but also present
regionally competitive retail rents that make Vietnam the promised land for retail brands to widen
their appearances. In addition, the Vietnamese government applied a lot of resolutions to support the
retail sector and open up opportunities for newcomers. The arrival of many foreign retail companies
such as AEON of Japan, Lotte and Emart of Korea, and Cresent Mall of Taiwan makes the domestic
retail market increasingly bustling. These names have large capital sources and systematic strategies
with the goal of capturing as much market share as possible in the Vietnamese retail industry.
Besides, Vietnamese domestic retail names such as Vinmart, Satra, and Co.op Mart... also learn
from the trends of international retailers to innovate and maintain their position in the country.
Another factor that makes the rate of new entrants threat increase is the appearance of online
retailers, small brands are now easily launching stores via online platforms such as Shopee, Lazada,
and TikTok Shop. In general, the retail sector of Vietnam increasingly gets high interest from either
foreign or domestic brands, which makes the existing names have to be continuously renewed and
developed to occupy more market share.

2.1.2.4 Threat of Substitutes

The threat of substitutes in the retail sector can be considered from medium to high. As GO!
the supermarket of Central Retail Corporation in particular and other similar chains in general focus
on the mid-range customer segment. They all have a variety of products, ranging from food, and
fashion to household goods at affordable prices, suitable for most customers in Vietnam. Besides,
the development of online shopping trends is also a factor that increases the threat of substitute
products because it creates new choices that are more attractive to consumers. Technology makes it
more convenient for people to buy things fast and compare the products from various preferences,
prices, and sources, leading to the existence of substitutes. In addition, maintaining customer loyalty
is also a challenge for brands in the retail industry because of their tendency to like new
experiences. Customers can easily switch from one brand to another for more interesting products.
It is necessary for retail firms to enhance their price strategy, brand loyalty, quality control strategy,
and adaptable ability to the changing market to provide customers’ offerings accordingly.

2.1.2.5 Competitive Rivalry

The competitive rivalry in the retail sector in Vietnam is relatively high. According to the
published report of Mordor Intelligence, the Vietnamese domestic retail market is predicted to
significantly rise to more than 200 billion USD in 2024 and foreign retail firms will maintain their
leading position such as Central Retail (Thailand), Aeon (Japan), Lotte and Emart (Korea).
However, domestic retail names are highlighting their appearance by differentiating their products
and services. The market is fragmented, and different retail brands each have their own market share
in various customer segments and different regions. It is evident that no enterprise dominates a large
market share in the retail market of Vietnam. The market is expected to grow at a fast pace in the
next few years and the development of e-commerce will form a new behavior in the shopping habits
of people.

2.2 Internal Factor Evaluation

2.2.1 Human Resource

Central Retail Vietnam has a significant labor force of 15,000 employees including the back
office division and supermarket division. The core value of Central Retail Vietnam is I-CARE with
the letter “E” representing employees, the company ensures an enthusiastic, conscious, empowered,
and passionate labor team that is always disposable to bring goodness to customers.

To foster young talent leader resources for the future, the “Vietnam Management Associate”
program was organized in 2018 to focus on human capacity building and development. Central
Retail Vietnam aims to train young people in their third or fourth year of university, or young
employees within the company for 2 years. They will be provided with exposure to different
business departments and functions to stimulate their acumen and thinking. Participants in this
program are carefully screened through 5 rounds of interviews and tests and are trained with
designated materials by the Group's Learning & Development team. After completing the training
program, participants have the opportunity to officially work for the company in high-level
positions such as team leader or manager. According to the company's report, more than 20 of the
group's executives have been selected through this program.

Besides internal training for employees, Central Retail Vietnam has critical concerns for the
working environment of its labor. Employees within the firm are always encouraged to pursue their
dedicated functions in their department or different aspects of the company and speak out their
voices. In this way, the company can have a cross-functional skilled employee team as well as gain
the loyalty and commitment of the employees, making each person's work more productive and
proficient. Central Retail Vietnam’s management board provides their support for the labor force
through a quarterly meet and greet with departments to understand their demands and fulfill them. It
presents the meaning that every employee is a crucial factor in the success of the company.

In addition, employee benefits are also highly valued with the competitive salary based on
different positions, accompanied by other bonuses and insurance. Employees in the company have a
clear career path with support from the line manager. Moreover, Central Retail Vietnam shows care
for each employee’s family with programs such as “Central Retail Care” for employees in difficult
circumstances, or “Central Retail Scholarship” for high-achievement children of employees.

Through its efforts to build a comprehensive and cohesive workforce as well as create a
friendly and safe working environment, Central Retail Vietnam has received two major awards
voted by HR Asia which are "Best Workplace in Asia 2023" and "Diversity, Equity & Inclusion".
Receiving these two awards marks the Group's dedication to building and developing a high-quality,
dynamic, and creative labor force, as well as demonstrating the trust of the employees in the
company.

2.2.2 Marketing Activities

In pursuit of predetermined business objectives, Central Retail Vietnam prioritizes not only
the quality of pivotal products delivered to its customers but also dedicates considerable effort to
strategic promotional campaigns aimed at enhancing the corporate brand portfolio. These
communicative endeavors help increase the current popularity of the retail group's brands,
encouraging the significant purchasing power of Vietnamese consumers toward Central Retail
Vietnam's product lines. Particularly in the context of the group's initiative to re-position its brands
from Big C to GO! and Tops Market, within the framework of a sustainable branding strategy.

Central Retail Vietnam always offers discount

programs and promotional campaigns for
customers when experiencing at Big C
supermarket or GO! hypermarket to stimulate
consumer engagement, boost sales, and foster
brand loyalty. To celebrate National Day on
September 2 this year, GO!, Big C hypermarket
systems nationwide launched the promotion
program "Proud of Vietnam ", discounting up to 50% of all products.

Furthermore, Central Retail Vietnam allocates resources towards the strategic communication
initiatives of Nguyen Kim. The conspicuous presence of the Nguyen Kim brand is systematically
created through prime-time television slots and prominent placements in advertising on pivotal
street corners. The establishment of the NguyenKim FanPage on the online platform
(nguyenkim.com) attracted significant traction, amassing over 1 million likes and followers,
precipitating a substantial volume of interactions. Articles disseminating information about
promotional programs and product advertisements on the platform have been received with
enthusiasm, exerting a discernible influence on the purchasing behavior of Vietnamese consumers.

Finally, Central Retail commits to going alongside Vietnamese brands, helping “Vietnamese
using Vietnamese brands” while supporting Vietnamese enterprises to expand the market, and
looking for opportunities to bring Vietnamese products to the international market. The
“Vietnamese Week in Thailand” and “Made in Vietnam” in Vietnam are two critical events of
Central Retail, which not only help stabilize the market but also promote Vietnamese products to
customers overseas. ​The event “Made in Vietnam” is an opportunity for Vietnamese people to enjoy
items previously only for export.

2.2.3 Activities and Contribution to Society

Central Retail Vietnam commits to not only offering exceptional shopping experiences but
also actively contributing to the community through a myriad of diverse social activities. This
approach is designed to enhance the quality of life for Vietnamese and the broader community.
Central Retail Vietnam regularly organizes charity programs and collaborates with local
organizations to make a meaningful and enduring impact on the lives of those facing adversity.

● Education:

Central Retail Vietnam consistently emphasizes the advancement of Vietnamese education,

the company diligently endeavors to contribute significantly to the enhancement of comprehensive
education, as well as create more opportunities for children, particularly in remote areas through
scholarship programs or infrastructure improvement initiatives.

In the annual corporate social responsibility activities under the "Giving Love and Building
Connection" program initiated by Nguyen Kim- an eminent brand under the management of Central
Retail Vietnam. The primary objective is to support local schools contending with the challenges of
establishing Information Technology departments. Since 2020, Nguyen Kim has successfully built 5
computer rooms, equipped with 190 laptops in elementary schools, middle schools, and high
schools throughout Vietnam's provinces. In 2023, Nguyen Kim contributed 40 HP laptops with a
total value of 600,000,000 VND to 5 primary and secondary schools in Dak Lak, An Giang, Binh
Thuan, and Thanh Hoa. These schools are located in difficult areas and need more teaching facilities
and essential information technology equipment and supplies. As a result, Nguyen Kim also
provides 1,200 students at the school with the necessary tools and materials to enhance their overall
educational experiences.

Additionally, GO! Hypermarket, known as the brand of Central Retail Vietnam, also
participates in social activities with the series of events “Together with GO!, Joining Hands to
Share” to spread happiness to advantaged children and the local community. GO! Hypermarket
welcomed more than 150 orphans and disabled children to visit GO! Store participated in fun-filled
games, and ẹnjoyed the delicious meals prepared by chefs. At the events, these children also receive
special gifts filled with sweet treats, milk, or school supplies.

● Environment:

Besides the contribution to the Vietnamese education system, Central Retail Vietnam creates
an environmental protection program to enhance the awareness of humans, reduce the negative
impacts on the environment, reduce waste, and save energy and water.

Central Retail Vietnam organized “Bring Your Shopping Bag” at 10 Tops Market stores in
four centered cities to reduce plastic bag use. Additionally, in 2022, Tops Market also held “No
Plastic Bag Day”, the objective is to promote environmental protection awareness and inspire the
positive habits of customers when shopping at the retail stores.

In particular, the collaboration between Central Retail Vietnam and other retail corporations
creates a united front dedicated to environmental protection. On the occasion of Earth Day 2023,
P&G Vietnam and Central Retail Vietnam organized the “Forest For Good” program, this initiative
aims to promote the awareness of customers in protecting the environment as well as the earth.
Furthermore, Central Retail Vietnam also cooperated with Unilever Vietnam in the project “Plastic
Waste Segregation at Source”. This initiative marks a crucial step in the environment and
community effort. This cooperation witnessed a commitment towards the objective of promoting
effective classification, collection, and recycling of plastic waste to reduce environmental pressure.

2.3 SWOT analysis

2.3.1 Strength

Strength 1: Low prices are suitable for the average income of Vietnamese people.

Coming to Central Retail Vietnam's supermarket chain, Go! or Big C supermarket,

customers experience diverse products, GO! and Big C always provide the best price policy for
consumers, accompanied by strictly controlled product quality and conveniently modern
distribution services. Central Retail Vietnam carries out price campaigns for products at
supermarket chains daily, weekly, or monthly to bring reasonable prices to their loyal customers.
The average price of more than 7,000 Big C products is about 10.2% cheaper than other retailers. In
2019, Big C launched the "Always Low Prices" program, which applied to essential items in the
nationwide supermarket system, including fresh foods, bread, milk, spices, and other products.
Some customers agree that some items used in this campaign have lower prices than other
supermarkets and they save a significant amount of money.
Strength 2: A large source of investment capital and interest from investors.

Central Retail Vietnam is one of the highest market share-holding retail companies, with
about 62 % in the supermarket chain. In 2021, Central Group, the parent company of Central Retail
Vietnam, invested approximately 6.6 billion Baht (estimated at 211 million USD) in the expansion
plan of 4 shopping malls and GO! supermarket. In the 2023- 2027 period, with the 5-year
objectives, Central Group continuously invests about 50 billion Baht ( estimated at 1.4 billion USD)
in Vietnamese supermarket and hypermarket chains like Big C and GO! By the end of 2022, Central
Retail Vietnam was reported to be one of the retail enterprises in Vietnam with the highest foreign
capital ownership.

Strength 3: Wide distribution.

Central Retail Vietnam currently has a network of 300 retail outlets and 39 shopping malls
in 40 provinces and cities throughout Vietnam, totaling more than 1.2 million square meters.
Outstanding the Japanese retailing behemoth AEON, which operates only seven retail complexes in
Ho Chi Minh City, Ha Noi, Hai Phong City, and Binh Duong New City, and appears to be losing
ground to Central Retail Vietnam.

Strength 4: Strong presence and standardizing customer service.

After 22 years, Topmarkets, formerly BigC Vietnam, has prolonged a healthy connection
between them and customers. They had successfully set standards among common and
distinguished services, such as product service, gallery goods, promotions, installment purchase,
handy trolley, atmosphere in the supermarket, payment service, customer retention services, service
of packing goods, gift wrapping service, and door-to-door delivery service which is especially
handy during the pandemic. All of them combined and became unique and familiar values of the
company to consumers. Furthermore, the idea was convincingly supported by Central Retail
Vietnam’s having its third consecutive championship title in the competition of the top ten
prestigious enterprises in the food-beverage-retail-packaging industry on October 26th, 2023.

Strength 5: Central Retail Vietnam enhances the global presence of Vietnamese product
brands.

Central Retail contributes remarkably to the OCOP (One Commune One Product) campaign,
which, in terms of exporting, enriches foreign awareness of Vietnamese existing strength in
agricultural sectors, specifically tea, coffee, seafood, and regional specialties that come from the
Mekong Delta.
Strength 6: Retail products’ variety and exclusiveness.

In terms of importing, and adding to existing familiar brands, Central Retail offers a peculiar
selection coming from My Choice, Waitrose, Tops, Absolute Organic, and others, as well as
exclusive local products such as Trà Xanh Hùng Thái, Trà Cung Đình Huế Dương Gia Phát, Hạt
điều rang củi Hải Bình, and more.

2.3.2 Weakness

Weakness 1: Unattractive store environment and unsatisfied customer service.

Currently, the Central Retail Group's GO! supermarket chains feature branches with outdated
designs, outmoded facilities, and restricted areas, contributing to a congested environment for
consumers.
Additionally, the quiet ambiance and minimal background music significantly decrease the
overall shopping experience at these supermarkets. Compared to its competitor, Emart adopts a
more contemporary and vibrant approach in its store designs, incorporating themed layouts and
lively music. This vivid atmosphere at Emart draws abundant daily visitors, resulting in an active
retail environment.
Furthermore, the customer service at GO! has been a notable concern. Numerous customers
have expressed dissatisfaction with disrespectful attitudes from the staff, as evidenced by
complaints on review channels, negatively impacting the supermarket's reputation.

Weakness 2: Product quality is unstable.

As a renowned supermarket brand, GO! continues to receive criticism for uncertain product
quality and the lack of origin labeling, which leads to customer dissatisfaction. The issue has been
detailed in the food industry with low-quality chicken and in the consumer goods industry with
unoriginal bedsheets. Although the problem has been rectified and ceases to occur, it still indicates
scarcity in thorough scrutiny in the inspection stage before introducing products to supermarkets,
allowing low-quality items to enter the retail market. This vulnerability diminishes customer
satisfaction during the shopping experience and erodes trust in the product quality offered by GO
supermarket!

Weakness 3: The traditional model makes Central Retail's supermarket chain weaker than
other industry retail chains in attracting potential customers.

Central Retail is hesitant to adjust to the changing dynamics of the modern retail sector. The
supermarket brands under the group have yet to showcase their proficiency in social media
engagement, presenting a drawback in attracting new customers and fostering ongoing
relationships. Furthermore, supermarkets' distribution capacities to reach a broader client base have
been hindered due to the limited availability of online purchasing platforms.

Weakness 4: Customers' unfamiliarity with the rebranding series (Go!, Lanchi Mart, and
Tops Market).

Despite efforts to promote the brand renewal event, Central Retail's BigC, after two decades
of operation, continues to perplex customers with its new look. Customers are exasperated to accept
and adjust to a new brand since they linger to the previous one and have a positive image of it. This
results in customers switching to competitors, leading to customer loss and reduced traffic.
Simultaneously, BigC's choice of rebranding raises questions about its service qualities.

Weakness 5: Unpopularity in the digital market.

Go! is currently nowhere near being popular in the digital market, especially on online sales
websites. The odds of encountering its ads on social media platforms are low, resulting in
customers’ lack of awareness of Go!'s online presence and sales applications and the firm’ missing
out on tremendous business opportunities. Assumingly, GO!'s preferred rates when purchasing
online or delivering presents to devoted consumers contribute to its objective lack of dedicated
digital engagement, which inadvertently results in GO! losing a valuable avenue for customer
interaction and developing customer connections.

2.3.3 Opportunity

Opportunity 1: COVID-19 familiarizes customers with the online order delivery system for
the F&B industry.

After COVID-19, there was a strong shift in the retail industries from direct to online
platforms, here are some notes that can be interpreted from the statistics from 2017 to 2022 and
later:

● Currently, in 2022, 15% of SEA's online market share is trafficked by Vietnam. Moreover,
among one of the fastest-growing internet economies within the SEA region, Vietnam's
e-commerce market value was forecast to reach 39 billion U.S. dollars by 2025, ranking
second only after Indonesia.

● Before the COVID-19 outbreak, the majority of Vietnamese internet users' e-commerce
expenditure was on online travel, mobility, and hotel services. Consumer products have
surpassed pharmaceuticals as the most expensive e-commerce category in recent years. As a
result of the pandemic and previous restrictions on physical retail establishments, an
 increasing number of Vietnamese individuals have become accustomed to purchasing these
things online.

● In 2022, the food sector had the biggest e-commerce spending growth in Vietnam, at 18.9
percent. In contrast, e-commerce spending on furniture fell by more than 6%. Because of the
COVID-19 pandemic and related limitations, more people in the country are turning to
internet outlets for necessary supplies.

● From 2017 to 2021, overall retail sales of food and beverage e-commerce in Vietnam
expanded considerably. In 2021, the country's food and beverage e-commerce expenditure
will be roughly 710 million US dollars. The country's retail sales of this product category
were predicted to rise further, reaching more than 1.3 billion US dollars in 2026.

● Shopee Food, Grab Food, Now, and Baemin are the top F&B sites. More precisely, Shopee
Food was the most popular meal delivery app in the country, followed by Grab Food, which
was utilized by 58 and 48 percent of respondents, respectively. However, both only provide
finished goods. The raw materials industry, in which Central Retail is primarily invested and
involved, appears unaffected.

These five noteworthy findings indicate that Central Retail has a good possibility of entering
the digital retail sector, which offers high traffic, high popularity, fast growth, and little rivalry. This
is also the reason for our economic specialist to grade it the highest score for opportunity.

Opportunity 2: The perpetual growth of Vietnam F&B industries after COVID-19.

After more than five challenging years of survival due to the COVID-19 pandemic, Vietnam
is a rare bright spot in the gloomy global economic landscape, with a strong recovery after the
outbreak of the disease. The recovery happens in all economic sectors, including the F&B service
industry. According to the Vietnam Report in August 2022, it showed that nearly 90% of businesses
achieved over 80% productivity, and even above 60% of them surpassed pre-pandemic levels.

Explaining the impressive recovery speed of this market, the positive signal of revenue
growth in 2022 is attributed to the country's safe adaptive approach to economic development. The
government is loosening social distancing measures, allowing the reopening of business activities in
the restaurant, catering, and tourism service industries, while stimulating consumers to shop and
spend. As a result, sales of the Vietnamese F&B service industry have been promoted.

According to forecasts of the analysis group, although Vietnam's economy in 2023 will face
many pressures, the market value is expected to increase by 18% and reach 720 trillion VND in
2023 compared to that in 2022. Additionally, the F&B market will continue to grow steadily,
expected to reach a value of up to 938.3 trillion VND by 2026.

Opportunity 3: The retail sector in Vietnam has been growing at a fast pace.

Vietnam's retail sector is currently experiencing robust growth, as reported by the Ministry
of Industry and Trade. The market size has reached an impressive USD 142 billion, with forecasts
indicating an expected surge to USD 350 billion by 2025. This surge is expected to contribute
significantly, encompassing 59% of the total GDP domestic budget. The recovery in domestic trade
activities, the implementation of consumer stimulus programs, and promotional months have all
played pivotal roles in stimulating shopping demand. Supply and demand are well-balanced,
resulting in relatively stable prices, thereby aiding the government's goal of inflation control. The
effective connection between domestic manufacturers and large distribution systems across the
country further enhances market stability.
Consequently, total retail sales of goods and service revenue in 2022 are projected to
increase by an impressive 21%, significantly surpassing the industry's planned target of an 8%
increase. In light of these promising market conditions, Central Retail has unveiled ambitious
investment plans. The company has announced its commitment to invest an additional VND 20,000
billion in the Vietnamese retail market over the next five years. Central Retail intends to channel
this substantial investment capital to boost sales in the Vietnamese market from 2022 to 2026, with
a projected expenditure of VND 65,000 billion. Central Retail's investment strategy also
encompasses an expansion of its presence across the country. The company intends to extend its
points of sale from the current 40 provinces and cities to 55 provinces and cities nationwide. This
aggressive expansion strategy reflects Central Retail's commitment to capitalizing on the rapidly
growing Vietnamese retail sector, thereby positioning itself as a key player in this dynamic
marketplace.

Opportunity 4: A stable political environment and government policies supporting foreign

investment can encourage Central Retail's expansion in Vietnam.

Vietnam is viewed as a significant market by Central Retail because of its steady economic
growth and great potential. Initially, Central Retail Vietnam was a small fashion retailer with a few
locations. Today, they operate over 340 stores in 40 provinces and towns of Vietnam, covering over
1,200,000 m2 of retail space.

From 300 million baht (8.7 million USD) in 2014 to 38,592 million baht (1.12 billion USD)
in 2021, the company has had a sharp increase in growth. Most recently, in 2022, the business
turned into The business-generated sales revenue that accounted for 25% of Central Retail's overall
revenue, making it the biggest foreign retailer in Vietnam, dominating the hypermarket segment's
market share, and moving up to the second spot in the shopping center market share trade - Method.

A stable political environment in Vietnam provides Central Retail with predictability and
reduces risks associated with regulatory changes or instability. Supportive government policies,
especially those favoring foreign investment, can include incentives, streamlined procedures, and
the protection of investors' rights. These factors collectively enhance the considerations and
attractiveness of Central Retail's expansion in the Vietnamese market.

Opportunity 5: Vietnam possesses a plentiful workforce characterized by modest wage levels.

Vietnam is a country with more than 100 million people, making it a strong resource for the
next phase of social and economic growth. Furthermore, Vietnam has a favorable demographic
structure, with around 70% of its citizens being of working age. Vietnam now has a base and a
chance to take advantage of its growth and development.

Vietnam now comes in last among the 11 Asia-Pacific nations surveyed and 47th out of 60 countries
with labor markets worldwide. In contrast to the global average of $2,143 per month, the average
salary for Vietnamese workers is $275, or more than 6.5 million VND, each month, according to the
survey. This number offers firms, especially foreign investors, an enticing cost advantage.

Opportunity 6: Omni-channel is on the trend of altering multi-channel platforms.

In the year 2023, the retail industry is witnessing a profound transformation marked by a
strategic focus on diversifying sales channels and capitalizing on the expansive reach of online
platforms. A key paradigm shift is the relentless adoption of omnichannel sales strategies, wherein
retailers are adeptly leveraging multiple business platforms to present their products to a wider
audience. This underscores the enduring dominance of omnichannel commerce, as shoppers evolve
into what can be aptly termed "digital consumers," who are not only sustaining but also intensifying
their engagement with e-commerce and online shopping portals. Furthermore, the convergence of
shopping and entertainment, epitomized by the burgeoning trend of "Shoppertainment," is poised to
play a pivotal role in shaping the retail landscape in the foreseeable future. This trend underscores
the fusion of digital content creation with product marketing, creating immersive and engaging
shopping experiences.

Anticipated is a substantial uptick in sales linked to entertainment platforms, streaming

services, and products associated with content creators, as consumers increasingly seek multifaceted
engagement with brands. Central Retail has demonstrated its commitment to establishing a robust
multi-channel platform in Vietnam, mirroring its successful model in Thailand. Currently, sales
generated via the Omnichannel platform contribute to over 8% of Central Retail Vietnam's total
sales, highlighting the growing significance of the multi-platform sales approach in the
contemporary retail landscape. Recognizing the pivotal role played by the multi-channel model in
modern retail, Central Retail maintains a forward-looking objective of refining and enhancing the
multi-channel sales platform to deliver an optimal shopping experience characterized by
seamlessness for customers. This strategic endeavor aims to effectively double the sales through
multi-channel channels, with a target of reaching 15%.

2.3.4 Threat

Threat 1: The trending popularity of minimarkets like Bachhoaxanh, Winmart, Co.op Food,
etc. in local areas (Competitors for F&B on the directive platforms).

Next after the sharp rise of convenience stores such as Circle K, Ministop, Family Mart, etc.
to replace old and long-established grocery stores in Vietnam's urban areas is the vast growth of
chain stores such as Bachhoaxanh, Co.op Food, and Winmart. The Vietnamese traditional market
has significantly experienced changes in the last 20 years, from a deeply Eastern cultural
establishment as fairs to more Western ones as supermarkets, and malls.

However, 2021 statistics revealed that the penetration rate for consumer goods in
minimarkets amounted to nearly 70 percent in urban and around 21 percent in rural areas of
Vietnam. Minimarkets have arisen as a handy route for customers nationwide by providing
modernized facilities and increased variety. In 2022, after undergoing the Covid19 and the strict
policies of social distancing, the most favorite goods exchange place has started to shift to small
chain stores or minimarkets, which are dense in number and distribution that can easily be found
near condominiums, apartments, schools/universities, or other populated areas.

Although supermarkets such as Go! and BigC still provide unique services and customer
experience (which has already been rivaled by others like Vincom, NeonMart, Co.op Mart), CT
(Central Retail) nevertheless can not contend with their abundance and convenience, which is more
appreciated in modern buying behaviors. Current reactions of CT are:

● Focus on investments in online platforms, where physical attributes no longer show

superiority in customers’ store-selecting decisions

● Neglect the trend and focus more on the current journey of rebranding themselves by
developing their assets within Lanchi Mart, mini go!, Top Markets, and GO! Hypermarket.

In conclusion, either there will be an equilibrium amount of traffic between other

minimarkets and CT supermarkets, or this tendency will reach its pinnacle and minimarkets will
partially alter supermarkets to the point where it severely harms CT's supermarket revenue.
Threat 2: Inflation is causing people to tighten their spending.

One of the concerns of companies and consumers following the COVID-19 outbreak is
rising inflation. Despite the gradual growth in people’s incomes, they remain lower than
pre-pandemic levels. There has been a notable decrease in people's confidence as a result of the
significant effects of the conventional means of generating revenue. This is a reflection of the
uncertainty in the market, which has given rise to real estate bubbles that are taking advantage of the
rising trend. Furthermore, consumer confidence seems to be improving in 2023, while expenditure
is expected to decline by 6% from 2022 to 2023. Inflation is mostly to blame for the growing
expenses of utilities, food, healthcare, and education.

As a result, consumers feel pressured to embrace more economical spending practices,

reducing costs associated with buying food and components for daily meals. Furthermore, many
customers are actively comparing costs across many channels, including online platforms, to
negotiate these difficult situations and find the best offers.

Threat 3: Existing E-commerce competitors (Shoppee, Lazada, Tiki) dominating the online
market (Competing in electronics, daily goods, and clothing).

The presence of well-established e-commerce competitors like Shopee, Lazada, and Tiki,
who currently hold a dominant position in the online market, poses a substantial threat to Central
Retail Vietnam. The trend of online shopping is increasingly developing compared to offline
shopping, which will be a new playground for the Vietnamese retail market. According to data from
February 2022, online shopping platforms are experiencing a surge in user engagement, with
Shopee recording 78.5 million visits, followed by Lazada at 14.8 million, Tiki at 14.1 million, and
Cho Tot (Vietnam) at 12.7 million visits. In the realm of mobile shopping applications for both
Android and iOS, Shopee maintains its lead as the most widely utilized platform, with Lazada and
Tiki following closely in second and third positions, respectively. These competitors have already
carved out significant market share, particularly in key product categories such as electronics, daily
goods, and clothing.

To counter this threat, Central Retail Vietnam needs to adopt a multifaceted approach.
Firstly, it should focus on product differentiation by offering unique and exclusive items that set
them apart from the competition. Secondly, enhancing the online shopping experience by ensuring
user-friendliness, quick and reliable delivery, and excellent customer service is crucial. Leveraging
the synergy between their physical stores and online presence to create a seamless omnichannel
experience is another strategic avenue. Additionally, strategic partnerships or acquisitions to expand
their online presence could also be considered. Lastly, staying attuned to evolving consumer
preferences and swiftly adapting to market trends is essential. By implementing these solutions,
Central Retail Vietnam can effectively compete and maintain its market relevance in the face of
dominant e-commerce competitors.

Threat 4: The prices of goods are continuously increasing, and the consumer price index is
rising.

Numerous factors can impact both the consumer price index (CPI) and commodity prices.
These rises in Vietnam could be caused by several factors, including rising global commodity costs,
supply chain interruptions, rising demand, and inflationary pressures. Geopolitical events, economic
policy, and currency movements can also have an impact. All of this has been happening since the
emergence of the COVID-19 epidemic, causing the needs and purchasing behavior of the entire
population to change. The total cost of goods and services is influenced by a complex interaction of
domestic and international factors, which raises the CPI.

Threat 5: The intricate COVID-19 pandemic disrupted production due to a shortage of

essential goods and materials.

Supply chains have been severely impacted by the COVID-19 outbreak and prolonged
pandemic because of production input shortages, blockade tactics, social separation, and operational
challenges. transit routes via sea. As a result, there is a disturbance in the supply chain as
commodities are moved from production to consuming hubs, sometimes even within the same
nation.

From one industry to another and from one nation to another, the disruption of industrial
activities in the global supply chain has had a cascading effect on the supply side. Consumer
demand declined due to a substantial reduction in people's income. Due to manpower shortages,
several industries struggle to maintain normal output levels.

On the demand side, people's income has fallen sharply in general, and the psychology of
postponing consumption owing to anxieties about the unpredictable developments of the COVID-19
outbreak has driven consumer demand to fall. Uncertain about the future, businesses and consumers
have been stockpiling crucial items, putting further strain on supply systems.

In summary, the COVID-19 pandemic had a diverse impact on the global economy, causing both
increased output in some sectors and shortages in others due to interruptions in supply networks,
changes in consumer behavior, and unexpected obstacles in manufacturing processes.
2.4 External Factor Evaluation Matrix (EFE matrix)

Average Average
Opportunities Points Order
Weight Rating

Omni-channel is on the trend of altering

0,11 2 0,23 O6
1 multi-channel platforms

COVID-19 familiarizes customers with

the online order & delivery system for the 0,24 3 0,73 O1
2 F&B industry

Vietnam possesses a plentiful workforce

0,12 2 0,24 O5
3 characterized by modest wage levels

The retail sector in Vietnam has been

0,17 2 0,35 O3
4 growing at a fast pace

A stable political environment and

government policies supporting foreign
0,16 2 0,32 O4
investment can encourage Central Retail's
5 expansion in Vietnam

The perpetual growth of Vietnam F&B

0,20 2 0,39 O2
6 industries after Covid19

Sum 1,00 2,24

Average Average
Threats Points Order
Weight Rating
 Existing E-commerce competitors (Shoppee,
Lazada, Tiki) that are dominating in online
0,20 3 0,60 T3
market (Competing in electronics, daily
1 goods, and clothing)

The trending popularity of minimarkets like

Bachhoaxanh, Vinmart, Co.op Food, etc. in
0,28 3 0,83 T1
local areas (Competitors for F&B on the
2 directive platforms).

The intricate COVID-19 pandemic disrupted

the production process due to a shortage of 0,08 2 0,16 T5
3 essential goods and materials.

The prices of goods are continuously

increasing, and the consumer price index is 0,21 2 0,42 T4
4 rising.

Inflation is causing people to tighten their

0,24 2 0,47 T2
5 spending

Sum 1,00 2,48

The substantial expansion of the retail industry, coupled with the Vietnamese government’s
receptiveness to foreign investors, creates an optimal environment for the long-term development of
Central Retail Vietnam. This favorable business environment also brings some positive advantages
for competitors such as Winmart, BachHoaXanh, or Co.opmart, recognized as popular choices
among Vietnamese consumers. However, the COVID-19 pandemic changed the way customers
access products, most people tend to order from online platforms, instead of traditional in-store
shopping practices. The retail market witnesses a transformative wave from a multi- channel
approach to an omni-channel model. According to Simplivity Index statistics, there are
approximately 84% of customers willing to spend more money on a seamless and consistent
shopping experience. Nevertheless, Central Retail Vietnam is currently confronting the scarcity of
essential materials in the production process, a consequence of the impacts of the COVID-19
pandemic, as well as, there is a considerable decrease in consumer purchasing power, while the
ongoing inflationary pressures within the Vietnam market.
 In conclusion, the EFE matrix illustrates Central Retail Vietnam’s response to external factors
impacting its business activities. The total opportunity and threat points of Central Retail Vietnam
are approximately 2.24 and 2.48 respectively, indicating a moderate level reflection with the
elements in the external environment. Currently, the business activities of Central Retail Vietnam
are stable and possess numerous opportunities for future development.

2.5 Internal Factor Evaluation Matrix (IFE matrix)

Average Average
Strengths Points Order
Weight Rating

1 Wide distribution 0,15 3 0,45 S3

Strong presence and standardized

2 0,16 2 0,32 S4
customer service

Central Retail Vietnam enhances the

3 global presence of Vietnamese product 0,12 3 0,36 S5
brands

Retail products’ variety and

4 0,14 2 0,28 S6
exclusiveness.

A large source of investment capital and

5 0,20 3 0,60 S2
interest from investors

Low prices are suitable for the average

6 0,23 3 0,69 S1
income of Vietnamese people.

Sum 1,00 2,70

Average Average
Weaknesses Points Order
Weight Rating

Unattractive store environment and

1 0,12 3 0,37 W5
unsatisfied customer services

2 Customers' unfamiliarity with the 0,11 2 0,22 W4

 rebranding series

Unattractive store environment and

3 0,31 3 0,94 W1
unsatisfied customer services

The traditional model makes Central

Retail's supermarket chain weaker than
4 0,26 1 0,26 W3
other industry retail chains in attracting
potential customers

5 Product quality is unstable 0,19 3 0,58 W2

Sum 1,00 2,37

The two tables display Central Retail’s strengths and weaknesses graded by multiplying
averages of their ratings (impact points) with their identical weights (importance). The top two
strengths stand distinguished, scoring more than 0,6 points, implying their vital influence on the
firm’s competency. For the weakness table, the highest assorted factor exhibits an absolute
dominance rating of 0,94 points, indicating a distressing defect to the company’s prosperity. On the
other hand, comparing the two sums results in a win for strengths, signifying the superiority of the
firm’s capability over its deficiency. These results can be forecasted by comparing the number of
elements between the two agendas.

In conclusion, Central Retail’s leverage overall surpasses its shortcomings, it has more
distributed strengths while enduring a major hazardous weakness.

CHAPTER 3: DEVELOPING THE STRATEGY PLAN

3.1 SWOT Matrix

STRENGTH WEAKNESS

Low prices are suitable for the average

S1
income of Vietnamese people Unattractive store environment and
W1
unsatisfied customer services
S2 A large source of investment capital
 and interest from investors

S3 Wide distribution W2 Product quality is unstable

The traditional model makes Central Retail's

Strong presence and standardized
S4 W3 supermarket chain weaker than other industry
customer service
retail chains in attracting potential customers

Central Retail Vietnam enhances the

Customers' unfamiliarity with the rebranding
S5 global presence of Vietnamese product W4
series
brands

Retail products’ variety and

S6 W5 Unpopularity in the digital market
exclusiveness

OPPORTUNITIES THREATS

The trending popularity of minimarkets like

COVID-19 familiarize customers with
Bachhoaxanh, Vinmart, Co.op Food, etc. in
O1 the online order&deliver system for T1
local areas (Competitors for F&B on the
F&B industry
directive platforms).

The perpetual growth of Vietnam F&B Inflation is causing people to tighten their
O2 T2
industries after COVID-19 spending

The retail sector in Vietnam has been

O3
growing at a fast pace
Existing E-commerce competitors (Shoppee,
Lazada, Tiki) that are dominating in the
A stable political environment and T3
online market (Competing in electronics,
government policies supporting foreign
O4 daily goods and clothing)
investment can encourage Central
Retail's expansion in Vietnam

Vietnam possesses a plentiful The prices of goods are continuously

O5 workforce characterized by modest T4 increasing, and the consumer price index is
wage levels rising.
 The intricate COVID-19 pandemic disrupted
Omni-channel is on the trend of
O6 T5 the production process due to a shortage of
altering multi-channel platforms
essential goods and materials.

3.2 Identifying Strategy Options

OPPORTUNITIES THREATS

T1: The trending popularity of

O1: Covid19 familiarize
minimarkets like Bachhoaxanh,
customers with the online order &
Vinmart, Co.op Food, etc. in local
delivery system for the F&B
areas (Competitors for F&B on the
industry
directive platforms).

O2: The perpetual growth of

T2: Inflation is causing people to
Vietnam F&B industries after
tighten their spending
COVID-19

T3: Existing E-commerce

competitors (Shoppee, Lazada,
O3: The retail sector in Vietnam Tiki) that are dominating in the
SWOT has been growing at a fast pace online market (Competing in
electronics, daily goods and
clothing)

O4: A stable political

environment and government T4: The prices of goods are
policies supporting foreign continuously increasing, and the
investment can encourage Central consumer price index is rising.
Retail's expansion in Vietnam

O5: Vietnam possesses a plentiful

T5: The intricate COVID-19
workforce characterized by
pandemic disrupted the production
modest wage levels
process due to a shortage of
O6: Omni-channel is on the trend essential goods and materials.
of altering multi-channel
 platforms

STRENGTH S + O STRATEGY S + T STRATEGY

S1: Low prices are suitable SO1: S1+S6+O2 With the

for the average income of development of Vietnam's retail
ST1: S2+T2+T4 With a large
Vietnamese people market, Central Retail Vietnam is
initial investment, Central Retail
committed to provide customers
Vietnam temporarily reduced
with diverse products at low
S2: A large source of product prices to attract users and
prices compared to their
investment capital and create a brand impression during
competitors. Broad Low-cost
interest from investors the rebranding process.
strategy 1
Penetration pricing Strategy

S3: Wide distribution SO2: S3+ S4+O1+O6 The

development of online shopping
trends and omnichannel networks
is the foundation for Central
Retail's business expansion in
Vietnam. Moreover, Central
S4: Strong presence and
Retail Vietnam also owns a large
standardizing customer
hypermarket system with modern
service
equipment to provide a seamless ST2: S1+S3+T1 With products
online or offline shopping being widely distributed and low
experience and enhance them for prices being adjusted to better suit
consumers. Digitization strategy people's budgets, this dominates
Central Retail Vietnam's products
S5: Central Retail Vietnam
compared to mini supermarkets
enhances the global
SO3: S5+S2+O3+O4 Central such as Bachhoaxanh,... Broad
presence of Vietnamese
Retail Vietnam always seizes new Low-Cost strategy 2
product brands
opportunities to expand its
business nationwide and customer
S6: Retail products’ variety
segmentation to serve the diverse
and exclusiveness
lifestyles of Vietnamese people.
Market development Strategy
 WEAKNESS W + O STRATEGY W + T STRATEGY

W1: Unattractive store WO1: W1 +W2 + O3 To reduce

environment and unsatisfied product defects, especially in the
customer services food sector, Central Retail
commits to pursuing continuous
W2: Product quality is quality improvement by strictly
unstable manage the process of quality
control when importing food
product in particular and other WT1: W1+W3+W4+T1
products in general. All products Difficulties in rebranding appear
appearing in the supermarket both in being interesting enough to
chain have to be provided with outstand competitors to gain new
legal documents and the ISO customers and solve prevailing
9001 standard certificate. The issues to maintain old ones. New
company usually seeks for technology adoption such as
W3: The traditional model high-quality tenants in order to robots, AI, and automatic
makes Central Retail's enrich the shopping experience procedures can solve both by
supermarket chain weaker for their customers. In addition, improving the queueing
than other industry retail Central Retail always improves system/customer service and
chains in attracting potential its customer services by creating an appealing buying
customers continuously training its experience. Digital strategy.
employees with up-to-date
training materials, soft skill
classes, and English classes to
reinforce an executed, thoughtful
team and dedicated customer
service Broad Differentiation
strategy

W4: Customers' WO2: W3 + W4 + W5 + O6 WT2: W2+T5 To enhance

unfamiliarity with the Amidst the rapid advancement of product quality and reinforce

rebranding series modern technology, the product supplies after Covid19,

flourishing landscape of online import decisions and import plan
 shopping channels is playing a development must be taken
pivotal role in fostering the seriously. Import Strategy
growth of multi-channel sales.
Central Retail has the opportunity
to collaborate with external
partners proficient in sales
software development and
website design, leveraging their
W5: Unpopularity in the expertise to enhance the online
digital market sales capabilities of its
supermarkets. The integration of
digital platforms not only
signifies a commitment to
innovation but also ensures that
the supermarkets remain relevant
and accessible in the
ever-evolving retail landscape
Outsourcing strategy

3.3 Optimal Strategy Analysis

After evaluating and analyzing the Quantitative Strategy Planning Matrix ( SQPM ), it is evident
that the strategies SO2, ST2, WO1, and WT1 account for the highest points approximately 8.56,
7.58, 7.47, and 8.01, respectively.

3.3.1 Digitization Strategy.

● Defining Digitization Strategy:

A digitization strategy is a roadmap for how an organization will leverage digital technologies
to transform its business processes, operations, and offerings to achieve specific goals. It's about
using technology to improve efficiency, enhance customer experience, create new value
propositions, and ultimately gain a competitive edge.

● Analyzing the Digitization Strategy of Central Retail Vietnam

Following a comprehensive evaluation and analysis employing the Quantitative Strategic

Planning Matrix (QSPM) methodology, it is discernible that the digitization strategy accounts for
the highest score relative to the remaining strategic alternatives. This underscores the strategic
significance for businesses, elucidating the multifaceted array of factors exerting influence on this
particular strategy.
 Central Retail Vietnam possesses an extensive distribution network and a robust market
presence, coupled with the standardization of customer service. Currently, Central Retail Vietnam
owns a comprehensive retail network, comprising over 340 stores and malls strategically situated in
40 provinces within Vietnam. Furthermore, the company benefits from a substantial investment
capital and attracts interest from investors. In early 2023, Central Retail Vietnam's parent company,
recognized as Central Group, unveiled plans for sustained investment, allocating an additional 1.45
billion USD to Central Retail Vietnam to double the existing number of stores to 600, reflecting the
company's aspiration to ascend as the preeminent multi-channel retailer specializing in food and real
estate within the Vietnamese market. Additionally, Central Retail Vietnam boasts a diverse range of
retail products known for their variety and exclusivity with a low price, which contributes to
creating an effective presence of brands of Central Retail Vietnam to customers.

Central Retail Vietnam continuously seizes opportunities to position itself as one of the
leading leaders among retailers in Vietnam. Opportunities for Central Retail in Vietnam have
emerged, with the impact of COVID-19 familiarizing customers with online order and delivery
systems, particularly in the F&B industry. Moreover, the prevailing trend of Omni-channel is
reshaping traditional multi-channel platforms. Customers can disseminate company product
information by utilizing platforms established by Central Retail Vietnam. The construction and
enhancement of the omni-channel model constitute integral components of the digitization strategy
currently being enacted by Central Retail Vietnam. This approach facilitates seamless customer
interactions, encompassing search, ordering, and receipt of goods, ensuring uniform experiences
throughout various channels. Consequently, businesses gain the capacity to collect optimal customer
profiles. The significant development of Vietnam's retail sector contributes to the opportunities for
Central Retail Vietnam to effectively engage with customers.

However, implementing the digitization strategy of the Central region's retail industry is also
affected by some barriers, leading to challenges in attracting potential customers. The company
faces issues related to its lack of popularity in the digital market and the unfamiliarity of customers
with its rebranding series. In terms of threats, the economic landscape in Vietnam presents
challenges, particularly with the rising popularity of competition such as Bachhoaxanh, Vinmart,
and Co.op Food, among others, posing direct competition in the F&B sector on directive platforms.
Additionally, existing E-commerce competitors like Shopee, Lazada, and Tiki dominate the online
market, especially in electronics, daily goods, and clothing, intensifying the competitive landscape
for Central Retail.

In conclusion, Implementing a digitalization strategy helps Central Retail Vietnam easily

reach customers through e-commerce channels and enhance a strong relationship with their
customers. This strategy also helps the company collect customer data through information
provided when customers experience shopping at Central Retail Vietnam's retail supermarket or
hypermarket chains. In addition, the digitalization Strategy promotes the company’s competitive
advantage over information competitors by applying progressive and appropriate technologies to
meet consumers' changing needs and preferences. Central Retail Vietnam also reduces costs, based
on effective resource allocation through analyzed data sources and automation of some processes.
By embracing digitalization, Central Retail Vietnam can position itself as a dynamic and
customer-centric retail entity while achieving operational excellence and a competitive advantage in
the market.

3.3.2 Broad Low-cost Strategy 2.

● Defining broad low-cost strategy:

A broad low-cost strategy, known as cost leadership, involves a business striving to be the
most cost-effective player in its industry. This strategy revolves around minimizing production and
operational costs compared to competitors, enabling the company to offer its products or services at
more competitive prices. Essential components of a broad low-cost strategy include streamlined
production processes, leveraging economies of scale, rigorous cost management, and frequently,
standardized offerings. The primary objective is to capture a significant market share by providing
products or services that are perceived as offering excellent value due to their affordability.

● Analyzing the Broad low-cost strategy of Central Retail Vietnam

Central Retail Vietnam, a subsidiary of the Central Group, employs various strategies to
achieve a leading position in cost and competitive advantage:

Central Retail Vietnam focuses on providing products at lower or equivalent prices compared
to competitors. By consistently delivering value to customers through affordable pricing, the
company strengthens its position as a cost leader in the retail market in Vietnam. For instance, at the
nationwide GO! and Big C hypermarket systems, the 'Super Savings' campaign is implemented,
offering discounts of up to 50% on 390 products, including fresh food, fast-moving consumer
goods, cosmetics, household items, and fashion. On average, the prices are reduced by 41% during
this promotion. At the Tops Market supermarket chain, the 'Super Savings' program includes up to
50% discounts, buy 2 get 1 free, and a 50% discount on the second item purchased, aiming to
enhance the shopping experience for Vietnamese families.

Central Retail Vietnam likely focuses on optimizing its supply chain to minimize sourcing,
transportation, and inventory management costs. By streamlining these processes, the company can
reduce expenses and offer more competitive prices to customers. The company may implement
rigorous cost control measures across all its activities, including monitoring costs related to labor,
utilities, and management. By efficiently managing costs, Central Retail Vietnam can maintain a
low-cost position in the market.

Supermarket GO! is considered an address with fresh food and competitive prices on the
market. “To ensure competitive prices, Central Retail Vietnam has made efforts to select supply
sources and build a sustainable threat with reliable suppliers by entering into long-term offtake
contracts.

In addition, Central Retail Vietnam also tries to expand its transportation and storage network,
strongly influenced by Big C, to minimize intermediaries. According to the director of an operating
company that is a partner of many system supermarkets, the shipping cost per product unit of GO!
belongs to the lowest group, compatible with Aeon. In addition, Central Retail Vietnam is also a
selected product with a moderate price to reduce fixed costs.

In conclusion, Central Retail Vietnam, as a subsidiary of the Central Group, strategically

positions itself as a cost leader in the competitive retail market of Vietnam. Through a combination
of effective supply chain optimization, rigorous cost control measures, and consistent efforts to
provide value to customers, Central Retail Vietnam has successfully established itself as a
frontrunner in offering affordable and competitive prices. The implementation of campaigns like
"Super Savings" reflects the company's commitment to delivering cost-effective solutions, and
enhancing the overall shopping experience for Vietnamese consumers. With a focus on cost
efficiency and customer satisfaction, Central Retail Vietnam continues to play a pivotal role in
shaping the landscape of the retail industry in Vietnam.

3.3.3 Broad Differentiation Strategy.

● Defining Broad Differentiation Strategy:

A broad differentiation strategy is how the company makes its products and services different
compared with other rivals in the same sector. It can be the special characteristics of the products,
the technology applied in the services, etc. By pursuing the broad differentiation strategy, the
company can achieve a wider customer segment and gain customers’ loyalty to its brand.

● Analyze the Broad Differentiation Strategy of Central Retail Vietnam:

According to the QSPM table, the broad differentiation strategy was assessed with a
remarkably high score that reflects the potential of implementing this strategy in amending the
business status in the condition of the existing downtrend of the market economics.

Central Retail Vietnam established a wide range of retail formats such as hypermarkets (GO!
and Big C), supermarkets (Tops Market), convenience stores (Lan Chi), specialty stores (Nguyen
Kim, Supersport, and Come Home), etc. This variety of brands satisfies different customer needs
with a broader choice of budget. In each format, the corporation offers plentiful products that come
from both local and international manufacturers, moreover, private labels and specialty items are
also the potential factors for Central Retail Vietnam to enrich its customer shopping experiences and
prevent direct rivalry towards other similar brands. In addition to the diversity of products, the
corporation also presents unique services for its visitors such as accumulating points through BIG
XU - an exclusive app for the customers to use when they go shopping at stores or delivery,
organizing beauty workshops or decoration workshops to giving the customers the opportunities to
experience the products of their retail brands. To develop the traffic of the stores, Central Retail
Vietnam focuses on creating more zones for the visitors to experience such as the food court, and
interior maze of the Come Home brand - a brand new interior of Central Retail Vietnam. By
exploiting products and services well, Central Retail Vietnam has a chance to enhance the value of
the customers as well as differentiate itself from other rivals.

In the context of raising strict shopping standards by the customers aligned with the
significant growth of the retail market, Central Retail Vietnam continuously improves and manages
its quality control harshly. All products distributed in Central Retail Vietnam stores have to provide
legal documents and health safety certificates proven by the authorities, especially in the food
sector. Not only is the quality of products rigidly controlled, but creating an attractive shopping
environment is also a concern. The design and development department of the firm checks sites
every month to assess the decoration of each brand, measure the acreage of each rental area, and
assess the arrangement of the stores to identify a different design method to create a more lively
environment for customers to shop.

Central Retail Vietnam has strong factors to differentiate its reputation, which are the group's
exclusive campaigns. "Big C - Tet Market", "Agricultural Week", "Top Market food festival", "Tech
for Life", and "Robins fashion festival" are outstanding and different campaigns are only available
at Central Retail Vietnam. Promoting these campaigns causes the group to spread its image
throughout Vietnam, resonating with its customers. Furthermore, these campaigns also contribute to
differentiating central retail Vietnam from other competitors.

In summary, despite the downturn economics, the retail sector of Vietnam still tends to
develop unpredictably, opening a lot of opportunities for internal and external retail firms to grow.
Applying the broad differentiation strategy is an appropriate way for Central Retail Vietnam to
stand out from the market, highlighting its appearance in the ideal shopping location list of
customers. Moreover, this strategy helps increase the competitiveness of Central Retail in the
context of existing various retail brands and remains the position of the corporation in the retail map
of Vietnam.
3.3.4 Digital Strategy.

● Defining Digital Strategy:

Digital strategy focuses on leveraging technology to improve corporate performance, whether

via developing new products or redesigning existing processes. It describes an organization's
strategy for gaining new competitive advantages through technology, as well as the techniques it
will employ to attain these objectives.

● Analyze the Digital Strategy of Central Retail Vietnam:

According to the Central Retail PESTLE study's Technology Background Analysis, the
present trend in technology adoption is not beneficial to the company's core business. Despite
previous endeavors on the Go! app and website, its reputation is unfavorable and occasionally
disappointing. Because Central Retail's rebranding is a long process, there is still time and chance to
remedy its mistakes.

With its application and current online services being unpleasant, the firm needs a more
deliberate and ambitious digital approach based on familiarity and a strong presence in the physical
retail industry. This strategy will be implemented in two stages: repairing and upgrading the
software and creating or deploying new technologies in the physical facilities.

The first phase must be more carefully evaluated because it is notorious for failing and
irritating long-term customers. Software development is not easy, thus Central Retail should look
into new outsourcing choices and its associates' businesses. The bad application may be a result of
earlier policies in investment and budget allocation; more money must be put into this because it is
a partial but substantial value of developing an omnichannel retail system, which is presently the
most put effort into.

Based on current user evaluations and comments, the application's UI is not an issue, but its
UX regularly causes errors and unpleasant interactions. Furthermore, customers are especially
dissatisfied with the Go! delivery method and customer service. Extremely late and unpredictable
delivery schedules, the company's reluctance to handle customer-reported concerns, and frequent
product loss during transit. A viable solution is to redesign the company's lower-level response
system so that it can be monitored and managed more directly using cutting-edge management
technology tools and systems. As it expands, issues and complaints may be forwarded to
higher-level management, who have the authority and experience to address them promptly.

The second phase might elapsed since it requires further company investigation, client
analysis, and technical progress to generate appropriate characteristics and services. Considering to
the assessed technical background and Vietnam's overall state in machinery development,
robot-relevant services and automation through AI may become a trend in the late future. Small or
medium-sized resources will be committed to assisting consumer behavior research and budget
forecasts to build services that prove to be beneficial.

To summarize, Central Retail's digital strategy will be an immediate response to its

detrimental online service performance in the near term, as well as an edge over rivals in the long
run. The approach it employs will have a substantial and direct impact on the company's rebranding
and adaptation to this modern, rapidly changing market, both favorably and negatively.

CHAPTER 4: IMPLEMENTATION AND EVALUATION OF STRATEGY

4.1 Strategy Implementation

4.1.1 Establishing clear objectives

According to Mr. Olivier Langlet, Chief Executive Officer of Central Retail Vietnam, “ With
Vietnam as Central Retail’s strategic market, we are fully equipped to accelerate and drive leaping
growth to become the nation’s #1 Omnichannel retailer in food and property, aiming to reach THB
100,000 million sales by 2026”. Based on this statement, Central Retail Vietnam planned clear
objectives from 2022 to 2026.

Central Retail Vietnam is moving forward to achieving four major goals in the next five years.
Central Retail Vietnam aims to invest more than THB 30,000 million by 2026 to accomplish these
four crucial objectives, which include:

● To become the #1 Omnichannel platform in food and property in Vietnam

● To drive sales to THB 100,000 million.

● To double omnichannel sales penetration to 15%.

● To expand presence across 55 of 63 provinces in Vietnam.

With assured competitive quality and freshness, Central Retail Vietnam makes sure that its
items are continuously 7% more inexpensive than those of competitors. Through a variety of
promotional programs, clients may also take advantage of additional savings that range from 10 to
20 percent. GO! shop offers a specific category with about 50 widely purchased food and drink
items, ensuring lower pricing than those found in conventional local markets.

The General Statistics Office reports that in 2022, Vietnam's total retail income for products
and consumer services reached around 236 billion US dollars (equal to 5,679.9 trillion VND), an
increase of about 20% from the year before. Numerous investors are still drawn to this steady yearly
growth rate above 10%.

● Making the supermarket chain GO! the leading commercial center model in Vietnam

Participating in the retail market in Vietnam, Central Retail always wants to contribute to the
richness of the lifestyle of Vietnamese customers through shopping experiences at the group's
supermarkets and hypermarkets. The corporation from Thailand brings a breath of fresh air to the
existing system with new models that not only serve the shopping needs of consumers but are also a
place for customers to have fun, entertainment, relaxation, and enjoyment with family and friends

4.1.2 Implementation Solutions

4.1.2.1 Human Resource Solutions

In the context of the competitive status of the labor force, Central Retail Vietnam should
invest in internal employee development, craft a hiring strategy to achieve a qualified range of
candidates and build a healthy and safe working environment.

In order to boost the ability of employees in the non-stop growing market, the human
resources department together with the management board should continuously meet and greet each
division, especially with the site labor forces. Central Retail Vietnam has a huge number of
employees working from the north to the south of Vietnam, geographical distance makes it difficult
for the management roles to closely supervise the labor force, so that more efforts have to be made
to improve this status. When communicating with each division, the HR team and the board will
have an overall insight of their capabilities and provide them with upskill classes or the
opportunities to learn new skills. In addition, the corporation can establish a mentorship program to
develop engagement between experienced employees with the newbies, help them to craft their
career path, and give them advice in their jobs. Organizing regular evaluations is also a method for
the HR department to monitor employees' work productivity and assess the effectiveness of
workforce utilization. Through evaluations, employees in the company can also see the results of
their work, thereby envisioning their career path through insights from the HR department.

Crafting an effective hiring strategy is also crucial for the growth of Central Retail Vietnam.
In the current labor market situation where there is a surplus of workforce but limited job positions,
making recruitment challenging, the corporation needs to define clear criteria for each position.
They should design entry tests to assess the suitability of each candidate for the required position.
Additionally, building an employment brand is also an important factor that the HR department of
Central Retail Vietnam should pay attention to. Developing the employment brand aims to
showcase the attractiveness of the working environment within the company, causing the interest of
many job seekers. As a result, HR will have more sources of candidate pools, enhancing the quality
of recruitment. Moreover, compensation and benefits also affect the hiring process of Central Retail
Vietnam, so that the firm needs to conduct regular salary surveys to ensure that wages are
competitive as well as offer a comprehensive benefits package, including health insurance, dental
insurance, vision insurance, life insurance, and retirement savings plans.

Working environment is a pivotal factor in strengthening the workforce. Central Retail

Vietnam has to maintain the current culture of diversity, equity, and inclusion. Besides, empowering
employees in decision-making and taking ownership of their tasks. Communication and feedback
also need to be regular practice so that employees feel their voices are valued and the company can
gain the labor loyalty. Recognition and reward are indispensable actions of the HR department for
individuals who have high achievements in Central Retail Vietnam. Timely recognition is a
motivating factor that encourages employees to work more efficiently and enhances their
commitment to the company.

4.1.2.2 Marketing Solutions

Situational marketing is a popular strategy for the flexible retail market. Keywords are fashionable,
catchy, generate value, and apply key values. Core value is a marketing solution that aligns with the
mentioned frames of strategy, although it can also be hidden inside other performance metrics.

- "Trendy" denotes innovation, change, and renewal. BigC's switch to Go! is not regarded as
fashionable, but employing digital tactics to transition the organization to an online presence
is. This implementation includes social media advertising, KOL advertising, Valentine's Day
and Black Friday promotions, and the marketing of popular items and services.

- "Catchy" refers to slogans, signage, and decorations that hook buyers with their visually
appealing and interesting look. It works by combining multiple strategies that highlight the
company's competitive advantage (or core value), such as "1 province 1 product," which
capitalizes on Central Retail's massive distribution and enhanced resource of collaboration, or
"Best price, best serve," which profits from the firm's standardizing approach to service and
renowned affordable prices.

- Central Retail's Go! the app, "GO! and BigC: Siêu sale đón Tết," demonstrates its
value-generating capabilities. It captures the characteristic aura of Tet, the Vietnamese New
Year's Eve, before presenting a sensible explanation for the discount and promotion,
emphasizing that the company is assisting individuals during a time when love and empathy
are traditionally provided. One such strategy is to launch a campaign to replace plastic bags
with paper bags while emphasizing the company's "care for the environment" stance.
 - As previously stated, "core value" is not associated with a certain technique, but rather with
its usefulness and practicality. Central Retail's current guiding ideals are familiarity,
accessible expenses, appeal, quality, and omnichannel authenticity.

4.1.2.3 Enhancing Management Capabilities Solutions

Central Retail Vietnam focuses on initiatives to conduct comprehensive research and

establish, and refine the organization's operational framework. Particularly in emphasizing
completing departmental structures at various levels within the organization to facilitate the
seamless execution of enterprise-wide operational processes.

● Knowledge and Experience Enhancement:

Within Central Retail Vietnam, personnel should actively engage in regular coaching and
problem-solving programs where they share the expertise of managers to guide and support junior
colleagues. This practice fosters an environment supportive of continuous learning and skill
development.

● Teamwork Capacity:

The management of departments and divisions is meticulously designed to ensure coherence

and rationality. This involves creating an environment that facilitates harmonious collaboration
among departments, production units, and business blocks, aligning administrative capacities
appropriately. Additionally, the organization holds team-building activities to fortify interpersonal
relationships between managers and their teams, thereby cultivating a streamlined and cohesive
work environment.

● Strategic Execution Competence:

Both management and employees need to understand customer needs as well as market
trends, always learn and create strategies to achieve business goals, build clear presentations, and
decide on each appropriate type of production and business activity of the Company. Additionally,
leaders need to adopt new strategies and techniques to overcome any challenges that impact the
business activities.

4.1.2.4 Adjusting and Developing Corporate Culture

To modify and enhance the corporate culture at Central Retail, the organization can explore
the subsequent approaches:

● Define Fundamental Principles:

 Clearly express the fundamental principles that mirror the aspired culture. These principles
should harmonize with the company's mission and vision, acting as guiding values for employees.

● Exemplify Leadership Traits:

Leaders within Central Retail should showcase the desired cultural characteristics. Through
leading by example, leadership can motivate employees to embrace and internalize the cultural
values.

● Enhance Communication and Transparency:

Instigate transparent communication channels to ensure employees comprehend the shifts in

corporate culture. Regularly share updates, achievements, and challenges to foster transparency and
trust.

● Engage Employees:

Involve employees in the process of defining and molding the corporate culture. Encourage
their input, ideas, and feedback to instill a sense of ownership and commitment.

● Invest in Training and Development:

Introduce training initiatives focusing on the new cultural values. This may involve
workshops, seminars, and continuous learning programs to reinforce the desired behaviors.

● Acknowledge and Reward:

Recognize and reward employees embodying the desired cultural traits. Recognition programs
can incentivize employees to embrace and advocate for the cultural shift.

● Align with Performance Management:

Harmonize performance evaluations with the desired cultural attributes. This ensures that
employees are evaluated based on their contributions to the cultural transformation.

● Cultivate Diversity and Inclusion:

Cultivate a culture of diversity and inclusion. Embrace various perspectives and backgrounds,
creating an environment where every employee feels valued and included.

● Recognize Adaptability:

Acknowledge that corporate culture is dynamic and subject to evolution. Central Retail should
be adaptable to changes in the business environment, adjusting cultural elements accordingly.
● Establish Feedback Mechanisms:

Introduce mechanisms for continual feedback on the corporate culture. Regularly seek input
from employees and stakeholders to evaluate the effectiveness of cultural initiatives.

By incorporating these strategies, Central Retail can successfully navigate the process of
modifying and developing its corporate culture, ensuring alignment with the company's strategic
objectives and fostering a positive and thriving workplace environment.

4.2 Strategy evaluation

● A review of Central Retail's three tests of a winning strategy:

By systematically evaluating these factors, Central Retail Vietnam can gain a comprehensive
understanding of the development and make informed assessments of the company's overall
performance.

- In 2022, the Vietnamese market significantly augmented Central Retail Vietnam's financial
standing, registering a revenue of 53.4 billion baht (approximately 36,200 billion VND),
denoting a notable ascent of 34% compared to the 2021 figure of 39.7 billion baht.

- According to the financial report for the first quarter of 2023, the Vietnamese market
sustained its pivotal role by generating 14.1 billion baht (approximately 9,600 billion VND) in
revenue for Central Retail. This contribution represented nearly 24% of the total revenue,
ranking second only to the Thai market. The primary revenue streams emanated from the food
and electronics segments, aligning with the robust performance of GO! supermarkets and the
electronics retail giant Nguyen Kim. It is imperative to mention that the comprehensive
financial report has not yet divulged specific information on the profitability of this fiscal
period.

Evidently, Central Retail Vietnam achieved significant strides, leveraging a robust foundation
established over a decade of operations in the Vietnamese market. The entity plays a pivotal role in
fostering community, society, and economic development by facilitating job creation for the
Vietnamese populace and extending support to local farmers. Moreover, the Group actively fosters
the advancement of import-export activities between the two nations, thereby enhancing the
distribution network. These efforts seamlessly align with Central Retail's overarching vision, which
underscores the incorporation of sustainable business practices across all aspects of its operations.

Over the years, Central Retail Vietnam has undertaken strategic initiatives aiming at achieving
goals and amplifying its business scale. In particular, these initiatives encompass the construction
and expansion of GO! supermarkets in Ha Nam and Ninh Thuan Provinces. Furthermore, Central
Retail Vietnam is actively involved in the implementation of the "From Farm to Table" project,
designed to foster agricultural development and provide support to farmers, as well as participate in
environmental projects geared towards promoting the sustainable development of businesses and
society.

In conclusion, it is obvious that Central Retail is effectively meeting the criteria for evaluating
the growth of the business, thereby establishing a solid foundation for the execution and expansion
of its proposed strategies

● A review of Central Retail and Vietnamese retail sector stability and growth:

- Due to Statista 2010-2023 the major impact of the COVID-19 pandemic, the retail sector’s
growth track has shown signs of recovery following the lifting of several COVID-19
restrictions, reflected in the expansion of modern retail channels as well as the competitive
race between international and local retail players in Vietnam. Specific figures are displayed
on the chart below:

Retail sales of goods and services in Vietnam from 2010 to 2023

(in trillion Vietnamese dong)

- At the 2023 announcement event for the Top 10 prominent firms in the Food, Beverage,
Retail, and Packaging sectors, Central Retail Vietnam was selected number one by the
 Organizing Committee, marking its third consecutive champion of the award, emphasizing the
firm’s continuous success and stability in the Vietnamese retail market. This was the result of
being the current largest FDI retailer in Vietnam, leading the Supermarket sector.

- In January 2024, Central Retail publicized its report over the past few years on “going green”,
or sustainability achievements it has acquired including building schools, nylon bags
reduction, food, and commodity charity.

- By the end of 2023, Central Retail Group has planned a $1.45 billion investment in Vietnam
over the next five years, recognizing its importance as a key market. The Group plans to
double its distribution up to 600 stores, with sites in 57 of Vietnam's 63 provinces and
municipalities.

Hence, the Vietnamese retail economy is durable and perpetually growing. Central Retail
status can be concluded as flourishing and prosperous.

● A review of Central Retail's direction, objectives, and strategy:

Central Retail's initial goal and purpose promote the "Central of Life" tagline, which
emphasizes improving the quality of life for Vietnamese people while also achieving sustainability
via philanthropic activities and environmental projects. Its mission remains unchanged to this day,
albeit it is supported by its business direction: "To be the premier omnichannel platform in the
restaurant and retail center business". In addition, as previously indicated, the short-term aim is to
"double store distributions within the next five years." This is compatible with their current
methods. Nonetheless, the shortfall remains, causing minor but potentially significant damage to the
system.

As a result, further investigation and analysis are required, which is aided in part by this
paper. Aside from the previously effective methods, innovation is being investigated, which may
influence resource allocation and result in loss if not managed appropriately. As a result, genuine
problems, rather than imagined ones, restrict the feasibility of the initiatives.

● Conclusion:
Managers must review the effectiveness of their company's strategy execution efforts and
identify areas for improvement. Furthermore, good plan execution is typically the result of
extensive organizational learning. The development is uneven, with some communities enjoying
immediate benefits while others struggle. As a result, the goal of strategy is to gain an advantage
while remaining balanced.
This rule applies to Central Retail without exception, so it is best not to change any of the
firm's initial ideas, directions, or objectives at this time; however, to ride the innovation wave, only
minor but necessary changes are required so that the company performs well in any situation and
can seek profit even when faced with obstacles.
 Overall, the strategic plan is sufficient, while some of it is now unrealistic. The organization
does not need to modify its vision, aims, or objectives; rather, it must create policies and strategies
to evolve and adapt to technological and managerial innovation.

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