FOREIGN TRADE UNIVERSITY

HO CHI MINH CITY CAMPUS

---------***--------

MID-TERM ASSIGNMENT
INTERNATIONAL BUSINESS

TOPIC: DEVELOPING PIZZA 4PS’ BUSINESS

STRATEGY IN SINGAPOREAN MARKET
GROUP 9

Class code: ML103

Lecturer: Nguyễn Thị Quỳnh Nga
Ho Chi Minh City, May 2024
No. Student’s name Student code Contribution

1 Nguyễn Nhật Đình (Leader) 2111113058 100%

2 Nguyễn Thảo Phương 2112153134 100%

3 Lê Vũ Hoàng Vy 2111113311 100%

4 Hà Quỳnh Anh 2115113010 100%

5 Bùi Quang Anh 2115113004 100%

6 Đào Ngân Tranh 2111113288 100%

7 Ngô Bách Phương 2112153133 100%

8 Nguyễn Quang Khải 2114154008 100%

9 Nguyễn Quỳnh Như 2113153044 100%

 TABLE OF CONTENTS

TABLE OF CONTENTS
LIST OF ABBREVIATIONS
LIST OF FIGURES AND TABLES
EXECUTIVE SUMMARY........................................................................................... 1
CHAPTER 1: ANALYSIS OF PIZZA 4P’S................................................................2
1.1. Overview of Pizza 4P’s.......................................................................................2
1.2. Strengths............................................................................................................. 2
1.2.1. Support activities........................................................................................ 3
1.2.2. Primary activities........................................................................................3
1.3. Weaknesses......................................................................................................... 4
1.3.1. Support activities........................................................................................ 5
1.3.2. Primary activities........................................................................................6
1.4. International Strategy..........................................................................................7
CHAPTER 2: INTERNATIONAL MARKET SELECTION................................... 8
2.1. Regional macro screening – CAGE model......................................................... 8
2.1.1. Cultural distance.........................................................................................8
2.1.2. Administrative distance.............................................................................. 9
2.1.3. Geographic distance................................................................................. 10
2.1.4. Economic distance....................................................................................11
2.1.5. CAGE Assessment................................................................................... 11
2.2. Countries selection – BERI Model................................................................... 12
2.3. Competitive strengths....................................................................................... 16
CHAPTER 3: GO-TO-MARKET STRATEGY....................................................... 19
3.1. Market entry mode and organizational structure.............................................. 19
3.1.1. Market entry mode - Wholly-owned subsidiary.......................................19
3.1.2. Organizational structure........................................................................... 21
3.2. Strategy roadmap.............................................................................................. 21
3.2.1. Year 1 - Market entry and brand establishment........................................22
3.2.2. Year 2 - Expansion and Customer Engagement....................................... 23
3.2.3. Year 3 - Consolidation and Growth Preparation...................................... 24
REFERENCES
 LIST OF ABBREVIATIONS

Association of Southeast Asian Nations ASEAN

Compound Annual Growth Rate CAGR

Corporate Social Responsibility CSR

Domino's Pizza Enterprises DPE

Food and Beverage F&B

Foreign Direct Investment FDI

Gross Domestic Product GDP

Human Resource HR

Intellectual Property IP

Key Performance Indicator KPI

Standard Operating Procedures SOPs

Start-up Tax Exemption Scheme SUTE

 LIST OF FIGURES AND TABLES
Figure 1.1: Pizza 4P’s finance growth rate from 2019 to 2023....................................... 2
Figure 1.2: Pizza 4P's locally-sourced ingredient expenditure........................................4
Figure 1.3: Pizza 4P’s Voluntary Turnover Rate............................................................. 6
Figure 3.1: Suggested functional organizational structure............................................ 21
Figure 3.2: Three-year business roadmap of Pizza 4P’s ...............................................22

Table 1.1: Pizza 4P's strength in accordance with its value chain...................................2
Table 1.2: Pizza 4P's weakness in accordance with its value chain................................ 4
Table 2.1: Assessment Score......................................................................................... 11
Table 2.2: BERI model key data for assessment........................................................... 12
Table 2.3: BERI model assessment score......................................................................15
Table 2.4: Pizza 4P’s competitiveness...........................................................................16
 1

EXECUTIVE SUMMARY
This report analyzes the internationalization potential of Pizza 4P’s through the
lens of its value chain and identifies the most suitable target market for expansion.
First, the company’s value chain analysis reveals strengths in its established
locally-sourced product line and strong brand recognition, but weaknesses in catering
to diverse international tastes, high operational costs and increasing turnover rate.
Second, Pizza 4P's international expansion should prioritize Southeast Asia.
This region boasts cultural and culinary similarities to Vietnam, a growing food and
beverage (F&B) industry ripe for opportunity. In this region, Singapore should be
selected for the next 3-year expansion plan.
Third, when entering Singapore, the company should entail the multidomestic
strategy with foreign subsidiary entry mode. Furthermore, the functional
organizational structure is recommended for long-term growth in the new market. The
strategy should be carried out in 3 years.
This report provides a solid foundation for Pizza 4P's international expansion
strategy. Further research and analysis are recommended to refine the plan and ensure
a smooth entry into the chosen market.
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CHAPTER 1: ANALYSIS OF PIZZA 4P’S

1.1. Overview of Pizza 4P’s
Pizza 4P's, run by PIZZA 4PS CORP, is a restaurant chain founded in Vietnam,
blending Italian and Japanese flavors. Since 2011, they have grown to 39 restaurants
spanning 4 countries. In Vietnam alone, Pizza 4P's has expanded to 20 locations. The
company’s philosophy is to create joyful and peaceful dining experiences through
delicious food. This emphasizes 4 key passions: artisanal cheese, farm-to-table food,
thoughtful design, and hospitality inspired by the Japanese concept of “omotenashi”​.
By the end of 2023, their equity exceeded VND 267 billion, a substantial 77%
increase from 2022. Standing at 115.3 billion VND, their post-tax profit surged over
38.5% compared to the previous year, more than doubling pre-pandemic figures.
Figure 1.1: Pizza 4P’s finance growth rate from 2019 to 2023

Source: Pizza 4P’s Sustainability Report, 2024

Pizza 4P’s is highly regarded for its quality food and service, attracting both
locals and tourists in Vietnam. Their commitment to quality, freshness, and peaceful
dining experience has contributed to their success and recognition.
1.2. Strengths
Table 1.1: Pizza 4P's strength in accordance with its value chain
Firm infrastructure
- Strong governance and alignment with sustainability goals
- Investment in sustainable infrastructure and store designs

Support Human resource (HR) management

Margin
activity - Comprehensive recruitment and training programs
- Diversity and inclusion promote a positive workplace.
- Employee benefits and career development opportunities

Technology development
 3

- Advanced technology for operation and customer experience

- Innovative food production ensure high quality and efficiency

Procurement
- Sourcing of sustainable, high-quality ingredients
- Strong relationships with local farmers and suppliers

Inbound Operation Outbound Marketing Service

logistic - High food logistics and sales - Customer
- High safety and - Timely - Strong service in
Primary quality, quality delivery branding Omotenashi
activities local - Culture systems engagement principles
ingredients enhances - Multiple - Focus on - Regular
- Efficient operational fulfillment customer collection of
SCM efficiency options retention feedback

Source: Computed by the authors

1.2.1. Support activities
Pizza 4P's focus on sustainability is evident in its firm infrastructure (2023
Sustainability Report). The leadership integrates sustainability into long-term
strategies, fostering a culture of environmental and social responsibility. In HR
management, comprehensive recruitment and training programs ensure that new
employees meet high standards. The company promotes diversity and inclusion to
cultivate a welcoming atmosphere for employees. Employee benefits and career
development initiatives reflect a commitment to long-term staff growth. Pizza 4P's
uses technology to enhance operational efficiency and customer experience. Advanced
technologies streamline processes, reducing bottlenecks and ensuring efficient
delivery. Innovations in food production, including automated systems and advanced
cooking techniques, ensure consistent quality and efficiency. Data analytics provide
valuable insights for decision-making, enabling an optimized inventory management,
and refined marketing strategies. Pizza 4P's prioritizes sustainable and high-quality
ingredient sourcing, aligning with their brand values and commitment to excellence.
Through strong relationships with local farmers and suppliers, the company ensures a
reliable supply chain while fostering community ties.
1.2.2. Primary activities
The firm ensures freshness and locality by high-quality, local ingredients. The
firm built their own cheese factory to ensure quality control and collaborated with
organic farms to guarantee fresh ingredients, offering a farm-to-table dining
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experience. In 2023, the percentage of Pizza 4P's local sourcing for Vietnam is 59%
and over 83% of suppliers based locally in Japan.
Figure 1.2: Pizza 4P's locally-sourced ingredient expenditure

Source: Pizza 4P's Sustainability Report 2023

Pizza 4P's operations adhere to strict food safety and quality standards. In 2023,
they conducted 24 training sessions on food safety and achieved 100% licenses for all
stores from the Food Safety Management Authority. The company continually updates
its policies and Standard Operating Procedures (SOPs). This approach helps teams
better understand and address risks. In outbound logistics, Pizza 4P's established
efficient delivery and order systems for timely service and cater to diverse customer
needs. Advanced delivery systems facilitate prompt and reliable service, while
state-of-the-art order processing systems optimize workflow, minimizing errors and
delays. Pizza 4P's leverages strong branding and digital engagement in their marketing
and sales efforts, fostering customer loyalty. Through social platforms, they effectively
engage with customers and promote their brand, resulting in significant increases in
followers and engagement rates. Pizza 4P's enhances the dining experience through
exceptional customer service, underpinned by staff training in Omotenashi principles.
Regular collection of feedback, including post-purchase surveys and social media
interactions, are applied to identify areas for improvements. This helps Pizza 4P's
maintain high standards and adapt to customer preferences..
1.3. Weaknesses
Table 1.2: Pizza 4P's weakness in accordance with its value chain
Firm infrastructure
- Balancing sustainability goals with profitability is challenging.
- Initial costs for sustainable infrastructure can be high.

Support Human resource management Margin

activity - High training and development costs.
- Retaining talent in a competitive industry is challenging.
- Diverse workforce requires tailored management.
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Technology development
- Rapid tech advancements require updates and investments.
- Dependence on technology can lead to errors
- Data analytics requires skilled personnel and resources.

Procurement
- Sustainable procurement can limit supplier options and raise costs.
- Supplier compliance with high standards can be challenging.
- Supply chain risks (e.g., price volatility).

Inbound Operation Outbound Marketing Service

logistic - Consistent logistics and sales - Requires
- Supply quality and - Significant - Competition continuous
chain safety costs in in the F&B training
disruptions standards infrastructu industry - Increasing
Primary if local across all re, labor, requires turnover in
activity issues arise locations is and constant F&B.
- Limited challenging operations marketing - Have to
scalability - High - Logistics innovation. handle
without local operational complexity - Marketing negative
relations. costs rises with costs can be feedback
expansion substantial promptly

Source: Computed by the authors

1.3.1. Support activities
Balancing sustainability with profitability poses a challenge for Pizza 4P's firm
infrastructure, as it requires significant financial investment and impacts short-term
profitability due to high initial costs for sustainable infrastructure and store designs.
Retaining talent in the competitive F&B industry is challenging, as employees have
many opportunities and the turnover rate at Pizza 4P's is rising. Managing a young and
diverse workforce with varied needs and expectations requires tailored management
approaches to enhance productivity (Pizza 4P’s Sustainability Report, 2024).
 6

Figure 1.3: Pizza 4P’s Voluntary Turnover Rate

Source: Pizza 4P’s Sustainability Report 2023

In technology development, rapid advancements demand continuous updates
and investments, straining financial resources. Dependence on technology introduces
vulnerabilities like cyberattacks and technical failures. Data analytics demand skilled
personnel and resources, challenging infrastructure maintenance. Pizza 4P's sourcing
ingredients locally presents challenges in global expansion, including supplier
limitations and potential cost increases. Supply chain risks like price volatility and
ingredient availability can disrupt operations and product consistency, leading to
complexities of maintaining a sustainability-focused strategy.
1.3.2. Primary activities
Reliance on local suppliers in inbound logistics poses risks of supply chain
disruptions, such as ingredient availability issues due to political instability. Rapid
expansion into new regions creates scalability challenges, requiring the establishment
of relationships with local suppliers that meet quality and sustainability standards. This
can impact consistent product quality and operational efficiency across locations.
Pizza 4P's commitment to sustainability in firm infrastructure is strong, but
operational weaknesses exist. Ensuring consistent quality and safety standards across
locations is crucial for expansion, as disparities risk customer satisfaction and brand
reputation. Negative reviews from Indian diners comparing the quality between the
Vietnam branch and other locations highlight this concern.
High operational costs strain financial resources, requiring strategic solutions to
streamline operations and optimize resource allocation. Expanding into new markets
through delivery hubs incurs significant expenses, while investments in technology
and marketing are essential for efficiency, customer satisfaction, and long-term
growth. Constant marketing innovation is crucial to maintaining a competitive edge
amid evolving local trends.
 7

Upholding high service standards is crucial for Pizza 4P's amid increasing
turnover rates in the F&B industry. Continuous staff development is vital, but turnover
can lead to inconsistencies in customer experiences. Promptly addressing negative
feedback is essential for safeguarding the company's reputation and fostering brand
loyalty in the competitive F&B landscape.
1.4. International Strategy
Pizza 4P’s aligns well with a multidomestic strategy in international business.
They decentralize operations, allowing subsidiaries to operate independently and adapt
products and services to local market needs. This approach enhances local
responsiveness, reduces the need for centralized support, and fosters community
resonance. By incorporating local ingredients, sourcing from organic farms, and
engaging in sustainability initiatives, Pizza 4P's builds strong brand loyalty. Although
there is a potential for inefficiencies from replication, the company maintains brand
identity and high-quality standards. Overall, Pizza 4P's exhibits a multidomestic
strategy with a focus on local responsiveness.
 8

CHAPTER 2: INTERNATIONAL MARKET SELECTION

2.1. Regional macro screening – CAGE model

In an interview with BrandsVietnam, Pizza 4P's founder, Yosuke, expressed
ambitions to expand the chain to all capital cities in Southeast Asia, followed by
Tokyo, London, and New York (BrandsVietnam, 2019). Currently, Pizza 4P's has 39
full-service dining establishments across Vietnam, Cambodia, India, and Japan (Pizza
4P's).
The authors choose to focus on Asia for their next expansion due to the rapid
growth of the Asian F&B industry, with a CAGR of 11.26% and a projected market
volume of $1.57 billion by 2027 (Statista). Additionally, being headquartered in
Vietnam and having an established presence in various Asian countries, Pizza 4P's has
a good understanding of the local culture and consumer preferences.
Based on these considerations, the authors identified 3 potential regions for
Pizza 4P's expansion: Southeast Asia, East Asia, and South Asia. The following table
will evaluate these 3 regions to determine the best one for Pizza 4P's to enter.

2.1.1. Cultural distance

Similarities in culture to home country

South Southeast Asian countries share a significant cultural and historical affinity
east with Vietnam. Many countries (e.g. Thailand, Laos,...) have similar
Asia culinary traditions, use similar ingredients, and share dining customs.

East East Asia, including China, Japan, and South Korea, shares some cultural
Asia similarities with Vietnam, particularly in rice and certain cooking
techniques. However, each country also has its distinct culinary identity.

South South Asia has distinct cultural and culinary traditions. The region’s
Asia predominant use of spices, different staple foods, and unique dining
customs create a larger cultural gap compared to Vietnam.

Differences in preferences/standards

South Dining preferences in Southeast Asia are relatively similar to those in

east Vietnam. The region’s acceptance of diverse flavors and high standards for
Asia fresh ingredients align well with Pizza 4P’s offerings.

East East Asia has high standards for quality dining and a growing preference
 9

Asia for diverse cuisines, including artisanal and fusion foods. This aligns well
with Pizza 4P’s focus on quality and unique culinary experiences.

South South Asia has distinct dietary habits, with a preference for spicier foods
Asia and different dietary standards, which poses a challenge for Pizza 4P’s.

2.1.2. Administrative distance

FDI (Relationships with other countries)

South Southeast Asia, particularly ASEAN countries, have strong FDI

east relationships with Vietnam. Regional integration reduces barriers to trade
Asia and investment, facilitating FDI.

East East Asia, including countries like China, Japan, and South Korea, has
Asia strong FDI ties with Vietnam. These countries have established investment
agreements and strong economic relations.

South In South Asia, while countries like India have made significant strides in
Asia improving FDI policies, others still pose challenges due to political and
economic instability.

Governing system/Complexity of regulations

South Southeast Asian countries often share similar regulatory frameworks with
east Vietnam due to ASEAN harmonization efforts. However, specific countries
Asia may still have unique regulations.

East East Asia has well-developed and transparent regulatory frameworks.

Asia While there are differences in the governing systems of China, Japan, and
South Korea, regulations are generally clear, although sometimes stringent,
particularly in areas like food safety and labor laws.

South South Asia presents a more complex regulatory environment. Some

Asia countries have bureaucratic and less transparent processes.

Intellectual property

South In Southeast Asia, some countries have robust IP laws aligned with
east international standards, while others have weaker enforcement, posing
 10

Asia risks for proprietary recipes and brand identity.

East East Asia typically has strong intellectual property protections, particularly
Asia in Japan and South Korea. China has also improved its IP laws
significantly in recent years, though enforcement can still be inconsistent.

South South Asia generally has weaker intellectual property protection compared
Asia to other regions.

2.1.3. Geographic distance

Geographic Distance

South Southeast Asian countries are close to Vietnam. This proximity

-east facilitates easier and cheaper transportation of goods and personnel, also
Asia enabling better oversight and management of new outlets.

East East Asia, comprising countries like China, Japan, and South Korea, is
Asia moderately distant from Vietnam. While transportation costs are higher
than within Southeast Asia, efficient transportation networks in these
countries mitigate some logistical issues.

South South Asian countries are farther from Vietnam compared to Southeast
Asia Asia. This distance can lead to high logistic cost and challenges.

Availabilities of key ingredients

South Southeast Asia has a climate and agricultural environment similar to

east Vietnam, ensuring the availability of key ingredients like fresh herbs,
Asia vegetables, and seafood.

East East Asia has diverse climates, allowing for the availability of a wide
Asia range of ingredients. However, specific ingredients integral to
Vietnamese cuisine might need to be imported.

South The climate and agricultural conditions in South Asia differ significantly
Asia from Vietnam.
 11

2.1.4. Economic distance

GDP growth

Southeast Southeast Asia has experienced robust GDP growth, driven by

Asia countries like Vietnam, Indonesia, and the Philippines. The region’s
economy supports consumer spending and market expansion.

East Asia In East Asia, China continues to grow rapidly, while Japan and South
Korea have more stable but slower growth. The region’s economic
stability and growth potential are strong

South South Asia, particularly India, has seen significant GDP growth,
Asia though other countries like Pakistan and Bangladesh have more
variable growth rates.

Income levels

Southeast Countries like Singapore and Malaysia have high income levels, while
Asia others like Vietnam and Indonesia have a growing middle class.

East Asia East Asia boasts high income levels in countries like Japan, South
Korea, and urban areas of China. These markets have strong
purchasing power, supporting premium brands and dining experiences.

South South Asia has lower overall income levels compared to others. India’s
Asia burgeoning middle class presents opportunities, but widespread
poverty in other countries limits market potential.

2.1.5. CAGE Assessment

Table 2.1: Assessment Score

Weight Score of South Score of Score of
East Asia East Asia South Asia

Cultural distance 7 5 4 3

Administrative distance 5 4 4 2
 12

Geographic distance 3 5 4 3

Economic distance 5 4 5 4

Total score 20 90/100 85/100 60/100

Among the potential expansion regions for Pizza 4P’s, Southeast Asia emerges
as the most compelling choice. Southeast Asia offers a synergistic combination of
existing market presence, a growing consumer base with favorable demographics, and
a digitally inclined population. The region's highest score also reflects the alignment of
these factors with Pizza 4P's business model and expansion goals.
2.2. Countries selection – BERI Model
Among the countries in the selected region - South-East Asia, we use the BERI
model to investigate 2 specific countries: Singapore and Thailand. The reasons for
choosing these 2 countries are due to their positive economic outlook, strong
purchasing power and local population's openness to foreign cuisines.

Table 2.2: BERI model key data for assessment

Criteria Singapore Thailand

Political 1.5 points - 0.4 points

Stability
(World
Bank, 2022)

Economic - GDP: $466.79 (nominal, 2022) - GDP: $495.42 (nominal, 2022)

growth - GDP per capita: 82,807.6 - GDP per capita: 6,910.0 (2022)
(World (2022) - GDP growth: 2.6 % (2022)
Bank, 2022) - GDP growth: 3.6 % (2022)

Labour - Labour Costs: 119 pts (2023) - Labour Costs: 101 pts (2023)
(Trading - Productivity: 119 pts (2023) - Productivity: 119 pts (2023)
Economics)

Inflation 6.1 % 6.1 %

rate (World
Bank, 2023)

Short-term Short-term external debt value Short-term external debt value

 13

credit was $1,297.1 billion in 12/2023, stood at $79.2 billion in 12/2023,

(CEICdata. compared to $1,247.5 billion in compared to $79.1 billion in the
com, 2023) the previous quarter. previous quarter.

Venture From 2021 to 2022, the total deal Thailand had received a total of
Capital value dropped by only 3% to $129 million in venture capital
$10.99 billion. Singapore, funding in 2022. The figures portray
nonetheless, was still the top a growing trend in venture capital
recipient of venture capital funding in Thailand since a few
investments in Southeast Asia. years ago. (Statista, 2023)

Attitude Singapore's investment market is Thailand's investment landscape has

towards very attractive. Ranked 14th in become complex due to political
FDI the Global Opportunity Index by instability and economic challenges.
the Milken Institute, Singapore Ongoing unrest presents risks for
offers a thriving economy, future investments. The pandemic
business-friendly environment, and political crises further strained
and strong legal system ensuring the economy and investment
liquidity, asset protection, and climate. However, there are efforts
investor rights. In 2022, to enhance FDI, particularly in the
Singapore became the world’s services sector, to clear barriers and
third-largest recipient of FDI. streamline procedures for investors.

Balance of Singapore maintains a robust and Thailand’s balance of payments has

payments positive balance of payments. As been more variable. In the fourth
of the fourth quarter of 2023, it quarter of 2023, Thailand reported a
stood at S$13,193.4 million, with current account surplus of
a current account balance of US$2,010.01 million. However, the
S$34,411.4 million. Singapore’s services sector showed a deficit,
official foreign reserves in 3/2024 with services receipts at
were$368,494.3 million, showing US$14,525.18 million and payments
a strong external position. at US$16,492.16 million.

Bureaucratic Singapore ranks high in efficient Thailand's bureaucracy faces

delays bureaucracy, with streamlined challenges with delays and red tape,
administrative procedures and ranking lower than Malaysia,
minimal red tape. Scoring 1.11 on Singapore, and Taiwan in the quality
 14

the PERC survey, Singapore of bureaucracy index. However,

experiences minimal bureaucratic efforts to improve governance and
delays due to expert civil reduce bureaucratic delays, such as
servants, anti-corruption the "Hacking the Bureaucracy"
measures, and strong legal initiative, are underway.
framework.

Communic ➤ Phone: Singapore has one of ➤ Phone: Thailand also has a high
ations: the highest mobile phone mobile phone penetration rate.
phone, fax, penetration rates in the world. ➤ Fax: Fax usage in Thailand is
internet ➤ Fax: Online fax services are minimal among households, with a
access available for businesses in reported share of 0.9% in 2018.
Singapore, allowing users to send ➤ Internet Access: Internet
and receive faxes without a penetration in Thailand is growing,
physical fax machine. with efforts to expand broadband
➤ Internet Access: Singapore and mobile internet access across
ranks highly on the Global the country.
Connectivity Index.

Local Singapore's business environment Partnering with a Thai national in

management supports local management and Thailand is needed due to
and partner partnerships, with flexible restrictions on foreign ownership,
regulations regarding the typically limited to 49% in Thai
appointment of local managers companies. Due diligence, clear
and the requirement of a local communication, and understanding
resident as an authorized of local labor laws are essential
representative for companies. when partnering in Thailand.

Professional ➤ Professional Services: ➤ Professional Services: Thailand’s

services Singapore’s professional services professional services sector is
and are robust and diverse, offering growing, with a focus on
contractors expertise in areas such as finance, engineering, architecture, and
law and engineering. project management.
➤ Contractors: The construction ➤ Contractors: Thailand has a mix
sector is supported by a range of of local and international
contractors, from large firms to contractors in various construction
 15

specialized service providers. and development projects.

Based on the given information, we assess each market in the table below.

Table 2.3: BERI model assessment score

Criteria Weights Score of Score of BERI index BERI index
Singapore Thailand of Singapore of Thailand

Political Stability 3 5 3 15 9

Economic growth 3 4 3 12 9

Inflation rate 1 4 4 4 4

Labour 2 4 4 8 4

Short-term credit 1 3 4 3 4

Venture capital 1 5 3 5 3

Attitude towards FDI 3 4 3 12 9

Balance of payments 2 4 3 8 6

Bureaucratic delays 1 5 2 5 2

Communications 1 5 4 5 4

Local management 1 3 2 3 2
and partner

Professional services 1 5 4 5 4
and contractors

Total 20 X5 (max) 85/100 60/100

Among the market countries in South-east Asia, Singapore and Thailand have
the great ability of the internationalization of the Pizza 4Ps. Based on the BERI model,
Singapore achieved 85 points out of 100, indicating the country as an advanced
economy characterized by favorable conditions for investors. Conversely, Thailand is
an immature economy with an investment potential as shown by its score of 60 out of
100. (Hollensen, 2008; Krasnov et al., 2002).
 16

2.3. Competitive strengths

When entering the Singaporean market, Pizza 4Ps will have to compete against
2 biggest competitors: Pizza Hut and Domino’s Pizza. To assess Pizza 4P’s
competitiveness, the authors conducted 2 tables below.

Table 2.4: Pizza 4P’s competitiveness

Product quality (25%)

Pizza 4P’s Their product is unique in 3 points: Blend of Japanese and

Point: 4 Italian cuisines, half-half format and baked by wood-fired oven.

Pizza Hut Despite the perception of their pizza’s "medium quality", many
Point: 3 customers prefer other menu items such as pasta and chicken.

Domino’s pizza Based on Tripadvisor and Burpple, customers often feel

Point: 3 compelled to choose "safe options" on the menu due to concerns
about the overall quality of many menu varieties.

Price (10%)

Pizza 4P’s S$5 - S$26

Point: 4

Pizza Hut S$12 - S$30 (Bundle excluded)

Point: 4

Domino’s pizza S$12 - S$32 (Bundle excluded)

Point: 4

Brand marketing & Communication (15%)

Pizza 4P’s Their target consumer is middle-high income youngsters. The

Point: 3 brand focuses on customer reviews to build brand love.
However, they did not have any outstanding campaigns.

Pizza Hut They have kept a dominant online search interest in Singapore
Point: 5 since 2018 to present. Their target consumer is dual income
families who desire a comfortable dine-in. Lately, they have
partnered with global marketing agency TEAM LEWIS for
 17

public relations and social media content creation.

Domino’s pizza They ranked second in online search interest in Singapore by

Point: 5 2023. They target kids and teenagers. For example, they
recently gained attention by covering iconic landmarks in
Singapore with cheesy lava.

Customer service (20%)

Pizza 4P’s The average score on Tripadvisor for Pizza 4Ps service is 4.5/5
Point: 4 thanks to staff’s professionalism and unique sensory experience.

Pizza Hut Based on Tripadvisor, customers have expressed concerns about

Point: 4 Pizza Hut Singapore regarding issues such as a laggy online
ordering system and delays in service.

Domino’s pizza Domino’s Pizza received a lot of bad reviews on Tripadvisor.

Point: 3

Restaurant ambiance (20%)

Pizza 4P’s Pizza 4Ps is famous for unique and spacious dining spaces.
Point: 5

Pizza Hut Pizza Hut branches are located in malls. Therefore, the
Point: 4 restaurants are spacious with full amenities. However, the
design is rather standard, similar to other fast food outlets

Domino’s pizza Domino Pizza branches are located in malls. Therefore, the
Point: 4 restaurants are spacious with full amenities. However, the
design is rather standard, similar to other fast food outlets

Financial resource (10%)

Pizza 4P’s In 2023, Pizza 4P's saw a profit increase of over 38% to around
Point: 4 115 bil VND, the highest since 2018. The company's equity
reached over 267 billion VND, a 77% increase compared to the
previous year. Debt obligations decreased to around 208 billion
VND, with bond debt fully cleared.
 18

Pizza Hut In 2023, Pizza Hut Singapore’s revenue reached $4 million,

Point: 5 indicating strong financial growth.

Domino’s pizza In 2022, Domino’s Pizza Singapore was acquired by Domino's

Point: 5 Pizza Enterprises (DPE), providing increased financial
resources, access to economies of scale.

Average total

Pizza 4P’s 4.05

Pizza Hut 3.9

Domino’s pizza 3.7

With the Likert-scale assessment above, we conclude that Pizza 4P’s is fully
able to compete in the Singaporean market.
 19

CHAPTER 3: GO-TO-MARKET STRATEGY

3.1. Market entry mode and organizational structure

3.1.1. Market entry mode - Wholly-owned subsidiary
Entering the Singapore market by the entry mode of a wholly owned subsidiary
can be advantageous for Pizza 4P’s.
3.1.1.1. Protection of technology
By establishing a wholly owned subsidiary, Pizza 4P's can ensure that its unique
technologies, such as proprietary cooking methods and food safety standards, remain
protected. This is crucial in a market like Singapore, where hygiene and food safety
are top priorities. While competitors like Domino's and Pizza Hut have faced criticism
for lapses in food safety, Pizza 4P's leverages advanced technologies like AI and IoT
to consistently maintain high standards​(Viettimes, 2021)​. A wholly-owned subsidiary
in Singapore grants them complete operational control and ability to differentiate
themselves by providing high-quality, safe dining experiences without fear of it being
replicated by local partners.
3.1.1.2. Ability to engage in global strategic coordination
A wholly-owned subsidiary allows Pizza 4P's to maintain global consistency.
This is crucial for maintaining quality standards and executing coordinated marketing
campaigns. In Vietnam, Pizza 4P's has been successful in promoting a farm-to-table
dining experience. By owning the subsidiary in Singapore, they can replicate this
model and coordinate marketing strategies that highlight their commitment to
sustainability and high-quality ingredients across both markets. Pizza 4P's core values
align perfectly with Singapore's F&B principle, attracting both local consumers
seeking familiar experiences and business travelers expecting consistent quality.
Overall, a subsidiary strengthens brand reputation and fosters customer loyalty in the
new market.
3.1.1.3. Ability to realize location and experience economies
Establishing a wholly owned subsidiary enables Pizza 4P's to optimize
operational efficiencies and economies of scale. They can better manage supply
chains, streamline operations, and leverage their experience to reduce costs and
enhance service delivery. In their existing markets, Pizza 4P's has streamlined their
supply chain to ensure fresh, high-quality ingredients. By having full control over their
Singapore operations, they can use their experience to efficiently source local
ingredients and manage logistics, similar to their successful model in Vietnam.
According to the F&B Insight Report 2022 by Incite, Singaporeans are interested in
 20

localized F&B experiences. With a wholly owned subsidiary, Pizza 4P's can develop a
Singapore-specific menu to attract and retain customers, replicating successful
localization strategies used in previous branches.
3.1.1.4. Singapore’s incentives
Singapore attracts foreign businesses with its low corporate tax rate of 17% and
various tax benefits (Ministry of Finance Singapore, 2023). One key incentive is the
Start-up Tax Exemption Scheme (SUTE), which exempts up to S$200,000 of
chargeable income over the first three years of operation. This includes a 100%
exemption on the first S$100,000 and a 50% exemption on the next S$200,000 (Inland
Revenue Authority of Singapore, 2024). Subsidiary companies in Singapore can also
enjoy these benefits, as they are usually treated as resident entities under the single-tier
income tax system. Moreover, the Singapore Companies Act allows 100% foreign
shareholding for subsidiary companies, requiring at least one local resident director for
incorporation (Krasovskiy, 2023). Directors need not be shareholders, allowing foreign
companies operational flexibility. Importantly, the liability of a Singapore subsidiary is
limited to its share capital, not the parent company's assets, ensuring that the foreign
parent company is not held liable for the subsidiary's debts and does not need to
declare its assets.
However, there are some potential disadvantages for Pizza 4P's to enter into the
Singapore market as a wholly-owned subsidiary that needs consideration.
3.1.1.5. High cost
While setting up a wholly owned subsidiary involves significant initial
investment, Pizza 4P's has the financial resources and strategic commitment to sustain
these costs. The long-term benefits of maintaining complete control can outweigh the
initial expenses. The high costs associated with setting up in Singapore are justified by
the potential for high returns in a lucrative market known for its high consumer
spending on dining and gourmet experiences.
3.1.1.6. High risk
Although there is inherent risk in establishing a wholly owned subsidiary, Pizza
4P's can mitigate these risks through thorough market research and leveraging their
successful business model. Their previous expansions and operational efficiencies can
help reduce uncertainties. Pizza 4P's has successfully navigated risks in other markets
through careful planning and strategic execution. Their established brand reputation
and operational expertise provide a strong foundation for mitigating risks in Singapore.
In conclusion, establishing a wholly owned subsidiary allows Pizza 4P's to
protect its proprietary technologies, ensure strategic alignment with its global
 21

operations, and realize economies of scale by fully controlling its supply chain and
operational processes. While the initial cost and risk are significant, Pizza 4P's proven
track record and strategic capabilities position them well to manage these challenges
effectively, making this entry mode a suitable choice for their expansion into the
Singapore market.
3.1.2. Organizational structure
To establish a solid foothold and pave the way for future growth in Singapore,
Pizza 4P's should adopt a functional organizational structure. This structure, as
illustrated in Figure 3.1, outlines the essential departments for a successful new market
launch.
Figure 3.1: Suggested functional organizational structure

The core departments focus on key operational areas such as Operation,

Marketing, Human Resources, Supply Chain,.. which ensures a well-rounded
foundation for the business. Additionally, depending on the specific market and its
characteristics, it's always advisable to be flexible and add additional specialized
departments in the business to tackle specific issues. For example, for the case of
Singapore, a multinational/multicultural country, it might be advisable to have a
dedicated Cultural Advisory department, which focuses solely on cultural and
socio-economic issues, especially when being socially responsible and politically
literate are characteristics valued by consumers.
3.2. Strategy roadmap
To facilitate its entry into the Singapore market, the authors has developed a
thorough three-year roadmap with specific objectives for Pizza 4P's. This
comprehensive plan consists of strategic steps and milestones critical for achieving a
successful and sustainable presence in this target market.
 22

Figure 3.2: Three-year business roadmap of Pizza 4P’s

From these main goals, we delve into the key actions, details for each action
and the specific KPI for each activities

3.2.1. Year 1 - Market entry and brand establishment

Key actions Details KPI

Market 1. Conduct thorough market research to Secure leases for

research understand consumer preferences, competitive at least 2 prime
and location landscape, and potential demand. locations
selection 2. Identify prime locations for the first outlets,
focusing on high-traffic areas such as shopping
malls, business districts, and popular dining areas.

Regulatory 1. Ensure compliance with Singapore’s food 100%

compliance safety, health regulations, and business laws. compliance with
2. Secure necessary licenses and permits to local regulations
operate.

Partnerships 1. Establish relationships with local suppliers to Establish

and supply ensure a steady supply of fresh ingredients. contracts with at
chain setup 2. Partner with logistics providers for efficient least 3 key local
distribution and inventory management. suppliers

Brand 1. Launch a comprehensive marketing campaign 10,000 social

positioning to introduce the brand. media followers
 23

and 3. Utilize social media, local influencers, and food and 5,000
marketing bloggers to create buzz. engagements
2. Highlight Pizza 4P’s unique selling points, such
as the farm-to-table concept, quality ingredients,
and artisanal pizzas.

Hiring and 1. Recruit a skilled local team, including Hire at least 30

training management, chefs, and service staff. personnels and 3
2. Conduct thorough training to ensure staff are training sessions
well-versed in Pizza 4P’s brand values, service before the grand
standards, and operational procedures. opening

Grand 1. Plan a grand opening event with promotions, Attract at least

opening tastings, and media coverage to attract initial 500 customers
customers. during the grand
2. Offer special deals and loyalty programs to opening week
encourage repeat visits and customer retention.

3.2.2. Year 2 - Expansion and Customer Engagement

Key actions Details KPI

Expand 1. Open additional outlets in strategic 1. Open at least 1

outlet locations based on the performance of the additional outlet.
network initial outlets and market demand 2. Each new outlet
analysis. breaks even within 6
2. Consider diverse formats such as months.
flagship stores, smaller express outlets,
and food court locations.

Customer 1. Implement loyalty programs to reward Enroll at least 1,000

engagement repeat customers and encourage members in the loyalty
and loyalty word-of-mouth referrals. program within 6
programs 2. Launch seasonal promotions, months.
limited-time offers, and special events to
keep customers engaged.

Local menu 1. Based on customer feedback, introduce 1. Introduce at least 3

 24

adaptation menu items tailored to local tastes while new locally-inspired

maintaining the core offerings. menu items.
2. Experiment with local ingredients and 2. Achieve a customer
fusion dishes to cater to diverse satisfaction score of
preferences. 85%+ for new items.

Digital 1. Strengthen online presence through an 1. Partner with at least 2

presence optimized website and active social food delivery platforms
and delivery media engagement. within 3 months.
services 2. Partner with food delivery platforms to 2. Generate 20% of total
offer online ordering and home delivery sales through online and
services, catering to the growing demand delivery by year-end.
for convenience.

Operational 1. Continuously monitor and improve 1. Reduce average

efficiency operational processes to enhance service time by 15%.
efficiency and reduce costs. 2. Achieve an inventory
2. Implement inventory management turnover ratio of at least
systems to minimize waste and ensure 6.
consistent quality.

3.2.3. Year 3 - Consolidation and Growth Preparation

Key actions Details KPI

Brand 1. Establish Pizza 4P’s as a leading 1. Participate in at least 4

reputation and brand in the pizza market through community events or
community continuous innovation and quality CSR activities within the
engagement enhancement. year.
2. Engage in corporate social 2. Achieve positive
responsibility (CSR) activities and media coverage in at
community initiatives to build a least 3 major local
positive brand image. publications.

Customer 1. Invest in technology to enhance the 1. Launch a mobile app

experience customer experience (e.g. mobile apps for ordering and
enhancement , customer feedback systems, feedback within 6
personalized marketing,...) months.
 25

2. Focus on creating memorable 2. Achieve a customer

in-store experiences through satisfaction score of 90%
exceptional service and ambiance. or higher on the app.

Sustainability 1. Strengthen the farm-to-table concept 1. Source at least 30% of

and by sourcing more local and sustainable ingredients from local
farm-to-table ingredients. and sustainable suppliers
focus by year-end.

Explore new 1. Consider introducing catering 1. Launch catering

revenue services for corporate events and services within 6
streams private parties. months.
2. Explore opportunities to collaborate 2. Generate at least 10%
with local chefs/food brands to create of total revenue from
exclusive products. catering and special
events by year-end.

Performance 1. Conduct regular performance 1. Conduct bi-annual

review and reviews to assess the success of the performance reviews and
strategic strategy and make necessary strategy assessments.
adjustments adjustments. 2. Implement at least 2
2. Gather and analyze customer major strategic
feedback to continuously improve adjustments based on
offerings and services. performance data.

In conclusion, entering and establishing Pizza 4P's in Singapore over the first
three years involves strategic market entry, expansion, and consolidation activities. By
focusing on market research, brand positioning, customer engagement, operational
efficiency, and sustainability, Pizza 4P's can successfully penetrate the Singapore
market and pave the way for long-term growth in the region.
 26

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