Saigon 3 Case Analysis
Saigon 3 has been the exclusive supplier for high-quality sanitary ware in Vietnam for twenty-one years. It can be considered as one of the leaders in this field. The company owned seven showrooms with the brand name SAIGONDEPOT located centrally in Ho Chi Minh City in order to provides the highest quality of product with reasonable price and professional customer services.
- High quality products
- Famous brand name
- Affordable price for middle class
- Strong human resource
- Awards - Low customer’s awareness in private segmentation
- Diversification strategy
- “Win- win” solutions
- Partnership and alliance - Big competitors
- Unsustainable competitive actions
Strengths …show more content…
so they may face some more cultural issues such as dissimilarities in communication process, negotiation and decision making style and organizational structure.
First of all, Saigon 3 has to face the currency risks which were occurred from China. The reason is that when they trade with China partners, they have to be aware of not only the exchange rate of US dollar there but also the RMB-Renminbi which is the official currency of People’s Republic of China. If the RMB reduce compare to the price of the US Dollar, the China partners will increase their products’ price. More specifically, every year, the exchange rate between RMB and USD reduce around 5% so Saigon 3 has to face this risk annually.
Secondly, the prepayment risk is also a usual case. For example, with the partner Saigon 3 has cooperated for a long time, they made a prepayment. However, sometimes due to the unforeseeable cases, their partners have to delay the shipment or they did not prepare enough the required products so Saigon 3 has to compensate to their …show more content…
Saigon 3 can be understood as an intermediary of Moen in Vietnamese market. Saigon 3 represent as an exclusive distributor in Vietnamese market. They imports Moen products and are available for wholesale and retail segmentation, conducts a deal from start to finish. Besides, they are adhering to the laws and rules of international trade and maintaining control over the transaction at all times. Not only that, they are responsible for the logistics management. They plans and controls the efficient, effective forward and reverse flow and storage of goods, related information between the point of origin-Moen and the point of consumption-end customers. Furthermore, in this hectic and modern business environment, Moen can think of the online intermediaries to support their business. This kind of intermediary will help them make transaction between third parties easier through allowing access, host and transmit index content. More importantly, this E-commerce intermediary has one very important characteristic. They not only connect buyers and suppliers but also they allow for internet transaction to be performed. And they do provide B2B-Business to Business as well as B2C-Business to Consumer proposals. The examples for this type of intermediaries include Amazon, Dell, eBay, and