Trung-Nguyen-Coffee

Table of Contents

How has Trung Nguyen coffee company built/expanded in market? 2

Introduction 2

Internal environments 2

Management 2

Customers 4

Suppliers 4

External factors - PESTEL Analysis 5

Economic factors 5

Social/cultural factors 6

Legal constraints 6

Core competences 6

Clear and distinctive product 7

Difficult to copy 7

Competitive advantages 7

Product differentiation 7

Service differentiation 8

Quality 8

The global perspective 8

Some restriction of Trung Nguyen and Recommendation 10

Conclusion 10

How has Trung Nguyen coffee company expanded in market?

Introduction

As the second largest export, coffee plays an important role in the Vietnamese economy (Dang, 2004). According to ICARD and Oxfam research (2002), it is cultivated mainly in the highland places like Dak Lak, Lam Dong and Gia Lai. Although coffee is a crucial commodity, it cannot bring high income because Vietnam mainly exports bean coffee. In 1996, Vietnam exported 480,000 tons but it gave 380 million dollar back. In this context, Mr. Dang Le Nguyen Vu wanted to sell a kind of coffee that could bring more benefit than bean coffee. Therefore, he and his friends established Trung Nguyen Coffee Corporation in 1996. His company produces, manufactures and sells coffee. It consists of six members and it will have ten members in the near future. Besides this, Trung Nguyen is the pioneer in franchising in Vietnam. By the end of 2010, Trung Nguyen had established over 1000 coffee shops and franchising shops in Vietnam and other countries. The most important thing is that it has expanded its market in 40 countries over the wold (Witzel, 2011). This essay will examine thoroughly Trung Nguyen Coffee, focus on the internal and external factors that have impact on the business in order to understand more about business theory.

Internal environments

Management

`First of all, Mr....