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Proposed Strategy & Entry Mode for Alfamart Launch in Vietnam (Essay Sample)


Stragies that should be incoporated by alfamart to secure the vietnamese market


Alfamart is several stores put together in a franchise chain. With its originality and headquarters being in Indonesia. The business company has managed to secure over ten thousand stores across the Philippines as well as Indonesia. Alfamart started in Indonesia's capital Jakarta in 1989, with just trading and distribution as the key activities, with Djoko Susanto as the company's president. The business stores have since expanded, increasing tremendously in the number of stores across Indonesia and the Philippines. The first branches are opened at Karawaci in Banten and Trece Martires in Cavite. The strategy of market entry is very critical for matters of success of the international business company Alfamart. Emphasizes the vital role played by market entry strategy. If something goes wrong, then it might prove challenging to rekindle the success. For the Alfamart business company to launch in Vietnam, the Vietnamese market must be critically analyzed, as needs vary from place to place. The entry should be looked at to enhance the rapid growth and development of the company and as an opportunity for expansion. The entry design strategy is a way of integrating many interdependent elements. There are a variety of entry modes that Alfamart could incorporate in their entry into the Vietnamese market; contractual, investment, and exporting. Considering these main market entry modes and analyzing them using market criteria such as dissemination risk, control, flexibility and ownership, and resource commitment, the best market entry strategy can be found.[Coad “business analysis” 18] [Meyer “design of an entry strategy’12]
Control represents Alfamart’s capacity in managing its business activities such as its performance, the process of production, sales, logistic plan, and market plan. Dissemination risk represents the general awareness of Alfamart Company about the takeover that could arise from their contractual partners. Resource commitment means the ability of the company to supply the Vietnamese market with good products and resources. Ownership deals with the level of participation of the company in terms of equality. Considering these forms of market entry that could be employed by the Alfamart company launching in Vietnam, and by following these criteria in efforts to single out the best mode of market entry for the business company: The export market entry has the lowest potential in making the business a success in Vietnam, This is because if this method is employed, then Alfamart business will entirely or partially depend on their equity proportion. This method is also inclusive of low dissemination risk because they will have control of the company.On the other hand, the resource commitment will be high because of the conditions involved in setting up a subsidiary. As a result, ownership of the company will be increased. At the same

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