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RMIT International University Vietnam

Bachelor of Commerce Program


Assignment Cover Page

Subject Code:

ISYS2110

Subject Name:

Internet for Business

Location & Campus (SGS or HN) where you


study:
Title of Assignment:
Student name:

RMIT Vietnam
CASE STUDY 2

Giang Le s3500508
Huy Ngoc Tran- s3479879
Thanh Nguyen Nam -s3312669
Anh Hoang -s3245744

Student Number:
Teachers Name:

Mr Kevin Kuruvilla

Group Number:

G1- TEAM 5

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Assignment due date:

13/04/2015

Date of Submission:

12/04/2015

Number of pages including this one:


Word Count:

8
1100 words

Tiki.VN: E-Commerce &


Entrepreneurship in VIetnam
1) Based on Situation Analysis on E-Strategy framework, analyze
external and internal environments for Tiki.VN.
External:
While planning for operation, Tiki.vn had several concerns of external environment
related to technology, economic, legal and social factors.
1. Technology
The website was launched in the era of highly technology development, leading to
the creation of e-books. Simultaneously, according to Nkhoma, Pham and
Sriratanaviriyakul (2013), a study of Vietnams Department of Information Technology
E-Commerce in 2011 showed that more than 30 million people were accessing the
Internet in Vietnam every day, which meant the penetration rate was nearly 35 percent of
the countrys total population. These two elements are initial advantages for the founder
when considering the strategy for Tiki.vn.

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2. Economic environment
As pointed out by Nkhoma, Pham and Sriratanaviriyakul (2013), Vietnam was the
second fastest growing economy globally with the GDP of 124 million US dollars in
2012. Moreover, they also stated that the integrated economy of Vietnam had become
much more dynamic and had developed a favorable environment for e-commerce
(2013).
3. Legal environment
The release of Law on Electronic Transactions and Law on Information
Technology by Vietnam and other ASEAN countries is a component for promoting the
growth of e-commerce in Vietnam in particular as well as a holistic approach to legal
infrastructure for e-commerce in the region in general (Nkhoma, Pham and
Sriratanaviriyakul, 2013).
4. Social environment
Nkhoma, Pham and Sriratanaviriyakul (2013) stated that the number of
Vietnamese people using Internet daily is 30 million, which accounts for 30% national
population. Nevertheless, they also figured out that 60 percent of Vietnamese businesses
still did not have e-commerce websites. Another significant figured should be noticed is
that there are only 22 millions of Vietnamese people (22% of population) having bank
accounts.
Additionally, Vietnamese consumers have behaviors of spending money via
Internet on ir tickets, electronics devices, cell phones, computers, books, travel tours,
hotels, perfumes, and flowers. A research supported by VBN in 2012 indicated that in the
last decade, Vietnamese consumer was spending much more than ever on entertainment,
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high-tech consumer goods, and health and beauty products and paying a lot more
attention to their health and well-being nowadays.

Internal:
The internal resources included five factors that need to concern: Resource analysis,
portfolio analysis, SWOT analysis, demand analysis and competitor analysis. All of them
are support for developing and utilizing in Tiki.vn business process in the future.
1. Resource analysis:

By applying the model business to consumer (B2C), the company satisfied to the
customers demand directly and took the market share in Vietnamese market; in August
2012, Tiki.vn took the first position for online bookstore with three main core business:
Favorite E-Commerce Service for Favorite Delivery, and Favorite Online
Bookstore, according to Nkhoma, Pham and Sriratanaviriyakul (2013).
On the other hand, the company also succeeds on building the human resources
management system (with more than 80 employees on the office and warehouse) for
achieving the customers order on time and right place, especially free shipping,
dev.tiki.org (working 15 hours/day and 7 days a week).
Additionally, with the high investment on the developing of technological, this enterprise
totally maximizes the customers need and brings to them the user-friendly or fast
connection between the clients and company services. Especially, the company also
invests on updating the payment method for customers by adding the new function
Tikixu that is supporting and improving the payment methods for customers choice such
as credit card, debit card or e-banking, etc. It is another innovation step for Tiki.vn
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enterprise for narrowing the distance between customers and company on the B2C mode
e-business.
2. Company background:

With the small amount capital of 5,000 USD and experiences on working outside country,
Son Tran established the Tiki.vn Company on March, 19 th 2010 which brings to the
customers the trusted, saving, and easy to seeking products through internet shopping, its
so call e-commerce. The first successful achievement of Tiki.vn on August, 2012 is when
the company kept the number one position on the shopping bookstore online in Vietnam.
Furthermore, the growth up of customers demand day by day, Tiki.vn Company has to
develop to reach the point of market requirement recently. As a result, Tiki.vn was
supported the capital with 20% stake by Soichi Tajima who is a CEO and President of
Cyber Agent Ventures, Int., in March 2012.
Moreover, by catching the market trend in Vietnam, the enterprise decided to expand the
market share with improving on customer relationship, distribution and warehouse
system. Besides that, the training program and recruitment also applied to enhance the
quality of services, based on Nkhoma, Pham and Sriratanaviriyakul (2013).

2) Using 6 strategic definition, outline Tiki.VN strategies in expanding


his new product lines and suggest which product line should be
implemented first in Vietnam market along with your rationales.
1. Positioning and Differentiation strategies
Product performance excellence: Son Tran used organic search strategy, so that TIKI.VN

could attract lots of customer to go to his website. In addition, he used word-of-mouth


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(passing of information from person to person by oral communication) to create an effect


that customers could review products and leave any comments in his website
(NKHOMA, PHAM and SRIRATANAVIRIYAKUL, 2013). Moreover, the company won
an award Favourite Online Book store. This award indicates that Tiki has offered the
best product to customers.
Price performance excellence: Tiki Xu is a promotional program that allow customer to

earn points so that he or she can exchange points for discounts or purchasing for all
products in store with the cheapest price. Moreover, the company sold its products from
10% to 20% lower than printed price on the book covers (NKHOMA, PHAM and
SRIRATANAVIRIYAKUL, 2013).
Transactional excellence: Tiki Company also offer a unique selling services for
customer included immediate shipping, world shipping, Tiki plastic covers, Tiki Book
marks, and many transactional method for customers : credit cards, debit cards, bank
transfer, e-banking, and Cash on Delivery. Therefore, it actually satisfy the need of all
type of customers, even the hard one.
Relationship excellence: Besides that, Tiki.VN had been creating an event called Tiki
Fashion Icon in order to raise awareness. Moreover, the company had offered many
prices for winner such as cash, scholarship, vouchers, etc (NKHOMA, PHAM and
SRIRATANAVIRIYAKUL, 2013). In addition, TIKI.VN has offer a function about
history of customer orders for customer to review, or suggest customers to buy product
that they usually look up on the website.

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2. Suggestion for New product line


As discussed above, Tiki.vn is doing very well and planning to expand its business. A lot
of efforts need to put into this issue to select the one that suitable for Tikis strategy at this
moment. Consumer goods could be the one, since domestics consumable goods is more
and more preferred in Vietnam nowadays. Consumer goods are also predicted to be
ranked number 2 in the real consumption demand growth rate in Asia for 2011-2014. This
new product line is potential in the future. Customer will be attractive to this product due
to its highly growing demand (NKHOMA, PHAM and SRIRATANAVIRIYAKUL,
2013). However, Son needs to think of a way to fix the free shipping service for this
product line so it will suitable for sale.

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References:
NKHOMA, M., PHAM, H. and SRIRATANAVIRIYAKUL, N. 2013, Tiki.VN: Ecommerce & Entrepreneurship in Vietnam, Journal of Information Technology
Education, vol 2, no 9, pp.1-8,.

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VietnamPlus. (2009). Local brands dominate retail growth. TalkVietnam. Retrieved from
http://talkvietnam.com/2009/10/local-brands-dominate-retail-growth/- URIle1o5wm0.
Business Monitor International. (2012). Vietnam food and drink report Q1 2013.
Retrieved

fromhttp://www.marketresearch.com/Business-Monitor-International-

v304/Vietnam-Food-Drink-Q1-7226579/

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