An analysis of the market compatibility and the market entry strategy for VinFast in the German market
Merkin, Jenny (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023111329297
https://urn.fi/URN:NBN:fi:amk-2023111329297
Tiivistelmä
This thesis undertakes a comprehensive examination of the market compatibility and the subsequent market entry strategy for VinFast into the German market.
The market compatibility analysis comprises a macro-environmental analysis encompassing the political, economic, socio-cultural, technological, ecological, and legal environment of the German market. Germany is an advanced country in each of its environmental aspects and offers numerous economic advantages for companies expanding into it. Additionally, the subsequent competitive analysis reveals that VinFast possesses a competitive automobile model well-suited for this foreign market. Lastly, the case company exhibits strong internal and external elements that are expected to facilitate a successful establishment within the German automotive market. Conclusively, considering the above factors, it can be said that VinFast is compatible with the German market.
Following the market compatibility analysis, the thesis proceeds to delve into the analysis of the market entry strategy. This section outlines the strategic planning process for VinFast's entry into the German automotive market. In formulating this plan, the author looked at foreign operation modes that need to be considered in an international expansion. The paper primarily distinguishes between export modes, contractual modes, and investment equity entry modes. The chosen export mode is direct export, while licensing and contract manufacturing emerge as the most ideal contractual modes. Finally, as the ideal investment equity entry mode, a joint venture is identified as the most appropriate approach.
The outcomes of this study serve as a potential roadmap for VinFast's market expansion into Germany, enabling the company to navigate the complexities of the German market.
The market compatibility analysis comprises a macro-environmental analysis encompassing the political, economic, socio-cultural, technological, ecological, and legal environment of the German market. Germany is an advanced country in each of its environmental aspects and offers numerous economic advantages for companies expanding into it. Additionally, the subsequent competitive analysis reveals that VinFast possesses a competitive automobile model well-suited for this foreign market. Lastly, the case company exhibits strong internal and external elements that are expected to facilitate a successful establishment within the German automotive market. Conclusively, considering the above factors, it can be said that VinFast is compatible with the German market.
Following the market compatibility analysis, the thesis proceeds to delve into the analysis of the market entry strategy. This section outlines the strategic planning process for VinFast's entry into the German automotive market. In formulating this plan, the author looked at foreign operation modes that need to be considered in an international expansion. The paper primarily distinguishes between export modes, contractual modes, and investment equity entry modes. The chosen export mode is direct export, while licensing and contract manufacturing emerge as the most ideal contractual modes. Finally, as the ideal investment equity entry mode, a joint venture is identified as the most appropriate approach.
The outcomes of this study serve as a potential roadmap for VinFast's market expansion into Germany, enabling the company to navigate the complexities of the German market.