Contents

Introduction.................................................................................................................3
1 . PNJ......................................................................................................................... 3
1.1 Mission, vision, objective, strategic goal, and core value of PNJ......................3
1.2, The relationship.................................................................................................5
2, The impact and influence of macro environment on PNJ........................................5
2.1 PESTLE.............................................................................................................5
2.1.1 Political........................................................................................................5
2.2.2 Economical................................................................................................6
2.2.3 Social – culture............................................................................................7
2.2.4, Technology.................................................................................................7
2.2.5 Legal............................................................................................................8
2.2.6 Environment.................................................................................................8
2.2.7 Strategy of PNJ............................................................................................9
3. Porter’s five forces.................................................................................................10
3.1 Threat of new entrants - Low..........................................................................10
3.2 Threat of substitute product – Low...................................................................10
3.3 Bargaining power of suppliers – High..............................................................11
3.4 Bargaining of buyers – Low.............................................................................12
3.5 Competitive rivalry - Low...............................................................................12
4, Implication of the industry structural analysis.......................................................13
5, Internal resources and capabilities of the company................................................14
5.1 VRIO................................................................................................................ 14
5.1.2 Intangible resource.....................................................................................14
5.1.3, Capabilities...............................................................................................15
6, Strategic direction..................................................................................................16
6.1 Strategic objectives...........................................................................................16
6.2 Strategic direction based on Ansoff Matrix......................................................16
6.3 Competitive strategy.....................................................................................17
6.4 Operating plan..................................................................................................18
Conclusion................................................................................................................. 20
Reference................................................................................................................... 20

Introduction

This article includes basic information of the business, analyzes the influence of
the external and internal environment on the company, from which there are
reasonable competitive plans and approaches to apply in the current period. next.

Established on April 28, 1988 with the name Phu Nhuan Jewelry Store (PNJ). By
January 2004, PNJ was equitized and became Phu Nhuan Jewelry Joint Stock
Company. In 2009, PNJ shares were officially listed on HOSE, PNJ is the first and
only jeweler listed on the stock exchange so far.

Over 33 years of establishment and development, Phu Nhuan Jewelry Joint Stock
Company (PNJ) has been constantly developing, becoming one of the largest jewelry
manufacturers and retailers in Vietnam with famous brands. such as PNJ Silver, PNJ
Gold, CAO FINE Jewelry and Jemma. The company's main business products are
manufacturing and trading in gold and silver jewelry, precious stones, fashion
accessories, souvenirs, trading in watches and trading in gold bars. Recently, PNJ has
added a new service that is an inspection of diamonds, precious stones and precious
metals. These products are not only supplied to the domestic market by PNJ, but I
aim to expand exports to foreign markets by pioneering in exporting Vietnamese
jewelry to the international market, and famous products. The highlight of the past
year is the collection in collaboration with Disney.

The year of intense volatility due to the Covid-19 pandemic has posed a great
challenge to the business community and requires a drastic transformation to
overcome the crisis and see new opportunities. Against that background, PNJ has
made a comprehensive effort to F5 - Refresh to regenerate resources, promote
creativity and innovation, and increase the ability to flexibly respond to many risks.
As a result, PNJ came back spectacularly and won a breakthrough. The enterprise not
only successfully completed the targets, ensuring positive growth while the general
market grew negative, but also reached a new position - The best enterprise in the
jewelry industry in Asia - Pacific. Thereby, PNJ has made an important contribution
to enhancing the position and prestige of Vietnam's jewelry industry, promoting
international cooperation, taking an important step in the process of increasing its
influence in the jewelry market. international. In May 2022, PNJ announced that its
net revenue until May reached 2,671 billion dong, up 68% over the same period last
year, profit after tax reached 141 billion dong, a growth of 66%.
 1 . PNJ
1.1 Mission, vision, objective, strategic goal, and core value of PNJ

PNJ's vision is "Becoming the leading Asian company in jewelry manufacturing

and retailing products that celebrate beauty, reaching out to the world." Along with

that vision, the company's mission is "continuously creating to bring exquisite

products with real value to honor the beauty of people and life".

The core value that PNJ aims at is "integrity to last, steadfastly clinging to the

goal, caring for mutual development, dedicated to customers and pioneering to make

a difference".

Strategic goals of PNJ are based on 5 golden goals : economic growth, human

resource development, socio-economic development, people engagement and

environmental protection (PJ's annual report, 2021). These goals are based on the

company's vision and mission, so this is the Strategic goals for 2022:

PNJ sets a target of 32.2% net revenue growth, equivalent to more than 25,834

billion dong and 28.2% growth in net profit, equivalent to more than 1,319 billion

dong, reaching 20% dividend.(Tien Phong, 2022)

PNJ has consulted shareholders to issue more than 82 million shares to increase

charter capital to more than 3,282 billion VND, the source of issuance is from capital

surplus and residual profit as of December 31, 2021, the actual rate shows 3:1. At the

same time, set up an investment and development fund 40% of the total profit after

tax distributed in 2021, equivalent to more than VND 411 billion (Kim Anh 2022).

Expanding the network of retail stores with more than 500 points of sale, the

plan is to start from 336 points in September 2021 and carry out until 2025. Because
In the past year, PNJ opened 20 new Gold stores, 1 Style store and 1 Style store.

closed 21 stores (mostly PNJ Silver) to restructure the retail system with stores with

better locations and better rental costs (vietnambiz,2021).

1.2, The relationship

PJ's mission is about continuous improvement and creativity as the foundation

for the company's international expansion. Although the target audience is not clearly

mentioned, the goal is clearly described as building and developing community,

bringing value to life. After two years of the Covid-19 pandemic, PJ's management

believes that consumer demand, especially for non-essential products such as

jewelry, will be difficult to recover in the short term, mainly due to the unstable

financial situation. affect. However, PNJ still expects revenue growth. These show

that the management, shareholders and investors have made great efforts in

optimization and sustainable revenue growth. With the goal of developing and

orienting human resources, PNJ issued ESOP shares, this is considered as a reward of

the company for employees, On the other hand, store expansion strategy until the

end. 2025 clearly demonstrates the push towards the goal and vision of becoming a

leading company in Asia. Although the company implements the above strategies,

but still has no specific goals for social and community development as well as

environmental protection, PNJ only focuses on economy and people. (para)

2, The impact and influence of macro environment on PNJ

2.1 PESTLE

2.1.1 Political

Vietnam's socio-political economy is stable and highly appreciated by the

international community for successfully realizing the dual goals of epidemic
prevention and control, as well as economic recovery and development. Notably,
during the most difficult period of the COVID-19 epidemic in 2020-2021, Vietnam is
still one of the few economies with positive growth, stable macroeconomics, and
controlled inflation. control at a low level. Particularly in the 8 months of 2022, the
socio-economic development continues to achieve many positive results, many large
enterprises and production groups have returned to operation with 100% capacity and
expanded their investment capital. private. (Minister Nguyen Tri Dung, 2022)

The monetary policy of the State Bank has partially supported the domestic
economy, as well as helping to increase GDP growth and control inflation. A number
of other resolutions from the state also greatly support businesses. Among them, the
anti-giltization policy has changed the speculative demand into the demand for gifts
and jewelry. This is a very beneficial policy for PNJ because their main business is
jewelry retailing and gold trading is not a profitable business, in the long run may
cause business difficulties due to frequency low buyback (para)

At the end of 2011, the state declared a monopoly on gold bars to stabilize the
gold price, the gold price then entered a long series of declines, causing many
businesses that depend on this business to wobble. In 2013, Circular 22 was issued to
tighten the gold jewelry business, causing many small units to temporarily stop
operating. However, PNJ has been licensed to import raw gold since 2013
((PNJ,2018). However, due to the prolonged epidemic situation, it has affected PNJ's
import and export activities and taxes on the import of masks. strength at a high level
of 25-30 %.

Politics has a positive impact on PNJ, being able to import raw materials has
solved the problem of lack of raw materials. In addition, the government's policies
are very reasonable to promote the development of the business at a time when PNJ
is still a medium-sized enterprise. In terms of negative effects, PNJ has promoted the
manufacturing segment. At this time, PNJ owns the largest jewelry manufacturing
factory in Vietnam (8 times the capacity of SJC and Doji combined - according to
FPTS) using modern technology from Europe and a team of jewelers. skilled. These
are all things that PNJ accumulated many years ago that later competitors could not
catch up with and greatly reduced import tax. (PNJ, 2018)

2.2.2 Economical

According to Chinhphu.vn 2022, it is expected that the whole year of 2022 will
reach and exceed 14/15 planned targets, in which, GDP growth will reach about 8%
compared to the target of 6-6.5%, in the context of the current situation. The model
has more difficulties and challenges than when developing a plan. This is a good sign
for businesses that sell irons and consumables. In which, PNJ has strong growth
opportunities due to increased demand for jewelry. Inflation in 2022 is a big pressure
for the government, with the current inflation rate, the inflation rate is being
controlled by the government at 4%, the average inflation in the last 6 months must
be above 5, 56%, that is, in the remaining period of 2022, CPI will have to increase
by an average of more than 0.7%/month (Government Newspaper, 2022). The
jewelry retail sector has been in a K-shaped recovery in the past 2 years, so leading
companies like PNJ have recorded impressive growth in 2022 (Van Giap, 2022).

The strong growth has helped PNJ become one of the leading enterprises in the
industry, so PNJ has been granted large credit lines by banks with preferential
interest rates from 4.2% -5.2%/year (Announcement). Vu, 2022). This is a positive
influence on PNJ, creating conditions for the company to expand its capital for
production and business expansion. Besides, Gold has fallen for 6 consecutive
months after peaking above $2,000/ounce in March 2022. From a technical
perspective, analysts forecast, gold is still in a downtrend and the risk is tilted to
another drop to $1,560/ounce.(Investment newspaper, 2022). However, when the
gold market cooled down, the "giants" of gold jewelry won big. PNJ said that its
accumulated wholesale revenue in the first 7 months of the year increased by 49.9%
over the same period last year. In which, thanks to strong fluctuations in gold bar
prices in the first months of the year, PNJ's gold bar revenue in the first 7 months of
the year increased by 76.1% over the same period (A.Hong, 2022).

Economic factors are one of the strong positive influences on PNJ.

2.2.3 Social – culture

For Vietnamese people, although there are many investment and savings
channels, many people still have the habit of hoarding gold. As a habit, many people
still buy 1-2 gold coins every month to protect themselves. Besides, the gold age in
Vietnam is still on an upward trend, which has partly hindered the purchasing power
of consumers. However, in the past, people often put their trust in small gold shops.
This is usually a plain round ring, processed without blistering, of unknown origin,
without brand and identification mark and not tested for quality according to
international standards, so the buyer will bear the loss. It is often difficult to buy and
sell, buy expensive compared to the real value and when selling is lost even when
you encounter fake gold and the gold market is tightened, gold companies have paid
attention to the ring gold market that is being left open. quality. Accordingly, all
kinds of gold received international quality inspection, ultra-durable blister pressing
for good preservation was born and immediately sold very well (vietnamnet, 2015).
Catching this trend, PNJ has stepped up import and processing. Gold partners with
quality accreditation certificates increase people's trust, thereby improving business
development opportunities in the future.

Vietnam has a total population of more than 99 million people, and the average
age is 33.3 years (Population of Vietnam, 2022). This average age is a suitable factor
for consumption growth, and is an abundant human resource for businesses.

Social factors have a positive impact on PNJ.

2.2.4, Technology
 In recent years, recognizing the importance of R&D, the government and
businesses have adopted many policies and strategies to develop R&D activities.
Some of the success of domestic R&D in Vietnam comes from international
technology transfer activities. However, according to R&D experts, developing
countries can significantly benefit from the R&D efforts of trading partners. Besides,
digital transformation is also developing strongly in Vietnam. In the first 6 months of
the year, the digital economy's share in GDP reached 10.41%, up from 9.6% at the
end of 2021. The number of monthly users on Vietnamese mobile digital platforms
has increased by more than 100 million turns over the same period in 2021.( Khuong
Nha, 2022). While many businesses are in dire straits, with a sharp decrease in
revenue, loss of business, and even bankruptcy due to the impact of Covid-19, PNJ, a
production and business enterprise, is considered "nothing". essential" saw a
spectacular growth in profit, up to 50-60% over the same period, largely due to
digital transformation and the application of new technology solutions such as AWS's
cloud computing. help flexibility in business, promote online service provision,
improve customer experience (Thu Ha, 2021).

Besides the positive impact, there is an accompanying disadvantage that is that

human resources for the technology industry in Vietnam are still scarce and partly do
not meet the quality needs of businesses. So PNJ is somewhat hindered in technology
development.

This factor has both positive and negative effects on PNJ.

2.2.5 Legal

According to Circular 22/2013 on gold quality, PNj has seized the opportunity to
indirectly develop its market share based on the company's reputation, promoting
people to raise awareness about gold jewelry in the market. . (para) Besides,
regulations on gold bar business require a high amount of capital (100 Billion VND)
and must have more than two years of experience in the industry, while in jewelry
business, there are no mandatory regulations on the amount of capital and years of
experience. This regulation does not help or adversely affect PNJ. Because in the
Vietnamese market, state-owned enterprises like SJC are a difficult opponent to
overcome.

Some other laws also have some influence on Vietnamese enterprises, such as
the labor law being tightened to ensure the rights of workers. Therefore, PNJ must
strictly comply with the provisions of the law to the workforce and the environmental
regulations for the company's production segment so as not to affect the business
activities as well as the brand. (para)

Legal has both positive and negative effects on the company. Regarding the
negative impact, the regulations of the state, especially on taxes, partly reduce the
revenue of enterprises. For example, recently, PNj was fined for making false
declarations leading to a lack of VAT, the total arrears amounted to VND 1.04 billion
(Huyen Chau, 2021). In order to take advantage of opportunities and minimize losses
( para ) Enterprises always pay attention to the market, and the management board,
the executive board must always closely monitor the activities of the business.

2.2.6 Environment

The specificity of the heavy metal production industry is cutting activities,

welding using strong light energy sources to perform the operation, and will freely
release the CO2 to the environment, besides, it is impossible to not mention metal
dust problems. Extremely bad metal dust affects human health. Furthermore after-
processed metal scrap is capable of recycling, the recycling of metals will undergo
metal melting and that discharge into the environment of air is not small. Therefore,
PNJ always has to strictly control the input material source, avoiding the loss as
much as possible to minimize the recycling. PNJ has also invested in construction of
a stable disposal treatment system according to QCVN 40: 2011 / BTNMT, and
implementation of material saving policies. The environmental factor negatively
affects PNJ.

2.2.7 Strategy of PNJ

Maybe in the future, PNJ will be threatened by two economic and environmental
factors. Economics will affect social aiming. The gold demand of consumers in
Vietnam has increased from 12.6 tons in the second quarter of 2021 to 14 tons in the
second quarter of 2022, equivalent to an increase of 11%. Specifically, this growth
was achieved by the total demand for gold and gold dong increased by 5%, from 9.1
tons in the second quarter of 2021 to 9.6 tons, in the same period in 2022. According
to Mr. Louise Street, EMEA senior analyst in the World Golden Council forecast: "In
the future, the gold market will bring both opportunities and challenges in the second
half of 2022. The demand for safety shelter properties will probably continue to
encourage gold investment activities, but the tightening of the currency is further and
the continuous growth of the dollar may cause There are many difficulties. As many
countries are facing economic recession and the cost of living expenses continue to
tighten, consumer needs will be reduced despite the areas of safety investment."
(Diep Anh, 2022) so the company needs Continuously developing plans to suit the
economy and demand needs of customers. As mentioned above, the heavy industry
related to jewelry crafting has a lot of negative effects on the environment and
workers' health, so the company needs to focus more on handling output waste such
as waste water and gas.

Differentiation Strategy that PNJ applied. Enterprises always study VF

developing new designs and product lines that are more suitable for many customers.
PNJ's most prominent product line is a co-operation jewelry collection with Disney
with a young and diverse design. So when focusing on the method of differentiation.
PNJ always has to study the market, any customer needs, a diverse product model
research in accordance with a diverse market to bring the most profitable to the
company. Thanks to the difference in design and investment items of brand
development, bringing the brand rapidly to the high-end market segment, in parallel,
PNJ will increase supply chain management efficiency to ensure transparency and
make a difference in value as well as product quality and quality The world's leading
standards. In order to meet the Strategic Objective for sustainable development, PJ's
strategic goal in half a year after 2022 and early 2023 was to launch six new product
lines. Minimize the cost of input materials. And the first goal of the Product
Development: Continue to study the market for a variety of products, with the
number of more items for the Vietnam Consumer Group. Market Development:
Upgrade to expand selling points and multi-channel sales systems to bring more
comprehensive experience, solid growth with the focus on maintaining the number
one position in the market; Constantly developing synchronous production capacity,
supply chain management, strategic management, marketing, .. to create
comprehensive strength of enterprises; Continuing to enrich the resources of human
resources, brand resources, customer resources, to increase the core value of the
enterprise.

3. Porter’s five forces

According to the definition of Porter (1980), the industry is a group of companies

that produce each other's alternative products and services to provide customers with
the same basic needs. PNJ is in the Jewelry Industry. Then, the government is almost
exclusive in the gold industry, and the sale of gem gold that needs a license to
accompany the gem gold and silver industry is not considered in PNJ.

3.1 Threat of new entrants - Low

When joining the industry, the first thing that new businesses need to consider is
capital. According to the government's regulation, to join the jewelry retail industry
without capital requirements. Quality, according to Article 8 of Decree 24/2021 /
ND-CP. This regulation is not too strict for new small businesses that have just
participated in the industry, which can cause the risk to join the industry at high
scoop.

On the other hand, there are many other factors that reduce this threat. First, the
source of personnel for jewelry design and production must be experienced and
experienced people as well as aesthetic. Customer loyalty is based on product
designs, unique and aesthetics of the product are the things that retain customers. The
second factor is that, although the large companies in the industry always have a
combination of labor specialization and technology to help increase production
productivity. Leading businesses such as Doji and PNJ have a lot of orders, so it is
necessary to require a high output compared to that when it reduces input cost. This
is the reason the economy by scale helps businesses cut costs, increase cost
advantages.

In the future, this pressure will probably increase because as analyzed in social
factors, the demand for jewelry will be increasing so new businesses will take
advantage of this opportunity and create a name. in a short time. And it is easier to
access resources to be convenient for new businesses for accession and development.

3.2 Threat of substitute product – Low

Cheap jewelry products, made from titanium or silver -plated, gold -plated

cannot replace the position of jewelry made from gold and silver. The benefits of

gold and silver products are to protect health, Investment and long -term value.

Accompanied by the quality of life in Vietnam is gradually being improved, so they

will be more interested in gold and silver jewelry instead of cheap products. Thus,

this fast fashion force does not bring any threat to PNJ.

For profit purposes, there are many other means such as stocks, real estate, and

sending banks to replace gold depending on the economic situation. But there are still

many Vietnamese people who still keep the concept of accumulating gold and silver,

so this effect is not high.

3.3 Bargaining power of suppliers – High

The approach to large raw materials is not easy, importing gold and silver is

mainly ore from other countries. For gold and silver, PNJ bought from the seller for

recycling, while the import of gold and silver PNJ has been licensed by the State

Bank since 2014. Another source of raw materials is diamonds and gemstones

imported. From Thailand, Hong Kong, India (Khanh Linh, 2019). In addition, gold

and silver are also raw materials for electronic components and chemical industry,

making the demand still high and the supply is not much, especially the supply of

diamonds and gems.

 Production machines, professional craftsmen are what PNJ needs, but to meet the

requirements of a large, well -trained and skilled team of investment costs for high

training. Therefore, large enterprises tend to train themselves or from quality training

sources to meet techniques and application of manufacturing technology.

So this barrier is high, maybe later the State Bank removes the limitations of the

import of gold and silver raw materials, the business will have more favorable

conditions in the supply, reducing the dependence from the inside. Water and

Bargaining Power of Suppliers may drop to average.

3.4 Bargaining of buyers – Low

Over the years, the number of customers of PNJ has grown well, especially in

2017, the number of new customers of PNJ increased by 44% compared to 2016.

Therefore, the customer service and care style training program - Report on

production and business activities in 2017 is always regularly organized by PNJ for

sales staff to take care of customers. Therefore, the Brand Confidence Index (NPS)

measured by PNJ in 2017 reached 8.71 points (on a 10-point scale), an increase of

0.15 points compared to 2016. The consumer group belongs to the upper middle class

group. stay in Vietnam. Vietnam is developing strongly and is expected to grow from

12 million in 2012 to 33 million in 2020, which has boosted the purchasing power of

the luxury goods market, including the jewelry market. In 2017, the company ranked

first in Vietnam's jewelry retail market, much higher than its competitors in terms of

customer awareness of the PNJ brand. In 2018, PNJ continued to perfect the NPS

software, initially built and integrated the CRM system into customer management
and care, and focused on implementing marketing activities. Because taking

customers is important. Therefore, customers for PNJ are not only customers but also

friends, partners and also a goal for the jewelry group to aim and serve.

3.5 Competitive rivalry - Low

Currently, PNJ is considered as a big brand in the industry. Retailers
Vietnam's largest jewelry store owns more than 350 stores, accounting for more
than 30% of the total market share. This unit also has a very high recognition with a
team of 1,000 goldsmiths, especially 160 workers who are classified as artisans,
accounting for 70% of the number of artisans in the country. Besides PNJ, DOJI is
also a familiar name, especially when this unit buys Diamond World. The deal
marked DOJI's acceleration in the fields of gold, silver, gems and jewelry, increasing
its influence and ability to lead the market. (Thu Ha, 2022) Besides, from 2022, there
will be a big man in the Pandora jewelry village of Denmark with an investment of
100 million USD to build a factory in Binh Duong industrial park. The domestic
market also receives a new factor from FLC Group, which is FJC. Therefore, the
competition to maintain and improve market share is very fierce.
In the first quarter of 2022, PNJ grew by 42-43% over the same period last year.
Besides, the giant in the same industry, Doji, announced its business results in 2020
with after-tax profit at VND 187.6 billion, an increase of 24.3% compared to 2019.
This high growth shows that people are still There is a very high demand for
shopping, for the market share there is competition, but the jewelry market is still not
saturated, so it can be seen that the competitive pressure is low.
For companies, the price difference is due to the difference in input costs and
resources between businesses, moreover, jewelry is a product with diverse designs,
businesses will have different options. Unique design tailored to its target audience.
At PNJ, the target audience is people with average incomes and above, so PJ's
products are diverse from silver, gold, gems to diamonds. Products with many
differences and always being updated in accordance with consumer tastes are the
criteria to attract customers and increase competition.
In the future, this competitive pressure may increase due to the entry of foreign
enterprises such as Pandora's investment in manufacturing factories and possibly more
entry from foreign companies FJC.

4, Implication of the industry structural analysis

Supplier power is PNG's biggest concern, Enterprises need to improve their

negotiations with suppliers to ensure uninterrupted supply. This power will last until
the government makes a new decision that can break the monopoly in the industry.
Besides that, Competitive rivalry in the future may become a concern for PNJ,
because new big players will soon enter this market, and competitors will fiercely
compete for this market share.

To develop sustainably and reach out further in the future, PNJ has used a
product differentiation strategy. The company is always diversifying in product
design, seeking cooperation with brands that can help PNJ create personal collections
such as the recently launched PNJ x Disney collection and always Launching new
models suitable for many different customers. Although a product differentiation
strategy creates uniqueness, in order to improve customer loyalty to the brand, a
focused strategy is needed. The company can combine more differentiation focus
strategies. It helps businesses reduce the risk of having to focus too much on R&D,
and capture a larger market share in the same segment. To do this, enterprises need to
identify the market they pursue, then position their brand products, and design and
manufacture products that are suitable for that market.

5, Internal resources and capabilities of the company

5.1 VRIO

5.1.1 Tangible resource

a, Product range and distribution network

PNJ has a diversified portfolio of manufactured products ranging from jewelry,

wedding jewelry, watches, gift suggestions, including a variety of materials, a line of
gems, diamonds, collection, and there are products for different audiences from
adults to children. Thanks to its large scale, PNJ is currently one of the few
Vietnamese enterprises exporting jewelry to the world with qualified standards that
can meet the requirements of partners (Everest, 2021). PNJ has the strong point of
diversifying products and producing quality assurance with good skilled workers, so
there is little to copy products.

b, Financial resource

For the jewelry retail industry, large capital is a great strength for businesses.
PNJ has a total capital of up to 8.500 billion VND, including more than 5 trillion
VND in equity and more than 113 billion VND in cash. (Annual report, 2021).
Among competitors, only Doji has a huge capital of about VND 12,000 billion. In 2
years of covid, PNJ has issued more shares to increase capital and cut staff to
maintain. But PNJ still lost more than 159 billion in the third quarter of 2021.

c, Human resource

The enterprise owns a human resource of more than 6000 employees with a solid
professional background. Especially, the team of more than 1,000 jewelers and
artisans with high skills and rich creativity is enough to create extremely
sophisticated product sets. The process of building, training and maintaining a quality
human resource has been built into a strategy by PNJ with long-term plans and
solutions in the direction of sustainable development. At the same time, internal
factors that are decisive to an employee's attachment such as: job characteristics,
salary and fairness, training and development opportunities, empowerment,
organizational brand organization, support from superiors and colleagues, reward and
recognition of achievements, etc., are constantly being improved. PNJ always cares
about the environment where the material life as well as the spiritual life of each
member is always taken care of. With that strategy and policy of human resource
management, PNJ has been making a great contribution to the creation of
fundamental values, the premise of developing human resources professionals and
the Vietnamese human resources industry (PNJ, 2018).

5.1.2 Intangible resource

a, Brand image

PNJ has achieved many brand certifications as well as titles including Golden
Brand to honor outstanding and sustainable development, Best Companies to Work
for in Asia - Best working environment in Asia by HR Asia voted, among the top 50
leading brands of Forbes Vietnam in 2019, the top Asian jewelry award of the JNA
Awards,... after many years of trying to build a brand. PNJ has fully exploited
product values, brand connections to help businesses become more famous.

b. Intellectual property

Although PNJ has products and combined collections with its own characteristics,
but besides, to diversify products, PNJ still has categories such as watches imported
from other brands, catalogs This is also present in other businesses, so this is not a
rare factor. On the other hand, cooperation with famous brands is also a plus point for
the brand's credibility.

5.1.3, Capabilities.

a, Production and design innovation capacity

PNJP Company has a production capacity of over 4 million products/year, is

considered as one of the largest jewelry factories in Asia with a staff of nearly 1,500
employees. Besides, PNJ has the leading diamond testing laboratory in Asia and is
currently the largest diamond trading unit in Vietnam in terms of sales. PNJ is the
only unit that imports diamonds instead of buying them domestically, so it also pays
a large import tax. Faced with great opportunities, PNJ from a jewelry manufacturer
and retailer with 300 stores and market share of 27% can rise to a national fashion
brand with 500 stores of its own, products present in 12,000 stores. local products,
accounting for over 50% of the domestic jewelry industry market share and
recognized by the PNJ brand as jewelry characterized by the charm, sophistication
and elegance of the Vietnamese people (NDH, 2018).

6, Strategic direction
6.1 Strategic objectives

As analyzed above, the goal of the business only focuses on business activities,
not the initial goal that the company has set.

Strategic objectives Analysis

1 Enhance the interests of investors The primary goal is economic

1 and shareholders, set a goal of growth
sustainable growth

2 Increase brand image and Participate in charity activities,

2 awareness community activities, spread the
brand image more widely.

3 Make the most of resources, Meet the goal of environmental

 3 production resources and take protection
measures to treat production waste

6.2 Strategic direction based on Ansoff Matrix

In the past, Product development strategy was the strategy PNJ built when
developing the southern market. The company focuses on the R & D department to
diversify products to serve diverse customers. As a result, in 2017, PNJ acquired 70%
of the domestic jewelry shares (Nguyen, 2019).Currently, PNJ applies two different
strategies in the two north and south regions.

In the South, PNJ applies a product development strategy. This strategy helps the
company expand the northern market by diversifying product models, increasing
branches of retail, helping the company achieve its goal of expanding market
segments to exploit new segments and increase sales. increase retail market share. In
the North, PNj uses a market development strategy. PNJ has focused on developing
the northern market since 2019 although it has had a branch in Hanoi since 1994.
With the PNJ next project, the company discovered that young people in the North do
not tend to hoard gold and silver. As an asset, the company has launched unique
design products that are popular in expensive areas, especially at branches in urban
areas where people with good incomes and above will be more diversified. . It is this
direction of understanding the market that helps PNj expand the market quickly.

In the future, PNJ should maintain the strategy and promote store coverage in the
provinces. It can be seen that PNJ is focusing more on developing the northern market
through expanding retail locations. In the distant future, PNJ may be interested in
implementing a strategy of diversifying related industries when expanding to a larger
scale in Asia because this is a new market, product design is also different from
neighboring countries. India, for example, focuses on the front page.

6.3 Competitive strategy

PNJ is making full use of the product differentiation strategy. For example,
Vietnam's culture in gold and silver PNJ had to take advantage of every opportunity
to compete with traditional retail stores, because these are competitors, so they can
optimize input costs. and sell at a more reasonable price. PNJ has diversified its
products in terms of materials, designs, decoration with precious stones and
diamonds, which has brought many choices to customers, created many segments,
and met a wide range of customers. Therefore, PNJ has been very successful in its
outstanding development in the Vietnamese market, the company is always leading
in the jewelry and retail industry, especially the product lines from PNJ silver with
beautiful designs, competitive prices. painting.
Besides, with large domestic and foreign competitors entering, making
customers have more choices with diversified products because they have good
financial resources. PNJ may switch to a differentiation-focused strategy. For
example, focusing on the high-end customer segment, creating a loyal customer file.
The difference is in the material, design, and meticulousness of the product.
Moreover, PNJ needs to focus on improving service quality in both online and offline
retail channels to increase customer satisfaction.

6.4 Operating plan

PNJ can perform the following functions to fulfill the set targets for next year
as follows:
Firm goals Functional objectives
Enhance the Operation:
interests of - 10% reduction in product costs
investors and - Increase the capacity and production capacity of factories up to
shareholders, 5 million products/year
set a goal of - Balance incurred costs and optimize input costs
sustainable Finance:
growth -Issuing more than 82 million shares to the market to increase
capital from equity surplus, raising charter capital from more
than VND 2,276 billion to more than VND 3,096 billion.
-Adjustment of long-term and short-term debts
-Reaching VND 30,000 billion in 2023, an increase of nearly
 50% compared to 2022
R&D:
-Launch 4 new product collections
-Focus on more research on customer insights.
Improve HRM:
working - Ensuring the rights of employees
environment - Building a work culture based on gender equality and diversity
and develop - Invest more in training programs for employees in all positions
human - Improve the skills of jewelers and the skills of the design team.
resources
Increase brand Marketing:
image - Promote more in the northern market
- Create activities to increase customer awareness with the brand
- Enhancing the positive feelings of customers to PNJ through
community projects
Environmental Operation:
Protection - Invest in industrial waste treatment technology
- Ensure regulations on the use of rare metal resources.

PNJ's divisions need to carry out activities for the focus differentiation
strategy and market development strategy orientation in 2023 as follows:
Function Activities Budget
- Increase capital 7 billion dong
- Control cash flow and finance
Finance
- Financial statements, financial forecasts for the business's activities
in the coming year
- Ensure output and input quality, optimize the use of raw materials 45 billion dong
Operation
- Manage retail network
HRM - Based on KPIs to evaluate work productivity, set specific standards 4 billion dong
for products and jewelers' qualifications
- Rejuvenate a more dynamic working environment, promote
 creativity, and bring comfort to employees
- Researching customer insights 25 billion dong
Marketing - Devise a marketing strategy in line with the trend of innovation
- Invest in community projects
- Target to release new products every month 15 billion dong
R&D
- Improve the product launch process

Conclusion

This report points out the internal and external factors affecting the business,
thereby providing a strategy that can help the company improve its development and
increase its competitive share in the Vietnamese jewelry market. is gradually getting
more participation from the big guys.

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