1.

Introduction

1.1 Rationale

 Backgound
- Industry: steel construction
- Future potential: This proves that Hoa Phat's staff has mastered the wire modern technology line,
more and more high quality product line, meeting diverse needs of the market
- Revenue trend over the past 3-5 years: Construction steel recorded 4.2 million tons, up 10% over
the same period and contributing 59% in total steel production of all kinds. In which, exports
contributed nearly 1.2 million tons. Hoa Phat construction steel market share increased to 35%,
affirming its No. 1 position in Vietnam. Wide range of products, high quality, reaching international
standards, the ability to provide quick application of goods.
- Hoa Phat holds a very strong financial potential, in which steel production and trading accounts for
more than 80% of the group's revenue Due to the large market share, always improving quality
should be the first choice of customers.
- Competitors such as Kyoei Steel, Pomina Steel, Formasa Ha Tinh and especially China's HRC.
- Brief information about the firm: For constructing steel, steel pipes, and the Top 5 largest
galvanized steel sheet manufacturers in Vietnam, the Group owns the No. 1 market share. The
business philosophy of "Harmony and development", Hoa Phat spends tens of billions of dong a
year to fulfill its corporate social responsibility to the community, through a series of charity and
social programs designed in localities across the country, where the Group and its member
companies have offices and factories.

 Problem identification
- Improtance of SWOT: For companies to respond proactively to the changing dynamics of the
industry. Knowing your own strengths and limitations can help you penetrate the market and meet
your targets
- How HPG used SWOT :
+ Strength: Vietnam is a country with cheap labor, which attracts many customers to use Hoa Phat's
steel because the price is cheap but the quality is on par with other big competitors.

+ Weekness: Hoa Phat's main customers are still Vietnamese.

+ Oppotunity: In 2022, the steel market posed several challenges for Hoa Phat, impacting their
production, business plans, and raw material prices. As steel contributes over 80% to HPG's
revenue and profit, they actively sought new opportunities to grow the industry, diversify their
products, and enhance technology

+ Threat: Although the Covid-19 epidemic has been pushed back, the war, interest rates, inflation,
and exchange rates have created a tornado cumulative results of many economies and Hoa Phat
times first recorded consecutive deep loss business results in the last 2 quarters of 2022.

1.2 Aims

 Identify the issue: Over the years, Hoa Phat Group Joint Stock Company's total revenue and profit
after tax have continued to rise despite numerous challenging market conditions. This
demonstrates Hoa Phat's competitive advantage. Revenue and profit growth rates are rising
steadily as a result of manufacturing and company improvements.
  This study aims to assess the productivity and business operations of firms, as well as their
strengths and limitations. At the same time, realize that examining an organization's financial
situation is a crucial procedure. To attain the highest level of efficiency, firms must adopt the
appropriate investment and development strategies.

1.3 Scope

 To position the competitive state of an organization, it begins with understanding the forces, events,
and challenges in the environment in 2020, 2021, 2022.
 Use reports such as income statements, budget statements, and financial metrics reports for 2020,
2021, 2022 to analyze the internal environment.

1.4 Significance of the study

 Although the Covid-19 pandemic only lasted a few short months, it bitterly forced many big and
small enterprises to "stop the game". HPG understand how to quickly improve their deficiencies and
market their strengths using a tried-and-true marketing strategy SWOT evaluation.
 In light of the fact that the general market has several drawbacks, the products of the Group have
achieved extraordinary results. overcoming numerous obstacles throughout the past year. Hoa Phat
Steel Pipe continues to maintain the No. 1 market share in the industry, while Galvanized Steel
retains the Top 5 market share.

2. Literature review

2.1 Overview of the company

 Brief information about company ( Hoa Phat Group )

Hoa Phat is a leading industrial production group in Vietnam. Starting from a company specializing in the
sale of construction machinery since August 1992. Currently, the Group operates in 05 fields: Iron and Steel
(Construction Steel, Hot Rolled Steel) - Steel Products (including Steel Pipe, Galvanized Steel Sheet, Wire
Drawn Steel, Container Shell, Prestressed steel) - Agriculture - Real estate - Electrical machinery
Appliances. Steel production is the core field that accounts for 90% of the Group's revenue and profit

 Historical development
 Historical map of Hoa Phat Group

 Mission
Becoming an industrial production group with leading quality, in which Steel is the core field.
 Vision
Providing leading products, contributing to improving the quality of life, gaining the trust of
customers.
 Involving industry
Iron and Steel
Steel product
Agriculture
Immovable property
 Scope of operation
Including 10 subsidiaries in the North, a system of 30 factories, complexes, modern farms operating
smoothly.
 Product or service concepts
Steel production is the core sector accounting for the proportion 90% of the Group's revenue and
profit. Capacity of over 8 million tons of crude steel/per year, Hoa Phat is an enterprise's largest
steel producer in Southeast Asia.

 Competitive advantage
With a large scale and high-value chain: Top 1 in capacity in Vietnam (No. 1 construction steel
market share in Vietnam, No. 1 pipe steel market share in Vietnam), Hoa Phat steel products are not
only quality, but also competitive prices in the market thanks to its high-value chain production
process.
Having a deep-water port: The Group has a total of 11 berths at Hoa Phat Dung Quat port, of which
berths 10 and 11 can accommodate the largest ships with a tonnage of up to 200,000 tons.
Suitable for the development stage of the country: Since Vietnam is a developing country, the need
to build electricity, roads, schools, stations, bridges, culverts, works, projects, automobile
manufacturing industry, etc. is very large, it requires a lot of construction materials, especially steel.
Autonomous production of hot-rolled coil (HRC), currently in Vietnam there are only two
independent enterprises producing HRC steel, namely Hoa Phat Group and Formosa Ha Tinh Group.
 Brand name Hoa Phat Group leads in the steel industry in Vietnam: Among the Top 7 strongest
brands in Vietnam.
 Overview market share

 Revenue

 Company problem
With the characteristics of a multi-industry manufacturing enterprise, field, scale of operation
throughout the territory of Vietnam, and initially investing internationally, Hoa Phat Group cannot
avoid the risks arising during the operation motion. To effectively hedge these risks, the Group
proposes specific measures for each material risk group, especially in hedging the risk of exchange
rate fluctuations, policy, legal and human resources..
2.2 Concept and definition

As a successful, growing business any future growth decisions must be informed by as much
industry data as possible to identify the opportunities as well as the risks that could jeopardize a
particular move.

One of the first things many businesses do during their planning process is to conduct a SWOT
analysis. The SWOT framework is credited to Albert Humphrey, who developed the approach at the
Stanford Research Institute (SRI) back in the 1960s and early 1970s.

The first two letters in SWOT, S (Strengths) and W (Weaknesses), refer to internal factors within
your own business. It relates to the resources and industry experience already available to you. The
final two letters in SWOT, O (Opportunities) and T (Threats), refer to external factors that could
influence your business. It’s the task of decision-makers within your business to ascertain whether
any of the following factors are a direct or indirect opportunity or threat to your company.

British Library

British Library. (2023). Retrieved 14 June 2023, from

https://www.bl.uk/business-and-ip-centre/articles/what-is-swot-analysis

Why Is a SWOT Analysis Important [+ Examples] - Venngage

Why Is a SWOT Analysis Important [+ Examples] - Venngage. (2022). Retrieved 20 June 2023, from
https://venngage.com/blog/why-is-a-swot-analysis-important/

Product concept là gì? 5 yếu tố hình thành concept sản phẩm | DTM Consulting
Product concept là gì? 5 yếu tố hình thành concept sản phẩm | DTM Consulting. (2020). Retrieved 20
June 2023, from https://dtmconsulting.vn/product-concept/

Hòa Phát nắm 48% thị phần thép xây dựng tháng 8
Hòa Phát nắm 48% thị phần thép xây dựng tháng 8. (2021). Retrieved 20 June 2023, from
https://vietnambiz.vn/hoa-phat-nam-48-thi-phan-thep-xay-dung-thang-8-20210917115941013.htm\

Tập đoàn Hòa Phát: Mức tăng trưởng mạnh mẽ với doanh thu
và lợi nhuận sau thuế | Investing.com
Tập đoàn Hòa Phát: Mức tăng trưởng mạnh mẽ với doanh thu và lợi
nhuận sau thuế | Investing.com. (2023). Retrieved 20 June 2023, from
https://vn.investing.com/analysis/tap-doan-hoa-phat-muc-tang-truong-manh-me-voi-doanh-thu-va-
loi-nhuan-sau-thue-200435406