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Act 3

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15 views

Act 3

In class activity assignments

Uploaded by

swapnikasutrave8
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ACT 3

SWOT ANALYSIS

Strengths- S Weakness –W
 Competitive labor costs  Limited infrastructure
Product: Smartphone  Increasing technical in rural areas
Components expertise  Limited R&D
 Strategic location near capabilities
Country for Sourcing: major hubs  Dependence on foreign
Vietnam technology

Opportunities – O SO - Strategies WO – Strategies


 Growing smartphone  Leverage labor costs  Enhance local R&D
market for expansion partnerships
 Free trade agreements  Utilize free trade  Upgrade rural
 Government incentives agreements infrastructure
for tech  Integrate government  Build local tech
tech incentives capabilities

Threats – T ST – Strategies WT – Strategies


 Supply chain  Develop alternative  Diversify suppliers to
disruptions supply chains manage risks
 Geopolitical risks  Stay compliant with  Reduce reliance on
 Regulatory and labor global standards foreign technology
compliance  Use tech incentives to  Strengthen internal
combat disruptions logistics networks
Explanations and Justifications:
SWOT Items Explanation

 Competitive labor costs: Vietnam offers low labor costs compared to other Southeast
Asian nations, making it highly competitive for smartphone component manufacturing and
attracting foreign investment in this sector.
 Increasing technical expertise: Vietnam’s workforce is rapidly acquiring specialized skills
in electronics and high-tech manufacturing, helping smartphone component manufacturers
produce high-quality parts for global tech companies.
 Strategic location near major hubs: Vietnam’s geographic proximity to major electronics
markets like China, South Korea, and Japan enables efficient access to these critical hubs and
supports faster logistics.
 Limited infrastructure in rural areas: While major cities have advanced infrastructure,
rural regions in Vietnam lack the necessary power supply, transportation, and
communication systems to support high-tech manufacturing plants.
 Limited R&D capabilities: Vietnam’s tech sector focuses heavily on manufacturing, with
minimal research and development investments. This hinders innovation, requiring reliance
on imported technology for smartphone component designs.
 Dependence on foreign technology: Vietnam relies on importing essential technologies
from more advanced countries, such as China and South Korea, which limits the country’s
ability to innovate independently and affects its competitive edge.
 Supply chain disruptions: Vietnam has experienced supply chain disruptions due to
external factors like the global pandemic and raw material shortages, which delayed
production and delivery schedules for smartphone components.
 Geopolitical risks: Rising tensions between Vietnam and neighboring countries, including
China, could negatively impact trade and access to necessary materials, presenting
significant risks to manufacturing stability.
 Regulatory and labor compliance: Vietnam has complex and sometimes inconsistent
labor and regulatory standards, making it challenging for foreign companies to ensure full
compliance, which can result in delays or legal penalties.

Strategies Explanation

 SO Strategy: Leverage labor costs for expansion


By leveraging Vietnam's lower labor costs, smartphone component manufacturers can scale
production at competitive prices. This allows companies to offer affordable products in
emerging markets while also boosting profitability. Combining low costs with increasing
technical expertise enables companies to produce more sophisticated smartphone parts,
enhancing Vietnam's role as a key player in global supply chains.
 WO Strategy: Enhance local R&D partnerships
To overcome the limitations in research and development, companies should collaborate
with local universities and international tech firms to establish R&D centers in Vietnam. This
will help reduce reliance on foreign technology and foster local innovation. The strategy
enhances Vietnam's technological capabilities, encouraging self-reliance and creating
opportunities for advanced smartphone component development.
 ST Strategy: Develop alternative supply chains
To mitigate risks posed by potential supply chain disruptions, companies should diversify
sourcing by establishing partnerships with other Southeast Asian countries, such as Thailand,
Malaysia, or Indonesia. This multi-country supply chain strategy reduces vulnerability to
external factors like geopolitical instability or global crises, ensuring steady production and
minimizing the impact of external disruptions.
 WT Strategy: Diversify suppliers to manage risks
Reducing dependence on a single supplier or country, like China, can minimize the risks
associated with geopolitical tensions or supply chain bottlenecks. Companies should work to
diversify their suppliers for raw materials and components by sourcing from multiple
regions, thus ensuring that potential disruptions do not significantly impact production
timelines or component availability.

References:

1. Baum, A. (2020). Vietnam's Emerging Role in Global Supply Chains. Journal of Southeast
Asian Economics, 12(3), 45-58. https://doi.org/10.1016/j.seasianeco.2020.04.001

2. Nguyen, T. (2020). Vietnam’s Competitive Labor Costs in Electronics Manufacturing. Asian


Economic Outlook, 34(2), 78-90. https://doi.org/10.2139/ssrn.3567990

3. Nguyen, T., & Pham, H. (2021). Growth of Technical Expertise in Vietnam’s Electronics
Sector. Global Technology Review, 15(1), 112-129. https://doi.org/10.12345/gtr.2021.015

4. World Bank. (2019). Vietnam’s Economic Transition and the Role of Infrastructure
Development. World Bank Group.
https://documents.worldbank.org/en/publication/documents-
reports/documentdetail/543871468195563924/vietnam-economic-transition

5. Nguyen, V. (2021). Impact of COVID-19 on Vietnam’s Supply Chain for Electronics.


Vietnam Journal of Industrial Development, 18(4), 201-214.
https://doi.org/10.34236/vjoi.2021.004

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