Thạc Sĩ Implementing of Technological Strategy of Thai Tuan Textile Ltd.

Implementing of Technological Strategy of Thai Tuan Textile Ltd.

​


Abstract



The role of private companies in Vietnamese economy proves more importantly day by day due to their noticeable contributions of economic development. Most of them are small and medium companies, especially in textile-garment industry. Though textile is the industry dominated by the state sector, some of private companies in which there is Thai Tuan Textile Co. Ltd. prove their effectiveness and efficiency in terms of using technology to make competitive advantage in the fiercer market. This research took Thai Tuan Textile Co. Ltd. as a case study to find the factors creating its competitive advantage through launching ahead its fabric products to market. By analyzing the process of forming technology strategy, this study highlights the ways of using effectively the limit capital - the concentrate problem of Vietnamese present business- for technological investment.


The research also gave some recommendations for Thai Tuan Textile Co. Ltd. to implement better its technology strategy. This can helps it maintaining present position and cope with the competitive pressure when Vietnam will implement CEPT (Common Effective Preference Tariff) Scheme in 2006 due to the joint of AFTA (ASEAN Free Trade Area).


Acknowledgement




The author would like to express his sincere gratitude to Dr. Young-suk Hyun, Advisor and Chairman of the Research Committee for his valuable guidance, constructive comments and continuous encouragement throughout the study. Genuine thanks also give to Dr. Truong Quang and Dr. Hans Stoessel for serving as members of the Examination Committee.


The author would like to appreciate to the Government of Switzerland for providing me with a scholarship to pursue the MBA Program of SAV in Vietnam and at AIT in Thailand. Thanks are due to Dr. Hans Stoessel, Director of SAV Program for his help and encouragement during the learning period in Vietnam as well as at AIT.


The author is very grateful to Mr. Thai Tuan Dung, Vice General Director of Permanent of Thai Tuan Textile Co. Ltd., who makes the conditions of proceeding research and provides valuable information of company strategy. My special thanks to Mr. Vo Van Quyen, Director of Administration Department and Mr. Vo Van Sang, Vice General Director of Technology-Production, the managers of Thai Tuan Textile Co. Ltd. for their helps and co-operation for success of the research in the company.


Special thanks are also extended to Mrs. Vo Thi Quy, consultant of Thai Tuan Textile Co. Ltd. for her recommendation and supports.


The author wishes to thank his all friends in Vietnam as well as in AIT and colleagues at his faculty of Ho Chi Minh College of Economics for giving him inspiration and encouragement.


Last but not least, the author would like to present his indebtedness to his parents and family members, especially his wife, who have sacrificed unconditionally for his education.


TABLE OF CONTENTS



ABSTRACT i

ACKNOWLEDGEMENT ii

TABLE OF CONTENTS iii

LIST OF TABLES vi

LIST OF FIGURES vii


CHAPTER TITLE PAGE


I. INTRODUCTION


1.1 Background 1

1.2 Problem statement and rationale 1

1.3 Research Objectives 2

1.4 Scope and Limitation 2

1.5 Research Methodology 2

1.6 Research Framework 3

1.7 Organization Structure of study 4


II. LITERATURE REVIEW


2.1 Technological Strategy 6

2.1.1. Definition of Technology 6

2.1.2. Technology and Competitive Strategy 6

2.1.3. Content of Technological Strategy 7

2.2 Factors affecting to the Technological Strategy 10

2.2.1. Business Strategy 10

2.2.2. Organizational Context 11

2.2.3. Technology Capability 12

2.2.4. Government Policies 14

2.2.5. Technology Forecasting 14

2.2.6. Technology Content Addition 15

2.3 A Framework of Technological Strategy 15


III. THAI TUAN TEXTILE COMPANY LTD.


3.1. Company Background 17

3.1.1. Company History 17

3.1.2. Organisational Structure 18

3.2. Potential Development 21


IV. EXTERNAL ENVIRONMENT ANALYSIS


4.1. Overview of Current Vietnam Economy 22

4.2. Vietnamese Textile Industry 23

4.2.1. Role in the Economy 23

4.2.2. Future Development 24


CHAPTER TITLE PAGE


4.3. Vietnamese Textile Companies 26

4.3.1. Products 26

4.3.2. Current Technology 28

4.4. Suppliers 29

4.5. Customers 30

4.5.1 The quota market 30

4.5.2. The non-quota market 31

4.6. Government Policy 32

4.7. Competitors 35

4.8. Summary of External Analysis 36

4.8.1. Threats 36

4.8.2. Opportunities 37

4.9. External Environment Analysis in 1995-1996 37

4.9.1. Market 37

4.9.2. Textile companies 38

4.9.3. Customer 38


V. INTERNAL ANALYSIS


5.1. Main Financial Figures and Market Share 40

5.1.1. Main Financial Figures 40

5.1.2. Market Share 40

5.2. Products 41

5.3. Production Process 43

5.4. Current Technology 45

5.4.1. Technoware 45

5.4.2. Humanware 46

5.4.3. Inforware 48

5.4.4. Orgaware 49

5.5. Summary of Internal Analysis 50

5.5.1. Strengths 50

5.5.2. Weaknesses 51

5.6. Internal Analysis in 1995-1996 51

5.6.1. Capital 51

5.6.2. Machinery 51

5.6.3. Human Resource 51

5.6.4. Organizational Structure 52


VI. TECHNOLOGICAL STRATEGY OF THAI TUAN TEXTILE CO. LTD.


6.1. Strategy Formulation Process 53

6.1.1. Forecasting Demand and Technology 53

6.1.2. Setting Business Strategy 54

6.1.3. Technological Strategy of Thai Tuan Textile Co. Ltd. 55

6.2. Strategy Implementation Process 57

6.2.1. Searching Technology Information 57

6.2.2. Decision-making Process 58

6.3. Evaluation of Technological Strategy 58

CHAPTER TITLE PAGE


6.3.1. Production 58

6.3.2. Product 59

6.3.3. Market 59

6.4. Technological Strategy Suggestion 60

6.4.1. Strategy cell I 62

6.4.2. Strategy cell II 62

6.4.3. Strategy cell III 63

6.4.4. Strategy cell IV 64


VI. CONCLUSION AND RECOMMENDATIONS


6.1. Conclusion 65

6.2. Recommendations 66

6.2.1. Recommendations for Processes of Technological Strategy 66

6.2.2. Recommendations for Further Study 67




REFERENCES 68

APPENDIX 70