Thạc Sĩ strategic management in order to set up a strategic focus on long term development of Saigon Port-th

Strategic management in order to set up a strategic focus on long term development of Saigon Port.
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CHAPTER 1


INTRODUCTION



1.1. Research rationale
A seaport is the terminal for ocean transportation and a vital link in the transportation and production chain. The history of seaport development shows that it plays an important role in promoting the economy. The seaport is considered as a place where each-way exchanges between land and the sea transport regularly take place. Today, the seaport is operating in a more complex system and more competitive environment than in the past. For developing countries, adjusting to these changes is the way to improve the seaports’ development and competitive position which in turn contributes to their own country’s prosperity.
As one of the main trading gateways of Vietnam to the region and other parts of the world, Saigon Port enjoys the status of being the No.1 port in Vietnam. It has highest cargo throughput and productivity in comparison to the others’. The cargo throughput of Saigon Port has occupied around 48% of that of HoChiMinh City seaport system, which is the busiest one in the Vietnamese seaport association. With a large hinterland including HoChiMinh City, the adjacent provinces and the Mekong Delta areas totaling in more than 20 million people, Saigon Port has an important role and challenging task in serving the import/export demand and economic development in general for the whole Southern part of the country. According to an estimate of the Institute of Transportation Development Strategy that made in April 1997, cargo throughput of HoChiMinh City seaport system will increase remarkably. In the year 2000, it will be 19 million tons, and soar to 25-30 million tons by 2010. On the other hand, there is a trend of severe competition among seaports in this region to attract more vessels calling and cargo throughput. This situation raises the questions for Saigon Port. Those are how to maintain the leading position, how to cope with the development requirement and to be more competitive.
1.2. Research objectives:
The objectives of this research are being stated below:
ã To analyze the business environment in Vietnam and Southern region (focus on Southern driving force economic region including HoChiMinh City, Bienhoa, Binhduong and Vung tau), the situation of HoChiMinh City seaports system and the competition between its members in order to assess the opportunities and threats for Saigon Port development.
ã To analyze the current situation of Saigon Port to find out its strengths and weaknesses, identify its competitive position.
ã Based on that analysis of external and internal environment, a framework for setting up an appropriate strategy for Saigon Port’s future development is provided. It suggests a strategic approach to make Saigon Port meet the regional requirements and be more competitive. Therefore, this strategic approach comprises positioning and building a competitive strategy for Saigon Port development in the long term.
1.3. Scope and Limitations of the research:
This research study was conducted mainly at Saigon Port and the Maritime Consulting and Project Construction Company. The study has been undertaken purely from a viewpoint of strategic management in order to set up a strategic focus on long term development of Saigon Port.
This research has the following limitations:
ã This research has related to investigating economic situation in the Southern region that is the hinterland of Saigon Port, but it mainly focuses on the quadrilateral of HoChiMinh City, Bienhoa, Binhduong and Vungtau.
ã In assessing the strengths and weaknesses of Saigon Port, the research has not examined its financial ability due to difficulties in gaining and assessing data necessary.
ã Data about the competitors of Saigon Port mainly collected from secondary data, not from those ports themselves. Therefore, the information of these competitors is not sufficient.
ã Since this research has been undertaken from the viewpoint of strategic management, it does not focus on analyzing service quality aspect, although this is also an important point of a port.
1.4. Organization of the Research:
This study will be organized in the following manner:
ã Chapter 1: Introduction – including the research rational, objectives and the scope and limitation of the study.
ã Chapter 2: Literature review – relates to a port’s functions and operational characteristics, port competition. On the other hand, this chapter also provides the fundamental matters in strategic management applied for seaports.
ã Chapter 3: Research framework and methodology – deals with the methodology of the study including the conceptual framework of the study, identification of the sources of information, of data collection method and of data analysis.
ã Chapter 4: Analyzing external environment – covering the economic situation in Vietnam, Southern region and HoChiMinh City, and the current situation of HoChiMinh port system. The chapter not only discusses about characteristics of seaport management, the developmental trend, state of technology in the port industry, but also examines competitive situation in this region with the aim of identify the opportunities and threats for the development of Saigon Port.
ã Chapter 5: Analyzing and assessing the internal operation of Saigon Port in order to point out its strengths and weaknesses.
ã Chapter 6: Developing strategic alternatives and formulating a development strategy for Saigon Port - conclude about above investigation, identify competitive position and suggest a strategic approach, in particular a competitive strategy for Saigon Port’s development.
ã Chapter 7: Conclusions and recommendations - summarize the main points draw out from the study, and makes the additional recommendations for Vietnam seaports system with respect to technology, financial and Government policy aspects.