Advantage of Reading

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The prospects of the market left the business people with a mixed feeling as although thesweet and savory snacks market's potential is positive, it still depends on product categories.Analysts conclude that there is still a huge potential for the market to grow, however, due torising awareness of health and wellness, the consumers could cut down the intake of sweetsnacks such as chips/crisps and fruit snacks as a result. This gives a dim of hope for alreadymatured products like meat jerky and dry snacks to grow in market share.

3.2 PEST Analysis

We will analyze the macro environmental issues using PEST analysis. Nonetheless, ourgroup assume that political and technological factors are not relevant to this industry and thus,we will not be addressing those issues below.

Economic Analysis

Vietnam's economy, according to

Vietnam Country Analysis

 report (Datamonitor, 2011), isstill on the verge of recovery and GDP growth has shown positive sign in 2010. Vietnam hasregained good relationship with WTO and since been doing economic reforms by allowinginvestors to come into Vietnam. The country's GDP is mainly dependent on exports as it wasaccounted 64% in 2010. The GDP per capita, adjusted to Purchasing Power Parity, was$ 3,300 in 2010, as stated on

World Factbook for Vietnam

 (CIA, 2012).

Social-Cultural Analysis

Due to initiatives taken by government, Vietnam has seen a sharp fall in poverty rate and aminimal fall in unemployment rate over the past few years. Since the country is stilldeveloping, it will not be facing the problem of aging population and rising social

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expenditure in near future and in fact, the median age is even below 30 years which indicatesa young population as mentioned in

Vietnam Country Analysis

 report (Datamonitor, 2011).According to consensus 1999 data, 80% of the residents are of no religion, 9% Buddhists, 7%Catholic and others with 4%. And according to

Vietnam: Country Pulse

 report (EuromonitorInternational, 2012), the urban dwellers have habit of gift-giving in times like Tet(Vietnamese Lunar New Year). Also, food hygiene and safety is becoming a big issue inVietnam and Health Ministry of Vietnam is strongly investing in hygiene programs.

3.3 Portfolio Analysis

We will use the matrix developed by Boston Consulting Group to analyze how BCH will farein sweet and savory snacks market.In the diagram taken from

The BCG Growth-Share Matrix

 (NetMBA, 2010), we see thatBCH falls under Star (see the red dot) category due to following reasons. Firstly, there areonly a few competitors in Bakkwa market, namely Fragrance Foodstuffs, Lim Chee Guan,Kim Hwa Guan etc. However, Bee Cheng Hiang is the market dominator with 40 retailoutlets while Fragrance Foodstuff Pte Ltd has 21 outlets in Singapore, as stated in Fragrance(2007), Lim Chee Guan and Kim Hwa Guan with 2 outlets each. From here, we can deductthat BCH has greater market share over its competitors due to big difference in the number ofoutlets alone. Secondly, according to