Exxon mobil 2 Autosaved baru
MSC International Business
International Business Environment
BMG812
Assignment two
Name: DO TIEN DUNG
Student Number: B00644271
Lecturer: Daniel Hagan
Due date: April 10, 2013
Word count: 1810 words
1.Introduce
Exxon Mobil, Which is a big renowned MNE, always stands in top 3 biggest
companies following the assessment of Global finance: the Fortune Global 500, the
Financial Times Global 500 and the Forbes 2000. Behind the successful of Exxon
is an excellence operation goes with discipline investment. Moreover, the
advantages of Exxon Mobil’s competition come from 3 segments: upstream,
downstream, chemical which is created by a vertical integration. It also brings for
company a benefit in supply chain from exploration, refinery to supply process.
However, the success of a company, when it enters new market, not only depends
on its competitive position but also the level of foreign market understanding. So,
in this report, we will analysis and make a plan which express how Exxon give a
discipline assessment for Vietnam oil market before entering.
2.1 Reason for entering Vietnam market
To have a plan to enter any new foreign market, Exxon Mobil bases on financial
tool to research and assess it carefully for example PESTLE analysis which is a
useful and necessary tool to assess new market, so we will find out how PESTLE
framework expresses in Vietnam market. PESTLE analysis includes 6 elements
which effect on the macro environment of any market.
Political factors:
“Vietnam has only one party state controlled by the communist party. Hence,
there is more likely to be higher central and less autonomy control for any
organization intent to do their business in Vietnam.” (Docstoc, 2011)
However, in 1986 Vietnam performed economic renovation and became the
150th member of the world trade organization in 2007, which are two turning points
effect on the boost of Vietnam economy.
“This reform policy opened a new regime marked by lower by lower inflation
rate and higher economic growth. It also provided a lot of incentive issues to attract
FDI inflow such as reducing the import/export tariff, reducing the poverty rate,
encourage foreign invested sector and private invested sectors; lowering foreigncurrency surrender rate, lowering the restriction barriers and some other guarantees
from the government” (Docstoc, 2011)
Furthermore, Vietnam has political stability and absence of violence stand
second position in ASEAN 6 recently (appendix chart 1). As a result, its market is
attractive destination for every MNE. Potential Impact: in upstream Vietnam
government encourage ExxonMobil invest, exploit and refine oil on South China
Sea which has big oil reserves in the world. Although South China Sea is disputed
between Vietnam and china, if ExxonMobil perform contract they will have big
profit. Besides, ExxonMobil can enter Vietnam market through joint-ventures or
production sharing contracts which government gives a lot of incentives.
Economic factor:
“Vietnam is a developing economy in the Southeast Asia. In recent years, the
nation has been rising as a leading agricultural exporter and an attractive foreign
investment destination. Vietnam's key products are: rice, cashew nuts, black
pepper, coffee, tea, fishery products and rubber. Manufacturing, information
technology and high-tech industries constitute a fast growing part of the economy.
Vietnam is also one of the largest oil producers in the region.” (Trading economic,
2012)
The development about economics of country usually express through 2
indexes: GDP growth rate (appendix chart 2) and inflation rate( appendix chart 3) .
Particularly:
GDP: “Gross Domestic Product (GDP) for 2011 was USD 115 billion, which
increased from USD 101.6 billion in 2010”. (ECR, 2013)
“The Inflation; consumer prices (annual %) in Vietnam was last reported at
18.68 in 2011, according to a World Bank report published in 2012” (trading
economic, 2012)
Potential impact: before investing into Vietnam, Exxon Mobil has to prepare for
negative elements likes: low interest rates, weak currency exchange rates and high
inflation. However it is not big problem with Exxon Mobil in term of upstream
activities, contrarily Exxon Mobil will have advantage when it goes into jointventures with Vietnam petroleum to exploit and refine oil, before exporting oil
over the world
Social factor:
“The population of Vietnam is about 91,519,289 (July 2012 est.). Age structure
is 15-24 years: 19% (male 8,974,221/female 8,400,162), 25-54 years: 44.1%
(male
20,130,321/female
2,720,235/female
20,205,400),
3,281,666).
Languages
and
55-64
Vietnamese
years: 6.6%
(official),
(male
English
(increasingly favored as a second language). Education expenditures are 5.3% of
GDP (2008). Literacy occupy 94% total population” ( Indexmundi, 2013)
Due to the globalization, the backward thinking is eraser step by step, although
good national characters still maintain. Potential impact: it is crucial for
ExxonMobil to make a good relationship with local government as well as local
people. This is an important step to take good comment from community and apply
for incentive policy of local government.
Technological factor: with the development of technology, Mobil phone and
computer is a vital part of Vietnamese people. More and more people and
companies are in technology and technical gadgets. After becoming a member of
the world trade organization, Vietnam continues to open for adopting new
technologies with a lot of encouragement policy likes: tax cut, reducing land lease
price, electricity and so on. Potential impact: technology market in Vietnam are
currently improving, Vietnam is in the early stages of development. So, machines
and technology about exploiting and refining oil are mainly import. This is a
chance for ExxonMobil which it transfer new technology for Vietnam to receive
incentive policy from government.
Legal: although Vietnam’s legal system is progress, the law which protects for
foreign investor is limit. Moreover, they still have legal restrictions for market
entry, so Exxon Mobil should be aware the difficulty they must face before
entering.
Environmental factor:
Vietnam, which is tropical country, is usually faced to natural disasters such as
typhoon. Its coastline is more than 3,400 km and its area of South China Sea have
huge amount of oil reserve that still do not discover. Moreover, with the complex
about geographical terrain is obstacle for transport link between drilling place in
sea and oil refinery in land.
2.2 The attractiveness of Vietnam market
In this part, the attractiveness of Vietnam market will be determined through
analyzing 4 elements of Michael Porter’s Diamond and Market Intelligence
Report.
Market intelligence stands in the term of competitive insight and market insight.
Competitive insight: in Vietnam technology is quite old fashion, the refinery is
limit. As a result, the cost of products is high and products mainly suffer a
preliminary treatment. So, the profit of Vietnam Oil Company is low. Market
insight: “Vietnam oil market consumption is about 365 thousand Barrels per day
and stand in the 35th ranked over the world”. (EIA, 2013)
It is an attractive market for Exxon that Exxon bases on high technology to enter
market and gives for customer a friendly environmental product.
Porter’s Diamond:
Vietnam factor conditions: Vietnam is developing country, the level of skill
labor and technology is improved step by step. However the cost of labor is quite
cheap which makes a good condition for every MNE entering Vietnam market that
it reduces its cost. “According to Oil & Gas Journal (OGJ), Vietnam now ranks third
in terms of proven oil reserves for the Asia-Pacific region” .(EIA, 2012)
Demand conditions: in the early of developing period, the population of
Vietnam and the private transports increase dramatically, as a result, the oil market
is very demanding. Although, related and supporting industries are limit for
instance: currently, Vietnam has only one oil refinery in Quang Ngai province and
the technology of oil exploitation is quite old, Vietnam set up joint-ventures with
huge oil MNEs over the world like: japan, Russian oil company to improve the
supporting activities for oil industries. Domestic Oil Companies in Vietnam is
quite effectively; they not only supply enough oil for domestic market, but also
tend to expand foreign market such as: Japan, Thailand, China and so on. After
entering WTO, in the next time Vietnam will open oil market, it is an opportunity
for huge oil MNEs like: ExxonMobil penetrates, set up a business and find more
profit.
(Wikipedia,2013)
3. ExxonMobil’s market entry strategy:
3.1 Target market
Despite the fact that Vietnam is developing country, the development is mainly
in urban with the improvement of transport system which includes both public and
private transport likes: car, motorbike, bus, airport and so on. So, Exxon Mobil
should focus on urban especially in big city such as: Hanoi capital, Ho Chi Minh
City. Moreover, target market should be restriction in group from 20 to 60 year
olds, because government bans people under 18 use motorbike and car. Meanwhile
people over 60 tend to use public transport more than private transport.
3.2 Projected sales and other financial implications:
Year
Finance
Sale
Profit
1
2
3
4
5
6
592
-3408
1200
250
2000
500
2500
1000
3000
1100
3200
1200
Vietnam consume about 365 thousand barrels per day ( EIA, 2013)
the price of a barrels oil is about $90 (CNNmoney, 2013)
So the expenditure of Vietnam for oil is about $11,826 million per year. We will
suppose that the same Cepu project in Indonesia, Exxon Mobil expends $1,300
million for exploitation and refinery in Vietnam.
Moreover, ExxonMobil spends about $2,700 million to set up office and all of
oil station system. So, total of cost Exxon Mobil is approximately $4,000 million.
In the first year, because Exxon Mobil is new brand in Vietnam, it takes about 5%
share of market. As a result, a negative profit is showed in year 1. From year 2,
with the improve of advertising and focusing on target market, Exxon Mobil takes
more share from market such as 10% in year 2, 15% in year 3, 20 % in year 4 and
remain unstable rate in following year about 20%. Moreover, as a result of
effectively refinery and exploitation activities, the amount of exploited oil will
satisfy the demand of Vietnam market and even export to another country. So,
more profit will be seen in the next years.
3.3 operations:
The operation of Exxon in Vietnam includes 2 segments: upstream and
downstream. In term of upstream, Exxon Mobil will set up a joint-venture with
Vietnam Oil Company to exploration, production, gas and power marketing. In
term of downstream refers to refine and supply products. With opening 2
segments, Exxon Mobil will minimize cost through supply chain and make a
premise to take market share
3.4 human resources
Vietnam market likes any other markets, when Exxon Mobil enters Vietnam
market, it should remember that human resources will be a vital factor which
decide the success or failure of company.
“Workforce development:- the recruitment and development of qualified
national/local employee” (ExxonMobil 2008, p.5)
So, the recruitment of Vietnamese people brings more advantage than
disadvantage for Exxon Mobil. Because, Exxon Mobil can make use of cheap
labor, even understand more about Vietnam culture and reduce risk of environment
business. Moreover, that Exxon give more jobs for local people will be receive a
good comment from community and make a condition to receive the supporting of
government likes: tax cut and so on.
3.5 entry modes:
With joint-venture method Exxon Mobil must share its technology and takes
times and effort to build relationship with local oil company. However, jointventure will be the best choice for company compare with licensing and export,
because licensing and export express less effectively and with both method Exxon
Mobil will face with tariff and non-tariff barriers which reduce significant its
profit. Moreover, the advantage is well seen in joint-venture method, it obtains a
chance for Exxon Mobil enter Vietnam oil market easily, makes use of distribution
of local oil company, shares risk with partners and even gives big opportunity to
exposure with raw material which is oil reserve that Vietnam oil company cannot
exploit.
3.6 marketing campaign
With a developing country likes Vietnam, environmental pollution more and
more become a big problem. So, marketing campaign of Exxon Mobil should
focus about product which is friendly with environment such as: unleaded petrol or
green fuel that Exxon focuses to develop. With the development of technology,
online advertisement becomes more easily and convenience. However, offline
advertisement still is main channel for marketing in Vietnam like: TV, leaflet. So,
the combine between online and offline advertisement as well as with discount
program will be the best campaign for Exxon Mobil.
4. Conclusion
Vietnam is in the early era of the development, laws which protect the rights
of MNEs is still weak and limit. However, with the incentive policy like: tax cut,
reducing Tariff and non-tariff barriers and so on, Vietnam become an attractive
destination for every MNE, Exxon Mobil is one of them. In 2011, Vietnam held a
ranked 35th in the world about amount of oil consumption and it also has a huge
amount of reserve oil which it cannot be able to explore. So, Vietnam will become
an interesting market which Exxon Mobil can make big profit in two segments:
upstream and downstream. However, it is not easily to Exxon Mobil can enter
Vietnam market. The success of company totally depends on its discipline research
and detail project into market. So, entry a new market will be always a challenge
for MNEs and even big one like Exxon.
Reference:
CNNmoney(2013). Available from http://money.cnn.com/data/commodities/
Docstoc (2011), A PEST and Porter analysis no 1. Available from:
http://www.docstoc.com/docs/78212518/?
ct=40&utm_source=docstoc&utm_medium=email&utm_term=Registration++Doc&utm_content=Registration+Confirmation+With+Doc+-+DP+-+v5++SL2&utm_campaign=Registration&alt=657d11e7-e564-4d82-9fd72b50b383a920. [Accessed April 28, 2011
ExxonMobil (2008) national content it’s the way we do business no.5. Available
from: http://www.exxonmobil.co.uk/Corporate/Files/news_pub_nc.pdf [Access
may 2008]
EIA (2013), countries Vietnam, Washington: U.S. Energy Information
Administration. Available from http://www.eia.gov/countries/country-data.cfm?
fips=VM [Accessed 12 February, 2013]
EIA(2012)Energy Information Administration: Country Analysis Briefs. Available
from http://www.eia.gov/cabs/Vietnam/Full.html [Accessed May 9, 2012]
ECR(2013) euro money country risk. Euromoney Institutional, Investor PLC.
Available from http://www.euromoneycountryrisk.com/Wiki/Vietnam
Indexmundi (2013) Vietnam Demographics Profile 2013. Available from:
http://www.indexmundi.com/vietnam/demographics_profile.html [Accessed
February 21, 2013]
Trading economic (2012), Inflation; consumer prices (Annual %) in VIETNAM.
Available from: http://www.tradingeconomics.com/vietnam/inflation-consumerprices-annual-percent-wb-data.html
Wikipedia, wiki (2013), National Diamond, Wikimedia Foundation, Inc. Available
from: http://en.wikipedia.org/wiki/National_Diamond [Accessed 24march 2013]
Bibliography
Bintang,H. (2012) ,Indonesia today. Available from:
http://www.theindonesiatoday.com/news/resources-news/resources-photo/item/
2256-exxon-s-cepu-project-construction-reaches-35.html#.UWSqMTA3vjE
Accessed December 28,2012]
ExxonMobil(2010), financial and operating overview. Available from
http://www.exxonmobil.co.uk/Corporate/Files/news_pub_ir_finstmts2011.pdf
Griffin, R.W and Pustay,M.W (2010) International Business. 6 th ed. Prentice
Hall
Global
Finance(
2012),
world’s
lagest
companies.
Available
from
http://www.gfmag.com/tools/global-database/economic-data/11935-largestcompanies.html#axzz2NnUfRcos
Rugman, A.M. and Collinson, S. (2012) International Business. 6 th. Harlow:
Pearson Education
Appendix
Char 1 political stability and absence of violence
chart 2 GDP growth rate
( Source: ADB Asian bondsonline)
Chart 3: The Inflation; consumer prices
International Business Environment
BMG812
Assignment two
Name: DO TIEN DUNG
Student Number: B00644271
Lecturer: Daniel Hagan
Due date: April 10, 2013
Word count: 1810 words
1.Introduce
Exxon Mobil, Which is a big renowned MNE, always stands in top 3 biggest
companies following the assessment of Global finance: the Fortune Global 500, the
Financial Times Global 500 and the Forbes 2000. Behind the successful of Exxon
is an excellence operation goes with discipline investment. Moreover, the
advantages of Exxon Mobil’s competition come from 3 segments: upstream,
downstream, chemical which is created by a vertical integration. It also brings for
company a benefit in supply chain from exploration, refinery to supply process.
However, the success of a company, when it enters new market, not only depends
on its competitive position but also the level of foreign market understanding. So,
in this report, we will analysis and make a plan which express how Exxon give a
discipline assessment for Vietnam oil market before entering.
2.1 Reason for entering Vietnam market
To have a plan to enter any new foreign market, Exxon Mobil bases on financial
tool to research and assess it carefully for example PESTLE analysis which is a
useful and necessary tool to assess new market, so we will find out how PESTLE
framework expresses in Vietnam market. PESTLE analysis includes 6 elements
which effect on the macro environment of any market.
Political factors:
“Vietnam has only one party state controlled by the communist party. Hence,
there is more likely to be higher central and less autonomy control for any
organization intent to do their business in Vietnam.” (Docstoc, 2011)
However, in 1986 Vietnam performed economic renovation and became the
150th member of the world trade organization in 2007, which are two turning points
effect on the boost of Vietnam economy.
“This reform policy opened a new regime marked by lower by lower inflation
rate and higher economic growth. It also provided a lot of incentive issues to attract
FDI inflow such as reducing the import/export tariff, reducing the poverty rate,
encourage foreign invested sector and private invested sectors; lowering foreigncurrency surrender rate, lowering the restriction barriers and some other guarantees
from the government” (Docstoc, 2011)
Furthermore, Vietnam has political stability and absence of violence stand
second position in ASEAN 6 recently (appendix chart 1). As a result, its market is
attractive destination for every MNE. Potential Impact: in upstream Vietnam
government encourage ExxonMobil invest, exploit and refine oil on South China
Sea which has big oil reserves in the world. Although South China Sea is disputed
between Vietnam and china, if ExxonMobil perform contract they will have big
profit. Besides, ExxonMobil can enter Vietnam market through joint-ventures or
production sharing contracts which government gives a lot of incentives.
Economic factor:
“Vietnam is a developing economy in the Southeast Asia. In recent years, the
nation has been rising as a leading agricultural exporter and an attractive foreign
investment destination. Vietnam's key products are: rice, cashew nuts, black
pepper, coffee, tea, fishery products and rubber. Manufacturing, information
technology and high-tech industries constitute a fast growing part of the economy.
Vietnam is also one of the largest oil producers in the region.” (Trading economic,
2012)
The development about economics of country usually express through 2
indexes: GDP growth rate (appendix chart 2) and inflation rate( appendix chart 3) .
Particularly:
GDP: “Gross Domestic Product (GDP) for 2011 was USD 115 billion, which
increased from USD 101.6 billion in 2010”. (ECR, 2013)
“The Inflation; consumer prices (annual %) in Vietnam was last reported at
18.68 in 2011, according to a World Bank report published in 2012” (trading
economic, 2012)
Potential impact: before investing into Vietnam, Exxon Mobil has to prepare for
negative elements likes: low interest rates, weak currency exchange rates and high
inflation. However it is not big problem with Exxon Mobil in term of upstream
activities, contrarily Exxon Mobil will have advantage when it goes into jointventures with Vietnam petroleum to exploit and refine oil, before exporting oil
over the world
Social factor:
“The population of Vietnam is about 91,519,289 (July 2012 est.). Age structure
is 15-24 years: 19% (male 8,974,221/female 8,400,162), 25-54 years: 44.1%
(male
20,130,321/female
2,720,235/female
20,205,400),
3,281,666).
Languages
and
55-64
Vietnamese
years: 6.6%
(official),
(male
English
(increasingly favored as a second language). Education expenditures are 5.3% of
GDP (2008). Literacy occupy 94% total population” ( Indexmundi, 2013)
Due to the globalization, the backward thinking is eraser step by step, although
good national characters still maintain. Potential impact: it is crucial for
ExxonMobil to make a good relationship with local government as well as local
people. This is an important step to take good comment from community and apply
for incentive policy of local government.
Technological factor: with the development of technology, Mobil phone and
computer is a vital part of Vietnamese people. More and more people and
companies are in technology and technical gadgets. After becoming a member of
the world trade organization, Vietnam continues to open for adopting new
technologies with a lot of encouragement policy likes: tax cut, reducing land lease
price, electricity and so on. Potential impact: technology market in Vietnam are
currently improving, Vietnam is in the early stages of development. So, machines
and technology about exploiting and refining oil are mainly import. This is a
chance for ExxonMobil which it transfer new technology for Vietnam to receive
incentive policy from government.
Legal: although Vietnam’s legal system is progress, the law which protects for
foreign investor is limit. Moreover, they still have legal restrictions for market
entry, so Exxon Mobil should be aware the difficulty they must face before
entering.
Environmental factor:
Vietnam, which is tropical country, is usually faced to natural disasters such as
typhoon. Its coastline is more than 3,400 km and its area of South China Sea have
huge amount of oil reserve that still do not discover. Moreover, with the complex
about geographical terrain is obstacle for transport link between drilling place in
sea and oil refinery in land.
2.2 The attractiveness of Vietnam market
In this part, the attractiveness of Vietnam market will be determined through
analyzing 4 elements of Michael Porter’s Diamond and Market Intelligence
Report.
Market intelligence stands in the term of competitive insight and market insight.
Competitive insight: in Vietnam technology is quite old fashion, the refinery is
limit. As a result, the cost of products is high and products mainly suffer a
preliminary treatment. So, the profit of Vietnam Oil Company is low. Market
insight: “Vietnam oil market consumption is about 365 thousand Barrels per day
and stand in the 35th ranked over the world”. (EIA, 2013)
It is an attractive market for Exxon that Exxon bases on high technology to enter
market and gives for customer a friendly environmental product.
Porter’s Diamond:
Vietnam factor conditions: Vietnam is developing country, the level of skill
labor and technology is improved step by step. However the cost of labor is quite
cheap which makes a good condition for every MNE entering Vietnam market that
it reduces its cost. “According to Oil & Gas Journal (OGJ), Vietnam now ranks third
in terms of proven oil reserves for the Asia-Pacific region” .(EIA, 2012)
Demand conditions: in the early of developing period, the population of
Vietnam and the private transports increase dramatically, as a result, the oil market
is very demanding. Although, related and supporting industries are limit for
instance: currently, Vietnam has only one oil refinery in Quang Ngai province and
the technology of oil exploitation is quite old, Vietnam set up joint-ventures with
huge oil MNEs over the world like: japan, Russian oil company to improve the
supporting activities for oil industries. Domestic Oil Companies in Vietnam is
quite effectively; they not only supply enough oil for domestic market, but also
tend to expand foreign market such as: Japan, Thailand, China and so on. After
entering WTO, in the next time Vietnam will open oil market, it is an opportunity
for huge oil MNEs like: ExxonMobil penetrates, set up a business and find more
profit.
(Wikipedia,2013)
3. ExxonMobil’s market entry strategy:
3.1 Target market
Despite the fact that Vietnam is developing country, the development is mainly
in urban with the improvement of transport system which includes both public and
private transport likes: car, motorbike, bus, airport and so on. So, Exxon Mobil
should focus on urban especially in big city such as: Hanoi capital, Ho Chi Minh
City. Moreover, target market should be restriction in group from 20 to 60 year
olds, because government bans people under 18 use motorbike and car. Meanwhile
people over 60 tend to use public transport more than private transport.
3.2 Projected sales and other financial implications:
Year
Finance
Sale
Profit
1
2
3
4
5
6
592
-3408
1200
250
2000
500
2500
1000
3000
1100
3200
1200
Vietnam consume about 365 thousand barrels per day ( EIA, 2013)
the price of a barrels oil is about $90 (CNNmoney, 2013)
So the expenditure of Vietnam for oil is about $11,826 million per year. We will
suppose that the same Cepu project in Indonesia, Exxon Mobil expends $1,300
million for exploitation and refinery in Vietnam.
Moreover, ExxonMobil spends about $2,700 million to set up office and all of
oil station system. So, total of cost Exxon Mobil is approximately $4,000 million.
In the first year, because Exxon Mobil is new brand in Vietnam, it takes about 5%
share of market. As a result, a negative profit is showed in year 1. From year 2,
with the improve of advertising and focusing on target market, Exxon Mobil takes
more share from market such as 10% in year 2, 15% in year 3, 20 % in year 4 and
remain unstable rate in following year about 20%. Moreover, as a result of
effectively refinery and exploitation activities, the amount of exploited oil will
satisfy the demand of Vietnam market and even export to another country. So,
more profit will be seen in the next years.
3.3 operations:
The operation of Exxon in Vietnam includes 2 segments: upstream and
downstream. In term of upstream, Exxon Mobil will set up a joint-venture with
Vietnam Oil Company to exploration, production, gas and power marketing. In
term of downstream refers to refine and supply products. With opening 2
segments, Exxon Mobil will minimize cost through supply chain and make a
premise to take market share
3.4 human resources
Vietnam market likes any other markets, when Exxon Mobil enters Vietnam
market, it should remember that human resources will be a vital factor which
decide the success or failure of company.
“Workforce development:- the recruitment and development of qualified
national/local employee” (ExxonMobil 2008, p.5)
So, the recruitment of Vietnamese people brings more advantage than
disadvantage for Exxon Mobil. Because, Exxon Mobil can make use of cheap
labor, even understand more about Vietnam culture and reduce risk of environment
business. Moreover, that Exxon give more jobs for local people will be receive a
good comment from community and make a condition to receive the supporting of
government likes: tax cut and so on.
3.5 entry modes:
With joint-venture method Exxon Mobil must share its technology and takes
times and effort to build relationship with local oil company. However, jointventure will be the best choice for company compare with licensing and export,
because licensing and export express less effectively and with both method Exxon
Mobil will face with tariff and non-tariff barriers which reduce significant its
profit. Moreover, the advantage is well seen in joint-venture method, it obtains a
chance for Exxon Mobil enter Vietnam oil market easily, makes use of distribution
of local oil company, shares risk with partners and even gives big opportunity to
exposure with raw material which is oil reserve that Vietnam oil company cannot
exploit.
3.6 marketing campaign
With a developing country likes Vietnam, environmental pollution more and
more become a big problem. So, marketing campaign of Exxon Mobil should
focus about product which is friendly with environment such as: unleaded petrol or
green fuel that Exxon focuses to develop. With the development of technology,
online advertisement becomes more easily and convenience. However, offline
advertisement still is main channel for marketing in Vietnam like: TV, leaflet. So,
the combine between online and offline advertisement as well as with discount
program will be the best campaign for Exxon Mobil.
4. Conclusion
Vietnam is in the early era of the development, laws which protect the rights
of MNEs is still weak and limit. However, with the incentive policy like: tax cut,
reducing Tariff and non-tariff barriers and so on, Vietnam become an attractive
destination for every MNE, Exxon Mobil is one of them. In 2011, Vietnam held a
ranked 35th in the world about amount of oil consumption and it also has a huge
amount of reserve oil which it cannot be able to explore. So, Vietnam will become
an interesting market which Exxon Mobil can make big profit in two segments:
upstream and downstream. However, it is not easily to Exxon Mobil can enter
Vietnam market. The success of company totally depends on its discipline research
and detail project into market. So, entry a new market will be always a challenge
for MNEs and even big one like Exxon.
Reference:
CNNmoney(2013). Available from http://money.cnn.com/data/commodities/
Docstoc (2011), A PEST and Porter analysis no 1. Available from:
http://www.docstoc.com/docs/78212518/?
ct=40&utm_source=docstoc&utm_medium=email&utm_term=Registration++Doc&utm_content=Registration+Confirmation+With+Doc+-+DP+-+v5++SL2&utm_campaign=Registration&alt=657d11e7-e564-4d82-9fd72b50b383a920. [Accessed April 28, 2011
ExxonMobil (2008) national content it’s the way we do business no.5. Available
from: http://www.exxonmobil.co.uk/Corporate/Files/news_pub_nc.pdf [Access
may 2008]
EIA (2013), countries Vietnam, Washington: U.S. Energy Information
Administration. Available from http://www.eia.gov/countries/country-data.cfm?
fips=VM [Accessed 12 February, 2013]
EIA(2012)Energy Information Administration: Country Analysis Briefs. Available
from http://www.eia.gov/cabs/Vietnam/Full.html [Accessed May 9, 2012]
ECR(2013) euro money country risk. Euromoney Institutional, Investor PLC.
Available from http://www.euromoneycountryrisk.com/Wiki/Vietnam
Indexmundi (2013) Vietnam Demographics Profile 2013. Available from:
http://www.indexmundi.com/vietnam/demographics_profile.html [Accessed
February 21, 2013]
Trading economic (2012), Inflation; consumer prices (Annual %) in VIETNAM.
Available from: http://www.tradingeconomics.com/vietnam/inflation-consumerprices-annual-percent-wb-data.html
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Appendix
Char 1 political stability and absence of violence
chart 2 GDP growth rate
( Source: ADB Asian bondsonline)
Chart 3: The Inflation; consumer prices