International Business: Analyzing Power Root Berhad's Entry into Vietnam Market

Running Head: INTERNATIONAL BUSINESS 0
INTERNATIONAL BUSINESS
Student name
2-17-2019

INTERNATIONAL BUSINESS 1
Executive summary
The company selected for the assignment to critically analyze the aspects of international
marketing was Power Root Berhad. Power root Berhad is a Malaysian organization founded in
1999, dealing in an herbal energy drink. This is an international company dealing in various
regions like the Middle East, Korea, Indonesia, Singapore, China, Hong Kong, Taiwan, Japan,
and Thailand. Major reasons for going international for the company was saturated domestic
market, increased scope of the product worldwide, sales growth decreasing, and to gain
economies of scale. The company decided to enter Vietnam market for expanding business.
The business tools and frameworks applied in the report were PESTLE analysis, and porter’s
five force model for external environment analysis. After anylzing the inter and external
analysis, the most approachable mode of entry to Vietnam was joint venture, the reason being the
company do not have good brand awareness, due to which joint venture with a popular company
of Vietnam, that is already established would help the company to create brand awareness and
could be helpful in developing trust among the customers, as the goodwill of the joint venture
can be used.
Some of the major recommendation for the company to gain competitive advantage included
New product development, Product differentiation, Extensive promotional strategy, Cost
leadership, and Quality management

INTERNATIONAL BUSINESS 2
Contents
Executive summary.........................................................................................................................1
Introduction to organization............................................................................................................3
Business tools and market selection analysis..................................................................................5
PESTLE analysis.........................................................................................................................5
Porter’s five force model.............................................................................................................8
Mode of entry to the foreign market................................................................................................9
SWOT analysis..........................................................................................................................10
Strengths................................................................................................................................10
Weakness...............................................................................................................................10
Opportunity............................................................................................................................11
Threats/risks...........................................................................................................................11
Mode of entry............................................................................................................................12
Management responses..................................................................................................................13
Recommendations to gain competitive advantage........................................................................14
References......................................................................................................................................16

INTERNATIONAL BUSINESS 3
Introduction to organization
Going international is a very crucial plan for an organization, as the company has to analyze the
internal and external environment. The company selected for the assignment to critically analyze
the aspects of international marketing is Power Root Berhad. The company deals with instant
beverages like coffee (businessjargons, 2018).
Power root Berhad is a Malaysian organization founded in 1999, dealing in an herbal energy
drink. This is an international company dealing in various regions like the Middle East, Korea,
Indonesia, Singapore, China, Hong Kong, Taiwan, Japan, and Thailand (powerroot, 2019). For
this report, this company would be considered to enter a new foreign market that is Vietnam.
Objectives/reasons for going international
 Saturated market – the market in which the company already exist was saturated, that is
the scope for growth in the existing nation was not found, for which the company decided
to expand the foreign market, and increase the customer database through entering a new
market
 The company’s mission is to provide techno-savvy and innovative products to meet
customer’s need while expanding the business in the international market, for creating the
brand name globally. To accomplish the vision and mission of the company, the best
approach would be to find opportunities in the foreign market to target maximum
customers
 Increased scope of the product worldwide, the obesity level is increasing, especially
among youth, which led to an increased scope of energy and herbal drinks. This is one of
the major reason for the company to target nations with higher obesity rate and gain
opportunity from the same. The company’s one of the most popular herbal energy drink,
that is Tongkat Ali, which can be offered by the company to international customers
suffering such health issues. The company is the manufacturer of Ah hauat and Alicafe
line of products.