Expansion of Sukin Skincare in Vietnam: Performance Management

This essay analyzes the international expansion of Sukin, an Australian natural skincare brand, into the Vietnamese market. It begins with an introduction to Sukin and its products, followed by a justification for choosing Vietnam as the target market and the subsidiary entry strategy. The core of the essay focuses on international performance management, outlining the challenges Sukin faces, using Porter's Five Forces model to analyze external threats and internal challenges. The essay provides recommendations to address each challenge, supported by relevant theories and academic literature, and concludes by summarizing key points. The analysis considers factors such as competition, consumer behavior, and the Vietnamese market environment to propose a comprehensive expansion strategy.

Running Head: EXPANSION OF SUKIN IN VIETNAM
EXPANSION OF SUKIN IN VIETNAM
Name of the Student
Name of the University
Author Note

1EXPANSION OF SUKIN IN VIETNAM
Introduction:
Sukin is one of the largest natural skin care product brand of Australia. The Company
was formed on 2007 and from then they emerged as Australia’s best selling natural skin care
brand. As of now, Sukin makes more than 60 products for top to toe of our body. The
Company is fully Australian made and owned and it is run by a well developed young
marketing team (Hsu, Chang and Yansritakul 2017). The formation of the company was with
an idea to launch a skincare brand which will care for us without harming the nature and
other animals. As weaved in their tagline, “Skincare that doesn’t cost the Earth.”
Discussion:
The Entry Strategy of Sukin –
Over the past few decades, the marketing strategy has been an integral part of the
marketing research of any business and marketing literature (Simpson et al. 2016). The
opening strategy of Sukin in Vietnam can be defined shortly as, the goals to achieve by an
organization by any means. To develop the target marketing strategy, at first Sukin needs to
complete the process of understanding the market environment and the competitive space in
the national market of Vietnam (O’Mahony and Lobo 2017). In order to, satisfy the consumer
needs in the new country, the Company needs to understand the marketing environment and
based upon that follow up the processes that can make the company grow further in the
marketing situation, therefore the company can adapt to the strategies and meet the new
market challenges and opportunities (Nguyen 2015).
According to the holistic strategic marketing plan, it consists of three main stages.
Such as – Strategic Analysis, Strategic Implementation and Strategic Choice (Hsu, Chang and
Yansritakul 2017). The first one, helps the marketers to understand the strategic position of a
company in terms of internal competencies and several other external environmental

2EXPANSION OF SUKIN IN VIETNAM
influence (Simpson et al. 2016). On the basis of the Analysis, strategic implementation plays
a vital role in the strategic actions with the tactical plans and the strategic choice helps to
generate the strategic options to evaluate for the company, as how the strategies going to be
implemented and how the implemented strategies going to make a difference in the profit
share of the company (Igarashi 2016).
To describe about International Performance Management of Sukin in order to
expansion of the company in Vietnam. The plan needs to do an External and Internal
Challenges’ Analysis to make an outline of strategies (O’Mahony and Lobo 2017).
External Challenges:
In terms of the external analysis of Sukin, the Porter’s Five Forces model is used to
elaborate it as close to the real ground as possible.
Threat of a Substitute Product -
Sukin is a natural skin care brand of Australia. Their main idea is based on natural
skin care products. Therefore, any other natural skin care brand of Vietenam like Nau Nau,
Skinna, Herpas, The Herbal Cup, Green Garden and so on will be the major competitors of
Sukin in terms of sharing market in Vietnam (Nguyen and Dekhili 2019).
Threat of New Entrants –
The entrance of new brands in the skin care segment can be a possible threat to Sukin,
and if their pricing and quality come near the same price and quality of the Australia’s largest
selling skin care brand Sukin (Hsu, Chang and Yansritakul 2017). That can be a devastating
fall in the international market.
Suppliers’ Bargaining Power –

3EXPANSION OF SUKIN IN VIETNAM
The main sources of all the products of Sukin are the Nature. Thus the company is
fully based on the suppliers of natural products and their power to bargain the prices of the
raw materials can affect the production of all their products in the foreign land.
Buyers’ Bargaining Power –
An individual buyer does not counted as a threat as to have no power of bargaining.
The large retailer buyers like Big – C in Vietnam possess the power of bargaining as being a
buyer of large quantity of their products, but it can be lessened by the end consumer brand
loyalty (Simpson et al. 2016).
Rivalry with Existing Firms –
At present, some of the rival companies of Sukin in Vietnam is Nau Nau, Skinna, and
Herpas. Therefore, having large varieties of natural skin care products as the other brands,
may be a little more or less. Moreover, being the largest skin care brand of Australia also
made some rival brands in the home country as well. Therefore, Sukin will be facing more
challenges in the Vietnamese skin care product segment (O’Mahony and Lobo 2017).
Internal Challenges:
External analysis generally deals with the outer aspects like threats and benefits of a
company faces in the market. Whereas, the internal analysis examines a company’s internal
environment in order to assess the resources and competitive advantages. An internal analysis
is used for the identification of the strengths and weaknesses of a company. This knowledge
will help to make the strategic decisions to manage and carry out well with the strategy
formulation and that helps in execution process (Hsu, Chang and Yansritakul 2017).
Recommendation:

4EXPANSION OF SUKIN IN VIETNAM
Every business has definite target consumer and certain market environments. The
success of a business expansion is depended wholly in the marketing strategy took by the
company to avail the products of the brand in the market of the country they are expanding
in. Some of the environment factors that impacts on the expansion are like the political,
economic, social, and technological development in the industries of the country they are
planning an expansion.
Conclusion:
This paper studied upon Sukin, the largest natural skin care brand of Australia and it
is described in a detailed way to state clearly the positive and negative impacts of the
company in the process of expansion to a new Country (Simpson et al. 2016). The paper is
parted in two different ways, External and Internal Challenges. In the External Challenges,
the direction is pointed at the threats of the natural skin care product segment related to
Sukin. On the other hand, the Internal Challenges helps to describe the resources of the
Company and the benefits of having the Brand Identity, the Production Process and the Brand
Value created in the Home Country.

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