| Abstract | Construction & mining industries are two of the most important industries of Vietnam. The
developing Southeast Asian countries in general and Vietnam in particular lay stress on
infrastructure investment. Vietnam is a developing country that has been accelerating the
pace of industrialization and modernization to become an industrial country in 2020. The
government of Vietnam has moved to implement the structural reforms needed to
modernize the economy and to produce more competitive, export-driven industries. Beside
construction industry, mining industry over the last ten years has emerged as one of the
fastest growing industries of Vietnam in which coal dominates.
According to the government of Vietnam, construction & mining industries are expected to
keep on growing at annual rates of 15-20% right up till 2020 which will bring in large
business opportunities for suppliers of construction & mining equipment. Thus, the
competition between suppliers in the industry is forecasted to become fiercer in future.
In this regards, this paper aims to help V-TRAC Infrastructure Company Ltd. (V-TRAC),
one of leading suppliers of construction & mining machines in Vietnam to increase sales to
outperform its competitors. V-TRAC 2009 machines sales was US$28.5 million and the
company is looking forward to increase sales to US$50 million by 2012 to regain its
market leadership lost to competitor Komatsu since 2006. Machine sales dominates the
growth of V-TRAC, thus, the essential objective is to generate a positive and sustainable
growth for the company over the long term.
The research starts with an overview of construction & mining prospects followed by
overview of V-TRAC/Caterpillar and V-TRAC last year’s machine sales performance.
Next, more details on today’s competition between existing construction & mining
machines suppliers in the Vietnam market.
Data in this research was collected from V-TRAC experience and practice, financial
statements, internal strategic analysis, its competitors’ websites, customer survey,
Caterpillar worldwide shipment reports and other reliable sources from local authorities.
This research will also analyze root causes leading to customer dissatisfaction which has
obstructed the machine sales growth. The study is concluded with recommendations and
action programs to increase machine sales of V-TRAC in today turbulent marketplace. |