Competitive analysis of Vietnam dairy industry

Abstract

Vietnam dairy industry has gained an impressive growth both in value an volume in the recent years. The domestic dairy market has advantageous conditions for development (e.g. the rapid increase in consumer demand, size of dairy enterprises or the expansion trend in cow breeding industry etc.). However, the domestic dairy industry are faced with multiple disadvantageous conditions that constrain the development potential (e.g. the irrational demand of consumers and inconsistency in management of authorities etc.) The author employs Porter’s diamond model to analyze 4 factors, including i) Factor conditions; ii) Related and supporting industries; iii) Demand conditions and; iv) Firm strategy, structure and rivalry. Results shows that the Vietnam dairy industry owns competitive advantages and potential for development. This research provides stakeholders with an overview of competitive advantages of the Vietnam dairy industry, thereby having suitable strategies.