Tiparos-- fish sauce

Group 7 Section 402

IBM3713

Tang Sang Ha Company Limited was founded in 1910 by Mr.Laichiang Sae Tang in Chonburi

He experimented various kinds of fishes and later concluded that Anchovy is the most suitable.

Chanavudh V. 5236806

By 1919, Tiparos fish sauce was first put into the factory in the Hokkian pier, Chonburi.

Tiparos fish sauce was first exported in 1968 Tiparos fish sauce is now being exported to many

countries around the world including Hong Kong, Japan, Taiwan, Korea and the United States.


Tiparos fish sauce is now manufactured by the automated machines and computer to minimize the deviation of quality from human.

Currently has 3 factories: o 2 in Chonburi and 1 in SamutPrakarn.


Tiparos Factories


Tiparos fish sauce is fitted in food industry Food industry in Thailand is known to be the

kitchen of the world. In 2010, Thailand was ranked as the 7th largest

food exporter which was around 2.7% of the country GDP.


The main focus is on the people aged from 15 to 65.

The occupation of housewife and chef. Who gives importance on ingredients quality.


of Tiparos

Luederat C. 5236813

Leader and largest producer and exporter. Leader in modern production Well-known as the excellent quality of product

more than 20 years.

Luederat C. 5236813

Resources and Capabilities use expert to control all processes skilled & experienced employees

Luederat C. 5236813

Resources and Capabilities High technology automated

machines 35,000 bottle per hour

Luederat C. 5236813

Resources and Capabilities Factory located in Chonburi – rich of Anchovy

Luederat C. 5236813

Differentiation Strategy focus on quality, cleanliness, and safety primary aim to benefit consumers use quality as a identity to compete in the market

Luederat C. 5236813

Phanthira C. 5213779

Iran Philippines Vietnam

Government Type

Islamic Republic Republic Communist Party

Laws & Regulations

Legal right exactly the same manner

Treated the sameand must register

Two separate laws

Trade agreements

Indian Ocean Rim Association for Regional Cooperation (IOR-ARC)

The Asia-Middle East Dialogue (AMED)

ASEAN ASEAN Free

Trade Area (AFTA) Asia-Pacific

Economic Cooperation (APEC)

WTO

ASEAN ASEAN Free Trade

Area (AFTA) Asia-Pacific

Economic Cooperation (APEC)

WTO Mekong–Ganga

Cooperation (MGC)

The Greater Mekong Subregions (GMS)

Political Economic SocialTechnologic

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Economic system Market economy Mixed economy Market economy

GDP (purchasing power parity) (2010 est.)

$818.7 billion $351.4 billion $276.6 billion

Real GDP Growth (2011 est.)

2.5% 4.5% 5.8%

Inflation(2011 est.)

18.3% 4.5% 18.7%

Annual Disposable Income

$267,183.8 million

$152,901 million $76,367.6 million

Ease of doing business ranking (out of 184 countries)

140 134 90


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Population(July 2011 est.)

77,891,220 million

101,833,938 million

90,549,390 million

Language Persian Filipino (based on

Tagalog) English VietnameseEnglish (as 2nd language)

French, Chinese, Khmer

Dominant Religion

Muslim Roman Catholic Buddhism

Dietary Preferences

Herbs Spices

Tasty Not too spicy

Balance eating Main

condiment is fish sauce (nuoc mam)


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R&D Activity Many barriers Lack of proper

infrastructure

Lack of R&D personnel in industry

Government helps

Still small in scale

MediaPress freedomTelevisionInternet users

Some restrictionPopular (80% viewers)

32.2 million

Under the constitution

Dominant 30 million

Strong control Dominant 28.6 million


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Source: Adapted from http://www.heritage.org/Index/visualize

Vietnam Vietnam

Fu-Chia T.5236925

Population of around 90,549,390

One of the fastest- growing economies in Southeast Asia

Country is expected transformed into lower-middle income country in the new future.

Fu-Chia T.5236925

In 2011, Fish sauce market in Vietnam is worth around 6,664.6 billion VND ( $300 million )

Fermented fish sauce or nuoc mam is a staple.

Most common cooking ingredient contains many, small unbranded

local products whose goods are homemade and sold in traditional wet markets at ultra low price points.

As the population’s disposable income continues to increase, the market is expected to shift towards branded fish sauce consumption, especially in urbanized areas.

Fu-Chia T.5236925

Branded & packaged Fish Sauce will continue to grow in Vietnam due to certain market-related trendso Demand for quality products

• Vietnamese consumers are more willing to pay for safe and high quality products.

o Better product offerings• Fish sauce now comes in different sizes and

intensity

o Room for more penetration• The consumption of fish sauce in Vietnam is

ever increasing

Fu-Chia T. 5236925

The Bargaining Power Of Customers- HIGHo many brands of fish

sauce readily, available for purchase

o Low cost of switching

o Other price factors

Fu-Chia T. 5236925

The Bargaining power of Suppliers – LOWo Tiparos made from

small, marine fish such as anchovies, sardines, squids

o Fishes are abundant and are widely caught by fisherman throughout the coastline of Thailand

Fu-Chia T. 5236925

Substitute of products and Complements- Extremely LOWo Fermented fish

boasts a unique taste and odor. There are very few condiments that can produce such imitation.

Fu-Chia T. 5236925

Threat of New Entrants- MODERATE to HIGHo process of manufacturing

branded, bottled fish sauce requires very little funding

o Entry barriers are relatively low due to minimal technology and capital expenditure requirements

o Abundant supply of raw materials and locally made fish sauce

Fu-Chia T. 5236925

Degree of competitive rivalry- HIGHo Tiparos will face

intense competition in Vietnams

o those locally made unbranded fish sauce.

o some large manufacturing firms who have capture large market share

Fu-Chia T. 5236925

Shottsuru by Moroi Brewery (Japan)

Squid Brand (Thailand)

Silver Swan (Philippines)

Fu-Chia T. 5236925

Masan Corporationo Chin Su Fish Sauceo Nam Ngu Fish Sauce

Lien Thanh Co.

Fu-Chia T. 5236925

Viet Huong Co.o Three Crabs Brando Flying Lion

Fu-Chia T. 5236925


Strengthso Factory location near to the resources needed for

productiono Abundance of resource in the areao High technology comparing to competitors o Long history of a company has created the strong

culture in the companyo Employees are experienced as they work in a company

for a long period of timeo Stronger brand image than competitors


Weaknesses o Company has narrow a product lineo Operate as family business which could slow down the

development of the companyo The long tradition that the company has might

encourage the company to avoid change which could be harmful to the company itself

o The price of Tiparos fish sauce is higher than competitors


Opportunitieso The development of ASEAN allows Tiparos to export

much easier and at the cheaper price than before.o Thai food is becoming more and more well known to the

world which as well introduce fish sauce to the world.o There are more Thai people living around the world

which create new sections of demand.


Threatso There are many competitors both existing and new

entrants.o Trade agreements allow foreign brands to enter both

Thai market and foreign markets.o Labors in many countries are still cheaper than Thailand

which could give them a more competitive price than Tiparos.


International strategy Selling global products and using similar marketing

techniques. Limited adjustment. Upstream in competitive advantage in value chain. remain concentrated at home country.

Because; Cost savings of centralization offset the lower costs of higher

quality raw materials/labor from worldwide locations.

Panita I. 5125402

Mode Advantage Disadvantages

Exporting - No knowledge spillovers- Can control the over use of assets in production activities.- Have the cheapest cost of transportation.- No investment is required.- Easy to manage and sell a product in international market.

- Trade barriers & tariffs add to costs.- View as outsider.

Licensing - Minimizes risk and investment.- Speed of entry.- Able to circumvent trade barriers.

- Lack of control over use of assets.- Licensee may become competitor.- Knowledge spillovers.- License period is limited.

Joint Ventures

- Overcomes ownership restrictions and cultural distance- Combines resources of 2 companies.- Potential for learning.- Less investment required.

- Difficult to manage.- Dilution of control.- Greater risk than exporting and licensing.- Knowledge spillovers- Partner may become competitor.

Direct Investment

- Greater knowledge of local market.- Can better apply specialized skills.- Minimizes knowledge spillovers.- Can be view as insider.

- Higher risk than other modes.- Requires more resources and commitment.- May be difficult to manage the local resources.

Panita I. 5125402

Mode Advantage Disadvantages

Exporting - No knowledge spillovers- Can control the over use of assets in production activities.- Have the cheapest cost of transportation.- No investment is required.- Easy to manage and sell a product in international market.

- Trade barriers & tariffs add to costs.- View as outsider.

Exporting – Indirect exporting Using intermediaries; EMC and ETC.

Panita I. 5125402

International Division in a Domestic Product International Division in a Domestic Product StructureStructure

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Ethnocentric: managers and technical workers follow the parent organization's home-country practices.

Benefits:

– Greater control and loyalty.

– Key decisions centralize.

No need an expatriate manager.

Panita I. 5125402

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Tiparos-- fish sauce