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Viet thuong’s Industry Business

Report

Date: 08-09-2019

Class: G05

Lecturer: Irfan Ulhaq

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Table of Contents

I. Introduction................................................................................................................................................................. 2
II. Analysis....................................................................................................................................................................... 3
Segmentations and Sales channel..............................................................................................................3
Vision and strategies...................................................................................................................................4
Strategy of developing online music platform and Evaluate..................................................................4
Strategy of developing online music platform and Evaluate..................................................................4
Importance of cybersecurity......................................................................................................................6
III. Recommendation.................................................................................................................................................. 6
To handle cybersecurity for online music platform................................................................................6
Promote to Vietnam Market......................................................................................................................7
IV. Conclusion.............................................................................................................................................................. 7
V. References................................................................................................................................................................... 7

I. Introduction

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In Vietnam, until 1990, the instrument industry has been generally small through the whole of
Vietnam, but after that, as Yamaha first entered the Vietnamese market, the instrument
industry has gradually developed as demand for the instrument has increased. To date, the
piano and keyboard are the most popular instrument. (Irfan 2019)
Viet Thuong Music was founded in 1993 and officially established in 1996, rooted in
Vietnam's first private music school, Truong Sui Nhac. Mr. Nguyễn Thái is CEO and has one
deputy CEO. In 2016, it merged its subsidiaries and it has developed into an international
music education service company with 5,000 products and 50 brands in 2017 and it currently
has 26 retail stores and schools, 200 dealers, 76 authorized dealers in Vietnam. (Viet
thuong.vn 2019)

The company has begun their 5 years strategy which aim to install 100 retail stores and
30dealers per years and finally become the leader in Vietnam.
The purpose of this report is to analyze the company's current strategy and assess whether the
online music learning platform strategy they are developing is appropriate for the company. It
is also about analyzing online classes and how to protect customers' privacy rights. Finally,
the main task of the report is to create the right advice for their online platforms to succeed.
(Irfan 2019)

II. Analysis
Segmentations and Sales channel

According to the dataset (Irfan 2019), viet Thuong’s


Music
Pro
Educati segmentations are categorized into three which are
Audio
andon Musical Musical instruments, Pro Audio & Studio and Music
Studio7% Instrum education. In the musical instruments business, its
35% ents
58% average revenue percentage 58% and it has 4
products which are Digital piano & Keyboards,
Piano, Guitar & Gears and Drum & Percussion. Pro
Audio & Studio has 35% of the average revenue and
divided into Studio equipment, Pro Audio and
Figure 1 , The Percentage of Total Accessories. For the last, this company offers
Segmentation Revenue for recent 5 years Music classes such and Miscellaneous Items in
(Irfan 2019)
Music education.

There are 4 channels which are Retail, Wholesale, Project and Music Schools. This company
currently has 26 retail stores and schools. Music lessons are offered at their 26 retail stores.
For the Wholesale, it has about 200 dealers and 76 of them are authorized. Furthermore, they

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serve schools or organization where need to equip musical instruments or pro audio and
studio in project channel. 

Vision and strategies

Their prominent vision is to become a leader of Vietnamese musical instrument industry. For
this goal, this company has a plan which aims to success in five years. First is to have 100
music schools in Vietnam and 30 dealers every year.  In addition, Viet Thuong has a strong
passion for creating opportunities for everyone to easily approach the instruments.  
The company has consistently invested heavily in the music education industry since it
established Sui Nhac Music School in 1996. In 2000, the education system was adjusted to
meet international standards and Vietnamese sentiments in order to cooperate with the
government education sector and improve the quality of education. Recently, it launched a
strategy to equip 100 retail stores with 100 music lessons from 2017. This strategy is to
provide more advantages to customers through the expansion of music education and build
their brands so finally, they can enlarge market share. (Irfan 2019)

Strategy of developing online music platform and Evaluate

Since 2017, Viet thong has been expanding its music education business along with existing
Viet thong music schools and Suoi Nhac schools by establishing 100 music schools – stores.
Therefore, the company is also developing things that can support music education, such as
Vietnamese textbooks. Among them, they focus on the Electronic school of music which is a
platform based on the internet. This will support students at Viet Thuong Music Schools,
primary and secondary schools, as well as all students interested in music.  (Irfan 2019)

Strategy of developing online music platform and Evaluate

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Since 2017, Viet thong has been expanding its music education business along with existing
Viet thong music schools and Suoi Nhac schools by establishing 100 music schools – stores.
Therefore, the company is also developing things that can support music education, such as
Vietnamese textbooks. Among them, they focus on the Electronic school of music which is a
platform based on the internet. This will support students at Viet Thuong Music Schools,
primary and secondary schools, as well as all students interested in music. 

4,000,000.00
3,500,000.00
3,000,000.00
2,500,000.00
2,000,000.00
1,500,000.00
1,000,000.00
500,000.00
-
Retail Wholesale Project Music school Total profit

Music Instruments Pro Audio and Studio Music Education


Figure 2, Total Profit of 2018 by Business Segmentation and Channel (Ifran 2019)

Figure 3, Average Margin of product by Figure 2 from Dataset clearly illustrates


Channel(Irfan 2019)
that Music Education has the lowest
45.00% profits. Additionally, the most profitable
40.36%
instrument is about five times higher than in
35.36%
Education which is huge gap. The online
30.36%
music platform the company is creating is
mainly for students at the company's own
music schools, such as the Viet Thuong
Music Schools. Consequently, investing in
the low-profit sector is a more ultimately bad
Retail Wholesale Project Music
(Showr... (Dealer) School
choice for expanding this company.
However, Figure 2 shows that the Music
school has the highest margin rate which is 45%. This indicates that if the company's strategy
is successful, it can earn quite a lot of revenue. Therefore, If the company implement with the
strategy, they must make a lot of efforts to promote the platform and attract new customers as
well.

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Importance of cybersecurity

For customers, Cybersecurity is reliability. Companies deal with sensitive information,


ranging from customers' personal information to payment These can be at risk of theft for
many purposes from hackers. If the security of the information is compromised, it could lead
to a massive amount of indiscriminate advertising mails for customers and, in serious
situations, personal or credit card theft problems. So, this is a huge disaster for business. It is
difficult for a company that has lost its credibility to regain it.
Secondly, music lessons are creations. Therefore, if someone copy the contents without
permission, it is copyrighted. If the same post or content is reproduced without permission,
the company's earnings rate drops tremendously.

III. Recommendation

According to the article from Vietnamnews.vn, 40 % of Vietnamese companies belong to


small and medium-sized enterprises and small businesses are easily subject to cyberattacks.
(Vietnamnew.vn 2019) Viet thuong is also a small business in Vietnam. This means the
company must pay more attention to security.
To handle cybersecurity for online music platform

First, most of the thing is to prevent in advance by install anti-virus software. It is the most
effective and easy was to start protecting copyright. Recent anti-virus software can also
protect from any kind of Lansomware attack, so keeping the software up to date and using a
famous vendor is very important. Secondly, watermark. Currently, Viet thuong is using
‘YouTube’ in both ways to promote and educate. Unauthorized copying can be simply
prevented by placing a watermark on the edge of the video.

In addition, not only for video but for all your content, use encrypted data. It only allows for
legitimate users who are the company’s customers to scramble digital work. Regular backups
of the lessons can also prevent malicious encroachment.
For the private data of customers, login security needs to be increased. Login should be dual-
security and the password should be mixed with various characters to make it difficult.
Moreover, if there was an attempt to access outside of the usual IP, it is also a good idea to let
the customer know directly by their email or messenger.

Promote to Vietnam Market

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Advantage appeal
Online classes have many advantages compare to offline. For consumers, this product should
feel very attractive and new. Therefore, it should be promoted with the feature which only
online lesson can have. For example, flexible study time, cheap and diverse lessons and
teachers, and repeat learning.
The consumer target class is students
Targeting students means that it should have a purchasing value for parents. First, approach
in an educational way that parents will be interested in. For instance, improving concentration
through the piano or socialization in the ensemble. Second, focus on the semester break.
Open new programs that can appeal to parents at the end of the school such as a short-term
piano lesson or summer-time orchestra.
Obtaining new subscribers
The company also needs to secure new subscribers to establish a brand and high profits. So,
they need promotion for group users such as schools and companies. It is also a good idea to
give a free experience of the online lesson for who purchase the company's instruments.

IV. Conclusion
The music industry is growing steadily in Vietnam. The strategy for developing music
education platforms is hard to expect big growth at the rate of return now, but it can be very
profitable if they are well promoted in line with the rapidly changing times. Therefore, Viet
thuong should consider the above recommendation and apply it to the platform development

V. References

 Irfan, U 2019, 'Viet Thuong Profile-10Jul2019' PowerPoint slides, ISYS2109, RMIT University,
Vietnam.
 Irfan, U 2019, 'Viet Thuong Statistics-10Jul2019' Excel dataset, ISYS2109, RMIT University,
Vietnam.
 n.d., 'Cybersecurity important for small business too: experts', VietnamNews, 24 August, viewed 2
September 2019, <https://vietnamnews.vn/economy/524482/cybersecurity-important-for-small-
businesses-too-experts.html#fZzxSPAtQsdt1QUM.97>.