research also examines the impact of competitive advantages on these
companies’ performance. Finally, the research proposes solutions to enhance
these competitive advantages.
Date collection: The sample of all 43 building materials production
companies under Ministry of Construction has been selected. These businesses
cover four main areas in building materials production: construction glass,
sanitary ware, granite and ceramic tiles; brick and clay products.
Geographic area: The companies selected have been locating and operating
in all provinces in Vietnam.
Timing: secondary data had been mainly collected during the period 20082013. Primary data had been collected and analyzed during period 2012 – 2013.
In order to maintain market share, improve business’s effectiveness and
efficiency, it is very important to enhance company’s competitive advantages.
The questions how to help companies make the right and effective decisions to
enhance competitive advantages; which solutions can help companies improve
their competitive advantages will be more and more important not only for
business practitioners but also for researchers.
Due to the above reasons, in the current competitive environment, the
enhancement of competitive advantages for Vietnamese businesses in general and
building materials production businesses under Ministry of Construction in
particular will be urgently and strongly required.
The thesis with the title
4. Research methodology:
In order to achieve it’s objectives, there are 3 steps:
“Enhancement of the competitive advantage for building materials production
companies under Ministry of Construction” is very necessary and important
Table 1.1: Research steps
theoretically and practically.
2. Aims of thesis:
The thesis’s objectives are identifying competitve advantages of building
materials production businesses under Ministry of Construction; exploring
resources, especially intangible resources that create these competitive
advantages. The thesis’s objectives are specified by the following research
Firstly: Current competitive advantages of building materials production
businesses under Ministry of Construction?
Secondly: Which tangible and intangible resources play imprtant roles in
creating competitive advantages of building materials production businesses
under Ministry of Construction?
Thirdly: Which solutions can help to enhance competitive advantages of
building materials production businesses under Ministry of Construction?
3. Research Scope and Objectives:
Research objectives: the research objectives are competitive advantages and
the impact of intangible and tangible resources on these competitive advantages
of building materials production businesses under Ministry of Construction. The
Literature review, research
modeling, clarifying practical
and theoretical contribution of
05 company’s managers
08 current customers
05 business researchers
Specify competitive advantages;
Specify resources creating
competitive advantages for
04 focus group
customers in four main
04 focus group
managers in four main
900 manager at building
companies in four main
fields: building glass,
sanitary ware, granite
and ceramic tiles, bricks
and clay products
Check the relationship between
tangible, intangible resources
and competitive advantages.
Check the total impact of these
resources on company’s
Check the relationship between
competitive advantages and
CHAPTER 1: LITERATURE REVIEW OF THEORY ON
5. Thesis structure:
COMPETITIVE ADVANTAGES OF MANAFACTURING
Thesis includes the following components:
This chapter includes three main parts as summaried as bellows:
Chapter 1: Literature review of theory on competitive advantages of
1.1 Sources of Company’s Competitive Advantages
There are theoretically many opinions about and understanding of
Chapter2: Current development of building materials production business
under Ministry of Construction
competitive advantages, sustainable competitive advantages as well as the
Chapter 3: Research Methodology
sources of these advantages. Although there are many theories to explain the
Chapter 4: Analyze and Identify competitive advantages of building
creation of these competitive advantages but these theories can be divided into
materials production business under Ministry of Construction
Chapter 5: Solutions to enhance competitive advantages of building
materials production business under Ministry of Construction
two main streams: (a) theories explaining the creation of competitive advantages
competitiveness; (b) Theories explaining the creation of competitive advantages
from within company, including: value chain, company’s resources.
Miller & Shamsie’s research (1996) used the resource theory to analyze the
role of company’s resources on performance. Other research in Vietnam (Nguyễn
Vĩnh Thanh, 2005; Nguyễn Đình Thọ, 2008; Zhan and colleagues, 2009; Bùi
Xuân Phong, 2006; Phạm Quang Trung, 2008; Vũ Trọng Lâm, 2006; Nguyễn Kế
Tuấn, 2011) also evaluate the competitive advantages and the source of these
advantages in companies.
1.2 Literature review
1.2.1 Basic concept
Competition is the fighting among differrent economic entity (among nations,
companies) based upon the effective employment all economic resources, advanced
production technology, provision of excelent services in order to satisfy customer’s
needs by providing better quality products at resonable price compared to
company’s competitors. Competition is foundametal principle of market economy.
Competition has both plus and minus impacts.
220.127.116.11 Competitive advantages:
After review major theories about competitive advantages, it can be
summarized the common points about competitive advantages as follows:
Competitive advantages have been assessed by customer’s perception:
18.104.22.168 Competitive Advantages of Manafacturing Company
competitive advantages reflect customers or end-user’s general perception about
Production is primarily activities in the economic activities of man. Production
the value of products and services provided by company in comparison with its
is the process of making the product for use, or for commercial exchange. In the
production process, the manufacturing enterprises will have to make the decision to
Company’s competitive advantages have to be compared with its
answer the following key issues: What to produce? How to produce? To whom to
competitors: Normally, these competitors are businesses operating in the same
produce?How much does it cost to produce and how to optimize the use and
industry and in the same market.
exploitation of the resources needed to do a product?
22.214.171.124 Sustained Competitive Advantages
Sustained Competitive Advantages had been mentioned long time ago by
Ccompetitive advantages of a nation
Theories related to company’s competitive advantages
many researchers. Alderson (1965), Hamel & Prahalad (1989), Dickson (1992),
According to this theory, the competitive advantage of enterprises affected
Hall (1980) & Henderson (1983) are the authors discussed very early about
by the basic characteristics of the country. The following features will create a
sustained competitive advantages. Day (1984) is the first author mentioned about
favorable environment or difficult for domestic enterprises in the process of
strategies to help company sustain its competitive advantages. In reality, Porter
competing with foreign businesses: (a) the conditions of domestic production
(1985) mentioned officially the concept “sustained competitive advantages”
factors; (b) demand conditions in the country; (c) support and related industries
when discussing different basic strategies that can be applied by companies (low
and in the country; and (d) the strategy, structure and competitors of the
cost or differentiation strategy) to have sustained competitive advantages. Later
company. In addition, two external factors, including the impact on the business
on, this concept have been further discussed by Barney (1991) and Collins &
of government policy and the influence of opportunities also play an important
role in creating the attractiveness of the business environment in the country
126.96.36.199 Generic Competitive Advantages:
Lê Thế Giới and others (2007), generic competitive advantages come from
Theory of Five Competitive Forces in an Industry
four components: superior efficiency, superior quality, superior innovation, and
This theory was proposed by Porter (1980) to analyze the competitive forces
superior customer responsiveness. These four components are considered as
that determine competitive advantages and profitability of each industry. This
generic because any company and business can build regardless which industry
theory assumes the competitive forces in the industry, including: (1) the current
and what kind of services it provides. These four components are strongly
competitors of the business, (2) potential new entrants, (3) substitute products, (4)
the power of suppliers, and (5) the power of buyers will impact profitability and
188.8.131.52 General Company’s Strategy
According to Porter, companies that are successful in pursuing and applying
competitive advantage of firms in the industry.
Theory of Value Chain
differrent strategies normarlly have to form different business units and each of these
Porter (1985) argues that competitive advantage is formed from the internal
business unit follows one strategy. By seperating strategies for each business unit in
activities and processes of enterprises. It should be noted that competitive
terms of policies or even culture, companies can minimize the risk of being slow
advantage does not come from a separated activity but depends on and is the
result of the interaction, coordination of activities in the value chain.
The value chain is considered as a useful tool in finding out the source of
components: customer orientation (a focus target-buyer), competitor orientation
competitive advantage. However, many researchers, which is typical Barney
consisting of existing competitors and potential competitors, interfuntional
(2002) argues that the use of the value chain is difficult to detect special
coordination among differrent . Boris and CTG (2010) added the concept of internal
resources, intangible nature, but has an important role in creating competitive
market orientation based on the views of Joseph (1996) and Berry and Parasuraman
advantage of the business: the knowledge-based resources, the special skills of
(1991). The internal market orientation is thus specified by employee orientation and
the staff to develop new products, the ability to establish relationships with
competitor orientation on the employee market.
partners and customers, the suppliers, distributors involved in the operation, etc ...
Therefore, researchers continue to develop new theory to explain the formation of
According to Sinkula (1997), learning orientation consists of three main
competitive advantage of enterprises.
dimensions: Commitment to learning of all idividuals in the company, shared vision
Resource Based Theory
among members of the business, open-mindedness in operating and running
Researchers classified the resources of the business in many different ways.
business activities in company.
Barney (1991) classifies resources into human capital resources, physical capital,
organizational capital. Grant (1991) divided into tangible resources, intangible,
1.3 Related research in the world and in Vietnam
Miller and Shamsie (1996) studied how resources could contribute to
and people. The classification does not reflect the characteristics of the model
company’s performance during the less volatile business environment from 1936 to
VRIN so this method has little value in explaining the origin form the
1950 and more volatile between 1951 and 1965.
competitive advantage of enterprises.
Miller and Shamsie (1996) based on barriers for competitors to imitate
Experimental study of Zhan and co-author (2009) using resources based to
forming competitive advantages of joint ventures in Vietnam.
divided into knowledge-based resources (skills and know-how relating to
Nguyen Vinh Thanh (2005) mentioned primarily the role and impact of
management capability, technological capability, and capacity Marketing) and
tangible resources (company capital) and business activities (including market
resources based on ownership of assets (equipment, buildings, factories, land, etc
research and target market selection, business’s strategy, research and development
...). This classification represents the characteristics of the model VRIN thus it
of new products, technology development, management competency) on
helps to explain the formation of competitive advantage of enterprises.
competitive advantage of enterprises.
These resources may be tangible or intangible and they are owned and
Bui Xuan Phong (2006) showed that for that building corporate culture, an
employed by company in the formation and implementation of the strategy (Barney
intangible resource of the enterprise is one of the solutions to improve the
and Hesterley, 2006). Intangible resources can include skills, human capital,
competitive advantage of the telecommunications industry.
information capital and organization capital, reputation and relationships capital. All
Pham Quang Trung (2009) suggested that the resources that affect the
these resources represent resources that business owns. Tangible resources are the
competitiveness of business including: capital and financial ability, quality of human
number of employees, the size of the total capital of the enterprise. Intangible
resources and technology development, brand and marketing activities.
resources as learning orientation, market orientation of the enterprise.
Vu Trong Lam (2006) has summaried the theories that can be employed to
evaluate competitiveness of enterprises and analyze the current state of
Naver and Slater (1990) suggest that market orientation consists of three
competitiveness of enterprises.
Economics: in 2011, Vietnam’s economy has shown some initial signs of
CHAPTER 2: CURRENT DEVELOPMENT OF BUILDING
overcoming the global economic crisis and recovering economic growth.
MATERIALS PRODUCTION COMPANIES UNDER MINISTRY OF
However, the minor busty demand and expansionary monetary policy, an
increase in inflation cause macroeconomic becomes a major risk for the economy
This chapter includes the four main parts as follows:
Socio-cultrural: Viet Nam is developing country with a GDP annual growth
2.1. Introduction of building materials industry
rate reaches a high level, average per-capita income increases continuously in
Currently, building material manufacturers in Viet Nam has been early
accessed to global up-to-date science and technology for development of
production, quickly switching from small producer to large producer, from
backward technology to modern technology. The potential of mineral resources,
market, technology, labor will be exploited for the development of construction
materials into strong economic sector, which meet the quantity, quality and type
of exportation and domestic needs.
In addititon, building materials production and trading companies come from
major cities such as Ha Noi, Ho Chi Minh City, Da Nang, Therefore, the need to
diferrenr sectors, including state-owned, private equity, joint ventures and forein,
Technological development, (3) Human resources in companies, (4) Management
100% foreign owned companies. Among those companies, 43 enterprises belong to
capacity of firms, (5) Market research and target market selection, (6) Product
the Ministry of Construction (Appendix 3), with nearly 25,000 officers and staffs. It
strategy, (7) Distribution strategy, (8) Research and new product development
also comprises relative companies which exploit raw material as inputs for these
cost and investment.
use building materials with good quality has been increased. This is a new trend.
Technology: the speed of scientific and technical progress too quickly,
science discoveries made improved product more continuously appeared. New
modern technologies are altering the traditional technology, enable fully replace
the traditional goods.
2.2.2. Industry environment
Industry environment include the following issues: (1) Capital firms, (2)
companies. Besides, the Building Material Corporation and the Ceramics
2.2.3. Opportunities and challenges
Cooperation, namely, Viglacera, also have its own business units that operate in real
Vietnam’s Building materials industry has impressive rate of development
estate, construction and installation business with the aim of expanding
and achievement: quality, category products meet the domestic demand; product
quality are comparable to many countries in region, capable of competing with
2.2. The business environment of companies producing construction
2.2.1. General Environment
Political: the political and state legal framework has a direct impact to the
overall business and production of building materials in particular. In recent
years, Viet Nam always secures its position, encourage active participation of
private sector, intergrate more into the international economy, strong reform
administrative procedures , remove obstacles of bussiness, improve the foreign
imported products; products have been exported to over 100 countries around the
world; contributed about 9-10% GDP throughout all industries; is the major
contribution to the state budget;
Encourage the development of other industries; create more jobs .
One of the goals according to the master plan development of construction
materials in Vietnam toward 2020 was approved by the Prime minister in
decision No.121/2008/QD-TTG August 29,2008 is “ continuously investing in
development of basic building materials such as cement, paving material, sanitary
ware, building glass, building materials, roofing materials’ ( page 2) and “
construction materials also benefit from that growth, their performance is
constantly training to improve management capacity” (page 1) “ high competitive
excellent. However, from 2012, when the real estate market froze, the
products in domestic and international market’. This planning also identifies that
performance of these companies producing construction materials was less
Ministry of Construction has function of state management of building material
efficient, the proportion of equity in total assets decreased markedly.
and owner’s representative of the state equity in state owned building materials
construction production companies.
2.3. The current development of buidling materials production
companies under the Ministry of Construction
In four areas of research, the manufacturing sector of brick and clay products is
strength of the manufacturing enterprises of building materials. This also confirms
an objective fact, that the field of glass, sanitary ware, ceramic tiles are under huge
competition from a lot of businesses, from imported products.
In the manufacturing industry of building materials in Vietnam currently,
Net profits of most businesses are not stable and tends to decline in recent
there are 5 main manufacturing industries: cement, ceramic tiles, sanitary ware,
years. As we can see, the value of goods inventory is close to the value of equity.
construction glass, brick and clay products. Although the cement industry is a
These firms currently operate only moderate scale with the aim of keep the
major industry, it is homogeneous product and primarily dependent on
companies survived. And this issue reaffirms the urgency of improving the
technology. Therefore, this thesis just focuses on the remaining four sectors.
competitive advantage of firms.
Besides the difference in product quality, many factors such as: categories,
materials, and material innovation, also affect these four sectors.
The research mainly focuses on the following sectors (1) Glass building, (2)
Sanitary ware, (3) Granite and Ceramic Tiles, (4) Bricks and clay products.
2.4. The financial situation of construction materials production
companies under the Ministry of Construction
Financial resources play an important role in tangible resources of
companies because it reflects the internal resources of an enterprise, the total
assets of the business, Therefore, the author analyzed a number of key financial
indicators of enterprises producing construction materials under the Ministry of
Construction. The number of enterprises producing construction materials of the
Ministry of Construction is not small. Furthermore, collecting financial data of
these firms so difficult, therefore in this section, the authors evaluated only the
financial situation of business units belonging the Ceramic and Glass Corporation
Equity of building material businesses are at an average compared with the
state-owned enterprises. The authors found that, in the period 2009-2011, when
the real estate market there are tremendous growth, these companies producing
CHAPTER 3: RESEARCH METHODLOGY
technological development, (8) Business Performance. Variables are presented
below based on literature, the previous studies and revision of each variable
through qualitative research steps.
3.1. Research model
The competitive advantages will be based on the research and opinions of
Multi-item scale has been used to measure key concepts. These multi item
Koufteros and co-author (1995), Li and co-authors (2006), Thatte (2007). The firm’s
scales have been proved to be consistent with the standards of value and
resources will be classified according to the views of Miller and Shamsie (1996).
reliability by previous studies.
Figure 3.1: Model of resources and competitive advantage of firms
3.4. Questionnaire design
The questionnaire include:
- Number of employees
Introduction Information: This section includes an introduction about the
- Learning Orientation
- Market Orientation
content and purpose of research. Author gives brief guide to answer the questions on
the table and contact information if the interviewee has any questions.
Information reflecting respondent’s opinions: In this section, the author poses
questions to have comments of the respondents by ging the number for each
statement. The statement was designed to measure the scale has been used in
previuos studies. The measures consists of observations of many variables (1) The
competitive advantages of the company, (2) learning orientation, (3) market
orientation, (4) the business performance of the company.
Additional information: In order to collect additional content related to the
research model. This additional information includes the scales (5) The information
about the business environment, (6) General information about the company, (7)
Information on the respondents in case they want to know the finding of this
3.2. Study Steps
To achieve the research objectives, three steps has been taken: (1) A
preliminary study, (2) Qualitative Research, (3) Qualitative Research
3.3. The study concept and measures
In this section the author present the concept and measures of the
independent and the dependent variables in the research model. These are: (1)
The firm’s competitive advantages; (2) The number of employees in the
company, (3) Total Equity, (3) Learning Orientation; (4) Market Orientation; (5)
The level of market volatility, (6) Competition levels (7) The level of
3.5. Sample Design and Selection
Sample in this study was carried out by non-probability sampling. Under this
method, the authors have focused on the companies producing construction
materials under the Ministry of Construction. These companies are state-owned
enterprises or state capital more than 51% of the total equity in four areas: building
glass, sanitary ware, bricks, tiles and clay products. Businesses operating in regions
across the country. The author sent the questionaires to 43 companies.
In each company, the respendents will be selected in order are: board members,
managers and executives, head of each divisions. The typical divisions in these
companies are: Sales, accounting, planning, personnel, and mechanical and
CHAPTER 4: ANALYSE AND INDENTIFY COMPETITIVE
electrical engineering, production. Total questionaires had been sent out is 900.
The number of questionaires returned is 236, representing 26.2% of total
ADVANTAGES OF CONSTRUTION MATERIAL ENTERPRISES
UNDER MINISTRY OF CONSTRUCTION
respondents. It can be said that this sample reflects and represents all building
materials production companies under the Ministry of Construction.
After collecting all questionnaires, author analyzed information, filtered
questions and encoded the information from the questionnaires. Data were analysed
3.6. Respondent discription
Table 3.2: Distribution of respondents according to group positions
4.1 Assessing the reliability of variables
1 Chairman of Board of Management
using SPSS software version 20.
To check the reliability of data, Cronbach's Alpha model was applied.
Cronbach's Alpha model is used to remove the mismatch variables and to limit noise
3 Vice Directors
of variables in research process and evaluate the reliability of these variables.
4 Head of Divisions
Cronbach's Alpha ranges from 0 to 1. In theory, the higher the Cronbach's alpha, the
5 Deputy Head of Divisions
more reliability the variables are. These variables which have correlation
coefficients less than 0.3 will be disqualified. These variables which have
(Source: Survey on model of resources influencing to competitive
Cronbach's alpha correlation coefficient from 0.6 can be used. Typically,
Cronbach’s alpha is from 0.7 to 0.8 in this research.
4.2 Descriptive statistics of the variables
Table 3.3: Grouping by field surveys of business
Trước khi đi phân tích mô hình hồi quy, tác giả thống kê các biến trên như sau:
Before conducting regression analysis, descriptive statistics of the variables
Fields of business
Granite and Ceramic Tiles 26,8
Bricks and Clay Products 25,2
have been discribed as follows:
Table 4.2: Variables using for regression analysis
(Source: Survey on model of resources influencing to competitive advantages,
Number of employees
(Source: Author’s interview and analysis)
4.3 Analysis the correlation between competitive advantage and
Performing correlation analysis based on the assumption H0i: "variable i and
4.5. Analysis of Competitive Advantage, Learning Orientation, Market
4.5.1. Analysis of Competitive Advantage
original variable 0 do not have a linear relationship, i.e., the correlation coefficient is
Table 4.6: Components of Competitive Advantages
0". In this hypothesis, the level of significance is chosen as 0.01 (i.e. the probability
of accepting the wrong hypothesis is 1%). When reliability coefficient is larger than
0.01, we will accept H0i hypothesis, i.e. the two variables are considered no
correlation. When reliability coefficient is less than 0.01, we will reject the null
hypothesis H0i, or that the two variables are correlated. After analyzing the data
through SPSS, we come to the conclusion that competitive advantage is influenced
by learning orientation and market orientation, and not be affected by the number of
employees and total capital size.
4.4. Regression analysis
Delivery as Customer’s requirement
Time to deliver products to market
(Source: Author’s interview and analysis)
4.5.2. Learning Orientation
To assess the impact of these factors on competitive advantage, the authors
Table 4.7: Components of Learning Orientation
used multivariate regression models. Multivariate regression model is proposed as
follows: Y = f (x) = β0 + + β2X2 β1X1 βnXn + + ... + ε.
In the model: Y is a competitive advantage. X1, X2, ..., X7 elements
respectively number of employees, size of the total capital, learning orientation,
market orientation, the level of market volatility, level of competition, level of
development technology. β1, β2, ..., β7 coefficient respectively of the corresponding
Commitment to learning
(Source: Author’s interview and analysis)
Hypothesis test using SPSS software to assess the suitability of a multivariate
regression model to test the suitability of the model, the authors concluded
4.5.3. Market Orientation
Table 4.8: Components of Market Orientation
- Three environmental factors do not affect competitive advantage.
- Two tangible resources does not affect competitive advantage.
- Two intangible resources affect competitive advantage.
Inter-functional Cooperation Orientation
Employee Competition Orientation
(Source: Author’s interview and analysis)
Analysis of model that Competitive Advantage depends on Learning
Orientation and Market Orientation
SPSS software was employeed to analysis the model and the results are
CHAPTER 5: IMPROVING THE COMPETITIVE ADVANTAGE OF
BUILDING MATERIALS PRODUCTION COMPANY UNDER
MINISTRY OF CONSTRUCTION
discribed as follows:
Competitive Advantages = 1,007 + 0,363 x Learning Orientation + 0,356 x
5.1 Orientations for socio-economic development of Vietnam to 2020
The strategy of social and economic development (2011 - 2020) has set a target
Competitive Advantages = 1,162 + 0,668 x Learning Orientation
of "Vietnam basically become a modern industrialized by 2020". On the basis of
Competitive Advantages = 1,433 + 0,609 x Market Orientation
analyzing weakness and current difficulties, the causes have been found out are lack
Competitive Advantages = 1,176 + 0,264 x Commitment to Learning + 0,129 x
of high quality human resources, lack of infrastructure systems (synchronous and
Vision Sharing + 0,273 x Open mindedness
modern), and lack of business modern business that it is the enterprenership spirit.
Competitive Advantages = 1,004 + 0,505 x Customer Orientation - 0,257 x
As he Konosuke Matsushita (1894 - 1969), founder of Matsushita, one of 20
Competitor Orientation + 0,007 x Interfuntional Cooperation Orientation + 0,3 x
talented entrepreneurs, the most prominent twentieth-century Japan - wrote: "the
Employee Orientation + 0,155 x Employee Competition Orientation
success or failure are now man". The centerpiece of the development is due to the
Business Performance = 1,368 + 0,414 x Competitive Advantages
talent recruited suitable or not.
5.2 The development orientations of building materials industry
The target in 2020 of the industry of building materials is to strive to basically
complete the process of industrialization and modernized toward 2030 and aims to
reach the level of the modern industry, green industry that are equivalent with the
level of other countries in the region and the world.
Prime Minister Nguyen Tan Dung has signed Decision No. 121/2008 / QDTTG, approved the master plan on development of building materials Vietnam
toward 2020, which continues to invest in developing basic materials such as
cement; paving materials, sanitary ware; building glass; building materials, roofing;
stone, sand and building decoration materials; and focus on developing new
materials, environment friendly.
5.3 The challenges and goals to be reached
5.3.1. The challenges
In the trend of globalization today, goods have been imported and exported to
other parts of the world; markets are widen, covering the whole world. Therefore,
any business that has enough resources and wants to grow, would also like to
expand their markets abroad. The construction materials production company under
the Ministry of Construction have been facing many challenges to reach out to
Firms in the industry have difficulties with accessing to quality labor: skills
Thirdly, it is the shared vision. The senior leaders need to be aware that
they'll need to communicate, disseminate company’s strategy, vision so their
employees can fully understand company’s strategy, vision and development
shortage becomes more difficult in the future due to limited capacity of the sector
attractive for young people and the quality of education in Vietnam .
5.4.3. Enhancing market orientation of the businesses
The first dimension is staff competition orientation. Businesses need to
develop solutions that help to improve the working conditions of employees in
order to retain employees, help employees having long term commitment with
long-term and attractive contracts.
The second dimension is competitor orientation. In the business department,
the sales department is mostly assessing to the markets. Therefore, companies
need to encourage this department to find out and update information about the
competition, or the actions of competitors.
The third dimension is customer orientation. Companies need to improve the
assessment and control of commitment level in serving customer needs,
frequently measures customer satisfaction; appreciate and pay attention to aftersales services.
The fourth dimension is multi-functional cooperation. Companies need to
frequently and further enhance the sharing of resources among different functions
within the enterprise; comfortable exchange of information on successful
experiences as well as failures with customers among all departments.
The fifth dimension is staff orientation. Human resources are the one that
directly create products. Businesses need to systematically analyze the working
conditions of officers and employees of the company.
In the context of the global economic crisis in recent years, or even in Vietnam,
inflation, interest rates fluctuate erratically, ... companies are facing difficulties in
accessing finance resources.
5.3.2. The goal to be reached,
On behalf of the government in managing the industry, the general direction of
the Ministry of Construction is to improve the competitiveness of companies
producing construction materials in Vietnam. The Ministry of Construction has
taken the specific goals to be reached:
The first objective is the growing depth and synchronization.
The second objective is sustainable growth.
The third objective is smart growth.
5.4 Solutions to enhance competitive advantage in companies producing
construction materials under the Ministry of Construction
5.4.1. Improve factors enhancing the competitive advantage of companies
These activities directly enhance the competitive advantage of companies
producing construction materials is very important. The solutions include:
First, companies need to reduce production costs, offering competitive price
equal to or lower than the competitors.
Second, companies need to invest more on research and development as well
as market research.
5.4.2. Improving the learning orientation of business
Firstly, it is enhancing open mindedness. Businesses need to regularly
gather critical opinions about how to interpret the information about customers.
Secondly, it is enhancing commitment to learning. The fundamental values
of the company include considering learning as key to improvement, people need
to understand that spending money on individual learning is an investment, and is
not extra expenses.
5.5 Solutions to improve the competitive advantage of companies in
5.5.1. Construction Glass
First, improve the safety of the product.
Second, improve the bearing capacity and heat.
Third, improve the impact strength of the horizontal wind load increases with
Fourth, to create the most favorable conditions for the promotion of export
trade of glass products.
Fifth, use of modern technology with low fuel consumption.
Friday, import taxes and establish technical barriers for processed glass
products that can be produced domestically.
5.5.2. Sanitary ware
First, improve product quality.
Second, in parallel with the main products also need to develop the suplement
product comes with accessories, sanitary ware.
Third, branding, promotional and communication programmes.
Fourth, the implementation of regulations on competition management, market
5.5.3. Granite and Ceramic Tiles
First, review and develop individual product lines available into the high-end,
high value and high margin products, besides develop the product lines that are
cheap, satisfies mid-income customers.
Second, the investment should be concentrated in clusters area, large capacity,
high production specialization.
Third, improve the capacity and eventually eliminate the production line of
tiles with low production capability.
Fourth, investing modern technology, highly automated production lines.
Fifth, ensure technology needs to produce a variety of products with different
5.5.4. Bricks and Clay Products
First, continue to invest in depth in technological improvements of bricks and
clay production to reduce fuel wood consumption, improve product quality.
Second, the development of large-sized tiles, high porosity of 50% or more.
Third, the development of production of high quality bricks have economic
value, especially not warrant the kind of brick building to serve both domestic and
Fourth, the development of production of bricks made by less efficient land and
in agricultural and industrial waste (land cover in coal mining, coal narrow stone, ...)
Thursday, the Ministry of Finance to propose research proposal regarding tax
policy on brick and clay production accordingly to gradually reduce the exploitation
of the land for brick and clay production.
With important contributions in theory, the authors propose to apply step by
step the solutions to enhance competitive advantages of enterprises producing
construction materials under the Ministry of Construction. In addition, this thesis
also raised some directions for further research to explore, make new discoveries
that can be applied to companies producing construction materials under the
Ministry of Construction in particular and the business Vietnam industry in
general. Support for businesses of Vietnam to develop and improve gradually to
be able to compete with companies around the world.
However, this thesis just focuses on the impact of two intangible resources
as learning orientation and market orientation to the competitive advantages of
building material companies under the Ministry of Construction. Therefore, this
research is still got some limitations and it needs further research and additional
works. The additional research could be to study the impact between
technological capabilities and competitive advantages; expand the scope of
research in the field of cement production in Vietnam, expand the research into
companies producing construction materials outside the Ministry of Construction.
A new research direction would be the impact of the intangible resources as
learning orientation and market orientation on companies’ competitive
advantages in other industries. In addition, the role of the two audit resources for
competitive advantage in the business of manufacturing various sectors of the
economy is also a direction for further research. All suggestions are aimed at
enhancing the sustainable competitive advantage of manufacturing firms in
Vietnam through two intangible resources as market orientation and learning