Strategic analysis of VinFast on the USA Electronic Vehicles Market

The results of the strategic analysis of VinFast on the United States of America electronic vehicles market, has shown that the potential penetration of VinFast, will be successful. However, there are still issues that company will need to overcome or adapt for, since VinFast is new to the market and does not have brand recognition worldwide. The company’s corporate statement demonstrates strong dedication to deliver best possible quality vehicles to its buyers, with excellent product quality, design, features, and other services with regards to battery and financing. With the development of its VF8 and VF9 SUV’s the company is jumping on the wave of sustainable future and net-zero emissions which is gaining traction in U.S. and the whole world. The stakeholder’s analysis showcases that VinFast must maintain good relationships and manage closely namely these stakeholders: owner, U.S. government, suppliers, and partners; keeping satisfying customers and monitor society and employees. With regards to U.S. government, which is assuming greater importance over two last years, given Bidens administration commitment towards net-zero emissions and other plans making U.S. transportation system green. The external environment analysis provided information regarding economies growth and the predictions for the U.S. EV markets, both are and will be growing, showing that potential buyer will have money to finance a car, and will chose electric vehicle. Notably the technology regarding batteries shows potential to improve, making production of electric cars more perspective in the future. Policies produced by U.S. government supporting it by financing domestic producers and introduction of quotas, as 50% of produced cars should be EV by 2030. The internal environment analysis showcases that the bargaining power of buyer of electric SUV is moderately high, but lower than in electric vehicle market, as the buyer has many options and different producers. The bargaining power of suppliers is considered to be low, as VinFast integrates suppliers to VinGroup, investing or buying shares of them. Thread of substitutes is high, as many foreign companies want to enter the growing market, but they will be faced with Ford, Tesla, and GM. But most important is the rivalry between companies, the demand for electric SUV is enormously high, and established brands are nowhere near to satisfy it. The market segmentation shows the persona dilates, VinFast should aim to appeal to during its penetration stage, namely 25-40 years old males, with middle income, moderately loyal or non-loyal, potential customers of electric SUV, environmentally aware, reformer, aspiring by nature people. The benchmarking shows analysis of 3 major types of companies on the market, one who entered from combustion engine sector, the one who appeared in EV industry creation, and the one who only entered the EV market. It shows how the companies interact with the market, and on the example of Rivian, how a successful penetration may workout financially. With scenario planning author analyzed the parameters that may lead to competitive advantage for all electric vehicles over combustion engine vehicles, namely “Local and Federal announced government support” and “Geopolitical situation within Russian invasion in Ukraine”. In best situation VinFast will have to only concentrate on production. With worst case scenario, lobby to government and appeal to public regarding sustainable future. And summarizing the whole analysis, the SWOT highlights many of VinFasts’ strengths, as being a part of VinGroup, which provides strong finances and R&D from other subsidiary companies, experience in manufacturing EVs abroad, strong brand identity, integrating important suppliers and established cooperation with GM and BMW. The weaknesses are also strong, but manageable for VinFast, namely being unknown as a car brand to the U.S. consumer and initially long logistical supply routes. For opportunities, government support, financial and quotas, possible future alliances with entering or established brands, currently unsatisfied demand for electric SUV on the market, and potential to build brand awareness to the segment of interest. With strong opportunities come strong threads, such as: established and emerging domestic competitors, potential market penetrators from abroad, raw materials are pricy and limited, undeveloped charger infostructure.