Thai Tuan Product Essays

Thai Tuan Product Essays Thai Tuan Product Essay Thai Tuan Product Essay Thai Tuan’s innovation – Foundation of textiles success In the 21st century, Vietnam has become one of the fastest developing countries in the world. It is renowned not only in travel, investment but also about the entrepreneurs. Back to the 1970s, Vietnam was a very poor country after the war with much of its economy destroyed by the Vietnam War. There was no export, no trade, no connection between Vietnam and the other countries. The entrepreneurs, therefore, were unable to develop their business even if they found it potential and profitable. However, in the mid-1980s, the Vietnam government implemented a new strategy called ‘Renovation’ in order to save the economy. Realizing the chance has come, the entrepreneurs started to build their business and seek for market to earn profit. One of the most potential products at that time was textile. Realizing the huge demand of textile, the entrepreneur Thai Tuan Chi established Thai Tuan Group Corporation in 1993 in order to produce and supply textile products to the markets across the country. In 2010, after 17 years, Thai Tuan Group Corporation has become one of the most successful companies in Vietnam. This report will demonstrate the manner of Thai Tuan Corporation that helps leading the company to success. Thai Tuan Chi original was a child of the oriental medicine doctor – a generous father of 11 children. Living within the poverty, he understands the difficulties, agony put on the poor’s shoulder. Thus, the will of ending poverty grew within his mind. At the age of 14, he started to work on many jobs from selling soda, soya-sauce to sandal, blanket to earn money. 8, he began to trade many kinds of goods to get money as much as possible. In fact, everything just started to change significantly when he got to the age of 25, he has turned from selling goods to focus on doing only one business with long-term plan and extreme care. That venture was about textile, and he was the pioneer of the textile and garment industry. As a result, in 1993, Thai Tuan Grou p Corporation was founded. At the beginning, its purpose was to produce and supply textile and garment products to the market. Consumers at that time were only women at the age of 22 to 42. In the 2000s, realize the potential of new technology; the company has bought the advanced technology and new machines from Japan and the EU to improve its products. It also started to implement the ISO 9000, ISO 14000, SA 8000, and the 5S international quality control systems. The company started to manufacture not only silk but also jacquard, and plain from polyester, spandex and visco, etc. Its consumers are now varying from women to students while its markets have expanded from supplying across the country to exporting the products to the international markets. In 2010, its products have been chosen to be the Vietnam’s highest quality product. At the same time, it is honor to be the main supplier for the Ministers of ASEAN countries. The success of Thai Tuan Group Corporation is based on two types of innovation: extension and duplication. An innovation that creates successful venture is considered to be the extension and duplication type when the venture are about copying innovatively something already exists, finding new applications for it, improving it and spreading it to everywhere. Thai Tuan Chi has done the same thing though he did not invent any new application for textile products. In fact, textile products were nothing new at that time, but the idea of manufacturing, improving and commercializing it into the world market has never been done by anyone before him. Back to the 20th century, textile products were produced and traded between merchants and the people who produce, embroider it at home. The products, then, were shipped to the market to sell for the customers. There was no such thing as textile industry exists at that time. Realizing the huge potential of textile products, Thai Tuan Chi has established Thai Tuan Group Corporation to manufacture and distribute the high quality textile and garment products. He started to conduct researching on the market and at the end successfully established the product supplying system across the country. According to brand. hoo. vn, Thai Tuan Group Corporation now owns three branches, eight showrooms, over 300 agents and more than 3500 distributors across the country. Thai Tuan Chi also focuses on improving and diversifying the products in order to compete with other national and international textile companies. Thus, he has bought and implemented the advanced technologies from Japan and EU. According to thaituanfashion. com, Thai Tuan Group Corporation now is able to manufacture and supply jacquard, plain from polyester, spandex and visco to varying consumers, mainly women and students. By implementing ISO 9000, ISO 14000, SA 8000, and the 5S international quality control systems, the company’s market finally has reached beyond the ocean. Their products are renowned in Australia, popular in America and are the first Vietnamese textile products enter the Middle East. Thai Tuan Chi’s way of developing business is similar to the manner of the McDonald brothers when they first manifested their fast food to the world. They also tried to improve the products quality and spread it to many places. Similar to McDonald, Thai Tuan has brought the textile and garment products from the small business on the street, from the tiny, unknown village to the huge venture of manufacturing and supplying it across the country and to all over the world. Based on what have been presented, it is crystal clear that the innovation which helps creating the successful venture for Thai Tuan Corporation belongs to both extension and duplication type. There are two sources that Thai Tuan’s innovation comes from: Incongruities and Process needs. Incongruities basically is the term that defines the difference or lack of consistency between what is expected to happen and what is really happen. Process needs is simply the term that defines the process of providing or supplying the need, the demand of the market. However, those demands are not easily recognized. According to thaituanfashion. com, He chose the fabric because ‘I realized it†¦ was light and profitable. That’s all, very simple. ’. However, the truth is not that simple. In fact, he not only realized the massive demand of the market in fabric but also recognized the huge need of the high quality fabric as well as textile products. He also predicted that the day when fabric, textile products come to manufacturing and commercializing across the country as well as beyond the ocean would come, and he was right. Follow the finest strategy, he brought textile products into business, seeking for new technologies to improve the product quality as well as to produce more diverse products. He understand that in order to achieve a successful venture, the products produced have to be diverse, creative and different from the opponents. As a result, the Product development and research center has been established to develop products. According to Thai Tuan website, after almost two decades, his company has now become ‘one of the leading Vietnamese textile product and fashion services supplying enterprises’ with 100 products and nearly 2000 patterns released every year. In the international market, his manner of developing and maintaining the venture is to avoid competing directly to the big corporation in the international market but to find the own way to go. He states that there are always the spaces in both inland and oversea market. Once these demands are found, it is only the matter of time to find the appropriate strategy to earn profit from the new market. Roughly speaking, Incongruities and Process needs are two main resources of innovation that distributed to the success of Thai Tuan Group Corporation. In conclusion, the perfect combination between a long-term plan, an appropriate strategy and the innovation of developing business has brought success to the Thai Tuan Group Corporation. Among these elements, Innovation is considered to be the most important because the fate of a business is based on the way innovation is found and developed. Thai Tuan Chi’s case is a very good example of choosing and developing the right innovation. He has chosen to brought textile and garment into industry and turned it into a very profitable business – thing that nobody has done before, he has found and driven his venture directly to the right direction – avoiding competing directly with the big Corporations and try to find the spaces of the market that no one has entered. He has tried to improve and diversify the products to manifest his business and make it different from other opponents, and he has tried to deliver his products to everywhere, from the North to the South, from the East to the West. Roughly speaking, it is crystal clear that Innovation is very important as a foundation of every business. However, different types of innovation go along with different sources would result in different outcomes. Therefore, Innovation needs to be found and chosen appropriately before starting the venture.