Improving the profitability by focusing on developing gold jewelry strategy the case of Kim Hoan Saigon

Abstract

Strategy is a systematic approach to solve a problem. Having endured continuously decrease in profit, Kim Hoan Sai Gon SJC is facing a complicated problem of lacking ability to compete in gold jewelry industry in Vietnam. In this paper, the author outlined the significantly symptom as a decrease in revenue and profitability. By realizing the symptom as decreasing profitability, the author found out that the main problem is the lack of focus on developing Gold jewelry product. By conducting the second in-depth interview, the author could define the underlying root cause that lead to the main problem is lack of position in charge of developing Gold jewelry product.Combining the information collected from the previous interviews and the literature review, the author suggested two potential alternative solutions to solve the main problem: set up an R&D department or training the current Marketing staff to be capable to develop the Gold jewelry product ranges. Finally, based on the capability of company and the cost-benefit analysis, the author came with the most potential action plan by focusing on developing Gold jewelry strategy.