COMMENTARY MULTI-SECTOR STRATEGY

Multi businesses must meet the following criteria:

1. Identify the core business:

The core is the thing in which we have a clear competitive position and capabilities position in the market, has created a certain barrier for competitors to enter and imitate.

2. To clearly identify competitiveness, strengths and weaknesses by 13 points of capacity touching:

a. Product
b. Procurement and supply
c. Production, production partners
d. Logistics
e. Marketing & Communication
f. Sales
g. Service
h. Brand
i. Financial management
j. Human resource management
k. Capacity to manage and lead BOD, middle management
l. Corporate culturem
m. Facilities and processes.

Essentially a business exists because they have a combined position by these 13 touch points and are outperforming other competitors in the industry.

3. Brand positioning.

– Understand how customers are loving us and why?
– How to determine the size of the market.
TAM: Total
SAM: How much do you have left for the selected segment.
SOM: With the existing competitors in your chosen segment, how much size do you have left.
– How do your customers love you: Unlike the time when you started eating every meal because you did not have enough loyal customers, now you have a position in the hearts of customers, only making a lot of money. less, not struggling anymore.
– Knowing the boundaries of positioning so that I can communicate to maintain that boundary, not greedy for other segments, in the segment with stronger competitors, I can’t enter, but I ignore keeping the boundaries in my segment is very strong.

When you don’t understand where you are, You’re very susceptible to FOMO, scattering resources, inefficient investment and letting other competitors get ahead.

 

 

4. From understanding how cash flow is generated and why we are in the market. We know how to invest in multi-sectors to:

– Increase strength.
– Limit weaknesses.
– Limited scalability due to system’s cumbersome factors
– Limited scalability due to old generation’s old success mindset
– Adapting to new business models that can replace weaknesses that the success factor is already there
– Limiting weaknesses

From there, you will know:
– Which Founders/subsidiaries should buy, sell and invest in.
– Where to focus, to develop, to expand, to borrow capital, to issue shares/debentures, to raise capital
– Or to raise capital for acquisition
Thus, the multi-sector strategy is effective.

Most founders and bosses, when they have money, begin to spread to industries that are not their core strengths, which do not help the reason for their existence and since then when the crisis occurs, we have no dignity. less and even less profitable than bank interest rates, gold.
– Gradually lose its position in the market.
– An asset management company was born to analyze and increase the financial performance of subsidiaries in a multi-industry ecosystem.
– Multidisciplinary but rambling, will be like the article above

But Asset Management is still a relatively new concept in Vietnam.