- Economies of scale: A greater economies of scale can be accomplished due to the increase in production which will result in the reduction of cost for each additional unit sold, and improve revenue growth.
- Improved resource utilization (RBV): By owning a production facility in Vietnam, it’s easier for the distributers to meet the demand of Retailors, Hens provide better service output by improving lead time, and less shipping documentation complication from transporting in same country.
- Increased flexibility ”Real options”: To take certain business initiatives and seize opportunities, especially in dynamic environments such as; quickly changing consumer preferences and segments, and high entry/exit of competitors, potential channel partners.
- Uppsala model: In 1993 ORANA started its trade with Vietnam by using traditional exports and gradually moved to intensive and demanding operation modes, such as joint venture/production facility which was established in 2002, and now they are expanding their retail sales by dealing with local distributors to cover the central and northern parts of Vietnam, ORANA is striving for growth in Vietnam but with a low risk taking level, they often develop their