An Thai Hung: A case of business model innovation-driven transformation
A successful relationship between ESOs and supported businesses starts with selecting the right partners and identifying the right challenges.
In 2023, An Thai Hung embarked on a strategic transformation journey, significantly supported by BizCare and changed their approach to business completely.
An Thai Hung is a Vietnamese enterprise initially rooted in traditional manufacturing within the FMCG sector. The company specializes in the production and development of medicinal herbs and related health products. In 2023, they embarked on a strategic transformation journey, significantly supported by BizCare's acceleration services. This innovation-driven strategy was aimed at transforming An Thai Hung from a purely production-oriented business model to one that emphasizes innovation through research and development, particularly focusing on OEM and ODM services for SME clients. The pivotal role of BizCare in this process underscores the importance of strategic guidance and tailored support in navigating the complexities of modern business landscapes.
BizCare's intervention involved a detailed analysis of An Thai Hung's operations, identifying the need to shift towards a more innovative and R&D-driven approach. This shift was designed to position An Thai Hung as a comprehensive solution provider for the FMCG sector. Furthermore, BizCare recommended a transition to a hybrid organizational model, blending centralized decision-making with the agility of decentralized structures. This model was aimed at enhancing An Thai Hung's flexibility and responsiveness to market changes.
The collaboration was enriched by Swiss EP, with expert Chin Hing Chang providing insights into global best practices for ODE and OEM companies. This guidance helped tailor An Thai Hung's strategy to its capabilities and resources, ensuring a practical and sustainable transition.
The transformation yielded significant results. An Thai Hung's revenue increased fivefold, from approximately VND 20 billion to VND 100 billion, within a year. Additionally, the company expanded its R&D capacity and increased its production area for medicinal herbs from 7,000 m^2 to 2.8 hectares. These achievements affirm the effectiveness of BizCare's strategic guidance and the value of incorporating external expertise from Swiss EP. An Thai Hung's success story demonstrates the importance of strategic partnerships and expert guidance in achieving growth and innovation in today's competitive business landscape.
An Thai Hung expressed high satisfaction with BizCare's services, highlighting the expertise and empathy of the experts, mentors, and coaches who understood the company's challenges. The professional, dedicated, and enthusiastic work style of BizCare provided a sense of security throughout the business journey. The solutions offered were practical and immediately effective, leading to tangible results. An Thai Hung felt extremely secure and had absolute trust in BizCare, marking a successful partnership characterized by mutual respect and shared goals.
Mr. Le Ngoc Hue, CEO of An Thai Hung
From the perspective of an entrepreneurship support organization (ESO), Dr. Thang Dam - the founder and CEO of BizCare - praised the founder's dedication to sustainable development, community spirit, and national pride. The founder's growth mindset and openness to feedback from the BizCare team were crucial in implementing innovative ideas. The company's strong internal capabilities and cooperative spirit across the workforce, coupled with a solid foundation in R&D, allowed for the successful implementation of solutions proposed by BizCare.
Reflecting on the collaboration, key takeaways for future partnerships between ESOs and to-be-supported businesses are:
- Be selective in choosing businesses to support: The businesses must align with the supporting organization's strengths, and founders should possess an open mindset, willingness to change, and readiness to take risks.
- Accurately identifying the core issues and the business model that aligns with the founder's vision and the company's capabilities is essential for customizing effective solutions.