A 30-year-old enterprise possesses significant advantages in terms of experience, facilities, and a customer base, yet it faces a growth challenge during its generational transition. Why is the old growth formula no longer effective, and what changes must the business make to continue growing?
A 30-Year-Old Enterprise and the Challenge of a New Growth Phase
A business with a thirty-year history often commands admiration.
Thirty years is a significant span of time—long enough to build a factory, establish a reputation with customers, develop a workforce, expand a distribution network, and weather numerous market fluctuations. Few enterprises could complete such a journey without a solid foundation.
Yet, these very enterprises—rich in experience—are now entering a vastly different phase.
Many business owners report that while their products remain excellent, quality is maintained, and factory operations are stable, their growth rates have stalled. Customers are harder to reach, competition has intensified, sales costs have risen, and profit margins are increasingly squeezed.
Looking solely at the results, one might attribute this to economic recession or declining purchasing power. While true, that is not the whole story.
It is not just the market that is changing; it is the very way the market operates.
There is a common trait among many traditional manufacturing enterprises.
In our work with businesses across various sectors—such as paintbrushes, packaging, mechanical engineering, wood processing, plastics, electrical equipment, and construction materials—we have observed a fascinating pattern.
Despite differences in their products and scale, their growth trajectories over the past two or three decades have been remarkably similar.
Investing in manufacturing facilities.
Focusing on product quality improvement.
Building a network of distributors.
Upholding credibility with customers.
Gradually expanding production.
This is a perfectly sound formula—one that has enabled many Vietnamese enterprises to grow from humble workshops into substantial businesses.
In fact, looking back twenty years, very few companies had a dedicated marketing department. Websites served merely as online brochures, and social media pages did not yet exist. Customers primarily came through personal connections, distribution networks, or a reputation built up over years of operation.
Back then, businesses did not need to exert much effort to gain visibility, as the market operated quite differently..
What once drove business success is gradually becoming a limitation.
We once spoke with a business owner in the construction tools and accessories sector—someone who had been in the industry for over twenty-five years.
He made a very candid remark: “In the past, simply making a quality product meant customers would come looking for us. Now, our products are even better, yet customers are harder to find.”
This is not a story unique to any single industry.
A mechanical engineering firm echoed the same sentiment.
A packaging manufacturer shared the same feeling.
An export-oriented wood processing company is facing similar pressures.
Initially, many attributed this to a difficult economy. However, a closer look reveals that some companies within the same sectors are still growing, expanding their market share, and acquiring new customers.
The difference does not lie in having larger factories or superior products.
The difference lies in having adapted sooner to the way the new market operates.
Customers no longer buy the way they did ten years ago.
In the past, a contractor needing to purchase accessories or tools would typically consult acquaintances or familiar dealers.
A business seeking a mechanical machining provider would rely heavily on existing relationships.
A factory needing packaging would look to partners with whom they had collaborated for years.
Today, that journey has changed significantly.
Before making a call, customers often search on Google.
They view websites.
They read company information.
They compare multiple suppliers.
They look for past projects.
They check community reviews.
They even use AI to gather information before making contact.
This means the purchasing decision no longer begins with the first meeting with a sales representative.
It starts with what customers see and perceive about the business before the two parties have even spoken.
This is a massive shift, yet many businesses have not fully realized it.
The first generation built a successful business; the second generation must forge a new path for growth.
This is arguably the most challenging phase for many family businesses.
The founding generation spent decades laying the groundwork. They gained an intimate understanding of their products, manufacturing facilities, and customers through hands-on experience.
What they built is an invaluable asset.
However, the next generation faces a different set of challenges.
It is not a matter of simply building another factory.
Rather, the question is how to sustain business growth in a market that has undergone profound changes.
This is precisely why many members of the second generation are turning their attention to marketing, digital transformation, and e-commerce.
Yet, viewing marketing alone as the solution may not be enough.
Businesses Need More Than Just Marketing
There is a common misconception.
When sales stagnate, businesses immediately think of hiring more marketing staff or running advertisements.
Marketing is certainly important.
However, marketing is only effective once a business has answered more critical questions.
What makes customers choose us over our competitors?
What sets the business apart, beyond just product quality?
Among the hundreds of products being sold, which ones actually generate profit?
Will the target customer base five years from now be the same as it is today?
Without answers to these questions, investing in marketing is like installing a massive loudspeaker without knowing what you want to say.
This is not a story unique to any single industry.
Interestingly, this challenge arises across many traditional manufacturing sectors.
Consider a packaging company that once grew through customer referrals but must now find ways to reach new brands.
Or a mechanical engineering firm that long relied on established contracts, only to face competition from younger rivals who project a highly professional digital presence.
Then there is the wood processing company with strong production capabilities—yet one that remains largely unknown beyond its existing client base.
Or a business equipped with modern production lines that has never stopped to ask how the end consumer actually discovers its brand.
On the surface, these appear to be distinct stories.
Yet, at their core, they all reflect a shared reality: businesses are entering an era where manufacturing prowess is no longer the sole competitive advantage.
The first thirty years represent a journey of building the business; the subsequent thirty years mark the journey of constructing a new growth model.
No one denies the value of experience.
No one disputes the importance of the manufacturing facilities, the workforce, or the relationships cultivated over decades.
On the contrary, these constitute the very foundation that many young enterprises take a long time to establish.
However, a solid foundation does not guarantee that a business will continue to grow using the same old formula.
Each stage of development demands a fresh approach.
While the initial phase focuses on manufacturing, expanding production capacity, and building credibility, the subsequent phase requires a greater emphasis on understanding the market, building the brand, designing a growth model, and creating new competitive advantages.
This does not mean disregarding the achievements of the founding generation.
Rather, it is the way to ensure that the value created over the past thirty years continues to deliver results in the next thirty.
And perhaps, this is the most critical question facing many traditional manufacturing enterprises: not how to maintain the old formula, but how to craft a new growth formula suited to the modern era.
