Phân tích chiến lược công ty viễn thông quốc tế VTI và một số đề nghị nhằm thực hiện những thay đổi về chiến lược e

Phân tch chiên lươc công ty Viễn thông quốc tê VTI va m ôt số đê nghi nhăm
thưc hiên nhưng thay đôi vê chiên lươc

APENDIX
Introduction
Part I
1.
2.
3.
Part II
1
2
3
4
Part III
I
II

Introduction about VTI company
General Introduction
Organisation Structure
Main field of company
Current Strategy of VTI
Market Development Strategy of VTI
Low cost Strategy
Product and serviece development strategy
Market Entry Strategy
Analyzing the company’s strategy and giving proposals

to implement the changing of strategy.
Analyzing and evaluating the strategic situation of VTI

1 External environment
2 Internal environment
Giving proposal to implement changing of strategy

Conclusion
Reference

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Document

INTRODUCTION

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Strategic situation of enterprises in Vietnam is still a matter which managers need
to pay attention. Company which lack of strategy is a long story and it can not tell all, 85%
of Vietnamese enterprises do not have strategy for more than two years. Most of them
only identify what are their product or service. And they do not have more attention about
their position, their product position on market and in the future. So it is easy to reduce
business resources but do not have detection and strengthening solution, maintaining the
resources to meet their development needs or do not improve the competition capacity.
In the market economy with the current integration trend, the leading concern of
business leaders is maintaining and improving the competitiveness of the product,
maintaining and expanding market share. To perform this task successfully, leaders must
be good corporate management, manager must perform the task which building business
development strategy, must be sensitive to market signals, must control risks, identifying
organizational models, managing business operations and executing people to achieve the
strategic objectives.
Viet Nam Telecom International has also identified the important role of business
strategy. In the period from 1990 to 2012, VTI has developed and implemented various
business strategies to gain leading market share in international telecommunications
services at the current and continuous development for many years with high speed.
However, in the next period (2013-2016), VTI will be required to change planning to build
business strategy in telecommunication services under the new situation.

PART I: INTRODUCTION ABOUT COMPANY
1. General Introduction

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Viet Nam Telecommunications International Company, abbreviated as VTI (was called
by VTI Company) is a state-owned company which was established on 31 of March, 1990.
VTI is a state company, member of the Vietnam Post and Telecommunications Group
(VNPT) and was tasked with the organization, construction, management, maintenance,
operation and exploitation of international telecommunications network of Vietnam.
Address of head office: 97 Nguyen Chi Thanh, Dong Da, Hanoi, Vietnam.
Tel: 84-4-38410034
Fax: 84-4-38357393
Website: vnpti.com.vn
VTI company with the most modern international telecommunications network, the
most advanced technology has put into operation a variety of rich services including voice
pakage services such as: International Dial Directly (IDD), Voice of IP technology (VoIP),
international conference phones, international video conference .... Non-voice services
such as: international line leasing services, international virtual private network, the
transceiver international, satellite services (VSAT, VINASAT) .... meet the diverse needs
of customers in high quality in country and on abroad. Now, VTI have partnerships with
most of the countries and territories around the world to fully adapt the international
demand for international information.
2. Organization structure:
VTI is the member of VNPT with 4 center was attached as follows:
International Telecommunications Center Region I: Managing the North Region. The
Head Office at 97 - Nguyen Chi Thanh, Dong Da district, Hanoi.
Regional International Telecommunications Center II: Managing the South Region.
The head office at 142 Dien Bien Phu, District 1, Ho Chi Minh City.
International Telecommunications Center Region III: Managing Central Region,
Head Office at 344 - 2/9 street, Hai Chau District, Da Nang.
VINASAT Center: Managing, operating and exploiting the VINASAT-1 and
VINASAT-2. The head office is located at 97 Nguyen Chi Thanh, Dong Da district, Hanoi.
Currently, the total staff are 1,400 people. Administrative and personnel apparatus was
hold by the functional model with the organizational chart as follows:

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Source: VTI 2012Profile
3. Main field of VTI:
Organizing, constructing, operating and exploiting international telecommunication
networks: the international telecommunications network includes VINASAT-1, VINASAT2 (from 6/2012), the ground station system, international submarine cable systems,
international telephone switching system.
Providing the international telecommunications services: Implementing the installation
service, managing and exploiting the whole international telecommunications network,
such as international telephone services, international data transmission.
Consulting, survey, designing, constructing and installation the specialized
communication: Implement monitoring service, installing and connecting online, the
technical support for the entire network of Vietnam telecommunications international.
Exporting, importing and trading the specialized telecommunications equipment:
Implement

exported

services,

importing

equipment

for

the

international

telecommunication network.
Maintening the specialized equipment communication: Implementing the maintenance
services, maintening and repairing the specialized telecommunications equipment.
PART II:
CURRENT STRATEGY OF TELECOMMUNICATIONS INTERNATIONAL COMPANY
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In the current development stage, VTI Company has implemented several business
plans in order to attract new customers and maintain the market share in Vietnam which
compared to other competitors in the telecommunications industry.
1. Market development strategy
With aims to expand the service market, in recent years, the VTI Company has made
plans to develop services market both at internal country and abroad. In order to attract
more customers using the service at internal country and abroad, VTI has signed a
cooperation contract with big domestic partners and big foreign partners.
On 20/12/2011, in Beijing, VTI had signed a contract with the Chunghwa Telecom
partner, KT Corporation partner, NTT Com partner to build international submarine cable
systems, "Asia-Pacific Gateway" (APG). International submarine cable APG is a large
underground cable system multiple terabit which connected directly to 9 countries and
territories in Asia-Pacific, including China, Hong Kong, Japan, Korea, Malaysia,
Singapore, Taiwan, Thailand and Vietnam to meet growing demand, adding more capacity
and diversity for the existing cable system.
On 17/11/2011, in Hanoi, VTI had signed a contract to upgrade international channels with
Telecom Cambodia (TC) to upgrade STM4 channel to STM16 from the CambodiaVietnam border to Hong Kong. This is an important arterial media abroad of Cambodia.
This contract represents the capacity and commitment of VTI in the providing transit
capacity and international to Cambodia.
On the same day, representatives of VTI had signed an Understanding of Memorandum

on Television Services Development Cooperation in the Cambodia with the Information
Ministry of the Cambodia Kingdom and Ho Chi Minh City Television. The signing of this
MOU will be the basis for co-operation between Vietnam and Cambodia in the using
Vinasat capacity also as other telecommunications infrastructure of VTI to develop
services on TV in Cambodia and other countries which belong to the coverage of
VINASAT in the future.
To develop providing VINASAT-1 market to International, On 14/12/2009, in Hanoi,
VTI had signed cooperation agreements with Shin Satellite partners (Thailand) with
exchanging VINASAT-1 with Thaicom-5 satellite to enter the Southeast Asia and Asia
Pacific market. VTI also had signed a training contract with SES ASTRA (exploiting
satellite Luxembourg company); had signed a Memorandum of Understanding (MoU) on
cooperation and exchange business with ABS ( Hongkong); had signed MoU as agents in
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sale VINASAT-1 with Universal Telecom Services (U.S.); negotiating to sign a
Memorandum of Understanding (MoU) on cooperation and exchange business with
Protostar Satellite mining firms (Singapore).
In addition, VTI had signed cooperation agreements with Telstra partners (Australia),
China Unicom (China), US Sprint (USA), AT & T (USA). BBG (USA.), Verizon Business
(USA) .. .. and others partners around the world to develop international telephone service
market.
Thanks to the cooperation contract mentioned as above, VTI's revenue has grown
strongly in the period 2007-2012.
2. Low-cost strategy
VTI company has implemented strategies such as promotional discounts for customers
who using the service in a long term, with large number of products to compete with other
competitors and commission percentage for Agents .
3. Product development services Strategy
To satisfy the demand which is increasing of customers, VTI has researched and

developed new services such as video conferencing services via satellite (VSAT-IP video
conferencing) to diversify the types of provided services. The new service has been used
by the Central Post Office Department for the entire government computerization
program, for special-purpose networks.
4. Market entry strategy
VTI has promoted the brand through advertising services on the mass media; as well as
the implementation media of VINASAT-1, VINASAT-2; annual customers conference with
large scale and gifts for the customers ...
However, 2012 is the final stage of the strategy, services’s revenue was not growth and
profit was not high. The causes of data on revenue and profit was not satisfactory due to:
Vietnam's telecommunications market has entered the saturation stage, so that the
signing of the new contract is very difficult. Competition among telecommunications
service providers increasingly tough, so the keeping market share in the competition on
prices of other units of VTI is a difficult task.
PART III: CORPORATEE STRATEGY ANALYSIS AND SOME SOLUTIONS
IN ORDER TO IMPLEMENT CHANGING OF STRATEGY
I. Analzing and Evaluating the status of the Company's business strategy.
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1. External environment:
Vietnam is considered as a potential market and is one of the most dynamic economies
in Asia. Average GDP growth rate for 2006-2010 was 7.01%. In 2011, despite the global
economic had recession and financial crisis, but Vietnam's GDP still rose 5.89%, including
6.99% of growth service sector, contributed 2.91% to the increase general growth of the
economy. Economic growth can affect the growth rate of the market in Vietnam in recent
years.

Chart of the country's GDP growth rate (2006 - 2011)
(Source: Bureau of Total Statistics)

The strong development of science and technology in the world had an impact on all
business and production, particularly the Telecommunications industry. For international
telecommunications services, technological factors are very important because it impacted
directly on service quality, price, labor productivity. VTI had been to upgrade the entire
backbone telecommunications network system to keep up the growing trend of technology
in the world.
Directed competitors
Vietnam's telecommunications market is very attractive with the permission and
support of State and Government. Many companies provided telecommunications services
with certain advantages and they are competitors drastically with VNPT in general and the
VTI in particular. The directed competitors outbound international telecommunications
services and the back way was considered as the most powerful competitor of VTI is
Military Telecom Corporation - Viettel, Saigon Postal Telecom company - SPT, Electricity
Viet Nam Telecom - EVN Telecom (was merged with the Military Telecom Corporation
from 2012). Because VNPT/VTI is the telecommunications service operators have a long
history so that VNPT/VTI is the dominant market share for voice services. The number of
fixed telephone subscribers and mobile subscribers of VNPT (including Vinaphone and
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VMS Mobifone) are much better than the competitors. So they have contributed to large
amounts of voice for international telephone services international dimension and direction
of the VTI.

Chart of Market share subscribers voice service in Vietnam in 2011
(Source: Business Result report of VTI, 2012)
Indirected competitors
Currently, information technology and telecommunications grows, the field of
information technology most penetrated to telecom sector. More and more new services
was launched, especially phone services increased diversely and more conveniently. New

services such as Voice over Internet Protocol (VoIP), email .. increasingly improved in the
features and quality and it is directed competition with traditional international telephone
services of VTI.
Potential competitors
With the open door policy of Vietnam's telecommunications industry, in the future,
there will be a lot of businesses engaged in telecommunications services market to bring
more profit. When the telecommunications enterprises in developing countries involved in
the Vietnam market, they will be the major competitor of VTI because these firms have
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strong potential in terms of capital, engineering and technology, trade secret business and
enterprise management tools.... The domestic telecom service providers need to create a
strong position to be able to compete with larger competitors.
2. Research internal environment
VTI is an international telecommunications services provider in Vietnam. For many
years, VTI is the unique provider, so they was cooperated by partners in the world. VTI
was assigned to manage the key international telecommunications network of national
which are regularly and ongoing development of both scale and quality. In the process of
production and business, VNPT Group always ensures the providing for a fast and stable
growth market; with abundant financial resources. With 22 years of experience in the
industry, VTI has built very good relationships with customers and partners around the
world. VTI and VNPT are enjoying the preferential treatment of the State to encourage
investment in the field of information and communication.
Human resources
Total staff of VTI are 1400 employees, of whom graduated from the University and
postgraduate accounting for 74% of total labor.
VTI found that the human factor is the success element or failure element of the
enterprise, so in addition to compensation for the employee through salary, bonuses, social
policy and welfare ... VTI also regularly supports 100 % of funding and working time to

attend training course with enhancing staff capacity both at internal and abroad. VTI’s
training cost in 2011 was more than 3 billion for 1242 official staffs was sent to training
with a total training time is 1400 days

Structure: human resources diagram of VTI in 2011
(Source: Report on human resource development of VTI in 2011)

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Marketing activities
Marketing activities has made significant strides in promoting the brand to customers
through promotions, media campaigns, such as: advertising on the large table at the
international airport, communication on the launching VINASAT-1, etc. However, there
are still some limitations such as: staff have not been trained deeply, they only work
according to experience so the professional is not high, some products for advertising
media products have not attracted many clients.
Research and development market
VTI has implemented cooperation agreements with major partners around the world to
expand the international telecommunication networks globally. VTI has hired several wellknown market research company at foreign to research market subscription service
VINASAT for areas where satellite coverage.
Service Quality management
Service quality is the first factor to decide the existence of the business. For
international telecommunications services, this is even more important because customers
have to spend large cost for communication needs immediately. To achieve success as
today, it is best trying of VNPT in general and VTI in particular in ensuring quality of
service at the highest level. Service quality standards are set by world standards.
Finance
VTI is a business which account depends on VNPT, therefore company always was
provided a rich source of funding for the development of network infrastructure. VTI

always does modernization to improve the quality of network services.
II. Some suggestion and solutions to implement change of strategy - For the
Vietnam Post and Telecommunications Group
Company need more decentralized for accounting units which can be more active in
the production business. The wage policy, reward policy, discipline are still intensely
subsidized. The results make employees less enthusiasm, less dynamic in working.
Business policies, investment should also be changed to suit the new conditions.
Currently, regulations, processes and too closely procedures for working lead to
investment, business lack of the flexibility to delay the attractive opportunities.
The advertising, the focused media need to be reformed strongly to enhance the brand
and reputation of the unit member of VNPT, to avoid losing market share to competitors.

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Company need to develop new mechanisms in place for the current implementation of
the roadmap to restructure the state-oriented group of government to businesses save costs
actively, enthusiasm business because business results will directly impact on the income
of enterprises and workers. On the other hand, the management of 70 independent
accounting enterprises, if there are not have tightly management, the common property
will be damaged.
- For State
State support for Vietnamese enterprises in general and telecommunications businesses
in particular are indispensable. But how to support to bring real business benefits are not
easy to implement. Many people think that business support is capital funding, facilities
for them. That is true, but it is not enough because the real need is support by the
government in creating a good economic environment, with specific policies, effective
way to help businesses achieve desired results, increase competitiveness with foreign
rivals.
State should create a stable legal framework, close to facilitate maximum production

and business activities of the enterprise. First of all, company need to review the laws
system, the regulations which are no longer in line with international practices, in
particular with the provisions in the Commercial Law, Investment Law. The state should
continue to promote administrative reform in the trade field in the direction of removing
less current procedures.

CONCLUSION
Administrative business strategy is vital issues, is an effective method for businesses to
use resources efficiently, and correctly identify direction in the development process.
According to the author Ngo Kim Thanh (2009), a general understanding about
strategy as "the art of coordinating activity and controling activities in order to achieve
long-term goals of the business", to help businesses create sustainable economy value in a
given market context.
The role of strategic management is extremely important. Strategy is not only
identifying goals and directions activity of business; improving business results, but also
to ensure the continuous development of the business.
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Strategies need to start from the current starting point to understand their position,
revenue and profitability, how is the current market and how is the current strategy
effective? Then, the business should identify goals clearly in future with this new
objective; the analysis of the environment is an indispensable task in the strategy
formulation process.
According to marketing theory, corporate environment is a set of all positive and active
forces outside the company and it may affecting the ability to direct the marketing
department, establish and maintain good relationships with the target customers. Thus, the
need is clearly analyze internal environment and external environment of company to
know the strengths, weaknesses, opportunities and challenges of the company. Base on
that, identifying and selecting appropriate strategy now.

References Document:
- Strategic management curriculum: Professor - Dr THOMAS JAKOBSEN
- International Telecommunications Company (2007, 2008, 2009, 2010, 2011), report
business results
- International Telecommunications Company, Company Profile
- Fredr.david, 2006, Outline of strategic management, has been translated from English,
the Statistical Publishing, Hanoi.
- TS. Nguyen Thi Giang, 2009, Status of strategic management in small to medium-sized
enterprises in Vietnam
- Dr. Le The Gioi. Dr.Nguyen Thanh Liem, Master - Tran Huu Hai, 2009, Strategic
Management, Statistical Publishing, Hanoi.

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