Phân tích chiến lược kinh doanh của viettel e

Phân tích chiến lược kinh doanh của Viettel
Business strategy analysis of Viettel

Say its your way

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TABLE OF CONTENT
INTRODUCTION........................................................................................................1
TABLE OF CONTENT................................................................................................2
RESEARCH OF CONTENT........................................................................................4
1. Introduction overview of Viettel Corporation...........................................................4
1.1 The process of formation and development of Viettel.............................................4
1.2 Business operations of Viettel.................................................................................4
1.3 The business philosophy of Viettel..........................................................................4
1.4 Development History of company...........................................................................5
1.5 Mission.................................................................................................................... 5
2. Overview of the business areas of Viettel..................................................................6
3. Analysis of the macro environmental factors - PEST model.....................................7
3.1 Analysis of the political situation............................................................................7
3.2 Analysis of the economic situation..........................................................................7
3.3 The sociocultural factors.........................................................................................8
4. Analysis of element five competitive forces..............................................................9
4.1 Competitors.............................................................................................................9
4.2 Buyers.....................................................................................................................9
4.3 Supplier.................................................................................................................10
4.4 Substitutes.............................................................................................................10
4.5 Competitors sector penetration..............................................................................10
5. General assessment of the opportunities and challenges.........................................10
5.1 Opportunities.........................................................................................................10

5.2 Challenges.............................................................................................................12
6. Solutions to promote effective business strategy of Viettel.....................................12
6.1 Market entry strategy.............................................................................................12
6.2 Market Development Strategy...............................................................................14
6.3 Strategy for product development.........................................................................15
CONCLUSION...........................................................................................................16
LIST OF REFERENCES............................................................................................17

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INTRODUCTION

Strategic Management helps businesses clearly oriented strategic vision,
mission, mission and its goals. Indeed, strategic management want to be effective,
organizations must manage environmental information systems business. Pursuant to
this, managers can predict the trends of the business environment and determine
where the business needs to go in the future, what needs to be done to achieve success
long.
Realizing the desired results in the future and aims to help managers and
employees to master what to do to achieve success and create mutual understanding
between managers and employees and the efforts to achieve the desired. This will
encourage both objects on achieving short-term performance, better to improve longterm interests of the business.
Strategic Management helps businesses always have good strategies, adapted to
the environment. Strategy is the general solution, oriented to help businesses achieve
long-term goals. Strategies are based on the information inside and outside the
enterprise and be selected by a scientific process. At the same time, the strategic
management process, administrators are always monitoring the changes of the
business environment and adjust strategy as necessary. So strategic management will
now always have a good strategy, adapting to the environment. This is very important

in the context of an increasingly complex environment, constant changes and
competition takes place on a global scale.
Strategic Management helps enterprises active in decision making in order to
exploit opportunities in time and prevent or limit the risks in the external environment,
promoting the strengths and reduce the weaknesses in internal business.

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RESEARCH OF CONTENT

1. Introduction overview of Viettel Corporation
1.1 The process of formation and development of Viettel
- Company: Telecommunication army Corporations - Viettel
- Head office: No. 1, Giang Van Minh, Kim Ma Street, Ba Dinh District, Hanoi.
- Phone: 04. 62556789
- Fax: 04 62996789
- Email:
- Website: www.viettel.com.vn
- Name of Founder: Ministry of Defence
Decision No 43/2005/QD-TTg on March 2, 2005 of the Prime Minister
approving the scheme established Military Telecommunication Corporations and
Decision No.45/2005/QD – BQP on April 6, 2005 of the Ministry of Defence on the
establishment of the Military Telecommunications Company.
1.2 Business operations of Viettel
The main business activity of Viettel covers key areas such as:
- Provision of Telecommunications Services;
- Transmission;
- Post;
- Distribution terminal;

- Financial investment;
- Communications;
- Investing in to Real Estate;
- Foreign Investment.
1.3 The business philosophy of Viettel
- Each customer is a man - a separate instance, should be respected, attention
and listen, understand and serve separately. Continuous innovation, with customers
creating products and services more perfect.

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- The platform for an enterprise's social development. Viettel committed to
reinvest back to society through activities linking production and business operations
with social and humanitarian activities.
1.4 Development History of company
- In 1989, the Company communications equipment Electronics, the
predecessor of General Military Telecommunication Company (Viettel) was
established.
- In 1995, was renamed Military Telecommunication Electronics Company
(trading as Viettel),
- In 2000, Viettel has provided testing permits long distance phone service 178
- In 2003, Viettel held included installation of fixed telephone services in
business activities in the market
- In 2004, Opened mobile phone service on 15/10/2004 with 098 brands.
- In 2005, Prime Minister Phan Van Khai has signed a decision to establish the
Viettel Corporation on March 2, 2005
- In 2008, turnover of 2 billion USD.
- Located in the 100 largest telecommunications brand world
1.5 Mission

a) Development viewpoint
+ Incorporates economic and defense
+ Investments in infrastructure
+ Business customer orientation
+ Develop faster, continuous stability
b) Business Philosophy
- Each customer is a man - a separate instance, should be respected, attention
and listen, understand and serve separately. Continuous innovation, with customers
creating products and services more perfect.
- The platform for an enterprise's social development. VIETTEL reinvestment
commitment to society through activities linking production and business operations
with social and humanitarian activities.
- Sincere with colleagues, sticking together, contributions to build roof
VIETTEL.
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c) The Brand Philosophy
- Always breakthrough, forefront, pioneers.
- New technology, multi-product, good quality service.
- Continuous improvement.
- Attention to the customer as a separate individual.
- Work and emotional thinking, activities of social responsibility.
- Honesty with customers, colleagues sincere.
2. Overview of the business areas of Viettel
In the information age human society, the demand for information is increasing
rapidly. Telecommunications become an important sector in any other country in all
spheres of economic and social. Telecommunication networks act as a bridge for
exchange of information among governments, social organizations and among people
together.

Currently Sector Vietnam Posts and Telecommunications ongoing network
modernization with the transmission modes, advanced switching, modern equipment,
used in advanced network technologies in the world. Although the telephone network
after the network Viettel development Vinaphone, Mobiphone, Sfone,etc,... but during
its development stage the company has achieved leapfrog development, increasing
market share numbers, sales of products and services through the years is constantly
increasing and is gradually penetrating the foreign market.
The convergence of the telecommunications sector with the development of
society, the need to use and human data also increased exponentially. The
telecommunications sector contributes a great role in the transport of human
knowledge put to each person, promoting the creative process put information
anywhere on the science sector, and entertainment information as well as time
difference. To clarify these issues, our group had chosen the topic "Analysis and
evaluation

of

opportunities

and

challenges

for

Viettel

in

the

field

of

telecommunications business " to analyze the business environment, business strategy
of Viettel based on the model PEST and five forces of Michael Porter's competition.
Telecommunications corporation Viettel military since its establishment has been the
No. 1 brand in the Vietnamese market and are expanding operations into adjacent
markets through strategic branding Viettel, selecting the right growth strategy focused
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in order to take advantage and potential of the company to open its market share and
dominate the market develop effective business operations. Therefore, the planning
and implementation of business strategy is very important and urgent for the survival
and development of the Company.

Political

PEST Model

Technological

Technological

3. Analysis of the macro environmental factors - PEST model

Social
3.1 Analysis of the political situation

- Politics in our country is now rated very high in terms of stability, ensure the
development activities of the enterprise.
- Joining the WTO, a member of the Security Council, the United Nations, the
issue of globalization, external relations increasingly tend to expand, integration into
the world economy is the opportunity of participating in the market Viettel full bridge.
- The provisions on administrative procedures increasingly present, business
licenses increasingly shortened.
- Under the aegis of the Ministry of Defence.
3.2 Analysis of the economic situation
Like many other industries, electronics and telecommunications industries also
affected by the fluctuation of the macro economy. When economies grow, social make
more wealth, commodity circulation and income increases, the demand for
telecommunications services is also growing. And vice versa, when the economy
slowdown, reduced consumer demand will also affect the telecommunications
industry.
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Given the current macroeconomic and future trends in the medium brings
opportunities, facilitate the activities of Viettel. The demand for telecommunications
services increased, but also caused many difficulties, it is required to find ways of
technological change, management methods to reduce costs, lower product cost,
customer care, intense competition. In the long Vietnam is still regarded as a market
full of potential, able to thrive in the future.
Tight monetary policy, reducing credit growth to stop inflation has left many
struggling businesses operate, we must consider the sale of such schemes Viettel
corporation has faced difficulties.
The recession and the world economic crisis from mid-2008 to date has
reached bottom has greatly affected the business activities of the Company. Profits did
not achieve its objectives the company's economic crisis made people spending limit.

Thus, the macro-economic situation today and future trends in the medium brings
opportunities, facilitate the activities of corporations Viettel. The demand for
telecommunications services increased, but also caused a lot of difficulties: requires
that seek to change the technology, management methods to reduce costs, lower
product cost, customer care, intense competition.
3.3 The sociocultural factors
Communication needs increase, the demand for services,etc,... Nowadays, most
of them from the entrepreneurs, farmers, students and employees to the needs of
students are in touch, and there are demand services,etc,... Thus, this will enable the
services of Viettel.
Along with the development of social, educational level of Vietnam on a more
advanced. This will create favorable conditions for enterprises have qualified
workforce management, technical, has a staff of highly qualified and skilled ... With a
market of 86 million people, the percentage of young population is demand
communications services, creating strong demand and a broad market will be an
opportunity for Viettel to expand operations and capture this potential market.
3.4 Analyze the situation technologies
Nowadays, technology factors mean extremely important for the development
of every country, every business. Technology has decided to effect two basic elements
make up the competitiveness of businesses: quality and costs of particular products
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and services that businesses provide to the market. But technological change is not
easy. It requires businesses need to ensure that other factors such as labor levels must
be appropriate, sufficient financial capacity and policy development, the executive
management,etc,...
With Viettel is here just favorable conditions have created difficulties: the
development of technologies, especially the upcoming 3G technology help Viettel has
selected conditions appropriate technology to improve product quality, service quality,

labor productivity, but the difficulty is very big competition in the industry, with
demanding service discount,etc,...
4. Analysis of element five competitive forces
Rival sector
penetration

Supplier

Competitors Sector

Buyer

Alternative products

4.1 Competitors
Telecom market is

fiercely

competitive

with the

company's

other

telecommunications services such as Mobifone, Vinafone, Sfone, Beeline,etc,...
Although the telecommunications market participants after the Vinaphone,
Mobiphone, but current market shares Viettel is most at 44%, however different phone

networks are now approaching the equilibrium level as Mobifone has occupied 35%.
If Viettel has no policies, appropriate strategies to keep and develop its market
share as well as market shares of the competitors, it was not long before Viettel will
have to make way for Mobiphone.
4.2 Buyers

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As the telecommunications market converges to 7 providers of mobile services:
Vinaphone, Mobifone, Viettel, HT Mobile, EVN Telecom, S-fone and Gtel mobile,
people still see the difference Viettel. They are:
Enterprises with the number of mobile subscribers largest
Enterprises have the widest coverage
Enterprises have the most competitive rates
Enterprises have attractive packages
Enterprise adopt policies to the best Customer Care
4.3 Supplier
Financial providers including BIDV, MHB, Vinaconex, EVN
Suppliers of materials, products include: AT & T (USA), BlackBerry Nokia
Siemens Networks, ZTE and aple.
4.4 Substitutes
Products and services replace the products or services that can satisfy the needs
of the equivalent of the products and services in the industry.
Telecoms industry so wide open in the near future will have the replacement
product will help customers better satisfy the needs of their own.
4.5 Competitors sector penetration
Media "encroaching" plan telecommunications Internet access via TV cable
network (with the advantage of broadband). With the development of technology and
telecommunications firms - information and communications technology of Vietnam

began to become direct competitors of each other.
The MVNO mobile network. The biggest advantage of Mobile MVNO is
maximizing network infrastructure. The MVNO providers will not have to invest too
much capital to build the network. Besides, thanks to the partnership MVNO and
MNO mobile operators will make a capital gain invested in infrastructure by fully
exploit the market segment left open. Foreign investors are enthusiastic participation
in Vietnam's telecommunications market.
5. General assessment of the opportunities and challenges
5.1 Opportunities
- Viettel owns large capital, competitive advantage, with high trust of our
customers for products and services company.
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- There is a staff of highly qualified, professional and dynamic.
- Technical Basis of Posts and Telecommunications Network has been invested
in upgrading facilities for investment in science and high technology, low cost,
effective, and affordable.
-General Company also has the advantage of state enterprises hold a leading
role in the field of Post and Telecommunications, inheriting a long tradition with
industry Posts and Telecommunications network throughout the country.
- Viettel is one of the vendors have multiple products and best services.
Products and services are diverse. Viettel have products targeting the customers by
age, with products targeting the income level.
- As the telecommunications market converges to 8 providers of mobile
services: Vinaphone, Mobifone, Viettel, HT Mobile, EVN Telecom, S-fone, Gtel
mobile and Beeline, people still see the difference of Viettel. They are:
- Business numerically largest mobile subscriber: The number of Viettel
subscribers to over 20 million subscribers, accounting for over 40% mobile market
share.

- Enterprises have the widest coverage: Show Viettel has around 12,000 base
stations, not only in the urban coverage that Viettel has the deep waves to rural,
remote and island areas. Viettel mobile subscribers can call anywhere, at any given
time are not afraid of being obstructive.
- Enterprises with unbeatable rates: rates Viettel provides very attractive. The
package of Viettel really attractive and suited to each customer. Staff themselves
operator answers as we have truly understood the meaning of each product Viettel is
providing the market.
- Enterprises with the most attractive package: the package as Happy Zone,
Homephone no subscription fee, Sumo sim or "father and son" are different package
without a public telecommunications businesses have.
- Besides, Viettel also now have the programs associated with the great benefits
of social or humanitarian policy, special attention to the poor and most children: the
business perspective responsibility for social programs such as the Internet for
education, voice conferencing to the Ministry of Health, Viettel has helped millions of
students, students and teachers have the opportunity to interact with science and
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technology , modern knowledge platform; for doctors, nurses and those working in the
health sector in spite of the thousands of kilometers away from each other
geographically can still talk, workshops together on a difficult surgery,etc,... like
sitting in a Therefore hall.
- It is not enough, every year, Viettel spending billions to support the poor with
a special program held last year: the program "Open Arms." In addition, most recently,
Viettel jointly contribute to the good Samaritans to raise funds for the program "Heart
for Kids" to help children with congenital heart disease have a chance to have a
surgical heart stronger.
5.2 Challenges
- Scale not meet network requirements.

- Ability to compete on service quality and rates are limited.
- Low labor productivity. Provision of services is limited.
- Telecommunications market has been a fierce competition of the
telecommunications services company like MOBIEPHONE, VINAPHONE, Sphone,
BEELINE,etc,...
- Routine use of telecommunication services, internet in Vietnam currently
increasing but still low.
- Business investment although interest but a lack of uniformity has led to
certain difficulties in the work of the network operator.
- The economic crisis reduced demand for the services of our company
- Demanding quality of services and reduce service costs. Some other risks are
less likely to happen, but if it happens then great influence on the activities of
companies such as: natural disasters, war, epidemics,etc,...
6. Solutions to promote effective business strategy of Viettel
6.1 Market entry strategy.
Based on the analysis and evaluation of business environment, consider the
objectives and tasks specified, the managers of the Viettel has selected growth strategy
and business operations, increase the position of the Corporation by focusing on the
development of existing products and services that are the strength of the Corporation
as: international telephone, local telephone and mobile communication services,
internet,

postal,

financial

and human

resources.

Viettel Army

post

and
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telecommunications Corporations also implemented a growth strategy by diversifying
products and services.
- Telecommunications market in Vietnam is growing fast, with a market share
of 40% though the networks are also gaining market share competition. So Viettel
struggling to launch cheap packages, struggling powerful promotional marketing,
effective to increase the share of the product.
- Viettel has increased the number of sales staff and expanding agent in the
cladding crystal into the country. Strengthening activities on television advertising, the
internet, newspapers, banners,etc,...
- Also Viettel are stepping up promotional campaigns such as offering cheap
packages:
+ Package father and son: Understanding the concerns that,
Father and son launch package to help "solve difficult" for the steps a parent: I
still use the mobile, but mobile use fees depend on the father, for how much they use
this much,etc,...
+ Pack Happy Zone: Normal, mobile users will pay 1,500 VND/minute when
calling from. However, there is one part of the population (particularly the western
region) also want to travel or do business but they mostly moved within the province
they live. Meanwhile, the mobile charges as current if they are not suitable for, they people moving in a narrow range - paid by the rich - those who often travel.
+ Pack Tomato: Has contributed to develop the company brand and an
important point is that it will now take telecommunications to the poorest farmers - the
mass properties and benefits - when they can hardly Plans do not lose money and still

be able to use.
+ Pack Sumo Sim: Viettel always follow guidelines: mobile socialize, how
poor people also have the opportunity to use their mobile to have the opportunity to
reduce poverty. The reality shows that: The biggest barrier limiting low-income
people use mobile services is the handset price was very high. Currently, the lowest
cost to get the phone they are about 600,000 VND. Understand the desire of the
people desire it, SumoSim package was born. With the sale of package policies
SumoSim, Viettel help a large number of people to satisfy their dream is to have one
handset absolutely free. One can realize this is Viettel efforts in popularizing the work
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of mobile service, offer the opportunity to use mobile services for all people in
Vietnam, including those with the lowest incomes.
+ Fixed Homephone: Moreover, Vietnamese people often want psychology to
pay the package when using a product or service, and not the haunted a lifelong
liabilities (money monthly phone subscription). Therefore, no subscription fee
Homephone package birth: just shut 500,000 VND package, users are no longer
interested in paying more monthly subscription. Also donate 100% of recharge cards,
Gift port for an Internet subscription Modul,etc,...
6.2 Market Development Strategy
The company has conducted product diversification in order to take advantage
of strong capital and a workforce with their availability a distribution system
throughout the provinces and most importantly, consumers shift preferences and with
appreciation. Customer needs require more attention, better served. Chance of
developing the market so that the company has launched the service package tailored
to meet customer needs while expanding our business areas to take advantage of the
company to dominate the market with a view leader in some areas have advantages.
- Viettel existing mobile subscriber base biggest: The number of Viettel
subscribers to over 22 million subscribers, accounting for over 42% mobile market

share while also accounting for a large share of products and services the Company's
business.
- On the strategy to reach customers, Viettel sought new market segments such
as customers who may need to hear many (packages Tomato), subjects your child
likes to use the value-added service (as Ciao package). And this network was
"arrested" fast continuous opportunity to offer new services bring large revenues.
Services I-muzik ringtone wait a year and a half after the birth has eight million users.
Besides, Viettel also offer a variety of services like I-share - share account services to
receive and send e-mail on mobile phones,etc,...
- With his steps, in just over three years of operation, Viettel has led the market
in terms of mobile subscribers. As announced by the Ministry of Information and
Communications, as of May 2008 (the most recent survey of subscribers of mobile
networks), there are over 48 million mobile subscribers, of which Viettel has 20

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million subscribers, MobiFone has 13.5 million subscribers, more than 12 million
subscribers VinaPhone and S-Fone than 3 million subscribers,etc,...
- The company is seeking to expand the market. Currently the company has
expanded its business activities to Laos and Cambodia.
- The pricing strategy that the company launched a guide with strategies sip
strong Maketting aimed at attracting new customers to use.
6.3 Strategy for product development.
- As companies operating in sectors with structural Nghieu product category
appropriate diversity, with market competitiveness. With a vast domestic market and
abroad. At the same time customers are always interested in the products and services
of Viettel. So the company has been making strategic research product development
matching customer tastes, with the market demand.
- For quality:

+ Quality is measured from input to output for the products and the various
services of the Company, thus ensuring first need to reach the standard input, to the
best service with new technology Most
+ Extension and expand the market for these services: telephone, postal mail,
mobile services, internet, postal courier (EMS), the Post and Telecommunications
service excellent.
In short, the growth strategy will enable Viettel expanded market size, product
or service performed both business goals and serving, dominant market share as well
as its impact on visitors row. Allows Viettel gathers all resources of the company in
the activities and the school's profile to its traditional focus on exploiting the
strengths, business scale development on a priority basis to specialize in
manufacturing and innovation technology, products and services. Through strategic fit
given that market share and scale of Viettel not the biggest market share expanding in
all other areas.

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CONCLUSION

Environmental conditions that businesses encounter is variable. The rapid
change often create opportunities and unexpected risk. The process of strategic
management forced administrators analyze and predict the environmental conditions
in the near future and the far future. Thanks to clearly see the future environmental
conditions that administrators have the ability to better grasp the opportunities, make
the most of these opportunities and reduce risks related to the business environment
conditions and thereby make the proactive decisions.
That means when forecasting the opportunities likely to appear, the
administration prepared plans to seize the situation allows, or at risk, administrators
can proactively impact environment in order to reduce the risk or actively avoided. On

the other hand, the strengths and weaknesses has always existed within the
organization so that if no strategic management now easily be content with what is,
when the environment changes quickly strengths become weaknesses and threats
competitors of being exploited. Conversely, if the strategic management, information
systems of enterprises are reviewing the strengths and weaknesses to administrators
based leverage strengths in order to increase competitiveness, and plans to reduce the
weaknesses in order to limit the risks.
Strategic Management helps businesses achieve greater efficiency than nonadministrators. The study shows businesses how to apply strategic management is
achieving better results than the results that they achieved earlier and the results of
businesses not applying governance strategy comb. That does not mean that
businesses use strategic management will not encounter the problem, maybe even
bankrupt, but it just means that the application of strategic management will reduce
the risks encountered have serious problems and increase the ability of businesses to
take advantage of opportunities in the environment as they occur.

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LIST OF REFERENCES

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