Phân tích SWOT và chiến lược kinh doanh di động của vietel chi nhánh vũng tàu

Phân tích SWOT và chiến lược kinh doanh di động của Vietel
chi nhánh Vũng Tàu

Theme:
Analyze external environmental factors which affect business strategy of providing
mobile services of Viettel branch in Vung Tau – Military Telecom Corporation in
the period of 2013 – 2015.

Table of contents
I. INTRODUCTION
II. ANALYSIS OF EXTERNAL ENVIRONMENT
1. Analysis of general environment (PEST)
 Politic and Legal
 Economic
 Social
 Technological

 Environmental
2. Analysis of industrial environment


 Life circle of mobile services
 Five competitive forces
3. Opportunities and Challenges
 Opportunities
 Challenges
4. EFE Matrix
5. Competitive comparison
III. CONCLUSION
IV. REFERENCES

I. INTRODUCTION
Military Telecom Corporation is established via the Decision 2097/2009/QD-TTg issued
by the Prime Minister on 14/12/2009. Viettel is a totally state-owned corporation having the
capital of 50.000 billion VND. Also, the corporation has its own legal status, seal, icon and
specific regulations.
Business activities: Providing telecom services, transmission, postage, equipments,
financial investment, real estate investment, import-export and foreign investments.
Viettle is voted to be the strongest brand name in Vietnamese telecom market by
customers.

The corporation is also in the top of 100 biggest telecom brands in the world
Vung Tau branch – Military Telecom Corporation.
-

Established in 02/04/2002.

-

Address: Truong Cong Dinh Street, Nguyen An Ninh Ward, Vung Tau city.

-

Website: .

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Phone number: 064.250111.

-

Business field: Telecom services and Information technologies.

-

Number of employees: 164.

-

Revenue in 2012: 771,774 billion VND.

-

Revenue structure in 2012:


-

Mobile subscribers market share in 2012:

II. EFFECTS OF EXTERNAL ENVIRONMENT
1. General environment


 Political and legal:

The politic situation and social security in Vung Tau are very stable. In 2013, the
Government continues tightening the management for prepaid subscribers and promotions
(newly activated subscribers can not have money added into account), which impacts directly
to the development of new subscribers.

 Economic:
Being one of the most dynamic and potential cities across the nation, Vung Tau locates in the
key economic triangle of the South. The city has all conditions for economic development,
especially marine economy such as oil and gas, maritime, tourism, fishing and aquaculture.
In the period of 2010-2015 and orientations to 2020, the province focuses on
developing marine economy, making Vung Tau become a modern industrial province and
modern seaport in 2015. However, the macro-economic situation has not been significantly
improved, especially for strong industries of the province (shipbuilding, engineering, seafood,
sea port, tourism ...). According to the plan of economic growth of People’s Committee, GDP
of the province is expected to reach 11.5% in 2013. The province has 14 industrial zones: 8
zones are active 9 zones have Viettel cables.
 Social:

Total population of Ba Ria-Vung Tau is 1,060,250 million; the number of people aged from
12 to 70 is 800,136; the market has gradually approaching the saturation point. Per capita
income is 33 million VND / year; the province is expected to attract about 12,000 to 40,000
workers in 2013. Annually, Vung Tau welcomes 4-5 million tourist arrivals.
 Technological:

The provine has high economic growth (over 10% for the past years) and high per
capital. Locals tend to use new and high-tech services (3G, content service, value
added and OTT-Over the Top…).
 Điều kiện tự nhiên:
The climate is divided into 2 seasons: wet and dry. Being a coastal province is a favorable
condition to develop tourism, oil and gas extraction, fisheries and aquaculture but these


activities must be affected by storms. In dry season, Base transceiver Stations can fire; In wet
season, storms can cause power outages and information disruption, which has direct impacts
on the quality of services.

2. Industrial environment:
a. Analysis of circle-life of mobile service in Vung Tau
-

Mobile services market in Ba Ria Vung Tau is reaching saturated phase:

-

Total population of the province is 1,060,250 million;

-

Number of people who are able to use mobile services and aged from 12 to 70 is
800,136; Number of people who used mobiles is 772,655.

-

Total subscribers: 1,072,960 (more than 300,000 using 2 phone numbers).
=> For such saturated market, the main competitive tool is price.
=> Strategies of the companies:

-

Control the prices.

-

Try to remain market share.

-

Have good customer caring services.
Table: Report of Vung Tau Branch in 2012
Company

Number of Subscriber

Market share

Viettel

502,038

46.79%

Mobi

368,240

34.32%

Vina

146,781

13.68%

Other

55,901

5.21%

Total

1,072,960

100%

(Source: Military Telecom Corporation)
b. Market forces
 Relations with customers:

The supply is larger than the demand, and customers have the right to choose services
which are better and cheaper. There is a threat that old customers can give up Viettel services


to switch to other services and that new customers would not choose Viettel services. The
branch must:
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Have reasonable policies to retain loyal customers

-

Find corporate customers and have incentive packages

-

Develop subscribers in sea and island areas in which the branch is dominating on

network infrastructure.

-

Create the credit for customers

-

Providing good caring services

 Relations with suppliers
-

Mobile services relating to suppliers include: Network infrastructure equipments,
terminals, sim phones and scratch cards.

-

Viettel has many choices of suppliers and created strong relations with suppliers.

-

Viettel starts to produce scratch cards and some terminal equipment such as 2G and
3G mobiles, cables, smart stations.

Viettel Vung Tau branch has more advantages than other network providers in terms of
relations with suppliers because of absolute scale advantages and ability to produce
equipments.
 Current rivals
-

Current competitors of Viettel in general and of Vung Tau branch in particular

Though being a powerful group having large-scale, network coverage nationwide, Viettel
still faces up with rivals such as Vinaphone, Mobiphone which has experiences and used
exclusively within the telecom industry for a long time. Moreover, new brands are
emerging as new threats like Gphone and Vietnammobie.
-

Network infrastructure is the same as Viettle:


-

Distribution systems are nearly equivalent:
No

-

Network

1
Vinaphone
2
MobiFone
3
Viettel
Prices are nearly the same:

Store

Dealer

14
8
9

15
38
20

Sale

Number of

Point
1.855
1.905
1.911

employees
172
17
142

Competitve advantages belongs to companies which are more flexible and can
quickly satisfy new demands of customers..
 Potential rivals
Telecom is an industry with high turnovers and profits. Many businesses want to enter the
industry so that potential competitors of Viettel can be new telecom companies which are

established as subsidiaries and supported by Corporations such as EVN, PVEP or
VINALINE. These corporations have large financial resources, extensive branch networks
and are favored by the State. Besides, Vietnam’s joining WTO in 2007 is an opportunity for
foreign businesses to enter the market. Foreign companies with modern technologies and is
management skills will make Vietnamese telecom market become more colorful.
 Substitute products:

Firstly, it is clear that cell phone products are still used by people and businesses although
these products are quite outdated and inconvenient. This is a left segment and Viettel can have a


huge number of customers if the company can capture the sentiment people who are familiar
with wired telephones.
OTT (over - the - top content) service: this application allows free charge messages and
calls on mobile. In Vietnam, there are many international applications like Viber, WhatsApp,
LINE, Kaokao Talk ... There are also applications issued by domestic suppliers such as Zalo
(VNG), Chat FPT (FPT) ... Other applications such as Yahoo, Facebook, Skype ... also provide
similar features.
The cause of the strong growth of OTT applications is that the number of smartphone
users is increasing. Also, technologies like WiFi or 3G are becoming more and more popular.
Users only need to access applications stores on platforms of IOS, Android, BlackBerry or
Windows Phone to download, install, log in and use these applications immediately. Users can
also use these services as long as they can connet their smartphones to Internet via Wifi or 3G.
According to a recent publication of OTT in Vietnam, there are about 3.5 million Viber users, 1
million LINE users and 2 million Zalo users ... The figure indicates the rapid growth of OTT
applications though these applications have just emerged in Vietnam for 1-2 years
OTT makes revenues of Viettel, Mobifone and Vinaphone reduce about trillion VND every
year. This is a challenge for Viettel Vung Tau since the rate of smartphone users in the province is
quite high.
3. Opportunity and Challenge:

a. Opportunity
 Opportunity to develop 3G subscriber:

Ba Ria - Vung Tau province has high GDP and per capita income. The province has
good conditions to develop 3G subscribers. Viettel Vung Tau is one of 15 provinces in which
3G network is supported well as 2G network. Terminal equipments are manufactured by
Viettel with cheap prices and suitable with customers’ tastes. This is an opportunity for
Viettel to attract 3G customers as well as develop second 3G subscribers. Viettel has an
opportunity to reinforce the leading position in Vung Tau market.
 Opportunity to develop new subscribers from emigrants:


It is estimated that industrial zones will attract more than 12,000 new workers in 2013.
Viettel has full coverage over these industrial zones. This is an opportunity for Vung Tau
branch to develop new subscribers and increase the market share.
 Opportunity to develop new subscribers in islands:

Up to now, Ba Ria - Vung Tau has 52 port projects, including 18 active ports, with a
total capacity of about 34 million tonnes of cargos / year, 11 projects are under construction,
23 ports are in the stage of investment preparation.
Marine – island tourism is a key economic sector. Annually, there is about more than 6
million tourist arrivals come to visit and take leisure activities. Tourism revenue can reach
trillion VND every year.
In the strategy of developing seafood sector to 2015, Ba Ria - Vung Tau confirms that
fishery is one of leading industries in the economic development of the province. Currently,
the province has nearly 6,300 vessels with a total capacity of 725,417 CV. In which, offshore
fishing boats account for 40%, equivalent to 2,518 boats. Vung Tau Viettel still dominates on
coverage areas in islands. This is an opportunity for Vung Tau branch to develop new
subscribers.
 Opportunity to develop new subscribers from corporations:

The province has 14 industrial zones and 29 industrial clusters, providing jobs for more
than 42.000 larbors inside and outside province. Viettel Vung Tau has certain pride and brand
name in the region. The branch has conditions to cooperate with companies on providing
corporate management software, technological application, and then develop mobile services
with highly incentive packages.
 Opportunity to develop subscribers from high schools in the province using SMAS:

School Management System (SMAS) is a software system which is designed,
constructed and provided freely to schools by Viettel. The number of pupils from 6 th grade to
12th grade is 93,014. When SMAS is applied, many parents use Viettel moblie service as
second sim phone to manage their children.
b. Challenges


 VinaPhone and MobiFone have built stations in inslands. This is a threat for Viettel since
Viettel used to be nearly exclusive for sea and insland coverage.
 Afterpaid subscribers like VinaPhone – MobiFone –VNPT use free charge policy for internetwork conversation, leading to the destruction of the market (a dumping pattern).
 Vietnamobile focuses on student segment (ARPU of Vietnamobile is only 1.2 USD), thus,
Viettel can lose customers who are pupil and student.
 The development of OTT service can reduce the revenue of Vung Tau branch since 3G
subscribers are developing rapidly.
 Macro-economic situation has not been improved, especially for strong industries of the
province (Shipbuilding, engineering, seafood, tourism…), affecting the growth of telecom
industry.
 Competitive advangtage of Viettel is very uncertain; Competition on prices is not a stable
competitiveness.
 Demands of customers are higher and higher, thus, improving customer caring services is
also a challenge for Viettel, especially when Mobiphone has been awarded to have the best
caring services over the past 5 years.

* General assessment on the industry:
Telecom industry is profitable and has a long life-circle but the attraction of this industry has
been reducing because of some causes:
- There are 5 molibe service providers in the market so customers have many choices
- Threat of substitute product (Over the Top service).
- Fierce competition.
- The market is reaching saturated point
- Require large investment and high technology


4. Table of EFE matrix
(EFE matrix)
(Opportunities)

Weight

Ability to
response

Total
point

1. Develop 3G subscribers

0.15

3

0.45

2. Develop new subscribers in sea and insland areas
3. Develop new subscribers from emigrants
4. Develop new subscribers from corporative customers
5. Develop new subscribers from parents
(Threats)
1. Competitors enhance to cover sea and island areas.
2. Competitors use free charge policy for internal

0.05
0.15
0.05
0.1

1

2
2
4

0.05
0.3
0.1
0.4

0.15

3

0.45

0.1

2

0.2

0.15

3

0.45

0.05
0.05
1

1
2

0.05
0.1
2.55

conversations
3. Potential competitors focus on certain segments
(pupils, students, workers in industrial zones)
4. Development of OTT service
5. Macro-economic situation has not been improved
Total

Conclusion: Vung Tau branch can adjust well to external environment.

5. Competitive comparison
Company
Successful factors

Weight

Viettel
Rank
Total

Mobiphone
Rank
Total

Vinaphone
Rank Total

point

point

point


1.
2.
3.
4.

Advertising
Product quality
Competitive price
Administrative uman

5.
6.
7.
8.

resource
Financial position
Loyal customer
Global expansion
Market share
Total point

0.1
0.2
0.2

2
4
3

0.2
0.8
0.6

3
3
3

0.3
0.6
0.6

2
2
3

0.2
0.4
0.6

0.15

4

0.6

3

0.45

3

0.45

0.05
0.1
0.05
0.15
1.00

4
3
4
4

0.2
0.3
0.2
0.6
3.5

3
4
1
3

0.15
0.4
0.05
0.45
3

2
3

1
2

0.1
0.3
0.05
0.3
2.4

III. CONCLUSION
In order to build a business strategy, managers must objectively analyze advantages
and disadvantages, strengths and weaknesses of their own businesses in comparison with
those of other, and create competitive advantages. Besides, it is essential to do industry
analysis to avoid wrong directions on reaching customers and achieving certain position in
the industry.


IV. REFERENCES
1.

“Strategic Administration” materials of the Course;

2.

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