Chiến lược kinh doanh của Viettel

Table of Contents

Introduction
Following assignment 1 and 2, in this assignment 3, I will continue to analyze and report the strategy of my
chosen company - Viettel. In addition, I will evaluate the company's strategies using various evaluation methods
such as SAFe criteria and QSPM matrix.

LO4. Apply models, theories and concepts to assist with the understanding and
interpretation of strategic directions available to an organization.
1. Propose at least two strategic plans
The strategy of expanding and developing domestic mobile telecommunications market share of Viettel Military
Telecom Corporation in the period of 2015 to 2019 is built on the following foundations:
- Continue to affirm Viettel's position, brand and service quality in the domestic telecommunications market;
- Ensuring to maintain and lead the market of mobile telecommunications in Vietnam with a market share of not
less than 40%.
- Become one of the 25 largest telecommunications brands in the world in 2019 and achieve the level of
operators of developed countries.


From the analysis of the business environment in assignment 1 and 2, I proceeded to summarize the external
environmental factors that can help administrators choose the appropriate development strategies of Viettel.
Finally, I apply the quantitative strategy planning matrix (QSPM) to the input data from the aforementioned
analyzes to determine objectively which of the above strategies is The most attractive and worthy way for the
Group to pursue to successfully implement its .
a. Market development strategy:
Based on the SWOT matrix combining strengths and opportunities, a market development strategy can be taken
advantage of the strengths of parallel coverage, the ability to meet the market to take advantage of the largest
market opportunities, namely rural areas villages, mountainous areas and islands to continue developing
markets before being saturated and degraded.
Market development strategy is a strategy to grow service business, increase the group's position by focusing on
developing products and services that are currently the group's strength to attract and dominate the market.

This is a strategy that requires diversifying products and services in order to take advantage of the strong capital
and available human resources and a distribution network across provinces to expand products and services.
Telecommunications market in Vietnam is growing very strongly, the network operators are currently competing
for market share is very fierce. With Viettel's market share of 40%, Viettel needs to make efforts to offer cheap
information services, support strong advertising marketing to increase the market share of products and
services.
As of June 2018, the population of our country is about 98 million but the number of mobile subscribers is
estimated at 122.6 million (up 5.2% compared to the same period in 2017), thus, the mobile market growth is
somewhat slowing down and approaching saturation phase. Although the telecommunications market in
general and Viettel's mobile market recently have increased, the speed is much slower than the period 2013 to
2016. Therefore, Viettel needs to maintain the existing domestic market and strengthen market segmentation in
remote residential areas, targeting poor households who are civil servants, pupils, students, middle and low
income classes. (DanSo.Org, 2019).
b. Product development strategy.
This is a combination of technology strengths, research and development capabilities and wide coverage to offer
new and varied products and services to meet the challenges of the existing market.
A product development strategy is a new product development strategy for consumption in existing markets. As
a company operating in many fields with a diverse product range structure, with a large market, Viettel needs to


research and develop product development strategies that are suitable for customers' tastes. with market
demand.
Diversification of products and services must be carried out in order to take advantage of the Group's strong
capital and available human resources and a system of distribution channels throughout the provinces. The
needs of customers require more attention, better service. The opportunity of the developing market is
therefore the Group has launched service packages suitable to customer needs while expanding business areas
to take advantage of the Group's ability to dominate the market with pepper leads a number of areas with
advantages.
Using the strategy to reach customers, Viettel has been searching for new market segments such as customers
with a high demand for listening (Tomato package), young people who like to use value-added services (such as

Ciao package). And this network has "caught" the opportunity to continually offer new services that bring in
great revenue. The I-muzik service, after a year, was launched by eight million users. In addition, Viettel also
offers many types of services such as sharing accounts, receiving and sending email services on mobile phones.
Among the current carriers, Viettel is currently the provider of basic services and the most added service with
more than 18 services. The main services that attract 3G are Mobile TV, Imuzik 3G, Pixshare, Yahoo Chat, IM, etc.
Viettel is researching and adding some additional services such as Video conference, live sport, digital statistics
to continue to support and attract customers.
c. Strategies to diversify the economic sector
Combining financial strengths, challenges of the market and limitations of Viettel in the SWOT matrix, I realized
that I could come up with a strategy to diversify business of Viettel. Because the market is about to be saturated
internally, there are restrictions on the operating structure and service quality, which is difficult to compete with
other companies but has a large financial and network potential business to ensure a higher average profit.
With this strategy, Viettel will gradually shift its investment to other business sectors. First, it is necessary to
focus on shifting into relevant fields to take advantage of existing experiences and advantages such as:
- Investment in the production of telecommunications and informatics equipment on the basis of further
development of existing factories and technologies;
- Invest in building the retail distribution network of telecommunications and informatics equipment on the
basis of the transaction network system;
- Investing in import and export is firstly importing and exporting related products such as telecommunications
equipment, switchboards, electronic components for production, investment, etc.


- Investing in the development of the postal sector, or gradually taking part in other fields such as contributing
capital to banking, real estate, transportation, electricity production, etc.
2. Evaluate alternative strategies using various assessment methods (e.g. SAFe criteria, Quantitative
Strategic Planning Matrix – QSPM) while taking mission and vision of the chosen company into consideration.
“The strategic-management process can be described as an objective, logical, systematic approach for making
major decisions in an organization. It attempts to organize qualitative and quantitative information in a way that
allows effective decisions to be made under conditions of uncertainty. Although strategic management is not a
pure science that lends itself to a nice, neat, one-two-three approach, the process is widely viewed to consist of

three distinct stages: strategy formulation, strategy implementation, and strategy evaluation. The QSPM fits into
the first stage, strategy formulation, and is an excellent tool for deciding among feasible alternative strategies”.
(David, 2009)

Matrix of External Factor Evaluation of Viettel (EFE)
External environmental factors

Critical level

Impact

Point

0.20

4

0.80

0.10

3

0.30

0.04

2

0.08

0.10

3

0.30

0.20

4

0.80

companies

0.05

3

0.15

The growth of the mobile pine market has slowed down.

0.10

3

0.30

Opportunity

GDP continuously increased for 10 years at over 6%.
Political stability, legislation on competition, telecommunications,
information and transmission gradually improved
The government restricts the establishment of new mobile
telecommunications carriers
Technology policies on telecommunications and information
technology are given priority.
Large population (more than 90 million people), large market, one
of the fastest growing telecommunications markets in the world.
Challenge
The competitive environment between mobile telecommunications


Pressure from customers using mobile telecommunications
services to switch to use by other companies.

0.15

2

0.30

mobile telecommunications market.

0.04

1

0.04

Products that replace traditional mobile services.

0.02

1

0.02

Total

1

Challenges from new entrants, international integration in the

3.09

With the evaluation point according to EFE matrix, we can see that Viettel is in an attractive environment
because of high barriers to entry, substitutes with little or no impact, and Viettel's competitive level is good in
the market. The economic, political, demographic, technological and financial conditions are all favorable for
Viettel's growth in the future. However, there is also a great challenge that is the increasing competition of
companies in the industry; slowing market growth and customer pressure on costs and service quality.

Matrix of Internal Factor Evaluation of Viettel (IFE)
Internal environmental factors

Critical level

Impact

Point

0.15

4

0.60

0.15

3

0.45

0.10

3

0.30

0.05

2

0.10

0.05

3

0.15

0.10

4

0.40

0.15

3

0.45

0.10

3

0.30

Strength
Network and range coverage, ability to meet 100% of
communes and islands nationwide.
Mobile telecommunications market share accounts for
40%.
Strong finance has great potential.
Modern technology, well invested, capable of research,
development and innovation.
Prestige and brand are affirmed in domestic and foreign
markets.
Price policy, suitable products and services.

Weakness
The organizational and management structure is heavily
dependent on defense activities, bringing many
administrative features.
The quality of service is not uniform and not high.


Loyal customers (postpaid subscribers) are low
compared to Mobiphone and Vinaphone.
Human resources are crowded, hot development has not
met the job requirements.
Total

0.05

1

0.05

0.10

2

0.20

1.00

3.00

From the IFE matrix above, Viettel Group has a total score of 3.00, showing that Viettel is a strong internal

corporation. This is one of the great competitive advantages of Viettel in the mobile telecommunications market
in Vietnam.
Applying quantitative strategic planning matrix (QSPM) to the input data from the above analysis to help
quantify to objectively determine which of the above strategies is most appealing and desirable. It is worth the
Group's pursuit to successfully accomplish its goals. The QSPM matrix is built on the basis of:
- List of major external opportunities / challenges and key strengths / weaknesses from the EFE and IFE matrix;
- Integrating and analyzing selected strategies: market penetration & development strategy, product
development strategy and operational diversification strategy.
QSPM matrix for Viettel
The strategy
Important factors

Critical

Penetration

level

and

market

development
GDP increased continuously over 6% in

competition,

economic sector)

0.80

3

0.60

4

0.80

0.10

3

0.30

3

0.30

3

0.30

0.04

4

0.16

3

0.12

3

0.12

the 0.10

3

0.30

4

0.40

3

0.30

at over 6%.
legislation

(Strategies to diversify the

4

GDP continuously increased for 10 years

stability,

development

activities

0.20

10 years.

Political

Diversify

Product

on

telecommunications,

information and transmission gradually
improved
The

government

restricts


establishment

of

new

mobile

telecommunications carriers
Technology

policies

telecommunications

and

on
information 0.20

4

0.80

3

0.60

3

0.60

0.05

3

0.15

2

0.10

4

0.20

0.10

3

0.30

2

0.20

2

0.20

0.15

4

0.60

2

0.30

3

0.45

international integration in the mobile 0.04

1

0.04

3

0.12

4

0.16

0.02

2

0.04

3

0.06

4

0.08

0.15

4

0.60

2

0.30

2

0.30

0.15

3

0.45

2

0.30

1

0.15

0.10

3

0.30

4

0.40

4

0.40

capable of research, development and 0.05

3

0.15

4

0.20

2

0.10

0.05

4

0.20

3

0.15

2

0.10

0.10

4

0.40

2

0.20

3

0.30

0.15

2

0.30

3

0.45

2

0.30

technology are given priority.
Large population (more than 90 million
people), large market, one of the fastest
growing telecommunications markets in
the world.
Mobile telecommunications market
growth is slowing down.
The competitive environment between
mobile telecommunications companies
Challenges

from

new

entrants,

telecommunications market.
Products that replace traditional mobile
services.
Network and range coverage, ability to
meet 100% of communes and islands
nationwide.
Mobile telecommunications market
share accounts for 40%.
Strong finance has great potential.
Modern technology, well invested,
innovation.
Prestige and brand are affirmed in
domestic and foreign markets.
Price policy, suitable products and
services.
The organizational and management


structure is heavily dependent on
defense activities, bringing many
administrative features.
The quality of service is not uniform and
not high.

0.10

3

0.30

2

0.20

2

0.20

0.05

1

0.05

1

0.05

1

0.05

0.10

2

0.20

4

0.40

3

0.30

Loyal customers (postpaid subscribers)
are low compared to Mobiphone and
Vinaphone.
Human resources are crowded, hot
development has not met the job
requirements.
Total

2.00

6.44

5.45

5.41

According to the evaluation data from the above QSPM matrix, we can easily see that the market penetration
and development strategy has the highest total score of 6.44; while product development strategy and

operational diversification strategy have almost the same score, ranging from 5.45 to 5.41 points. As such, the
domestic mobile telecommunications business strategy suitable for Viettel in the period 2015-2019 is the
penetration strategy and market development. This strategy helps Viettel to promote its strengths and take
advantage of market opportunities in the period of 2015-2019, with the goal of reaching the end of 2019, Viettel
will occupy more than 40% of the market of mobile subscribers with the number of subscribers bags over 50
million.
SAFe criteria
When it comes to building a business strategy, it's often difficult to choose the right one, never really
implementing and evaluating the usefulness and effectiveness of that strategy. So how do we choose? The first
thing we need to do is to decide on a criterion to evaluate our options and a helpful approach is to consider the
Suitability, Acceptability and Feasibility (SAFe) of each criterion. (Whittington et al., 2017)
Suitability
This is perhaps the most important element in the SAF strategy model, because the Suitability of an option is the
key to whether the strategy will do what the company wants it to do or not. Suitability is often assessed against
a number of different criteria that are particularly important for a business or company such as conformance


with the environment, expectations, and competence. These individual match types should then be further
categorized to really reflect the company's specific needs.
Acceptability
The acceptable aspect of the SAF strategic model is all about measuring profitability, risk and stakeholder
response due to a particular strategy. Profits will be measured based on the benefits that stakeholders expect
from the strategy and can be both financial and non-financial, depending on what the stakeholders decide. Profit
calculation can be done by any method such as cost benefit analysis, profit analysis, real option analysis and
shareholder value analysis.
Feasibility
When it comes to it, the feasible part of the SAF strategy model is actually creating or breaking any chosen
strategy. Whether the business has the resources, aptitude and ability to implement the strategy is the key to its
success, so the financial feasibility should be assessed by forecasting and analyzing cash flow, implementation
breakeven analysis and some other financial tests.

(Oxford College of Marketing Blog, 2019)

SAFe criteria of Viettel
Suitability
The proposed strategy can address the opportunities and limitations that Viettel faces. Because with Viettel's
strategy to penetrate and expand the market in the period of 2015 - 2019 based on promoting its strengths to


take advantage of market opportunities, Viettel identifies the market and solution to penetrate. and
development include:
• Markets in rural areas, remote areas, fishermen, mountainous islands: Statistics show that 80% of the
population in rural areas, this is a very large market object because of the growing economy, The cost of using
the phone is getting lower and lower. With the advantage of coverage and the ability to meet customer needs in
these areas, Viettel is very convenient to capture the market. Along with the process of rich-poor division is the
migration from rural to urban areas. Therefore, if these people have used Viettel before, after using it in the city,
the usage rate will be very high and contribute to increasing Viettel's market share in urban areas; With this
object mainly focusing on low-cost phone products, construction costs only focus on good service of making calls
and texting that do not need much for added services.
• Urban market focuses on students, pupils and unskilled workers: The most active and prefer to use
value-added services such as internet, chat, music, social networks such as facebook, etc. Therefore, Viettel
needs to focus on low prices for value-added services to keep existing customers who will become loyal
customers and bring high benefits.
Acceptability
The proposed strategy will probably meet the expectations of the stakeholders (customers). Because Viettel
primarily targets the market segment of workers, civil servants, students, students, rural areas, urban areas, etc.
the middle income class is mainly. Based on the analysis and assessment of the business environment,
considering the identified goals and tasks, the managers need to choose a development strategy and increase
Viettel's position by focusing on developing products and services that are strong as: mobile communication
services, Internet. Continue to maintain different service packages suitable for many objects in society such as:
Parent and child packages; Happy Zone; Tomato; Sumo Sim; Homephone; Sea + ...

Besides, Viettel's level of risk is at an acceptable level. Because Viettel is a company of the Ministry of Defense, it
owns 100% of the capital from the state and now the world economy is recovering but it is still very weak and
unstable. Many difficulties are high inflation, trade imbalance, so the financial risks of Viettel maybe still exist,
affecting business activities and expanding domestic and international market share of Viettel. .
The financial management of the Group during this period should therefore always focus on the ability to
mobilize working capital and use capital efficiently, avoiding waste. The capital mobilization plan must be
consistent with the business and investment programs and not be passive in capital.


Viettel's Finance and Accounting Department must coordinate with other departments such as planning,
investing to make monthly, quarterly and annual financial plans and review regularly the implementation of
those plans to have a basis. raise capital in a timely manner. Financial plans must always take into account the
contingencies and changes that adapt to needs.
Feasibility
The proposed strategy will be effective in practice. Because the number of customers who trust and use Viettel
services is increasing. Viettel has a very strong point that Viettel owns 100% capital from the state. Besides, It
has financial suppliers such as associate companies, MHB, Vinaconex and EVN. Besides, it also has a number of
material and product suppliers such as AT&T (United States), Blackbarry Nokia, Huawei (China), Ericsson
(Sweden), Nokia Siement Network (Finland). So their strategies will be financed. Viettel also has a good and
highly educated human resource. With such a good human resource, they will definitely help Viettel company to
fulfill the set strategies. (Vnr500.com.vn, 2019)
Conclusion
Building a business strategy for a production and business unit is extremely important, difficult and difficult to
implement. In the era of international economic integration and development, building business strategies for
enterprises has long-term meaning, creating orientations and firm steps for stable enterprises to move forward
and reap success. From the basics of strategic direction, Viettel gradually solve issues such as technological
innovation, rationalizing production, expanding markets, improving service quality, developing human resources
to bring The enterprise meets the set strategic objectives.
Viettel Military Telecom Corporation is a relatively late-born enterprise, but in recent years, it has continuously
strived to find a way to adapt to the business environment, despite the Group's operating model governed by

the state. Today, Viettel has gained a firm foothold in the market, is the largest telecom market provider and has
the largest network coverage in the country, the largest provider of high-speed Internet access services
Southeast Asia.


References
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Oxford College of Marketing Blog. (2019). Using The SAF Strategy Model to Evaluate Strategic Options. [online]
Available at: [Accessed 13
Dec. 2019].
Vnr500.com.vn. (2019). Tapdoanvienthongquandoi. [online] Available at: [Accessed 30 Nov. 2019].
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