Management consultancy report for viettel part 1 analysis of viettels management and operation

FOREIGN TRADE UNIVERSITY FACULTY OF INTERNATIONAL EDUCATION MANAGEMENT CONSULTANCY REPORT for VIETTEL Student Diêm Thị Hải Vân Student ID 2105002296 Cohort F – UON – M – 3C Semester I Academic year 20[.]

MANAGEMENT CONSULTANCY REPORT

for

VIETTEL

Student: Diêm Thị Hải Vân Student ID: 2105002296 Cohort: F – UON – M – 3C Semester: I

Academic year: 2022-2023 Instructor: Nguyễn Phương Chi Headteacher: Bùi Mai Anh Submission date: 16 - 1 - 2023

Part 1: Analysis Of Viettel's Management And Operation 3

Part 2: Comment On The Management Of Viettel And Offer Solutions 23

1

Part 1: Analysis Of Viettel's Management And

Operation 1 Introduction to company

Viettel is a military telecommunications corporation with 100% charter capital

of the state This is a business enterprise in the field of post and

telecommunications with the main product being mobile network services The company introduction is the summary of the most general information about Viettel military telecommunications group

1.1 Company history

Viettel military telecommunications company was formerly known asElectronic Information Equipment Company, established in 1989 In 1995, thecompany officially became the second service provider in Vietnam and changedits name from an electronics and equipment company to a military electronicsand telecommunications company with the transaction name Viettel

By 2000, Viettel had tested and successfully provided a long distance telephoneservice using VoIP technology on the Hanoi - Ho Chi Minh route.In 2003,Viettel began to popularize and expand its fixed-line telephone service businessacross all regions of Vietnam and began to invest in basic telecommunicationsservices

Beginning in the third quarter of 2004, a turning point of Viettel's developmentwas marked when the 098 mobile network officially came into operation By

2005 From a military electronics and telecommunications company, Viettelofficially became a military telecommunications corporation under thedirectives of the central government and the state

On April 5, 2007, Viettel Telecommunications Company (Viettel Telecom)under Viettel Military Telecommunications Corporation was established, on thebasis of merging Viettel Internet Companies, Viettel Fixed Phones and MobilePhones After more than 30 years of operation, today Viettel has affirmed itsposition as one of the number one telecommunications groups in Vietnam withleading quality post and telecommunications services

1.2 Company's Vision

Since its establishment and operation, Viettel has always tried its best to fulfillthe goal of "universal telecommunications services" By 2018, Viettel hasofficially completed this long-term goal and repositioned the brand for a new

development step, a new phase that is "The mainstay, pioneer in creating digitalsociety in Vietnam" Vietnam"

Also in 2018, the military telecommunications corporation Viettel released astatement about a new vision that is: "to become a leading technology businessgroup, continue to maintain the leading position in Vietnam in the field oftechnology telecommunications and high-tech industry, participating in the top

150 largest enterprises in the world by 2030 and at the same time being apioneer in creating a digital technology society

1.3 Company's Core Value

As one of the No 1 telecommunications groups in Vietnam, participating in thetop 15 of global telecommunications companies in terms of number ofsubscribers, during more than 30 years of development, Viettel has always beenloyal to eight core values :

Practice – Challenge – Adaptation – Creativity – System – East and West –

Soldier – Viettel Common House

These are the core values and corporate culture that have helped Viettel always

be in the top five enterprises with the best working environment in Vietnam andpromote the creativity and spirit of giving of the team staff to bring thecompany remarkable achievements in the post and telecommunications industry

in Vietnam Thanks to persistently pursuing these core values, Viettel hasalways kept its own unique identity, created many values for society and wonthe trust of customers

2 Environmental Analysis 2.1 External environment

2.1.1.Politics

Vietnam is one of the countries that is highly appreciated for the stability of thepolitical situation Vietnam has a single, systematic political apparatus to ensurethat all the country's problems are resolved in a consistent manner Regardingforeign affairs, Vietnam always maintains a neutral status on disputed issues inthe world and does not participate in any conflicts

In addition, Vietnam has always maintained and developed friendly andbilateral relations with other countries to maintain the national securitysituation The stable political situation has helped the company to developsustainably and feel safe when investing in expanding the market

Besides the domestic situation, the fact that Vietnam is a member of prestigiousworld organizations such as the World Economic Organization (WTO), theUnited Nations, also creates a premise and opens the door for Viettel toaccess to foreign markets.

2.1.2 Economics

Vietnam's constantly opening and integrating market economy has createdmany opportunities for Viettel to expand its scale and rapidly develop

Graph of GDP growth rate of Vietnam in the period 2011-2021 (Source: Viet

Times News & Analysis)

Based on the two graphs above, we can see that over the past decade, despitemany fluctuations, in general, Vietnam's economic situation still has stablegrowth, except for a decline in economic growth serious in 2020 due to theimpact of the Covid-19 epidemic A stable economy is an opportunity as well as

a solid foundation for Viettel to constantly develop and expand its market share

Not only the economy in general, but the telecommunications industry inparticular, has also experienced outstanding growth, which is reflected inimpressive numbers According to the economic report of the first 6 months of

2022 of the Ministry of Planning and Investment, the revenue oftelecommunications activities in our country is 168.4 trillion VND, up 6.6%

over the same period last year Mobile subscribers and internet accesssubscribers also grew strongly.

The positive signs of the Vietnamese economy in general and thetelecommunications industry in particular have opened up the potential andpromoted the development of Viettel

However, the year 2022 is turbulent with the volatility of gasoline and oil pricesdue to the impact of the conflict between Russia and Ukraine and the seriousinstability of the stock and financial markets There are many pressures andchallenges for companies in Vietnam in general and Viettel in particular

2.1.3 Social - Culture

The business activities of an enterprise are not only affected and affected by thetarget market but can be influenced by all factors related to society and thegeneral culture of the host country

With a culture that has both unique national imprints and a spirit of internationalintegration like Vietnam, it is a fertile land for Viettel to exploit customers.Currently, translating, exchanging and updating information throughtelecommunications networks is gradually becoming one of the essential needs

of the people

People of all ages, genders and occupations need a mobile network, especially

in the current era of information explosion and social networking Thiscontributes significantly to stimulating demand for Viettel and helping thecompany's services reach many new customers

Besides, the Vietnamese people have an advantage that they grasp new trendsvery quickly and are very sensitive to new things This is also a factor that helpsthe company to breathe energy to develop new services without having to worryabout the ability to access the market

Besides, the intellectual level in our country is increasingly improving, there aremany excellent and outstanding individuals that will help businesses save alarge amount of money when they do not need to hire many foreign experts Inparticular, compared with some countries in the region and the world, the

standard of living and average income in Vietnam is not too high, which is also

an opportunity for Viettel to get a source of labor at a low cost

2.1.4 Technology

Technological factors for the telecommunications industry can be considered as

a key factor leading to the success of an enterprise In this industry, a companywith technological acumen will gain a competitive advantage becausetechnology will directly affect two factors in the business that are the qualityand the individual cost of products and services service

The era of technology boom with the strong development of wireless networkssuch as 4G, 5G, has created not many opportunities for Viettel to constantlyimprove, upgrade or create services new service However, the explosion anddiffusion of technology also brings many challenges as more and morecompanies enter the industry and old competitors are constantly changing

2 1.5 Environment

Natural and environmental factors including climate, weather, geographicallocation, natural conditions also cause Viettel some obstacles in marketexpansion because today there are still areas in Vietnam Areas withundeveloped infrastructure are difficult to access and build stores

2 1.6 Legal

In terms of law, Vietnam's Economic Code also has many beneficial provisions,

to encourage businesses to develop, especially the telecommunications serviceindustry, an industry that helps the country integrate with the world quick way.2.2 Internal environment

2.2.1 Strengths

● Stable financial resources

Viettel is an economic - defense company

owned by the state, so 100% of the capital belongs to the state Viettel's chartercapital is up to VND 50,000 billion, of which Viettel's total debt so far is onlyabout VND 6,000 billion due to delayed payment of equipment purchases Asthe leading large telecommunications group in Vietnam, Viettel's financialresources have been accumulated over decades, plus the mechanism to supportbusinesses in using the science and technology development fund, so Viettel iscompletely proactive in the field of communication investment anddevelopment of telecommunications and information technology networks.Almost all Viettel's business or investment activities do not have to borrowmoney from banks but come from self-financed capital

● Positive corporate culture

Corporate culture or the environment inside the company is one of theimportant factors affecting the psychology and working attitude of employees.Viettel from the early days of its establishment has determined the importance

of this factor and constantly innovates to adapt to the times, to the era oftechnology and to create a younger, dynamic environment for employees.positive as the general trend

That change is most clearly shown through the development and change of thecore values that the company has established Previously, Viettel's core valueswere only encapsulated in three words: caring, innovation, passionate, but up tonow, these values have been developed and expressed through 8 words whichare practice – Challenge – Adaptation - Creation - System - East - West -Soldier - Viettel common house

Thus, the old values have not been lost but have been improved, resonating withthe elements of the times to form a more dynamic, "trendy" Viettel It is thetimeliness and efforts to change that culture that by 2021, Viettel has beenhonored by Anphabe for the 5th time in a row as a company with the bestworking environment is the best in the information technology -telecommunications industry in Vietnam and is ranked 3rd in the list ofenterprises with the best working environment in Vietnam

Not only is it recognized by domestic survey sites, but Viettel's healthy,progressive and civilized business environment is also recognized by famoushuman resources magazines in the continent 2022 is the second year in a rowthat Viettel has been awarded the HR Asia magazine - HR Asia

● Product quality, leading service

Viettel's service quality is always proportional to the brand's reputation It is notnatural that Viettel has a leading position in the Information Technology -Telecommunications industry in Vietnam and is constantly expanding themarket to other countries outside

Since 2003, Viettel has repositioned its brand twice with different missions.However, there is one thing that has always been maintained by the companyfrom the early days until now, which is the business philosophy

Viettel's business philosophy is "Put customers first - Put yourself later" Thecompany always listens, learns the needs and desires of customers to constantlyimprove and upgrade its products.

The company has had many pioneering products in the industry, which havebeen positively received by consumers and become a formidable competitor toother companies Viettel is the first company to provide 4G network services inVietnam and the first operator in the world to have 4G coverage nationwideright after opening the service And it is also Viettel that provides 5G networkservices - the strongest type of network today for subscribers in Vietnam andwhen roaming internationally

To evaluate the quality of a company's products, the most objective tool is thecustomer On September 6, 2021, a global media and market research companyconducted a survey with 1000 people (of which 510 are using Viettel'stelecommunications services and 490 are using Viettel's telecommunicationsservices) services of other carriers) on service quality of carriers

Network operators are evaluated based on 5 criteria: wave quality, connectionspeed at peak times, service quality and rates, and data upload speed The resultafter the survey is that 85% of customers participating in the survey are willing

to recommend Viettel's services to their relatives This result has confirmedViettel's leading position in terms of quality

2.2.2 Weakness

Besides the outstanding strengths, Viettel also has some limitations that mayaffect the development of the company

● Lack of in-depth management experience at senior level

Viettel is a company under the Ministry of National Defense, most of the keyplayers in the group started as soldiers and then turned to run businesses.Because they are soldiers, they do not have in-depth training in business andbusiness operations, so they lack experience in management In many stages,the management of senior leaders is still quite rigid, not suitable for the currentmarket

● Limited business capital

Since most of the company's capital is self-financed, there are no loans orinvestments from abroad, so the company cannot rotate capital quickly andcontinuously

Besides, Viettel Corporation is promoting to expand its market share abroad, so

it invests a lot of foreign currency (USD) in this category This leads to thesituation that domestic subsidiaries do not have enough USD to pay forequipment purchase contracts, leading to a bank debt of up to VND 6000billion

2.2.3 Opportunities

Technological development along with the promotion policies of the State hascreated many potential opportunities for Viettel

● State promotion policy

To encourage businesses to expand their market share abroad, the Governmenthas encouraged businesses with economic potential to expand their investmentbeyond the country Especially after Vietnam joined the WTO in 2007, it hasbrought businesses in general and Viettel in particular a lot of internationalbusiness opportunities

To create a stepping stone for Viettel to develop more strongly, the Governmenthas revised and supplemented the business registration regulations of thetelecommunications industry and restricted the establishment of mobiletelecommunications companies in the domestic market water

● The strong development of information technology

In this industry, in the 4.0 era, the demand for using the internet andtelecommunications network services is increasing, creating conditions for theinformation technology industry to develop dramatically

During the three years of the Covid-19 epidemic, most industries were stalleddue to lack of supply and interrupted stages, but the telecommunications andinformation technology industries remained active continuously thanks to thegreat need to grasp information of the people It can be said that in that difficultperiod, this is the only industry that has not been interrupted and has become abright spot for the country's economy

Vinaphone.In addition, young startups with a lot of creativity can also bepotential threats to watch out for.

Currently, Viettel has joined 7 other countries in the world As a "rookie",Viettel will certainly be under a lot of pressure from big companies in the hostcountry

● Researching customers' desires and preferences

In Vietnam, Viettel is meeting the needs of customers very well, constantlyproviding new services to keep up with the trend However, in each country, thedemographic and cultural characteristics, the preferences of the people aredifferent This also partly creates certain barriers for Viettel in the internationalmarket

3 Company Strategy

3.1 Competitiveness Strategy

To maintain its position as well as prevail over competitors Viettel has come upwith smart competitive strategies to "retain" its customers

a Price leadership strategy

Since its establishment, Viettel has chosen to do business in the cheap direction

so that all objects can access and use it Because the target customer group isstudents, workers and middle-income people, all the company's products haveattractive prices with a lot of promotions consumer psychology and conditions

2007 marked the milestone when Viettel officially entered thetelecommunications service industry when announcing the Tomato package.The purpose of Viettel at that time was to democratize mobile communicationservices With the price to maintain the service of 0 VND, Viettel Mobile hassuccessfully brought its name and service to cover up to 80% of domestic areas

In 2008, Viettel launched an unprecedented promotion program that is apromotion for listeners Listeners for every 1 minute of calling will be added

100 VND to the promotional account Thanks to this promotion, the number ofsubscribers and users of Viettel's listening and calling services increaseddramatically, helping Viettel to stay ahead of two rivals, Vinaphone and Viettel

Up to now, Viettel has remained loyal to its low-cost service orientation and hasconstantly upgraded promotions Still the same discounting and discountingpolicies, but they are modified in many different forms such as discount

programs, discounts and accumulating bonus points when paying throughaffiliated banks or via e-wallets from Viettel Money.

The price leadership policy has brought Viettel huge profits and outperformedits competitors

Chart of business results in the first half of 2022 of 3 operators Viettel,Mobifone and VNPT (the parent company of Vinaphone) (Source:

Vietnambiz) b Product differentiation strategy

Right from the moment it entered the market, Viettel has shown itself to be acompletely "different" guy In the period of mobile communication services,with the presence in Vietnam, most companies are blind to profit by offeringexpensive packages Going against the majority, Viettel offers the yard a series

of cheap packages and programs

Unprecedented promotions And because of that, even though it has just enteredthe market, Viettel's name has quickly left an impression on consumers andgradually dominated the industry market share

More and more, Viettel shows more and more timeliness and superioritycompared to its competitors While Mobifone and VNPT still only focus ontelecommunications network services, Viettel has continuously expanded itsbusiness segments, encroaching on both IT solutions and digital services,