13 CHAPTER 2: ANALYSIS OF THE CURRENT SITUATION OF BLUE OCEAN STRATEGY IMPLEMENTATION IN MCI VIET NAM CONSULTANT JOTINT STOCK COMPANY...- c2.. Research structure This report contains thr
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Definition of Blue Ocean Strat€ỉy Q n 201112112 11211111 re 3 The Concept of Blue Ocean Strafegy 2L 2 220220112111 21 1512 xce 3 2 The Theoretical Perspective of the Blue Ocean Strategy
1.1 The Concept of Blue Ocean Strategy
Blue Ocean Strategy is a concept that W Chan Kim and Reneé Mauborgne developed in their groundbreaking book It is a strategic framework that challenges traditional competitive thinking It advocates for businesses to seek uncontested market spaces or “blue oceans” rather than competing in overcrowded and highly competitive “red oceans”
In a red ocean, companies vie for market share within established industries, often engaging in fierce price wars and imitating one another’s strategies This leads to limited differentiation and reduced profitability In contrast, the Blue Ocean Strategy encourages companies to create new market spaces by innovation and offering unique value propositions
Fundamental principles of the Blue Ocean Strategy include:
- Value Innovation: Instead of choosing between cost leadership and differentiation, companies should strive for both by innovating to reduce costs while increasing customer value
- Market Creation: Focus on expanding the market by targeting non-customers and creating demand among untapped segments
- Eliminate-Reduce-Raise-Create (ERRC) Grid: This framework helps companies systematically evaluate existing industry factors to eliminate, reduce, raise, and create new elements that set them apart
- Strategic Canvas: Visualize the competitive landscape and identify areas where the company can stand out by diverging from industry norms
- Four Actions Framework: Companies should identify which factors to eliminate, reduce, raise, and create to achieve a blue ocean strategy
By pursuing a Blue Ocean Strategy, companies can break free from head-to-head competition, unlock new growth opportunities, and create innovative value propositions that resonate with customers This approach has been successfully
3 applied across various industries, offering a fresh perspective on strategic planning and market innovation
1.2 The Theoretical Perspective of the Blue Ocean Strategy
The Blue Ocean Strategy offers a theoretical perspective on strategy and competitive advantage that diverges from traditional strategic thinking It introduces several vital theoretical concepts:
- Value Innovation: Blue Ocean Strategy argues that companies should focus on
“value innovation” rather than “value imitation” Traditional strategy often involves benchmarking competitors and imitating their best practices In contrast, value innovation means creating a unique and compelling value proposition that stands apart from what competitors are doing This can involve introducing new features, reducing unnecessary costs, or redefining the industry’s value curve
- Red Oceans versus Blue Oceans: The concept of red oceans represents the competitive, saturated markets where companies compete primarily on price and features This results in a "bloody" and overcrowded marketplace where differentiation is challenging Blue oceans, on the other hand, represent uncharted territories or untapped markets Companies can create new demands in blue oceans and set rules, making competition irrelevant
- Value-Cost Trade-Off: Traditionally, there's a belief that achieving differentiation in products or services comes at a higher cost Blue Ocean Strategy argues that companies can break the value-cost trade-off by challenging industry norms and rethinking value delivery This means they can provide unique value to customers while reducing costs, leading to higher profitability
- Four Actions Framework and ERRC Grid: These practical tools help companies analyse their strategic options systematically The Four Actions Framework prompts companies to identify which factors they can eliminate, reduce, raise, or create to deliver a unique value proposition The ERRC Grid provides a structured approach to strategic thinking, helping organisations decide what actions to take to make a blue ocean
Overall, the theoretical perspective of Blue Ocean Strategy emphasises the importance of innovation, creativity, and a departure from traditional industry boundaries It challenges companies to look beyond competition, focus on value creation, and capture new markets By pursuing a blue ocean strategy, companies can unlock new growth opportunities, differentiate themselves, and achieve sustainable competitive advantage in a rapidly changing business environment.
The implementation of the Blue Ocean Strategy in business model
2.1 The Definition of Blue Ocean Strategy Implementation
Blue Ocean Strategy Implementation is the meticulous execution of the strategic framework known as the Blue Ocean Strategy This approach represents a revolutionary departure from conventional business strategies and seeks to guide organisations towards untapped market spaces and unparalleled growth prospects
At its core, Blue Ocean Strategy Implementation is about translating the high-level concepts and principles of Blue Ocean Strategy theory into tangible actions and outcomes within an organisation It is turning the strategy vision of creating uncontested market spaces — “blue oceans” — into a practical reality
This strategic paradigm shift hinges on recognising that competing in overcrowded and fiercely contested "red oceans" often results in diminishing returns and intense rivalry Instead, Blue Ocean Strategy encourages businesses to venture into uncharted territories where competition is irrelevant and innovative value propositions can flourish
Blue Ocean Strategy Implementation represents a company's commitment to reinventing its market presence by introducing unique value, differentiating itself from competitors, and nurturing a culture of innovation It signifies a profound organisational transformation aimed at breaking free from the limitations of traditional industry boundaries and embracing the opportunity to create new market demand, ultimately leading to sustainable growth and competitive advantage
2.2 The Role of Blue Ocean Strategy Implementation in Strategic Management
The role of Blue Ocean Strategy Implementation in strategic management is pivotal as it offers a unique and innovative approach to strategic planning and execution Blue Ocean Strategy Implementation plays several critical roles within the broader field of strategic management:
- Creating Differentiation: In strategic management, differentiation is crucial to achieving a competitive advantage Blue Ocean Strategy Implementation focuses on creating distinctive customer value by offering outstanding products or services This differentiation can be a cornerstone of the company's strategic positioning
- Risk Mitigation: Traditional strategic management may involve entering highly competitive markets with uncertain outcomes Blue Ocean Strategy Implementation, on the other hand, encourages businesses to explore new, uncontested market spaces Doing so reduces the inherent risks associated with head-to-head competition and overcrowded industries
- Innovation and Creativity: Strategic management involves making critical decisions about allocating resources and pursuing competitive advantage Blue Ocean Strategy Implementation emphasises value innovation, prompting companies to challenge industry norms and develop creative solutions to meet customer needs This emphasis on innovation aligns with the dynamic nature of strategic management
- Market Expansion: One of the core principles of the Blue Ocean Strategy is market creation It encourages companies to expand the market by targeting non- customers and generating new demand This expansionist approach complements the strategic management goal of identifying growth opportunities
- Long-Term Sustainability: Strategic management is about short-term gains and long-term sustainability Blue Ocean Strategy Implementation encourages companies to think beyond immediate market share and consider how to create lasting value for customers This focus on sustainability aligns with the broader goals of strategic management.
The processes associated with Blue Ocean Strategy Implementation
Implementing the Blue Ocean Strategy involves a series of strategic processes that guide organisations in shifting from competitive "red oceans" to untapped “blue oceans." Here are the critical functions associated with Blue Ocean Strategy Implementation:
- Innovation: Value innovation is at the heart of Blue Ocean Strategy Implementation This process involves rethinking the value a company delivers to customers It requires businesses to identify areas where they can simultaneously reduce costs and increase value, breaking the traditional trade-off between cost leadership and differentiation Value innovation leads to the creation of a unique value proposition that sets the company apart from competitors
Market Analysis: Before implementing a Blue Ocean Strategy, conducting a thorough analysis of the current market and industry 1s crucial This process involves identifying the existing competitive landscape, understanding customer needs and preferences, and assessing the strengths and weaknesses of key players in the industry
Strategic Canvas: The strategic canvas is a visual tool that maps the competitive factors that drive success in an industry It helps organisations identify areas where they can deviate from industry norms and create a distinct strategic profile
By comparing their current position on the canvas to potential blue ocean positions, companies can identify strategic gaps and opportunities for differentiation
Four Actions Framework: The Four Actions Framework prompts organisations to ask four critical questions: What factors can be eliminated? What factors can be reduced below the industry standard? What factors can be raised above the industry standard? What factors can be created that the industry has never offered? By answering these questions, companies can identify strategic actions to create a blue ocean
ERRC Grid: The ERRC Grid is a complementary tool to the Four Actions Framework It helps organisations visualise the strategic choices they must make to implement a blue ocean strategy It guides decision-making by highlighting which factors to eliminate, reduce, raise, and create to achieve differentiation Pilot Testing and Prototyping: Before a full-scale implementation, many organisations choose to pilot test their blue ocean ideas This involves creating prototypes or launching small-scale projects to assess the feasibility and customer response It allows for fine-tuning the strategy and reducing risks associated with a complete rollout
Organizational Alignment: Successful Blue Ocean Strategy Implementation requires organisational alignment Leaders must communicate the strategic shift effectively, and employees at all levels should understand their roles in executing the strategy A culture of innovation and a commitment to value innovation should be fostered
- Resource Allocation: Allocating resources strategically is crucial Companies must allocate budget, personnel, and other resources to support implementing their blue ocean strategy Effective resource allocation ensures the necessary investments are made to bring the process to life
- Monitoring and Feedback: Continuous monitoring and feedback mechanisms should be established to assess the progress of the blue ocean strategy This involves regularly evaluating market conditions, customer feedback, and the effectiveness of implemented actions Adjustments and refinements should be made based on this feedback
- Scalability and Sustainability: As the blue ocean strategy proves successful in a puot or initial phase, organisations must consider scaling it up and ensuring its long-term sustainability This process involves replicating the successful elements of the strategy across a broader scope and maintaining a commitment to value innovation
Blue Ocean Strategy Implementation is a dynamic and iterative process that requires ongoing evaluation and adaptation It empowers organisations to create uncontested market spaces, differentiate themselves, and achieve sustainable competitive advantage by challenging industry norms and fostering innovation.
The Factors Affecting Blue Ocean Strategy Implementation
A variety of factors, both internal and external, can influence Blue Ocean Strategy Implementation Understanding these factors is crucial for effectively executing a blue ocean strategy Here are some key factors that can affect Blue Ocean Strategy Implementation:
- Organizational Culture: The existing organisational culture plays a significant role A culture that encourages innovation, risk-taking, and a willingness to challenge the status quo is conducive to successful Blue Ocean Strategy Implementation
Leadership Commitment: The commitment and support of top leadership are essential Leaders must champion the blue ocean strategy, allocate resources, and provide a clear organisational vision
Resource Allocation: Adequate allocation of resources, including financial, human, and technological, is necessary to implement the strategy effectively More resources can be needed to ensure the execution of innovative ideas Employee Engagement: Employee buy-in and engagement are critical Employees at all levels should understand and embrace the blue ocean strategy, as they play a crucial role in its execution
Skills and Capabilities: The organisation’s existing skills and capabilities, as well as its ability to acquire new ones, impact implementation Companies may need to invest in training and development to build the necessary competencies Resistance to Change: Resistance to change is a common challenge during implementation Employees and stakeholders may resist departing from established practices and industry norms
Market Dynamics: The state of the market and industry conditions can affect implementation Economic conditions, market saturation, and the competitive landscape play a role
Customer Behavior: Understanding customer needs and preferences is crucial Customer behaviour or choice changes can impact the success of a blue ocean strategy
Regulatory and Legal Factors: Industry-specific regulations and legal constraints can influence strategy implementation Companies must ensure compliance with relevant laws and regulations
Competitive Response: Competitors may react to a company's blue ocean strategy with countermeasures Anticipating and responding to competitive reactions is essential
Technological Advancements: Technological developments can create opportunities or threats Companies should be tuned to emerging technologies that may impact their industry
Economic Conditions: Economic factors such as inflation, interest rates, and consumer spending patterns can influence the financial feasibility of implementing a blue ocean strategy
Supplier Relationships: Relationships with suppliers and the availability of crucial inputs can affect implementation A reliable supply chain is essential for delivering value propositions
Global Trends: Global trends in consumer behaviour, technology, and trade can have a significant impact on strategy implementation, especially for companies with international operations
Cultural and Societal Factors: Cultural and societal shifts can influence consumer preferences and expectations, requiring companies to adapt their strategies accordingly
Environmental and Sustainability Concerns: Increasing environmental awareness and sustainability considerations can drive product offerings and operational practices changes, impacting strategy implementation
Successful Blue Ocean Strategy Implementation involves carefully analysing these internal and external factors and developing strategies to address challenges and leverage opportunities Flexibility and adaptability are essential, as the business environment is constantly evolving.
The Advantages of Blue Ocean Strategy Implementation
Blue Ocean Strategy Implementation offers several advantages for organisations that successfully adopt and execute this innovative approach to strategic management These advantages can enhance competitiveness, sustainable growth, and long-term profitability Here are some critical benefits of Blue Ocean Strategy Implementation:
Competitive Advantage: Blue Ocean Strategy Implementation allows companies to break free from fierce competition in overcrowded markets (red oceans) By
11 creating uncontested market spaces (blue oceans), companies can establish a unique and differentiated position, giving them a competitive advantage that is difficult for rivals to replicate
Higher Profit Margins: Blue Ocean Strategy often involves the identification of cost-saving opportunities while delivering more excellent value to customers This simultaneous focus on cost reduction and value creation can result in improved profit margins compared to traditional competitive strategies Market Leadership: Companies implementing a blue ocean strategy can become market leaders within their newly created market spaces Being the first to define and dominate these spaces can lead to market leadership and increased market share
Reduced Price Sensitivity: Blue Ocean Strategy Implementation often allows companies to reduce price sensitivity among customers Customers may be more willing to pay a premium when they perceive a unique and valuable offering, leading to improved profitability
Innovation Culture: Implementing a blue ocean strategy fosters a culture of Innovaton within the organisation Employees are encouraged to think creatively, challenge industry norms, and contribute to value innovation, which can lead to a continuous stream of innovative ideas
Reduced Competition: Companies implementing the Blue Ocean Strategy can reduce direct competition by creating uncontested market spaces This reduces the need for constant price wars and marketing expenditures aimed at outdoing competitors
Enhanced Brand Reputation: Successful Blue Ocean Strategy Implementation can lead to a solid and distinctive brand image Customers associate the company with innovation, value, and a commitment to meeting their unique needs Market Expansion: Blue Ocean Strategy often targets non-customers or underserved customer segments This market expansion provides new growth opportunities and diversifies the customer base, reducing dependence ona single market segment
Sustainable Growth: The innovative and differentiated nature of Blue Ocean Strategy can lead to sustainable, long-term growth Companies can maintain their growth trajectory by consistently offering value innovations and adapting to changing market conditions
Risk Mitigation: Blue Ocean Strategy Implementation can reduce business risks associated with market saturation and intense competition By creating new markets, companies are less exposed to the ups and downs of existing marketplaces
Improved Employee Engagement: Blue Ocean Strategy encourages employees to actively participate in strategy development and implementation This engagement can boost employee morale, job satisfaction, and retention Strategic Resilience: Blue Ocean Strategy Implementation helps companies become more adaptable and resilient They are better equipped to respond to changing customer preferences, technological advancements, and market disruptions
In summary, Blue Ocean Strategy Implementation offers numerous advantages, including increased competitiveness, profitability, innovation, and sustainable growth It empowers companies to break away from traditional competition and create unique market spaces, positioning them for long-term success in dynamic business environments.
Continuous Improvement of Blue Ocean Strategy Implementation
Continuous improvement is a vital aspect of successful Blue Ocean Strategy Implementation As markets evolve and organisations face new challenges, refining and enhancing the strategy is essential to maintain effectiveness and relevance Here are vital considerations for the continuous improvement of Blue Ocean Strategy Implementation:
Feedback Loops: Establish feedback mechanisms to gather customer, employee, and stakeholder input Regularly seek feedback on the strategy's performance, customer satisfaction, and areas that need improvement
Performance Metrics: Define and track key performance indicators (KPIs) specific to the Blue Ocean Strategy Regularly assess these metrics to gauge the strategy's success and identify areas where performance can be enhanced Market Monitoring: Continuously monitor market conditions, trends, and competitive developments Stay attuned to shifts in customer preferences, emerging technologies, and regulatory changes that may impact the strategy Competitor Analysis: Analyze competitors’ actions and responses to your Blue Ocean Strategy This helps anticipate competitive moves and adjust your strategy accordingly
Employee Engagement: Foster a culture of continuous improvement within the organisation Encourage employees to share ideas for enhancing the strategy and creating value innovations
Pilot Testing: When considering changes or enhancements to the strategy, consider pilot testing or small-scale implementations This allows for testing ideas in a controlled environment before full-scale implementation
Cross-functional collaboration: Facilitate collaboration among different departments and teams within the organisation Cross-functional input can lead to innovative solutions and a more comprehensive understanding of implementation challenges
Scenario Planning: Develop contingency plans for various scenarios and market shifts Being prepared for different outcomes allows for agile responses and adaptations
Regular Strategy Reviews: Conduct periodic reviews of the Blue Ocean Strategy to assess its continued relevance and alignment with organisational goals Make adjustments as necessary to stay on course
Customer Insights: Continuously gather and analyse customer insights Understand changing customer needs and preferences and use this information to refine the value proposition
Risk Management: Identify potential risks and uncertainties associated with the strategy Develop risk mitigation strategies and update them to minimise potential negative impacts
- Technology Adoption: Embrace technology and digital tools that can enhance the implementation of the Blue Ocean Strategy Automation, data analytics, and digital marketing can improve efficiency and effectiveness
- Learning and Development: Invest in employee training and development programs to build the skills and competencies needed for successful strategy execution Ensure that employees are equipped to contribute to continuous improvement efforts
- Customer-Centric Focus: Maintain a customer-centric approach Regularly engage with customers to understand their evolving needs and expectations and use this insight to drive improvements
- Benchmarking: Benchmark the organisation’s performance against industry leaders and best practices Identify areas where the company can excel and set new performance standards
Continuous improvement is not a one-time effort but an ongoing process that ensures the Blue Ocean Strategy remains dynamic, adaptive, and effective By fostering a culture of innovation, actively seeking feedback, and staying attuned to market changes, organisations can maximise the benefits of their Blue Ocean Strategy and sustain their competitive advantage
ANALYSIS OF THE CURRENT SITUATION OF BLUE
Company InformafIOII 1 2 22012201120 1121 115312111511 1111 151111111811 1 cay 16
Registered name Công ty Cô phân Tư vẫn MCI Việt Nam
International name MCI VIET NAM CONSULTANT JOINT STOCK
Address No LA, 43/99/32 Trung Kinh, Trung Hoa Ward,
Cau Giay District, Ha Noi City, Vietnam
Address (Head office) | 5 floor, Star City Building, No 23 Le Van Luong,
Nhan Chinh Ward, Thanh Xuan District, Ha Noi
Representative and Le Van Tiep — Chief Executive Officer
Home page URL https://www.mcivietnam.com/
Type of Business Non-state joint stock company
MCI Viet Nam Consultant Joint Stock Company (MCI) was established in March
2020 as a training institute promoting digital Vietnam With that desire, MCI has quickly built for itself a team of many IT talents and teachers with extensive teaching experience in fields such as Data Analysis, Data Engineering, Data Science, Application Programming, etc With the slogan "Nurturing a digital Vietnam", MCI has created its highlights and signs in the market of today's information technology businesses
History of establishment and developiment - - 2255522 55s25s52 17
Although MCI's age is concise, having just been established in 2020, MCI's history brings a lot of spiritual values and trade-offs to bring about the company's future success The CEO of MCI, Mr Le Van Tiep, was once a student majoring in economics when he graduated from the Foreign Trade University with honours in
2012 Subsequently, he worked in the Payment and Settlement department at Techcombank for two years, from 2012 to 2014 This period in Vietnam coincided with the rapid development of the information technology industry, which became a phenomenon in both the academic and professional spheres Recognising this trend, starting in 2012, Techcombank strongly emphasised investing in and developing its technology Witnessing these developments, Mr Tiep charted his path for growth, aligning himself with emerging trends in the industry In the following period, from
2014 to 2020, he continued his education and, together with the co-founder of MCI,
Mr Nguyen Ngoc Son, organised supplementary classes for working professionals seeking to develop their technology skills, such as Data Analysis, Data Science, or Data Engineering Over time, recognising the growth in demand and the increasing need for professionalism in this field, Mr Tiep and Mr Son jointly established MCI and have been developing it to the present day
In step with MCI's development, Mr Tiep succeeded in the education sector He demonstrated remarkable agility in identifying trends and expanding into new areas, leading the company to achieve numerous milestones At the peak of its success, Mr Tiep developed MCI into three major segments:
1 ProX: Specializing in outsourcing services
2 LearnX: Focused on enterprise-scale training programs
3 CareerX: Guiding MCI's learners and individuals seeking suitable career opportunities
With the development of all three segments, MCI gained the trust of businesses and investors in Vietnam, securing numerous partnership agreements, training contracts, and business development contracts
However, the establishment and development of MCI to its current success were more complex paths To achieve the accomplishments we see today, Mr Tiep had to navigate through two failed startup attempts, incurring significant costs and setbacks Even the co-founder, Mr Son, had to share those losses with empathy and tremendous effort Ultimately, MCI was founded on the lessons learned from bitter past failures: from a late-started English language centre that struggled to meet consumer demands and compete with formidable rivals to the challenges of aligning one's expertise with personal aspirations.
Noticeable milestones of the company c 2c S212 x22 18
Despite being a relatively young company, MCI has achieved several significant milestones in its developmental journey:
- August 2020: MCI reached its first revenue milestone of 500 million VND
- December 2020: MCI achieved a total annual revenue of 4 billion VND in its first year
- April 2021: MCT hit its first billion VND in revenue
- May 2021: MCI was recognised as a promising young startup in its field
- August 2021: MCI secured a capital funding round with 200,000 USD
- December 2021: MCI experienced 50% growth compared to its first year
- March 2022: MCI established its second branch in Ho Chi Minh City, with ambitions to expand its market
- August 2022: The birth of three segments: ProX, LearnX, and CareerX
- November 2022: Successful collaboration with Peoplelogy in a project providing courses with a budget of up to 500,000 USD
- December 2022: ProX achieved a revenue of 300 million VND
- December 2022: MCI successfully partnered with AIBT for study programs in Australia for Vietnamese students
- March 2022: MCI secured its second funding round with foreign direct investment (FDI) capital, also at 500,000 USD
These milestones reflect MCI's rapid growth and ability to adapt to the changing landscape of the education and technology sectors
MCI, officially known as MCI Vietnam Consulting Jomt Stock Company, primarily provides technology solutions to businesses of all sizes Its services can be categorised as follows:
- Training Services: MCI offers a wide range of training courses, from basic to advanced, in specialised fields such as Computer Science, Data Science, Data Analysis, and even niche areas like Data Engineering and Cybersecurity
- Consulting Services: MCI provides digital solutions to businesses across various sectors, including manufacturing, trading, and professional services
As the company expanded into three distinct directions: ProX, LearnX, and CareerX, it ventured into additional business areas, but its main revenue focus remained on the two core sectors:
- ProX: This segment offers core technology systems for new businesses and startups, providing upgrade solutions and enhancements to existing technologies
- LearnX: LearnX provides online courses, making online learning more accessible and supporting students in study-abroad programs or exchange programs
- CareerX: CareerX connects MCI learners with businesses needing talent and provides direct training courses to companies
These various segments demonstrate MCI's versatility and adaptability in meeting the evolving needs of its clients and the market
Research and Devel opment Department
Manager Staff larketing Communication Office
Sale Office Branding Office Account Staff
IT Staff Data Staff Sale Leader Deve opment Sta ess Ads Staff Content Staff Branding Staff Finance Staff
(Source: Research and Development Department of MCI)
Researh and Devd opment Sta
Overall, this organisation structure has a hierarchical design, with clear reporting lines from the CEO to various department heads and their respective teams It reflects a functional organisational structure, where departments are organised by their primary functions, such as technology, business development, marketing, and finance
- The CEO 1s the top executive responsible for setting the company's overall vision, strategy, and direction
- The CEO often engages in high-level decision-making, fosters a culture of innovation, and represents the company to stakeholders
DCEO (Deputy Chief Executive Officer):
- The DCEO assists the CEO and may have specific roles and responsibilities, including overseeing key departments or initiatives
- The Technology Department is pivotal in managing the company's IT infrastructure and data resources
It ensures the efficient functioning of technology systems, including hardware, software, and network operations
The Business Development Department focuses on driving growth and expansion
Sales Office: Responsible for sales strategies, client acquisition, and relationship management
Business Development Office: Focused on identifying business expansion and development opportunities
The Marketing Department handles marketing and promotional activities to reach potential customers and promote the company's products or services
It comprises three main offices:
Performance Office: Likely involved in data-driven marketing efforts, including advertising campaigns and digital marketing
Marketing Communication Office: Concentrates on content creation, including written and visual content for various marketing channels
Branding Office: Manages the company's brand identity and reputation Human Resource Department:
The Human Resource Department manages the organisation’s personnel, including recruitment, training, compensation, and employee relations Its role is to ensure a motivated and well-functioning workforce
The Finance Department is responsible for financial management, accounting, budgeting, and planning
It is crucial for maintaining financial stability and making informed decisions regarding investments and resource allocation
- The Research and Development Department is focused on innovation and product development
- Itdrives the creation of new products, services, and technological advancements
The organisational structure enables precise management and specialisation in different functions, from technology management to business development, marketing, and finance Collaboration and communication among departments and offices are essential to ensure the company works cohesively to achieve its strategic goals As the company grows, it's necessary to consider how this structure can evolve to support expansion and innovation while maintaining a solid customer-centric focus
Although it has only been established for over three years, MCI's growth rate is admirable; at the beginning of 2023, the company recorded the number of 45 employees operating simultaneously Currently, MCI is using a structural model called the Hierarchical model This structure can work well for medium to large-sized organisations, as it provides clear roles and responsibilities However, the effectiveness of this structure depends on factors such as the organisation’s goals, industry, and the need for collaboration across departments To overcome the limitations of the structural model, the board of directors at MCI has established general objectives and clearly defined the paths that employees must follow to achieve these objectives These goals are not easily attainable by individual efforts but require collaboration among departments and employees
1.6 Internal and External Analysis a SWOT analysis
Table 2.1: SWOT analysis of MCI VIETNAM CONSULTANT JOINT
Strengths Weaknesses e Specialized focus e Limited Brand Recognition in e Most learning courses B2B and B2G e Rich source of learning resource e Restrictive and redundant e Collaborations policies e Experienced instructors e Uneffective HR usage e Diverse course offering e Lack of practicality in learning e Many events via universities materials e Lack of products included with the courses e Learning materials focus too much on academic
Opportunities Threats e Growth of the IT Sector e Competitive Market e Technology Skills Gap e Economic Downturns: After e International Expansion Covid-19 Pandemic and Finance e Outsourcing Demand Crisis e Regulatory Changes e Technological Advancements
(Source: Research and Development Department of MCI)
Before diving into the detailed analysis, a SWOT analysis would give an overview of the company’s insight and how the market affects the company Strengths:
As a company specialising in services related to technology and information technology courses, MC1's first notable strength is its high level of expertise and focus on the training field Currently, on the market, MCI is the training centre with the most diverse courses and consistently leads the way Most recently, MCI has added Cloud Computing and Cyber Security courses This expertise doesn't stop at training alone; MCI has extended this core strength to related sectors such as study-abroad programs, outsourcing, and job placement opportunities Along with the diversity of the training courses, MCI also has rich resources of learning materials when the MCI’s teachers can enrich their lessons themselves and get a bounty each time they do so
Furthermore, MCI has established partnerships and collaborations with numerous local and international partners and educational institutions in countries like Singapore, Malaysia, the United States, and more These collaborations give MCI a strong support network for building its brand in the market
MCI’s instructors and mentors are also highly qualified and experienced IT professionals By working with MCI, they can convey practical lessons and knowledge beyond what can be found in books or articles
Finally, MCI is currently one of the prestigious sponsors for many clubs at various universities in Hanoi The company frequently organises large-scale workshops and events to help students explore and gain insights into IT, Data Science, and more Thanks to its proactive approach to hosting such events, MCI maintains a strong presence on the list of invitees for competitions, talks, and interview opportunities Weaknesses:
MCI is undoubtedly a fast-growing company, but it faces several strategic areas for improvement First, its brand recognition still needs to improve, especially in the B2C and B2G markets The company primarily focuses on providing introductory training courses and doesn't offer specialised or in-depth programs in IT or Data Science, making it less competitive in the B2G sector
The rapid growth of MCI, with employee numbers increasing from 2 to 35 in just three years, has led to challenges in managing policies and regulations Inefficient personnel utilisation and an imbalanced employee structure, particularly with many sales representatives, have caused declining effectiveness over time
Regarding the course materials, internal reports suggest that MCI's learning materials need more practical relevance to the fast-evolving technology field in Vietnam As the country rapidly adopts digital transformation and technological advancements, flexible and up-to-date learning materials are crucial However, MCI's organisational structure doesn't include specialised roles that can adapt content as needed
Furthermore, MCI's uniqueness often comes from its teachers However, the company needs to include accompanying products such as mobile apps, supplementary materials,
24 or learning tools, hindering the potential for upselling A more proactive approach could increase customer satisfaction and generate additional revenue
Founded and developed to serve the growing demand for education and skill development in the IT field, MCI keenly understands its opportunities when looking at the remarkable growth trends in the IT sector and related industries in Vietnam Beyond just IT development, MCI offers training in fields like Data Science, Data Analysis, and Python - each tailored to the specific needs of companies and corporations The remarkable growth of the IT industry has opened up significant opportunities for MCI to transform into a specialised IT training company
Moreover, the skills gap in the Vietnamese labour force creates a favourable context for MCI The company has expanded beyond the domestic market It has entered several international partnerships, expanding into less explored areas like Cloud Computing and Cyber Security These are substantial opportunities for MCI to enhance its value and brand recognition In the long run, the development of IT has also influenced the business model that people in Vietnam are adopting, with increasing interest in outsourcing, software development, websites, and efficient tools This growing interest has stimulated the outsourcing demand in Vietnam, turning it into a significant opportunity today
Finally, let's talk about the current threats to MCI The first threat to mention is the high level of market competition The opportunities mentioned above are not exclusive to MCI but are shared across the entire IT training industry As a result, the competitive landscape in the market is significant, and MCI could be significantly affected without caution