Luận văn tốt nghiệp MBA Developing business strategy for viettel mobile in Viet Nam for the years 20112015

Luận văn tốt nghiệp MBA Developing business strategy for viettel mobile in Viet Nam for the years 20112015Luận văn tốt nghiệp MBA Developing business strategy for viettel mobile in Viet Nam for the years 20112015Luận văn tốt nghiệp MBA Developing business strategy for viettel mobile in Viet Nam for the years 20112015Luận văn tốt nghiệp MBA Developing business strategy for viettel mobile in Viet Nam for the years 20112015Luận văn tốt nghiệp MBA Developing business strategy for viettel mobile in Viet Nam for the years 20112015ObjectiveTo conduct the complete topdown and competitive analyses, develop alternative strategies and select a prioritized set of strategies that will ensure a competitive advantage for Viettel mobile in the period of 20112015.Subject Scope of the study Subject: Viettel group other competitive companies in the mobile telecommunication industry. Scope: Basing on specific statistics on the macro environment, industry and organizational environment of the Viettel from 2005 to 2010 and orientation until 2015. Study ApproachesQualitative quantitative; Statistical analytical analyses Chapter 1: Theoretical foundation of strategic management Concept role Stages of strategic management Models and matrices usedChapter 2: Analysis of business activities of Viettel Introduction to Viettel Group Business situation 20052010 Business environment analyzeChapter 3: Strategy selection Implementation solutions Vision mission Strategic identification selection Implementation solutions processes

THE CAPSTONE PROJECT

DEVELOPING BUSINESS STRATEGY FOR VIETTEL MOBILE IN VIETNAM FOR

THE YEARS 2011-2015

GaMBA.X0510 - Group 9

 Subject & Scope of the study

- Subject: Viettel group & other competitive companies in the mobile

telecommunication industry

- Scope: Basing on specific statistics on the macro environment, industry and organizational environment of the Viettel from 2005 to 2010 and orientation until 2015

 Study Approaches

Qualitative & quantitative; Statistical & analytical analyses

Structure of the study

 Chapter 1: Theoretical foundation of strategic management

- Concept & role

- Stages of strategic management

- Models and matrices used

 Chapter 2: Analysis of business activities of Viettel

- Introduction to Viettel Group

- Business situation 2005-2010

- Business environment analyze

 Chapter 3: Strategy selection & Implementation solutions

- Vision & mission

- Strategic identification & selection

- Implementation solutions & processes

Chapter 1: Theoretical foundation

1 1 Concept & role of strategic management

1.1.1 Concept

 There exist many definitions of strategic management

 It is now understood to be both a scientific definition & is an art and

science of planning, organization implementation and evaluation strategies

1.1.2 Roles

 Help to identify opportunities and threats; Help managers and employees

to understand what needs to be done to achieve success

 Enable firms to match the proposed plan with the external environment; It

is in the direction of future actions

 Consider as the state of art in business administration

1.1.3 Types of strategy: Corporate & business

Chapter 1: Theoretical foundation (2)

1 2 Stages of strategic management

External Environment

Strategic Intent Strategic Mission

Internal Environment

Strategic Leadership

Input

Feedback

Chapter 1: Theoretical foundation (3)

1 3 Models & matrices used

STAGE 1: THE INPUT STAGE

Internal Factor Evaluation (IFE) Matrix

STAGE 2: THE MATCHING STAGE

Strengths - Weaknesses - Opportunities - Threats

(SWOT) Matrix

STAGE 3: THE DECISION STAGE

Quantitative Strategic Planning Matrix (QSPM)

Chapter 2: Business situation of Viettel

2 1 Introduction of Viettel

History:

 The first name was Information Equipment Electronics Corporation in

1989, then Military Telecommunication Electronics Company after 5 years & Viettel Telecom Group since Dec 2009

 Headquarter: No1 Giang Van Minh, Badinh, Hanoi

 Membership units: 14 and 64 branches

 Own capital: VND 50,000 Billion

Business areas:

Supply of telecommunications services; Telecommunications, Transmission; Post Office; Terminal distribution; Finance investment; Media; Real Estate Investment; Export & Import and Foreign Investment

Chapter 2: Business situation (cont.)

2 2 Business performance of Viettel (2005-2010)

 Revenues increased by 200% year-over-year since 2005-2009, ROE:

48.3%, Global expansion (Indochina, Africa, Latin…)

 Largest mobile network: 42,200 Stations, 120,000km fiber optic net,

17/17 provinces Laos cover 3G, etc

Revenue & profit of Viettel

(2005-2010)

Chapter 2: Business situation (cont.)

2 3 Business environment analysis

2.3.1 External environment

 Macro environment (PEST)

- Economics (E): E GDP increment, Inflation, VND rate, etc

GDP (USD) 642 730 843 1052 1064 1168 Exports (USD billion) 32 39 48 62 57 71 Import (USD billion) 36 44 62 80 69 84 Remittances (USD billion) 3.8 4.7 5.5 7.2 6.2 8.1

Total retail sales and consumer

services turnover (VND1000 billion) 480 596 746 1009 1197 1561Consumer Price Index CPI (%

change over the previous year) 8.4 6.6 12.6 19.9 6.5 11.7

Chapter 2: Business situation (cont.)

2 3 Business environment analysis

2.3.1 External environment

 Macro environment (PEST)

- Politics & Legal (P): P Stable environment, Administration procedures &

Business law were amended and considerably improved

- Science & Technology (T): T Acquiring the advanced technologies (GSM,

3G and 4G testing in progress), Terminal production technology in Vietnam is limited

- Social & Culture (S): S Rapidly change in the trend the new lifestyle,

Demand of using telecommunication increment, Awareness of Vietnamese improved

- Demography: Population of 87 million, Over 50% under 27 years

Chapter 2: Business situation (cont.)

2 3 Business environment analysis

2.3.1 External environment

 Industry environment (Michael Porter - 5 Forces)

- Rivalry: Violent competition, Viettel (36.4%), Vinaphone (28%), Mobifone

(28.8%); Many promotion programs from the rivalry

- Threat of New Entrants: Indochina Telecom with MVNO, Winmax 4G and

other telecommunication services

- Power of Buyers: Many providers, Loyal & Prepaid customers

- Power of Suppliers: Financial & Terminal providers

- Substitute Products: Voice & Video conferencing services

 Evaluation of external environment

Chapter 2: Business situation (cont.)

Factors of external environment Weight Impact Mark

Challenges from new entrants, international

Chapter 2: Business situation (cont.)

The CMP matrix compares with several companies

Successful factors Weight

Viettel Vinaphone Mobifone

Rank Mark Rank Mark Rank Mark

Chapter 2: Business situation (cont.)

2.3.2 Internal environment

 Resources: Tangible (Finance, Organization, Facility, Technology) and

Intangible (Manpower, Ability of innovation & creativity, Reputation)

1 Revenue (VND billion) 3,200 7,400 16,000 33,000 60,000 91,000

2 Profit (VND billion) 390 1,400 4,000 8,400 10,000 15,500

3 State budget payment (VND billion) 300 800 2,000 4,500 5,200 7,600

5 Value of investment (VND billion) 1,300 2,000 4,800 10,000 16,550 11,450

6 Average labor in the list (person) 4,175 6,200 8,400 12,000 18,000 24,000

7 Average income (VND million) 2.5 3.8 6.5 9.87 11.5 13

8 services (million Subscribers of

subscribers)

Chapter 2: Business situation (cont.)

Number of mobilephone subscribers (Left table) and marker-share of

mobilephone providers in 12 Dec of Vietnam (Right figure)

Chapter 2: Business situation (cont.)

Chapter 2: Business situation (cont.)

Internal factor evaluation matrix of Viettel (IFE)

Internal environment factors Weight Impac t Mark

Chapter 3: Strategy selection & solutions

3 1 Vision & Mission

3.1.1 Vision

 Leading telecommunication company in Vietnam & in the Indochina area

 Providing the best products and services for customers

3.1.2 Mission

 Closed collaboration between economy & defense

 Investment in infrastructure

 Customer-oriented business

 Rapid development, continuous reforms to stabilize

 Talking human as core factor

3.1.3 Core values

 Practice is the criterion for testing truth;

 Maturing through challenges & failures;

 Quick adaptation is competitive strength;

 Innovation is life; Systematic thinking; East West combination; Tradition &

method of soldiers; And Viettel is the public house.

T1-Violent competition environment

T2-Slowdown growth market

T3-Pressure from customers

T4-New entrants, Inter integration;

T5-Substitutes products

Chapter 3: Selection & solusions (cont.)

3 2 Strategic identification & selection

SO strategies:

market-share from rivals;

attract & keep talent people;

changing to postpaid;

ST strategies:

Improvement of marketing;

services on mobilephone, PC & Ipad…

customers;

competitive, less substitute products…

based on the advantages

WT strategies:

and administration reform;

service quality to limit the loss of customer;

development of new ones from the existing;

Chapter 3: Selection & solutions (cont.)

3 2 Strategic identification & selection

Chapter 3: Selection & solutions (cont.)

3 2 Strategic identification & selection

The QSPM Matrix for Viettel Group

Strategies Market

Chapter 3: Selection & solutions (cont.)

Challenges from new entrants,

Chapter 3: Selection & solutions (cont.)

3 3 Implementation solutions

 Target market and basic policies for the market

 Continuing maintenance of expansion investment and improvement of

coverage quality, customer service capabilities

 Continuing development of price policies for product package,

competition and flexibility for each customer segment

 Management of human resources for changing the structure and

improving the quality of service from the human factor

 Financial management solutions

 Marketing solutions

Chapter 3: Selection & solutions (cont.)

3 4 Implementation process

 Construction of annual goals

 Construction of policy system and support plan

 Development of action plans, budgets and implementation processes

 Allocation of human resources, finance, facilities

 Selection of organization structure consistent with the strategy

 Strategic commitment and implementation

 Strategic inspection control, evaluation and adjustment in the

implementation process

 Development of business strategy for a service business production unit

is extremely important, very complicated and not easy to perform

 Using knowledge from MBA courses & our practices to formulate

strategic planning for Viettel for the years 2011-2015, we chosen the best business strategy for the Group in Vietnam

 It brings the Viettel leaders a overview of works, contributes to

improvement of competitiveness and determines the optimal solutions for stabilization and development of the Group

 However, because of limits on theoretical knowledge as well practice of

the group’s members ourselves, this study cannot be avoided shortcomings/mistakes

 We are very happy & looking forward to getting the comments, feedbacks

from the teachers & classmates

Our deeply thanks & gratitudes

To:

 The lecturer Dr Vu Thanh Hung and Dr Tony Sanichara who taught

us dedicatedly the course "Strategic Management“, guided and

facilitated our group to complete this capstone

 The teachers in the ETC Center, National Economics University,

VNU, Griggs - Andrews University who taught the knowledge through the courses designed by the MBA program

 Advisors, managers and our friends of the class X0510…