Một số giải pháp chiến lược kinh doanh cho dịch vụ giá trị gia tăng tại VNPT trong tiến trình hội nhập

Một số giải pháp chiến lược kinh doanh cho Dịch vụ Giá trị gia tăng tại VNPT trong tiến trình hội nhậpSOME STRATEGIC BUSINESS SOLUTION FOR ADDED SERVICES ON MOBILE NETWORK AT VIETNAM NATIONAL POST AND TELECOM (VNPT) IN THE INTEGRATION PROCESS

LUẬN VĂN Một số giải pháp chiến lược kinh doanh cho Dịch vụ Giá trị gia tăng tại

VNPT trong tiến trình hội nhập

THESIS

SOME STRATEGIC BUSINESS SOLUTION FOR ADDED SERVICES

ON MOBILE NETWORK AT VIETNAM NATIONAL POST AND TELECOM (VNPT) IN THE INTEGRATION PROCESS

TABLE OF CONTENTS

A INTRODUCTION (Capstone Project Report)

1 Rational ……….5

2 Research Objectives ……… 6

3 Research object and scope……….7

4 Research methodology……… ……

7 5 Expected research outcomes……… 7

6 Research Structure (Chapter 1, 2, 3) ……… 7

7 List of tables and figures……… ……….8

8.Annex….……… ……… 8

B MAIN CONTENT CHAPTER I LITERATURE REVIEW ON BUSINESS STRATEGIC PLANNING IN ENTERPRISES 1.1 OVERVIEW ON STRATEGIC MANAGEMENT ………9

1.1.1 Business Strategy… ………

9 1.1.1.1Definitions………9

1.1.1.2 Types of business strategies……… ……….10

1.1.1.3 Importance of business strategy………

……… 11

1.1.1.4 Requirements for a business strategy ………

12 1.1.1.5 Basis for business strategic planning ………

….12 1.1.2 Business strategic management……… ……… 13

1.1.2.1 Strategic management and roles of strategic management……… 13

1.1.2.2 Strategic management process……….………….15

1.2 AFFECTS OF ENVIRONMENTAL FACTORS TO BUSINESS STRATEGIC MANAGEMENT OF ENTERPRISE ……… 20

1.2.1 External environment………

20 1.2.1.1 External macro-environment ……… ……….20

1.2.1.2 Micro environment……… ……….23

1.2.2 Internal environment……… ………… 29

1.2.2.1 Human Resources based elements……… ………… 27

1.2.2.2 Production and technique operation elements……… ………28

1.2.2.3 Financial elements ……… …………28

1.2.2.4 Marketing and sales elements……… ….28

1.2.3 International environment……… 29

1.2.3.1 For domestic enterprises……… ……29

1.2.3.2 For international enterprises……… ……… 29

1.2.4 Basis business strategies in reality ……… …….30

CHAPTER 2 ANALYSIS AND EVALUATION OF THE BUSINESS ENVIRONMENT FOR VAS OF VNPT 2.1 VNPT OVERVIEW……… ……… 38

2.2 ISSUES CONCERNING M.VAS (MOBILE VALUE ADD SERVICE)… 41

2.3 BUSINESS ENVIRONMENT AND FACTORS INFLUENCING M.VAS OF VNPT 42

2.3.1 Social-economic factors 42

2.3.2 Economic - social factors 42

2.3.3 Legal factors .43

2.3.4 Population factors .46

2.3.5 Cultural factors, consumption habits 49

2.3.6 Technological factors 51

2.4 COMPETITIVE ENVIRONMENT 53

2.4.1 Current competition 53

2.4.1.1.Enterprise providing mobile network infrastructure 53

2.4.1.2 M.VAS providers 57

2.4.2 Potential competition 66

2.4.2.1 Competitive advantages by telecom businesses 66

2.4.2.1.1 Domestic telecom businesses 66

2.4.2.1.2 Foreign enterprises: 68

2.4.2.2 Competitive advantages of other businesses 69

2.4.3 Pressure from alternative services 69

2.4.4 Pressure from providers 70

2.4.5 Pressure from customer 71

2.5 Analyzing the ability of providing M.VAS service of VNPT 73

2.5.1 The telecommunication network of VNPT 73

2.5.2 Business and Human Resource Organization in M VAS 74

2.5.2.1 M.VAS Business organization 74

2.5.2.2 Human resource 74

2.5.3 Business picture of M.VAS services of VNPT 75

2.5.3.1 Development of the number of Mobile subscriber 75

2.5.3.2 Service charge policy 75

2.5.3.3 Service development activities 76

2.5.3.4 Service Quality 76

2.5.3.5 Distribution Activities 76

2.5.3.6 Market study activities 77

2.5.3.7 Customer service 77

2.5.3.8 Advertising, promoting activities 77

2.5.3.9 Result of some major M.VAS services of VNPT 78

2.5.4 General analysis on business environment of M.VAS service of VNPT 78

2.5.4.1 Several comments on M.VAS implementation situation in VNPT 79

2.5.4.2 Several limitations remained 79

2.5.4.3 General comments 80

CHAPTER 3 SOME STRATEGIC SOLUTIONS IN TRADING M.VAS SERVICES OF VNPT IN THE INTEGRATION PROCES 3.1 VISION AND MISSION 82

3.1.1 Vision 82

3.1.2 Mission 82

3.2 VNPT’s STRATEGIC ORIENTATION IN M.VAS SERVICE BUSINESS TO 2015………

… 83

3.2.1 Development of subscribers and productivity orientation 84

3.2.2 Service development orientation 84

3.2.3 Market development orientation 86

3.2.4 Service distribution orientation 86

3.2.5 Rate orientation 87

3.3 SOLUTIONS FOR IMPLEMENTATION OF M.VAS BUSINESS STRATEGY OF VNPT IN THE CONTEXT OF INTEGRATION 87

3.3.1 Solution for development investment and exploitation of the networ.………87

3.3.2 Rate solution 88

3.3.3 Solution for service products 89

3.3.4 Service distribution solutions 91

3.3.5 Supporting promotion solution 91

3.3.6 Solution for visual factors and provision process 95

3.3.7 Solution for development research co-ordination 96

3.3.8 Management organization solutions 96

3.3.9 Human resource solution 97

C RECOMMENDATIONS to THE MINISTRY OF IC

D CONCLUSIONS 98

E ACKNOWWLEDGEMENTS……… …… 100

F APPENDICES ……….… ….… 101

G REFERENCES ……… ……… …118

H ABBREVIATION ……… ……….120

CAPSTONE PROJECT REPORT (FINAL MBA) - Class: GaMBA01.M01 - Group number: 6 (six) - Members of Group 6 : Mr.To Anh Tuong (team leader), Mr Ngo Hoang Anh, Mr Tran Hong Quang and Mr Nguyen Thanh Tung

-Title of the project:

Some strategic business solution for added services on mobile network at

Vietnam Posts and Telecommunications (VNPT)

in the integration process

1 Rational

- Originating from indispensable demand in market opening and international integration, in order to comply with regulations WTO, TBT… government will extend conditions, allowing domestic and foreign players in telecom, information technology industry to invest and expand activities in Vietnam market In previous years, although Vietnam’s information and communication technology achieved high growth speed in comparison with many countries in the world, appearances of new domestic and foreign exploiters, however, have created strong competitive pressure which forces Vietnam Posts and Telecommunication Group to change

strategies on business, finance, human resources, system organization, sellingchannel, trade name to go align with competitive conditions.

- Thanks to achievements in the DOI MOI period and market economy transition,the living standard of the Vietnamese people is now improved; foreign investors wereand now are holding investment projects in Vietnam The group of customers whosedemand for high quality product and service and desire of highly differentiated productsand services for their personal stake, are now increasing, which requires VNPT torestructure the distribution channels, develop new services with the international moderntechnology These tasks are also top priorities of VNPT in their effort to satisfy customer.Besides, thanks to the technological development, new telecom services providers takeadvantage of the new technology AII-IP, which enable a new mode of distributionchannel, services and business in a central orientation with flexible and cost savingmanagement style This issue have created a big competitive pressure, encouraging bigtraditional telecom service providers to switch to launching VAS on the traditional andbasic product such as: Deustch Teleko (Germany), France Telecom (France), BristishTelecom (UK), Telstra (Australia), China Telecom (China), Telecom Malaysia(Malaysia), Vodaphone… The service providing model is focusing on the telecomservices, including: business management, service providing management, networkinfrastructure management, VAS development and management

- With the diversification business orientation, VNPT’s business function is moreand more independent and flexible In the coming time, VNPT have much to be done for

a stable organization chart, business and production development Above all, it’sextremely important to have a focus on telecom services business, that is considered thecore capacity and the spearhead field of the group That’s why business strategy for VAS

on the mobile network is an important unit strategies in the grand strategy of thecorporation

- In current context, the corporation can still achieve the business objectives andfulfill the social responsibility at the same time, but the business objectives areconsidered vital To fulfill business objectives, VNPT need to consider a premium choice

of service types by a suitable priority range, which should be developed together withimplementation methods in the strategy period in order to be more efficient in business

as well as more competitive in value add service on mobile network business That’s the

need for a research on Some strategic business solution for added services on mobile

network at Vietnam Posts and Telecommunications (VNPT) in the integration process.

- By competition analysis, working out the strengths and weaknesses,opportunities, challenges for VNBT, this research will offer some strategic solutions toenhance the VNPT’s competitive position on the market

3 Research object and scope:

- Concrete object: VAS on mobile network provided by VNPT

- An analysis of external environment, internal environment concerning theproviding of telecom services in general and VAS on mobile network in particular ofVNPT.

- Suggestion on some strategic solution to enhance the competitive level, increasebusiness efficiency for VNPT

6 Research Structure

- Besides the opening, conclusion, table of content, index, the content of thisthesis is divided into 3 main parts as followed:

Chapter 1: Literature review on business formulation of enterprise

Chapter 2: Analysis and evaluation on the business environment for VAS on

mobile network of VNPT

Chapter 3: Some strategic business solution for added services on mobile

network at Vietnam National Post and Telecom (VNPT) in the integration process

7 List of tables and figures.

8 Annex.

-CHAPTER I LITERATURE REVIEW

ON BUSINESS STRATEGIC PLANNING IN ENTERPRISES

1.1 OVERVIEW ON STRATEGIC MANAGEMENT

1.1.1 Business Strategy

1.1.1.1 Definitions

Due to different approaches to strategy, its definitions are various

- Liam Fahey van Rober M.Randall believed that strategy can be understood asthe premium approach taken concerning processes, attitudes, human resources, tangibleasset, technology and information power, competitiveness, capacity, and resources.(Portable MBA in Strategy)

- In a 1996 Harvard Business Review article and in an earlier book , Porter argues

that competitive strategy is "about being different." He adds, "It means deliberatelychoosing a different set of activities to deliver a unique mix of value." In short, Porterargues that strategy is about competitive position, about differentiating yourself in theeyes of the customer, about adding value through a mix of activities different from thoseused by competitors In his earlier book, Porter defines competitive strategy as "acombination of the ends (goals) for which the firm is striving and the means (policies) bywhich it is seeking to get there." Thus, Porter seems to embrace strategy as both plan and

position While Henry Mintzberg, in his 1994 book, The Rise and Fall of Strategic Planning, points out that people use "strategy" in several different ways, the most

common being these four:

1 Strategy is a plan, a "how," a means of getting from here to there

2 Strategy is a pattern in actions over time; for example, a company that regularlymarkets very expensive products is using a "high end" strategy

3 Strategy is position; that is, it reflects decisions to offer particular products or services

in particular markets

4 Strategy is perspective, that is, vision and direction

Mintzberg argues that strategy emerges over time as intentions collide with andaccommodate a changing reality Thus, one might start with a perspective and conclude

that it calls for a certain position, which is to be achieved by way of a carefully craftedplan, with the eventual outcome and strategy reflected in a pattern evident in decisionsand actions over time This pattern in decisions and actions defines what Mintzbergcalled "realized" or emergent strategy.

Mintzberg’s typology has support in the earlier writings of others concerned withstrategy in the business world, most notably, Kenneth Andrews, a Harvard Business

School professor and for many years editor of the Harvard Business Review.

Strategy can be defined in many ways, including the following useful examples: -

According to the text book published by the National Economics University (2000), it’ssummarized that: strategic management focus on the premium combination amongmanagement fields, marketing, finance/accounting, production/operation, R&D ofinformation systems to achieve the business success

- Historically, the fundamental meaning of strategic management is enablingorganization to formulate better strategies by more professional and reasonableapplication and better approached concerning strategic selection In other words, Strategy

is the pattern of activities to be followed by an organization in pursuit of its long-termpurpose’, including its ‘placing’ within the movement In simple terms: ‘Where we arenow, where we want to go and how we intend to get there’.’ Strategy is an agreed-uponcourse of action and direction that helps manage the relationship between an organizationand its environment The goal is to achieve alignment or synergy so that an optimal flow

of resources to the institution is achieved Strategy can also be defined as the process ofidentifying, protecting, leveraging and renewing the strategic capabilities of anorganization through its definition of purpose its organization and processes, and itschoice and support of people So, what most concerned strategy can be:

- An understanding/assessment of the organization’s resources and capabilities

- An understanding/assessment of the external environment

- From these, a decision on the best way to use and apply the former to achieve anagreed aim in the latter

1.1.1.2 Types of business strategies

*By scope of business strategy:

- Grand strategy (Overall strategy): Grand strategy usually mentions the most important

and common issues with long term direction Grand strategy is vital for the businesssurvival

-Generic strategy: Generally, in enterprises, these strategies include production and

business strategies, financial strategy, human resource development strategy, marketing

strategy, information system development strategy, R&D strategy

Grand strategy and generic strategies combine to make a completed strategy

* By directional approaches to the business strategy

- Key elements-focused business strategy: Leading concept of this business strategy is

not stretching on resources, but focusing on key business activities which are vital to theproduction and business operation of enterprises

- Competitive advantage based business strategy: Leading concept of this business

strategy is based on the analysis, comparison of product and service of one enterprisewith those of competitors, by which finding out the strengths, weakness serving as thebasis for business strategic planning

Comparative advantage can be expressed via many factors such as: quality, price,services, production technology, distribution network

- Attack business strategy: In this type of strategy, strategic planning means looking at

issues which are considered popular, unchangeable in an aim to reconsider things that arewell concluded By continuously posing the questions, new things can be discovered and

act like the premise for the business strategy of enterprise

- Potential capacity exploring strategy: Formulation of this strategy is not focusing on

the key elements, but trying to explore possible capacity of elements surrounding keyelements

1.1.1.3 Importance of business strategy

- Strategy allows the organization to make its future in an innovative and creative

In this observation organization has creativity in action and the future of the organization

is under the control of it’s creative activities The most important benefit that

organization obtains from the strategy is that it can identify the strategic issues and findthe directions which help the organizations to achieve their goals The advantages ofstrategy could be listed as, “ Increase of communication between the employees, increase

of commitment amongst the managers and employees, creation of staff’s power andstock purchasing opportunity, allowance for opportunity recognition and their applicableuse, offer of coordination and activity control, and minimizing the impact of undesirablesituations and unfavorable changes.”

In addition strategy also provides the following advantages:

1- Support of decisions that aid in predicted and long term goals achievement

2- Providence of resources allocations to more effectively explored opportunities

- Representing the principals in identifying each member’s responsibilities

Providence of the possibility for management system of the organization to be organizedand formalized

- Strengthening the teamwork and emphasizing on it’s advantages

- Specification of the values and interests which are not in the same direction,evaluate their basic concepts and reconciles them

1.1.1.4 Requirements for a business strategy

- Achieving the purpose of improving capacity of enterprise, gaining competitiveadvantage Therefore, building business strategy means thoroughly explore thecomparative advantage of enterprise, focus on approaches to fully employ thestrengths

- Ensuring the business safety, because there are many risky factors in business It’svital to minimize the risk

- Defining the business scope, objective and fundamental conditions to achieve thoseobjective in order to avoid stretching the resources

- Forecasting the future business environment, the more exact forecast, the morefeasible business strategy

- planning a stand-by strategy to cope with the market movements

1.1.1.5 Basis for business strategic planning

- Influence of external environment to the business operation of enterprise: macroenvironment, industrial environment, operational environment (competitive analysis,customer analysis ) In other words, they are opportunities and challenges to enterprise

- The internal capacity of enterprise, or strengths and weakness of enterprise incomparison with the competitors

- Forecast on the market demand for product and service

-Business objectives of enterprises

1.1.2 Business strategic management

1.1.2.1 Strategic management and roles of strategic management

Definition of Business strategic management

- Nowadays, definition on strategic management are various, such as: Strategicmanagement is an ongoing process that evaluates and controls the business and theindustries in which the company is involved; assesses its competitors and sets goalsand strategies to meet all existing and potential competitors; and then reassesseseach strategy annually or quarterly [i.e regularly] to determine how it has beenimplemented and whether it has succeeded or needs replacement by a new strategy

to meet changed circumstances, new technology, new competitors, a new economicenvironment., or a new social, financial, or political environment.” ; “The analysis,decisions, and action an organization undertakes in order to create and sustain

competitive advantages.”; “Strategic Management is a way of managing the

direction of a program by identifying the specific services that the organization isbest suited to deliver and the population groups the organization can mosteffectively serve, and by making a realistic assessment of available resources forcarrying out the work Strategic management requires managers to thinkstrategically, ask questions such as "Is the program doing the right things?" andconsider and anticipate trends in the external environment that will affect theachievement of organizational goals.”

- Despite different definitions on this terminology, a general understanding onstrategic management can be following:

Strategic management is Systematic analysis of the factors associated with customers

and competitors (the external environment) and the organization itself (the internalenvironment) to provide the basis for rethinking the current management practices Its

objective is to achieve better alignment of corporate policies and strategic priorities.The purpose of business strategy is seeking opportunities, or increase the opportunitiesand go ahead for a competitive position for the enterprise A business strategy is plannedwith two closely related important missions which are strategy formulation and strategyimplementation These two missions are realized in 3 stages, creating a completedprocess, which is:

- Business strategy formulation and analysis stage: is the process of situation analysis,future forecast, selection and formulation of strategies which are suitable for theconditions of the enterprise

- Business strategy implementation stage: a process of implementing strategicobjectives in business operation This is a difficult and complicated process, requiringhigh level of risk management

- Business strategy evaluation and adaptation: a process of evaluation and control theoutcomes, working out solution to adapt the strategy to the environment where theenterprise is involved

Roles of business strategic management

- Strategic management provides overall direction to the enterprise Strategicmanagement is an ongoing process that evaluates and controls the business and theindustries in which the company is involved; assesses its competitors and sets goals andstrategies to meet all existing and potential competitors; and then reassesses each strategyannually or quarterly [i.e regularly] to determine how it has been implemented andwhether it has succeeded or needs replacement by a new strategy to meet changedcircumstances, new technology, new competitors, a new economic environment., or anew social, financial, or political environment

- Strategic management can and will influence the organization’s performance.That’s why organizations that face the same environmental conditions, but with different

performance levels – and considering recent studies, there is a wide belief thatorganization’s that use strategic planning usually have better performance that the onesthat don’t Another reason that supports the importance of strategic management has to

do with the continually changing situation that organizations face these days, because ithelps managers to examine relevant factors before deciding their course of action, thushelping them to better cope with uncertain environments Finally, strategic management

is important most organizations are composed by diverse divisions and departments thatneed to be coordinated, else there would be no focus on achieving the organization'sgoals

- Strategic management is of vital importance as CEOs and managers have toconstantly reassess their strategy management models and implement change andimprovement wherever needed

1.1.2.2 Strategic management process

- Many research studies define the strategic management process in differentways, but the aim of the process is to build a market position strong enough and anorganization capable enough to produce successful performance despite unforeseeableevents, potent competition, and internal problems

Figure 2.1: Five tasks of strategic management

It would suggest that the strategic management process as being involved withidentifying environmental problems and opportunities and internal strengths and

Task 5:

Evaluating Performance, Reviewing New Developments and Initiating Corrective Adjustments.

Task 2:

Setting Objectives

Task 2:

Setting Objectives

Task 4:

Implementing and executing the Strategy

Task 4:

Implementing and executing the Strategy

Task 3:

Crafting Strategy to Achieve the Objective

Task 3:

Crafting Strategy to Achieve the Objective

Recycle to Tasks 1,2,3, and

4 as needed

Recycle to Tasks 1,2,3, and

4 as needed

Improve/Change as Needed

Improve/Change as Needed

Revise as Needed

weaknesses This step is called “Analysis and Diagnosis” Then follows “Choice”,

“Implementation”, and “Evaluation” These three steps are concerned with generatingalternative solutions to the problem, making the strategy work by building the structure

to support the strategy and developing appropriate plans and policies, and gettingfeedback to determine whether the strategy is working or taking steps to make it work Analysis of business environment

- The analysis of the environment is a major stage of the strategic managementprocess, which is concerned with providing an understanding of the current situation thatthe organization faces Let say, the analysis of the environment the impact of internal andexternal factors is assessed These influences can play a major role in the development ofstrategies, as they help identify potential opportunities and threats to the organization.Environmental analysis can be undertaken in three parts: the general environmentanalysis, the immediate environment analysis, and the internal environment analysis

Environmental analysis is the study of the organizational environment to pinpoint

environmental factors that can significantly influence organizational operations.1

External environment analysis: All businesses and organizations operate in a changing

world and are subject to forces which are more powerful than they are, and which arebeyond their control No business can survive without continued interaction with theexternal environment, just as a ship at sea is subject to powerful natural forces of which itneeds to be aware and deal with, organizations are influenced by forces in their externalbusiness environment Any business strategy needs to take account of all these forces sothat opportunities and threats can be identified and the organization can navigate its way

to success by matching its internal strengths to external opportunities

- Internal environment analysis: The internal analysis can identify the firm's

strengths and weaknesses and the external analysis reveals opportunities and threats Aprofile of the strengths, weaknesses, opportunities, and threats is generated by means of a

SWOT analysis

Defining vision, mission and objectives

- While a business must continually adapt to its competitive environment, thereare certain core ideals that remain relatively steady and provide guidance in the process

of strategic decision-making These unchanging ideals form the business vision and areexpressed in the company mission statement

The mission statement communicates the firm's core ideology and visionary goals,generally consisting of the following three components:

1 Core values to which the firm is committed

2 Core purpose of the firm

3 Visionary goals the firm will pursue to fulfill its mission

Visionary Goals

- The visionary goals are the lofty objectives that the firm's management decides

to pursue This vision describes some milestone that the firm will reach in the future andmay require a decade or more to achieve In contrast to the core ideology that the firmdiscovers, visionary goals are selected The three components of the business vision can

be portrayed as follows:

Business Vision

Visionary Goals

Business Strategy formulation

Strategic formulation is a combination of three main processes which are as follows:

 Performing a situation analysis, self-evaluation and competitor analysis: both internaland external; both micro-environmental and macro-environmental

 Concurrent with this assessment, objectives are set These objectives should beparallel to a timeline; some are in the short-term and others on the long-term Thisinvolves crafting vision statements (long term view of a possible future), missionstatements (the role that the organization gives itself in society), overall corporateobjectives (both financial and strategic), strategic business unit objectives (bothfinancial and strategic), and tactical objectives

 These objectives should, in the light of the situation analysis, suggest a strategic plan.The plan provides the details of how to achieve these objectives

*The strategy hierarchy

- In most (large) corporations there are several levels of management Strategicmanagement is the highest of these levels in the sense that it is the broadest - applying toall parts of the firm - while also incorporating the longest time horizon It gives direction

to corporate values, corporate culture, corporate goals, and corporate missions Underthis broad corporate strategy there are typically business-level competitive strategies andfunctional unit strategies

- Corporate strategy refers to the overarching strategy of the diversified firm.Such a corporate strategy answers the questions of "in which businesses should we bein?" and "how does being in these businesses create synergy and/or add to thecompetitive advantage of the corporation as a whole?"

Business strategy refers to the aggregated strategies of single business firm or a strategicbusiness unit (SBU) in a diversified corporation According to Michael Porter, a firmmust formulate a business strategy that incorporates either cost leadership, differentiation

or focus in order to achieve a sustainable competitive advantage and long-term success

in its chosen arenas or industries

- Functional strategies include marketing strategies, new product developmentstrategies, human resource strategies, financial strategies, legal strategies, supply-chainstrategies, and information technology management strategies The emphasis is on shortand medium term plans and is limited to the domain of each department’s functionalresponsibility Each functional department attempts to do its part in meeting overallcorporate objectives, and hence to some extent their strategies are derived from broadercorporate strategies

Business strategy implementation

- Realizing the strategic planning into action and reach to adaptation Formulating

a strategy is difficult, but implementing it is even much more difficult To effectivelyimplement the strategy, it’s really necessary to ensure the consistence of all activities,which are:

- Allocation and management of sufficient resources (financial, personnel, operationalsupport, time, technology support)

- Establishing a chain of command or some alternative structure (such as cross functionalteams)

- Assigning responsibility of specific tasks or processes to specific individuals or groups

- It also involves managing the process This includes monitoring results, comparing tobenchmarks and best practices, evaluating the efficacy and efficiency of the process,controlling for variances, and making adjustments to the process as necessary

- When implementing specific programs, this involves acquiring the requisite resources,developing the process, training, process testing, documentation, and integration with(and/or conversion from) legacy processes

- Thus, when the strategy implementation processes, there have been manyproblems arising such as human relations and/or the employee-communication At thisstage, the greatest implementation problem usually involves marketing strategy, withemphasis on the appropriate timing of new products An organization, with a effectivemanagement, should try to implement its plans without signaling the fact to itscompetitors

- In order for a policy to work, there must be a level of consistency from everyperson in an organization, including from the management This is what needs to occur

on the tactical level of management as well as strategic

1.2 AFFECTS OF ENVIRONMENTAL FACTORS TO BUSINESS STRATEGIC 1.2.1 External environment

1.2.1.1 External macro-environment

- PEST analysis is a technique used to identify, assess and evaluate externalfactors affecting the performance of an organization A PEST analysis is undertaken tohelp an organization gain an understanding of the wider business environment and may

be carried out as part of an ongoing process of environmental analysis or scanning Theaim is to provide information to assist those responsible for strategy development anddecision making PEST analysis may be used in the context of overall organizationalstrategy or more specifically to evaluate the feasibility of a new product or service, orexpansion into a new market

- To facilitate the analysis, environmental scanning has traditionally focused onfour types of factors which may have an impact on the success of an organization:political, economic, social (or sociological) and technological factors These four areasform a simple framework for the analysis, although it should be borne in mind that therewill be varying degrees of overlap and interrelation between them

Political factors

- This part of the analysis is concerned with how the policies and actions ofgovernment affect the conduct of business Legislation may restrict or protectcommercial operations in a number of ways Issues to be considered under this headinginclude: the level of political stability, the legislative and regulatory framework forbusiness, employment and trade, the tax regime and fiscal policy, programmes offorthcoming legislation, he dominant political ideology

- Political factors, or how and to what degree a government intervenes in theeconomy Specifically, political factors include areas such as tax policy, labor law,

environmental law, trade restrictions, tariffs, and political stability Political factors mayalso include goods and services which the government wants to provide or be provided(merit goods) and those that the government does not want to be provided (demeritgoods or merit bads) Furthermore, governments have great influence on the health,

education, and infrastructure of a nation

Legal factors

- Legal factors include discrimination law, consumer law, antitrust law,

employment law, and health and safety law These factors can affect how a companyoperates, its costs, and the demand for its products

Economic factors

- This part of the analysis is concerned with overall prospects for the economy.Key measures would include: GDP/GNP, inflation, interest rates, exchange rates,unemployment figures, wage and price, controls, fiscal and monetary policy Issues such

as the availability of raw materials and energy resources and the state of infrastructureand distribution networks may also be relevant

Economic factors include economic growth, interest rates, exchange rates and the

inflation rate These factors have major impacts on how businesses operate and makedecisions For example, interest rates affect a firm's cost of capital and therefore to whatextent a business grows and expands Exchange rates affect the costs of exporting goodsand the supply and price of imported goods in an economy

Social factors

- These are probably the most difficult factors to and predict, as personalattitudes, values and beliefs are involved Demographic factors such as birth rates,population growth, regional population shifts, or a change in the age distribution of thepopulation are also important Factors that may be relevant include: levels of education,employment patterns, career expectations, family relationships, lifestyle preferences,trends in fashion and taste, spending patterns, mobility, religious beliefs, consumeractivism.

- Social factors also include the cultural aspects and include health consciousness,population growth rate, age distribution, career attitudes and emphasis on safety Trends

in social factors affect the demand for a company's products and how that companyoperates For example, an ageing population may imply a smaller and less-willingworkforce (thus increasing the cost of labor) Furthermore, companies may changevarious management strategies to adapt to these social trends (such as recruiting olderworkers)

Technological factors

- Rapid technological change has had far-reaching effects on business in pastdecades Factors to be considered here include: investment in research and development,new technologies and inventions, Internet and e-commerce developments, developments

in production technology, rates of obsolescence analysis described by Roger Cartwright

in "Mastering the Business Environment" (2001) is a further development which alsoencompasses cultural, aesthetic, customers and sectoral factors

- Technological factors include ecological and environmental aspects, such as

R&D activity, automation, technology incentives and the rate of technological change.They can determine barriers to entry, minimum efficient production level and influence

outsourcing decisions Furthermore, technological shifts can affect costs, quality, andlead to innovation

Environmental factors

- Environmental factors include weather, climate, and climate change, which mayespecially affect industries such as tourism, farming, and insurance Furthermore,

growing awareness to climate change is affecting how companies operate and theproducts they offer-it is both creating new markets and diminishing or destroyingexisting ones.

1.2.1.2 Micro environment

- Micro environment includes all internal factors close to the company that have adirect impact on the organizations strategy These factors are five forces demonstrated inthe Porter Model of five forces

Michael Porter provided a framework that models an industry as being influenced byfive forces The strategic business manager seeking to develop an edge over rival firmscan use this model to better understand the industry context in which the firm operates.Rivalry

- In the traditional economic model, competition among rival firms drives profits

to zero But competition is not perfect and firms are not unsophisticated passive pricetakers Rather, firms strive for a competitive advantage over their rivals The intensity ofrivalry among firms varies across industries, and strategic analysts are interested in thesedifferences

- If rivalry among firms in an industry is low, the industry is considered to bedisciplined This discipline may result from the industry's history of competition, the role

of a leading firm, or informal compliance with a generally understood code of conduct.Explicit collusion generally is illegal and not an option; in low-rivalry industriescompetitive moves must be constrained informally However, a maverick firm seeking acompetitive advantage can displace the otherwise disciplined market.

Diagram of Porter's 5 Forces

SUPPLIER POWER

Supplier concentration Importance of volume to supplier Differentiation of inputs Impact of inputs on cost or differentiation Switching costs of firms in the industry Presence of substitute inputs Threat of forward integration Cost relative to total purchases in industry

BARRIERS

TO ENTRY

Absolute cost advantages

Proprietary learning curve

-Switching costs -Buyer inclination to substitute -Price-performance trade-off of substitutes

BUYER POWER

Bargaining leverage Buyer volume Buyer information Brand identity Price sensitivity Threat of backward integration Product differentiation Buyer concentration vs industry Substitutes available Buyers' incentives

DEGREE OF RIVALRY

-Exit barriers -Industry concentration -Fixed costs/Value added -Industry growth -Intermittent overcapacity -Product differences -Switching costs -Brand identity -Diversity of rivals -Corporate stakes

- In pursuing an advantage over its rivals, a firm can choose from severalcompetitive moves: Changing prices, Improving product differentiation, Creatively usingchannels of distribution, Exploiting relationships with suppliers - for example, from the1950's to the 1970's Sears, Roebuck and Co dominated the retail household appliancemarket Sears set high quality standards and required suppliers to meet its demands forproduct specifications and price.

Threat Of Substitutes

- In Porter's model, substitute products refer to products in other industries To theeconomist, a threat of substitutes exists when a product's demand is affected by the pricechange of a substitute product A product's price elasticity is affected by substituteproducts - as more substitutes become available, the demand becomes more elastic sincecustomers have more alternatives A close substitute product constrains the ability offirms in an industry to raise prices

- The competition engendered by a Threat of Substitute comes from productsoutside the industry The price of aluminum beverage cans is constrained by the price ofglass bottles, steel cans, and plastic containers These containers are substitutes, yet theyare not rivals in the aluminum can industry To the manufacturer of automobile tires, tireretreads are a substitute Today, new tires are not so expensive that car owners give muchconsideration to rethreading old tires But in the trucking industry new tires are expensiveand tires must be replaced often In the truck tire market, rethreading remains a viablesubstitute industry In the disposable diaper industry, cloth diapers are a substitute andtheir prices constrain the price of disposables

While the threat of substitutes typically impacts an industry through price competition,there can be other concerns in assessing the threat of substitutes

Buyer Power

- The power of buyers is the impact that customers have on a producing industry

In general, when buyer power is strong, the relationship to the producing industry is near

to what an economist terms a monophony - a market in which there are many suppliersand one buyer Under such market conditions, the buyer sets the price In reality few pure

monopolies exist, but frequently there is some asymmetry between a producing industryand buyers The following tables outline some factors that determine buyer power.

Supplier Power

- A producing industry requires raw materials - labor, components, and othersupplies This requirement leads to buyer-supplier relationships between the industry andthe firms that provide it the raw materials used to create products Suppliers, if powerful,can exert an influence on the producing industry, such as selling raw materials at a highprice to capture some of the industry's profits The following tables outline some factorsthat determine supplier power

Barriers to Entry / Threat of Entry

- It is not only incumbent rivals that pose a threat to firms in an industry; thepossibility that new firms may enter the industry also affects competition In theory, anyfirm should be able to enter and exit a market, and if free entry and exit exists, thenprofits always should be nominal In reality, however, industries possess characteristicsthat protect the high profit levels of firms in the market and inhibit additional rivals fromentering the market These are barriers to entry

Barriers to entry are more than the normal equilibrium adjustments that markets typicallymake For example, when industry profits increase, we would expect additional firms toenter the market to take advantage of the high profit levels, over time driving downprofits for all firms in the industry When profits decrease, we would expect some firms

to exit the market thus restoring a market equilibrium Falling prices, or the expectationthat future prices will fall, deters rivals from entering a market Firms also may bereluctant to enter markets that are extremely uncertain, especially if entering involvesexpensive start-up costs These are normal accommodations to market conditions But iffirms individually (collective action would be illegal collusion) keep prices artificiallylow as a strategy to prevent potential entrants from entering the market, such entry-deterring pricing establishes a barrier

- Barriers to entry are unique industry characteristics that define the industry.Barriers reduce the rate of entry of new firms, thus maintaining a level of profits for those

already in the industry From a strategic perspective, barriers can be created or exploited

to enhance a firm's competitive advantage

1.2.2 Internal environment

- The Internal Analysis of strengths and weaknesses focuses on internal factors

that give an organization certain advantages and disadvantages in meeting the needs ofits target market Strengths refer to core competencies that give the firm an advantage inmeeting the needs of its target markets Any analysis of company strengths should bemarket oriented/customer focused because strengths are only meaningful when theyassist the firm in meeting customer needs Weaknesses refer to any limitations acompany faces in developing or implementing a strategy (?) Weaknesses should also beexamined from a customer perspective because customers often perceive weaknessesthat a company cannot see Being market focused when analyzing strengths andweaknesses does not mean that non-market oriented strengths and weaknesses should beforgotten Rather, it suggests that all firms should tie their strengths and weaknesses tocustomer requirements Only those strengths that relate to satisfying a customer needshould be considered true core competencies

- The following area analyses are used to look at all internal factors effecting a

1.2.2.1 Human Resources based elements

- Resources play a key role for the business success Human beings provide theinputs for the objective planning, analysis of environment, selection and controlstrategies of enterprise Only people who can work effectively can create outcome for

enterprise Human resource elements include: Leadership mechanism, organization,professional level, ethnic and attitudes of the employees, employment policies

1.2.2.2 Production and technique operation elements

- Quality of efforts on business development can help the enterprise to maintainthe leading position in the industry or the other way around Elements concerning R&D

in production include: experience, scientific capacity, adoption ability, science andtechnology application to meet the increasingly high need of the market Production isone operation of enterprise which is closely related to product creation, this is one of thekey activities of enterprise because it remarkably affects other activities and partly buildthe business success Production and operation factors to be considered include:

Price and level of raw materials supply, the arrangement of production tools, the capacity

of machineries, equipment, technology capability, controlling approaches, andproduction cost

1.2.2.3 Financial elements

- The functional unit of finance and accounting can deeply and widely influencethe whole enterprise, the finance and accounting unit is directly concerned all otheractivities Financial elements to be considered are: Mobilization capability, cost,Profitability, capital structure

1.2.2.4 Marketing and sales elements

- In the market economy, enterprise is a business unit, a lively corp in theeconomic and social life Enterprises want to survive and develop should be good atorganizing functional activities such as financial production, HR management, rawmaterials supply, and especially marketing activities and product consumption in am aim

to connect the enterprises’ activities to the market

Research on consumption policies and marketing strategy, it should be focused onfollowing aspects:

+ Organization and operation of distribution channels

+ Price policy, promotion communication, sales promotion

+ After sales service, customer care

1.2.3 International environment

1.2.3.1 For domestic enterprises

- Enterprise which is not dealing directly with foreign enterprises should take intoaccount the possible impacts of international environment due to its indirect impacts onenterprise via macro and micro environment

* Impact of international factors on macro environment

- Impacts on economic environment: Nowadays, no country can stayindependent, without any international exchange or transaction That’s why anymovement of the world economy has influence on the national economy to some extent.The development of one nation somehow will influence the development of some otherrelating nations, even the whole world economy

- Impacts on the legal and political environment: on the basis of diplomaticrelationship, governments formulated business transactions on international market Anychange in the diplomatic tight will lead to adjustments of the international trade policy,which, in turns directly or indirectly influence on the enterprise

- Influence on the technological environment: Scientific and technologicalinnovations by foreign enterprises provide new labor tools to replace the new productswill also give an impact on domestic technical environment

- Social and natural factors in foreign countries also affect the enterprise althoughthe enterprises don’t operate directly on the international market

* Influence of international factors on micro environment

- Foreign customers are always potential target customer which enterprise willsurely take into consideration when it develops Enterprises should, at the same time,consider international supplier as the potential partners, especially when they offer goodprice Any enterprise, even foreign ones, can launch substitute product, that’s why it’snecessary to follow up the development pace of strategic capacity of foreign enterprisesoperating in the same sector

1.2.3.2 For international enterprises

* Impacts of international elements on micro environment

Whatever they do, trading or establishing a business abroad or coordinating with foreignsuppliers, domestic enterprise also needs to analyze the environment at the host country When selling their products oversea, enterprises which get direct affect by the microenvironment; all elements, economics, political, legal, cultural, social, technology, natureall can have direct or indirect impacts on the business activities of enterprise.

When the enterprise doing business domestically and have good relationship withforeign suppliers, the movement in the micro environment in home country of supplierswill direct influence on the price and supply situation

With enterprise who is trying to establish production plants in the foreign country, theyneed to thoroughly discuss the environment micro In the host countries beforeimplementing the business operations

*Influence of elements related to the operation environment

Doing business on international market under any circumstances require careful research

on the operational market in home country: competition, customer, supplier, substitutes,and rivalry

*Influence of international elements on the internal environment

Entering the oversea market, enterprises should consider elements belonging to a certaininternal environment such as the change of management board and education level oflocal management staff who is employed in management post, ability to expense thefinancial resources of enterprise

1.2.4 Basis business strategies in reality

Michael Porter defined three general strategies which can be applied at business unitlevel in order to create competitive advantage Basis of competitive strategy:

(1) The demand of customer, what to satisfy;

(2) Target groups, who to be satisfied;

(3) Differentiation capacity, How to satisfy the customers’ demand

That’s the main issues in selecting a corporate business strategy, because they are thefoundation to build competitive advantage over the competitors, as well as to define thecompetitive approaches of enterprise

 Differentiation strategy

- A differentiation strategy calls for the development of a product or service thatoffers unique attributes that are valued by customers and that customers perceive to bebetter than or different from the products of the competition The value added by theuniqueness of the product may allow the firm to charge a premium price for it The firmhopes that the higher price will more than cover the extra costs incurred in offering theunique product Because of the product's unique attributes, if suppliers increase theirprices the firm may be able to pass along the costs to its customers who cannot findsubstitute products easily

Firms that succeed in a differentiation strategy often have the following internalstrengths:

 Access to leading scientific research

 Highly skilled and creative product development team

 Strong sales team with the ability to successfully communicate the perceivedstrengths of the product

 Corporate reputation for quality and innovation

- The risks associated with a differentiation strategy include imitation by competitorsand changes in customer tastes Additionally, various firms pursuing focus strategiesmay be able to achieve even greater differentiation in their market segments

Demand of customers is wants, needs which are satisfied by features of product orservice Differentiation is a source of competitive advantage Although research in a

niche market may result in changing your product in order to improve differentiation, thechanges themselves are not differentiation Marketing or product differentiation is theprocess of describing the differences between products or services, or the resulting list ofdifferences This is done in order to demonstrate the unique aspects of your product andcreate a sense of value Marketing textbooks are firm on the point that any differentiationmust be valued by buyers The term unique selling proposition refers to advertising tocommunicate a product's differentiation

- The objective of differentiation is to develop a position that potential customerssee as unique.

- Differentiation primarily impacts performance through reducing directness ofcompetition: As the product becomes more different, categorization becomes moredifficult and hence draws fewer comparisons with its competition A successful productdifferentiation strategy will move your product from competing based primarily on price

to competing on non-price factors (such as product characteristics, distribution strategy,

or promotional variables)

- Most people would say that the implication of differentiation is the possibility ofcharging a price premium; however, this is a gross simplification If customers value thefirm's offer, they will be less sensitive to aspects of competing offers; price may not beone of these aspects Differentiation makes customers in a given segment have a lowersensitivity to other features (non-price) of the product

* Target group and marketing segmentation

- Market segmenting is the process that a company divides the market intodistinct groups who have distinct needs, wants, behavior or who might want differentproducts & services Broadly, markets can be divided according to a number of generalcriteria, such as by industry or public versus private although industrial marketsegmentation is quite different from consumer market segmentation, both have similarobjectives All of these methods of segmentation are merely proxies for true segments,which don't always fit into convenient demographic boundaries Generally, there arethree different market segmenting strategies:

- Firstly, a strategy emphasizes efficiency By producing high volumes of standardized

products, the firm hopes to take advantage of economies of scale and experience curveeffects The product is often a basic no-frills product that is produced at a relatively lowcost and made available to a very large customer base Maintaining this strategy requires

a continuous search for cost reductions in all aspects of the business The associateddistribution strategy is to obtain the most extensive distribution possible Promotionalstrategy often involves trying to make a virtue out of low cost product features

-Secondly, Differentiation strategy is aimed at the broad market that involves the creation

of a product or services that is perceived throughout its industry as unique The company

or business unit may then charge a premium for its product This specialty can beassociated with design, brand image, technology, features, dealers, network, orcustomer’s service Differentiation is a viable strategy for earning above average returns

in a specific business because the resulting brand loyalty lowers customers' sensitivity toprice Increased costs can usually be passed on to the buyers Buyer’s loyalty can alsoserve as entry barrier-new firms must develop their own distinctive competence todifferentiate their products in some way in order to compete successfully

- Thirdly, in this strategy the firm concentrates on a select few target markets It is alsocalled a segmentation strategy or niche strategy It is hoped that by focusing yourmarketing efforts on one or two narrow market segments and tailoring your marketingmix to these specialized markets, you can better meet the needs of that target market Thefirm typically looks to gain a competitive advantage through product innovation and/orbrand marketing rather than efficiency It is most suitable for relatively small firms butcan be used by any company A focus strategy should target market segments that areless vulnerable to substitutes or where a competition is weakest to earn above-averagereturn on investment

* Decision on unique capacity

- The shareholder value model holds that the timing of the use of specializedknowledge can create a differentiation advantage as long as the knowledge remainsunique [1] This model suggests that customers buy products or services from anorganization to have access to its unique knowledge The advantage is static, rather thandynamic, because the purchase is a one-time event

The unlimited resources model utilizes a large base of resources that allows anorganization to outlast competitors by practicing a differentiation strategy Anorganization with greater resources can manage risk and sustain losses more easily thanone with fewer resources This deep-pocket strategy provides a short-term advantage

only If a firm lacks the capacity for continual innovation, it will not sustain itscompetitive position over time.

Cost Leadership Strategy

- This generic strategy calls for being the low cost producer in an industry for agiven level of quality The firm sells its products either at average industry prices to earn

a profit higher than that of rivals, or below the average industry prices to gain marketshare In the event of a price war, the firm can maintain some profitability while thecompetition suffers losses Even without a price war, as the industry matures and pricesdecline, the firms that can produce more cheaply will remain profitable for a longerperiod of time The cost leadership strategy usually targets a broad market

- Some of the ways that firms acquire cost advantages are by improving processefficiencies, gaining unique access to a large source of lower cost materials, makingoptimal outsourcing and vertical integration decisions, or avoiding some costs altogether

If competing firms are unable to lower their costs by a similar amount, the firm may beable to sustain a competitive advantage based on cost leadership

Firms that succeed in cost leadership often have the following internal strengths:

- Access to the capital required making a significant investment in production assets;ithis investment represents a barrier to entry that many firms may not overcome

- Skill in designing products for efficient manufacturing, for example, having a smallcomponent count to shorten the assembly process

- High level of expertise in manufacturing process engineering

- Efficient distribution channels.

- Each generic strategy has its risks, including the low-cost strategy For example,other firms may be able to lower their costs as well As technology improves, thecompetition may be able to leapfrog the production capabilities, thus eliminating thecompetitive advantage Additionally, several firms following a focus strategy andtargeting various narrow markets may be able to achieve an even lower cost withintheir segments and as a group gain significant market share

Differentiation Strategy

- A differentiation strategy calls for the development of a product or service thatoffers unique attributes that are valued by customers and that customers perceive to bebetter than or different from the products of the competition The value added by theuniqueness of the product may allow the firm to charge a premium price for it The firmhopes that the higher price will more than cover the extra costs incurred in offering theunique product Because of the product's unique attributes, if suppliers increase theirprices the firm may be able to pass along the costs to its customers who cannot findsubstitute products easily

- Firms that succeed in a differentiation strategy often have the following internalstrengths:

- Access to leading scientific research

- Highly skilled and creative product development team

- Strong sales team with the ability to successfully communicate the perceivedstrengths of the product

- Corporate reputation for quality and innovation

- The risks associated with a differentiation strategy include imitation by competitorsand changes in customer tastes Additionally, various firms pursuing focus strategiesmay be able to achieve even greater differentiation in their market segments

Focus Strategy

- The focus strategy concentrates on a narrow segment and within that segmentattempts to achieve either a cost advantage or differentiation The premise is that the

needs of the group can be better serviced by focusing entirely on it A firm using a focusstrategy often enjoys a high degree of customer loyalty, and this entrenched loyaltydiscourages other firms from competing directly

- Because of their narrow market focus, firms pursuing a focus strategy havelower volumes and therefore less bargaining power with their suppliers However, firmspursuing a differentiation-focused strategy may be able to pass higher costs on tocustomers since close substitute products do not exist

Firms that succeed in a focus strategy are able to tailor a broad range of productdevelopment strengths to a relatively narrow market segment that they know very well Some risks of focus strategies include imitation and changes in the target segments.Furthermore, it may be fairly easy for a broad-market cost leader to adapt its product inorder to compete directly Finally, other focusers may be able to carve out sub-segmentsthat they can serve even better

A Combination of Generic Strategies

- These generic strategies are not necessarily compatible with one another If afirm attempts to achieve an advantage on all fronts, in this attempt it may achieve noadvantage at all For example, if a firm differentiates itself by supplying very high qualityproducts, it risks undermining that quality if it seeks to become a cost leader Even if thequality did not suffer, the firm would risk projecting a confusing image For this reason,Michael Porter argued that to be successful over the long-term, a firm must select onlyone of these three generic strategies Otherwise, with more than one single genericstrategy the firm will be "stuck in the middle" and will not achieve a competitiveadvantage

- Porter argued that firms that are able to succeed at multiple strategies often do so

by creating separate business units for each strategy By separating the strategies intodifferent units having different policies and even different cultures, a corporation is lesslikely to become "stuck in the middle."

However, there exists a viewpoint that a single generic strategy is not always bestbecause within the same product customers often seek multi-dimensional satisfactions

such as a combination of quality, style, convenience, and price There have been cases inwhich high quality producers faithfully followed a single strategy and then sufferedgreatly when another firm entered the market with a lower-quality product that better metthe overall needs of the customers

-(next)

CHAPTER 2 ANALYSIS AND EVALUATION OF THE BUSINESS ENVIRONMENT

FOR VAS OF VNPT 2.1 VNPT OVERVIEW

- Founded in 1945, Vietnam Posts and Telecommunications Group (VNPT) is anenterprise which has the long-term development associated with the development ofVietnam posts and telecommunications industry and at the same time, this corporationplay an important role in making Vietnam become among the 10 nations with the highestspeed of post and telecommunication development

- Pursuant to the decision 256/2006/ADD-TTG by the Prime Minister approvingthe charter of of Vietnam Posts and Telecommunications Group (VNPT), by whichVNPT officially become a Group, replacing the old cooperation structure with thedevelopment strategy of a multi-industries, multi-sectors, multi-onwnership based onPosts and Telecommunications as the core operation The chartered capital of VNPT atthe foundation time is 2,8 billions dollars

- With more than 90,000 employees, advanced telecommunicationsinfrastructure, a network covering all of 63 provinces and cities in the country, as well asrich experience in supplying posts and telecommunications services, VNPT offers a wideand diversified range of services to its clients In the area of telecommunications, VNPTprovides a number of comprehensive products and services, such as voice, datatransmission, Internet and value added services over an unified and moderninfrastructure, with wireline and wireless means of transmission

- Post service: The service point network is ever expanding and modernizingwhile services diversified, meeting customer demands and business efficiency enhanced.VNPT provide the services largest coverage, biggest market share with various servicesprovided on the postal network: Newspaper distribution, domestic and internationalEMS, delivery within-the-day ,Financial services (inbound and outbound moneytransfer, postal savings, and personal savings account), New services (ensured mail,

postal consignment, Data post), Cash on delivery (COD); Postal life insurance service,Postage stamp service VNPT has engaged in cooperation on international post serviceswith 85 countries and regions VNPT is always reelected as the member of Asian PacificPostal Union (APPU).

- Telecoms services: Comprehensive service including VSAT services, Inmarsatservices, Data transmission services, International TV emission & transmission services,Telephone, facsimile, telex (domestic & international), Mobile phone, CDMA services,Internet telephony VNPT has established international telecom contact with all countriesover the world, among which there are direct contact with 34 nations on more than 7500international telecom channels through statelines and sea cables

- Up to now, telephone fixed telephone reached 10.552.000 subscribers,mobiphone : 55.000.000 subscribers; internet (ADSL) 2.050.000 subscribers; with 01private stateline Vinasat 1, which is a product based on the cooperation with LoockMartin – USA, who is now building the 2nd statelines, with the 2008 revenue of 58thousands dong

- VNPT is Vietnamese telecom representatives attending the Forum ofinternational telecom organizations, such as: ITU (International telecom union), APT(Asian Pacific Telecom), INTELSAT, INTELSAT (Global Telecommunications

Communications), GSM MOU (GSM Association), PTC (Pacific Telecom Council),APECTEL (APEC Telecommunications and Information Working Group)

Currently, VNPT has independent business officially operating in SanFrancisco USA, Australia, Cuba, Venezuela, North Korea, Lao, Cambodia, Malaysia, Hong Kong,China, Myanma, and joint venture with foreigners: Japanese, South Korea, Singapore,Thailand, Germany, France, Swisse, Russia, and some western european countries