Phân tích chiến lược công ty viễn thông quốc tế VTI và một số đề nghị nhằm thực hiện những thay đổi về chiến lược e

In the period from 1990 to 2012, VTI has developed and implemented various business strategies to gain leading market share in international telecommunications services at the current an

Phân tích chiến lược công ty Viễn thông quốc tế VTI và m t số đề nghị nhằm ột số đề nghị nhằm thực hi n những thay đổi về chiến lược ện những thay đổi về chiến lược

3 Product and serviece development strategy 7

Part III Analyzing the company’s strategy and giving proposals

to implement the changing of strategy.

8

I Analyzing and evaluating the strategic situation of VTI 8

II Giving proposal to implement changing of strategy 12

Reference

Document

13

INTRODUCTION

Strategic situation of enterprises in Vietnam is still a matter which managers need

to pay attention Company which lack of strategy is a long story and it can not tell all, 85%

of Vietnamese enterprises do not have strategy for more than two years Most of them only identify what are their product or service And they do not have more attention about their position, their product position on market and in the future So it is easy to reduce business resources but do not have detection and strengthening solution, maintaining the resources to meet their development needs or do not improve the competition capacity

In the market economy with the current integration trend, the leading concern of business leaders is maintaining and improving the competitiveness of the product, maintaining and expanding market share To perform this task successfully, leaders must

be good corporate management, manager must perform the task which building business development strategy, must be sensitive to market signals, must control risks, identifying organizational models, managing business operations and executing people to achieve the strategic objectives

Viet Nam Telecom International has also identified the important role of business strategy In the period from 1990 to 2012, VTI has developed and implemented various business strategies to gain leading market share in international telecommunications services at the current and continuous development for many years with high speed However, in the next period (2013-2016), VTI will be required to change planning to build business strategy in telecommunication services under the new situation

PART I: INTRODUCTION ABOUT COMPANY

1 General Introduction

Viet Nam Telecommunications International Company, abbreviated as VTI (was called

by VTI Company) is a state-owned company which was established on 31 of March, 1990 VTI is a state company, member of the Vietnam Post and Telecommunications Group (VNPT) and was tasked with the organization, construction, management, maintenance, operation and exploitation of international telecommunications network of Vietnam

Address of head office: 97 Nguyen Chi Thanh, Dong Da, Hanoi, Vietnam

Tel: 84-4-38410034

Fax: 84-4-38357393

Website: vnpti.com.vn

VTI company with the most modern international telecommunications network, the most advanced technology has put into operation a variety of rich services including voice pakage services such as: International Dial Directly (IDD), Voice of IP technology (VoIP), international conference phones, international video conference Non-voice services such as: international line leasing services, international virtual private network, the transceiver international, satellite services (VSAT, VINASAT) meet the diverse needs

of customers in high quality in country and on abroad Now, VTI have partnerships with most of the countries and territories around the world to fully adapt the international demand for international information

2 Organization structure:

VTI is the member of VNPT with 4 center was attached as follows:

International Telecommunications Center Region I: Managing the North Region.

The Head Office at 97 - Nguyen Chi Thanh, Dong Da district, Hanoi

Regional International Telecommunications Center II: Managing the South Region.

The head office at 142 Dien Bien Phu, District 1, Ho Chi Minh City

International Telecommunications Center Region III: Managing Central Region,

Head Office at 344 - 2/9 street, Hai Chau District, Da Nang

VINASAT Center: Managing, operating and exploiting the VINASAT-1 and

VINASAT-2 The head office is located at 97 Nguyen Chi Thanh, Dong Da district, Hanoi

Currently, the total staff are 1,400 people Administrative and personnel apparatus was hold by the functional model with the organizational chart as follows:

Funtional Deprtment Unit Members

Internaltionalcorporation Business Deprtment International Telecommunications Center Region I

Telecom Deprtment Regional International Telecommunications Center II Sale & Promotion Deprtment International Telecommunications Center Region III

Investment & Develoment Deprtment VINASAT Center

Planning Deprtment International Telecom Project Management

International Payment Deprtment

Administration Deprtment

Finance Deprtment

Information Technology Deprtment

Project Deprtment

Human Resource Deprtment

MANAGEMENT BOARD

Source: VTI 2012Profile

3 Main field of VTI:

Organizing, constructing, operating and exploiting international telecommunication networks: the international telecommunications network includes VINASAT-1, VINASAT-2 (from 6/2012), the ground station system, international submarine cable systems, international telephone switching system

Providing the international telecommunications services: Implementing the installation service, managing and exploiting the whole international telecommunications network, such as international telephone services, international data transmission

Consulting, survey, designing, constructing and installation the specialized communication: Implement monitoring service, installing and connecting online, the technical support for the entire network of Vietnam telecommunications international

Exporting, importing and trading the specialized telecommunications equipment: Implement exported services, importing equipment for the international telecommunication network

Maintening the specialized equipment communication: Implementing the maintenance services, maintening and repairing the specialized telecommunications equipment

PART II:

CURRENT STRATEGY OF TELECOMMUNICATIONS INTERNATIONAL COMPANY

In the current development stage, VTI Company has implemented several business plans in order to attract new customers and maintain the market share in Vietnam which compared to other competitors in the telecommunications industry

1 Market development strategy

With aims to expand the service market, in recent years, the VTI Company has made plans to develop services market both at internal country and abroad In order to attract more customers using the service at internal country and abroad, VTI has signed a cooperation contract with big domestic partners and big foreign partners

On 20/12/2011, in Beijing, VTI had signed a contract with the Chunghwa Telecom partner, KT Corporation partner, NTT Com partner to build international submarine cable systems, "Asia-Pacific Gateway" (APG) International submarine cable APG is a large underground cable system multiple terabit which connected directly to 9 countries and territories in Asia-Pacific, including China, Hong Kong, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand and Vietnam to meet growing demand, adding more capacity and diversity for the existing cable system

On 17/11/2011, in Hanoi, VTI had signed a contract to upgrade international channels with Telecom Cambodia (TC) to upgrade STM4 channel to STM16 from the Cambodia-Vietnam border to Hong Kong This is an important arterial media abroad of Cambodia This contract represents the capacity and commitment of VTI in the providing transit capacity and international to Cambodia

On the same day, representatives of VTI had signed an Understanding of Memorandum

on Television Services Development Cooperation in the Cambodia with the Information Ministry of the Cambodia Kingdom and Ho Chi Minh City Television The signing of this MOU will be the basis for co-operation between Vietnam and Cambodia in the using Vinasat capacity also as other telecommunications infrastructure of VTI to develop services on TV in Cambodia and other countries which belong to the coverage of VINASAT in the future

To develop providing VINASAT-1 market to International, On 14/12/2009, in Hanoi, VTI had signed cooperation agreements with Shin Satellite partners (Thailand) with exchanging VINASAT-1 with Thaicom-5 satellite to enter the Southeast Asia and Asia Pacific market VTI also had signed a training contract with SES ASTRA (exploiting satellite Luxembourg company); had signed a Memorandum of Understanding (MoU) on cooperation and exchange business with ABS ( Hongkong); had signed MoU as agents in

sale VINASAT-1 with Universal Telecom Services (U.S.); negotiating to sign a Memorandum of Understanding (MoU) on cooperation and exchange business with Protostar Satellite mining firms (Singapore)

In addition, VTI had signed cooperation agreements with Telstra partners (Australia), China Unicom (China), US Sprint (USA), AT & T (USA) BBG (USA.), Verizon Business (USA) and others partners around the world to develop international telephone service market

Thanks to the cooperation contract mentioned as above, VTI's revenue has grown strongly in the period 2007-2012

2 Low-cost strategy

VTI company has implemented strategies such as promotional discounts for customers who using the service in a long term, with large number of products to compete with other competitors and commission percentage for Agents

3 Product development services Strategy

To satisfy the demand which is increasing of customers, VTI has researched and developed new services such as video conferencing services via satellite (VSAT-IP video conferencing) to diversify the types of provided services The new service has been used

by the Central Post Office Department for the entire government computerization program, for special-purpose networks

4 Market entry strategy

VTI has promoted the brand through advertising services on the mass media; as well as the implementation media of VINASAT-1, VINASAT-2; annual customers conference with large scale and gifts for the customers

However, 2012 is the final stage of the strategy, services’s revenue was not growth and profit was not high The causes of data on revenue and profit was not satisfactory due to: Vietnam's telecommunications market has entered the saturation stage, so that the signing of the new contract is very difficult Competition among telecommunications service providers increasingly tough, so the keeping market share in the competition on prices of other units of VTI is a difficult task

PART III: CORPORATEE STRATEGY ANALYSIS AND SOME SOLUTIONS

IN ORDER TO IMPLEMENT CHANGING OF STRATEGY

I Analzing and Evaluating the status of the Company's business strategy.

1 External environment:

Vietnam is considered as a potential market and is one of the most dynamic economies

in Asia Average GDP growth rate for 2006-2010 was 7.01% In 2011, despite the global economic had recession and financial crisis, but Vietnam's GDP still rose 5.89%, including 6.99% of growth service sector, contributed 2.91% to the increase general growth of the economy Economic growth can affect the growth rate of the market in Vietnam in recent years

8.23 8.46

6.31

5.32

6.78

5.89

0 1 2 3 4 5 6 7 8 9

2006 2007 2008 2009 2010 2011

Chart of the country's GDP growth rate (2006 - 2011)

(Source: Bureau of Total Statistics) The strong development of science and technology in the world had an impact on all business and production, particularly the Telecommunications industry For international telecommunications services, technological factors are very important because it impacted directly on service quality, price, labor productivity VTI had been to upgrade the entire backbone telecommunications network system to keep up the growing trend of technology

in the world

Directed competitors

Vietnam's telecommunications market is very attractive with the permission and support of State and Government Many companies provided telecommunications services with certain advantages and they are competitors drastically with VNPT in general and the VTI in particular The directed competitors outbound international telecommunications services and the back way was considered as the most powerful competitor of VTI is Military Telecom Corporation - Viettel, Saigon Postal Telecom company - SPT, Electricity Viet Nam Telecom - EVN Telecom (was merged with the Military Telecom Corporation from 2012) Because VNPT/VTI is the telecommunications service operators have a long history so that VNPT/VTI is the dominant market share for voice services The number of fixed telephone subscribers and mobile subscribers of VNPT (including

Vinaphone and VMS Mobifone) are much better than the competitors So they have contributed to large amounts of voice for international telephone services international dimension and direction of the VTI

Chart of Market share subscribers voice service in Vietnam in 2011

(Source: Business Result report of VTI, 2012)

Indirected competitors

Currently, information technology and telecommunications grows, the field of information technology most penetrated to telecom sector More and more new services was launched, especially phone services increased diversely and more conveniently New services such as Voice over Internet Protocol (VoIP), email increasingly improved in the features and quality and it is directed competition with traditional international telephone services of VTI

Potential competitors

With the open door policy of Vietnam's telecommunications industry, in the future, there will be a lot of businesses engaged in telecommunications services market to bring more profit When the telecommunications enterprises in developing countries involved in the Vietnam market, they will be the major competitor of VTI because these firms have

strong potential in terms of capital, engineering and technology, trade secret business and enterprise management tools The domestic telecom service providers need to create a strong position to be able to compete with larger competitors

2 Research internal environment

VTI is an international telecommunications services provider in Vietnam For many years, VTI is the unique provider, so they was cooperated by partners in the world VTI was assigned to manage the key international telecommunications network of national which are regularly and ongoing development of both scale and quality In the process of production and business, VNPT Group always ensures the providing for a fast and stable growth market; with abundant financial resources With 22 years of experience in the industry, VTI has built very good relationships with customers and partners around the world VTI and VNPT are enjoying the preferential treatment of the State to encourage investment in the field of information and communication

Human resources

Total staff of VTI are 1400 employees, of whom graduated from the University and postgraduate accounting for 74% of total labor

VTI found that the human factor is the success element or failure element of the enterprise, so in addition to compensation for the employee through salary, bonuses, social policy and welfare VTI also regularly supports 100 % of funding and working time to attend training course with enhancing staff capacity both at internal and abroad VTI’s training cost in 2011 was more than 3 billion for 1242 official staffs was sent to training with a total training time is 1400 days

Structure: human resources diagram of VTI in 2011 (Source: Report on human resource development of VTI in 2011)

Marketing activities

Marketing activities has made significant strides in promoting the brand to customers through promotions, media campaigns, such as: advertising on the large table at the international airport, communication on the launching VINASAT-1, etc However, there are still some limitations such as: staff have not been trained deeply, they only work according to experience so the professional is not high, some products for advertising media products have not attracted many clients

Research and development market

VTI has implemented cooperation agreements with major partners around the world to expand the international telecommunication networks globally VTI has hired several well-known market research company at foreign to research market subscription service VINASAT for areas where satellite coverage

Service Quality management

Service quality is the first factor to decide the existence of the business For international telecommunications services, this is even more important because customers have to spend large cost for communication needs immediately To achieve success as today, it is best trying of VNPT in general and VTI in particular in ensuring quality of service at the highest level Service quality standards are set by world standards

Finance

VTI is a business which account depends on VNPT, therefore company always was provided a rich source of funding for the development of network infrastructure VTI always does modernization to improve the quality of network services

II Some suggestion and solutions to implement change of strategy - For the Vietnam Post and Telecommunications Group

Company need more decentralized for accounting units which can be more active in the production business The wage policy, reward policy, discipline are still intensely subsidized The results make employees less enthusiasm, less dynamic in working

Business policies, investment should also be changed to suit the new conditions Currently, regulations, processes and too closely procedures for working lead to investment, business lack of the flexibility to delay the attractive opportunities

The advertising, the focused media need to be reformed strongly to enhance the brand and reputation of the unit member of VNPT, to avoid losing market share to competitors