Phân tích chiến lược kinh doanh của công ty VMS e

Phân tích chiến lược kinh doanh của công ty VMS3.3 Analyze SWOT about competitive situation of the company 18 Chapter 4: THE PROPOSALS TO IMPLEMENT CHANGES IN STRATEGY 19 INTRODUCTION In

Phân tích chiến lược kinh doanh của công ty VMS

3.3 Analyze SWOT about competitive situation of the company 18 Chapter 4: THE PROPOSALS TO IMPLEMENT CHANGES IN

STRATEGY

19

INTRODUCTION

In 2012, Telecommunications sector in Vietnam in general, mobile information services in particular have witnessed fierce competition between the top three networks

in Vietnam: Vietel, Mobifone (VMS) and VinaPhone Most prominent in this

competitive trend is powerful rise of mobile subscriber market, network providers continuously put in to service different strategies in order to attract customers, increase sales and profits ,occupy market share

As a staff currently working in VMS-Mobifone, with the practical experiences in working process in the company as well as the knowledge that was imparted and collected in strategic management course - PGSM of Dr Prof THOMAS Jakobsen, I choose VMS company to research about strategy, analyze the external industry environment, company environment as well as analyzing and evaluating current rivals of Mobifone that are Vietel and VinaPhone , thereby, puting proposals to change strategies

by myself

Due to limited time and knowledge so do not avoid deficiencies I would like to thank Dr Prof THOMAS Jakobsen - Specialization in Business Administration and Economics, University of Aarhus, Denmark who guidanced me and look forward to receiving comments and contributions from Professor and his colleagues to complete subject

Chapter 1: ABOUT VMS COMPANY 1.1 About company

Vietnam Mobile Telecom Services Company - VMS, a state-owend company under Vietnam Posts and Telecommunications Corporation, was founded in April 16th 1993, VMS has become the first GMS 900/1800 mobile telephony services provider in the brand name MobiFone, marking the beginning momentum of the mobile telephony industry in Vietnam MobiFone specializes in building, developing network and

providing mobile telephony According to business perspective, products of MobiFone

is to organize designing, developing network and providing new services on mobile information with advanced techniques and businessing GSM 900/1800, 3G UMTS technology mobile communication services nationwide

- Official name: VIETNAM MOBILE TELECOMMUNICATIONS

SERVICES COMPANY

- International Trade name: VIETNAM MOBILE TELECOM SERVICES

CO (VMS)

- Headquarters: Mobifone Building, VP1, Yen Hoa Urban, Cau Giay District, Hanoi

- Website: http://www.mobifone.com.vn

- Logo and brand

1.2.Organizational structure of the company

The organizational structure of the company now includes:

- Chairman

- Managing Director

- 14 functions departments under the company

 09 other departments include: 06 Mobile telecom services center having branches in 6 areas:Hai Phong, Ha Noi,Da Nang,Ho Chi Minh city,Bien Hoa,Can Tho

 Value added services center (VAS)

 Billing and service support center

 Design factory

1.3 The achievements

Mobifone has gained a lot of achievements for 20 years from 1993-2012, especially the recent three-year period from 2009-2011:

Award in 2011

- The title "Hero of Labour" awarded by the State

- “The most favorite mobile telephony operator 2007” for ICT products voted by

E-Chip Mobile Magazine on July,12th ,2011

Awards in 2010

- “The Best Quality Telecom Operator” Award in 2010 at VICTA Ceremony by

Vietnam Ministry of Information and Communications

- “The Most Favourite Operator 2010” voted by VietnamNet and E-chipMobile

Magazine readers

- “The Best Services and Customers Care Operator” voted by VietnamNet

readers and EchipMobile Magazine

- “The Most Favourite ICT Product 2010” for Mobile network voted by PC

World Magazine

Awards in 2009

- “The Most Favourite ICT Product 2009” voted by PC World – announced in

June 2009

- “The most favorite mobile telephony operator 2009” voted by readers of

VietnamNet newspaper E-Chip Mobile Magazine - Vietnam Mobile Awards;

- The Best Customer Care Operator 2009 voted by VietnamNet and

E-chipMobile Magazine readers

- The Best Customer Care Operator awarded in VietNam ICT Awards 2009 prize system by Vietnam Ministry of Information and Communications

MobiFone claims " the most favorite trade name"

(Source: http://ictnews.vn/home )

Chapter 2: CURRENT STRATEGY OF VMS

From the good results that achieved in the past 20 years (1993-2012), Mobifone will accelerate in all business activities to complete the business plan, first of 2013 is more than 2 billion dollars, and achieve the goal by 2016 is 5 billion dollars At the same time,

will become the most powerful and reliable partner of the stakeholders in the telecommunications sector in Vietnam and the world, namely:

- General business strategy of the Company :

 Provide a full range of mobile communication services

 Provide 3G and 4G

 Promote the exploitation of value-added services for mobile phones

- Vision, mission of the Company

 Strategic Vision: To become the most powerful and reliable partner of the stakeholders in the telecommunications sector in Vietnam and all over the world

 Business Mission: whenever and wherever

All the most advanced telecom technology will be used for the needs of

customers

Always be innovative to bring new value-added services to customers All information is shared in a transparent manner

Where to recommend and share the most reliable benefits of staff and

employees, customers, shareholders and the community

- Core Values of the Company

Transparency

Transparency is expressed from awareness to the actions of each individual in the company Transparency management, transparency liability, transparency interests

Consensus

Promote consensus and cohesion in a friendly and sharing working- environment

to develop Mobifone become the most powerful and reliable partner of the

stakeholders in the telecommunications sector in Vietnam andall over the world

Prestige

Proud of the superiority of a leading brand in the mobile communication sector in Vietnam Customers are interested in service and have many choices Both proximity and skill and spirit make up the differences that help Mobifone has a special position in customer

Not satisfied with what are having but always dreams to rise in learning, creativity, and innovation to satisfy increasing and constantly changing demands

of market

Responsibilities

The development associated with social responsibility is tradition of MobiFone

We commit to provide superior mobile communication products and services for society, share and take social responsibility because of a sustainable future

- Cultural norms of company:

 High quality service

 Politeness and fun

 Transparency and cooperation

 Quick and accurateness

 Dedication and creativity

(Source of website: mobifone.com.vn)

Chapter 3: ANALYZE COMPANY AND ENVIRONMENT

3.1 Analyse company

3.1.1 Operations results of VMS from 2010 to 2012

Revenue and profit before tax of VMS

Unit: Billion VNĐ

(Source: Annual Report of Mobifone)

Revenue increased from 5-10% per year

Profit after tax increased by more than 5% per year

3.1.2 Market share

Market share between 3 network: Viettel, Mobifone and VinaPhone

(Source: Survey data of VMS)

Comment:

- Revenue and profits of Mobifone increase steadily over the years, but market share is declining sharply

- Vietel: Revenue and profit growth, market share is increasing compared to Mobifone and Vinaphone

- Vinaphone: Revenue, profit up slightly but the market share decline

3.1.3 Strengths

Brands

Mobifone is the first company ordering mobile telecom services in Vietnam, after 20 years of development, image of Mobifone has come into the hearts of the Vietnamese people as a strong, class,trustworthy brand name So in recent years in Vietnam, Mobifone has always been voted by the experts and guests:

- Mobifone is the most popular network

- The best customer care network

- The best quality products and service mobile network

- The best mobile network

Market share

In 2012 , proportion is 29% and ranked second after Viettel mobile network

Human resources

With more than 4,500 employees across the country, in which 83.2% have a university degree or higher and the average age is 32 years old, the labor force is considered young, dynamic, honest and always work hard for the survival and development of the company

Corporation Culture

Mobifone puts corporation culture with the goals, mission and vision in line with the company's strategy:

- High quality service

- Politeness and fun

- Transparency and cooperation

- Quick and accurateness

- Dedication and creativity

Corporation culture has infiltrated every employee, employee contact with customers, customer care staff to answering customers employee Every year, VMS performs auditing corporation culture and undertake for every customers of Mobifone

Infrastructure

Until December,31 st ,2012, Mobifone has set up huge facilities with over 20,000 BTS (2G) and 15,000 B button (3G) and the core network has been installed in 64/64 provinces.That meet the needs of 100 million subscribers by the end of 2013 In this and the next time, Mobifone continues to expand and improve radio wave coverage area across the country

It takes Mobifone nearly 1 billion dollars and 20 years to build the infrastructure to service business Could say this is strength and also a huge barrier for other mobile network has been establishing and competing lifetime with Mobifone for last years and the following years

Distribution channels

Distribution system of MobiFone is established on the basis of three main distribution channels including Mobifone stores, direct sales network and agency systems of Mobifone

Products

With more than 10 products and 50 services, products and services MobiFone are very diversified, specific for each type of customer, with specific service packages that are incentives , appropriate and meet the needs of customers:

- Business: Mbusiness Package

- The young: Mfriends, Qteen, Mobi4U

- Family: Mhome, MobiZone

- Students: Qstudent, Mobi4U

Quality management system

The company has developed and applied successfully the ISO 9001:2008 quality management system evaluated and released by TUV Nord Vietnam in 2008

3.1.3 Weaknesses

Outsourcing technical infrastructure is more, less redundancy, unsafe for the network, especially in the backbone transmission network

- As a member of VNPT, therefore, MobiFone encounter problems in the

procedures relating to mechanisms such as: policies, scale and management Especially privatization

- Although the current price of MobiFone is competitive compared to competitors,

or even lower, but low-cost strategy for communication is not good, partly due to the influence of brand strategy As a result, the customer feel the cost still high

Although there is a large network of distributors, retail system but not guarantee,

depends on a large number of agents, intermediate increase costs

3.2 Analyze Environment

3.2.1 External environment

Analyze 6 elements according to model of Michael Porter

Economics

According to the General Statistics Office of Vietnam: The socio-economic situation of our country in 2012 continues to be affected by the instability of the world economy due

to the financial crisis and the unresolved debt crisis in Europe Gross domestic product (GDP) in 2012 is estimated increased by 5.03% with 2011 according to 1994 compared prices Rate of growth this year is lower than 5.89 % rate of growth in 2011, but according to message of the Prime Minister of Vietnam in early 2013 is: " Be resolute to overcome weaknesses, to triumpth over difficulties, continue to control inflation, ensure growth, make country develope sustainably " Thus, keeping the steady growth of the domestic economy will help Mobifone continue to ensure the business development strategy in 2013 in Vietnam

Demographics

Estimating to 2012,Vietnam's population is about 91.52 million people (by https://www.cia.gov/libraly) According to the General Statistics Office of Vietnam, Vietnam has a high percentage of young population from 10-14 years accounting for 8.4%, 15-39 years accounted for 44.9% This trend will not change much in the period

2013 -2016 This is a dynamic youth force, main labor force in society and have income Thus, the younger age groups have the number tantamount 49 million people is still a potential target customers of Mobifone in the coming years

Sociocultural

Period 2011 - 2020 will be considered to achieve high speed in the field of industrialization and globalization in Vietnam Therefore will improve people's lives; labor force will increase and diverse in all sectors; increase productivity and work time etc Along with industrialization, globalization, the demand for using mobile phone communication will increase and so will the communication demands

Technology

With the strong growth of the information technology all over the world, especially mobile phones are continually released from the firms such as Aple, Nokia, Samsung, etc as well as terminal, laptop accessing broadband etc These equipments mostly using mobile networks with third-generation technology (3G), fourth one (4G) will grow strongly and replace the traditional mobile communication services (2G) In addition, with the improvement in technology in recent years, cheap equipment suitable for all income subject, therefor,the types of services basing on 3G and 4G that include voice and non-voice services will grow strongly This is an opportunity for Mobifone in developing markets, products and data services basing on 3G infrastructure, 4G, thereby, increasing market share and revenue, taking up market

Global

In recent years ,Vietnam has been actively integrating with the international scale through taking part in WTO, has been repeatedly calling upon and having many preferential policies of the government in investing FDI, expanding overseas investment

so will bring both opportunities and challenges for the telecommunications sector in Vietnam in general and Mobifone in particular Communicational needs are projected to grow strongly, it is a chance for Mobifone to increase revenue and subscribers

Political/legal situation

Political and legal environment in Vietnam is considered to be stable and improve in line with the trend: Keep political stable; continue to reform administrative formalities to attract investment In the telecommunications sector,Ministry of information and Communications issues strict regulations on the management of the development of mobile network infrastructure, information of mobile phone users The above factors contribute to the stability so that Mobifone can implementate its strategy

3.2.2 Industry enviroment