GRIGGS UNIVERSITY GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM CAPSTONE PROJECT REPORT FORMULATING 3G SERVICE BUSINESS STRATEGY FOR VIETNAM TELECOM SERVICES COMPANY– VINAPHONE IN 2021 – 2035 PERIOD 2 TABLE OF CONTENTS COMMITMENT ACKNOWLEDGEMENT LIST OF TABLES IN THE REPORT LIST OF DIAGRAM AND FIGURES IN THE REPORT ABBRAVIATIONS INTRODUCTION. The necessity of the study. Objective of the study. Methodology of the study.1 CHAPTER I: THEORETICAL BRACKGROUND ON FORMULATING BUSINESS STRATEGY.
Concepts of strategy and business strategy:.1 Characteristics of business strategy.2 Role of business strategy in enterprises.2 Process of formulating business strategies of enterprises.1 Determining mission and goals of enterprises.2 External environment evaluation.3 Analyzing the internal of enterprises :.4 Formulating strategic alternatives:.5 Analyzing and selecting strategy.15 CHAPTER II: FORMULATING 3G SERVICE BUSINESS STRATEGY FOR VIETNAM TELECOM SERVICES COMPANY – VINAPHONE.1 Overview of Vietnam Telecom Services Company - Vinaphone. History of establishment and development. Major business lines.4 Mottos of Vietnam Telecom Services Company - Vinaphone (vision and mission).2 Analyzing 3G service business environment of Vinaphone.1 Analyzing macro environment (PEST).2 Analyzing 5 Five Forces Model.3 Analyzing strength and weaknesses of 3G service supplied by Vinaphone.1 Material and technological bases:.2 Analyzing human resources.3 Analyzing financial capacity.5 SWOT Matrix for 3G service of Vinaphone Company.1 External Factor Evaluation (EFE) Matrix:.2 Internal Factor Evaluation (IFE) Matrix:.56 CHAPTER III: SELECTING STRATEGY AND SOLUTIONS FOR TRADING 3G SERVICE OF VIETNAM TELECOM SERVICES COMPANY - VINAPHONE IN 2010 – 1015 PERIOD.1 Development orientation, vision and mission of the Company in the coming period.1 Value of Vinaphone Brand:.1 Bases for formulating strategy:.2 SWOT Matrix and combined strategies:.1 Market development strategy.2 Products and services.74 CONCLUSION APPENDIX REFERENCES COMMITMENT Group 5.M102009 would like to commit this Capstone Project Report is the real research project of the group and conducted on the basis of studied theories, learned knowledge, survey of the real situation of Vietnam Telecom Services Company – Vinaphone. All the data, mathematical models and results in the Capstone Project Report are honest.
All strategies recommended are the results of studies and conclusions of the whole group and have not been publicized under any forms before being protected at the Council and being recognized by “GRIGGS - MBA Dissertation Evaluation Council”. Once again, the group would like to assert the authenticity of the above commitment. ACKNOWLEDGEMENT We would like to express our gratitude to lecturers of MBA Program - GRIGGS University for imparting valuable knowledge in MBA Program and their experience for us to smoothly complete this Capstone Project Report. We are also grateful for the cooperation of cadres and staff in VinaPhone Telecom Service Center – Vinaphone along with our partners for enthusiastically exchanging, contributing ideas and providing materials.
LIST OF DIAGRAM AND FIGURES IN THE REPORT Diagram 1.1 Process of strategic management.2 Factors of macro-environment.4: Five Forces Model by M.5: Value chain model.1 Organizational structure of Vinaphone.2: Organizational structure of regional Vinaphone Centers.11: Current distribution system of Vinaphone.10: Growth of revenue for value added services in 2006 – 2010 period40 Figure 2.3 Age structure of population in Vietnam (statistics.5 Development of xDSL broadband subscribers for the first 5 months of 2011. Forecast on the development of global 3G subscribers by technology in 2009-2014 period.12: The number of real mobile subscribers as of December 2010.13: The number of customers use 3G, 2 / 2010.44 LIST OF TABLES IN THE REPORT Table 1.6: External factor evaluation matrix.7: Internal Factor Evaluation Matrix – IFE Matrix:.8: Internal-External Matrix - I.7: Forms of internet access in Vietnam.14: Statistics of laborers and labor qualification of Vinaphone Company in 2006 – 2009 period.15: The number of staffs trained from 2006 to the first half of 2010.16 Analysis of financial capacity of Vinaphone Company in.17: Capital sources of Vinaphone Company in 2006 – 2010 period.19: External Factor Evaluation (EFE) Matrix of Vinaphone Company: 54 Table 2.20: Internal Factor Evaluation (IFE) Matrix of Vinaphone Company:.E) Matrix of Vinaphone Company:.1 SWOT Matrix and combined solutions.2: Quantitative Strategic Planning Matrix - QSPM of market.3 Quantitative Strategic Planning Matrix - QSPM of products.4: Quantitative Strategic Planning Matrix - QSPM of human resources67 Table 3.5: Quantitative Strategic Planning Matrix - QSPM of science and technology.6: Forecast of service users based on location since the first implementation:. 75 ABBRAVIATIONS VNPT : Vietnam Posts and Telecommunications Group Vinaphone : Vietnam Telecom Services Company – Vinaphone 3G : Third-generation technology 2G : General Packet Radio Service W-CDMA : Wideband Code Division Multiple Access GPRS : General Packet Radio Service VAS : Value added services ADSL : Asymmetric Digital Subscriber Line GSM : Global System for Mobile Communications MIC : Ministry of Information and Communications IF : Information Technology PEST : Political, Economic, Social and Technological 1 INTRODUCTION 1. The necessity of the study From 2009 with the event that the Ministry of Information and Communications officially licensed the exploitation of 3G network, to date, there has been 04 networks deploying the installation and trading of services on 3G network including Vinaphone, Mobifone, Viettel and EVN Telecom.
Of which, Vinaphone is the leading company in deploying 3G services to users. In the context that 2G market is coming close to break-even point, competition has become tougher and tougher, revenue and profit grow weakly, 3G is really a new wind providing telecommunication companies to have many alternatives to boost their business and development. However, after two years of deploying the service, 3G service has not reached the expectation of Vinaphone. Therefore, to deploy 3G service well, Vinaphone needs to formulate a sound business strategy and suitable with its capacity as well the characteristics of current market in Vietnam.
With the expectation of applying the learned knowledge into the reality in the place where a member of the group is working at, the group has selected the topic “Formulating 3G business strategy for Vietnam Telecom Services Company – Vinaphone in 2011-2015 period” as the topic for the study of the group. Objective of the study - Formulating 3G service business strategy for Vietnam Telecom Services Company – Vinaphone in 2011-2015 period. Methodology of the study To solve above problem, the report mainly uses qualitative analysis (studying and analyzing real situation of Vietnam Telecom Services Company – Vinaphone). Using statistics, information and data of the industry; using secondary data on strategies and previous researches and reports of Vietnam Telecom Services Company – 2 Vinaphone.
Structure of the report The report includes: Introduction Chapter I: Theoretical background on formulating business strategy The chapter mentions the theoretical background of strategy and business strategy such as concept, characteristic and role of business stagey, analyses on external environment of enterprises in formulating business strategy: 6 factors of external environment and Five Forces Model. Some models used in analyzing the internal of enterprises and formulating business strategy: PEST Model, value chain model, sustainable competitive advantages and combined model of internal and external environment analysis (SWOT). Chapter II: Formulating 3G service business strategy of Vietnam Telecom Services Company – Vinaphone. Overview of Vietnam Telecom Services Company – Vinaphone.
Applying models to analyze internal and external environment of the enterprise. Applying SWOT model to evaluate and find out strengths, weaknesses, opportunities and threats of the Company. Chapter III: Recommendation on 3G service business strategy for Vinaphone in 2011-2015 period and some solutions for implementation Recommendation on 3G service business strategy for Vinaphone in 2011-2015 period and some solutions to successfully implement the selected strategy. Conclusion References; Appendix 3 CHAPTER I: THEORETICAL BRACKGROUND ON FORMULATING BUSINESS STRATEGY 1.
Concepts of strategy and business strategy: Strategy is an overall action program determining the long-term and basic goals of an enterprise, selecting operating orientations and management policies on collecting, using and organizing resources to achieve specific goals, strengthen the organization in the most effective way and gain sustainable advantages compared to its competitors. The core of a strategy is the method of mobilizing resources to realize goals. That is the optimal alternatives mobilized to implement the strategy. It is the method of catching opportunities, mobilizing resources to satisfy customers’ demand, at the same time continuing to develop resources of the enterprise for the future to reach a high competitive position.
Strategic management is the process of implementing “strategies” – that are the answers for above questions. In fact, the full process of strategic management includes 3 parts described in the following diagram: Diagram 1.1 Process of strategic management - Phân tich chien luoc: Analyzing strategy - Lua chon chien luoc: Selecting strategy 4 - Thuc hien chien luoc: Implementing strategy Analyzing strategy Analyzing strategy is analyzing strength and position of an enterprise and important external factors that can have influence on that position. The process of analyzing strategy can be supported by some tools including PEST analysis, five forces analysis, market segmentation, analysis of competitors, SWOT analysis, etc. Selecting strategy This process relates to the clear understanding of the essence of expectations of capital contributors (“basic principles”) to determinate the options of strategies to evaluate and select suitable options of strategies.
Implementing strategy This is often the most difficult part. When a strategy is analyzed and selected, the following task is transferring it into actions in the organization.vn - AuWa | According to Doanhnhan.1Characteristics of business strategy - Long-term orientation: Business strategy sets out goals and determines the development trend of an organization in the long run (3 years, 5 years to orient the operation of the enterprise in a volatile business environment). - Objective: Business strategy often well determines basic objectives and business orientations of each enterprise in each period and policies to well implement the set goals. - Suitability: This requires enterprises to well evaluate their business and production situation when formulating business strategy.
At the same time, they also need to regularly check and revise their strategies to match the changes of the business environment. - Continuity: Business strategy must be reflected during the process of formulating, implementing, checking, valuating and revising strategy. - Nowadays, business strategy cannot help being separated from competition 5 because business strategy needs to ensure the competitive capacity of an enterprise in the market. In the current globalization process, business activities over the world have been connected, generating fierce competition among enterprises in a sector or among sectors in the economy.2 Role of business strategy in enterprises In the market economy with tough competition, an enterprise needs to have a business strategy if it wants to succeed.
It means that enterprises’ administrators have to catch the changing market trends to find out the keys to success, know how to exploit the strengths of their enterprises, be aware of enterprises’ weaknesses, understand competitors, customers’ expectations and know how to approach to the market to make creative decisions to deploy more or reduce operations of enterprises at certain period and location. The above efforts aim at working out an optimal strategy and have specific influence on the business strategy’s basic functions, namely: - Providing enterprises with a specific and effective business orientation that is the guideline for all functional activities of enterprises, helping enterprises promote their competitive advantages, enhance their strengths and expand market share. - Helping enterprises minimize risks and creating conditions for enterprises to develop sustainably and ceaselessly.3 Types of business strategies 1. Corporate-level strategies: relate to the overall goal and scale of enterprises to meet the expectation of their stakeholders.
Any changes in the structure of business lines of enterprises can lead to the adjustments of corporate-level strategies. Competitive strategies: regard how enterprises compete in a specific business line or sector. They relate to decisions on strategies on selecting products, meeting customers’ demand, gaining competitive advantages compared to their competitors, exploiting and creating new opportunities, etc. Functional-level strategies: are goal-oriented decisions and actions formed in the short-term of different functional departments of an organization.
They relate to the fact that how departments in the enterprise are organized to implement strategic orientations at corporate and departmental levels in the enterprise. Therefore, functional strategies will focus on resources, processes and human resources.2 Process of formulating business strategies of enterprises 1.