CAPSTONE PROJECT REPORT STRATEGY FOR ENHANCING COMPETITIVENESS OF local MOBILE SERVICE OF VIETTEL TELECOM VIETTEL GROUP IN THE PERIOD 2010 – 2015 GaMBA01.N03-Group10 CAPSTONE PROJECT REPORT Class: GaMBA01.N03 STRATEGY FOR ENHANCING COMPETITIVENESS OF LOCAL MOBILE SERVICE OF VIETTEL TELECOM VIETTEL GROUP IN THE PERIOD 2010 - 2015 Member of the Group 10: 1. HUONG PHUNG THI LAN 2. NAM NGUYEN HONG 3. ANH VU HOANG GaMBA01.N03-Group10 TABLE OF CONTENTS FOREWORD.
Necessity and significance of planning the strategy for enhancing competitiveness of mobile service of VIETTEL TELECOM - Viettel Group. Objective of research. Object and scope of research. Method of research.
Layout and structure of the topic.7 CHAPTER 1: BASIC THEORETICAL ISSUES ON THE BUSINESS STRATEGY OF THE ENTERPRISE. Overview on Business Strategy. Business strategy types. Effect of the establishment of business strategy.
Requirements on the business strategy. Bases for business strategy. Business strategy establishment procedure. Strategy establishment procedure is carried out in the following steps: 12 1.
External environment analysis (Macro). Sector environmental analysis (micro). Analysis of environment inside the enterprise. Analysis of international environment.
Establishment and selection of business strategy. Selection of optimal strategy. Combination of general strategies.38 CHAPTER 2: VIETTEL MOBILE SERVICE COMPETITION STRATEGY OVER THE PAST TIME. General introduction about Viettel Telecom.
Formation and development. Issues related to the mobile service of Viettel network. Main products and services. Some results achieved and the overall assessment of Viettel mobile network.
Strategic analysis of recent competition in Viettel Telecom Company. Business strategy of the Company:. Analyzing the external environment. The pressure for mobile services:.
Reviews and evaluation of competitive strategy Viettel Telecom Company.76 CHAPTER 3: BUILDING COMPETITIVE STRATEGY Viettel Mobile Services PERIOD 2010 - 2015. Viewpoint and strategic objectives. Orientation in development of Viettel Group period 2010 - 2015:. Views and strategic objectives of the Viettel Telecom company.
The strategic objective of Viettel Telecom Company. Analyze the competitive environment of current mobile services. Analyzing the external environment. Internal Environment analysis.
Targeted strategies for the 2010 – 2015 period for Viettel Telecommunications Company. Forecasts on cell phone market by the year 2015. Analysis and selection of strategies made by Viettel Telecommunications Company.N03-Group10 ACKNOWLEDGEMENT We wish to express our sincere gratitude to all professors of Griggs University, especially Dr. Sean Mc Gough and PhD.
Ngo Kim Thanh for providing us with invaluable guidance and suggestion to accomplish our Capstone Project Report. We are extremely thankful to the Management Board of Viettel Telecom – Viettel Group for providing us with valuable information and guidance during our preparation of this Capstone Project Report. We are also thankful to all others who helped us directly or indirectly towards the completion of our Capstone Project Report. Huong Phung Thi Lan Nam Nguyen Hong Hoang Tran Anh Vu Hoang 1 GaMBA01.N03-Group10 List of Abbreviations ARPU Average Revenue Per User GSM Global System for Mobile Communication GPRS General Packet Radio Service EDGE Enhanced Data Rate for Global Evolution CDMA Code Division Multiple Access NGN Next Generation Network RFID Radio Frequency Identification MG Media Gateway ATM Asynchronous Transfer Mode WDM Wavelength Division Multiplexing MPLS Multi-Protocol Label Switching W-CDMA Wideband Code Division Multiple Access PSTN Public Service Telephone Network xDSL Digital Subscriber Line 2 GaMBA01.N03-Group10 List of figures and charts Figure 1 : Strategic planning steps 13 Figure 2.
Factors affecting macro environment 15 Figure 3: Model of 5 competition forces of M. Porter 22 Figure 4: Model of value chain 24 Figure 5: Process of identifying sustainable competitive advantage 26 Table 1: Quantitative matrix by GREAT criteria 37 Table 2: Implementation of key targets in 2009 47 – 48 Table 3: Revenue structure – 46 48 Table 4: Details of subscriber, revenue and capacity 49 Table 5: Average revenue per user (ARPU) 50 Table 6: Local market share 51 Table 7: Mobile service operators before Viettel 58 Table 8: Market share of operators 92 Table 9: SWOT analysis of the Viettel business environment 103-106 Table 10: Comparision according to GREAT model to select the 109 strategy Table 11: GREAT model to select strategies 110 Table 12: Itinerary to carry out the strategies 117 Table 13: The norm set on the measurement of the network quality 118 Table 14: The norm set on the measurement of the customer care 119 quality Chart 1: Market share of mobile phone networks 51 Chart 2: Revenue 53 3 GaMBA01.N03-Group10 Chart 3: Profit 54 Chart 4: Yearly investment 54 Chart 5: Human resources 55 Chart 6: Number of BTS signal station until the end of 2009 65 Chart 7: Market share chart of all cellular properties in 2009 92 Chart 8: Mobile market growth rate forecasting 107 4 GaMBA01. Necessity and significance of planning the strategy for enhancing competitiveness of mobile service of VIETTEL TELECOM - Viettel Group in Vietnam Vietnam Telecom market is increasingly developed in terms of scope, form, quality, structure and especially, it has removed the monopoly in telecom of VNPT. Over the past years, although growth rate of Vietnam telecom - information technology has been high compared with other countries in the world, the appearance of new domestic and foreign operators has posed increasingly strong competition pressure.
Starting from the inevitable requirement in the opening, international economic integration, in accordance with regulations of the World Trade Organization (WTO), the Government allows many telecom and information technology operators inside and outside the country to invest and expand their operation in Vietnam market. This requires each telecom enterprise to work out suitable solutions to develop, enhance competitiveness, master the domestic market and reach out to the international market. Specifically, the formation of big telecom groups with multipurpose operation, adaptability to the quick changes in the modern world has become a necessary demand and inevitable trend. VIETTEL TELECOM - Viettel Group is a State-owned enterprise directly under the Ministry of National Defense.
Although it has just joined the telecom service market, with the strategy and way of doing of the soldiers, the company has gained outstanding successes with many important results, contributed great revenue to the sector and the Ministry of National Defense. Over the past years, the trademark Viettel has emerged as a phenomenon in telecom not only in Vietnam but also in foreign countries. This is a typical case in which an enterprise is established after many other enterprises but it has tried to take the lead in the domestic market and continue to invest abroad.N03-Group10 At present, staff of Viettel Group is gathering all efforts, bringing into full play sense of solidarity, activeness and creativeness in succeeding its strategic objective, i. creating sustainable development of multi-service network in which mobile phone service is prevailing, bandwidth is the foundation; promoting network development all over the country with large capacity, high stability and sustainability, becoming a leading post - telecommunication enterprise in Vietnam; specifically, trying to build up the largest mobile network in Vietnam; expanding investment abroad to become an enterprise with trademark in the world.
To contribute small part to the establishment of a development strategy in accordance with specific features of our enterprise in the period 2010 - 2015, our group has studied basic theories on the business strategy; analyzed existing operation in terms of mobile service competition strategy of VIETTEL TELECOM, thereby establishing a strategy for enhancing competitiveness of mobile service to create the sustainable development of multi-service network in which mobile phone service is the strength of the Company as well as the Group. For the above reasons and in the group, there is a member currently working at VIETTEL TELECOM, we have decided to choose the topic "Strategy for enhancing mobile service competitiveness of VIETTEL TELECOM - Viettel Group in the period 2010 – 2015 in Vietnam" 2. Objective of research. The objective of research in the thesis is the mobile service competition strategy of VIETTEL TELECOM - Viettel Group in the period 2010 – 2015 in vietnam.
Through analyzing competitive environment, determine strength, weakness, opportunity and challenge (SWOT) for VIETTEL TELECOM and propose some strategic solutions to enhance standing and competitiveness of mobile service for VIETTEL TELECOM in the country. Object and scope of research. - Specific object: mobile service of VIETTEL TELECOM in Vietnam 6 GaMBA01.N03-Group10 - Scope: Throughout the country. Method of research To finish this thesis, our research group has adopted various research methods such as the statistics and analysis method, the specialist consultation method, the observation and interview method, quantitative and qualitative research method.
Qualitative methods include specialist method, vendor consultation method. Quantitative methods include forecast on the demand for mobile service use, growth rate of subscribers. The thesis also used figures from Viettel Group; Ministry of Information and Communications; General Office of Statistics, online newspapers as well as did primary researches to obtain figures for the thesis with focus on related figures. * Limitation of the research: Establishment and development time of Viettel is not long though it has gained many prominent successes and this experience has been generalized into applicable principles in business.
However, development time is not long enough to profoundly and comprehensively experience these principles to affirm its accuracy, comprehensiveness and sustainability. Layout and structure of the topic - Apart from the foreword, conclusion, table of contents, list of references, the thesis is divided into 3 chapters as follows: Chapter 1: Basic theoretical issues on Strategic Administration Chapter 2: Viettel mobile phone service competition strategyin Vietnam over the past time Chapter 3: Establishment of Viettel mobile phone service competition strategy in the period 2010-2015 in Vietnam 7 GaMBA01.N03-Group10 CHAPTER 1 BASIC THEORETICAL ISSUES ON THE BUSINESS STRATEGY OF THE ENTERPRISE 1. Overview on Business Strategy 1. Concept Due to many different approaches, there are different viewpoints on the strategy.
According to Alfred Chandler: "Strategy includes long-term basic objectives of an organization, concurrently selection way or procedure of action, allocation of necessary resources to carry out such objectives". According to William J'. Glueck: "Strategy is a unified, comprehensive and coordinated plan, designed to make sure that basic objectives of the organization will be fulfilled". According to Fred R.
David: "Strategy is means to reach long-term objectives. Business strategy may include geographic development, activity diversification, ownership, product development, market penetration, expenditure reduction, liquidation and joint venture". According to Michael E. Porter, "Strategy is an art of building up competitive advantages" or "Strategy is a wide range of complex activities in order to mobilize resources that an organization may have to achieve a certain purpose".
(GaMBA, 2009, Strategic administration syllabus, Strategy definition, p. According to Liam Fahey and Rober M. Randall, strategy can be best understood under applicable specific activity forms such as all activities related to the procedure or customs, human resources, material assets, technology and use of strength information, competitiveness, capacity and such resource is what about strategy. In terms of history and basic significance, Strategic Administration is to help organizations create better strategies through adopting strategic choices in a more methodical, more adequate and more effective manner.
In other words, strategy is 8 GaMBA01.N03-Group10 where the enterprise tries to reach in the long term (direction). Therefore, the Enterprise must face with the following questions: what market does it have to compete and what type of activities are done by the enterprise in such market (market, scope)?; how should be done to do better than competitors in the such market (advantage)?; what resources (skill, assets, finance, relationships, technical capacity, equipment) should be obtained to compete (resources)?; what factors from the external environment affect the competitiveness of the enterprise (environment)?; what values and expectations are needed by the competent persons inside and outside the enterprise (contributors)?. Accordingly, core principle of the Strategic Administration still lies in the fact that the enterprises should plan strategies to seize opportunities and avoid or reduce impacts caused by the external environment. Despite various viewpoints, all of them agree on one point in the content: business strategy reflects activities of the business unit including the process of putting forth objectives and measures, means used to achieve such objectives - this is quite suitable for the definition of Strategy.