CAPSTONE PROJECT REPORT STRATEGY OF PENETRATING INTERNATIONAL MARKET OF VIETTEL MILITARY TELECOM CORPORATION -1- CONTENT Item Content Page Abbreviated words 5 FOREWORD 6 Introducing study 6 1 The urgency of the theme 6 2 Research aim of the theme 7 3 Research scope and objects 7 4 Study methods 7 5 Dissertation’s structure 8 Chapter I: OVERVIEW OF THE STRATEGY OF PENETRATING 8 INTERNATIONAL MARKET 1.1 Generalization about strategy of penetrating international market 8 1.1 Necessity of expanding operation of the business to international 8 market 1.2 Notion of strategy of penetrating international market 11 Building and implementing strategy of penetrating international 1.1 Determining markets need to be studied 12 1.2 Analyzing business environment of local country 13 1.3 Analyzing the business’s resources 15 1.4 Selecting the target market – customer groups 16 1.5 Selecting the mode of penetrating international market. 17 Building and implementing marketing - mix policy to penetrate 1.1 Policy for export products 27 1.4 Commercial expansion and promotion policy 30 Some criteria to evaluate outcomes of strategy of penetrating 1.4 32 international market REAL STATE OF STRATEGY OF PENETRATING Chapter II: INTERNATIONAL MARKET OF VIETTEL MILITARY 34 TELECOM CORPORATION 2.1 General introduction about Viettel Military Telecom Corporation 34 2.1 History of foundation and development of corporation 34 2.2 Business areas of corporation 36 2.3 Organizational structure of management mechanism 40 The status of the strategy of accession in the international market 2.1 Review on the process of accession in the international market 43 2.2 Real state of choosing target market – nation – Cambodia 47 2.3 The current situation of selecting the market penetration method 75 2.4 The current marketing situation of Viettel 76 Studying the market-segmenting the customer groups and selecting 2.1 76 the segment of target market 2.5 Policies of business support and implementation 82 Reviewing the strategy on accession in the international market of 2.5 85 Viettel in the previous time -3- 2.6 Strategic orientation of Viettel to 2012 at Cambodian market 88 Strategy of enhancing investment in foreign countries of Viettel in 2.3 Challenges, difficulties and weak points of Metfone 94 2.4 Contents need to be solved in terms of business strategy 98 SOLUTIONS TO COMPLETING THE STRATEGY OF Chapter III: ACCESSION IN INTERNATIONAL MARKET OF 100 VIETTEL 3.2 Groups of solution from enterprises 101 3.1 Training the human resources for intelligent economy 101 3.2 Enhancing the market research 103 3.3 Defining targeted market 103 3.4 Improving the quality of products, services 103 3.5 Building the flexible policy of cost 105 3.6 Building the network of distribution channels 106 Designing the program of promotion and support for business 3.3 Groups of solution from the government 109 Conclusion 111 References 113 -4- ABBREVIATED WORDS 1 AMPS Advanced Mobile Phone System 2 BTS Base transceiver station 3 CDMA Code Division Multiple Access 4 EDGE Enhanced Data Rates for GSM Evolution 5 GSM Global System for Mobile Communications 6 GPRS General Packet Radio Service 7 ISP Internet service provider 8 IXP Internet Exchange Provider 9 IDRC International Development Research Centre 10 ITU International Telecommunication Union 11 IP Internet Protocol 12 VoDSL Voice over Digital Subscriber Line 13 VoIP Voice over Internet Protocol 14 VAS Value-added services 15 W-CDMA Wideband Code Division Multiple Access 16 WLL Wireless local loop 17 WCA 1. Wireless Communications Alliance 18 Wifi Wireless Fidelity 19 Wimax Worldwide Interoperability for Microwave Access 20 PR Public relations 21 PSTN Public switched telephone network 22 3G Third generation technology 23 TC Telecom Combodia -5- FOREWORDS 1. The urgency of the theme Although Vietnam has joined the World Trade Organization (WTO) since December 2006, until late 2008 to early 2009, foreign telecom businesses just actually landed in Vietnam in many forms.
However, this is also urgent stage for domestic telecom businesses to determine particular headings for their own to sustain brand name as well as market share in attractive telecommunications cake in Vietnam. Some Vietnam telecom businesses have found new dealing opportunities for their own by both sustaining domestic market and gradually rising to international market. Up to now, with projects which area being implemented in foreign countries, total investment capital to foreign countries of domestic telecom businesses is up to hundreds of million dollars. Not only stopping in regional market such as Laos, Cambodia, etc, many Vietnamese telecom businesses are seeking business, investment opportunities in European, American, etc countries.
Taking advantage of seeking, catching new opportunities in international market is the way helping businesses consolidate their potential stand firm, overcome the current difficult economic period to step by step determine themselves in international market. Not lying outside that tendency, Viettel Military Telecom Corporation has taken lead in putting Vietnamese telecom industry to integrate into the world by investing in infrastructure and providing telecommunications service in foreign markets. With its effort, Viettel has been considered as Top 100 biggest telecom brand name in the world for the 1st time. This is not only success of Viettel but also of Vietnamese telecommunications industry because with brand name Viettel, Vietnam has become a country being ranked and having name on the world telecommunications map.
However, beside splendid success obtained in the first steps to foreign market, Viettel in particular and telecom business in general also meet many difficulties, challenges, -6- requiring them to have full awareness to find solution to enhance business effectiveness when penetrating international market. Arising from that demand, the theme “Strategy of penetrating international market of Viettel Military Telecom Corporation” was chosen to study in this dissertation by the group. Research aim of the theme On the basis of studying basis matters on strategy of penetrating international market, the dissertation goes to analyze, evaluate and compare with the real state of penetrating foreign market of Viettel, from that takes out achieved results, difficulties and limitations need to be overcome, on that basis, proposing solutions to perfect the strategy of penetrating international market of Viettel military telecom corporation. Research scope and objects This dissertation focuses on studying some argumentative and real matters on the strategy of penetrating international market of Viettel military telecom corporation in the last time.
Specifically, they area the real state of selecting target market, real state of selecting mode of penetrating and of implementing marketing activities. Although has been promoted investment in foreign markets such as Cambodia, Laos, Myanmar, Cuba, North Korea, Venezuela, Viettel has only actually implemented many activities in Cambodia market since 2006. With Laos market, due to meeting many difficulties in asking for license issue, there have not been many activities at present. With other markets, Viettel has initially negotiated, researched and established projects.
Thus, study scale of this theme only focuses the strategy of penetrating Cambodia telecom market of Viettel Corporation. Study methods In the process of implementing, this dissertation used scientific study methods to analyze argument and reality: dialectical materialism method, statistical synthetic method, analysis method from abstract thought to objective reality, from generalization to specification, comparative method, method of setting matters and reasoning -7- logically. In addition, the dissertation also used outlines, tables, diagrams to increase its visuality. Dissertation’s structure Excluding beginning and conclusion part, the dissertation consists of 3 chapters: Chapter I: Overview of the strategy of penetrating international market.
Chapter II: Real state of the strategy of penetrating international market of Viettel. Chapter III: Solutions to perfect strategy of penetrating international market of Viettel. Chapter I OVERVIEW OF THE STRATEGY OF PENETRATING INTERNATIONAL MARKET 1.Generalization about strategy of penetrating international market: 1.Necessity of expanding operation of the business to international market In the market economy, market is considered as a vital matter of each business, thus, businesses always try to have market and obtain it with large market share. In the current economic globalization tendency, if businesses only expect domestic market having limited number of consumers, and appearing more and more domestic and foreign competitors, expectation of obtaining large market share is difficult to reach.
Business can overcome that situation by moving to another business area or researching to improve product, etc, however, the market is still narrow as number of consumers does not increase. Thus, seeking and developing to foreign market is a good solution as market outside national border is very large with various, rich demands. Businesses will have many business opportunities on different areas if they have -8- enough abilities to meet. Penetrating international market does not only have positive influences on businesses but also has benefits for national development.
♣ For businesses: - Enhancing competitive capacity of businesses: Joining international market requires Vietnamese goods to get demand of international market to be production basis. The process of expanding the market requires that we must put production structure in the competitive relation of international market; production must always increase technological level and working capacity, meeting demand of domestic and world market with suitable price. This requirement is very beneficial for development of businesses, forcing them to self- perfect themselves to enhance competitive capacity. - Seeking new customers: Outside-national market is vary large, thus, products of businesses which area being produced currently can meet demand of new customers in different places, different market segments.
Business’s products have become familiar with domestic customers, however, to foreign market, they may be strange and attractive in any way to consumers, from that increasing sale turnover and profits for businesses. - Allowing businesses to lengthen product’s life cycle: Business’s products which area consumed in the country are in the ripe stage when coming on sale in foreign markets can start a new living cycle again, lengthening existing time of products in the international market. - Reducing production cost: Business when penetrating new market, they can take advantage of machine capacity, experiences, produce with large scale, from that they will save production cost on each product unit and enhance competition competence through that cost reduction. - Stretching market to reduce risk in business: -9- Due to limited scale of domestic market, increasing number of competitors, etc, causing difficulties for dealing activities of businesses.
Thus, expanding to foreign market allows businesses to take advantage of preferences in regulations of other countries in terms of dealing commodity of businesses, reduce competitive intensity, etc and from that, reduce risk in business. ♣ For the national development: - Taking advantage of national advantages compared with other nations to rapidly develop the economy, enhancing position of the country in the international market: In international commerce exchange, according to theory on comparison advantage, all joining parties will have benefits, right with countries having lower working capacity. These countries, if knowing to specialize in most beneficial production fields with lowest opportunity cost, in any condition, they can save cost thanks to foreign trade. In the context of globalization and exchange expansion between economies of each country, each region, there will be more opportunities for Vietnamese products to join more deeply in the world market, and at the same time putting businesses in front of many challenges.
We need to effectively exploit comparison advantages of the country in joining in international work allocation, attracting much capital, taking advantage of advanced technologies, management experiences of other countries to hasten industrialization, modernization progress of the country. In addition, specialized products will have high quality, when penetrating foreign market will make contribution to enhancing national position, prestige compared with other nations through the world. - Penetrating foreign market has great meaning in promoting domestic production and expanding consumption market: -10- Export has great meaning to countries having lower income compared with the region and the world. In developing and under developing countries, due to low average income, purchasing power is low, making narrow domestic market lack of ability to cover production cost for commodities in accordance with international standard.
This inhibits domestic production. Penetrating foreign market is a solution for these countries when they know to take advantage of high income, various taste of foreign consumers to expand demand for goods, and from that, enhancing production, expanding market. Promoting export, strengthening trade exchange are indispensable headings for a country to develop its economy.