Luận văn thạc sĩ quản trị kinh doanh quốc tế MBA (211)

2011 2011 || GLO GLO BAL BAL ADV ADV ANC ANC ED ED MBA MBA PRO PRO GRA GRA M M (CLA (CLA SS SS GaM GaM BA BA 01.X0 01.X0 110)| 110)| GRO GRO UP UP No.: No.: 11 11 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn CAPSTONE PROJECT REPORT THE DEVELOPMENT STRATEGY OF EXPRESS SERVICE OF VIETTEL POST., JSC TO 2015 Nguyen Ngoc Anh Hoang Trong Nghia Pham Vu Hung Vu Quang Vinh GaMBA01.X0110 HANOI 2011 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn GRIGGS UNIVERSITY GLOBAL ADVANCED MBA PROGRAM CAPSTONE PROJECT REPORT THE DEVELOPMENT STRATEGY OF EXPRESS SERVICE OF VIETTEL POST., JSC TO 2015 Group No 11 – Class GAMBA01.X0110 Nguyen Ngoc Anh Hoang Trong Nghia Pham Vu Hung Vu Quang Vinh HA NOI 2011 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn TABLE OF CONTENTS TABLE OF CONTENTS .3 GENERAL INTRODUCTION 1.Context and the topic’s importance .1 The objective of research .2 The methodology of research .2 CHAPTER I: THEORETICAL BASIS OF BUILDING THE BUSINESS STRATEGY I DEFINITION: Viewpoint about the strategy Features of strategy The types of business strategy II TOOLS OF ANALYSING BUSINESS STRATEGY 1.Tool of strategic analysis : .5 1.1 S W O T Analysis: 1.2 Five forces competitive model – Michael Porter: 1.3 P.E.S.T Model 1.4 Product life circle analysis Choosing the analysis tools III PROCESS OF BUILDING BUSINESS STRATEGY: 10 1.Clarify the vision and objectives of business 10 1.1.Mission statement 10 1.2.Goals of strategy 10 2.Analysing the business environment of enterprise 11 Analysing the internal enterprise 12 3.1 Analysis of the value chain of enterprise .12 3.2 Financial analysis 12 3.3 Human resource analysis .13 Product analysis 13 Choosing the business strategy 14 CHAPTER II: THE DEVELOPMENT STRATEGY OF EXPRESS SERVICE OF VIETTEL POST., JSC TO 2015 15 I THE PROFILE OF THE COMPANY 15 1.The history and development process 15 2.The STRATEGY, mission, principle and target of Viettel Post JSC., 17 II BUSINESS ENVIRONMENT ANALYSIS OF VIETTEL 17 1.External environment 17 1.1.Macro environment 17 1.2 Sector environment analysis 20 1.3 Porter’s five force analysis 20 1.4 Opportunities and threats of Viettel .24 Internal environment Analysis 25 2.1 Basic resources of Viettel Post 25 2.2 Financial Analysis .25 2.3 Personnel position .30 2.4 Main product of Viettel Post 31 2.5 Technology equipment 31 Strength and weakness of Viettel Post 32 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn 3.1 Strength .32 3.2 Weakness .32 Product life cycle analysis 32 The strategy improving express services of Viettel Post 33 5.1 STRATEGY through SWOT matrix 33 5.2 STRATEGY through product life cycle analysis 35 CHAPTER III: TARGET OF THE STATERGY AND SOLUTIONS .36 I SELECT STRATEGY .36 Strategy .36 Target 36 II STRATEGIC SOLUTIONS 36 Investment and finance strategy 36 1.1 Finance strategy 36 1.2 Investment strategy 37 Marketing strategy 38 2.1 Product strategy 38 2.2 Pricing strategy 39 2.3 Distribution 39 2.4 Customer care strategy 40 2.5 Human Strategy 40 2.6 Improvement process strategy .41 2.7 Strategy to strengthen infrastructure 41 III IMPLEMENTATION SCHEMES 41 Develop strategic roadmap to 2015 41 Conclusion 42 References 42 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn GENERAL INTRODUCTION Context and the topic’s importance In 2011, the economic recession is shown more and more clearly in Vietnam: “The average CPI of the six months has increased 16.03% over the same period last year, nearly three times versus the GDP growth rate at the same period, estimated about 5.6% Compared with base period – 2009, it has increased approximately 32%, which indicates that how fast the purchasing power of currency has lost within two years’’; the lending rates of commercial banks has risen popularly up to 24% per year The exchange rate between Vietnam dong and U.S dollar increased continuously and now is up to 20,824 VND/$US Vietnam holds the highest ICOR in the region: 6,15 in 2007 – 2008, heavy industry is mainly on processing with imported materials, backward techniques require a huge number of employee and more fuel As a result, business activities fall into moderation, stop operating becomes popular, industrial zones also work perfunctory, occupancy status of each other capital increases Fitch forecasts that bad debt of Vietnamese bank makes up 13% of total loans If based on the reflection of the banks, bad debt is possibly over 100,000 billion dong, about $US billions Business is the target market of Viettel Post joint stock company So, the company is really sensitive to macroeconomic factors and the overall situation of enterprises in the whole country The high price in gasoline, electricity leads to sharp increase in inputs, especially the increase in gas price makes aviation price rise from 23-25% The enterprises in the transport and delivery sector are affected directly and severely With the development of information technology and intergration trend, Vietnam’s post service is rapidly integrating into the development trend of world’s post service Express delivery service accounts for 80% of revenue and generates over 90% of the profits of Viettel GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn After analyzing this context, it can be shown that it is really necessary for Viettel to analyse and draw out the proper strategy for the development of express delivery service The objective of research Find out the right strategy to develop the express delivery product until 2015 The methodology of research Applying the strategic management process to find a reasonable strategy GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn CHAPTER I: THEORETICAL BASIS OF BUILDING THE BUSINESS STRATEGY I DEFINITION: Viewpoint about the strategy - To analyse the strategy, giving the definition of “what is Strategy” is necessary Actually, there are many good definitions about the strategy, the differences among these definitions is come from authors’s different viewpoints - In 1962 Alfred Chandler - one of the initiators and developers the theory of strategic management definition: “The determination of basic long- term goals and objectives of an enterprise and adoption of causes of actions and the allocation resources for carrying out these goals” - In 1980, Quinn defined strategy as : “ A strategy is the pattern or plan that integrates an organization’s major goals, policies and action sequences into a cohesive whole A well formulated strategy helps to marshal and allocate an organization’s resources into a unique and viable posture based on its relative internal competencies and shortcomings, anticipated changes in the environment and contingent moves by intelligent opponents" - In 1996, Michael Porter states “It means deliberately choosing a different set of activities to deliver a unique mix of value ”: "Strategy is creating a harmony between the activities of a company The success of the strategy is mainly based on the conduct of a good many things and combine them together the core of strategy is choosing what not to " - In 1999, Gerry Johnson and Kevan Scholes states: "Strategy is the direction and scope of an organization in the long term, to gain an advantage for the organization through the configuration of its resources in the context of the changing environment, to meet demand and satisfy the expectations of stakeholders" Henry Mintzberg summaries definitions of strategy with Ps: • [P]lan: Some sort of consciously intended course of action, a guideline to deal with a situation GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn • [P]attern: A pattern in a stream of actions Strategy is consistency in behavior, whether or not intended • [P]osition: Specifically a means of locating an organization in an "environment" [P]erspective: Strategy in this respect is to the organization what personality is to the individual • [P]loy: As plan, just a specific maneuvers intended to outwit an opponent or competitor Business strategy help making the differentiation of the business’s position in the its correlation with competitors Business strategy is the overall commitments and actions that help business gain the competitive advantages by taking the advantages from the core competencies in making the specific product in market Features of strategy - Business strategy clearly defined the basic objectives and business direction in each stage - The strategic orientation help the business sustain in continuous development and changeable business environment - Business strategy help business to ensure the maximum mobilization and the best combination for utilizing the business resources in recent and future, and it also help to promote the advantages and seize the opportunities to gain the competitive advantages - The business strategy of business is reflected throughout the process continuously - The business strategy always has the thought of offensiveness and winning in the business marketplace - The business strategy is often built in a long time (3,5,10 years) The types of business strategy Business strategy is based on the product life circle: • Strategy in the Introduction stage • Strategy in the Growth stage GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn • Strategy in the Mutation stage • Strategy in the Maturity stage • Strategy in the Decline stage basic strategies : • Cost leadership strategy: 'Cost advantage' is the focus Factories are built and maintained, labor is recruited and trained to deliver the lowest possible costs of production but provide the product with acceptable features And these cost must be at least equivalent in comparison with its competitors • Differentiation strategy: A series of actions needed to produce goods and services (at a price that is acceptable) that the customer consider that business product is different and this difference is important for them • Focus strategy ( market niche) : A series of actions needed to produce goods and services to serve the need of a specific competitive market segment Combining the cost leadership/differentiate strategy: A company that being successful in combining the these strategies will get the better position II TOOLS OF ANALYSING BUSINESS STRATEGY Tool of strategic analysis : 1.1 S W O T Analysis: o [S]trengths: Internal o [W]eaknesses: Internal o [O]pportunities: External o [T]hreats: External When strategy is being built, it needs to be suitable with − Strengths and Weaknesses of this business − The best Opportunities with market and the Threats toward business development GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn 1.2 Five forces competitive model – Michael Porter: In 1979, when searching the elements making the business profit, Michael Porter – the leading authority on company strategy and the competitiveness of the world, has modeling the business and state that the competitive level in market of any industry is affected by competitive forces: The power of supplier The threats of substitute products Potential of new entrants into industry The power of customer Competition in the industry This model is a useful and effective tool to search the profit source More important, it provides business strategies for business to keep or increase its profit Businesses use this model to analyze whether they should enter a new market, or making an action in any market However, the recent business markets are changeable, this model is also applied in searching a specific industry that Businesses often use this model to analyze whether they should join a certain market, or operate in a market that is not However, because today's business environment more "dynamic", so this model is applied to search in a certain sector of the region should be improved to generate more profit Government agencies, such as the Commission antitrust and mergers in Britain, or the antitrust division and the U.S Justice Department, also used this model to analyze whether there is any company benefits the public or not 1.3 P.E.S.T Model While Porter’s five forces model is used for analyzing the elements in micro environment, P.E.S.T model is used for analyzing the elements in macro environment These elements are: • [P]olitical • [E]conomics • [S]ciocultrural • [T]echnological GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn o The net profit/equity ratio got 19.58% (compared 11.08% in 2008 and 16.5% in 2009), which was quite positive In conclusion: Viettel Post is on track to develop strongly its business, the analysis shows that the financial situation of the company is good and efficiency 2.2.2 The expenditure structure of express services of Viettel Post Cost of express services as detail: Items Cost/ Turnover Cost/ turnover structure by aviation Air expense Fuel expense Salary Depreciation Material expense Promotion expense Other expense Profit 64.20% 3.36% 16.10% 0.40% 2.33% 9.50% 4.10% 0.01% 100.00% Sum Cost/ turnover structure through international channels Commision fee 62.80% Fuel expense 3.02% Salary 16.50% Depreciation 0.40% Material expense 2.33% Promotion expense 9.50% Other expense 4.10% Profit 1.35% Sum 100.00% Cost/ turnover structure through Viettel Post Expense for hiring transport 1.80% Fuel expense 24.52% Salary 29.50% Depreciation 2.80% Material expense 3.63% Promotion expense 9.50% Other expense 8.20% Profit 21.85% Sum 100.00% Turnover structure of Viettel 29 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Services Revenue from Viettel Post Revenue from aviation Revenue from monopoly chaise Percentage Sum 45.80% 28.60% 25.60% 100.00% a Cost/ turnover - Express services through the airlines and international Channels: leasing costs accounted for very high proportion (64.2% and 62.8%), while its profit were very low (0.01% and 1.35%) Therefore, this type of service was not stimulated to extend its activities because it is difficult to control outsource expenses; the same time, Viettel Post also is planning the investment and finance strategy reduce the internal cost such as salary expenses and other expenditure - Express services through Viettel Post network: outsourcing expense was (1.8%), when profit was high (21.85%) Thus, the growth of express services of this line is encouraged, where Viettel Post can control costs and actively its business - Salaries expense ratio remained highly in the range of services So, Viettel should implement the investment, finance and personnel strategies to reduce internal cost, and to increase labor productivity reducing the total time of delivery b Revenue of express service/ turnover - Revenue of express services through the local network is lower than through outsourcing (45.8% compared to 54.2%), hence, Viettel Post should have a marketing strategy to develop this type 2.3 Personnel position - The total number of employees is 1,422, including 1,012 male and 430 female In terms of qualification, Viettel Post has 12 workers from higher education, 378 graduates, 113 from college, 368 from secondary and vocational education, 571 employees with high school certificates The average age of worker of Viettel Post was 29 - The figures showed that the Viettel Post has a natural labor structure of unskilled workers, which is considered reasonable for the courier industry Employee's age and sex composition was also appropriately required because the 30 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn age of 29 is quite young but fully experience in life and communication for customer services to, and number of men is more than women - However, officially unskilled workers still accounts for a huge proportion while they are communicating directly with customers Hence, Viettel Post need have training plans regularly for these staff 2.4 Main product of Viettel Post - The character of express services is all process from receipting postal parcels until delivering them Shorter is the delivering time, the more advanced products are Systems products include packages: 12 hour service, 24 hour service, 36 hour service, 60h service and parcel service (05 days) Beside basic service packages, Viettel Post also supply special services such as scheduled delivery, currency delivery Such service packages are met all needs of the market - Besides the variety of service packages, safe issue of postal parcels is given priority Delivery system is completed continuously and closely relative to exploitation department Service error rate reached 0.015%, lower than the industry ratio of 0.02% When the output increased steadily, quality of services should be properly concerned 2.5 Technology equipment - Viettel Post invested 02 conveyor system exploitation centre, and application of Lean systems to optimize goods delivering ability But 02 main centers named Hanoi and HCMC have been invested - Transportation system is invested significantly with 08 trucks of 12 tonnages transporting from North to South; trucks of 05 tonnages, 10 truck of 03 tonnage, 15 vehicles of 1.9 tonnage, 20 Ford Transit vehicles, 19 vehicles of 0.5 tonnages delivering within the country; daily connecting airline transport to all major cities The regulation of networks is done and managed centralizational over Vietnam But some network for northwest highlands like Tay Nguyen and Tay Bac has not connected - With a STRATEGY of heading network, until 2010, Viettel Post has expanded its connection over 100% provinces, 80% district centers and currently ranked the second largest network in Vietnam 31 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn - Information technology is applied strictly to the network operator, delivering path controlling, cost and revenue management All management and monitor is operated online thought internet in Vietnam - The tangible effort of express services such as packaging preservation and message success is frequently used to enhance the features of the service - All the resources aimed meeting the maximum needs of customers everywhere with large-capacity, cost savings, error reduction and quality loss Strength and weakness of Viettel Post 3.1 Strength - Extensive network with low cost due to coordination with 25,000 CTV of Viettel Telecom - Inheriting existing strengths of Viettel: brand, distribution channels, management experience, corporate culture - The centrelizated managers with formation technology invested, Viettel Post is one of the postal businesses who have the best technology platform in Vietnam - Young employees (average age of 29) with enthusiastic and eager to work - Viettel post learned a lot from the postal companies going ahead in Vietnam and in the world; 3.2 Weakness • Our experience of direct labor forces is limited • Majority of worker is unskilled and unqualified • Buildings and workshop are mostly short-term hired, while warehousing and transaction offices are instable • Viettel Post brand is confused brand of the Group • Delivery services depend heavily on external transportation companies such as aviation, public transportation, the international courier company Product life cycle analysis Stage I: Market introduction stage Stage II: Growth stage Stage III: Maturity stage Stage IV: Saturation & decline stage 32 Stage I St.II St.III St.IV GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn Based on competitive analysis above, some conclusions are shown: - Courier market is now a fierce market with big competitors as Vietnam Post, Viettel Post account for big pie of the market but there are many other businesses The delivery services are very diverse, low intelligent investment, quick application of science and technology and easily imitation of service, thus competition between rivals is price - The growth rate slowed in the market, as a result, competition among existing firms is increasingly fierce Because the industry growth rate slows down, companies tend to enter each other's markets by application of trade measures - The bargaining power of customers is growing Being full aware of about the current business, various products, quality service, customers tend to require higher and higher and make businesses against each other Due to competitive pressures and requirement of customers, companies scramble to find a lower price and provide more services The above analysis illustrate that the courier segment is at the beginning of maturity The strategy improving express services of Viettel Post 5.1 STRATEGY through SWOT matrix SWOT STRENGTHS WEAKNESSES - Brand - Unskilled worker - Low cost - Weak forecast and analysis - Managerial Experiences - Unstable infrastructure - Wide network - Culture of company OPPORTUNITIES - Young employees S+O - Attract customers of rivals Option 1: low-cost strategy to - Apply technology information expand and modern management and dominate W+O Option 3: Strategy for the horizontal market, combined to increase acquisition; 33 merger and GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn - Potential sectors: logistics, investment electronic commerce developing core competencies, improve service - Increase investment in deep axis quality and customer care in tough economic conditions; Option2: Product differentiation: expansion of THREATS international investment S+T - The risk of increased costs Option 3: - Competitive pressures of new horizontal enterprises, especially Strategy merger W+T for Option 4: reduce scale, and reorganization foreign acquisition; firms; - Trends in using alternatives instead of traditional postal services; - Out date of technology; The strategy selected from SWOT analysis of Viettel Post and big competitor analysis as Vietnam Post - Viettel Post cannot compete for the No position in terms of market share and revenue in 2015 due to insufficient resources and far distance - On the other hand, Viettel Post has to strengthen their advantages to optimize production and low cost of business operations Vietnam Post is unable to take advantage of their scale for lower costs, on the contrary, less flexibility and motivation of the large size has pushed Vietnam Post into high cost, causing loss of thousands of billions annually The achievement came from the maintenance lowing cost is pretty obvious, Viettel Post’s low-cost strategy create more competitive products - With the flexibility and dynamism, Viettel Post has the ability to create more products to meet customer needs at low prices Thanks to application of information technology and centralized administration, Viettel Post has the ability to control and improve better quality of delivery services The strategy of being the No.1 in terms of quality will be achieved in 2015 34 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn - The above analysis draws product development strategy of Viettel Post to 2015 are: low-cost in line with diversity of delivery services to meet the need of target customers The selection of our strategy is based on the theory of general strategies and product in marketing 5.2 STRATEGY through product life cycle analysis - Adaptive strategy: As maturity stage, the enterprise must always find ways to adapt to the complex characteristics of this period The best way is to reduce production costs low To implement this, factors such as adjusting mode of production with high efficiency, developing of distribution network with quality, designing reasonably products However, if during growth period, the failures are easily saved, in maturity stage, every wrong step can lead to bankruptcy Therefore, the study of a production system with high efficiency and trading system must be competitive with the cost of research and testing activities of the business effectively Setting price in a competitive environment is a particularly important decision If cost factors can not be controlled, the unreasonable price will create pressure for enterprises and could lead to financial problems - Product differentiation strategy: complete product systems, ensure quality of service and increase visibility for the courier service Ultimately, the quality of service is the core issue Strategy of delivery service development through life cycle product analysis The conclusion shows the courier market is saturated and all analysis indicate that finding any viable solution to reduce the price is the most important Then the second way is diversification of delivery services to meet customer needs Strategic options for the delivery services through the life cycle product analysis result in the same as using SWOT analysis 35 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn CHAPTER III: TARGET OF THE STATERGY AND SOLUTIONS I SELECT STRATEGY Strategy Applying low cost strategy associated with improving the quality of services to meet customer’s needs at a lower price for the 5% but the quality is equal or superior compared to competitors Target The company must provide customers a wide variety of products which are better quality and better customer care at the same price or cheaper by maximum 5% than opponents Main goals achieved by 2015: • • • • • Saving cost of 5% Revenues from express services: VND 1,000 billion Rate of return on capital rise 15% / year Strengthen No in market share and reached a 25% share of the courier Continue leading in quality and maintain error service rate at less than 0.02% • Develop appropriate labor structure: increasing the rate of training employees to 60% • Maintain its leading position of IT application in production II STRATEGIC SOLUTIONS Investment and finance strategy 1.1 Finance strategy - Use leverage: to increase the rate of profit on equity (ROE) - Develop financial plans: cost and revenue plans to balance cash flow and make plans to lure funds from outside the company (debt seller, advance payment, the debt budget, short-term loans from banks) to meet the demand for all operations of the company - Cost analysis for good product or product group: + Two categories: direct, indirect and general expenses + Account of all direct cost 36 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn + Allocate sufficient and reasonable indirect costs, general expenses - Eliminate unreasonable cost to reduce price - Develop and manage well tools and instruments, to reduce inventory - Develop policies encouraging payment of large customers to pay loans (debt reduction) 1.2 Investment strategy Through analyzing finance and cost structures of service delivery, and weaknesses of the company, three solutions are given: − Investment in express centrals and nets Viettel Post are now leasing a lots of warehouses and yards in different places, so transportation cost and wage expense for employees are high On the other hand, classification for parcels is not centralized which cause increasing in collection cost and the time of delivery, as consequence, turnover is indirectly reduced The strategy should be set out to invest and reasonably construct express central and focal net, where can be used for long time to reduce shipping costs, the number of employees, collection costs, which can increase labor productivity − Invest in equipment at the transferring stations and the focal nets To increase labor productivity, we propose: + To invest in lifting and transporting equipments in stock + To invest in automatically classifying machines to increase productivity + Investment Guideline: Select equipment by Chinese manufacturers which license from the G7, with aims ensuring working order, low initial investment, cheap maintenance costs − Investment in road transport + Investment of road transport means to increase core competencies of Viettel Post, actively improve quality service + Investment Guideline: Select mean of transport made by Korea with aims small investment fund, safe operation, cheap maintenance and repair costs 37 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn The investment strategy here are goal at improving Viettel Post's core competencies, labor productivity, increase actively providing quality service, reduce costs to lower price for customers Marketing strategy Apply mix marketing strategy (7P) 2.1 Product strategy - The character of express services is all process from receipting postal parcels until delivering them Shorter is the delivering time, the more advanced products are Systems products include packages: 12 hour service, 24 hour service, 36 hour service, 60h service and parcel service (05 days) Beside basic service packages, Viettel Post also supply special services such as scheduled delivery, currency delivery Such service packages are met all needs of the market - Besides the variety of service packages, safe issue of postal parcels is given priority Delivery system is completed continuously and closely relative to exploitation department Service error rate reached 0.015%, lower than the industry ratio of 0.02% When the output increased steadily, quality of services should be properly concerned - Viettel Post invested 04 conveyor system exploitation centre, and application of Lean systems to optimize goods delivering ability - Transportation system is invested significantly with 08 trucks of 12 tonnages transporting from North to South; trucks of 05 tonnages, 10 truck of 03 tonnage, 15 vehicles of 1.9 tonnage, 20 Ford Transit vehicles, 19 vehicles of 0.5 tonnages delivering within the country; daily connecting airline transport to all major cities The regulation of networks is done and managed centralizationally over Vietnam But some network for northwest highlands like Tay Nguyen and Tay Bac has not connected - With a STRATEGY of heading network, until 2010, Viettel Post has expanded its connection over 100% provinces, 80% district centers and currently ranked the second largest network in Vietnam 38 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn - Information technology is applied strictly to the network operator, delivering path controlling, cost and revenue management All management and monitor is operated online thought internet in Vietnam - The tangible efforts of express services such as packaging preservation and message success are frequently used to enhance the features of the service - All the resources aimed meeting the maximum needs of customers everywhere with large-capacity, cost savings, error reduction and quality loss 2.2 Pricing strategy Pricing policy ensures being lower 5% than most competitors in the same or more quality service Prices are published and updated automatically online But Viettel Post has policies to each province then provinces introduce different policies to each employee for various types of service A flexible pricing system tailored for each client is formed, while quality service has ensured as announced 2.3 Distribution - The slogan here is the network a heading, followed by business The company has been constantly reaching network services to remote areas Achieving by 2012, Viettel connection will cover 100% of districts, using 25,000 collaborators of Viettel Telecom This model is combined between the postal and telecommunications to manage market, capture the customer to every household Viettel Post will target individual customers, especially associate with some online vendors to develop currency transferring - Quote policies to individuals stimulate each staff to sale and take care customers - Besides the direct distribution channel is post office system, Viettel Post has a policy to expand the postal network take advantage of potential market and competitors’ market - In addition, Viettel Post links with the international courier company to use the global network capacity to tap the domestic segment of customers transferring parcels abroad and foreign clients delivering packages in Vietnam 39 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn 2.4 Customer care strategy - The company is not focused on product promotion through mass media Some social programs benefit the community as supporting for natural disasters, building houses for the poor, heart surgery This is good intentions expressed social responsibility of business, which brings image of a military enterprise of the people - Product quoting policies to each employee stimulate staff to supply great customer cares The most powerful motivation is that private interests are higher than interests of business, which be guided by the vision of the business - Customer Care division is the place where capture unit information, classify customer, direct take care, and manage of customer information systems - System customers are classified into groups: loyal customers, potential customers, competitor customers with different customer caring policies Besides physical care policies such as promotion, coupon, discount payment , the company is focused on exploiting the emotional side as the gifts, meeting clients; consultants to friendly create and strengthen customer loyalty team 2.5 Human Strategy - Based on the SWOT analysis, human resource training is quite difficult But every year, a budget for training and testing employees is quite large Company also has its own policies to attract skilled staff and managers Managers are classified into 03 types of low, middle and high level which need different system to attract and train Untrained workers will gradually be replaced The quality of basic services is to ensure maximum responding customer demand Culture in Viettel Post has 08 core values • Get standard practice is to test the truth • Head of the challenges and failures • Adapting quickly to the competitive advantages • System Thinking • Creativity is life • Combining the East - West 40 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn • Tradition and how the soldiers • Viettel is home - 08 Viettel core values mapped into the daily work is an important solution to promote human factors in order to improve the quality of service 2.6 Improvement process strategy The process of work and process improvement is often the optimal measures to limit the swings of the human factor Viettel maintain the principle of 70-30 (70 is standard procedure, 30 is created) This co-operation is to reduce the stiffness of the process while to promote creativity in order to facilitate completion and modification process The standards of service KPI CPN built, compliance and modified adjusted periodically 2.7 Strategy to strengthen infrastructure Beside the investment strategy described above, to enhance image promotion, the transaction was provided by a standard unique designed from billboards, furniture, equipment to create images marked separate sync and bring professionalism III IMPLEMENTATION SCHEMES Develop strategic roadmap to 2015 - Financial solution: execute decisively financial solutions in 2011, 2012 to make foundation for next years - Investment solutions: o In 2011 complete purchasing land for centers in Hanoi, Ho Chi Minh City, Da Nang o In 2012 construct of center in the place purchased and continue buying land in Can Tho o In 2013: to concentrate investment in transport systems o In 2014: to build in Can Tho o In 2015 to strive to improve the whole system infrastructure and transport means - Marketing solutions: 41 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn o Implementation drastically in 2011 and 2012 solutions about distribution channels and products o Solution on price and sales promotion, personnel, processes and facilities Conclusion Viettel Post have been growing strongly In order to develop sustainable, the implementation of the strategy of core product development namely delivery service delivery plays a decisive role With the available potentials and strategic development for core products, Viettel Postal will sustainable expand in the postal delivery market in Vietnam End References Strategic Management Curriculum - MBA Program - University of Griggs U.S Quote: http://vneconomy.vn/20110623032629720P0C19/muc-tang-cua-cpi-thang-6thap-nhat-trong-6-thang.htm 42 GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn http://tintuc.xalo.vn/001626492465/Cac_van_de_tang_truong_kinh_te_ Viet_Nam.html http://cafef.vn/20110609092931327CA34/bao-dong-no-xau-tai-ngan-hang.chn http://cafef.vn/2011072811143415CA33/adb-du-tru-ngoai-hoi-cua-viet-namthap-nhat-khu-vuc-dong-a.chn http://vietbao.vn/Xa-hoi/Viet-Nam-Quy-mo-dan-so-cao-chi-so-phat-trien-connguoi-thap/70107939/157/ http://phapluattp.vn/20110301121011177p0c1013/viet-nam-bat-dau-thoi-ky-cocau-dan-so-vang.htm THE AUTHORS 43 ... Email: gamba@griggs.edu.vn GRIGGS UNIVERSITY GLOBAL ADVANCED MBA PROGRAM CAPSTONE PROJECT REPORT THE DEVELOPMENT STRATEGY OF EXPRESS SERVICE OF VIETTEL POST., JSC TO 2015 Group No 11 – Class GAMBA01.X0110... – QUẢN TRỊ Cơng ty nước đầu tư (Lào, combodia, Mianma…… POST OFFICES THE BRACHES IN CTITES OL GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn... ADMINISTRATION PROGRAM Website: www.griggs.edu.vn Email: gamba@griggs.edu.vn http://tintuc.xalo.vn/001626492465/Cac_van_de_tang_truong _kinh_ te_ Viet_Nam.html http://cafef.vn/20110609092931327CA34/bao-dong-no-xau-tai-ngan-hang.chn