pay television products and services sales strategy in audio visual global avg company

In this context, the Company set up a strategy management team to thoroughly evaluate the Company’s internal capabilities and external environment impacts in order to develop a feasible

COMPANY BACKGROUND

GENERAL INTRODUCTION

Audio Visual Global Joint Stock Company (hereinafter referred to as AVG or the

Company) is specialized in providing television broadcasting services and multimedia

Back to 2018 when AVG was established, the Company was the first and only private organization having a television broadcasting transmission license in Vietnam

In Vietnamese market, there are five types of pay television services inclusive of Digital

Terrestrial Television (DTT), Direct to Home (DTH), Cable Television, Mobile Television and value-added service on the Internet platform (Internet TV or OTT/Over-the-top) Currently,

AVG is developing NETHUB, an OTT media service application And once this application is launched, among existing pay television (TV) providers, the Company will become the sole pay TV provider in Vietnam that has the capabilities to transmit on three available platforms including DTH, DTT, and OTT

With the mission to provide every Vietnamese family with the best-in-class products and services, the Company has partnered with leading domestic and international content providers while utilizing leading-edge technologies for broadcasting and multimedia activities

Figure 1.1 Strategic partners of AVG

Thư viện ĐH Thăng Long

AVG strives to be a leading player in the field of television broadcasting and multimedia communications not only in Vietnam but also in Asia Pacific region

To bring best-in-class services and products to the Customers

1.1.4 SIX CORE VALUES a Strong sense of solidarity b Aggressiveness and speed maximization c Continuous improvement d Customer-oriented mindset e Effectiveness and high quality f Creative and break through thinking

HISTORY

• 2008: Audio Visual Global Joint Stock Company (AVG) was officially established with a charter capital of VND 1,800 billion by Mr Pham Nhat Vu as Chairman of the Board of Directors The Company’s pay television service was popularly known as An Vien TV among Vietnamese families

• 2009: Vietnam’s Prime Minister promulgated the Official Letter No 965/TTg-KGVX approving the Project to build up a transmission infrastructure, broadcasting digital signals and develop digital television” by AVG, in cooperation with BTV Binh Duong Television

• 2010: AVG piloted its first broadcasting session in celebration of Millennial Anniversary of Hanoi

• 2011: On November 11, 2011, AVG officially broadcast upon the receipt of Ministry of Information and Communications’ license to establish a network infrastructure in May,

2011 This year also marked a milestone when the Company set up the highest antenna on top of Keangnam Landmark 72 in Hanoi

On January 8, 2016, Vietnam Mobile Telecom Services One Member Limited Liability Company (MobiFone) acquired 95% of AVG's shares, marking one of the most contentious mergers and acquisitions in Vietnam's pay-TV industry.

• (**) On April 26 th , 2016: An Vien TV, AVG’s pay television service, was changed into Mobi

TV by the new owner

In 2018, Mobi TV secured the broadcasting rights for the 12th edition of the AFF Suzuki Cup, a prestigious football tournament for ASEAN nations organized by the ASEAN Football Federation (AFF) Additionally, Mobi TV achieved a significant milestone by completing the installation of a Digital Terrestrial Television (DTT) broadcasting station atop the Landmark 81 building in Ho Chi Minh City.

• 2020: The Company returned to their former brand name, i.e., AVG, while launching a new brand identity, in response to the new development strategy of turning into a leading media group in Vietnam

• 2021: AVG has introduced game-changing products in the AVG ecosystem

TECHNOLOGY CAPACITIES

• AVG’s Network Control Center (NCC) allows monitoring technology systems entirely from signal reception terminals to central control system, transmission infrastructure, DTT and DTH stations across the nation This NCC, which is comprised of 51 big TV screens to display real-time TV channels in addition to performance of each station using data extracted from specialized servers, stations and software, used to be the most modern one in South East Asia when it was first set up

• With 19 high powered and 13 low powered stations, AVG can cover all Vietnam territories and South East Asia for DTH and 80% East and South West and 100% Northern Delta of Vietnam for DTT

• The Company has been using Billing and Subscription Management System (BSMS) licensed by CRM.COM for more than 12 years This system serves functions of not only a subscription and recurring billing management system (SRBM) but also a customer management system (CRM) The system is AVG’s core platform which oversees customer, product and service management activities

PRODUCT HIGHLIGHTS

First generation model 2 nd generation model Latest model

First generation model Latest model

Figure 1.4 DTT models a Product package: The product set contains a set top box, a remote control, an indoor or outdoor antenna and attached accessories b Advantages: DTT product of AVG is proved small and compact; therefore, customers can install the product set at home for convenience Besides, it is proved to be portable when customers can easily interchange the product set around their houses or to other locations or even means of transportation including cars or buses Despite affordable with 2 subscription plan of VND 30,000 (Standard package) and VND 60,000 (Premium package) per month only, the product set has a wide range of choice for domestic and international TV channels Moreover, its superior audio and video quality prevent ghosting problem which is quite typical for cable TV and normal analogue services Lastly, unlike OTT application, DTT technology can be used for all types of TV set; therefore, it is suitable for customers of all segments c Disadvantages: Despite all those advantages above, the DTT technology of AVG has several disadvantages First, because of depending on the antenna to receive signals from

7 terrestrial broadcasting stations, its service is available only in big cities and surrounding areas

In addition, its cable cannot be installed in-wall, which will have impact on interior design of the room Lastly, each product set can be used for one TV only

First generation model 2 nd generation model Latest model

Figure 1.5 DTH models a Product package: The product set contains a set top box, a remote control, a parabolic antenna and attached accessories b Advantages: First and foremost, because of enabling signals to be transmitted from the satellite to customer households through the use of the parabolic antenna, DTH technology has a great coverage of all terrains especially islands, remoted and mountainous areas where cable, Internet and DTT TV signals cannot be reached Moreover, DTH technology also provides premium and consistent audio and video quality since the signal is not divided through cables or Internet bandwidth With similar monthly subscription plans as DTT, customers can even enjoy more TV channels of high definition Additionally, TV broadcasting signal is transmitted directly from the satellite, there is not limitation as regards geographical terrain besides its capability to be independent from Internet signals Lastly, unlike OTT application, DTH technology can be used for all types of TV set; therefore, it is suitable for customers of all segments c Disadvantages: There are a few limitations to DTH technology To begin with, the product set’s biggest drawback is its dependence on weather condition For example, TV channel signal is highly likely to be suspended due to heavy rain or storm Secondly, since the product depends on the parabolic antenna to receive signals from the satellite, it requires the antenna to be installed with specific directions Therefore, end users are normally not be able

8 to install it themselves without resorting to technicians And finally, the product set is not portable due to difficult installation requirements

1.4.3 NETHUB – THE COMING OVER-THE-TOP (OTT) MEDIA SERVICE OF

Figure 1.6 NETHUB’s available platforms a Product overview: NETHUB is available on all platforms consisting of smart TVs, smart phones with Android or iOS operating system, tablets, personal computers and android

TV boxes b Main features: The minimum value propositioning of this product when being launched to the market includes the succeeding features Initially, it will have friendly user interface, meaning any user of all ages, genders, regions and backgrounds can use it with ease Besides, TV channels and Video-on-demand (2) contents are expected to be delivered to user’s preferences Additionally, it is targeted to own rich content with a library of more than 200 TV channels of various genres with intelligent recommendation functions, instant search and voice search on smart TVs Furthermore, NETHUB can provide high quality video through the application’s compatibility with vivid colors from Dolby Vision/ HDR 10 technology and Dolby Digital/Dolby ATMOS sound system with stable transmission speed c Key selling-points: NETHUB has been developed to own advanced functions, including optional audio, subtitles, auto skip and archived user’s log-in and out session history Different from existing OTT applications in the market, it can support personalization as regards channel lists, ongoing events, content categories and etc through the use of integrating recommendation technology Especially, through this application, AVG will introduce their own in-house contents In particular, NETHUB will exclusively broadcast TV channels

9 produced 100% by AVG, including NETStars – Entertainment Channel and NETCine – A home theatre for Vietnamese customers who can be served with a huge world of movies and

FACTS AND FIGURES

✓ Approximately 200 managerial and staff members nation-wide;

✓ 3 Regional Sales Offices in Hanoi, Da Nang and Ho Chi Minh City;

✓ Around 2,000 distributors across the nation;

✓ More than 7,000 service centers and subscription fee collection points;

✓ Over 800,000 as the highest number of AVG’s effective subscribers;

Since AVG is not a publicly held company; therefore, the Company’s Chief Financial Officer (CFO) refuses to provide their Financial Statements However, the CFO shares two key financial features as follows: a Average revenue of the Company for the last 3 consecutive years is VND 294,000,000; b Average daily amount of subscription fees collected is around VND 400,000,000 during regular days and up to VND 600,000,000 for promotion days

1.5.3 CUSTOMER SEGMENT a AVG’s customer characteristics: Majority of AVG’s customers are multi-generational households living in independent houses or apartments in urban or rural areas The households generally house at least an elder aged 50 and above who are not familiar with using new method of TV services for example Mobile TV and Internet TV There are two main reasons for these customers to choose AVG rather than other pay TV services Firstly, prior to August 8 th , 2020, AVG used to exclusively broadcast BTV9 – An Vien TV (Bchannel) – an Asian and Buddism culture, which attract great attention from elder people across the country The other reason is that AVG is proved to be a reasonable choice for households living in remote or mountainous areas of lower middle income b AVG’s customer watching habits: The customers often watch TV from 7:00 to 10:00 pm everyday for news, TV drama series and football matches Nowadays, many of the Company’s customer households subscribe for more than one pay TV service besides DTT or

DTH service to cater the need of every member in the household In particular, news programs are for customers of all ages and genders However, TV drama series attract female and elder customers while discovery and sports channels are preferred by male viewers.

COMPANY STRUCTURE AND ORGANIZATION CHART

AVG’S ORGANIZATIONAL CHART

AVG has undergone an operating history of more than 12 years with many changes in terms of ownership which definitely has led to various organizational charts to be applied The chart above has been in use since mid-2020 when the Company had newly-onboarding Chief

The Company’s intention to design this Organizational chart is that the Board of

Management jointly manage Departments or Centers though each Deputy CEO has more managerial power for specific aspects of the Company a Advantages of this management model are listed as below:

− Better interaction and coordination among various business and functional units since all of them have the same line Managers;

− Any changes in the Board of Management will have little impact on business-as-usual activities;

− Focus groups of business and functional units can be done easily based on the Board of Management’s business objectives for specific periods b Disadvantages:

− A Unit, at times, may feel confused since they have received diverse directions from each member of the Board of Management;

− Decision-making process may take lengthier owing to long lists of authorization levels;

FUNCTIONS AND DUTIES OF BUSINESS OR FUNCTIONAL UNIT

This Office is comprised of 4 specialized Departments that directly report to the Board of Management and play advisory functions in the organization a Strategy Management Team: Aware of importance of strategic management in an organization, Mr Chief Executive Officer decided to ask for the Board of Directors’ approval for the establishment of this team at the end of 2020 The team consisting of 2 Strategy Development Experts and 2 Specialists play two major functions (1) Implement strategic management and (2) Perform assistance activities:

❖ Define strategic intent: Collect all available information, for instance, key performance indicators of the Company and competitors, market trends, etc to come up with valuable insights and strategic vision for the Company

❖ Develop strategy implementation roadmap: Determine priority orders of strategic intents and break them down into action plans

❖ Manage performance: Collect, analyze and evaluate results achieved during strategic process Frequent performance evaluation can enable the Board of Management to decide whether to going ahead with the following action plans or direct adjustments to correct actions aimed at better adaptation with the changing market conditions

❖ Review all documents before submitting them to the Board of Management;

❖ Organize and join meetings with the participation of the Board of Management

This Department is divided into 3 teams: Recruitment & Training, HR Business Partners (HRBP) and General Administration

✓ Recruitment & Training: In the midst of AVG’s transformation process, certainly, this team is one of the busiest and most important of the organization AVG is considered coming back to their start-up days when lots of positions from junior staff to high management positions are open However, to be honest, recruiting for AVG is not a simple task at all owing to their controversial history Besides, most of the staff have worked for the Company since it was established; therefore, they are neither up to date nor open for changes This fact actually prevents newly onboarding persons from staying after their probation period

✓ HRBP: This team plays common roles of HR in an organization, including:

❖ Establish HR policies and regulations;

❖ Perform salary and allowances pay-out;

✓ General Administration: This team that incorporates admin staff from 03 sales offices take clerical tasks to provide support for all staff members c ACCOUNTING AND FINANCE DEPARTMENT

This Department takes 3 major responsibilities: Financial advisory, Accounting and Procurement The Chief Financial Officer as Head of the Department is a reliable counselor to the Board of Management in:

✓ Analyze and evaluate efficiency of investments and business activities All budget proposals are obliged to get approval from the CFO before submitted to the Board of Management

✓ Ensure the recognition of revenue streams and control risks associated with business activities

✓ Receive procurement requests from other units, and follow procurement regulations to propose vendor recommendations to the Management d LEGAL AND COMPLIANCE DEPARTMENT

From my personal perspective, I have higher expectation towards this Department than their current roles as follows:

✓ Cooperate with all other units to consult and control legal-related matters;

✓ Play the role of Internal Audit towards all business and operations activities

At present, as regards any business problem to be solved, they only provide information about potential risks yet advice on how to mitigate or wholly avoid them

For the history of more than 12 years in operations of AVG, this Center has maintained their outstanding performance in both managing entirely DTT and DTH infrastructure and proposing business opportunities associated with broadcasting services

− Television Technician Department – North: in charge of operating, exploiting and maintaining DTT stations from the North to Da Nang;

− Television Technician Department – South: in charge of DTT stations from Quang Ngai to the South;

− NOC: in charge of NOC infrastructure and national transmission line;

− Infrastructure Business: in charge of working with provincial televisions to explore deals for broadcasting services

In contrary to Television Technician Center, stability in quality is not the most expected capability for this Center Their Research and Development Department that takes a key role in the organization through the management of BSMS system in addition to analysis of up-to-date trends for set-top-box is required to give out break-through technology ideas In pay TV and multimedia field, content and technology are two key differential factors between an organization and their rivals However, technology of AVG has been in use for more than 12 years without substantial changes Consequently, it is high time for them to adapt themselves with the Age of Digital 4.0

2.2.4 PRODUCT AND CONTENT MANAGEMENT CENTER

As mentioned earlier, content is one of the two key differential factor that a pay TV service provider should have Back to operations of An Vien TV, the Company used to produce in-house contents mostly related to Buddhism This activity was disconnected when the Company is transferred under ownership of MobiFone Now that the new Management Board recognize important of in-house contents, this Center is expanding beyond their business-as- usual tasks

The Center is handling the production of many game-shows and video-on-demand to be exclusively broadcast on AVG’s infrastructure only

In addition to being an intern Strategy Development Expert, I am currently the Head of Project Management Department cum Acting Head of Business Intelligence Department under Business Development Center The Center was newly established last September with the following duties:

− Focus on increasing effective subscribers and optimize business activities;

− Maximize profits from investing in broadcasting infrastructure;

− Improve performance of all units across the Company;

− Enhance quality of Distributor system and Build up in-house capabilities for logistics, installation and service support activities

In order to fulfill objectives set by the Board of Management, insights and lessons learnt from the process of strategy management are extremely crucial Subsequently, I have decided to join the internship at the Management Office

Marcom discharges the challenging yet vital duties specified followingly:

− Set up, protect stability and certainty of AVG brand-name;

− Prioritize MKT strategies for each sales objective and targeted market

− Establish and perform efficiently AVG ecosystem communications via online and offline channels

I have been working closely with the Center in almost all projects From those experiences, I am not satisfied with their current performance I totally understand that fixing a broken image is much more difficult than building up a positive brand image However, adversity brings knowledge and knowledge wisdom Creativity may arise out of budget or resources constraints Truly, I look forward to their out-of-the box ideas which can lift AVG brand-name to a next level in every channel of communications

Prior to 2020, the Center solely handled administrative tasks, assisting the distribution system with paperwork without assuming any sales responsibilities However, in late 2020, a reorganization significantly expanded its duties and authority This restructuring focused on broadening distribution channels and swiftly increasing subscriber counts, signaling the Center's transformation from a back-office operation to a pivotal player in driving growth.

Digital Products Center hold a responsibility to develop Over-the-top media service (NETHUB) to leverage AVG’s position in the fast-paced changing environment Furthermore, thanks to relationship of the Center Head, AVG will extend their business partnership with social media platforms including TikTok and others And first time in the Company’s history, a Talents management training center was planned to be established Unfortunately, the idea has yet to be proved profitable enough for the Board of Directors to invest in

AVG’s CRM Center has been well managed by an experienced Director It has two subordinating departments including Contact Center and Tele-sales

To enhance customer support, the Contact Center operates from 7:00 AM to 10:00 PM In anticipation of increased demand with the launch of NETHUB, management has implemented Auto Call technology to extend service hours Additionally, the Contact Center has conducted a thorough analysis of internal processes to identify necessary improvements in staffing, technology, and other areas to handle the expected surge in subscribers.

− Tele-sales Department has 4 members in charge of interacting with Distributors to increase subscription fee revenue on a daily basis and maintaining relationship with payment intermediaries

POSITION AND ROLE OF THE INTERN

In May of 2021, AVG was directed by the Company Chairman to improve efficiency of current business activities and accelerate the implementation of goods and services initiatives aimed at achieving the most significant Key Performance Indicator (KPI) for 2022 which is For AVG to return to 1 million pay TV subscriber club of Vietnam

Acknowledging that direction, I had a discussion with the Company CEO to contribute my experience and knowledge gained from this AMI Curriculum to better support the Company in meeting the demanding target Accordingly, as agreed by the CEO, I have been transferred to Management Office as an intern Strategy Development Expert in Strategy Management Team from June 1 st , 2021 up to now

THE MISSION: ASSIGNED TASKS AND GOALS

INTERNSHIP ASSIGNMENTS

To execute the strategy management plan outlined in Section 2.2.1, I was assigned two primary tasks: defining strategic intent and developing a strategy implementation roadmap Under the mentorship of Ms Cap Thi Thu Huyen, Strategy Management Team Leader, my responsibilities were divided into specific activities with defined objectives.

# Period Task Activity Expected outcomes

Conduct a research on Vietnam pay TV market

A comprehensive Market analysis composed of findings regarding market overview, the Company’s competitiveness’ assessment and identification of opportunities and threats

Perform field trips to understand existing distribution network of the Company

A field trip report with assessment of the distributors towards the Company’s product and service as well as their recommendations for sales strategy approach to be followed

Perform analysis of the Company’s internal factors

An in-depth study with findings relevant to the Company’s strengths and weaknesses to define possible strategy mix with attention to relevant stakeholder’s expectations

(These activities are conducted jointly with other team members under facilitation and supervision

A draft version of the Company’s strategy roadmap to be submitted to the Management for

18 ber 15 th ntation roadmap of the Strategy Management Team Leader)

- Determine specific actions required to bridge the Company’s capability gap;

- Group related actions into packages of work These packages of work can be formulated into initiative or project or program based on the level of granularity of particular AMI Curriculum of action;

- Finally form a strategy roadmap composed of initiatives, projects and programs to be delivered so as to follow strategic direction of the Company Chairman elucidation and approval

4 Septem ber 16 th to 30 th

Develop strategy impleme ntation roadmap

- Support the Team Leader to present the Company’s strategy roadmap to the Management Board for their consensus;

- Counsel Department and Center Heads in the Company to make effective decisions in the midst of implementing the approved strategy roadmap

- Presentation slides and supporting documents relevant to the proposed Company’s strategy roadmap;

- Make necessary modifications in compliance with directions of the Management Board;

- Documented training documents for decision- making process

LINKS BETWEEN THE SUBJECT MATTER AND MY ASSIGNMENTS

In point of fact, it took me quite a while to select subject matter of my internship because of two main factors The first one was that I had just joined the Company for several months, and there was a significant number of business and operational areas for me to explore and make contributions to Secondly, the Company’s business performance, at the time of my internship, was not evaluated with positive results In consequence, there arose a need for the Management Board to seriously scrutinize every aspect of the business to realize rooms for improvement Nevertheless, it is widely recognized that business strategy plays a key role in shaping the Company’s business activities towards its vision and mission Particularly, an effective strategy to be adopted can bring a competitive advantage to the Company that eventually have a better sense about their status in the market and where they are heading to Having made a firm decision on the internship subject matter, I discussed it with the Company’s CEO affirming my commitment to apply my previous experience and knowledge acquired during each subject of this AMI Curriculum to the internship in particular and the Company in general It was my great honor to receive his approval for transferring me to Management Office Furthermore, I highly appreciated the facilitation of the Head of Management Office in assigning tasks which are perfectly relevant to the internship topic that

I had chosen This link is explicitly demonstrated through Figure 3.1 Internship Calendar.

GOALS TO REACH

As a part of the team assigned a challenging but essential task which was to develop a viable products and services sales strategy, there was a requirement for all team members especially me to reach the following goals: a It was essential to deeply understand about pay TV market industry including performance of traditional pay TV services which are DTT, DTH and cable TV in comparison with the emergence of Mobile TV and OTT b There was a need to apply techniques for example SWOT model to formulate a thorough analysis of the Company’s strengths, weaknesses, opportunities and threats c Relevant stakeholder’s expectations were subject to be fully realized prior to the recommendation of strategies d Through the application of SWOT matrix, specific strategies were required to be identified to enhance strengths and make use of opportunities while overcoming

To achieve the goal of regaining 1 million pay-TV subscribers, a comprehensive strategy roadmap will prioritize initiatives, projects, and programs, which will be derived from identified actions that address 20 weaknesses and mitigate threats This roadmap, subject to Management Board approval, will guide the execution phase aimed at restoring subscriber base growth.

CONTRIBUTIONS TO THE COMPANY

My previous experience and knowledge acquired through this AMI Curriculum have helped me to make the following contributions to the Company: a Gather required data on the industry and apply tools and techniques to analyze and turn them into valuable information to the Company’s Management Board; b Research on trends of pay TV not only in Vietnam but worldwide to help the Company get updated with new technologies and be conscious of additional revenue streams; c Apply project management skills and competences to formulate initiatives, projects and programs under the proposed strategy roadmap in an efficient and professional manner; d Have the ability to develop business cases with persuasive inputs and proven results; e Support Department Managers and Center Heads to master reporting and presenting skills as well as changed processes including decision-making.

THEORETICAL KNOWLEDGE TO BE PUT INTO PRACTICE

It has truly been a wonderful learning experience for me during almost two years of my AMI Curriculum Thanks to the inspiring and enthusiastic guidance of all professors through interesting lessons, I have been superbly equipped with a tremendous amount of practical know- how in various subjects The knowledge and skills that I have acquired through this AMI Curriculum have been verified practicable and helpful for me to perform my job generally and complete my internship particularly

First and foremost, the subject that substantially contributed to the satisfactory completion of my internship was International Strategy With valuable and vivid information demonstrated through straightforward explanation of the professor, I had a comprehensive overview on what a strategy actually meant and how to develop one Accordingly, it was me who formulated the sales strategy’s core aspects to be addressed under guidance of the Head of

Management Office and assistance from other team members Actually, the core aspects were identified on the basis of what I learned from International Strategy class They are summarized as (1) Pay TV market analysis (2) Assessment of the Company’s competences (SWOT) and relevant stakeholders (3) Recommendations for additional revenue streams (products and services) (4) Areas of improvements (5) Grouped actions to be prioritized to form the strategy roadmap Essentially, the class encouraged me to take on the demanding task which was to build up the sales strategy for Quarter IV of 2021 and full year 2022 of AVG

In addition, Fundamental accounting and International accounting were among the first subjects of my Master AMI Curriculum Lessons of these two subjects enabled me to prepare accounting information required for business case of each proposed product and service initiative Furthermore, the accounting information was useful to evaluate projected performance of those potential products and services Followingly, International accounting provided me with sufficient knowledge to analyze and assess impacts of changes in regulation and practices of both domestic and international accounting and financial analysis on the Company’s value that we faced during 2020

Valuable lessons from International Distribution Channel and Supply Chain Management classes also provided me with great support for my internship Explanation about types of distribution channels inspired me to recommend new distribution channels to the Company’s Management Besides, I could apply the key perceptions of strategy execution and international channel design to customer and pay TV product and service distribution settings Last of all, thanks to these two classes, I could comprehend the key processes from demand forecasting and planning, supply management, manufacturing to distribution The integration of these processes was vital to enhance customer value and achieve the Company’s competitive advantage with appropriate use of quality and performance management, cost optimization techniques

International Contract Law has significantly aided me in successfully navigating the legal aspects of my team's proposed strategic plan It has provided me with a comprehensive understanding of the terms and essential documentation involved in international transactions, which are part of our daily operations The concepts learned have also laid the groundwork for me to effectively advise the Company's management team in making informed decisions.

Another subject advantageous for me to make further contributions to the Company was Intellectual Property Rights Similar to many other organizations in Vietnam, AVG have been facing a large number of issues related to counterfeit products and services During the AMI Curriculum, I raised these issues to the Professor for her consultation about solutions And these

22 solutions were applied efficiently during my internship, which was explicitly expressed through my recommendations for copyright, patent, designs and trademarks of the Company’s to-be- launched products and services

Subsequently, case studies given by professor of Financial Risk Management formed a basis for my identification of potential risks which could arise to proposed business initiatives from both qualitative and quantitative perspectives Moreover, the class contents contained tools and techniques to quantify, respond to and manage these risks through the use of historical data

Personally, Business Game Roleplay classes were one of the most exciting ones since I together with my classmates had the chance to directly give out business decisions related to

HR, manufacturing, customer segmentation and MKT With these practice sessions, it was not that challenging for me when I had to build up business strategy for any product and service In addition, thanks to this subject, I was fully conscious of impacts from any change in business direction on the Company’s performance In fact, it is necessary to every new strategic decision to go through a feasibility study phase prior to official application to avoid negative reactions of relevant stakeholders as well as uncontrollable influences on business operations

In the context of the Company’s intention to expand strategic partnership with Chinese and Korean content providers, the two subjects including Cross cultural management and Intercultural negotiation provided me with sound foundation to design proper cooperation schemes with them Certainly, the schemes would contain cultural recommendations for execution phase thanks to knowledge gained through multiple lessons of these two classes

As regards supplementary AMI Curriculums comprised of Introduction to Marketing and Dimension of Human Resource Management, they generally address issues faced by myself while evaluating the Company’s MKT competences and stakeholders

INTERNSHIP ASSIGNMENTS

MARKET ANALYSIS

4.1.1 Market Overview a Vietnam Market Overview

− Area: 331,699 km 2 (equivalent to 128,070 sq mil) 1

− Population in urban areas: roughly 33 million people

− Population in rural areas: roughly 63.1 million people

− Number of households: approximately 26.8 million households 3

− Average income: about US $185 per person per month 4

− Proportion of age group from 15 to 54 years old: 65%

1 Wikipedia Foundation, 2021 Vietnam [Online] (Updated 12 August 2021) Available at Vietnam - Wikipedia [Accessed 13 August 2021, 10:11 p.m]

2 24H, 2019 Thứ hạng dân số 63 tỉnh thành mới nhất [Online] (Updated 17 July 2019) Available at Dân số Việt Nam: Thứ hạng và quy mô dân số của các tỉnh thành phố (24h.com.vn) [Accessed 14 August

Theo số liệu của Tổng điều tra dân số và nhà ở năm 2019 của Tổng cục Thống kê Việt Nam, tính đến thời điểm 1/4/2019, toàn quốc có 24.060.103 hộ gia đình thường trú với quy mô trung bình 3,63 người/hộ.

4 Bao dien tu tai nguyen va moi truong, 2021 Thu nhập bình quân của Việt Nam khoảng 4,2 triệu đồng/người/tháng [Online] (Updated 8 July 2021) Available at Thu nhập bình quân của Việt Nam khoảng 4,2 triệu đồng/người/tháng (baotainguyenmoitruong.vn) [Accessed 14 August 2021, 11:00 p.m]

Figure 4.1 Vietnam population map 2019 b Vietnam TV Stations: According to an internal report of AVG, Vietnam currently has

✓ 1 national television broadcaster of Vietnam – Vietnam Television or VTV;

✓ 5 organizations having TV broadcasting services under different Ministries c TV Channels: The AVG’s internal report also lists down 298 TV channels which are currently broadcast in Vietnamese territory:

✓ And around 100 pay TV channels

25 d Statistics on TV watching habits of Vietnamese audience as per an internal company report

✓ Age groups: During the period from January of 2019 to March of 2020, in 4 big cities including Hanoi, HCMC, Can Tho and Da Nang, the group of viewers aged from 55 accounted for 30% of all viewers, followed by the age groups from 45 to 54 at 21% Two successive groups were viewers of ages from 4 to 14 and 35 to 44 whereas the youth (15-24 years old) and adults aged from 25 to 34 made up of two smallest percentages of all viewers at 10% each

✓ Time spent watching TV per day: There was a gradual decline in Vietnamese audience’ time spent watching TV per day throughout years from 2016 to 2019 This trend was changed during first 4 months of 2020 during the social quarantine period due to Covid 19 pandemic when this indicator reached its peak at almost 250 minutes per day However, during months following the quarantine, Vietnamese audience even spent less time watching TV compared to 2019 to explicitly demonstrate the fact that there was a large proportion of Vietnamese population changed to watch video streaming on the Internet using their mobile devices

✓ Vietnam program genre share: After Covid-19 outbreak in February of 2020, Vietnamese audience were more interested in news which rose from 22% during 2019 to 33% in March of 2021 Three following genres which drew attention of local people included series, programs for kids and general variety with the proportion of 18%, 14% and 13 respectively over the same period On the contrary, the proportion of sports programs experienced a sharp downturn from 22% in 2019 to 2% in March of 2020

4.1.2 Using Porter’s Competitive Five Forces to Analyze Vietnam’s Pay TV

After having an overview on Vietnamese market, I decided to apply Porter’s competitive five forces model generally used to identify and analyze attractiveness and competitive strategy of every industry An application of this model to AVG could help me to determine the attractiveness of pay TV industry in general, current competitiveness of the Company as well as a targeted niche which might satisfy their development needs a Intense competition between AVG and their existing competitors, substitutes or potential entrants

First, in terms of market segment, as of the end of 2020, Vietnam had approximately 10.1 and 13.8 million pay TV subscribers who used five main types of pay TV services with volume of subscribers respectively throughout 2019 and 2020 presented in Table 4.1 below With the

26 number of 10.1 million subscribers, pay TV providers generated a revenue of around 9,000 billion Vietnam dongs in 2019 which was an increase of 1,500 billion Vietnam dongs from

2017 However, the revenue in 2015 and 2016 reached 9,624 and 12,000 billion Vietnam dongs respectively This paradox of increased number of subscribers but decreased volume of revenue was due to continuous promotion campaigns of local providers prioritizing subscriber growth over short-term profits

Table 4.1 Pay TV Subscribers in 2019 and 2020 5

Type of pay TV service

As per the table above, it is shown that traditional pay TV services made up of Cable TV, DTT and DTH had considerably slower growth, compared to Internet TV/ OTT Besides, analogue cable TV, DTT, DTH and Mobile TV experienced a negative growth, which proves that subscribers of these services have been converted into the other services, particularly OTT This fact posed a considerable threat to AVG since the Company is the only one that has yet to officially launch an OTT application among pay TV providers in Vietnam which are categorized into two different groups including local and international ones As of September,

2021, there were 39 local companies providing pay TV services 6 and many international providers penetrating the Vietnamese market listed as Netflix, iFix, Apple TV, Disney+, Tencent, Baidu, Amazon, HBO Go, YouTube and etc

As mentioned in the previous paragraph, there were more and more international online video streaming service providers entering Vietnamese market who kept investing large amounts of

5 Authority of Broadcasting and Electronic Information 2021 Pay TV Report 2020

6 Authority of Broadcasting and Electronic Information, 2021 Danh sách các doanh nghiệp cung cấp dịch vụ truyền hình trả tiền năm 2021 [Online] (Updated September 2021) Available at Danh sách các doanh nghiệp cung cấp dịch vụ truyền hình trả tiền năm 2021 (Tính đến tháng 9/2021) (abei.gov.vn) [Accessed October 13 2021, 9:15 p.m]

27 money in producing contents satisfying demands of global viewers Besides, while being required to pay smaller amount monthly compared to traditional services, viewers could receive more services, especially using a variety of devices from smart TV to mobile devices at anytime and anywhere Though not licensed in Vietnam and accordingly no market share recognized, four leading providers including Netflix, Hulu, Amazon and Youtube had almost 2 billion subscribers, accounting for 40% total global market share 7 b Low bargaining power of manufacturers

Due to high prices from their Korean vendor, AVG sought a new supplier in China in 2019 This vendor offered a unit-cost-based contract tied to production volume over five years, resulting in a 40% cost reduction compared to the previous vendor Despite a decline in subscriber growth, AVG's latest order of one million set-top boxes was deemed sufficient to meet their needs for the next five years.

In terms of accessories including antenna and TV satellite dish, the Company also ordered excessive number of items than actual demand Therefore, in conclusion, AVG has been under less pressure of this force compared to others c High bargaining power of customers

INTERNAL ANALYSIS (STRENGTHS AND WEAKNESSES)

As a next step following Pay TV industry analysis aimed at having an overall picture of AVG’s strategic position, the Company’s internal factors should be examined in order to form basis for creating strategic options in addition to an evaluation of a set course of actions in the coming period

Table 4.2 AVG’s Strengths and Weaknesses

1 Vast business ecosystem: Though it is not announced publicly, AVG is in the same business ecosystem with Vietnam

Prosperity Joint Stock Commercial Bank

(VPBank), BE - a Vietnamese ride- hailing application and Vietnam

MIKGroup Joint Stock Company (MIK

Group) – a company specialized in real estate investment, trading and development This ecosystem has offered

AVG exclusive partnership deals that not any pay TV service provider can have

Company has an extensive distribution network across the country

3 Affordable price: The two subscription- fee plans of VND 30,000 and 60,000 per month of AVG are considered affordable and suitable with Vietnamese market

4 High product and service quality:

Transmission signals including both audio and video are assessed as strong and stable In addition, the sets of devices for DTT and DTH services are easy to be installed with good design

1 Weak brand recognition: There is a lack of awareness among customers of the Company’s brand, especially their new brand identity due to fragmented MKT campaigns as well as the existence of different branded products distributed by the Company to the market - MobiTV, AnVien and AVG

2 Limited product and service distribution channel: During the history of 12 years in operation, the Company has depended completely on their distributor network to for its sales and even post-sales activities This has been proved as a serious weakness of the Company especially during the outbreak of Covid-19 pandemic when the competitors did not suffer much thanks to their available alternate channels including e-commerce

3 Poorly catered service: The Company has left customer and distributor care activities unattended for several years, which results in the low level of customer and distributor loyalty towards the Company

4 Lacking core product: The Company is the sole pay TV provider in the market who has

STRENGTHS WEAKNESSES yet to launch OTT service as well as partner with a telecommunication or Internet provider so as to offer bundled products of telecommunication, Internet and TV services altogether.

ANALYSIS OF RELEVANT STAKEHOLDERS

Stakeholder expectations have significant influence on strategic decisions Consequently, there exists an essential need to identify relevant stakeholders in the Company, understand their expectations and prioritize those defined expectations in each strategy First and foremost, all strategic decisions are required to comply with expectations from the Chairman of the Company’s Board of Directors because of his power whether to approve the implementation of any proposed strategy Regarding managerial level in the Company, it is highly recommended to define key blockers and facilitators of a specific strategy For example, the Head of Direct Sales Center is likely to show his opposing viewpoint on the strategy to develop alternate distribution network because of the potential threat to benefits of the existing distributor network Therefore, the Head of Direct Sales Center will be considered as a blocker of this strategy who needs monitoring In another example, several business partners will undeniably show contradicting expectations about the Company’s particular strategies if informed since the strategies may lead to disadvantages to the deals they are entering with the Company Accordingly, business strategies are compulsory to be kept confidential among key managerial members of the Company 2 groups of stakeholders including staff members and customers normally will be facilitator of the Company’s strategies whose ultimate goals are to maximize profits while keeping the customers satisfied with the Company’s product and service

Chairman of Board of Directors

✓ Invest in the Company’s operations

✓ Announce the Company’s vision and mission

✓ The Company is operated in compliance with the announced vision and mission

✓ Approve human resource matters of managerial levels activities are performed within the approved business plan, including budget and headcount plan

✓ Make strategic decisions to lead the Company achieve the assigned business targets

✓ Approve all policies and proposals related to business and operational matters as per delegations

✓ Allocate and manage the Company’s resources as per delegation

✓ Achieve the set of Key Performance Indicators (KPI) assigned by the Chairman for business and operational aspects

✓ Obtain adequate resources and capabilities required for the development of the Company

✓ Ensure business and operational activities are conducted in an effective manner

✓ Allocate and manage the Department or Center’s resources as per delegation

✓ Propose initiatives for continuous improvement of the Company in general and his or her Unit in particular

✓ Obtain adequate resources and capabilities required for his or her Unit to fulfill assigned tasks by the CEO

✓ Enjoy competitive pay and benefits

✓ Be supported with transparency in performance assessment activities

✓ Have good cooperation from relevant Units

Internal Staff ✓ Have the opportunity to make use of his or her knowledge and capability to contribute to the Company

✓ Be directed by a transparent line Manager who will value properly his or her contribution

✓ Propose initiatives for continuous improvement of the Company in general and his or her Unit in particular

✓ Enjoy competitive pay and benefits

✓ Provide with opportunities for promotions

✓ Work in an organization with good corporate culture External Customers ✓ Make decision to whether continue using the product/ service or leave for a better one

✓ Provide feedback about the product or service they are using

✓ Receive a product or service of comparatively similar or better quality than the amount they have paid

✓ Be subject to loyalty programs of the Company

External Distributors ✓ Be the representative of the

Company to interact with customers

✓ Obtain customer insights towards the Company’s product or service

✓ Have good and long-term relationship with the Company

✓ Receive substantial financial benefits from the relationship

✓ Attain the Company’s commitment in the product or service’s quality

✓ Decide whether to enter the partnership deals with the Company

✓ May require changes to the Company’s existing policies to better fit the partnership deals

✓ Receive substantial financial and non-financial benefits from the relationship

✓ Attain the Company’s commitment in the product or service’s quality

PROPOSED PRODUCT AND SERVICE SALES STRATEGY

SWOT analysis, considering Pay TV industry dynamics, AVG's internal capabilities, and stakeholder expectations, has provided insights for the development of a comprehensive strategy This strategic framework aims to leverage strengths, mitigate weaknesses, capitalize on opportunities, and neutralize threats, as outlined in the SWOT matrix.

2 More advantages from substitute products

4 High product and service quality

Strategy to expand distribution network

Partner with other companies in the ecosystem as AVG’s

Distributors to cater the needs of unattended customer segments with focus on promoting OTT products

Strategy to stabilize current distribution network with focus on DTT and DTH products

Strategy to develop niche products and services

Design specialized product and services to serve customers of the business ecosystem

2 Limited product and service distribution channel

4 Lacking core product specifically direct MKT and branding activities

2 W (2, 4) and O (1) Strategy to develop alternate distribution channels aimed at promoting customer loyalty programs in conjunction with improving customer care activities

In order to fulfill the combination of strategies explicitly recommended in Table 4.4 above, further supporting details are required to formulate a comprehensive Sales Strategy for the Company

4.4.2 Products and Targeted Customers a Strategic products

− DTT: keep stable with focus on customer retention Same subscription plans as currently

− DTH: promote development with fair amount of effort on market expansion through entering niche markets and alternate channels supplementary to the retention of existing customers Same subscription plans as currently

− OTT application: required to launch in urgent manner and promoted to become the Company’s strategic product Competitive pricing scheme compared to existing competitors b Niche product

− OTT and Internet package: partner with an Internet Service Provider (ISP) company to create a bundled product which will be distributed through the Company’s business ecosystems

Multi-generational households that contain at least two adult generations or a grandparent and at least one other generation

Niche markets: military boats and households in remote areas

Individuals of 18 to 54 years old

Multi-generational households having demands for more than

1 TV set and 1 TV service

Income Mass affluent Mass affluent Mass affluent

Big cities and provinces as currently, including Hanoi, Nam Dinh, Hai Duong, Ninh Binh, Hai Phong and Hochiminh City

Provinces with mountainous terrain, including Hanoi, Thanh Hoa, Gia Lai, DakLak, Daknong, Binh Dinh, Lam Dong, An Giang, Kien Giang and Ca Mau

Any demographic location where Internet is available For OTT and Internet package:

- Individual segment: households living in apartment buildings in Hanoi and HCM City;

- Corporate segment: 4-to-5-star hotels and resorts nationwide d Subscription plan for OTT application or OTT and Internet package designed based on a comparison of the competitor’s price ranges in Appendix 1

1 month 3 months 6 months 9 months 12 months VND 59,000 VND 159,000 VND 289,000 VND 419,000 VND 599,000 (*) Note: The subscription plan supports an account to log-in his or her account via 5 different devices and simultaneous use the application on 2 different devices

12 months (plus 3 months free) VND 240,000 VND 1,440,000 VND 2,880,000 (*) Note: The subscription plan supports an account to log-in his or her account via 5 different devices and simultaneous use the application on 2 different devices

❖ Corporate segment The price per hotel or resort room will vary according to different deals but remains less than the price for individual segment

4.4.3 Potential Partnerships a Consumer electronics retail chain

− Dien May Xanh (1st priority because it is leading electronics store brand in Vietnam

2021 by number of stores • Vietnam: leading electronics store brands by number of stores 2021 | Statista)

− CMC Corporation (1st priority because of better reputation in the market)

− Shopee (1st priority since it is the most visited ecommerce and shopping website in Vietnam for August 2021 Top E-commerce And Shopping Websites Ranking in Vietnam [August 2021] | Similarweb)

4.4.4 Segregation of Duties for Each Strategy

Table 4.6 Segregation of duties for each strategy

No Strategy Main responsibility Supporting

Direct Sales Center Marcom Center Information Technology Center

2 Stabilization of current distribution network

Direct Sales Center Marcom Center

3 Development of niche products and services

Digital Products re Production and Content

Management Center Information Technology Center Business Development Center Marcom Center

Marcom Center Direct Sales Center

5 Establishment of alternate distribution channels

Digital Products Center Marcom Center

Direct Sales Center CRM Center

4.4.5 Strategy Roadmap and Action Plans for Center s in charge a Strategy roadmap

Figure 4.2 Strategy roadmap b Direct Sales Center

❖ Re-establish distribution network with Distributor Level 1 at provincial level, Distributor Level 2 at district level and ISP – Service Center at household business level

❖ Survey history of customer payments for subscription fee and design promotion campaigns that help to reduce customer attrition rate

❖ Work with Marcom and CRM Centers to set up loyalty customer programs aimed at increasing the number of repeat customers

Sales management responsibilities are assigned to the Sales Center, ensuring effective distribution channel management The Sales Regional Director assumes responsibility for Distributor Level 1, assisted by Area Managers Subsequently, Area Managers oversee Distributor Level 2, supported by Sales staff, ensuring comprehensive management and coordination throughout the distribution network.

❖ Start to operate a separate hotline for distributor network and set up KPIs for distributor care activities

❖ Cooperate with other businesses to design cross-sale product package to distributors

❖ Establish another Sales team to develop and manage ISP network

❖ Continue to complete the development of promotion campaigns and loyalty customer programs

❖ Make specific plans to visit and take care of Distributors

❖ Continue other tasks as specified in the roadmap

✓ 3rd and 4th Quarters of 2022: Implement approved programs and campaigns, monitor and make necessary adjustments c Digital Product Center

❖ Fill up required positions for the Center

❖ Complete the development of NETHUB and launch the application to the market

❖ Initiate talks with MIKGroup for OTT and Internet package

❖ Enter partnership agreement with MIKGroup to start providing the package to their projects

❖ Provide new contents to the subscribers

❖ Work with other corporations for the sales of OTT and Internet package d Marcom Center:

❖ Launch more programs to remind customers of AVG’s new brand identity

❖ Create viral contents attracting customer’s attention

❖ Design MKT materials to promote key selling points of AVG’s tradition products

✓ 1 st Quarter of 2022: Carry forward remaining tasks of the two projects

✓ The remaining Quarters of 2022: Support other Centers to perform MKT campaigns for newly introduced products and services e Business Development Center:

❖ Explore the option to promote sales via wholesale chains and online channels

❖ Initiate discussions with Dien May Xanh and Shopee

❖ Enter partnership agreement with Dien May Xanh and Shopee to start distributing AVG’s products and services

❖ The remaining Quarters of 2022: Evaluate sales results at Dien May Xanh and Shopee and recommend following action plans

CONCLUSION

ACHIEVEMENT OF EXPECTED GOALS

This was the very first time that I joined a strategy formulation mission; therefore, I decided to make every effort to effectively complete assigned tasks to reach the defined goals The initial goal was for me to have an adequate understanding of Vietnamese pay TV market overview I find myself successful in performing this particular responsibility since I did not only browse the Internet to find out information on the industry or collect internal reports but also directly participated in field trips to validate the data and information received or available online I went on two different field trips lasting one week each to visit twenty level

2 distributors in five best cities and provinces in terms of monthly sales turnover On the way, the team including me stopped by several families using AVG or any other brand’s outdoor TV satellite dish to interview Subsequently, I gained many valuable insights into what the Company is required to improve or embark on business activities missing compared to their competitors

Secondly, thanks to International Strategy lessons, I became proficient in applying a few tools and techniques enabling the process of logically tabulating facts and figures into useful information My recommendation on the use of these techniques including Porter’s five forces and SWOT analysis was highly appreciated by the team since it assisted us in clearly depicting the Company’s standing in the market and their gaps in comparison with other players in the market

Leveraging my project management expertise honed through the AMI Curriculum, I effectively identified actionable steps and organized them into strategic initiatives to enhance the company's product and service sales strategy The curriculum's comprehensive coverage empowered me with insights to identify interconnected actions, such as expanding the distribution network Furthermore, my project management skills enabled me to prioritize and group actions into a cohesive roadmap in alignment with the company's goals However, the development of the strategy roadmap was a collaborative effort, subject to group discussions and feedback from diverse perspectives before finalization and submission for review.

AREAS OF IMPROVEMENT FOR THE INTERNSHIP

Despite I have fully achieved all the goals for the internship, there are several areas of improvement as follows:

5.2.1 An Understanding of the Company’s History and Operational Principles

To understand intensely about a company’s history and set of unwritten operational principles required an adequate time span rather than only a few months This lack of insights could have a serious possibility of formulating several initiatives which are not practical given the Company’s situation For example, the recommendation of setting up online channels of distributing the Company’s products and services might have difficulties since operational capabilities had yet to adapt with requirements for fast speed of resolving an online sales order

In another aspect, the Company’s core system could not be customized to serve arising requests for customer data storage or inquiry Besides, it was required to find out whether any similar initiative had been identified and applied in the past Learning from failure or success could provide valued lessons learned to a viable strategy

5.2.2 The Formulation of Supporting Business Case

The inclusion of a business case in proposed initiatives is crucial for the company's management to evaluate and prioritize actions based on their financial and non-financial benefits This allows management to make informed decisions about resource allocation.

5.2.3 An Analysis of Content-oriented Strategy and Customer Personas

Through a report issued internally by the Head of Production and Content Management Center, content factor plays a significant role in differentiating services among pay TV providers in the market Besides pricing and customer service strategies, all pay TV providers have been in tough races in terms of exclusive contents to attract new subscribers or existing subscribers from their competitors An explicit example of this can be VieOn’s investment in exclusively purchasing the right to broadcast Penthouse – a South Korean television series This has made a surge increase in VieOn’s subscribers, which set a clear example for any Company like AVG to follow However, this aspect was not addressed thoroughly in this internship report

5.2.4 Limited use of Strategy Development Techniques

During International Strategy AMI Curriculum, I was introduced a lot of models, matrix arrangements and techniques to analyze all determining factors to the establishment of a business strategy Nevertheless, limited period of internship required me to prioritize the application of the most suitable analyses which were Five Porter’s competitive factors, SWOT and Stakeholder matrix Insufficient assessment of every key aspect of the Company’s internal and external factors impacting their business and operation activities might lead to improper recommendation of proposed strategies Therefore, if longer time-span of the internship were allowed, I would exploit the use of additional supporting tools for example VRIO Analysis as briefly described in Appendix 2.

FURTHER RECOMMENDATIONS TO THE COMPANY

Currently, the Company’s CEO directly manage Direct Sales Center with the support of three acting Regional Sales Heads However, two of these three Sales Heads were temporarily promoted from the position of Area Sales Managers Therefore, there is a need of recruiting a Sales Director who has required skills and expertise to lead nation-wide sales and distribution activities and report to the CEO for escalations

Additionally, the Company’s Management should consider the selection of another Chief Technology Officer (CTO) for NETHUB since the current CTO, though devoted and experienced, has been working on traditional TV technology, not the OTT platform Due to weak capabilities of the technology team, the Company has yet to launch NETHUB, which has created many difficulties for business teams to promote the Company’s products and services

5.3.2 Improvements for Brand Awareness among Customers

During my field trip, to my surprise, when asking many customers using DTH service whether they know about AVG, I received their response of not knowing this brand-name but

An Vien TV's fragmented marketing efforts, such as replacing distributor signboards and conducting separate branding and communication programs, fail to effectively promote customer brand awareness Instead, the company should implement a comprehensive campaign that unveils its new brand identity, AVG, as the successor to An Vien TV, conveying a clear message that AVG represents the present and future This strategic approach will significantly enhance brand recognition and customer engagement.

5.3.3 Enhancements of Customer Care Activities

As shown in Chapter 1, the Company’s number of subscribers have experienced a downward trend To retain current subscribers as well as attract new ones, it is suggested that AVG focus on post-sales customer care activities For pay TV market, customers do not only buy a product but also services attached to it Therefore, post-sales activities including loyalty customer and maintenance support are considered two determining factors when customers decide the selection of a pay TV service However, AVG has a history of relying completely on their distributors to take care of the customers, which has led to the fact that their subscribers do not know about the existence of this Company but the distributor that used to sell them the product and collect subscription fees on a monthly basis

5.3.4 Application of Excellent Core System

AVG’s operations have been supported by BSMS – their core system for over ten years However, through an internal report, there are many advanced features of this system which have yet to be in use If applied, these features including campaign management and lead management modules can make the Company’s Sales and CRM operations much more efficiently

5.3.5 Serious Focus on Content Creation and Exclusive Supply

In general, Vietnamese pay TV market currently is lacking contents under educational category If AVG knows how to exploit this area, the Company can improve their present business performance In the context of Covid-19 pandemic, many people prefer attending online AMI Curriculums or providing their children with educational programs instead of allowing them to play online games or watch cartoons.

CONCLUSIVE PART

4 months of internship at Management Office of AVG is one of the most exciting and meaningful experience in my working life It has given me a great opportunity to understand better about the Company where I work and my love for this working environment has increased greatly Besides, I treasure every endeavor of the people who built up all of these legacy systems, products and services so that we can have a solid foundation to promote the business further However, I could not have been given this fantastic opportunity if it had not been for the MASTER DÉLOCALISÉ “AFFAIRES ET MANAGEMENT

INTERNATIONAL” from Université Nice Sophia Antipolis / Thang Long University Truly

46 from the bottom of my heart, I would like to express my heartful appreciation to Mr Nam – my instructor and all Professors of the two universities for their substantial assistance in equipping me with not only theorical knowledge but working method advice so that I can deliver valuable outputs to the Company Certainly, there are improvement areas which I believe I will be able to address when returning to my previous position

2 Dân số Việt Nam: Thứ hạng và quy mô dân số của các tỉnh thành phố (24h.com.vn)

3 Việt Nam hiện có bao nhiêu hộ gia đình và trung bình mỗi gia đình có bao nhiêu người? (giadinhmoi.vn)

4 Thu nhập bình quân của Việt Nam khoảng 4,2 triệu đồng/người/tháng (baotainguyenmoitruong.vn)

5 Authority of Broadcasting and Electronic Information 2021 Pay TV Report 2020

6 Danh sách các doanh nghiệp cung cấp dịch vụ truyền hình trả tiền năm 2021 (Tính đến tháng 9/2021) (abei.gov.vn)

7 Cuộc đua nghẹt thở của dịch vụ truyền hình Internet (tinnhanhchungkhoan.vn)

Table 4.1 Opportunities and Threats to AVG 28

Table 4.2 AVG’s Strengths and Weaknesses 30

Table 4.5 Segregation of duties for each strategy 38

Figure 1.1 Strategic partners of AVG 2

Analog Television: an outdated technology which uses analog signals to transmit audio and video contents With this technology, audio and video signals are broadcast similarly to real audio and video contents

Digital Terrestrial Television (DTT): a technology in which land-based broadcasting of digital television contents from television stations over radio waves to customer households This technology is the replacement of traditional analog television To use it, customers are equipped with an antenna and a digital set-top-box to encode signals

Direct to Home (DTH): the method of delivering television services directly to consumer households through the use of a dish antenna or parabolic reflector installed outdoors facing the satellite’s direction

Cable Television: a method of providing television services to customer households by means of radio frequency signals delivered via coaxial or fiber-optic cables

Mobile Television: a process of broadcasting television services on handheld or mobile devices

Over-the-top (OTT): any media streaming service that provides customers with television and video contents over the Internet

Android TV boxes: a type of streaming device which can be plugged into any television set for households to watch video streaming contents

Appendix 1: COMPARISON OF COMPETITOR’S PRICE RANGES

1 OTT: The survey was conducted on 10 July, 2021

VTV Cab ON FPT Play ClipTV VieOn

1 Standard Entirely Free for subscribers

Free for 1 st month of subscription

League, VTV Cab football channels and contents provided by QNET

Not inclusive of QNET channels

Not inclusive of VLeague and VTVCab football channels

Not inclusive of TheThaoTV and

2 Internet and OTT Package: The survey was conducted on 30 July, 2021

1 Viettel VND 220,000 VND 260,000 40 Mbps 6 months plus 1, 12 months plus 2 or 3

2 VNPT VND 219,000 VND 269,000 50 Mbps 6 months plus 1, 12 months plus 3

3 FPT VND 240,000 VND 280,000 45 Mbps 6 months plus 1, 12 months plus 2

VND 220,000 VND 260,000 90 Mbps months plus 1, 12 months plus 3

Appendix 2: RECOMMENDED VRIO ANALYSIS FOR AVG

Value Rarity Costly to imitate

Investment by the owner of a prestigious bank

Yes Yes Yes Yes Competitive parity

Network Control System (NCC), 19 high- powered stations and 13 low- powered stations

DTT and DTH devices stored in the warehouse

Yes Yes Yes Yes Sustainable competitive advantage Tangible resource Network of

Yes Yes Yes Yes Sustainable competitive advantage Tangible information system

Billing and Subscriber Management System (BSMS)

Yes No Yes Yes Temporary competitive advantage

Brand-name Yes Yes No Yes Unused competitive advantage Intangible resource

Product quality Yes Yes No Yes Temporary competitive advantage

Tiêu đề	Pay Television Products and Services Sales Strategy in Audio Visual Global (AVG) Company
Tác giả	Nguyen Thi Dieu Hong
Người hướng dẫn	Vu Hoang Nam, PhD, Cap Thi Thu Huyen
Trường học	Universite Cote D’Azur
Chuyên ngành	International Trade
Thể loại	Internship Report
Năm xuất bản	2021
Thành phố	Hanoi

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