Building a strategy to improve the business efficiency of fixed broadband service business at viettel hoa binh = xây dựng chiến lược nâng cao hiệu quả kinh doanh dịch vụ cố Định băng rộng tại viettel hoà bình

Building a strategy to improve the business efficiency of fixed broadband service business at Viettel Hoa Binh = xây dựng chiến lược nâng cao hiệu quả kinh doanh dịch vụ cố định băng rộng tại Viettel Hoà Bình

INTRODUCTION

Research rationale

Following the inevitably trend, the world is changing strongly in the 4.0 revolution, digital transformation in all areas of life Science , engineering and technology also started its 4th revolution Everything originates and fulfills the need of people for a more convinient and modern life One of the technology and service industries that is experiencing great growth in recent time both in the world and Vietnam is telecommunication and notably, the explosion of the Internet Vietnam has one of the fastest-growing telecommunications infrastructure and telecommunications markets in ASEAN and among developing countries According to Singapore's statistics, compared to other countries, Vietnam has the 8th largest number of Internet users in Asia, ranked 3rd in Southeast Asia (after Indonesia and the Philippines) and currently ranked 16th in the top 20 countries with the most Internet users in Asia Vietnam's Internet service market is considered to be the market with the most potential for development in Asia In 2020, Vietnam's Internet continued to develop and had positive changes based on the achievements of previous years With a population of 96.97 million and an urbanization rate of 35%, the number of Internet users in Vietnam in 2021 accounts for 73% of the population To be in the top 10 countries with the proportion of Internet users, Vietnam needs to reach at least 80% of the population using the Internet, or about 77.6 million users (The White Book on Vietnamese E-Business,

Fiber-optic Internet services (telecommunications enterprises called fixed broadband services) are currently provided by many businesses such as VNPT, Viettel, FPT For Viettel, although the service was launch later, but only a short time, Viettel has affirmed its position with the numbers of subscribers and coverage area continuously increasing day by day, hour by hour Especially in the field of providing fixed broadband services, Viettel has become the largest fixed broadband

2 service provider in Vietnam with 41.8% market share 1 Consumers benefit from Viettel's strong development, major suppliers no longer have a monopoly but must conduct competitive strategies to maintain and continue to develop Accordingly, the breaking of monopoly is a race for price, preferential strategies to attract more and more customers from carriers, customer benefits are increasing in both quantity and quality Therefore, more and more customers have the opportunity to interact with the service

So how can Viettel achieve this? First of all, it was necessary to devise the right business strategies and make good use of resources to quickly implement that strategy successfully, along with other factors such as politics, law as well as the development of the economy Viettel has quickly established branches in provinces/cities, districts across the country, as well as in Hoa Binh to exploit telecommunications service business With a team of enthusiastic young staff, along with the leadership of the Group and the Corporation, Viettel Hoa Binh Branch has achieved great results in scale as well as depth, is the No 1 telecommunications service provider in Hoa Binh province (source: Report on production and business plan and unit construction in 2023 Viettel Hoa Binh has been approved by the General Director)

Currently, Viettel Hoa Binh is the number one telecom operator in terms of telecommunications market share (both subscribers, network infrastructure and revenue) in Hoa Binh province However, with the increasingly fierce competition between competitors, the competitive market is increasingly fierce In order to maintain the No 1 position in terms of both subscribers, network infrastructure and revenue, it is necessary to continue growing in proportion to the current scale (infrastructure, subscribers, revenue), requiring Viettel Hoa Binh to have the right strategy and solutions to achieve its goals With the desire to contribute to finding solutions to the above challenges, I chose the topic: "Building a strategy to improve the efficiency of fixed broadband service business at Viettel Hoa Binh

1 https://www.qdnd.vn/giao-duc-khoa-hoc/tin-tuc/viettel-chuyen-dich-thanh-cong-tu-nha-cung-cap-vien- thong-sang-nha-cung-cap-dich-vu-so-648884

" as a thesis research topic that contributes to the business development of Viettel

Research purpose of the study

General objectives: Based on the study of theory and practice, analysis and assessment of the current situation, the thesis details the factors that impact and affect business performance, thereby proposing a number of solutions and strategies to improve the efficiency of Viettel's fixed broadband service business Specific objective is to s are:

- Systemize, contribute to clarify the theoretical basis of business performance of the enterprise

- aAnalyze and evaluate the current situation of the business performance of fixed broadband services of Viettel Hoa Binh in the period 2020-

- Develop a plan to maintain the existing customer base, expand and develop a new set of customers to reach the main goal of increasing revenue, and devise a strategy to improve business efficiency of fixed broadband services of Viettel Hoa

Binh until 2023 With specific criteria as follows:

+ Total number of newly developed subscribers: 15,209 TB, up 72% over the same period in 2022

+ Service revenue: VND 134 billion, up 16% over the same period in 2022

+ Ensure progress on troubleshooting time compared to KPI Specifically:

Processing in 03 hours reached 60.2% The processing progress in 10 hours reached

76.5% and the processing progress in 24 hours reached 96%

+ Ensure the customer satisfaction rate in customer care and complaint settlement reaches 100%

-+ Xây dựng kế hoạch nhằm gìn giữ tập khách hàng hiện đang có, mở rộng phát triển thêm tập khách hàng mới để đi đến mục tiêu chính là tăng doanh thu, đưa ra chiến lược nâng cao hiệu quả kinh doanh dịch vụ cố định băng rộng của Viettel

Hòa Bình đến năm 2023 Với các tiêu chí chụ thể như sau:

Formatted: Highlight Formatted: Justified, Indent: First line: 0.5" Formatted: Highlight

+ Tổng số thuê bao phát triển mới: 15.209 TB, tăng trưởng 72% so với cùng kỳ năm 2022

+ Doanh thu dịch vụ: 134 tỷ đồng, tăng trưởng 16% so với cùng kỳ năm

+ Đảm bảo tiến độ về thời gian xử lý sự cố so với KPI Cụ thể: Xử lý trong 03h đạt 60,2% Tiến độ xử lý trong 10h đạt 76,5% và tiến độ xử lý trong 24h đạt 96%

+ Đảm bảo tỷ lệ mức độ hài lòng của khách hàng trong công tác Chăm sóc khách hàng và giải quyết khiếu nại đạt 100%.

- Develop a strategy to improve the business efficiency of Viettel Hoa Binh's fixed broadband service until 2023.

Object and scope of the study

- Research object of the topic: is the business efficiency of fixed broadband services of Viettel Hoa Binh Branch, learn the successes, and analyze some shortcomings to come up with a strategy to improve the business efficiency of the Branch

- Scope of the research project

+ Scope of content: Research on contents related to the effectiveness of fixed broadband service business at Viettel Hoa Binh Branch

+ Research period: Analyze the current situation of broadband fixed broadband service business performance from 2020 to 2022 and propose proposals to 2023

+ Scope of research on space: At Viettel Hoa Binh Branch

Research question

Question number 1: What factors affect the fixed broadband service business in the enterprise?

Question number 2: What is the necessary strategy to improve the efficiency of fixed broadband service business of Viettel Hoa Binh Branch?

Thesis structure

In addition to the introduction, conclusion, categories, tables/figures, abbreviation, tables, the content of the thesis is presented in five chapters:

Chapter 2 Theoretical Framework of Research

Chapter 4 Research results and discussion

THEORETICAL FRAMEWORK OF THE RESEARCH

SOME CONCEPTS RELATED TO THE RESEARCH

2.1.1 The concept of service and service business

Service is a common concept in marketing and business There are many concepts used to define it According to Zeithaml and Britner (2000), “Service is the behavior, process, way of performing a certain task to create value for customers in order to satisfy their needs and expectations” Philip Kotler (2001) argues that: “Service is every action and result that one party can provide to the other and is mostly invisible and does not lead to ownership of something - Its product may or may not be associated with a physical product.” However, according to Philip Kotler (2013), “Service is every measure of benefit that one party can provide to the other and is mostly invisible and does not lead to the acquisition of something The act of the service may or may not involve the goods in its physical form.” From the above different perspectives, I can give the definition of services as follows: “Services are human activities centralized in invisible products to meet the needs of daily living and production of people” The service's business is a term that refers to a business that does business but does not produce tangible goods Service enterprises operating services directly to consumers, other companies and businesses The service industry operating in the market has many interactions that also operate in the same way Services are intangible and only appear when the consumer has a need Therefore, the nature of this type of business is very different from other types of business This is an area where there is never a lack of demand, where the need to supply is often indispensable According to Luu Van Nghiem (2008): The service is a "special product" with 4 characteristics such as invisibility, inconsistency, inseparability and cannot be stored It is these characteristics that make services difficult to quantify and unrecognizable with a normal look

2.1.2 The concept of broadband fixed services in the field of Telecommunications

A basic telecommunications service is a service that instantaneously

7 transmits telecommunications services over a telecommunications network or the Internet without changing the type or content of information It includes: Telephone service; Telegraph service; Telex service; Fax service; Private channel rental service; Data transmission service; Television, photo and audio transmission service; Electronic newspaper transmission service; Mobile phone service; Messaging service (Circular 05-2012-TT-BTTTT)

Manufacturer – Supplier of telecommunications equipment

Operator – Provider of telecommunications services

Figure 2.1: Diagram of the relationship between customers, telecommunications enterprises and telecommunications equipment suppliers

* Services in the field of telecommunications:

Value-added services are services that increase the value of information of service users by perfecting the type and content of information or providing the ability to store and restore information on the basis of using Telecommunications or Internet networks It includes: Electronic mail services; Voice mail services; Storage services, information provision; Internet services: electronic mail, data file transfer, remote access, access to databases by different methods

Internet connection service is a service that provides agencies, organizations and enterprises with the ability to connect to each other and to the Internet It includes: Internet Connection Services; Internet Access Services; Internet Application Services Thus, fixed broadband telecommunications service is a type of telecommunications service that allows users to carry out the process of transmitting and exchanging information by special terminals (including a mobile phone, computer, telecommunications equipment ) Through the decoding of the

8 electronic signal of the radio communication system, at a time under the coverage of the service provider, the service user can actively exploit the use of this service Broadband fixed information services can be classified into four broad groups by connection: media, Internet, text, and content

Table 2.1: Types of fixed broadband telecommunications services

Internet access services are important services, bringing the main source of revenue for fixed broadband telecomunication businesses Internet service is characterized by real-time and two-way interaction In addition to the features of traditional internet services such as information search services, data transmission, and high-end services such as channel leasing with businesses and large corporations, accessing the encryption table of all information in all areas of social life, initialized through the website It exchanges all activities and fields in economic life online wherever there is a fixed broadband network Fixed Broadband Telecommunications Services is a special business that not only provides customers with direct use but also the infrastructure for the development of other service activities and commodity service activities It is the infrastructure for other economic sectors to develop

Firstly, fixed broadband telecommunications services can access and receive communications anytime, anywhere It allows users to actively carry out and receive information, work at any time, so it gradually becomes an essential communication tool of the people

Secondly, fixed broadband information services are highly secure because the information transmitted is encrypted This satisfies the high demands of communication Customers can be completely assured that information will not be leaked to the outside

Thirdly, Fixed Broadband Communications Service is a modern communications service In addition to the high quality of data transmission, fixed broadband service is always the most stable telecommunications service in terms of quality with a variety of other utility services such as: Internet access, data transmission, chat, exchange rate information update, weather, securities, sports news In addition, fixed broadband service can be connected to peripheral devices such as computers, fax machines, printers This connection brings convenience, saves time, optimizes human resources and costs

Fourthly, the price of fixed broadband information service + information transmission equipment is higher than the price of standard communication service, the main alternative product This is due to the investment in network construction and the high cost of technology and equipment However, the cost to operate and manpower is low, more optimal than other forms of communication

Fifthly, fixed broadband information service products are regional in nature The demand for fixed broadband services of different regions is not the same Areas with better geographical position and developed socio-economic conditions have great demand for fixed-band information Such regional nature will form a very different supply-demand correlation on the use of mobile, so it is difficult to reconcile products from where there is low cost, low selling price to where there is high cost, high selling price as commodity products This requires broadband fixed information enterprises to have a thorough study of the regions to have appropriate business policies

Sixthly, the decision to purchase fixed broadband information services is more complex than the decision to purchase tangible products because it is difficult to assess the quality of services On the other hand, the issue of service protection is more difficult than product protection, because the services themselves are more easily to be copied Therefore, businesses often promote the development of

10 services to prevent competition, copying and imitation of competitors

2.1.3 The role of developing a fixed broadband service business

- For customers: The role of developing a fixed broadband service business

Moreover, those needs are met by personalized products for each customer class (collectives of corporate customers, individual households ) The introduction of fixed broadband services has really contributed to improving the intellectual level, customers are exposed to science and technology, the distance between people is closer, so it can be said that when telecommunications services are born, it is a tool to connect all distances

- For businesses: Fixed broadband services provide information to help the decision-making process and make business decisions quickly and conveniently Thanks to the development of enterprise information technology, there are many opportunities in business cooperation to promote the development of businesses in particular and the economy of the country in general

- For telecommunications service businesses: The technology and deployment of fixed broadband telecommunications enterprises create differences between telecommunications enterprises, creating a brand for that enterprise In the field of telecommunications and information technology, it is not the older enterprise that will always dominate the market, so in the telecommunications and information technology world, enterprises must always innovate in technology with thinking and breakthrough ways to create products to meet the increasing demand of consumers Thus, to occupy customers and have a foothold in the market

CONCEPT OF BUSINESS STRATEGY

There are many different definitions of strategy in business Andrews (1987) argues that a corporate strategy is related to the culture of the company and the interests of its stakeholders and he states that “Corporate strategy is the pattern of decisions in a company that determines and reveals its objectives, purposes, or goals, produces the principal policies and plans for achieving those goals, and

14 defines the range of business the company is to pursue, the kind of economic and human organization it is or intends to be, and the nature of the economic and non- economic contribution it intends to make to its shareholders, employees, customers, and communities” (Andrew, 1987, The concept of corporate strategy, Chapter 2, page 13) Corporate strategy is an organizational process that is inseparable from the structure, behavior and culture of the company in which it takes place Thus, a corporate strategy can be identified by four components: market opportunity, corporate competence and resources, personal values and aspirations, acknowledged obligations to segments of society other than stockholders Porter (1996) states that strategy is choosing to perform activities differently than rivals do, and he defines that “Competitive strategy is about being different, it means deliberately choosing a different set of activities to deliver a unique mix of value” (Porter, 1996, What Is Strategy? Harvard Business Review 74, No 6, page 64) Different activities of the company are closely linked together to create a unique value for customers that is difficult for competitors to imitate, and these will create unique competitive advantages for the company Recently, some scholars have also introduced new perspectives on strategy Johnson (2015) simply defines that “Strategy is the long- term direction of an organization” (Johnson et al., 2015, Exploring Strategy: Text and Cases, Chapter 1, page 3) Wheelen (2018) defines that “A strategy of business forms a comprehensive master approach that states how the business will achieve its mission and objectives, and it maximizes competitive advantage and minimizes competitive disadvantage” (Wheelen et al., 2018, Strategic management and business policy: globalization, innovation and sustainability, Chapter 1, page 50) Although the concepts and definitions of strategy are varied, most scholars have shown a common viewpoint that the strategy is an integrated set of decisions, plans and actions to be implemented for maximizing the company’s competitive advantages to achieve long-term objectives

The basic contents of a strategy statement include mission, vision, objectives, scope and advantage (Johnson, 2014) Mission relates to the long-term and ambitious goals of the company To understand the mission, we need to answer the

15 question “what business are we in?” and all activities of the company must be focused on it Vision is the future image of the company that the strategy wants to achieve in a given time It is an aspiration that can help mobilize the energy and passion of all members of the company To understand the vision, we need to answer the question “what do we want to achieve?” Objectives are more precise and quantifiable statements of the company’s goals that may be related to revenue, market share, profit etc To understand the objectives, we need to answer the question “what do we have to achieve in the upcoming period?” A company’s scope refers to three dimensions: customer segmentation, geographical location and extent of internal activities The advantage describes how the company will achieve the objectives and refers to the competitive advantages of the company over its competitors.

STRATEGY LEVELS

Inside a company, strategies can exist at three main levels: corporate strategy, business strategy and functional strategy (Johnson et al., 2014; Wheelen et al., 2018) A company can use all three types of strategy simultaneously A hierarchy of strategy is a nesting of one strategy within another so that they complement and support one another (See Figure 2.2) A corporate strategy describes the overall development directions of a company and the businesses that the company will do A corporate strategy is holistic and inclusive at the company level, which can create competitive advantages by combining products and services in different business sectors to provide better values to customers, for example, a multi-service company can bundle services, upselling, cross-selling with lower prices or better customer experiences Alternatively, an e-commerce company can expand and combine with a logistics business and a digital payment business to create convenience for customers when shopping The business strategy emphasizes the competitive position and the competitive advantages of a business unit, it focuses more on products or services in the specific industry or market segment Business strategy may fit within the two overall categories: competitive and cooperative strategies Business strategy will identify key competitive advantages

16 that help the company become different from competitors in providing products and services to customers The cooperative strategy is used in situations where the company wants to outsource some non-core competencies or functions, or leverage better capabilities from its partners which are not in direct competition for customers The functional strategy focuses on maximizing the specific resource productivity to achieve business unit objectives It provides and maintains an internal competency which forms a competitive advantage in the business sector, for example, it might be the human resource strategy or the financial strategy or the research and development strategy etc In general, function strategies must support to implement the business strategy, then business strategies must support to implement the corporate strategy

Figure 2.2 Hierarchy of Strategy (Johnson et al., 2014)

TYPES OF COMPETITION STRATEGIES

Based on the competitive scope and competitive advantage, Porter (1998) proposed four types of generic competitive strategies in an industry, which include

17 cost leadership strategy and differentiation strategy for a broad target market, cost focus strategy and differentiation focus strategy for a narrow target market The generic competitive strategies are shown in Figure 2, each of them is a combined choice of the type of competitive advantage and the scope of a strategic target

Figure 2.3 Generic competitive strategies (Porter, 1998)

With the cost leadership strategy, the company must be the supplier with the lowest price for goods or services in an industry Typically, to pursue this strategy, the company must have a cost-based competitive advantage that is based on economies of scale or privileged access to raw materials etc The company often needs large investments in infrastructure and an optimal operating process to produce in massive quantities at the cheapest price in the market

With the differentiation strategy, the company needs to provide products or services which are different from its competitors or which offer unique values to customers that its competitors cannot provide Typically, the company pursuing this strategy needs to invest in research and development to provide new products and services at a higher price Companies may pursue the differentiation strategies which might be based on one or more factors such as product ecosystems, product

18 attributes, the distribution system, the marketing approach, after-sales services and so on

A focus strategy starts with choosing a niche market or a customer segment or which the company can offer the best product or the best service Its two variants include cost focus strategy and the differentiation focus strategy With a focus strategy, the company can provide better values due to certain specialties in the segment of the market or the customers it serves, and these competitive advantages will be difficult to achieve when scaling up The company must either offer the lowest priced product or offer a differentiated product with a unique value to customers in the selected segment The company should focus on exploiting the competitors’ weaknesses and under-performance in meeting the needs of a specific customer segment, which opens the possibility for differentiation focus The company can exploit the weaknesses of competitors’ over-performance with a higher cost when meeting the needs of a particular customer segment, and this is an opportunity for the company to offer a lower price for this customer segment The company can choose the right competitive strategy to maximize its value in the long-term that is based on the competition in the industry in which it operates as well as its own characteristics The company must find out its own key competitive advantages to maintain a strategic position over competitors for as long as possible In addition, the strategy of the company should be updated to adapt to market changes or the company’s growth stage.

SWOT Analysis

SWOT is a framework used to identify the key external factors (opportunities and threats) and the key internal factors (strengths and weaknesses) to formulate a strategy for a company (Pickton & Wright, 1998; Johnson, 2014) Analyzing external factors helps the company seize opportunities and minimize threats while analyzing internal factors that help the company enhance strengths and overcome weaknesses via market opportunities and threats According to the specific situation, the company can choose an appropriate strategy which combines internal and external factors, such as SO strategy (Strengths and Opportunities strategy),

WO strategy (Weaknesses and Opportunities strategy), ST strategy (Strengths and Threats strategy) and WT strategy (Strengths and Threats strategy) So, strategy aims to seize any market opportunities to promote every internal strength WO strategy aims to exploit potential opportunities and overcome internal weaknesses

ST strategy aims to use every internal strength to overcome market threats WT strategy aims to overcome internal weaknesses and limit potential threats Finally, the SWOT analysis will help the company choose and implement a consistent strategy and actions to achieve long-term goals

The external factors might come from the macro-environment or the industry environment The PESTEL framework can be used to analyze the macro environment which includes six factors: political, economic, social, technological, environmental and legal (Aguilar, 1967) Political factors may include political parties, government structure, government policy, public ownership rights, international trade agreements, and so on Economic factors may include GDP growth rate, unemployment rate, inflation rate, interest rate, tax policy, currency exchange rates etc Social factors may include culture, demographics, lifestyles etc Technological factors may include technology trends, patents, production capacity etc Environmental factors may include geographical location, weather characteristics, environmental pollution, climate change etc Legal factors may include commercial law, labor law, business regulations etc PESTEL analysis helps to identify issues which can affect your business at the macro level so that the company can propose new policies to the government (Stuiver et al 2016; Song et al., 2017), or explore opportunities and identify challenges when deploying new business models (Zhao & Pan, 2015)

For the industry environment, we can use Michael Porter’s Five Competitive Forces method to analyze the competition which comes from the bargaining power of buyers, bargaining power of suppliers, existing competitors, the threat of substitutes and the threat of new entrants (Porter, 2008) The buyers may negotiate discounts if they have more options to choose or low conversion costs The suppliers who have a monopoly advantage or have a large number of customers can negotiate to increase prices Competitors compete for market share by providing

20 cheaper or differentiated offers Substitutes give customers more choices and it can attract customers with a low conversion cost New entrants can enter the market, attract a segment of customers with specific advantages such as a low price, or bring a new experience to customers In each industry, the competitive situation can be very different and the company must have a differentiated strategic position and competitive advantages

For the internal factors, we can use Porter’s Value Chain to analyze internal activities that include primary activities and support activities (Porter, 1998) Figure

3 shows the generic value chain that was proposed by Porter, which describes the relationships between activities in the company and shows how values/ products are delivered to customers The primary activities include inbound logistics, operations, outbound logistics, marketing & sales and service The support activities include firm infrastructure, human resource management, technology development and procurement

Figure 2.4 The generic value chain (Porter, 1998)

Figure 2.5: Model of business environment factors of fixed broadband telecommunications enterprises

Source: (Porter, 1998) 2.5 3.2.2 System of indicators to evaluate business performance of enterprises operating in the field of telecommunications

* Revenue: is an important indicator reflecting the size of the business The increase in revenue shows that the business scale of the Enterprise increases, showing the growth and development speed of the Enterprise In order to evaluate the business activities of the Enterprise, people often compare the revenue over the years, monitor the fluctuations of the revenue in order to take timely measures to improve the business efficiency of the Enterprise We see the fluctuation of revenue through the revenue growth rate:

Competitive firms in the industry

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* Profit: The purpose of business is profit, to increase profits businesses often maximize profits and minimize costs This is an indicator that reflects whether the enterprise's business operations are effective or not, the higher the profit, the more profitable the business is and this is steady business development Profit is determined by the formula:

In which: Profit is gross profit, profit before tax or profit after tax, depending on the purpose of analysis

* Labor efficiency indicator: This metric shows how much the average labor productivity per person per year is

* Telecommunications market share: Market share is the basic indicator to compare the economic scale and position of mobile telecommunications enterprises in the market Market share is calculated by the number of subscribers of the enterprise to the total number of subscribers of all enterprises in the province

Market share is determined by the formula:

Number of subscribers of the enterprise x 100%

Total subscribers of all enterprises

In which: Market size = Number of products and services sold in the market x Average selling price in the market The growth rate of market share is determined by the formula:

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* Average revenue per subscriber (Average Return Per User – Arpu)

This index is especially important in the telecommunications industry, as it comprehensively reflects the operational performance of the business This index can be used as an important factor when comparing telecommunications businesses with each other; can also be used as an information base to help businesses make decisions about the type of service that is stalled

The ability to maximize profits and minimize service delivery to the end customer is especially important for these businesses Because telecommunications businesses are service providers, rather than producers of specific goods; Investors always want to know the profit and profit margin per subscriber, in order to assess the ability to utilize the resources of the business Arpu is usually calculated by dividing the total revenue earned by the entire subscription by the number of subscribers during the research period; can be month, quarter or year Because the number of subscribers can change from day to day, businesses often calculate or estimate the average number of subscribers during the period to come up with the most accurate Arpu

Arpu is determined by the formula:

* Rate of subscribers leaving the network (Churn Rate): This index is used to measure the number of customers not using the service during the period, and is usually reported on a quarterly basis This can be considered as an indicator of customer dissatisfaction with the competitor’s service, its competitiveness, its attractiveness (price, quality or marketing); or the characteristics of the subscription life cycle

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Drop-out rates can be reduced by creating barriers that prevent customers from switching providers (e.g contractual service commitments, use of proprietary technology, services added value); or through maintenance activities such as improving customer loyalty However, the rate of leaving the network may not fully reflect the fluctuations of subscribers, when there is a case that a large number of customers do not use the service but then return in the next period; This is also very common in the telecommunications industry

LITERATURE REVIEW

The 4.0 revolution requires all sectors to have specific orientations and clear strategies The field of telecommunications is no exception, and the study of the telecommunications service business in the current period is extremely important, especially in each stage of the industrial revolution 4.0 to keep up with the trend of the market In order to be well prepared for the construction and development of telecommunications infrastructure to ensure high efficiency, there have been many agencies and organizations (enterprises) spending money to research to improve the efficiency of telecommunications service business at those agencies or organizations, especially technologies to promote high-speed fiber optic cables Some research works on this topic are as follows:

Master thesis by Ngo Van Tuyen, 2020 research on "Improving the efficiency of mobile service business at Viettel Hung Yen branch" with the goal: Analyzing the current situation and efficiency of telecommunications service business from which to propose solutions to improve the efficiency of mobile telecommunications service business at Viettel Hung Yen The thesis has achieved results such as: systematizing the theoretical and practical basis; analyzed the current situation of the unit's business of mobile telecommunications products and services; proposed solutions to improve the efficiency of mobile telecommunications service business at Viettel Hung Yen

Master thesis in Economics by Le Hoang (2015), with the topic: Solutions to improve the efficiency of mobile service business at Viettel Phu Tho branch, used research methods, including: collecting, synthesize, analyze and compare, do SWOT analysis to answer the question of what solutions to research to improve the efficiency of mobile service business at Viettel Phu Tho branch in the coming time Research results have suggested 6 groups of solutions, including: Marketing-related solutions,

Business strategy solutions, Cost saving and cost effective solutions, Research solutions Research on competitors in the mobile market, Solutions on human resources and improve labor productivity, Solutions to organize and execute business plans The master thesis of author Tran Huu Vinh (2020) with the topic "Factors affecting customer satisfaction using VNPT's fiber optic Internet service in Quang Tri province" has used the following methods: methods of statistics, comparison, collection and analysis of survey data on customer satisfaction; verify the reliability using scale; provide factor equations, correlation regression equations and compare the mean of the population with the factors Proposing solutions to affect each factor to improve customer satisfaction using FiberVNN Internet service of VNPT Quang Tri

Master's thesis by Dinh Tien Thinh (2014) with the topic: "Some measures to improve Viettel's culture in order to improve the production and business efficiency of Viettel Hai Phong Branch" with the method of analysis, comparison to assess the current state of corporate culture Proving the logical connection between corporate culture and actual business activities at Viettel Hai Phong

Master thesis of author Tran Thi Phuong Ly (2019) with the topic "Analysis of factors affecting customer satisfaction when using FiberVNN optic Internet service at VNPT Thua Thien Hue branch" has use statistical methods, compare, collect and analyze survey data on customer satisfaction; verify the reliability of the scale; Give factor equations, correlation regression equations and compare the mean of the population with the factors Proposing solutions to affect each factor to improve customer satisfaction using Fiber VNN Internet service of VNPT Thua Thien Hue

The above research mentioned the theoretical and practical basis for the effectiveness of telecommunications service business in enterprises; analyzed and evaluated the situation of improving the efficiency of telecommunications service business in enterprises during the research period; the dissertations have identified the advantages that need to be promoted and pointed out the reasons that hinder the improvement of business efficiency in research enterprises; The dissertations all

27 propose solutions that need to be implemented in the coming time to improve business efficiency in research enterprises In addition to the successes, some research thesis have not really clarified the factors that affect the improvement of service business efficiency at the research unit; have not specified the relationship between the development strategy of the enterprise and activities to improve service business efficiency at enterprises, organizations or research units.

EXPERIENCE IN BUSINESS OF FIXED BROADBAND

2.7.1 Business experience of major telecommunications companies in the world and Vietnam

The World: Currently, there are about 650 telecommunications enterprises in the world with famous brands such as Vodafone (UK), Verizon (USA), China mobile (China) or Bharti Airtel (India) These are telecommunications enterprises with a large number of customers with extensive experience in business as well as management, for example, Bharti Airtel was established in 1995 to enter the telecommunications market in the context that India has abolished restrictions in the telecommunications industry The company targets poor or rural households who don't have access to mobile phones because their average income is just $2 a day Bharti Airtel wants to offer low fares to attract as many users as possible Instead of buying hardware, Bharti Airtel only buys operating capacity, so suppliers are motivated to build the most efficient network The entire technology segment is outsourced to IBM Bharti Airtel encouraged IBM to help it grow by paying a percentage of its revenue to IBM on a quarterly basis Call center operations and customer service are both outsourced

The company shares more than 100,000 base stations with other carriers rather than building its own They also partnered with two competitors to share investment costs and operate some equipment By 2002, Bharti Airtel understood that there was a conflict between customer demand and the capital requirements of a traditional telecommunications company Founder Sunil Bharti Mittal recalls: “We put in billions of dollars, but we only charged very low rates If we're going to make the

28 lowest bid in the world, what we need is the lowest cost in the world.” Facing these difficulties, the company has come up with a solution to strengthen cooperation in both design and operation The steps the company has taken include:

Hire Ericsson and Nokia to design, build and operate the network Bharti Airtel's ownership of telecommunications networks is expressed in its right to use network capacity when needed Instead of investing in building its own system, the company has outsourced to local "entrepreneurs" as service distributors Most of them are shops selling soap, shampoo or household necessities With their knowledge and reputation, they have helped Bharti Airtel build a reliable company in the hearts of millions of customers These strategies help the Company have time to focus on internal affairs such as financial management, legal, branding and marketing However, Bharti lacks one element, which is the right metric to help position the planning and execution process The initial management should be based on the average revenue per subscriber metric that is common in the industry But in the low-cost market, this doesn't make sense because the company's approach focuses on total sales rather than costs and return on capital The company advocates having the " lowest cost per Gb/Mb" in the industry So, they focus on profit per Gb/Mb To support that, the Company uses a dashboard that tracks gross profit, operating performance and return on capital expenditure As a result, Bharti Airtel is currently in the top 5 of the world's leading telecommunications operators with operations in 20 countries Despite the extremely low prices of services, the Company's return on assets (ROA) and equity (ROE) has for many years been consistently double that of other global business operators Bharti Airtel's development strategy has shown:

- It is fully possible to take advantage of relationships to acquire new capabilities as well as increase flexibility and efficiency in capital use;

- There is no need to follow common industry standards or practices

- Don't obsess yourself with so-called "core competencies" If good, it can be rented and not definitely owned to create a brand

With that, Bharti Airtel has become one of the largest telecommunications

In Vietnam: With a market of about 100 million people, Vietnam is currently one of the countries with the largest number of active domestic and foreign telecommunications enterprises in the world with 3 major carriers such as Viettel, VNPT FPT accounts for 92% of the market share and many small businesses such as CMC Telecom, Viettelco, Netnam In which: VNPT (Vietnam Posts and Telecommunications Group) is the first service provider, laying the foundation for the development of Vietnam's post and telecommunications industry

As a leader in the field of post and telecommunications in general and fixed broadband services in particular, VNPT quickly dominated the market with a monopoly position for a long time and occupied the No 1 position before 2018, being overtaken by Viettel No 1 in 2019 Currently, VNPT is the 2nd largest network operator in terms of market share of wired Internet services (with more than 5 million subscribers)

FPT (FPT Telecommunications Joint Stock Company), established in 1997, was a member company of FPT Corporation (the most reputable information technology corporation in Vietnam at that time) With its agility in the internet and online markets and the existing reputation of the information technology segment, pioneering in technology application (high-speed internet), FPT quickly dominated the market share in Hanoi, Ho Chi Minh City and other major cities and is a high- speed internet service provider with a market share just behind VNPT for nearly a decade Currently, FPT is the third largest network operator in terms of market share in providing Internet services

However, both VNPT and FPT, in the process of providing services have long overlooked rural areas, focusing on urban areas for development, unable to provide fixed broadband services to each and every household

Viettel Military Industry and Telecommunications Group did not operate in mobile services and fixed broadband services until 2004 As a telecommunications service provider, it was ten years behind VNPT Group Viettel has boldly invested in business to create a booming telecommunications market, from an unknown

30 business in the sector Over the past 2 years, Viettel has risen to become one of the leading telecommunications service providers in Vietnam, and has now risen to the

No 1 position in Vietnam Since entering the telecommunications market, Viettel has realized that if it wants to survive and develop, it must build its own network and be the network with the widest coverage With the bravery of the soldier who dares to make things happen, Viettel look for partners, buy goods in installments so that it can both invest and exploit, have a source of income to pay for equipment suppliers Applying knowledge to economic management, Viettel has accelerated capital turnover and used capital in the most effective way

Having built a network, Viettel has studied the market demand and apply supply and demand rules to provide product services in the market and compete with competitors Unlike previous carriers with a monopoly on pricing and demand for customers, Viettel has segmented individual customers or small and medium- sized enterprises to large-scale companies and administrative units to meet the tariff package in accordance with the needs of use With the position of a network operator following Viettel with the motto "taking the countryside around the city", service came to each household At that time, no network operator could learn and do the same This is what made a strong Viettel like today

One of the factors leading to the success of Viettel today is the drastic management of the Group's Board of Directors, which is the combination of management thinking and the decisiveness of the commander, many aspects in the process of developing business leaders Viettel has operated directly on the field, via video conference, minimizing the use of text and all employees understand that it is also the command of the commander (Source: Internet)

2.7.2 Some lessons learned from practice can be applied to Viettel Hoa Binh

From the reality in the process of becoming the leading telecommunications enterprise in the world and in Vietnam, the author draws some lessons that can be applied at Viettel Hoa Binh as follows:

First: Network infrastructure is always put on top, offering a wide-ranging infrastructure to 100 villages, communes and wards in the province The

31 telecommunications market always tends to change very quickly, so it is necessary to regularly assess and understand the needs of customers in the area, the telecommunications market at site, to have a panorama view of market fluctuations From there, regularly propose investment plans for materials, equipment, and infrastructure to ensure the fastest and best possible response to customers' needs

Second: When a wide network has been built up to each hamlet, commune and ward Viettel Hoa Binh needs to actively develop action plans in business activities, with the motto that the network goes first, sales follow Building distribution channels to villages, communes and wards, selling to individuals, households, and corporate customers In parallel with sales activities, regularly evaluate and analyze the market, propose products suitable for each class of customers such as individuals, small households, agencies, large organizations,… Make products tailored to the needs and usability of the customer

RESEARCH METHODS

RESEARCH METHODS DESIGN

In this thesis, I use the SWOT analysis method to clarify the key competitive advantages of Viettel Hoa Binh to formulate the strategy In the analytical framework put into use through the consultation process of local leaders and officials, experts revolve around the issues of strengths, weaknesses, opportunities and challenges for improving business efficiency of fixed broadband services at Viettel Hoa Binh branch Besides, the criteria to evaluate the effectiveness of the strategy are also applied for the analysis The results obtained here are through SWOT matrix analysis:

Table 3.1: SWOT Matrix SWOT Matrix

Viettel Hoa Binh is a business unit of Viettel Group, therefore the business strategy of Viettel Hoa Binh must align with the digital transformation strategy of Viettel Group In addition, to identify opportunities and threats, I will focus on analyzing the key external factors which may influence the formulation of the strategy, including market trends, technology trends, labor market and government policies To identify strengths and weaknesses, I will focus on analyzing the key internal factors that may influence the formulation of the strategy, including products & services, resources, human resources and infrastructure The key internal factors, SWOT analysis and the key competitive advantages will be also analyzed Finally, I will propose strategic goals, strategic shifts, strategic solutions and plans The research design is shown in Figure 3.1 as follows:

SYSTEM OF CRITERIA TO BE USED TO EVALUATE BUSINESS

Based on the research results of Chapter 2, business activities of enterprises not only stop at the formulation and implementation of business strategies but also evaluate results and business performance This is the last aspect in the business

35 activities of the Enterprise and is also a very important aspect Evaluation will be conducted not only after the implementation of the strategy, but also before and during implementation The aspects of the business performance assessment include:

-Determine the content that needs to be evaluated effectively in terms of quantity, quality and progress of implementation of specific goals

- Set up quantitative and qualitative standards and provide metrics to evaluate business performance

3.2.1 Methods of calculating business efficiency

Business efficiency of an enterprise, is a complex issue, related to all factors involved in the production and business process, enterprises can only achieve high efficiency when these basic factors used effectively In order to accurately assess and have a scientific basis for the efficiency of production and business activities of enterprises, statistics need to build a full and complete system of indicators that both reflect a synthesis, the profitability, the efficiency of each factor of production, each type of investment capital, to ensure the above requirements, statistics often use two general methods to evaluate operational efficiency in the business of the enterprise

First method: Efficiency of production and business activities is determined in the form of difference Formula for efficiency:

Efficiency of production and business = Outputs - Input costs

This method is simple, easy to calculate but has the most limitations It does not fully reflect the business quality, as well as the potential to improve the efficiency of production and business activities of enterprises, cannot be used to compare production and business efficiency between enterprises and within the enterprise itself, through different research periods

Second method: the efficiency of production and business activities reflects the profitability of the inputs of the production process This indicator reflects, to produce 1 unit of output we need how many input cost units From the above formulas, to determine the efficiency of production and business activities, it is necessary to determine exactly which indicators belong to input factors and which

36 ones belong to output factors, depending on the purpose of statistical research, select the inputs and outputs to compare accordingly

3.2.2 System of indicators to evaluate business performance of enterprises operating in the field of telecommunications

* Revenue: is an important indicator reflecting the size of the business The increase in revenue shows that the business scale of the Enterprise increases, showing the growth and development speed of the Enterprise In order to evaluate the business activities of the Enterprise, people often compare the revenue over the years, monitor the fluctuations of the revenue in order to take timely measures to improve the business efficiency of the Enterprise We see the fluctuation of revenue through the revenue growth rate:

* Profit: The purpose of business is profit, to increase profits businesses often maximize profits and minimize costs This is an indicator that reflects whether the enterprise's business operations are effective or not, the higher the profit, the more profitable the business is and this is steady business development Profit is determined by the formula:

In which: Profit is gross profit, profit before tax or profit after tax, depending on the purpose of analysis

* Labor efficiency indicator: This metric shows how much the average labor productivity per person per year is

Formatted: Font: 13 pt, Bold, Font color: Text

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* Telecommunications market share: Market share is the basic indicator to compare the economic scale and position of mobile telecommunications enterprises in the market Market share is calculated by the number of subscribers of the enterprise to the total number of subscribers of all enterprises in the province

Market share is determined by the formula:

Number of subscribers of the enterprise x 100%

Total subscribers of all enterprises

In which: Market size = Number of products and services sold in the market x Average selling price in the market The growth rate of market share is determined by the formula:

* Average revenue per subscriber (Average Return Per User – Arpu)

This index is especially important in the telecommunications industry, as it comprehensively reflects the operational performance of the business This index can be used as an important factor when comparing telecommunications businesses with each other; can also be used as an information base to help businesses make decisions about the type of service that is stalled

The ability to maximize profits and minimize service delivery to the end customer is especially important for these businesses Because telecommunications businesses are service providers, rather than producers of specific goods; Investors always want to know the profit and profit margin per subscriber, in order to assess the ability to utilize the resources of the business Arpu is usually calculated by dividing the total revenue earned by the entire subscription by the number of subscribers during the research period; can be month, quarter or year Because the

Formatted: Font: 13 pt, Bold, Font color: Text

Formatted: Font: 13 pt, Bold, Font color: Text

38 number of subscribers can change from day to day, businesses often calculate or estimate the average number of subscribers during the period to come up with the most accurate Arpu

Arpu is determined by the formula:

* Rate of subscribers leaving the network (Churn Rate): This index is used to measure the number of customers not using the service during the period, and is usually reported on a quarterly basis This can be considered as an indicator of customer dissatisfaction with the competitor’s service, its competitiveness, its attractiveness (price, quality or marketing); or the characteristics of the subscription life cycle

Drop-out rates can be reduced by creating barriers that prevent customers from switching providers (e.g contractual service commitments, use of proprietary technology, services added value); or through maintenance activities such as improving customer loyalty However, the rate of leaving the network may not fully reflect the fluctuations of subscribers, when there is a case that a large number of customers do not use the service but then return in the next period; This is also very common in the telecommunications industry

In the telecommunications industry, when referring to the number of customers or the number of subscribers, we also use the concept of "subscriber survival" as the opposite of "dropout rate" For example, in the same customer group, an annual churn rate of 25% is equivalent to a 75% survival rate In addition, the term "virtual network departure" is also used to describe the phenomenon where a customer terminates one subscription but immediately subscribes to another The term is often used with prepaid cellular service, when existing customers sign up for a new subscription to enjoy the carrier's promotions for new roaming customers

DATABASE

(Mẫu phiếu khảo sát theo Phụ lục 01 đính kèm)

RESEARCH RESULTS

OVERVIEW OF VIETTEL HOA BINH

4.1.1 History of formation and development of Viettel Hoa Binh

Viettel Hoa Binh was established on August 19, 2005 in the context that the whole Viettel Group in the process of "must go forward" to survive with the introduction of VoIP services at the end of 2001 and then to mobile services

- On October 15, 2004: Launched mobile phone service

- On August 19, 2005: Viettel Hoa Binh branch was established

- March 20, 2007: Deployed wireless landline phone service

- On March 10, 2010: Launched Data 3G service

The number of employees of Viettel Hoa Binh when it was first established was only 5 people Till now, the number of official employees is 235 people with irregular service workers are up to 500 people – generating annual revenue is over

1,000 billion VND Due to sharing infrastructure with VNPT, Viettel Hoa Binh currently has about 350 broadcasting stations, providing the number 1 telecommunications infrastructure in the area with 1-2 broadcasting stations in each commune Not only thriving in business, Viettel also has a lot of practical social programs, every year spending a large amount of money to support families in difficult circumstances, people with meritorious services to the revolution as well as

Formatted: Font: Italic Formatted: Font: Italic Formatted: Font: Italic Comment [MOU1]: Em viết lại phần này cho thầy nhé vì mình có khảo sát thì em viết cho thầy là số mẫu, nội dung khảo sát à căn cứ chọn nội dung khảo sát

43 many other social gratitude programs At the same time, the income level of Viettel Hoa Binh employees has also been significantly improved with income from 700,000 VND/person/month now up to to 22 million VND/person/month

After nearly 20 years (July 15, 2004 - July 15, 2022), Viettel Hoa Binh is one of the key provincial branches of the country, playing an important role in the development of various services revenue and fulfill the Group's key, central political tasks Regarding the history of providing fixed broadband services of Viettel Hoa Binh, in 2012, Viettel Hoa Binh branch officially operated fixed broadband services using AON technology with transmission speed many times higher than copper cable (the maximum transmission speed of copper cable is 20 Mbps, while for optical cable is up to 10 Gbps) In 2014, Viettel Hoa Binh provided fixed broadband fiber optic cable services using GPON technology with better quality and optimization during infrastructure deployment and operation

+ Current business lines of Viettel Hoa Binh:

- Business of providing telecommunications services

4.1.2 Functions and tasks of Viettel Hoa Binh

Hoa Binh Branch is a unit under Viettel Military Telecommunications Group with the form of accounting is bookkeeping The accounting year is from January 1 to December 31 of each year With a small initial number of only 05 employees, Viettel Hoa Binh has ~ 500 employees/business staff in 10 administrative units of the province, Viettel Hoa Binh has built a sales system to each village with the motto that Viettel people build their own distribution channels without depending on external partners like other telecommunications enterprises

- Manage, organize and operate business activities, develop the network, organize fee collection machines throughout the province

- Supervision: Inspect, supervise and urge the implementation of approved production and business activities

- Use resources to perform the tasks of production and business of services provided by the corporation, building a fee collection management apparatus strong enough to meet the equirements of each type of service (Mobile, PSTN, ADSL, FTTH IT)

- Recruiting and training young, dynamic, creative and enthusiastic staffs to build a strong branch and achieve the targets and plans of the Group

- Strengthen the development of wide area broadcast stations to the villages/communes to ensure business activities

- Focus on enhancing the quality of the network

- Develop business policies for each type of service, assign business targets to each department and business district center

- Organize market research and evaluation to determine business plans and strategies in the province

- Building and managing customer database, handling complaints and taking care of customers

- Developing distribution channels in the province: Stores, agents, local employees, point-of-sale employees Conduct professional training for agents, local staff, point-of-sale staff

- Analyze and evaluate and report on the results of implementation of the production and business plan of the branch according to the regulations of the Group

- Develop a fee collection policy for each type of service, each location so that fee collectors stick with the branch and manage staff in service areas across the province

Perform the functions of operating, managing production and business in the fields of: Planning, business, technical according to the regulations of the State and the regulations of the Group

- Financial management, salary payment and bonus according to the decentralization and authorization of the Group

- Manage assets, network infrastructure equipment in the province

- Managing business activities of post offices (belonging to postal companies) in the province

* Characteristics of Viettel Hoa Binh

Viettel Hoa Binh Branch is a unit of the Military Telecommunications Group, dependent on accounting, in terms of scale, Viettel Hoa Binh is classified as a category 2 province and is a key province of the Red River Delta region, which provides human resources Mainly for the Northeast and foreign markets When Viettel Hoa Binh started its fixed broadband service business, VNPT and FPT have been doing business in the province for a long time, initially with all limited resources, Viettel Hoa Binh faced many difficulties in building a business development network, but with the right orientation of leadership and the united determination of Viettel employees, Viettel has gradually affirmed its No 1 position in the market of Hoa Binh province.

BUSINESS EFFICIENCY OF FIXED BROADBAND SERVICES OF

4.2.1 Development results of fixed broadband service subscribers at Viettel Hoa Binh

Viettel Hoa Binh was established in 2004 with a foundation of 5 people Viettel started making footprints in Hoa Binh telecommunications market with VoIP service (PSTN) In 2006, Viettel started laying the foundation for fixed broadband service in Hoa Binh area, later ADSL service (Internet access service by copper cable with maximum speed of 20 Mbps) However, the ADSL service mainly caters to some public and business internet needs By the end of 2011, the province had only a few hundred subscribers In 2012, Viettel Hoa Binh branch

46 officially started business in fixed broadband fiber optic cable using AON technology with transmission speed many times higher than copper cable (the maximum transmission speed of copper cable is 20 Mbps, while for optical cable is up to 10 Gbps) In 2014, Viettel Hoa Binh provided fixed broadband fiber optic cable services using GPON technology with better quality and optimization during infrastructure deployment and operation Along with that is the extensive infrastructure expansion with the goal of covering 100% of communes and wards Along with the right course and action plan, based on the new development infrastructure is sales activities according to each segment and accompanying customer market By the end of 2022, Viettel Hoa Binh has ranked first in the province in terms of market share The services that Viettel Hoa Binh provides to customers include:

- Basic services : Broadband Internet is a basic service that Viettel provides to customers in order to connect, exchange and exploit information between different entities in space and time

- Value-added services: including services provided by Viettel on available fixed broadband infrastructure and content cooperation with other partners such as television, information technology solutions with the following contents:

 Exploiting information through wed pages

 Domestic and international TV entertainment channels

 Information transmission through IT applications

 Automate or remotely monitor activities in any field

 Conclude all activities of meeting, training, production and business management through online forms

 Serving digital transformation in all areas of socio-economic life The business efficiency of fixed broadband Viettel Hoa Binh is shown through the development of subscribers:

Table 4.1 Summary table of subscribers in the period 2020 – 2022

TH %TT TH %TT TH %TT

(Source from Sales Department – Viettel Hoa Binh )

From the above table, it can be seen that fixed broadband subscribers have maintained a positive growth rate over the years By 2022, Viettel 's cumulative number of fixed broadband subscribers will reach over 65,322 subscribers Viettel Hoa Binh 's broadband Internet subscribers grew very well, always at double digits in years such as: 2020 ~ + 22%; 2021 ~ +20%; 2022 ~+ 16%; Digital TV subscriptions also showing good signs, increasing by 12 %, 32 % and 8 % respectively

Figure 4.1: Development of fixed broadband subscribers of Viettel Hoa Binh from 2020 – 2022 (Source : Sales Department – Viettel Hoa Binh )

Expressing growth compared to the previous year at double-digit level, the growth rate is among the top in terms of service business growth of telecommunications enterprises in the world and Vietnam, to get the aboved results, Viettel Hoa Binh had taken many action programs suitable and close to each

48 customer segment Viettel Hoa Binh has made a rapid breakthrough in a short time, capturing the No 1 market share in terms of fixed broadband service business in the area

Figure 4.2: Chart of fixed broadband subscriber market share in Hoa Binh at the end of 2022

(S(Data s ource: Sales Department - Viettel Hoa Binh)

Through the diagram above, we see that Viettel's mobile subscribers by the end of 2022 will account for 43 percent of the market share Among the four telecommunications service providers, Viettel is leading in terms of number of subscribers thanks to its breakthrough fee charging method, wide coverage area, good service quality and many policies with suitable tariff packages suitable for a wide range of customers

In the scope of being an implementing unit, Viettel Hoa Binh is a dependent accounting unit, so all actions are carried out in accordance with the objectives, orientations and strategies of the Group and the Corporation Based on the core strategies, vision and mission of the corporation in 5 years, then offer solutions to ensure the growth rate of revenue, subscribers, increase profits and efficiency of service business broadband fixed service in the province Within the scope of being an implementing unit, Viettel Hoa Binh is a dependent accounting unit, so all actions are carried out in accordance with the Group's objectives, orientations and strategies Group and Corporation Based on the core strategies, vision and mission of the corporation in 5 years, then offer solutions to ensure the growth rate of

49 revenue, subscribers, increase profits and efficiency of service business broadband fixed service in the province

Trong phạm vi là đơn vị thực thi, Viettel Hòa Bình là đơn vị hạch toán phụ thuộc nên tất cả các hành động đều thực hiện theo đúng mục tiêu, định hướng và chiến lược của Tập đoàn và Tổng công ty Căn cứ vào các chiến lược cốt lõi, tầm nhìn sứ mệnh của tập đoàn trong 5 năm từ đó đưa ra các giải pháp triển khai đảm bảo tốc độ tăng trưởng về doanh thu, thuê bao, tăng lợi nhuận và hiệu quả kinh doanh dịch vụ cố định băng rộng trên địa bàn tỉnh

4.2.2 Business efficiency of fixed broadband services of Viettel Hoa Binh

* Targets on revenue, expenses, profit

Table 4.2: Report of production and business results in 2020 -2022

(Data source of Finance Department - Viettel Hoa Binh)

Through the data dated 2020-2022, it can be seen that revenue, costs and profit from Viettel's telecommunications service business have all grown over the years Efficient use of costs and profits from telecommunications business are seen through two criteria:

- Cost/ revenue expenditure from 2020 to 2022 is reduced, the implementation of business after investing from effective infrastructure, the operation and exploitation are monitored and operated optimally, the approach to customers to sell services is highly effective

- Profit/ revenue expenditure has grown over the years, along with the investment in infrastructure, the revenue on that infrastructure is increasing (higher

50 than the previous year), showing that Viettel's business strategy is approaching customers in a right and effective way, the more business, the more Viettel brand is trusted and accepted by customers Viettel is one of the units with the highest profit margin in telecommunications businesses

Viettel Hoa Binh Branch always complies well with the regulations on tax declaration and payment into the local budget, the amount of tax paid next year is higher than the previous year, in the 03 years from 2020-2022 Viettel is always in the top 10 State enterprises with the highest tax payment in Hoa Binh province and the local budget in the condition that Hoa Binh is self-reliant to collect and spend the budget assigned by the Government With these results, every year Viettel Hoa Binh is awarded certificates of merit by the General Department of Taxation and Provincial Tax Department, and especially by the Provincial People's Committee for its achievements in the implementation of local rental policies

Table 4.3: Summary of state budget obligations 2020 -2022

(Data source: Finance Department - Viettel Hoa Binh)

*Evaluate the effectiveness of labor productivity from 2020 -2022

Evaluation of the effectiveness of human resource management through the assessment of Viettel Hoa Binh's labor productivity over the years: In the period from 2020 to 2022, there is almost no change in personnel However, through the table below, we can see that Viettel's labor productivity has grown over the years

This proves that the unit pays great attention to saving and improving the quality of labor associated with production and business activities By the end of 2022, labor productivity will reach VND 4,302 billion/person/year This is a high level compared to telecommunications enterprises in the province, which represents the rational use of labor resources In addition to the fact that Viettel has created a dynamic working environment, Viettel is always evaluated as a unit with a salary and bonus policy to attract young human resources with high professional qualifications, enthusiasm and enthusiasm

Table 4.4: Summary of labor productivity from 2020 -2022

TT target Unit 2020 Year 2021 Year 2022 first Revenue million dong 778,808 918,993 1,010,893

(Data source: Organization Department - Viettel Hoa Binh)

4.2.3 Current situation of Viettel Hoa Binh's fixed broadband service business policies

In order to participate in the market when Viettel's competitive enterprises in the province have extensive experience in market exploitation and have strong infrastructure and customers, Viettel Hoa Binh and Viettel Military Telecommunications Group in general chose important policies and strategies to determine the success and failure of the enterprise, with a number of specific business policies and strategies After a few years, breakthrough progress has been made

* Policy to break the monopoly by reducing rates and charging methods

When preparing to enter the fixed broadband service business, Viettel Hoa Binh determined the competitive strategy from the beginning is to compete on price

52 and the advantages of latecomers such as service quality, investment costs, distribution system, customer care system

The first thing Viettel Hoa Binh does to penetrate the market is to lower prices than competitors in the industry, hit niche market gaps, and socialize services to individual and retail customers with suitable quality With a lower price compared to competing businesses, the Branch has attracted a part of customers to use the service The lower pricing includes: monthly package price accordingly to the access speed to suit each customer (household or business), 3Mb, 5Mb, 10Mb, 20Mb packages Viettel's unit price is also lower than other competitors, from 10% to 12%/package when registering for a package with the same speed

SWOT ANALYSIS FOR VIETTEL HOA BINH

4.3.1 Situation of factors in the macro environment

Vietnam's stable political environment is being appreciated in business

59 activities, especially in attracting investment capital, joint ventures and associations This is a favorable condition for enterprises in general and fixed broadband telecommunications enterprises in particular to conduct value-added service business activities Political stability is identified as one of the prerequisites for business activities of enterprises Telecommunications enterprises dealing in fixed broadband services should pay attention to factors in the legal and political environment: political stability, foreign policy, industry development strategy of the State, regulations of the Government on competition, regulations on information security, antitrust, regulations on advertising and promotion

In Viet Nam, telecommunication has been identified as one of the key industries and it was prioritized for development and investment by the Party and the State in the context of the ongoing trend of digital transformation and the fourth industrial revolution The Viet Nam Political Bureau (2019) issued the Resolution

No 52-NQ/TW dated 27 September 2019, on “A number of guidelines and policies to actively participate in the Fourth Industrial Revolution” with the goals to 2025 are: Maintain the ranking of global innovation index (GII) in the top 3 ASEAN; To build digital infrastructure up to the advanced level of ASEAN region; Broadband Internet covers 100% of the communes; Digital economy accounts for about 20% of GDP; Labor productivity will increase by over 7% per year on average; Basically complete digital transformation in the Party, the State and socio-political organizations; Being in the top 4 ASEAN countries in e-government ranking; There are at least 3 smart cities in 3 key economic regions in the North, the South and the Central And the goals to 2030 are: Maintain the ranking of the Global Innovation Index (GII) in the top 40 of the world; 5G mobile network covers the whole country, all citizens have access to broadband Internet with low cost; Digital economy accounts for over 30% of GDP; Labor productivity increases on average about 7.5% per year; Completion of Digital Government; To form a number of smart city chains in key economic regions in the North, the South and the Central and to step by step connect with the regional and global smart city network Resolution 52 states that resources should be prioritized to implement a number of

60 nationally important research programs on priority technologies, focusing on information and communication technology

The Viet Nam Prime Minister (2020) approved the Decision No.749/QD- TTg dated 03 June 2020, on “National Digital Transformation Program until 2025, with a vision towards 2030” Incentives strongly support startups to develop and encourage large, traditional businesses to take the lead in the application of these technologies for production and trade activities Digital transformation is an opportunity for Viet Nam to develop breakthroughs and quickly catch up with developed countries as well as contributing to the mission of making Viet Nam an industrialized country by 2045

Science and factors have a strong impact on the step-by-step modernization in the direction of facilitating working, connecting and exchanging information, which is the process of modernizing related infrastructure such as: telecommunications systems, electricity, roads, schools, medical stations serving the management of the government and business activities

Currently, service providers in Vietnam are speeding up the process of applying for a license to use high-speed broadband technology, which is a modern, high-speed broadband technology that allows deployment Many value-added services have been adopted by the world as well as the ability to create new services more convenient for users such as providing entertainment, news, images, music, games services electronics, payment, web surfing, electronics , e- mail… and interactive programs with television and radio…

Regarding the economic environment of Hoa Binh province, according to the report on the performance of socio-economic tasks of the province in 2022 of Hoa Binh province: The total GDP in the province reached 32,680 billion VND, an increase of 9.03% Besides, Hoa Binh province also faces some difficulties in competing and attracting investment from businesses, which is reflected in the work results Competitiveness ranking organized by VCCI in collaboration with the United States Agency for International Development (USAID) to announce the

"provincial competition index", in 2020, Hoa Binh province ranks 56th in the

61 country and lags behind 6 ranks compared to 2021 (ranked 50 in the whole country) This shows that departments and branches of Hoa Binh province still have to make great efforts to attract investment, remove obstacles of enterprises to create momentum for development and growth

The population of Hoa Binh in 2022 reached 875.379 people, the total number of households is about 215 thousand households Area of 4,680 km2; Population density:

184 people/km2, The working age population accounts for more than 50% of the population According to statistics, in 2022, Hoa Binh province have 75 domestic projects were approved for investment policies, granted investment registration certificates with a total registered capital of ~ 35,000 billion VND, an increase of 31 projects compared to the same period in 2021, investment capital equal to 102.2% For businesses in general and telecommunications businesses dealing in mobile services in particular, the economic development of the directly affects the creation of products and services suitable to each type of customer The demand for mobile communication has increased in recent years due to the development of the economy and vice versa In the past, when the economy was still poor and backward, mobile communication services were still very expensive for people As the economy grows, rising per capita income allows mobile telecommunications businesses to increase customer base and expand coverage The cost of using telecommunications services is decreasing and the benefits it brings are increasing, so it becomes more and more essential for people (Source: Hoa Binh Statistics Office – Press release on the socio-economic situation of Hoa Binh province in

4.3.2 Situation of environmental factors in the telecommunications industry First, Customers: Telecommunication enterprises can classify customers according to the following criteria:

- According to the customer's geographical location: customers in the region, customers outside the region, domestic customers and international customers

- According to the purpose of shopping: customers are the end consumers, intermediate customers (agents, supermarkets, shops )

- According to the customer's relationship with the business: traditional customers, new customers

- By age: Customers are teenagers, middle-aged people, elderly people

- By profession: Individual customers, businesses, administrative agencies, career

In addition, businesses can classify customers by a number of other criteria such as ethnicity, region and a combination of other criteria Customers using fixed broadband services in particular and telecommunications services in general often expect that service must have quality, reasonable prices, convenience and abundance Researching consumer behavior of customers helps businesses providing fixed broadband services determine the right business strategy, the best way to serve customers to attract new customers, create new customers reputation with existing customers Loyalty and trust of customers are invaluable assets in business activities, to achieve this, telecommunications businesses must know how to satisfy customer needs better than competitors

With the participation of telecom service providers Viettel, FPT, VNPT, etc., Vietnam's fixed broadband telecommunications industry is said to have the most broadband fixed service providers in the world This shows that the competition in the market is very fierce Notably, there are 2 technologies, AON and GPON, used by carriers, GPON technology is said to be more efficient thanks to fast data transmission speed, flexibility, cost optimization and infrastructure deployment In addition, accession to the WTO has led to the opening up of a wide range of services related to fixed broadband telecommunications With fixed broadband service when the time comes, there will be more service providers, closer cooperation with domestic and foreign partners, promising a diversified service market and fierce competition To have an effective competitive strategy, businesses need to:

Current strategic information of the opponent

 Determine the level of competition in the market

Assessing the telecommunications market in the province, there are currently 04 telecommunications enterprises competing with each other: Viettel, VNPT, FPT, SCTV

Businesses need to understand the characteristics of suppliers If the supply quantity is small, the source of goods is not much, there is no substitute product, the supplier can pressure the supplier to increase the price, reduce the quality of the product, reduce the level of accompanying service Is supply is large, abundant supply, and there are substitute products, fixed broadband telecommunications businesses can choose an affordable, good quality, convenient service supply Telecommunications enterprises must therefore diversify their supply sources, strengthen economic relationships to facilitate each other such as investment, joint venture, association, capital and technical support

Fixed broadband telecommunications enterprises need to research and grasp the price, price trend of substitute products and forecast the price of substitute products in the future New substitute products are the result of new technological innovation or explosion The fixed broadband telecommunications businesses that want to successfully trade in value-added services must be aware of the emergence of new replacement services and their prices to determine the selling price of their services with competitive prices so as not to lose market share, market and customers

Fixed broadband value-added services require significant capital concentration, increasing barriers to entry for investors Therefore, the system of enterprises dealing in fixed broadband telecommunications services in Vietnam are mostly 100% state-owned enterprises or enterprises having business cooperation

64 with foreign countries Large enterprises in the market also find ways to strongly resist the entry of potential competitors by improving their business, developing a variety of value-added services to attract customers, making it difficult for them to compete entry of new competitors

CONCLUSIONS AND RECOMMENDATIONS

CONCLUSIONS

Vietnam's fixed broadband telecommunications market has more and more enterprises competing directly, especially in the coming time when Vietnam opens its telecommunications market, especially IOT telecommunications enterprises Telecommunications service operators can only survive and develop when they can provide quality services and build a brand name in the market In order to build a high-class brand name in the telecommunications market, it is necessary to maximize the effectiveness of business development of fixed broadband services Improving the efficiency of broadband fixed service business of Viettel Hoa Binh is very important in the context of fierce competition between carriers, especially in the context of the increasingly saturated telecommunications market and the telecommunications – information technology sector is gradually changing to high technology In recent years, Viettel Hoa Binh has achieved relatively good results, however, the growth rate is tending to slow down With the trend of integration and increasingly fierce competition for further development, Viettel Hoa Binh always strives to be the leading enterprise in the field of telecommunications and information technology in Hoa Binh province It is necessary to organize scientific production and business activities, operate business activities flexibly and effectively to help the unit develop stably and sustainably Therefore, the topic: "

Building a strategy to improve the efficiency of Viettel Hoa Binh 's fixed broadband service business " is posed with many topics that need to be researched, that is a practical issue in terms of theory and practice

With the goal of the topic after a period of actual survey at Viettel Hoa Binh, the writer has completed the topic according to the set goals:

+ Systematize the theoretical basis of business efficiency of telecommunications enterprises

+ Assess the current situation of Viettel Hoa Binh's fixed broadband service business in recent years to identify the strengths, weaknesses, achieved results and main causes leading to shortcomings in the business performance of the unit + Based on the theoretical basis and the existing reasons for Viettel Hoa Binh's business activities, the thesis has researched and proposed a number of solutions to contribute to improving the efficiency of Viettel Hoa Binh's fixed broadband service business in the coming period

In the process of researching and completing the thesis, the writer has tried to make the most of the knowledge equipped in the learning process at Vietnam National University, Hanoi and the knowledge collected from practice However, due to the limited time and limited scope of the master's thesis, the theoretical ability and practical approach are still limited Certainly, there are shortcomings, the writer is looking forward to receiving the comments of teachers and friends to make the thesis more complete.

RECOMMENDATIONS

Enterprises operate in accordance with the provisions of state law, political and legal factors have a significant influence on business activities of enterprises, especially in the present time It is an external factor that directly affects the business operations of the enterprise Although in the past time, the Party, State and the Ministry of Information and Communications have made efforts to create a favorable business environment for enterprises, but there are still shortcomings that cause many difficulties for Business The following are recommendations derived from business practices of the telecommunications industry in general and Viettel Hoa Binh special :

- The Ministry and Department of Information and Communications need to create a healthy competitive environment for fixed broadband telecommunications businesses, granting autonomy in business activities State management agencies also need to agree on orientation, planning, supervision, coordination and information sharing, meeting the needs of socio-economic development, creating an open competitive environment for businesses

- The development of regulations and sanctions for enterprises to exercise equal rights and obligations in service quality management must be stricter and more serious Although the Ministry of Information and Communications has issued regulations on reporting and service quality, in recent years, some businesses have not publicly reported quality reports This has caused both businesses and customers to lose confidence in the quality management of the State

- In today's fiercely competitive environment, many economic problems arise that need to be resolved The State's documents on management of activities of enterprises providing fixed broadband telecommunications services are no longer appropriate and need to be synchronously changed by a new set of laws like other countries in the world The Ministry and Department of Information and Communications should soon promulgate the Law on Post and Telecommunications to serve as the basis and legal framework for domestic and foreign fixed broadband telecommunications service businesses

- With the Ministry of Information and Communications also opens the door for telecommunications businesses to adjust sales policies to suit each small area, the rate of using telecommunications services is not guaranteed Viettel Hoa Binh Branch proposes to Viettel Telecom Corporation, Viettel Industry and Telecommunications Group Ministry in accordance with the regulations of the Ministry of Trade and Industry

My name is: Vu Nhat Quang

Currently, I am working at Viettel Hoa Binh and am taking a Master's class in Economic Management from University of Business Administration -

To serve the graduation thesis topic "Building strategies to improve business efficiency of broadband fixed services at Viettel Hoa Binh" You are welcome to answer the questions below by placing an “X” in the corresponding boxes in the questions

All information provided by you will be kept confidential and purely for the purpose of researching the topic as well as improving the business efficiency of fixed broadband services at Viettel Hoa Binh Looking forward to your active cooperation!

PART 1: SURVEY INFORMATION Câu 1: As a member of Viettel, how do you rate the statement: “Viettel has the largest network of residential community infrastructure coverage in Hoa

Binh province, the 1st market share, and has a sales channel system covering

151 communes/wards and 1,612 villages/hamlets”

Câu 2: As a member of Viettel, how would you rate the statement: “The air force still holds a lot of part-time jobs, and the entry and exit rate is still high

The province is not proactive in making policies to counterbalance the preferential policies of competitors on the channel The quality of service troubleshooting is still limited”

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Câu 3: As a member of Viettel, how would you rate the statement: “The development of the internet for departments, VTCI programs, and projects is the solution to increase revenue and real FTTH in 2023.”

Câu 4: As a member of Viettel, how would you rate the statement: “Viettel needs to quickly ensure that 14% of the area does not have infrastructure

Increase bandwidth at the same price to ensure speed and quality of service use”

Thank you very much for taking the time to answer this survey!

PART 2 INFORMATION OF SURVEY PEOPLE

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2 Website: https://www.qdnd.vn

3 Master thesis by author Tran Huu Vinh (2020) with the topic "Factors affecting customer satisfaction using VNPT's fiber optic Internet service in Quang Tri province"

4 Master's thesis by Dinh Tien Thinh (2014) with the topic: "Some solutions to perfect Viettel culture to improve production and business efficiency of Viettel Hai

5 Master thesis of author Tran Thi Phuong Ly (2019) with the topic "Analysis of factors affecting customer satisfaction when using Fibervnn fiber optic internet service at VNPT Thua Thien Hue branch ."

8 Statistical Yearbook of Hoa Binh province in 2022)

9 Report on production and business plan and unit construction in 2023 Viettel Hoa

Binh approved by the General Director)

10 Thông cáo báo chí về tình hình kinh tế xã hội tỉnh Hòa Bình năm 2022 - Cục thống kê Hòa Bình

Aguilar, F J (1967) Scanning the business environment New York, NY:

Andrews, K R (1987) The concept of corporate strategy Irwin

Johnson, G., Whittington, R., Scholes, K., Angwin, D., & Regner, P (2014)

Exploring Strategy: Text and Cases Pearson

Jordan, M I., & Mitchell, T M (2015) Machine learning: Trends, perspectives, and prospects Science, 349(6245), 255–260

Pickton, D W., & Wright, S (1998) What’s swot in strategic analysis? Strategic

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