Luận văn tốt nghiệp MBA Developing business strategy for viettel mobile in Viet Nam for the years 20112015Luận văn tốt nghiệp MBA Developing business strategy for viettel mobile in Viet Nam for the years 20112015Luận văn tốt nghiệp MBA Developing business strategy for viettel mobile in Viet Nam for the years 20112015Luận văn tốt nghiệp MBA Developing business strategy for viettel mobile in Viet Nam for the years 20112015Luận văn tốt nghiệp MBA Developing business strategy for viettel mobile in Viet Nam for the years 20112015ObjectiveTo conduct the complete topdown and competitive analyses, develop alternative strategies and select a prioritized set of strategies that will ensure a competitive advantage for Viettel mobile in the period of 20112015.Subject Scope of the study Subject: Viettel group other competitive companies in the mobile telecommunication industry. Scope: Basing on specific statistics on the macro environment, industry and organizational environment of the Viettel from 2005 to 2010 and orientation until 2015. Study ApproachesQualitative quantitative; Statistical analytical analyses Chapter 1: Theoretical foundation of strategic management Concept role Stages of strategic management Models and matrices usedChapter 2: Analysis of business activities of Viettel Introduction to Viettel Group Business situation 20052010 Business environment analyzeChapter 3: Strategy selection Implementation solutions Vision mission Strategic identification selection Implementation solutions processes
THE CAPSTONE PROJECT THE CAPSTONE PROJECT DEVELOPING BUSINESS STRATEGY FOR DEVELOPING BUSINESS STRATEGY FOR VIETTEL MOBILE IN VIETNAM FOR VIETTEL MOBILE IN VIETNAM FOR THE YEARS 2011-2015 THE YEARS 2011-2015 GaMBA.X0510 - Group 9 GaMBA.X0510 - Group 9 Introduction Introduction Necessary Objective To conduct the complete top-down and competitive analyses, develop alternative strategies and select a prioritized set of strategies that will ensure a competitive advantage for Viettel mobile in the period of 2011- 2015. Subject & Scope of the study - Subject: Viettel group & other competitive companies in the mobile telecommunication industry. - Scope: Basing on specific statistics on the macro environment, industry and organizational environment of the Viettel from 2005 to 2010 and orientation until 2015. Study Approaches Qualitative & quantitative; Statistical & analytical analyses Structure of the study Structure of the study Chapter 1: Theoretical foundation of strategic management - Concept & role - Stages of strategic management - Models and matrices used Chapter 2: Analysis of business activities of Viettel - Introduction to Viettel Group - Business situation 2005-2010 - Business environment analyze Chapter 3: Strategy selection & Implementation solutions - Vision & mission - Strategic identification & selection - Implementation solutions & processes Chapter 1: Theoretical foundation Chapter 1: Theoretical foundation 1. 1. Concept & role of strategic management 1. 1. Concept & role of strategic management 1.1.1. Concept There exist many definitions of strategic management It is now understood to be both a scientific definition & is an art and science of planning, organization implementation and evaluation strategies. 1.1.2. Roles Help to identify opportunities and threats; Help managers and employees to understand what needs to be done to achieve success Enable firms to match the proposed plan with the external environment; It is in the direction of future actions Consider as the state of art in business administration 1.1.3. Types of strategy: Corporate & business Chapter 1: Theoretical foundation (2) Chapter 1: Theoretical foundation (2) 1. 2. Stages of strategic management 1. 2. Stages of strategic management External Environment Strategic Intent Strategic Intent Strategic Mission Strategic Mission Internal Environment Strategy Implementation Business Level Strategy Competitive Dynamics Corporate Level Strategy Acquisition & Restructure Internation. Strategy Corporative Strategies Strategy Formulation Corporate Governance Strategic Leadership Structure & Control Entrepre. & Innovation Strategic Competitiveness Above Average Returns Input Feedback Chapter 1: Theoretical foundation (3) Chapter 1: Theoretical foundation (3) 1. 3. Models & matrices used 1. 3. Models & matrices used STAGE 1: THE INPUT STAGE STAGE 1: THE INPUT STAGE External External Factor Factor Evaluation Evaluation (EFE) Matrix (EFE) Matrix Competitive Competitive Profile Matrix Profile Matrix (CPM) (CPM) Internal Internal Factor Factor Evaluation Evaluation (IFE) Matrix (IFE) Matrix STAGE 2: THE MATCHING STAGE STAGE 2: THE MATCHING STAGE Strengths - Weaknesses - Opportunities - Threats Strengths - Weaknesses - Opportunities - Threats (SWOT) Matrix (SWOT) Matrix STAGE 3: THE DECISION STAGE STAGE 3: THE DECISION STAGE Quantitative Strategic Planning Matrix (QSPM) Quantitative Strategic Planning Matrix (QSPM) Chapter 2: Business situation of Viettel Chapter 2: Business situation of Viettel 2. 1. Introduction of Viettel 2. 1. Introduction of Viettel History: The first name was Information Equipment Electronics Corporation in 1989, then Military Telecommunication Electronics Company after 5 years & Viettel Telecom Group since Dec. 2009. Headquarter: No1 Giang Van Minh, Badinh, Hanoi Membership units: 14 and 64 branches Own capital: VND 50,000 Billion Business areas: Supply of telecommunications services; Telecommunications, Transmission; Post Office; Terminal distribution; Finance investment; Media; Real Estate Investment; Export & Import and Foreign Investment. Chapter 2: Business situation (cont.) Chapter 2: Business situation (cont.) 2. 2. Business performance of Viettel (2005-2010) 2. 2. Business performance of Viettel (2005-2010) Revenues increased by 200% year-over-year since 2005-2009, ROE: 48.3%, Global expansion (Indochina, Africa, Latin…) Largest mobile network: 42,200 Stations, 120,000km fiber optic net, 17/17 provinces Laos cover 3G, etc. Revenue & profit of Viettel (2005- Revenue & profit of Viettel (2005- 2010) 2010) Chapter 2: Business situation (cont.) Chapter 2: Business situation (cont.) 2. 3. Business environment analysis 2. 3. Business environment analysis 2.3.1. External environment Macro environment (PEST) - Economics ( E E): GDP increment, Inflation, VND rate, etc. Year 2005 2006 2007 2008 2009 2010 GDP (USD) 642 730 843 1052 1064 1168 Exports (USD billion) 32 39 48 62 57 71 Import (USD billion) 36 44 62 80 69 84 Remittances (USD billion) 3.8 4.7 5.5 7.2 6.2 8.1 Total retail sales and consumer services turnover (VND1000 billion) 480 596 746 1009 1197 1561 Consumer Price Index CPI (% change over the previous year) 8.4 6.6 12.6 19.9 6.5 11.7 Chapter 2: Business situation (cont.) Chapter 2: Business situation (cont.) 2. 3. Business environment analysis 2. 3. Business environment analysis 2.3.1. External environment Macro environment (PEST) - Politics & Legal ( P P): Stable environment, Administration procedures & Business law were amended and considerably improved. - Science & Technology ( T T): Acquiring the advanced technologies (GSM, 3G and 4G testing in progress), Terminal production technology in Vietnam is limited. - Social & Culture ( S S): Rapidly change in the trend the new lifestyle, Demand of using telecommunication increment, Awareness of Vietnamese improved. - Demography: Population of 87 million, Over 50% under 27 years [...]... practices to formulate strategic planning for Viettel for the years 2011-2015, we chosen the best business strategy for the Group in Vietnam It brings the Viettel leaders a overview of works, contributes to improvement of competitiveness and determines the optimal solutions for stabilization and development of the Group However, because of limits on theoretical knowledge as well practice of the group’s... 2 0.20 Internal environment factors Strengths Weaknesses Total 1.00 3.00 Chapter 3: Strategy selection & solutions 3 1 Vision & Mission 3.1.1 Vision Leading telecommunication company in Vietnam & in the Indochina area Providing the best products and services for customers 3.1.2 Mission Closed collaboration between economy & defense Investment in infrastructure Customer-oriented business ... resources, finance, facilities Selection of organization structure consistent with the strategy Strategic commitment and implementation Strategic inspection control, implementation process evaluation and adjustment in the Conclusions Development of business strategy for a service business production unit is extremely important, very complicated and not easy to perform Using knowledge from MBA courses... operations diversification Selecting strategy for Viettel in the period of 2011-2015 The QSPM Matrix for Viettel Group Strategies Important factors Weight Market Penetratio n& Develop Product Develop Operation Diversifi Continuously increased GDP 0.20 4 0.80 3 0.60 4 0.80 Stable politics, law being improved 0.10 3 0.30 3 0.30 3 0.30 Intervention of the government (restriction of entry) 0.04 4 0.16...Chapter 2: Business situation (cont.) 2 3 Business environment analysis 2.3.1 External environment Industry environment (Michael Porter - 5 Forces) - Rivalry: Violent competition, Viettel (36.4%), Vinaphone (28%), Mobifone (28.8%); Many promotion programs from the rivalry - Threat of New Entrants: Indochina Telecom with MVNO, Winmax 4G and other telecommunication services -... Customer-oriented business Rapid development, continuous reforms to stabilize Talking human as core factor 3.1.3 Core values Practice is the criterion for testing truth; Maturing through challenges & failures; Quick adaptation is competitive strength; Innovation is life; Systematic thinking; East West combination; Tradition & method of soldiers; And Viettel is the public house Chapter 3: Selection... subscribers (Left table) and marker-share of mobilephone providers in 12 Dec of Vietnam (Right figure) No Suppliers Subscriber s 1 Viettel 40,967,382 2 Vinaphone 32,026,915 3 Mobifone 32,476,589 4 Beeline 5 Vietnam Mobile 3,543,028 6 S-Fone 1,860,793 7 EVN Telecom 1,629,585 187,176 Chapter 2: Business situation (cont.) 2.3.2 Internal environment Resources - Strengths: Widest coverage Largest market-share... improvement of coverage quality, customer service capabilities Continuing development of price policies for product competition and flexibility for each customer segment Management of human resources for changing the structure and improving the quality of service from the human factor Financial management solutions Marketing solutions package, Chapter 3: Selection & solutions (cont.) 3 4 Implementation... changing to postpaid; ST strategies: Maintenance of market-share, Improvement of marketing; Development of new entertainment services on mobilephone, PC & Ipad… Appropriate price to keep & attract customers; Development of new market which is less competitive, less substitute products… based on the advantages WT strategies: Enhancing supervision, management and administration reform; Strengthening training... training to improve service quality to limit the loss of customer; Cutting costs, appropriate prices Focusing on the loyal customers and development of new ones from the existing; Chapter 3: Selection & solutions (cont.) 3 2 Strategic identification & selection Strategy of market penetration & development Strategy of products development Strategy of operations diversification Selecting strategy