Improving competitive strategy of viettel mobile during the period of 2015 2020

Improving competitive strategy of Viettel Mobile during the period of 2010 - 2015 Capstone project IMPROVING COMPETITIVE STRATEGY OF VIETTEL MOBILE DURING THE PERIOD OF 2010 -2015 Improving competitive strategy of Viettel Mobile during the period of 2010 - 2015 ACKNOWLEDGMENTS For fulfilling the requirements under Master of Business Administration program, we submit this final MBA Capstone project to Griggs University In the first words of the MBA Capstone project, we would like to express our thankfulness to the great many people We would like to thank all professors of Griggs University, who gave us very useful lectures during past two years For all the support in researching period, we want to express our heartily thanks to friends in Viettel, MPT All of them gave us good condition and useful information that made us easier in research and capstone project completion Improving competitive strategy of Viettel Mobile during the period of 2010 - 2015 LIST OF ABBREVIATIONS 3G: generation BCC: Bilateral Corporation Contract BTA: Bilateral Trade Agreement BTS: Base Transceiver Station CDMA: Code Division Multiple Access GSM: Global System for Mobile Communication GTEL: Global Telecommunication Corporation FDI: Foreign Direct Investment HANOI TELECOM: Hanoi Telecom Corporation MBA: Master of Business Management MPT: Ministry of Posts and Telecommunication NGN: Next Generation Network PR: Public relation R&D: research and deploy ROA: Research Group on Asia SMP: Signified Market Power SMS: Short Message Service 2SOE: State-Owned Enterprise SPT: Saigon Post Tel VIETTEL Mobile: VIETTEL Mobile Corporation VMS: Vietnam Telecom Mobile Service Company VNP: Telecommunication Service Company VNPT: Vietnam Post and Telecom Corporation VP TELECOM: Vietnam Power Telecom Corporation WAP: Wireless Application Protocol WTO: World Trade Organization Improving competitive strategy of Viettel Mobile during the period of 2010 - 2015 INTRODUCTION Preface: - Rationale: Vietnam started applying doimoi policy from 1986, and up to now, Vietnam has changed from planned and concentrated economy into social – oriented market economy Vietnam situation shows the fiercer and fiercer competitiveness of market economy, especially after Vietnam joined WTO in 2006 Nowadays, Vietnam enterprises, regardless of economics components, management offices are now facing with the more and more competitive pressure from enterprises home and abroad, from replaceable products, from suppliers or even from the customers Telecommunications are a young industry; it was newly shaped and developed from Vietnam economic innovation with the orientation of taking a shortcut and waiting - in – front Getting support from the state, it quickly innovated technology and modernized; after a short time, Vietnam has become an advanced country of telecommunications infrastructure in the world, with the growth speed in the groups of the world leading countries State enterprises in this profession have got the rapid growth and development with the growth speed of two or three numbers However, after joining WTO, facing with fierce competitiveness of enterprises home and abroad in market economy, enterprises in telecommunications in general or mobile services in particular suffer the competitiveness of newly-joined enterprises Even with Viettel Mobile, the biggest mobile network in Vietnam, the competitive pressure is fiercer and fiercer from other competitors, distributors or customers, etc In order to support for one of leading enterprises in telecommunications market in Vietnam and Southeast Asia to have competitive ability during the period of 2010 – 2015, our group have made a study about the theory of competitive strategy, analyzing the reality of Viettel Mobile competitive strategy building, from that to Improving competitive strategy of Viettel Mobile during the period of 2010 - 2015 build competitive strategy to create stable and firm position for Viettel Mobile during the period of 2010 -2015 - Objective The objective of the study is the competitive strategy of mobile network of Viettel Mobile – Viettel Telecompany – Viettel Corporation – during the period of 20102015 - Methods of study The capstone project uses quantitative and qualitative methods of study Quantitative method is used such as expert method, taking ideas of sellers, etc and qualitative method is used when predicting the demand on mobile services or subscriber growth rate, etc The project also uses the figures given from Ministry of Information and Communications, of Bureau of Statistics as well as takes some primary studies to get figures in general and about Viettel Mobile in particular for the project - Scope of study Due to time limit, the objective of study and conditions about subscriber figures, this capstone project only concentrates on studying Viettel Mobile competitive strategy It means that the project only focuses on the ways to create competitive advantages and to maintain those of Viettel Mobile in Vietnam market in a certain period of time as the period of 2010 – 2015 The capstone project does not study the competitive strategy of Homephone, ADSL or PSTN services of Viettel Telecompany, the management company of Viettel Mobile The project only studies the competitive strategy of the profession, not the business strategy of Viettel Telecompany or Viettel Corporation Improving competitive strategy of Viettel Mobile during the period of 2010 - 2015 - Structure of the project Consists of three chapters: Chapter 1: Basic contents of competitive business strategy Chapter 2: Competitive strategy situation of Viettel Mobile during 2005-2009 Chapter 3: Building competitive strategy for Viettel Mobile during 2010-2015 Improving competitive strategy of Viettel Mobile during the period of 2010 - 2015 LIST OF FIGURES Figure 1.1: Steps of defining strategy 14 Figure 1.2: PEST model 16 Figure 1.3: Model of competitive forces of M Porter 18 Figure 1.4: Model of value chain of M Porter .21 Figure 1.5: The process of realizing the unshakeable competitive advantage 23 Figure1.6: An irreducible SWOT analysis frame 24 Figure1.7: Comparing features of common strategies 32 Figure 1.8: Dominant quality 34 (Source: Le The Gioi, 2009, Strategic administration) 34 Figure1.9: Quantitative matrix basing on GREAT criterion 35 Figure 2.1: The Organization structure of Viettel Telecom 39 Figure 2.2: Turnover of Viettel Mobile 40 Figure 2.3: Profit of Viettel Mobile 40 Figure 2.4: Investment of Viettel Mobile .41 Figure 2.5: Human resources of Viettel Mobile 41 Figure2.6: Mobile phone service market share in 2007 - 2008 43 Figure 2.7: Market share in 2006 43 Figure 2.8: Market share of Viettel Mobile 2007 44 Figure 2.8: Market share of Viettel Mobile 2008 44 Figure 2.9: Numbers of BTS at 3rd quarter of 2009 50 Figure 3.1: Home overall products in 2008 basing on comparative price of 1994 54 Figure 3.2: Home total products in 2008 according to factual price 54 Figure 3.3: Home total products in 2008 basing on comparative price in 1994 55 Figure 3.4: Total of retail and turnover of consuming service in 2008 according to factual price 55 Figure 3.5: Index of consuming price, gold price and USD price in December of 2008 56 Figure 3.6: Average population in 2008 divided in gender, rural – urban areas and regions 56 Improving competitive strategy of Viettel Mobile during the period of 2010 - 2015 Figure 3.7: Vietnam population tower (2008) 57 Figure 3.8: Mobile market share at the end of 2008 (Unit: subscribers) 59 Figure 3.9: Telecommunication turnover in 2008 (million dong) 60 Figure 3.10: Table of estimated number of subscribers of Viettel Telecom and in the whole market by 2015 68 Figure 3.11: Market share 73 TABLE OF CONTENTS Improving competitive strategy of Viettel Mobile during the period of 2010 - 2015 Chapter I: BASIC CONTENTS OF COMPETITIVE BUSINESS STRATEGY 12 1.1 General view about business strategy 12 1.1.1 Concepts 12 1.1.2 Levels of strategy: 13 1.1.3 Advantage of building strategy 13 1.2 Process of building business strategy 13 1.3 Analyzing strategy .15 1.3.1 Analyzing outer environment 15 1.3.1.1 Analyzing macro-environment .15 1.3.1.2 Analyzing profession environment .17 1.3.1.3 General analysis on outer environment of the enterprise .20 1.3.2 Analysis on internal environment of the enterprise 20 1.3.2.1 Analyzing value chain 21 1.3.2.2 Defining enterprise competitive advantage 22 1.4 SWOT 23 1.4.1 SWOT analysis: .23 1.4.2 SWOT analysis frame: .24 1.5 Building and selecting business strategy 25 1.5.1 General competitive strategies 25 1.5.1.1 Strategy of leading in cost 25 1.5.1.2 Focus strategy .26 1.5.1.3 Concentration strategy: 29 1.5.2 Common strategy in the context of five competitive forces 32 1.5.3 Selecting optimal strategy 35 1.6 Performing strategy 36 1.6.1 Organization structure .36 1.6.2 Control system 36 1.6.3 Strategy evaluation 37 CHAPTER II: VIETTEL MOBILE' S FACTUAL COMPETITIVE STRATEGY OVER THE PAST TIME .38 2.1 General introduction about Viettel Mobile - Viettel Telecom 38 2.1.1 Name of Enterprise 38 2.1.2 Process of establishment and development: 38 2.1.3 Fields of business activity 38 2.1.4 Main services: 38 2.1.5 Business philosophy .39 Improving competitive strategy of Viettel Mobile during the period of 2010 - 2015 2.1.6 Organization structure: 39 2.1.7 Some achievements 40 2.2 Analyze Viettel Mobile's competitive strategy: 45 2.2.1 Strategic vision: 45 2.2.2 Mission: 45 2.2.3 Core Values: 45 2.2.4 The strategies being applied by the company: 46 2.2.4.1 Context of the company’s strategy 46 2.2.4.2 The strategies applied by the company previously 47 2.2.4.3 Advantages of the strategy selected by the company: 48 2.2.4.4 Disadvantages of the strategy .49 2.2.5 The company’s current competitive advantages 49 2.2.5.1 Market share 49 2.2.5.2 Coverage area .50 2.2.5.3 Distribution channel 50 2.3 Comment on Viettel Mobile's competitive strategy: 51 Chapter III VIETTEL MOBILE COMPETITTIVE STRATEGY IMPROVEMENT DURING THE PERIOD OF 2010 – 2015 53 3.1 Vision and objective of the strategy 53 3.1.1 Strategic vision of Viettel Mobile – Viettel Telecompany up to 2015 53 3.1.2 Viettel Mobile’s mission: 53 3.1.3 Objective: 53 3.2 Environment analysis 54 3.2.1 Macro - environment .54 3.2.2 Profession environment: 59 3.2.2.1 Evaluating competitors: 60 3.2.2.2 Evaluating customers: 63 3.2.2.3 Evaluating replaceable products: 64 3.2.2.4 Evaluating service suppliers: 64 3.2.3 Forecasting the mobile market until the year 2015 64 3.3 Analyzing internal environment: 71 3.3.2 Infrastructure 72 3.3.3 Market share 72 3.3.4 Distribution channel .73 3.3.5 Viettel staff 73 3.4 SWOT analysis .73 3.5 Analyze on selecting strategy: 75 10 Viettel Mobile competitive strategy improvement during the period of 2010 - 2015 - Technical staff, business officers grow up quickly from reality They gain experience and develop specialized skills - The company originated from military, so it inherited the traditions and military ways of doing: drastic, discipline and not scared of difficulty - The leaders have vision, ability and confidentiality; they are well trained and experienced - Enterprise business has been built clearly and suitable for enterprise characteristics, helping to promote labor strength - Viettel is the company directly under Ministry of Defense so inherits sources from High command of Information, getting approval of Ministry of Defense and High command of Information - The state and Ministry of Defense encourage and make favorable conditions for Viettel to become main economic corporation Weaknesses: - Financial and capital source ability is limited, especially when Viettel distributes capital sources to other aspects or invest abroad - The military ways of doing sometimes affect thinking of orders, thus limit the labor creation - The distance between highest leaders and medium managers is great - Structure of management is not clear and suitable; the way of management is still unprofessional - Viettel policies have not created differences in a long time yet, because competitors of Viettel always follow closely and copy from Viettel programs Opportunities: - Vietnam mobile market still has ability to develop especially aspect of VAS and 3G services - Customers’ demand is greater, diversified in taste They desire to get more benefit from legal lobby of the state and 3G permit will bring about Viettel new business chances in the next period - Customers more and more take interest in customer care activities, not much about price Challenges: 74 Viettel Mobile competitive strategy improvement during the period of 2010 - 2015 - Customers’ desire and demand is more and more diversified and hard to please - The requirement of 3G infrastructure investment is only in a short time but with very big source - The continual appearance of new mobile network Vietnamobile and Gtel mobile will make the mobile market more and more competitive and require the telecommunications enterprise to have more strategies to maintain its market share - Negotiate to connect to its competitors (due to particular features of telecommunications to connect to other enterprises home and abroad) - Building and developing infrastructure requires rapid time with great investment capital 3.5 Analyze on selecting strategy: 3.5.1 Possible strategies: - Strategy of low cost: continue to pursue strategy of low cost to all market segments Focus strategy: concentrate on the differentiation about goods and services for all market segments Low cost –centered or focus strategy: pursue strategy of low cost or strategy of differentiation for each specific market segment 3.5.2 Selecting strategy Basing on possible strategies and GREAT model, we have the comparison table of strategies as follows: Target Advantages Strategy Low cost Oppose against the pressure about price of competitors, pressure of implicit competitors and attract the customers about the price Focus Satisfy the desire and demand of customers Create differentiation, however, not too difficult to copy and imitate Centered Satisfy the desire of each specific group of customers From that to create loyalty of customers Competitors find difficult to copy and imitate the 75 Viettel Mobile competitive strategy improvement during the period of 2010 - 2015 Hazards Create a war about price, and the loss belongs to service providers Cost Low cost, however, it finds difficult in investment because of high cost requirement when investing in 3G Feasible Feasibility Time Continuous performance The difference is not attractive enough to fascinate the majority of customers The differentiation is difficult to realize and fulfill Average cost, however, the regulation is difficult difference It may lead to the contradiction in strategy, in experience value of customers in different market segment The total cost is great, dividing into big and separate packages Weak feasibility High feasibility Performing in a long period of time and time for repairing is long Can divide into different strategies in different segments and fulfill in succession or overall depending on resources With the evaluation that mark for the worst strategy and mark for the best strategy for each criterion, the weight for the criteria as the following GREAT table will give us the result that focus – centered strategy is the one that gets the highest mark, the suitable one for competition of Viettel Mobile GREAT model to select the strategy Criterion Gain (G) Risk (R) Expense (E) Achievability (A) Weigh Low cost Evaluati Conver t on mark t mark 0.3 0.3 0.1 0.2 0.25 0.75 0.2 0.4 Strategies Focus Centered Evaluati Conver Evaluati Convert on mark t mark on mark mark 0.6 0.9 0.1 0.3 0.5 0.25 0.2 0.6 76 Viettel Mobile competitive strategy improvement during the period of 2010 - 2015 Time (T) Total mark 0.15 0.3 1.95 0.15 1.55 0.45 2.5 According to the market trend and present ability of Viettel Mobile, basing on method of selecting GREAT model optimal strategy, we propose competitive strategy for Viettel Mobile as focus- centered 3.5.3 Foundations to select focus strategy i The continuity of pursuing low cost strategy is unfeasible: in fact, when occupying over 30% of market share, Viettel Mobile has become the enterprise that controls the market Therefore, according the Law of competition, the price regulation must be approved by state management offices So if Viettel pursues low cost strategy but cannot decide the low price, it will not have competitive capacity to other competitors ii Moreover, the pursuance of low cost and price competition will lead to the war of price among mobile service providers, and that will lead to the fact that turnover and profit of those providers will reduce noticeably even loss iii It needs to change thinking of many customers that Viettel is the mobile providers at cheap price and moderate quality, so the customers consider the price is supposition of quality Thus they are afraid of quality of all goods and services of Viettel Telecompany and Viettel Corporation iv It can be seen that although ARPU does not increase, but in fact, the customers who use mobile services are more divided about demand, desire, habit as well as expense Although the number of customers has demand on mobile services is growing, due to income, consuming habit, etc they take density of low turnover v Meanwhile, the number of customers who want to use advanced services such as VAS, Data, 3G services, etc is more and more increasing in quantity and the expense level for those, the density for total turnover of customer subclasses is greater To ensure to satisfy the demand of those customers, the investment and operation costs will be satisfied all, in other words, it is impossible to pursue competitive strategy with low cost while it wants to satisfy all subclasses of customers 77 Viettel Mobile competitive strategy improvement during the period of 2010 - 2015 vi It is impossible to pursue focus strategy for all subclasses of customers because this pursuance for overall customers will cost a lot of time, many differences of products and services are not meaningful or valuable to many groups of customers, the improvement and change to adapt with environment are difficult, time – costly and big investment vii.The customer requirements are more and more diversified, complicated and stricter than ever before The customer demand and requirements are also divided into more groups, thus it needs to design products and goods only for these groups viii Basing on strengths of Viettel Mobile which have been expressed in SWOT analysis, the situation in strong finance, the insurance in investment capacity, the staff with high creativeness during the performance of the mobile services in the past time, distribution channels and collaborators over the country, etc From those reasons, together with the mission of Viettel Mobile as bringing about mobile goods and services that satisfy demand of each individual customer and regarding each customer as a specific human who needs to be respected, cared, listened, understood and served individually with more and more perfect goods and services, the selection of competitive focus – centered strategy is most suitable during 2010 -2015 3.6 Performing strategy After defining focus strategy, it needs to build forms for performing following strategies: - Differentiation about goods and services - Differentiation about customer service activities Since when it was established, Viettel Mobile had initial steps for forming focus strategy Beside the main strategy of low cost, from that to give out the packages with lower cost than competitors, Viettel Mobile has had packages that concentrate on each specific market segment First, they did rural – surrounding – urban campaign when bringing mobile services to rural areas to make difference to other networks in 78 Viettel Mobile competitive strategy improvement during the period of 2010 - 2015 network quality in rural and remote areas, from that to create good impression in customers in the whole country After creating the difference in network quality, Viettel Mobile continues to create packages serving subclasses of customers in the market: pupils, students, who loyally have a strong attachment to service provider, especially when they grow up to be soldiers, housewives, etc who are less cared by other networks And then, Viettel Mobile has packages serving corporate customers, for friends and relatives in a family called VIP Not only expressing differentiation in network quality, in packages and conditions of providing goods and services, Viettel starts to concentrate on differentiation in solutions, contents and even handsets Viettel Mobile is focusing on building and producing content programs, VAS serving for each customer who can select the content and service suitable for themselves Since 2008, Viettel Mobile was the only provider in Vietnam who provided mobile solution called Blackberry with emerging services for businessmen and enterprises The cooperation of different goods and services in different market segments will create different goods and services in arithmetic progression In the next time, Viettel Mobile needs to negotiate with producers to provide loved handsets in Vietnam and in the world like Iphone, HTC, Samsung, etc This will increase customer loyalty and satisfy the demand of changing handsets often of a big group of young customers with high income in Vietnam, which is regarded to be the highest market in the area of using greatly expensive handsets The second differentiation that needs to be exploited in market segments is the differentiation in providing services and customer care The differentiation in customer care does not only expressed through Viettel mission but also concretized in structure of the organization Beside the functional units, Viettel Telecom still has an area management unit directly controlled by a vice director This unit is formed from company level to 79 Viettel Mobile competitive strategy improvement during the period of 2010 - 2015 branches in provinces with over 10,000 collaborators over the country, allowing Viettel Mobile understand specifically the customers Thus Viettel will provide services and care customers suitably to each individual in each area Moreover, Viettel Telecom is the only company in Vietnam providing concurrently different telecommunication services including mobile phone service, fixed wire and wireless telephone, internet Therefore, since of establishment, Viettel has built abundantly distribution system - Direct shop and supermarket: 800 direct shops and supermarkets Authorized agency: 1,000 level agencies and 5000 level agencies Retail outlet: 10,000 retail outlets Direct salesman: 30,000 collaborators With the model of every head of hamlet being a Viettel collaborator, Viettel provide distribution channels even to the furthest areas Employees in all shops, agencies, retail outlet are impregnated with customer care idea in every time, everywhere which other enterprise have not done yet Therefore, it can be said that Viettel Mobile has concentrated on concentration strategy for each market segment with differentiation 3.6.1 Implementation solutions - Re-structure the apparatus: Divide and split the divisions in the Viettel Telecom to ensure implementation of the activities in the specialization orientation, simultaneously consolidate the uniformity from the top levels to the bottom ones, with the classification according to each region, type of services, etc - Promote the market research division: To design and supply differentiated products and fulfill the needs and demands of different market segments, it is necessary to promote the market research division in order to understand the customers’ needs and requirements in the areas and segments Currently, in Viettel Telecom, there is no specialized market research division; the data on customers is insufficient, not concentrated and unsystematic 80 Viettel Mobile competitive strategy improvement during the period of 2010 - 2015 - Establish a R&D centre: Currently, the military telecommunication corporation has established a specialized R&D division on new technologies However, this division has to cover the technology research and development for all business fields of Viettel, and only focuses on the technology aspect; therefore, in many cases it is not really suitable with customers Therefore, to efficiently use the market research information, to create differentiated products in terms of technology and friendly to users, it is necessary to set up a R&D centre in Viettel Mobile - Improve the customer care activities: Like other mobile phone suppliers, Viettel Mobile has recognized the importance of customer care activities Currently, Viettel Mobile’s customer care is the unit of largest scale nationwide In 2009, this activity has been improved dramatically which helps to change and improve efficiency of the customer care task However, in order to ensure implementation of the focal strategy in terms of differentiation, the customer care task must be renewed and improved incessantly to ensure that each customer must be cared as a differentiation individual, in the way they expect most This task must be performed uniformly from Viettel Telecom to its branches, sales centers, transaction shops as well as all contact units, in the customer care program The customer care needs to be considered the activity of all levels, all unit and all individuals Besides, the applying of measurement and inspection and evaluating customer care activities basing on Code of Customer Care Index is very important and essential - Investment solution: With the competitive strategy in differentiation in products and services which concentrate on 3G development, Viettel Mobile needs to select the solution of mass investment in BTS of 3G Although the investment cost for 3G is 2.5 times higher than that of 2G, the capacity of a BTS of 3G is as 20 times as that of 2G Besides, if we only invest partially the BTS of 3G while still keep BTS of 2G, we cannot satisfy customers’ demand when they move in the whole country Therefore, to provide the 81 Viettel Mobile competitive strategy improvement during the period of 2010 - 2015 quality of products and services well, to satisfy the higher and higher demand from customers, and to launch VAS in 3G technology, it is compulsory for Viettel Telecom to invest about 2,000 BTS of 3G all over the country - Solution in human resource: The self-training for business and technical staff was very effective in work implementation in the past However, knowledge and skills about strategy, business, administration as well as customer care are little and weak to Viettel Telecom, the administrative company of Viettel Mobile To overcome this, in training policy, Viettel pays attention to send staff to overseas for further training or in international cooperative programs at home However, to meet the requirments in human resource, there needs to have more suitable employment policy to attract hig quality human resource who have experience in management Besides, there needs to have programs and traning plans in management which order only for Viettel for all employees in all departments and medium managers in the whole system as well as the training more effectively for the employees about work skills, etc thus satisfy the requirements in human resource when fulfilling the new competitive strategy of Viettel Mobile in 2010 – 2015 - Ensure anti-reproduction of Viettel Mobile’s strategies: In order to ensure differentiation in the process of implementing the strategies, it is important to set up and maintain the corporate culture as in the past time The Viettel strategy of building vision and mission is closely linked to its culture; therefore, in order to maintain the differentiation when implementing the strategy, it is necessary to maintain and promote the origin of the strategy 3.6.2 Route of implementation: No Contents of tasks Re-structure the apparatus Establish market Year 2010 Year 2011 Year 2012 Year 2013 Year 2014 Year 2015 Note 82 Viettel Mobile competitive strategy improvement during the period of 2010 - 2015 research division Establish R&D division Improve the customer care activities Ensure antireproduction of strategy Implement continuously Implement continuously 3.7 Accomplish the evaluation and inspection task In previous years, the strategy evaluation has almost not been implemented in Viettel Mobile as well as Viettel Corporation Annually, only the evaluation of annual, quarterly, monthly plan implementation is conducted Adjustment of the objectives and ways of implementation is still not suitable, leading to mistakes and failures To ensure implementation of the focal strategy according to the successful differentiation, it is necessary to inspect and evaluate the objectives and implementation tasks and provide constant adjustments, once every 3-6 months periodically From which, experience lessons can be drawn and adjustments as well as modifications can be conducted to ensure successful implementation of the construction, and to improve Viettel Mobile’s competitive capacity 3.7.1 Building processes and KPI index to evaluate and measure Code of network quality measurement No Evaluation norm The network availability - the time rate available for providing services to customers Call Setup Success Rate Call Drop Rate Outgoing Hand-Over Success Rate Abbr D Unit % Target 99,99 CSSR CDR % % 99 0.5 HOSR % 98 Code of customer care index 83 Viettel Mobile competitive strategy improvement during the period of 2010 - 2015 TT A EVALUATION NORM RATE (%) Basic norms (obligatory) I Call Center 1.1 Connection rate to agent 1.2 Connection rate to IVR, updating to IVR content 1.3 Rate of calls treatment 1.4 Average answering time for each call 1.5 Rate of overdue treatment 1.6 Rate of successful complaint settlement 1.7 Rate of complaining about agent (attitude, knowledge) 1.8 Rate of customer satisfaction (measured from customer side) II Shop staff 2.1 Specialized knowledge 2.2 Attitude (measuring customer satisfaction) 2.3 Appearance III Charge collection service 3.1 Charge collectors 3.2 Bill delivery (details, receipts….) 3.3 Charge complain IV Repairing 4.1 Specialized knowledge 4.1.1 Realizing the error 4.1.2 Repairing the error 4.2 Operation 60 40 10 50 10 5 10 10 40 40 20 10 40 20 40 10 40 15 25 40 3.7.2 Comparing factual index with given KPI When we have the code of KPI about controlling methods to complete the strategy, there is a unit who follows and analyzes the factual figures and the norm every week and every month to find out the reasons; from that to find out two factors: - Find out solutions to fulfill given KPI - Find out unsuitable things of the KPI code to regulate 3.7.3 Regulation action Basing on given objective, factual market situation, the code of controlling strategy, Viettel has regulation action to follow selected objective every month 84 Viettel Mobile competitive strategy improvement during the period of 2010 - 2015 CONCLUSION Along with the fast economic integration process, the telecommunication market becomes more and more fiercely competitive Vietnam’s current mobile information sector has enterprises supplying the services However, in fact, the sector is being controlled by the big enterprises such as Viettel telecommunication Company with the brand-name of Viettel Mobile, VMS mobile information company with the brand-name of Mobifone and the telecommunication service company with the brand-name of Vinaphone Currently, Viettel Telecom is the leading company in terms of the market share of mobile information services, accounting for about 40% However, with the increasingly competitive pressure in the mobile information sector, the price war among the enterprises is increasingly fierce as one recent judgment from the Ministry of Information and Communications, the promotional programs of the mobile information enterprises are conducted for almost 360 days in a year According to the rate of subscribers who quit the network, disloyal subscribers to one brand-name increase very highly Therefore, maintenance and improvement of the competitive capacity for a telecommunication company is not an easy task To maintain and improve the competitive capacity, the enterprise needs to focus on studying and identifying the development trend of the sector in the future, and simultaneously to select one proper business strategy in the new period as well as produce uniform solutions to create favorable advantages against its competitors in the highly competitive market of mobile information services of Vietnam now and in following years The solutions are: Expand coverage area, improve network quality, develop the number of subscribers and expand market share, develop service scale… In order to conduct the solutions of improving competitive capacity for enterprise and through which to help the enterprise develop more, it usually requires company’s leaders to change their old, traditional ways of thinking to have access to modern ones and to build up long-term business strategies, then the company can gain achievements in the highly competitive environment in the current mobile information sector This thesis pay raises one strategy and some solutions which are practical and can be applied to maintain and improve the Viettel telecommunication company’s competitive capacity 85 Viettel Mobile competitive strategy improvement during the period of 2010 - 2015 Hopefully, this capstone project paper will contribute to maintaining and improving the market share for the Viettel telecommunication company and making the brand-name of Viettel Mobile the number one in Vietnam and a famous one in the world 86 Viettel Mobile competitive strategy improvement during the period of 2010 - 2015 REFERENCES In Vietnamese: Bộ Thông tin Truyền thông, Quy hoạch phát triển Viễn thông Internet Việt Nam đến 2010, ban hành ngày 7/2/2006 (Quyết định số 32/2006/QĐ-TTg) Bộ Thông tin Truyền thông, Chiến lược phát triển Thông tin Truyền thông Việt Nam đến 2010 định hướng đến 2020 Báo cáo tổng kết hàng năm Tổng công ty Viễn thông quân đội – Công ty Viễn thông Viettel Niên giám thống kê năm 2000-2008 Báo cáo tổng kết Bộ Thông tin Truyền thông năm Lê Thế Giới, Quản trị chiến lược, 2009 In English Charles W.L Hill, Gareth R.Jones (2002) Strategic Management, An intergrated Aproach, th Ed Houghton Mifflin Grahan J Hooley, John A Sauders, Nigle F Pierry(1998), “Marketing strategy & Competitive positioning” Prentice Hall Europe Grant, Robert M, Contemporary Strategy Analysis: Concepts, Techniques, Applications, 2005, 5th ed, Blackwell Publishers Henry Mintzberg, James Brian Quinn, John Voyer (1995), The Strategy Process, Collegiate Ed.Prentice Hall Michael E.Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors, 1998, 1st ed Free Press Miller (1998), Strategic Management 3rd Ed Irwin/McGraw – Hill Nguyen Dang Nguyen Deputy Manager of technology & Network development department of VMS (2006), “Core network development and the services for Mobifone Network presentation” Richard D’Aveni and Robert Gunther (1994), “Hypercompetition” Free Press ROA (2006), “Report on Mobile market of Vietnam” 87 Viettel Mobile competitive strategy improvement during the period of 2010 - 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