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1. Introduction to the research topic: Humans need communication, from the early period of history, a variety of means of communication has been used for people to contact with each other such as signals, radio, television and so forth. Which is now an integrated part of a society, which is important in any communication process? The answer, actually, is information. In every kind of communication, transferring information is considered as the most important function. In terms of economics, information has been found as a fundamental element for the efficient growth of an economy. “The electric transfer mode, which includes broadcasting and telecommunication, plays a very important role in information management” (Abolarin Damilola Oluwatobi 2006) Telecommunication provides a lot for the world. “Not only does it create these things as a product of itself, it benefits and enhances the whole world market by creating a tighter community and allowing for quicker reaction time and exchange of information”(Jake Rose 2007). Besides comfortable and useful products, telecommunication also brings services, which are able to connect people in the shortest and best convenient way. Development in telecommunication provides helpful research and foundation for other technologies also. Recognizing the increasing important role of telecommunication, especially in the case of tightening the relationship among countries all over the world, telecommunications operators of many nations are competing to build up their own network in other countries. Therefore, it is crucial for marketers and investors to discern how potential customers perceive the advantages of their telecoms network and how to attract a large number of customer using their products and services. In order to gain the competitive advantage, it is vital for organization to spend time as well as money focusing on customers and their demand in particular. According to Pham Tan, customer’ demands, relate to the requirements of customers before, in, and after using or buying products of a company. Therefore, it will be a big mistake if a business, especially a business that wants to invest into foreign countries does not take customers into consideration and does not pay attention to their demands. Viettel is not an exception, existing as a big telecommunication corporation in Vietnam and realizing the difficulties in saturated domestic market as well as the necessity to penetrate to other foreign market, it has its own steps and strategies to do business across borders. From the above background, I have chosen for myself the topic: “Analysis of Cambodian people’s demands for Viettel telecoms services” in the hope that some findings and recommendations of my report could be a reference for Viettel in analyzing the demands of customers in Cambodia in order to best meet their requirements.
INTERNSHIP REPORT i ACKNOWLEDGMENT This Internship Report is the result of thirteen weeks of doing internship at Viettel Corporation, doing writing during the spring of 2010 It has been an interesting and learning experience In fulfilling this report, I would like to give my special thanks to many people for their significant helps, contributions, and recommendations during my writing process First of all, I would like to express my deepest sense of gratitude to my supervisor, Principal lecturer M.A Ha Thi Kim Anh for her patient guidance, encouragement and excellent advice throughout my study Secondly, my sincerely thanks are given to all of my lecturers at the National Economics University for providing me with knowledge and instructions during my time at university Thirdly, I would also like to give my heartfelt thanks to the authors who provided me with valuable books for my report Fourthly, I am thankful to Ms Nguyen Thi Hoa, Header of International Relations Department, Viettel Global, JSC, for her comment and positive spirit that helped and inspired me in writing Last but not least, I take this opportunity to express my profound gratitude to my beloved family and friends for their moral support and patience during my study in National Economics University TRAN THI HUYEN TRANG Tran Thi Huyen Trang - K48NEU ii INTERNSHIP REPORT TABLE OF CONTENTS ACKNOWLEDGMENT i EXECUTIVE SUMMARY .ii INTRODUCTION iii Introduction to the research topic .iii Rationales iv Research questions .iv Methodology iv CHAPTER I: INTRODUCTION I General view of Viettel Corporation 1 Introduction to Viettel Corporation Business Philosophy Development attitudes II Problem III Research questions IV Methodology V Scope of the report .4 CHAPTER II: THEORETICAL FRAMEWORK I Introduction II Theories overview Business across borders .5 Characteristics affecting consumer behavior .6 Definition of customer satisfaction Market penetration strategies .7 CHAPTER III: ANALYSIS AND FINDINGS I The telecommunication market in Cambodia .9 The factors impact on the telecommunication market in Cambodia 10 1.1 Political factor 10 1.2 Cultural factor 11 1.3 Developmental Factors 12 1.3.1 Economics Factor 12 1.3.2 People’s living standards factor and intellectual levels factor .13 Tran Thi Huyen Trang - K48NEU INTERNSHIP REPORT iii 2.Evaluation of the potential of telecommunications market in Cambodia 15 2.1 For mobile sector .16 2.2 For fixed-line sector 16 2.3 For internet sector 17 2.4 Conclusion .17 II Demands on using Viettel Telecoms services of Cambodian people 18 Supplying ability of Viettel in Cambodia market .18 1.1 In mobile sector .18 1.2 For internet sector 23 1.3 For fixed-line sector 23 1.4 Promotion programs and customers service 24 Evaluation of Metfone supplying ability 26 2.1 The strengths of Metfone of supplying telecoms products and services 26 2.1.1 Market share and various products 26 2.1.2 Price .27 2.1.3 Customer service 28 2.2 The difficulties of Metfone of supplying telecoms products and services 28 2.2.1 Fierce market competition 28 2.2.2 BTS and ADSL activation due to lack of electricity .28 CHAPTER IV: RECOMMENDATIONS 29 I For fierce market competition 29 Improve customer’s service .29 Surmount electricity shortage 30 Apply promotion and suitable price 30 II For BTS and ADSL activation due to lack of electricity 32 III Conclusion .32 CONCLUSION .33 BIBLIOGRAPHY 34 Tran Thi Huyen Trang - K48NEU INTERNSHIP REPORT iv EXECUTIVE SUMMARY This report aims at analyzing the demand of Cambodian people for using Viettel’s telecommunication services in general and for Viettel Telecoms Corporation’s services in particular in order to find out whether Viettel has satisfied the customers or not and how to best meet the requirements of them In this report, data and information have been collected and analyzed to find out what Cambodian people need The report has been prepared and written in the period of 15 weeks of my doing internship at Viettel Telecoms Corporation All my data mentioned in this report are collected from Viettel’s reports on telecoms market in Cambodia as well as information from the government’s websites This report is consisted of chapters Chapter I gives general formation about Viettel Telecoms Corporation such as business fields, business philosophy and development attitudes In addition, the main problem of that Viettel is encountering has been pointed out Chapter II provides the theoretical framework of this study Chapter III analyzed the Cambodian telecoms market, the supplying ability of Viettel telecoms and the demand for using Viettel services of Cambodian people In this chapter, the advantages and disadvantages of each package of Viettel applied in Cambodia have been evaluated Chapter IV gives some recommendations for the improvement of Viettel’s services as well as products in the hope that these recommendations would make some contributions to the development of Viettel in Cambodia under the brand name of Metfone Due to the shortage of time and experience of the author, this report may have some mistakes All the contributions are welcomed Tran Thi Huyen Trang - K48NEU v INTERNSHIP REPORT INTRODUCTION Introduction to the research topic: Humans need communication, from the early period of history, a variety of means of communication has been used for people to contact with each other such as signals, radio, television and so forth Which is now an integrated part of a society, which is important in any communication process? The answer, actually, is information In every kind of communication, transferring information is considered as the most important function In terms of economics, information has been found as a fundamental element for the efficient growth of an economy “The electric transfer mode, which includes broadcasting and telecommunication, plays a very important role in information management” (Abolarin Damilola Oluwatobi 2006) Telecommunication provides a lot for the world “Not only does it create these things as a product of itself, it benefits and enhances the whole world market by creating a tighter community and allowing for quicker reaction time and exchange of information”(Jake Rose 2007) Besides comfortable and useful products, telecommunication also brings services, which are able to connect people in the shortest and best convenient way Development in telecommunication provides helpful research and foundation for other technologies also Recognizing the increasing important role of telecommunication, especially in the case of tightening the relationship among countries all over the world, telecommunications operators of many nations are competing to build up their own network in other countries Therefore, it is crucial for marketers and investors to discern how potential customers perceive the advantages of their telecoms network and how to attract a large number of customer using their products and services In order to gain the competitive advantage, it is vital for organization to spend time as well as money focusing on customers and their demand in particular According to Pham Tan, customer’ demands, relate to the requirements of customers before, in, and after using or buying products of a company Therefore, it will be a big mistake if a business, especially a business that wants to invest into foreign countries does not take customers into consideration and does not pay attention to their demands Viettel is not an exception, existing as a big telecommunication corporation in Vietnam and realizing the difficulties in saturated domestic market as Tran Thi Huyen Trang - K48NEU INTERNSHIP REPORT vi well as the necessity to penetrate to other foreign market, it has its own steps and strategies to business across borders From the above background, I have chosen for myself the topic: “Analysis of Cambodian people’s demands for Viettel telecoms services” in the hope that some findings and recommendations of my report could be a reference for Viettel in analyzing the demands of customers in Cambodia in order to best meet their requirements Rationales: In the growth of global economy and integration along with fierce competition in telecommunication market in Vietnam, it is essential for Viettel Corporation to expand to foreign markets Cambodia is one of the two first foreign markets which this military corporation want to penetrate into It is the fact that customers are the foremost important element needed to be considered by any enterprise or corporation in doing business Taking care of customers also means satisfying their demands or desires Therefore, doing research on Cambodian people’s demand is one of the fundamental steps for Viettel to expand investment in this market Research questions: In this internship report, the key question “How to best satisfy Cambodian customer’s demands for using Viettel Telecoms services?” will be absolutely solved Methodology: The desk-study method is mainly used during the time of writing this internship report In other words, this method is assessment of existing data, an investigation of the available facts and figures relevant to the report The details information which is related to this method will be illustrated in Chapter I Tran Thi Huyen Trang - K48NEU INTERNSHIP REPORT CHAPTER I: INTRODUCTION I General view of Viettel Corporation: Introduction to Viettel Corporation: Viettel Corporation is a state-owned enterprise, which was established under the decision 336/QD-QP in 27/07/1993 granted by The Ministry of National Defense and the decision 43/2005/QD-TTg in 02/05/2005 by the Prime Minister Transaction name: Viettel Corporation Address: No Giang Van Minh street- Ba Dinh district- Hanoi City Tel: (84-4) 6255 6789 Fax: (84-4) 6299 6789 Website: http://www.viettel.com.vn This corporation does business in the following fields: Providing Posts and Telecommunications services Developing software products for electronic, telecommunications, communication technology, Internet Producing, assembly, repairing and trading in electric, telecommunications electronic, communication technology and wireless electric receive – transmitting equipments Constructing posts and telecommunications, communication technology, electrical transmission works Doing surveys, developing posts and telecommunications, information technology projects Training human resources for posts and telecommunications industry Investing in infrastructure, real estate, hotel, travel, warehouse and transportation Importing and exporting equipment for electronic and communication, information technology projects Producing pulp and paper products, carton Pressing and printing services Producing cards for post and telecommunication industry, services industries During 20 years doing business in telecommunications industry, Viettel has been Tran Thi Huyen Trang - K48NEU INTERNSHIP REPORT gained many achievements and some international as well as national awards including: Most well-known Brand in Post – Telecom – IT Industry, Vietnam award elected by consumers The first Vietnamese operator to invest directly overseas No.1 mobile operator in Vietnam with nation-wide GPRS coverage, 11 million subscribers base and one of fastest growing mobile operator worldwide (Wireless Intelligence) No transmission infrastructure No distribution channel in Vietnam Business Philosophy: Since Viettel Corporation’s foundation, it has been in operation with the following philosophy: Each customer is a person - a specific individual, therefore he/she should be respected, cared and served separately Continuous innovation along with customers’ comments will help Viettel to create products and services more perfect A business’s foundation is social development, Viettel commits to reinvest in society through cohesion between business activities and charity activities Colleagues must behave honestly and maintain the mutual assistance in order to build up the success for Viettel Development attitudes: Along with the above philosophy, the following development attitudes also contribute to the orientation in doing business of Viettel Corporation: Combining economy with tight defense Investing in infrastructure Focusing on doing business based on customers’ orientation Developing rapidly and continuously reforming to adapt to the market II Problem: In the growth of global economy and integration along with fierce competition in telecommunication market in Vietnam, it is essential for Viettel Corporation to expand to foreign markets As a company dealing with foreign invesment projects for the purpose of expanding to new markets and spreading brandname as well as prestige and reputation of Viettel, Viettel carefully carries out step by step of foreign investment process Customers play an increasingly important role in market establishment, even in the existing or new market Therefore, catching their attentions, meeting their demands are the desire of any enterprise Pham Tan supposes that a firm cannot have loyal customers without having satisfied Tran Thi Huyen Trang - K48NEU INTERNSHIP REPORT customers Moreover, statistics show that growth in market share is strongly correlated with customer satisfaction Many enterprises have been making a serious mistake that they “only make great efforts to take care of customers in the first period” ( Pham Tan 2009) until customers are familliar with their products or services but foget the importance of maintaining and improving relation between two sides In the concept of taking care customers, this mistake brings, actually, disappointed fellings to customers There are many reasons why customers left the businesses, partly because of high prices, the changes in interest but the majority of customers said they stopped using a product or service of the company because they did not receive the proper care, or their complaints were not resolved quickly “Doing business doesnot dislike struggling in war, if you let yours customers’ hands down, your competitors, immediately take them and even unfortunately the chance will be taken away by yourselves”( Ibid) Thorougly perceving the importance of customers, Viettel Corporation always sets target of serving customers as the foremost important task To attract customers and keep them along with company as loyal customers, Viettel has been conducting a lot of researches which aim at catching their needs and any changes in their demands In that process, the analyzing of customers’ demands always is considered as the most important task Cambodia is one of the two first foreign markets which this military corporation wants to penetrate into It is the fact that customer is the foremost important element needed to be considered by any enterprise or corporation in doing business Taking care of customers also means taking care of their demands or desires Therefore, doing research on customers’ requirements or Cambodian people’s demands is one of the fundamental steps for Viettel to expand investment in this market III Research questions: The key question is “How to best satisfy Cambodian customer’s demands for using Viettel Telecoms services?’’ To answer this core question, it is essential to answer the following three questions: i How many Cambodian customers are using Viettel Telecoms services? ii.What is the number of Cambodian customers, who are expected to use Viettel Telecoms services in the future? iii What should Viettel to best satisfy Viettel’s current customers and attract potential customers? Tran Thi Huyen Trang - K48NEU INTERNSHIP REPORT IV Methodology: The desk-study method is mainly used during the time of writing this internship report Most of materials are extracted from relevant books, articles and documentations in both English and Vietnamese The data, concepts, theories and figures are collected to analyze the demands of Cambodian customers for Viettel Telecoms services Documentation is used as primary sources of information in forms of books, articles and websites to collect data for this report, as well as background information about the organization V.Scope of the report: According to the requirements of writing internship report, this report is consisted of about 33 pages Therefore, the content of this report only focuses on analyzing the demands of Cambodian people for using Viettel Telecoms services and giving out some recommendations CHAPTER II: THEORETICAL FRAMEWORK Tran Thi Huyen Trang - K48NEU 21 INTERNSHIP REPORT Calls 24 h SMS Within network Across network c/min 7.2 c/min 2.0 c/SMS 4.0 c/SMS International call 15 c/min – 24hrs and no code needed Registration fee $8 Monthly subscription $4 Depositl $20 $50, $100 or $ 200 International call 15 c/min – 24hrs and no code needed Special rates for: Vietnam, Thailand, Laos, USA, Australia, Japan, China, Hong Kong, Singapore, South Korea, Taiwan, others: 25c/min Source: http://www.metfone.com.kh/services/mobile/ In addition, there is a special policy applied for customers who consume highly every month, such as: - Deduction scheme: According to Metfone, if monthly usage amount is within the range >=$25 and =