PHÂNTÍCH, ĐÁNH GIÁ HIỆU QUẢ CHIẾN LƯỢC KINH DOANH CƠNG TY CỔ PHẦN MAY VIỆT TIẾN I Advantages and disadvantages of approaches: via industry analysis and via business resources 1.1 Industry analysis An industry is a group of companies providing products or services that can substitute for each other closely During the competition, these companies affect each other Goods and services which satisfy customers’ demands are basically similar Industry analysis also indicates: advantages of absolute cost, economies of scale, switching costs, government regulations and retaliations of companies within the industry, barriers to enter and competitions of rivals in the industry Advantages - Highlight the economic characteristics of industry, life circle of industry, trends of life circles to define the scales of investment limitation - Competitive forces within the industry; the nature and the power of forces Porter Five forces Model: - Drivers of industrial changes and effects - The strongest and weakest competitors - Key factors for the success and failure in competition - Attraction of the industry in terms of possibility to gain profits higher than average - income The number of competitors, the position of the company in the industry Industry analysis allows leaders to realize opportunities and threads; Through strategic selections, the company can turn the powers of one or more forces into its own advantage Basing on Five forces model of Porter, some issues are highlighted: - Thread of new entrants - Competitive rivalry within the industry - Bargaining power of suppliers - Bargaining power of customers - Thread of substitute products In conclusion, industry analysis helps companies to exploit current conditions and make use of certain advantages Disadvantages: If business strategy is solely based on an analysis of industry, administrators will not know the actual capacity of the business as well as they are only able to build strategies that enterprises themselves are incapable of performing on scales of science and technology, capital, human resources, process management and competitiveness Business opportunities can be captured but there are no resources and then enterprises can not achieve market opportunities that brings - The model assumes that the competition is in a perfect environment For business environment which has many laws, the model is limited - The model is only suitable for industries which are simple For more sophisticated industries, in which there are many supportive relations, the model oversees some important factors - The model is only right when business conditions are quite static - The industry model only analyze the general picture of industry and postion of company; can not analyze inside characteristics, advantages and ways to maintain advantages 1.2 Advantages of resources analysis: - Allow administrators to know about capital and ability to manage capital of the - company Help administrators realize strengths and weaknesses of the company and then point - out chances and challenges the company can possibly cope up with Build a best business strategy to avoid wasting resources Capital and Capital management of companies, capital is used properly? The organizational structure of reporting system, planning, coordination and control - of the comapny Perceptions of quality, duration and trust Effective reactions and win-win supports, Access to sources of raw materials, techonologies, patents, trademarks, trade secrets - with low trading costs The modernity of equipments and the position of the company Confidence, satisfaction of employees in the company Knowledge, skills, capacity - management and disciplines Ideas of innovations in production, scientific capacity as well as innovative - capacity? Fame of the company, credit in the heart of customers Competitiveness, time for product development and short commercialization, ability to create networks of agents Disadvantages: If we only access from the internal resources without analyzing business sectors and other factors, this will impact very severely to business strategy Then businesses can fall into the situation of massive production without knowing the market demand, leading to inventory and cash flow is not circulating Produce out-dated products due to slow entrance (life circle of product is short) Do not know disadvantages if entering market; strengths, weaknesses of competitors and substitute products Do not know the number of suppliers and the importance of products for suppliers There is no information supported by associations and there is no support from companies within the industry (for examply: your company has signed a major contract with European partner Due to disaster factor, raw materials are stuck In such situation, you can call for help of other businesses in the industry to ensure the production schedule, which can avoid compensation and losing credibility) II/ Analyze and assess business strategy of Viettel Introduction Headquarter: No 1, Giang Van Minh, Kim Ma Street, Ba Dinh district, Hanoi Founder: Ministry of Defense Decision 43/2005/QĐ-TTG in 02/03/2005 approved by the Prime Minister to establish Military Telecommunication Corporation and Decision 45/2005/QĐ-BQP in 06/04/2005 issued by Ministry of Defense to establish Military Telecommunication Corporation * Business activities - Provide telecommunication services; - Transmission; - Postage; - Distribute terminal equipments; - Financial investment; - Communication; - Real estate investment; - Foreign investment Business strategy of the Corporation Viettel has analyzed and assessed in both sides: industry analysis and resources analysis In my opinion, Viettel use industry analysis more 2.1 Industry analysis a Current rivals Competition in Vietnamese telecom market is currently intense with three leading corporations: Viettel, Mobifone and Vinafone Viettel is established later than the others However, the corporation does have pretty good business strategy in the past few years Thus, it took the leading position in telecom industry No Name Market share (%) Viettel 44 Mobifone 35 Vinafone Sfone Evntelecom Vietnam Mobile Gtel Though Viettel is taking more market shares than many other corporations, the status of telecom market is approaching equilibrium point (Mobifone accounting for 35% total share) Vinafone and Mobiphone have the best conditions to develop and tend to become the main competitors of Viettel b Potential rivals - Communication "encroaching" telecommunication: The plan of accessing Internet via TV cable network (with the advantage of broadband) With the development of technology, telecommunication - information technology and communication companies in Vietnam began to become direct competitors of each other Access to Internet via TV cable network can reach to the speed of 54 Mbps download and 10 Mbps upload At the same time, through the transmission system, customers can also access many other services such as online games, watching TV on computers, watch TV and movies on requests - The call and message applications over 3G or wifi such as Zalo or Viber are potential competitors with existing mobile networks With striking advantages of calling and texting without paying charges (only take payments for 3G or wifi), these social networking applications will become the biggest threats to Viettel - There are many foreign investors want to participate in Vietnam market Vietnam is a populous country with over 90 million people Though mobile networks have developed over 20 years, the market is still potential The big telecom corporations such as Verizon, AT & T all want to enter telecommunication market in Vietnam c Customers Though the telecom market includes of providers: Vinaphone, Mobifone, Viettel, HT mobile, EVN Telecom, S-fone and Gtel mobile, Viettel still shows the differences: - having largest number of mobile subscribers - having widest coverage - having most competitive charges - having most attractive service packages - having best caring policies The confidence of customers has made Viettel becomes largest mobile telecom corporation in Vietnam However, telecommunication industry is very sensitive Thus, a wrong policy can cause huge consequences to business situation of Viettel d Suppliers • Financial suppliers: BIDV, MHB, Vinaconex, EVN • Materials and goods suppliers: AT&T (US), BlackBerry Nokia Siemens Networks, ZTE e Substitute goods Currently, on the market, mobile phone and cell phone are main means of communication With prominent features, mobile phones are gradually replacing cell phones (mobile phone is portable and can access to Internet) However, Viettel also faces up with alternative products They consist of wifi, products which allow internet chat, skype, voice chat, google talk (this service has been installed throughout Danang city) or ADSL Viettel needs to develop strategies to reduce costs and improve quality to continue to maintain market share Resources analysis of Viettel 3.1 Strengths and Weaknesses a) Strengths - Viettel has large capital, competitive advantages and the trust of customers - Highly-skilled and active staff - Technical network of Telecom has been upgraded on the basis of investments in high-tech, low-cost, effective, and affordable sciences - The corporation also has the advantage of being a state-owned enterprise leading in the field of Telecommunications, inherited a long tradition of Telecommunications network nationwide b) Weaknesses - Scale of network does not meet requirements - Competition on service quality and charge is still limited - Low productivity - Services are still limited 3.2 Analysis of marketing activities - Viettel is one of many providers which have various types of products and best services Products and services are diverse Viettel has products targeting customers by age and by income level - Though the telecom market includes of providers: Vinaphone, Mobifone, Viettel, HT mobile, EVN Telecom, S-fone and Gtel mobile, Viettel still shows the differences: - Having largest number of mobile subscribers: The number is more than 20 million, accounting for 40% total share - Having the widest coverage: Viettel currently has about 12,000 base stations, not only in the urban coverage but also rural areas, remote areas and islands Viettel mobile subscribers can call anywhere at any given time without concerns about being obstructive - Having the most competitive charge: Viettel offers very attractive charges The packages of Viettel are really attractive and appropriate for each type of customers Operators like us truly understand the meaning of each product - Having the most attractive package: packages like Happy Zone, Homephone without subscription charges, Sumo sim or "Father and son" are distinct service packages - Besides, Viettel has many programs associated with great benefits of society or humanitarian policy The corporation pays special attention to the poor and children Viettel has responsibility for social programs such as Internet for education, phone conference for Department of Health Viettel has helped millions of students, teachers, and students have the opportunity to contact with science and technology ; help doctors, nurses and those working in health sectors talk and workshop together on a difficult surgery in spite of thousands of kilometers geographically away - Every year, Viettel spent billions VND to support the poor with special program held at the end of the year Also, recently, Viettel joined hands to raise funds for the program "Heart for Kids" to help children with congenital heart disease - Preferential policies : + Incentives on services: Served in separate areas for VIP customers at Viettel supermarkets nationwide ; priority to response before calling 19008198 ; deferred billing block, installed and tested new services ; free charges deposit for Roaming + Incentives on costs: Customers can change points to money deducted in fee/account (1 point equals 20vnd) ; cost reduction when using Value Added Services ; receive a birthday present every year Especially, with Viettel Privilege membership card, customers also receive discounts when using the services of affiliate partners of Viettel nationwide - Pricing function - Price is a tool that the company can use to achieve marketing goals Decisions on prices must be coordinated with decisions on designs, distribution and promote to to create a consistent and effective marketing campaign Thanks to reasonable pricing strategy, the price of services and products of Viettel are considered to be extremely attractive, which have helped Viettel compete with large rivals Advantage factors - The company is operating in the field which have been identified "priority to develop" by State, which is a favorable condition for the renovation and development - Vietnam is considered as a potential market with economic growth and high population This is a big advantage for telecommunication companies in general and Viettel in particular - Quality of services of the company are better and better ; fulfill the demand for communication and using internet of customers ; The company has created trust and develop a large number of loyal customers over the past years - Viettel Telecom network has been covering all provinces and the company becomes biggest telecommunication services provider with 50 million subscribers all over the nation - Financial activities of the company is quite transparent - In addition, the company built a corporate culture, overcoming difficulties and proposing creative solutions to accomplish their assigned tasks Disadvantage factors : - In telecommunication market, Viettel must face up with fierce competition coming from other companies like MOBIEPHONE, VINAPHONE, SPHONE, BEELINE… - Habit of using telecommunication services and internet in Vietnam is still low thought it has been increasing rapidly - Investments are paid attention but lack of synchronization, leading to difficulties in network management - Economic crisis reduces the demands of customers - Customers require better quality but lower prices - Some other risks which can affect to activities of the company : disaster, war, disease Assess business strategy of Viettel Viettel has organized its checking system as follows : - Board of supervisors usually carries out checking activities of Board of managers and Departments; - Sudden checking member units Then, submit reports to Board of Directors - CEO and assistant departments carry out periodic or suddent checks for member units Internal information channels: financial reports, quarterly reports, year-end reports Viettel also collect information from outside : from customers and from competitors Basing on collected information, managers carry out analyses and assessments of process of implementing strategies to make adjustments Annually, the corporation has adjusted strategic targets, prices and tried to improce financial managements During the process of implementing strategies, the corporation paid attention to checking activity, collect necessary information and have proper adjustments In general, like most other domestic companies, building strategy still differs from implementing strategy However, after only a short time conducting and implementing management strategies, Viettel has achieved much success Viettel brand name gained certain stand for customers and is ranked the first in domestic market Right strategy and effective utilization of resources, along with reasonable direction of Board of Directors and the concensus of all employees, Viettel has stood stably during crisis economic and continued to develop and expand the market 10 ... state-owned enterprise leading in the field of Telecommunications, inherited a long tradition of Telecommunications network nationwide b) Weaknesses - Scale of network does not meet requirements... Customers can change points to money deducted in fee/account (1 point equals 20vnd) ; cost reduction when using Value Added Services ; receive a birthday present every year Especially, with Viettel... strategy, the price of services and products of Viettel are considered to be extremely attractive, which have helped Viettel compete with large rivals Advantage factors - The company is operating