Strategy of developing new IT products to the vietnam market case study of dell EMC

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN THỊ PHƯƠNG THẢO STRATEGY OF DEVELOPING NEW IT PRODUCTS TO THE VIETNAM MARKET CASE STUDY OF DELL EMC CHIẾN LƯỢC PHÁT TRIỂN SẢN PHẨM CÔNG NGHỆ THÔNG TIN MỚI TẠI THỊ TRƯỜNG VIỆT NAM NGHIÊN CỨU ĐIỂN HÌNH TRƯỜNG HỢP DELL EMC LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2018 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - NGUYỄN THỊ PHƯƠNG THẢO STRATEGY OF DEVELOPING NEW IT PRODUCTS TO THE VIETNAM MARKET CASE STUDY OF DELL EMC CHIẾN LƯỢC PHÁT TRIỂN SẢN PHẨM CÔNG NGHỆ THÔNG TIN MỚI TẠI THỊ TRƯỜNG VIỆT NAM NGHIÊN CỨU ĐIỂN HÌNH TRƯỜNG HỢP DELL EMC Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: PGS.TS NGUYỄN VIỆT KHÔI Hà Nội - 2018 ACKNOWLEDGEMENT The decision of pursuing MBA course is very important to me, especially for my career development Thank you very much to all efforts that helps me proceeding smoothly through all the modules and reaching this final one The completion of this paper is emotionally appreciated by the support of all parties Firstly, I would like to say thanks to all my lecturers and members of the HSB that provide me with constructive knowledge and support me with enthusiastic ideas Importantly, I would like to send my special thanks to Ass Pro Nguyen Viet Khoi with his constructive and enthusiastic advices, suggestions and supports during my researching Furthermore, I also want to express my warm thanks to all the survey participants Thank you for all of you that allocated your schedule to give me your valuable ideas and opinions Without yours, the research value could not be achieved Last but not least, I would like to thanks my family who has supported me with strong encouragements during my studying period Thank you Hanoi, February 2018 The Author i ABSTRACT This research, on the understanding of the importance of launching programs for new IT products in local market, is keen on comprehending demands of customers and marketing environment in the case of IT industry with the use of IT products within the Vietnam context The level of exploiting IT products for information management including security and backup is thought to be low by which the space for IT providers is abundant In the specific case of Dell EMC Vietnam – the giant in backup and security IT product industry, the research gets the client-based information, marketing environment of Vietnam and potential of Dell EMC in launching new IT products to Vietnam market to propose empirical tactics in projecting marketing mix plan The paper attempts to comprehend components of marketing plan including marketing environment through PESTEL, Five forces, competition analysis Marketing mix of 7Ps are mentioned as the core premise to formulate the conceptual framework including marketing offerings and efforts With the analysis of giving empirical observation and subjective meanings in project marketing mix plan, the paper is started with firstly the desk-based research through secondary data to develop the academic framework; secondly the small-scale survey with the participation of 30 enterprises in Vietnam market as the empirical client-based information; and lastly after having the picture of marketing environment, the author with her experiences and discussions with IT managers to dig deep in each cause for meaningful recommendations In the current context of Vietnam, the generalization in launching new IT products should be focused on small and medium private and foreign-owned enterprises who have market scope of national-wide or ii with import/export/international dealing activities Manufacturing and commercial, trading are two pointed focuses Although the focus is not mainly involved the market life, the preference is on new businesses with short-life market According to research findings, recommendations for projecting marketing mix plan along with the mentioning of risk analysis is proposed with the expectations of giving tactics for the successful launching of new IT products in the Vietnam market iii TABLE OF CONTENT ACKNOWLEDGEMENT i ABSTRACT ii TABLE OF CONTENT iv LIST OF FIGURES/ TABLES vi INTRODUCTION CHAPTER FUNDAMENTAL THEORY OF LAUCHING STRATEGY 1.1 Marketing plan and its roles 1.1.1 Marketing plan 1.1.2 The role of marketing plan 1.2 Models of marketing plan 10 1.2.1 Marketing mix of 7Ps 10 1.2.2 Porter‟s five forces 13 1.3 SWOT analysis 15 1.4 BCG matrix 16 1.4.1 Promotion in marketing 17 1.4.2 Segmentation-Targeting-Positioning (STP) 17 1.4.3 The conceptual framework 18 CHAPTER PROPOSING AND DEVELOPING STRATEGY FOR NEW IT PRODUCTS TO VIETNAM MARKET CASE STUDY OF DELL EMC 19 2.1 Research mehodology 19 2.1.1 Philosophy 19 2.1.2 Approach 20 2.1.3 Research method 21 2.1.4 Data collection 21 2.1.5 Data analysis framework 23 iv 2.1.6 Ethical issues 25 2.1.7 Limitations of the research process 25 2.2 Data analysis and findings 25 2.2.1 Market analysis 25 2.2.2 Meaningful factors when using IT products 29 2.2.3 Determinants in decision of IT products using 32 2.4 Interest/ intention and purpose of using IT products 32 2.5 Dell EMC analysis 39 CHAPTER PROPOSAL SOME SOLUTION TO IMPLEMENT STRATEGY OF DEVELOPING NEW IT PRODUCTS FOR DELL EMC 42 3.1 Marketing mix recommendations 42 3.1.1 Marketing objectives 42 3.1.2 Target clients 43 3.1.3 Marketing mix 43 3.1.4 Marketing effort control 46 3.1.5 Risk analysis 47 3.2 Implications for further researches 49 CONCLUSION 50 REFERENCE 51 APPENDIX 53 Appendix 1: Questionnaire 53 Appendix 2: Demographic information 56 Appendix 3: Reliability test 58 Appendix 4: Factor analysis 67 Appendix 5: Descriptive analysis 75 v LIST OF FIGURES/ TABLES Table 1.1 Marketing mix 7Ps 11 Table 1.2 Influencers for marketing in goods and service aspects 13 Table 2.1 Sample characteristics (N = 30) 28 Figure 1.1 Influencing factors of marketing plan Figure 1.2 Five forces model in marketing perspective 14 Figure 1.3 Resource-based SWOT analysis 16 Figure 1.4 BCG matrix 17 Figure 1.5 The conceptual framework 18 Figure 2.1: A progressive focusing model in qualitative research process 24 Figure 2.1 Purpose of using IT products 33 Figure 2.2 Purpose of using IT products as Business type 34 Figure 2.3 Purpose of using IT products as Business size 35 Figure 2.4 Purpose of using IT products as Business field 36 Figure 2.5.Purpose of using IT products as Market scope 37 Figure 2.6 Purpose of using IT products as Market life 38 Figure 2.8 SWOT analysis of Dell EMC 39 Figure 3.1 BCG matrix of Dell EMC 44 Figure 3.2 Risk analysis 48 vi INTRODUCTION Abstract This research, on the understanding of the importance of launching programs for new IT products in local market, is keen on comprehending demands of customers and marketing environment in the case of IT industry with the use of IT products within the Vietnam context The level of exploiting IT products for information management including security and backup is thought to be low by which the space for IT providers is abundant In the specific case of Dell EMC Vietnam – the giant in backup and security IT product industry, the research gets the client-based information, marketing environment of Vietnam and potential of Dell EMC in launching new IT products to Vietnam market to propose empirical tactics in projecting marketing mix plan The paper attempts to comprehend components of marketing plan including marketing environment through PESTEL, Five forces, competition analysis Marketing mix of 7Ps are mentioned as the core premise to formulate the conceptual framework including marketing offerings and efforts With the analysis of giving empirical observation and subjective meanings in project marketing mix plan, the paper is started with firstly the desk-based research through secondary data to develop the academic framework; secondly the small-scale survey with the participation of 30 enterprises in Vietnam market as the empirical client-based information; and lastly after having the picture of marketing environment, the author with her experiences and discussions with IT managers to dig deep in each cause for meaningful recommendations In the current context of Vietnam, the generalization in launching new IT products should be focused on small and medium private and foreign-owned enterprises who have market scope of national-wide or with import/export/international dealing activities Manufacturing and commercial, trading are two pointed focuses Although the focus is not mainly involved the market life, the preference is on new businesses with short-life market According to research findings, recommendations for projecting marketing mix plan along with the mentioning of risk analysis is proposed with the expectations of giving tactics for the successful launching of new IT products in the Vietnam market Research background IT product and service management is attached the prominence in business environment of today (Wan and Liang, 2012) Majority of companies is relying on computers and information technology systems to boost up the efficiency in operating their business activities through the accurate and secure information management It brings up the role of IT product service providers in harmonizing IT services and business (Bon, Picper and Veen, 2005) In the information-driven world, when applying systems or using IT products to exploit the power of information, the ultimate security and right methods of management and backup are raised as the top concern Vietnam is in the developing phase where the application of IT and information management functions within enterprises is still poor Most of Vietnamese companies, although have realized the increasing importance of IT application in value creation chain, the investment and implementation are lax due to the lacking of specialized knowledge or incomplete realization of IT product availability According to the Vietnam E-commerce report 2013 (Ministry of Industry and Trade), there has been approximately 18% enterprises embedding ERP (Enterprises Resources Planning) software or 21% ones using SCM (Supply Chain Management) software in business administration Regarding to security measures, solutions applied have not been intense with measures of firewall (87%), anti-virus (84%) or hardware (45%) Another point to contemplate is that majority of Vietnam enterprises Payment methods Discount/ Promotion Extraction 1.000 557 1.000 898 Method: Principal Component Analysis Total Variance Explained Extraction Initial Eigenvalues % Compone Sums Squared Loadings of Cumul % Varianc ative of Varianc Cumulati nt Total e % 2.268 75.594 75.594 2.268 75.594 603 20.105 95.699 129 4.301 Total e 100.00 Extraction Method: Principal Component Analysis Marketing offerings – Service provided KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Sphericity Test of of Approx .729 Chi- 121.30 Square df 10 Sig .000 69 ve % 75.594 Communalities Extracti Initial on 1.000 838 concern to specific cases of 1.000 653 Convenience of service shows sincere provided Company clients Strong commitment from 1.000 670 responsiveness from company 1.000 624 company towards clients The prompt and swift towards clients Profession capabilities and behavior of employees toward 1.000 851 clients Extraction Method: Principal Component Analysis Total Variance Explained Extraction Initial Eigenvalues Compone % Sums of Squared Loadings of Cumulative % of Cumulativ nt Total Variance % Total Variance e% 3.637 72.740 72.740 3.637 72.740 72.740 703 14.052 86.792 460 9.194 95.985 137 2.735 98.720 70 064 1.280 100.000 Extraction Method: Principal Component Analysis Marketing efforts – Promotion KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test Sphericity of Approx Chi- Square 558 41.684 df Sig .000 Communalities Extracti Articles about companies Recommendation from acquaintances Information from advertisement channels Extraction Method: Initial on 1.000 899 1.000 577 1.000 746 Principal Component Analysis Total Variance Explained Compone nt Extraction Initial Eigenvalues Sums Squared Loadings 71 of % of % Varianc Cumulat of Varianc Cumulat Total e ive % Total e ive % 2.222 74.062 74.062 2.222 74.062 74.062 622 20.739 94.801 156 5.199 100.000 Extraction Method: Principal Component Analysis Marketing efforts – Employee service KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test Sphericity of Approx Chi- Square 645 72.747 df Sig .000 Communalities Extracti Employee presentation and professionalism Constructive advices, suggestions from employees Customer-friendly employees Initial on 1.000 380 1.000 754 1.000 753 72 Employees are expert at handling complaints Extraction Method: 1.000 Principal 928 Component Analysis Total Variance Explained Extraction Initial Eigenvalues % Compone Sums of Squared Loadings of Varianc Cumula % of Cumula nt Total e tive % Total Variance tive % 2.815 70.371 70.371 2.815 70.371 793 19.834 90.205 289 7.218 97.423 103 2.577 100.000 Extraction Method: Principal Component Analysis Marketing efforts – Branding/Corporate image KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy Bartlett's Test Sphericity of Approx Chi- Square 558 40.162 df Sig .000 Communalities 73 70.371 Extracti Initial on 1.000 830 Nationality of the company 1.000 373 Company reputation 1.000 885 Size and experiences of the company Extraction Method: Principal Component Analysis Total Variance Explained Extraction Initial Eigenvalues % Compone Sums of Squared Loadings of Varianc Cumula % nt Total e tive % Total 2.088 69.612 69.612 2.088 69.612 770 25.660 95.272 142 4.728 100.000 Variance ive % Extraction Method: Principal Component Analysis 74 of Cumulat 69.612 Appendix 5: Descriptive analysis Interested in using IT products and information management services Frequen Vali Yes d Plan to use Total Valid Cumulative cy Percent Percent Percent 15 50.0 50.0 50.0 15 50.0 50.0 100.0 30 100.0 100.0 Purposes of using IT products and information management services Cumulati Freque Perce Valid ve ncy nt Percent Percent 30.0 30.0 30.0 management 16.7 16.7 46.7 6.7 6.7 53.3 30.0 30.0 83.3 16.7 16.7 100.0 30 100.0 100.0 Vali smooth out business activities d in general produce timely and promptly reports for purposes manage large amount of information in and out mainly serving for customer service activities capture the new management trend in the world Total 75 Business type * Purposes of using IT products and information management services Crosstabulation Purposes of using IT products and information management services produce timely and Busi Privat Count ness e type % mainly manage serving capture smooth promptly large out reports for the new amount custom manage business for of activities manage informat service trend in in ment ion general purposes and out es world al 17 er ment in activiti the within Business 29.4% 11.8% 5.9% 35.3% 17.6% 16.7% 6.7% 3.3% 20.0% 10.0% 0 33.3% 0.0% 0.0% 33.3% 33.3% 3.3% 0.0% 0.0% 3.3% 3.3% 3 type % of Total State- Count owne % d within Business type % of Total Forei Count 76 Tot 100 0% 56 7% 100 0% 10 0% 10 gn- % within owne Business d 30.0% 10.0% 20.0% 10.0% 10.0% 10.0% 3.3% 6.7% 3.3% 9 30.0% 16.7% 6.7% 30.0% 16.7% 30.0% 16.7% 6.7% 30.0% 16.7% type % of Total Total 30.0% Count % 3% 30 type % of Total 0% 33 within Business 100 100 0% 100 0% Business size * Purposes of using IT products and information management services Crosstabulation Purposes of using IT products and information management services produce timely smooth and out Busi < 10 Count mainly manage serving capture promptly large for the new busines reports amount custom manage s of for er ment activiti manage informa service trend in es tion in ment in activiti the Tota general purposes and out es world l 77 1 ness employe % size es within Business 37.5% 25.0% 12.5% 12.5% 12.5% 10.0% 6.7% 3.3% 3.3% 3.3% 4 40.0% 0.0% 0.0% 40.0% 20.0% 13.3% 0.0% 0.0% 13.3% 6.7% 40.0% 20.0% 0.0% 20.0% 20.0% 6.7% 3.3% 0.0% 3.3% 3.3% 2 0.0% 40.0% 0.0% 40.0% 20.0% 0.0% 6.7% 0.0% 6.7% 3.3% 0 1 size % of Total 11-50 Count employe % es within Business size % of Total 51-250 Count employe % es 1 within Business size % of Total 251-500 Count employe % es within Business size % of Total >500 Count 78 100 0% 26.7 % 10 100 0% 33.3 % 100 0% 16.7 % 100 0% 16.7 % employe % es within Business 0.0% 0.0% 50.0% 50.0% 0.0% 0.0% 0.0% 3.3% 3.3% 0.0% 9 30.0% 16.7% 6.7% 30.0% 16.7% 30.0% 16.7% 6.7% 30.0% 16.7% size % of Total Total Count % size % of Total 0% 6.7 % 30 within Business 100 100 0% 100 0% Business field * Purposes of using IT products and information management services Crosstabulation Purposes of using IT products and information management services produce manag timely smooth and out Bus Manufact Count e large mainly amou serving promptly nt of for busines reports infor s matio er for activiti manage n es and in ment capture custom the new managem in service ent trend activiti in the general purposes out es world Total 10 79 ines uring % within s Business fiel field d % of Total Investme Count nt % 10.0% 20.0% 10.0% 40.0% 20.0% 3.3% 6.7% 3.3% 13.3% 6.7% 0 40.0% 0.0% 0.0% 40.0% 20.0% 6.7% 0.0% 0.0% 6.7% 3.3% 1 within Business field % of Total Commerc Count ial/Tradin % g within Business 42.9% 14.3% 14.3% 28.6% 0.0% 10.0% 3.3% 3.3% 6.7% 0.0% 0 50.0% 50.0% 0.0% 0.0% 0.0% 6.7% 6.7% 0.0% 0.0% 0.0% 0 field % of Total Distributi Count on % within Business field % of Total Service Count 80 100.0 % 33.3 % 100.0 % 16.7 % 100.0 % 23.3 % 100.0 % 13.3 % % within Business 25.0% 0.0% 0.0% 25.0% 50.0% 3.3% 0.0% 0.0% 3.3% 6.7% 9 30.0% 16.7% 6.7% 30.0% 16.7% 30.0% 16.7% 6.7% 30.0% 16.7% 100.0 % field % of Total Total Count % 13.3 % 30 within Business 100.0 % field % of Total 100.0 % Market scope * Purposes of using IT products and information management services Crosstabulation Purposes of using IT products and information management services mainl produce y timely servin smooth and out manag g promptly e large custo busines reports amount mer s of for Mar Within Count in ent the new manage servic ment activiti managem inform e es for capture trend in ation in activit the Tota general purposes and out ies world l 81 0 ket the city % within scop Market e scope % of Total Nation Count al-wide % 75.0% 25.0% 0.0% 0.0% 0.0% 10.0% 3.3% 0.0% 0.0% 0.0% 2 1 within Market 20.0% 10.0% 20.0% 40.0% 10.0% 6.7% 3.3% 6.7% 13.3% 3.3% 25.0% 18.8% 0.0% 31.3% 25.0% 13.3% 10.0% 0.0% 16.7% 13.3% 9 30.0% 16.7% 6.7% 30.0% 16.7% 30.0% 16.7% 6.7% 30.0% 16.7% scope % of Total Interna Count tional % within Market scope % of Total Total Count % 5 within Market scope % of Total 100 0% 13.3 % 10 100 0% 33.3 % 16 100 0% 53.3 % 30 100 0% 100 0% Market life * Purposes of using IT products and information management services Crosstabulation Purposes of using IT products and information management services Total 82 produce timely and smooth promptly out reports business for activities managem in ent general purposes 1 Mar < Count ket year % within 50.0% life Market life % of Total 3.3% 1-3 Count years % within 37.5% Market life % of Total 10.0% 3-5 Count years % within 27.3% Market life % of Total 10.0% 5-10 Count years % within 14.3% Market life % of Total 3.3% > 10 Count years % within 50.0% Market life % of Total 3.3% Total Count % within 30.0% Market life % of Total 30.0% manage large amount of informa tion in and out mainly serving for custome r service activitie s capture the new managem ent trend in the world 50.0% 0.0% 0.0% 0.0% 100.0% 3.3% 0.0% 0.0% 0.0% 6.7% 0.0% 12.5% 25.0% 25.0% 100.0% 0.0% 3.3% 6.7% 6.7% 26.7% 11 18.2% 9.1% 27.3% 18.2% 100.0% 6.7% 3.3% 10.0% 6.7% 36.7% 28.6% 0.0% 57.1% 0.0% 100.0% 6.7% 0.0% 13.3% 0.0% 23.3% 0.0% 0.0% 0.0% 50.0% 100.0% 0.0% 0.0% 0.0% 3.3% 6.7% 30 16.7% 6.7% 30.0% 16.7% 100.0% 16.7% 6.7% 30.0% 16.7% 100.0% 83 ... for new IT products to Vietnam market Case study of Dell EMC Chapter – Proposal some solution to implement strategy of developing new IT products for Dell EMC Conclusion CHAPTER FUNDAMENTAL THEORY... the Vietnam market Case study of Dell EMC Research aim and objectives The research paper to study possible methods to develop new IT products in Vietnam market; and the case that what Dell EMC. .. environment in the case of IT industry with the use of IT products within the Vietnam context The level of exploiting IT products for information management including security and backup is thought to be