LV Thạc sỹ_Strategy formulation for Viet Vuong telecom strategic business unit of telecom service

SOLVAY-BRUSSELS SCHOOL OF ECONOMICS AND MANAGEMENT NATIONAL ECONOMICS UNIVERSITY Vietnam – Belgium Master Programs MASTERS IN BUSINESS MANAGEMENT FINAL PROJECT STRATEGY FORMULATION FOR VIET VUONG TELECOM’S STRATEGIC BUSINESS UNIT OF TELECOM SERVICE Supervisor: Dr Do Thi Hai Ha i TABLE OF CONTENTS I .INTRODUCTION II THEORETICAL FRAMEWORK 2.1 .STRATEGIC MANAGEMENT 2.2 SERVICE IN MARKETING LENS III .THE COMPANY’S STRATEGIC POSITION 3.1 THE ENVIRONMENT ANALYSIS 3.1.1 .PESTEL analysis 3.1.2 Five Forces analysis 13 3.2 THE COMPETITORS AND MARKETS 17 3.2.1 .Competitors 17 3.2.2 Markets 20 3.3 STRATEGIC CAPABILITY ANALYSIS 22 3.3.1 .BCG Matrix 22 3.3.2 Value chain and value network 24 3.3.3 Core competences 26 ii 3.4 SWOT ANALYSIS 28 IV STRATEGY FORMULATION 31 4.1 .SBU OF TELECOM SERVICE’S VISION AND MISSION 31 4.2 STRATEGIC OBJECTIVES 32 4.3 STRATEGIC CHOICES 34 4.4 IMPLEMENTATION SOLUTIONS 35 V CONCLUSION 38 VI References 39 iii INDEX OF FIGURES FIGURE I-1: REVENUE BY BUSINESS LINE FIGURE I-2: VIET VUONG TELECOM'S ORGANIZATION STRUCTURE .3 FIGURE II-1: A MODEL OF THE ELEMENTS OF STRATEGIC MANAGEMENT .5 FIGURE III-1: FIVE FORCES FRAMEWORK 13 FIGURE III-2: TOP REASONS FOR OUTSOURCING 20 FIGURE III-3: WHY TELECOM OPERATORS CONSIDER TO OUTSOURCING 21 FIGURE III-4: THE BCG MATRIX 23 FIGURE III-5: GENERIC VALUE CHAIN BY M.PORTER .24 FIGURE III-6: RF ENGINEERING SERVICE VALUE CHAIN 25 FIGURE III-7: VVT IN ITS VALUE NETWORK .25 FIGURE III-8: TELECOM VENDORS AND OPERATORS' VALUE CHAIN 26 FIGURE III-9: TELECOM SERVICES MARKET SEGMENTATIONS 27 Figure IV-1: EFLAG OSS-based software solutions 36 iv INDEX OF TABLES TABLE I-1: REVENUE BY BUSINESS LINE TABLE III-1: CAPITAL REQUIREMENTS FOR TYPICAL FACILITIES 14 TABLE III-2: SUPPLIERS AND PRODUCTS 14 TABLE III-3: GROUPS OF CUSTOMERS 15 TABLE III-4: VIET VUONG TELECOM'S COMPETITORS .17 Table III-5: Radio Access Network Equipments - Key Operators .21 v vi Acknowledgements I would like to express my sincere gratitude to Professor Dr… for her valuable supervision and guidance Her detail and constructive comments greatly help me to complete the thesis I also would like to thank Viet Vuong Telecom’s Board of Management for their allowance of doing this thesis with their share of the company strategy My great appreciation to contributions of Viet Vuong Telecom’s Department Managers for their share of knowledge, sincere ideas on company’s strategic SWOT My deepest thank to my parents and my wife for their supports Without their understanding and encouragement, I am unable to complete the program And all loves to my sons vii Executive Summary The purpose of this thesis is to formulate a competitive strategy for Viet Vuong Telecom – a Vietnam – based private join-stock company to compete within its business line of telecom service The central thrust is how to build and improve the company's competitive position for the business line The author uses PESTLE framework to study the external environment, finding out the opportunities that the Company can capture and threats that it needs to deal with The Five Forces Framework of M.E Porter is used to assess attractiveness on the basis of competition in the industry, to highlight areas in which the industry trends may pose opportunities and threats and to analyze where the company stands vis-à-vis the underlying causes of each competitive force The author devotes one part of the thesis for studying the competitors and the markets what are the opportunities as well as the threats that these forces may pose As a master of fact that all the local companies in the RF engineering are the private join-stock companies, approaching to their financial data is very difficult However, the Company’s management team is able to sense deeply who are the Company’s competitors, what are their core competences through many of the real biddings where it won and also lost as well as through official or unofficial meetings with high level managers of other companies (partners, customers and even competitors) in the industry The popular trend of outsourcing among telecom vendors and operators is also mentioned, this reflects very much the market trends that the business line engage in The value chain of delivering value to the customers shows that the employees working in direct interface towards the customers have the greatest possibilities to add value They are the main factor that decides whether the customers come back to buy the service or not Therefore the competence of those employees in respect of technical knowledge and their soft skills are the most fundamental The core competences of the Company are studied since successful competitive strategies usually involve building uniquely strong or distinctive competencies in one or several areas which are crucial to success and using them to maintain a competitive edge over rivals SWOT analysis is used to summarize all the opportunities and threats that the external environment, the competitors and the markets pose as well as the strengths and weaknesses that derive from the Company’s strategic capabilities viii Management team of Viet Vuong Telecom gives SBU of Telecom Service a lot of freedom to set its own sales and profit goals and strategies From the strategic meeting with all key managers of the company, the vision and mission are formulated To define its mission, Peter Drucker's classic questions are addressed: What is our business? Who is the customer? What is of value to the customer? What will our business be? What should our business be? Setting objectives flow from the mission and growth ambition of the Company They are set regarding of service scope, market scope, geographical scope, partners, revenue and profit These provide direction, allow synergy, aid in evaluation, establish priorities, reduce uncertainty, minimize conflicts, stimulate exertion, and aid in both the allocation of resources and the design of jobs Developing a strategic vision, setting objectives, and crafting a strategy are basic direction-setting tasks They map out the company's direction, its short-range and long-range performance targets, and the competitive moves and internal action approaches to be used in achieving the targeted business results In making strategic decisions, inputs from a variety of assessments in the early are used to develop a strategy that exploits business strengths and competitor weaknesses and neutralizes business weaknesses and competitor strength Due to the broad range of the strategic management, and the limitations of a thesis, the research is limited to strategic position and strategic choice only The very important topic - the strategy into actions that include the implementation plan, monitoring developments, evaluating performance and making corrective adjustments – is left for further study ix I Introduction Viet Vuong Telecom Trading and Service Join Stock Company was established in 2008 The founders are three telecom professionals and one professional investor who has been successful with several companies in mechanical industry and expected to expand the mechanical product’s market to telecom industry The initial idea of foundation is to operate in two business lines:  The business line of telecom service: providing telecom equipment installation, commissioning and maintenance service to telecom operators and vendors  The business line of trading: trading IT and telecom products, especially to perform sale activities supporting the other companies of the group – Viet Vuong Group – to sell their mechanical products to telecom vendors and operators After the first year of operation, by taking the advantages of its strengths and capturing opportunities, the Company focused more on the business line of trading and was very successful, especially in sales activities that brought millions USD contracts (between Viet Vuong Group and customers) of selling mechanical products (e.g., telecom towers and shelters) to telecom vendors and operators At the mean time, the business line of telecom service received less focus Table Introduction-1: Revenue by Business Line Business Line 2008 (VND) 2009 (VND) 2010 (VND) 2011 (VND) Trading 9,521,177,542 32,966,514,425 30,959,501,235 43,354,587,245 Service 155,383,803 934,090,909 3,019,334,680 11,259,811,207 Source: Viet Vuong Telecom’s Financial Reports Y2008 – Y2011 Figure The Company’s strategic position-9: RF Engineering Service Value Chain The Service Value Chain is the progression of a service opportunity from beginning to end Small improvements at each step can translate to significant improvement in sales and revenue In effect, VVT can grow without any change in service demand All it needs to is to make the most of opportunities it already has The Service Value Chain closes the loop with the customer Once the service work is completed, all service provider expect to build an ongoing relationship with the customer in order to get repeat business and referrals When everything is done right, the reward is a satisfied customer that purchases the service again The process repeats itself and the BU grows When it’s not done right, fewer and fewer opportunities come, and the process slowly grinds to a halt, as does the business Value Network Figure The Company’s strategic position-10: VVT in its Value Network In order to provide the service, VVT need to purchase the products or services from the suppliers e.g., software: Atoll from Forsk, Actix from Actix Company… and services: car renting service for Drive Test… and in some special projects VVT need to bought the consultancy service from consultant company as Networker PLC 26 As a service provider, VVT provide the RF engineering service (Radio Network Design and Optimization) – only one of many telecom services including: Integration and Commissioning service, Field Services, Energy Management, Network Operation and Maintenance… that the end customer – Telecom Operators have to undertake to render the mobile services When provide service to Telecom Vendors, VVT acts as the subcontractor of them and Telecom Operators are its indirect customers VVT also provide service directly to operators – when the network deployment becomes mature, this market segment becomes very potential Source: Lucent Technologies’ White Paper, Leveraging Managed Services for Network Operations Business Success Figure The Company’s strategic position-11: Telecom Vendors and Operators' Value Chain 3.3.3 Core competences VVT’s SBU of Telecom Service decides to choose RF engineering service (Radio Network Planning and Optimization) – one of six main segments of 27 telecom service market including: network design and optimization, network deployment, network operations and maintenance, infrastructure management, energy management and professional services - as its core business Telecom services Figure The Company’s strategic position-12: Telecom services market segmentations Examples of activities performed under this segment are as following:        Benchmarking services IBS design and planning Network optimization Norminal cell planning Radio Frequency or Line of Sight survey Radio Network Design and Planning Site Auditing Core competences are the skills and abilities by which resources are deployed through an organization’s activities and processes such as to achieve competitive advantage in ways that others cannot imitate or obtain In our opinions, the core competence depends on the conditions where the company competes with its competitors In the group of local companies, Viet Vuong Telecom’s core competences comes from team of local experts who have spent years of experience working in telecom vendors and operators environment The well defined process, their skills, their expertise are the core competences of the company that its 28 competitors are very difficult (expensive, lacking of collaboration models or need a long time to aware of) to imitate These all combinations allow Viet Vuong Telecom to offer the multi-vendor RF engineering service towards the customers that its competitors are very hard to offer with the same qualifications In the group of local companies, Viet Vuong Telecom’s successful deployed projects, such as ZTE-Vinaphone 3G project in Central Region, Nokia Siemens Networks - Mobifone 3G project in Central Region, Motorola - Vinaphone 3G project in Northern Region and Alcatel-Lucent/FIS – GtelMobile 2G project become a valuable project reference list that none of its competitors currently have and take them long time to get that record The reputation as well as appreciation from Vendors as its direct customers and Operators as the end customers also plays a very important role for Viet Vuong Telecom to easily build a closed business relationship with its customers However, in comparison to the group of international companies in the field, that core competences are blurred Those companies with long-stand in the market, powerful brand and strong financial base have many advantages over local ones However, thanks to the environment elements, due to lower income level of Vietnamese labor forces, lower prices of living conditions and flexible management system, Viet Vuong Telecom is able to offer the service at a very competitive price that the international companies are unable to offer Viet Vuong Telecom also recognized the innovative trend of international companies in the field is to invest in telecom engineering software development This combines with their supreme expertise in the engineering service gives them a very comparative advantages in compare to local companies The partnership agreement between EFLAG (an emerging company who is focusing on this trend and has its strategic capabilities to follow) and Viet Vuong Telecom allows Viet Vuong Telecom to jointly offer EFLAG’s high-impact mobile solutions and services across Vietnam, Laos and Cambodia by that strengthens its current core competences 3.4 SWOT Analysis 3.4.1 Strengths  The management team is of telecom professionals who spent years of experience working for Telecom Vendors as senior sale and technical personnel and experienced investor who are successful with several companies 29  VVT owns a technical and solution team of high-level experts who have spent years of experiences in Telecom Operators and Vendors Their experience, knowledge and know-how of well defined process to deliver the RF engineering service are indispensible assets that help VVT to deploy successfully projects  After only few years of operation, VVT’s SBU of Telecom Service established the business relationships with almost all vendors in Vietnam: Nokia Siemens Network, Ericsson, ZTE, Alcatel-Lucent and Huawei The projects that VVT deployed are appreciated by them as well as the end customers – the operators – in the project deployment performance: time and quality  The Telecom Trading Business still operates stably with sufficient positive cash flow This strengthens the financial base that helps the Service Business are confident to look for large scale – project  Insisting on RF engineering as the core service, VVT can maintain a tiny and flexible structure that helps it easily to cope with varying economic conditions 3.4.2 Weakness  The market segment of Telecom Operators is very potential However, VVT has not yet gotten any projects from this one, the business relationship is also not yet very much close  The innovative trend of international companies in the field is to invest in telecom engineering software development This combines with their supreme expertise in the engineering service gives them a very comparative advantages in compare to local companies  The sales force depends too much on the management team The medium level of sales force are not well established  Training programs to the junior engineers are not organized systematically 3.4.3 Opportunities  The Communist Party government committed to market-oriented reforms The one-party system is generally conducive to short-term political stability  The government recognizes the threat that corruption poses to its legitimacy, and has acted to clamp down on graft among party officials  When Telecom Operators focus more on network quality by spending more on OPEX, the market for RF engineering service will grow 30  The labor force in Vietnam market is large, skilled and low-cost; this allows the local companies to make use of this in competing with the international companies  On a national level, broadband penetration rates remain low – this means that the sector has considerable growth potential WiMAX and LTE services are currently being trialed with a view to licensing a number of 4G service providers in the near future;  Government approach to liberalization and privatization of the telecoms industry could see entrance of strategic investors such as NTT DoCoMo, SingTel and Telenor, increased investment revenues and the arrivals of new skilled 3.4.4 Threats  The slowdown in growth from 2009 to 2011, high inflation and the deficit in the national budget would make Telecom Operators hesitate to invest in building new network, maintaining the current network and improving network quality  The labor force even though is young and large in the quantity; the quality is not as expected: lack of knowledge, English and soft skills  Business relationships are very important in doing business and take time to develop  Law awareness of enterprise as well as of individuals is still limited; this might lead to many disadvantages in doing business  The emerging of Self Organized Network solutions that automate the network engineering task as the substitutive to network engineering service done manually  The increasing presence of multinational companies with strong financial base, high-level expertise and software development abilities in the local market 31 IV Strategy Formulation Management team of Viet Vuong Telecom gives SBU of Telecom Service a lot of freedom to set its own sales and profit goals and strategies Business level strategy is one of three aspects of corporate strategic management including: Corporate Level Strategy, Business Level Strategy and Operational Level Strategy Business Level Strategy focuses on how to compete successfully in the line of business that the Company has chosen to engage in The central thrust is how to build and improve the Company’s competitive position for the line of business Viet Vuong Telecom has competitive advantage whenever it can attract customers and defend against competitive forces better than its rivals Companies want to develop competitive advantages that have some sustainability (although the typical term "sustainable competitive advantage" is usually only true dynamically, as a firm works to continue it) Successful competitive strategies usually involve building uniquely strong or distinctive competencies in one or several areas crucial to success and using them to maintain a competitive edge over rivals 4.1 SBU of Telecom Service’s vision and mission Our vision is to become the leading RF engineering services and solutions provider in the region 32 We will earn this leadership position by:  Establish a close business relationships with Telecom Vendors and Operators as well as Enterprises  Deliver international standard RF engineering services and solutions at a fair price to our customers  Utilize our local resources of experienced, skilled and talented professionals  Collaborate with world – leading RF engineering software developers and equipment manufacturers 4.2 Strategic objectives Clearly established objectives provide direction, allow synergy, aid in evaluation, establish priorities, reduce uncertainty, minimize conflicts, stimulate exertion, and aid in both the allocation of resources and the design of jobs Items Current (2011) Y2012 - 2014 Y2012 Service Scope RF engineering services: RF engineering services and solutions: RF engineering services and solutions:  Benchmarking services  Radio network design  Radio network optimization  Benchmarking services  Radio network design  Radio network optimization  Total solutions (including software and solutions) for Radio network design and optimization  Maintain current service scope  Maintain current service scope  Maintain current service scope  Earn and deploy at least 01 (one) project of providing software (Actix/Smartwave/D igital maps) to customers 33  In-Building and  Earn and deploy at Urban zone coverage solutions, design and optimization Market Scope  Telecom Vendors  Telecom Vendors least 01 (one) project of providing IBS and Urban zone coverage equipments and solutions  Maintain and expand this segment  Telecom Operators  Telecom Operators  Maintain and expand this segment  Enterprises  Establish the business with at least enterprise customer Geographica l scope  Vietnam  Vietnam  Maintain the segment  Regional  Earn and deploy at least one project outside Vietnam Partner Software developers:  EFLAG    (exclusive distributor and partnership agreement) Actix Atoll RMSI IBS and Urban zone Equipment Manufacturers:  CommScope Revenue  11.2 billions VND  Keep and maintain  current partnership To become exclusive distributors  Keep and maintain  current partnership To become exclusive distributors  Keep and maintain  current partnership To become exclusive distributor of RMSI  Keep and maintain  current partnership To become exclusive distributor of CommScope  20 billion VND 34 Profit 4.3  15.45%  20% Strategic Choices “Competitive strategy is about being different It means deliberately choosing to perform activities differently or to perform different activities than rivals to deliver a unique mix of value” (Michael E Porter) The essence of strategy lies in creating tomorrow's competitive advantages faster than competitors mimic the ones you possess today (Gary Hamel & C K Prahalad) Viet Vuong Telecom’s competitors are divided into two groups: international companies and local companies, each group has its own characteristics Therefore, the chosen competitive strategy is designed for each group of competitors For the group of international competitors, Viet Vuong Telecom should apply the strategy of cost leadership Implementing this strategy successfully requires continual, exceptional efforts to reduce costs - without excluding product features and services that buyers consider essential It also requires achieving cost advantages in ways that are hard for competitors to copy or match As analyzed in the previous sections, international companies, when they get projects, they will proceed to mobilize the permanent employee or hire the freelancers to work for those projects The salary they have to pay for that ones are very high, normally 8-10 times of the local Vietnamese engineers They also have to cover cost for the administrative fee, project management team… all those costs are higher than a local company has to cover Viet Vuong Telecom owns a team of experienced local RF consultant who spent many years of working for many vendors and operators, and therefore owns a multi-vendor skill (one of the most important skills that are appreciated by customers) The project management team is also from vendor environment, they acquired well defined process of RF engineering These all together ensure that the Company can deploy successful projects at the much lower cost but the same or even better quality For the group of local competitors, Viet Vuong Telecom should apply the strategy of being “difference” In the group of local companies, Viet Vuong Telecom’s core competences comes from team of local experts who have spent years of experience working in telecom vendors and operators environment The 35 well defined process, their skills, their expertise are the core competences of the company that its competitors are very difficult (expensive, lacking of collaboration models or need a long time to aware of) to imitate These all combinations allow Viet Vuong Telecom to offer the multi-vendor RF engineering service towards the customers that its competitors are very hard to offer with the same qualifications Viet Vuong Telecom’s successful deployed projects, such as ZTE-Vinaphone 3G project in Central Region, Nokia Siemens Networks - Mobifone 3G project in Central Region, Motorola - Vinaphone 3G project in Northern Region and Alcatel-Lucent/FIS – GtelMobile 2G project become a valuable project reference list that none of its competitors currently have and take them long time to get that record Maintaining those deference’s are the crucial factors that help Viet Vuong Telecom maintain its competitive advantages over its local competitors However, the “difference” has a timing characteristic, since once a company creates a “difference”, its competitors sooner or later can imitate it Applying this strategy require the Company always track closely the trends of technology and cope with those changes by acquiring the strategically qualified personnel by hiring or training (better solution) Another choice is about cooperative strategy, as pointed out in the SWOT analysis, being a local company where the social conditions not equip the Company with the strategic capabilities of investing in R&D and software development While the innovative trend of international companies in the field is to invest in telecom engineering software development, especially the emerging of OSS-based optimization software solutions (as an initial step toward SON – Self Organized Network, that will automate RF engineering task) This combines with their supreme expertise in the engineering service gives them a very comparative advantages in compare to local companies This requires Viet Vuong Telecom to look for the strategic alliance with a company which has the strategic capabilities to follow that trend The partnership has two folds: Viet Vuong Telecom can obtain/share technology and need they can share access to local/regional market through Viet Vuong Telecom 4.4 Implementation Solutions To implement above strategy the following solutions are proposed:  Strengthen present core competences: Viet Vuong Telecom is the unique company in Vietnam who has established the business 36 relationships with almost all vendors including: Nokia Siemens Networks, Motorola, Ericsson, ZTE, Alcatel-Lucent Experiences and records from those projects earned and deployed successfully by Viet Vuong Telecom help it gain a competitive advantage over its local rivals  Establish a close business relationship with telecom operators: New network deployment in Vietnam market is going to slow down due to the deep penetration of mobile subscribers, the capital spent for new investment (CAPEX) will be shrunken and telecom operators will invest more on maintenance and improving the network quality (OPEX) This means the market segment of RF engineering service outsourced from telecom vendor will downsized, while that contracted from telecom operators will be larger This is very potential market that needs VVT more focuses  Become the distributor of telecom engineering software developers and establish the strategic partnerships: The innovative trend of international companies in the field is to invest in telecom engineering software development with such the market leaders as AirCom International and Optimi (acquired by Ericsson in 2010) This combines with their supreme expertise in the engineering service gives them a very comparative advantages in compare to local companies EFLAG is an emerging company who is focusing on this trend and has its strategic capabilities to follow Their software suite - SmartWave Mobility - is a market leading OSS-based software solution that revolutionizes the approach to 2G/3G radio network optimization Their expertise in RF engineering has been proven in tough telecom market as China Source: http://www.eflagcomm.com/en/solutions/radio-network-optimization/smartwave-mobility Figure Strategy Formulation-13: EFLAG OSS-based software solutions The partnership agreement between EFLAG and Viet Vuong Telecom allows Viet Vuong Telecom to jointly offer EFLAG’s high-impact mobile solutions and services across Vietnam, Laos and Cambodia through its 37 wealth of market knowledge and its well established regional presence  Utilize the resource of local RF consultants to maintain the price advantages over international RF engineering service providers whistle providing better quality of service: As the master of facts, international service provider as AirCom is very strong in the field However, in some projects, especially in small to medium scale projects, they depend too much on contracted RF consultants, and some (if not many) of them are not qualified This lead to poor project performance Viet Vuong Telecom owns a technical team of local RF consultants who spent many years working for telecom vendors and operators and earned experiences, skilled and know-how that can ensure the project performance in terms of cost and quality  Expand the market segment of enterprise customers by providing InBuilding Solutions and Urban Zone Coverage Solutions: In the economic situations of high inflation, national budget deficit and high interest rate, Telecom Operators – most of them are state-owned corporation – might be more hesitate to invest new large projects the market segment of enterprises become more potential A lot of high buildings and new urban zones, where the coverage of mobile services is very limited Those customers require strictly on special coverage solutions that not affect the urban zone’s general scenery Viet Vuong Telecom can utilize the partnership with CommScope – a leading company in providing IBS and Main/Remote coverage solutions (especially suitable for urban zone coverage) to expand to this potential market There some advantages by doing that: o The enterprise customers have lower bargaining power in comparison to such big corporations as Telecom Vendors and Operators o Expanding to this market is as a back-up solution in case of downsizing in other market segments This helps Viet Vuong Telecom maintain its current operations in terms of size, revenue and profits 38 V Conclusion Strategic management is an ongoing process to develop and revise futureoriented strategies that allow an organization to achieve its objectives, considering its capabilities, constraints, and the environment in which it operates In early 2010, Viet Vuong Telecom won the first frame contract of providing Radio Network Design and Optimization services to ZTE – one of telecom equipment vendors in the world - in Vinaphone 3G network project in Central Region After that milestone, with the reputation from the first project, the Company started to win more projects of providing RF engineering service to other telecom vendors such as: Ericsson in 2010, Motorola in late 2010 and Nokia Siemens Networks in early 2011 These altogether affirm that the chosen strategy of providing RF engineering service is on the right track However, during that chosen strategy implementation, the Company faced a lot of difficulties in breaking in the telecom operators market segment as well as the increasing competitions from international companies (UCE, GTL…) and local ones (Viet Hai, CTIN, COMIT…) The external environment placed much of pressure as reducing investment in new network deployment (CAPEX), technology’s high rate of change and high interest rate… There are opportunities also such as the rising operational expenditures (OPEX) in operating and maintaining the telecom network, the emerging of enterprise market as the customer of IBS and Urban Zone coverage solutions, and the beliefs of customers in the Company’s capabilities gained from the deployed projects… The strategy formulated for the Company’s Strategy Business Unit of Telecom service is not unchangeable Its developments need to be monitored, the performance need to be evaluated and by that making the corrective adjustments 39 VI References Business Monitor International, Vietnam Telecommunications Report Q1 2011, April 2011 Gerry Johnson, Kevan Scholes and Richard Whittington, EXPLORING CORPORATE STRATEGY, Prentice Hall, 8th Edition, 2008 James C Collins and Jerry I Porras, Building Your Company’s Vision, Harvard Business Review, October 1996 Lucent Technologies, Leveraging Managed Services for Network Operations Business Success, White Paper, 2004 Michael E Porter, The Five Competitive Forces That Shape Strategy, Harvard Business Review, January 2008 Philip Kotler and Kevin Lane Keller, MARKETING MANAGEMENT, Prentice Hall, 13th Edition, 2009 W Chan Kim and Renée Mauborgne, Blue Ocean Strategy, Harvard Business Review, October 2004 40 ... The purpose of this thesis is to formulate a competitive strategy for Viet Vuong Telecom – a Vietnam – based private join-stock company to compete within its business line of telecom service The... Management team of Viet Vuong Telecom gives SBU of Telecom Service a lot of freedom to set its own sales and profit goals and strategies From the strategic meeting with all key managers of the company,... strategic business unit of telecom service has a close relationship with the other one – the strategic business unit of trading The senior management can utilize the resources from both the units