– Group No LUẬN VĂN THẠC SĨ Phân tích hoạt động kinh doanh thẻ giai đoain 2006-2009 xây dựng chiến lược kinh doanh thẻ giai đoạn 2010-2015 ngân hàng BIDV THESIS TITLE TOPIC: The analysis of card business operations during the 2006 – 2009 period at Bank for Investment and Development of Vietnam (BIDV) and establishment of card business strategy for the 2010 – 2015 period Strategic Management – Group No CONTENTS Page List of tables and index INTRODUCTION CHAPTER I: RATIONALE 10 1.1 Overview of card and card business at Commercial Banks 10 1.1.1 Overview of Card 10 1.1.2 Card classification 10 1.1.3 Card business at commercial banks 13 1.2 Business strategy 14 1.2.1 Concepts 14 1.2.2 Process of business strategy establishment 14 1.2.2.1 Vision of missions and values 14 1.2.2.2 Analysis of business environment Macro-environment 15 Industry environment (the M Porter competitive force model) 15 1.2.2.3 Analysis of internal environment Determination of core internal factors Performance of internal estimation 15 15 16 1.2.2.4 SWOT analysis 16 1.2.3 Selected business strategies 18 1.2.4 Organization of business strategies performance (the functional strategy execution) 18 1.2.5 Estimation of business strategies 18 CHAPTER II: ANALYZING THE REAL SITUATION OF CARD BUSINESS ACTIVITIES IN BIDV IN THE PERIOD Strategic Management – Group No BETWEEN 2006 - 2009 20 2.1 About Bank for Investment and Development of Vietnam (BIDV) 20 2.2 The retail banking operation at BIDV 23 2.3 The real situation of card business operations at BIDV 25 2.3.1 Card business activities in Vietnam market 2.3.1.1 Result of card business activities in Vietnam market 2.3.1.2 The main characteristics of the card market Vietnam 2.3.1.3 25 25 for the period 2006-2008 27 Limitations of market card in Vietnam 28 2.3.2 Analysis of card business activities in BIDV in the period between 2006-2009 29 Results from card business activities 29 2.3.2.2 Analyse the situation of the payment network 36 2.3.2.1 Assessment of card product development 41 2.3.2.4 Analysis of technology to support card business 42 2.3.2.5 Analysis of card risk management 43 2.3.2.3 2.3.2.6 Analysis of management, organizational models and human resources 44 2.3.2.7 Analysis of the status of Marketing 46 CHAPTER III: COMPETITIVE STRATEGIES ESTABLISHMENT FOR CARD BUSINESS OF BIDV FOR THE 2010 – 2015 PERIOD 3.1 51 Vision and missions of Bank for Investment and Development of Vietnam 51 3.1.1 General vision and mission 51 3.1.2 Vision for Retail banking operation 51 3.2 Establishing some objectives and visions for BIDV’s card Strategic Management – Group No business operations until 2015 52 3.3 Establishment of card business strategy 54 3.3.1 Analysis of macro-environment 55 3.3.1.1 Economic environment 55 3.3.1.2 Technological environment 55 3.3.1.3 Demographic environment 55 3.3.1.4 Socio-cultural environment 56 3.3.1.5 Governmental, legal and political environment 58 3.3.1.6 Global environment 58 3.3.2 Industry environment 59 3.3.2.1 Current competitors 59 3.3.2.2 Potential competitors 61 3.3.2.3 Suppliers 62 3.3.2.4 Customers 62 3.3.2.5 Alternative products 63 3.3.3 Analysis of internal environment, difinition of strengths and weaknesses 63 3.3.3.1 Strengths 63 3.3.3.2 Weaknesses 64 3.3.4 SWOT matrix for building business cards activities 3.3.4.1 Summary of external business environment analysis 65 65 3.3.4.2 Synthesis estimates opportunity's impact with respect to enterprise 3.3.4.3 66 Synthesis estimates threat's impact with respect to enterprise 66 3.3.4.4 Integrated analysis environment internally 67 3.3.4.5 The SWOT matrix 67 3.3.4.6 The EFE Matrix 69 3.3.4.7 The IFE matrix 70 Strategic Management – Group No 3.3.4.8 The I-E matrix 70 3.4 Selection of business strategies 71 3.5 Organization of business strategies performance 72 3.5.1 The human resource solutions 72 3.5.2 The financial solutions 74 3.5.3 The administration solutions 75 3.5.4 The technology solutions 75 3.5.5 The risk management solutions 76 3.5.6 The Marketing solutions 77 3.5.6.1 Solutions of products 77 3.5.6.2 Solution for development of card acceptance network 80 3.5.6.3 Solution of distribution channels 81 3.5.6.4 Solution of commercial promotion or communication 82 3.6 Estimation of business strategies 82 CONCLUSION 83 REFERENCE 84 List of tables Strategic Management – Group No Table 2.1: Some performance results of BIDV as of 30/11/2009 Table 2.2: Results of the retail banking activities during the 2006-9/2009 period Table 2.3: Data of trading card market of Vietnam from 2006- June/2009 Table 2.4: Data of trading card activities in BIDV in the period between 2006- first months of 2009 Table 2.5: Number of debit cards according to area Table 2.6: Number of POS according to area Table 2.7: Number and exchange sales on ATM BIDV Table 2.8: Results on the ATM card payments Banknetvn BIDV Table 2.9: Results of Visa payment card on ATM BIDV Table 2.10: The effective performance of ATM network in the region Table 3.1: Objectives of core plans Table 3.2: Target for building business card period 2010-2015 Table 3.3: Summary of external business environment analysis Table 3.4: Synthesis estimates opportunity's impact with respect to enterprise Table 3.5: Synthesis estimates threat's impact with respect to enterprise Table 3.6: Integrated analysis environment internally Table 3.8: The EFE Matrix Table 3.9: The IFE Matrix Table 3.10: The IE Matrix Table 3.11: Planning the implementation of technology solutions to 2010 Table 3.12: Plans of products until 2012 List of index Index 2.1: Organization chart Index 2.2: Number of Debit card BIDV between 2006- September/2009 Index 2.3: Number of debit card of BIDV in comparison with main competitors Index 2.4: Number of POS BIDV between 2007- September/2009 Index 2.5: Number of POS of BIDV compared to main competitors Strategic Management – Group No Index 2.6: The net fee of BIDV’s card service between 2006- the first months in 2009 Index 2.7: Number of ATM of BIDV in Vietnam market Index 2.8: The growth and number of sales transactions on the ATM BIDV period 2006 to 2009 (projected 2009) INTRODUCTION Strategic Management – Group No In recent years, many economic and politic events have marked the success of Vietnam’s economy In the integrating situation with many opportunities and challenges, banks has shown its importance in developing economy, especially in changing the market which is naturally considered as cash-based as in Vietnam Card service has become one of bank’s advantages and made up a noticeable proportion of banks’ service income Thus, from 2006-2009, there is an upward trend in the number of banks (including small commercial banks) which have joint card market in Vietnam In 2009, this number increased twice as much as that of 2006 This indicates that card service is getting more and more important in the development strategy of banks, especially when there are a lot of difficulties in improving traditional products Therefore, the competition between banks in card market is getting harsher Being one of the five largest commercial banks in Vietnam, Bank for Investment and Development of Vietnam (BIDV) has shown its leading role in many fields, products and bank services In addition to advantages of a wholesale bank, BIDV also realizes opportunities and potential to develop in retail banking including card service Making use of the advantages of the brand, BIDV has gradually approached customers of this service and with great effort and study to improve the quality of service, BIDV has formed its position in the leading units in trading card field Trading card also brings BIDV high income in the total income of the banks However, with the unstable situation of card market, BIDV also faces a lot of difficulties and challenges in competing with current and potential competitors in market To contribute to the more development in trading card of BIDV as well as increase the prestige and belief for customers when using card service, especially increase competitive capacity of BIDV in exploiting the market which has a lot of potential customers, the team has carried out the study: “The analysis of card business operations during the 2006 – 2009 period at Bank for Investment and Strategic Management – Group No Development of Vietnam (BIDV) and establishment of card business strategy for the 2010 – 2015 period” The aims of the study Generalization of basic arguments regarding the cards and card business, competitive strategy, business strategy and functional strategy Specifying the real situation of card business at BIDV during the 2006 -2009 period, analyzing the real situation and shortcomings in operation Establishing the card business strategy for the 2010 – 2015 period, analyzing the functional strategies with the aim of improving the card business performance at BIDV, in which the analysis of Marketing strategy shall be focused Object and range of the study: About the trading card activity in Bank for Investment and Development of Vietnam and some domestic commercial banks Methodology Basing on the dialectical materialism in cooperation with statistics, analysis and synthesize, compare data Struture of the study Apart from the introduction and conclusion, the structure of the study is divided into chapters: Chapter I: Rationale Chapter II: Analyzing the real situation of trading card activities in BIDV in the period between 2010-2015 Chapter III: The card business strategy establishment at BIDV for the 2010 -2015 period CHAPTER I: RATIONALE Strategic Management – Group No 1.1 Overview of card and card business at Commercial Banks 1.1.1 Overview of Card Responding to strong economic growth and more complex and diversified methods of goods exchange among different industries and different countries in the world, bank’s currency units therefore is developed accordingly to meet Customer’s demand of payment and depositing money Besides, the world is currently enjoying outstanding achievements of information technology Information technology has especially brought numerous advantages to banks in creating and improving their modes of payment It is undeniable that the creation and development of bank card has become one modern an convenient instrument nowadays In 1949 one businessman whose name is Frank Mc Namara has invented the first card called Dinners Club, which is the beginning of later card boom such as Amex (American Express) created in 1958, Bank American; Later in 1960 Visa card, or JCB in Japan in 1961, and Master Card in 1966 with name Master Charge have been issued by International Card Association through its members all over the world Although card has been in existence for a long time, functions and advantages of various types of card of different banks are not the same Therefore, one common definition of bank card is not concluded Overall, bank card could be understood as follows: “Bank card is one non-cash payment instrument issued by bank It is issued to customer to pay for goods or services provided, or to withdraw cash at automatic teller machines or agent banks within deposit account balance or credit limit agreed between card issuing bank and card holder Card invoice is bill of debt by card holder to Merchant.” 1.1.2 The classification of card 1.1.2.1 Based on card issuer The card issued by bank: the card is issued by bank to customers so that they can use their accounts or the accounts granted by bank for making payment or using banking services Strategic Management 10 – Group No Customers 0.08 0.24 1.00 2.52 Table 3.8: The EFE Matrix Note: Columns (2) to score from to 1, the higher the score the more important factor, column (3), the little reaction= 1, the medium reaction= 2, the above average reaction = and the strong reaction = 3.3.4.7 IFE matrix Internal environment Level importance for BIDV (1) Management, human Financial Marketing Technology support Risk Management (2) 0.15 0.25 0.30 0.20 0.10 1.00 Sort Important point (3) 4 (4) 0.45 1.00 0.30 0.40 0.40 2.55 Table 3.9: The IFE Matrix Note: Columns (2) to score from to 1, the higher the score the more important factor, column (3), the most important weakness = 1, Weaknesses = 2, strong = 3, the most important strong = 3.3.4.8 I-E matrix Internal environment IFE External environment EFE Strong Medium High Average 2.5 Strategic Management X 68 Weak – Group No Low Table 3.10: The IE Matrix 3.4 Analysis of business strategies selection Based on the above analyses, the team has summarized as follows: The analyzed BIDV position belonged to the yellow area of Internal-External Matrix (I–E matrix) This area showed that the selected improvement or the sustainable strategies application should be performed; thus, BIDV should select the business strategies group so-called S – T and W – O in the SWOT analysis matrix The particulars are represented as follows: To intensify the marketing-related works, to use the “Marketing mix” method for giving solutions of products, customer services, network development, distribution channels, and for choosing between commercial and traditional promotion solutions BIDV should promote BIDV as a bank to provide banking services leading retailers BIDV should speed up the deployment system technology core serving for business card to create a solid foundation to develop business cards in the near future To maintain the traditional customer rating and to expand the existing market share BIDV should take advantage of the strong partnerships with corporations, of large companies to deploy sell cross-product development and product card association and co-brand; take advantage of strengths funding for many large projects and national key to develop products of specific and proactive as payment card fees for roads, smart card without contacting… BIDV should continue to strengthen the power of network widely through the strategic development system ATM / POS according to the focus deploying open systems ATM / POS in the provincial cities, the areas key travel Strategic Management 69 – Group No To promote the development research, and to apply technologies to products, to invest in researching products with more outstanding features to introduce them in the market prior to competitors BIDV should build and develop a product portfolio card range, the policy cost price flexibility to meet the needs of vary customers but in each specific period, to determine the product focus, bringing revenues large to focus investment and development BIDV should concentrate more on the work of improving the quality of products and services as well as the customer care, defined here as the field creates a difference of BIDV compared to competitors in the market BIDV should further strengthen sales channels through its branches as branches of sales channels most important period 2009 -2012 Simultaneous need research to develop channels new sales as sales system agents, online sales on the Internet, Telemarketing 3.5 Solutions and organization of card business strategy performance for the 2010 – 2015 period 3.5.1 Organization and human resource models Solution of organizational models Period 1: The period 2009 - early 2010 At the head office: Central Committee of the card is Head Office, counsel assisting the Board of Directors and CEO of business cards; organizational direction, guidance and inspection, monitoring of Unit members in the business card To increase capacity, card center proposed finishing date functions and duties, the Division's Customer Care to improve the quality of care and customer support Branches: Identifying Branch is the main sales channels and make a career working the system, specifically: Additional functions and clarify the duties of the department in the branch (room science and technology in sale of all products, card services, room science and technology in cross-selling products, Office of services of science and technology in doing business) Strategic Management 70 – Group No For a particular branch, formed in 2001 specializing in office responsible for implementing the specific industry such as room service ATM management in Ba Dinh branch Period 2: The period from 2010 to 2011 The office: To continue to strengthen capacity, in the period 2010-2011, the Center may propose further proposed additional 02 rooms: Room Research and development; Establish southern room (directly under the center card) support development of business and industry done for the South Channel sales: Determine branch is to continue the main sales channels and make a working Adding the remote sales channels with the help of technology like sales over the phone (Contact Center), sales through the Internet (through the Card Center's website); Additional sales channels through dealers (including dealers personal and organizational) are centrally managed at the Card Center or at the branch Period 3: Period 2012-2015 Implementing the recommendations of the Strategic Consulting business cards, change card center business unit into an independent company or card When the organizational structure of the company card is expected to include the following rooms: o Business Development Office o Department of Research and Development o Professional Competence o Office Credit debt collection o Customer Care Department o Risk Management Office o Technical Office o Office of Development Strategic Management 71 – Group No o Unit card acceptance o Branch Southern Region Personnel and training At the head office Number and quality of staff: Additional staff for the Center to ensure the work card business card and operating system for the whole industry, the number of staff in 2012 to achieve the minimum 200 staff Staff structure, number and request information under the table job description Quality and Training: Up to 2012, 100% staff of the center card is trained in depth by the array of business and professional at the center of the card, ensuring staff meet the required quality and demanding of tasks, compete with the leading banks in Vietnam and foreign banks operating in Vietnam Branch Add enough staff relations individual customers make development on the basis of card services rebuild description, there are additional tasks specific to development services card; Each branch has at least one staff relations and personal customers a reason to Leaders individual customers are trained and specialized experts in the field cards Mechanisms force Define target business cards is an indicator of the business branch Develop mechanisms and dynamics of business cards Mechanism of reward business card affiliate Mechanism of reward sales staff in branches The program emulation card business in stages 3.5.2 Financial solutions On the advantages of financial potentials, BIDV should focus its investment sources on retail bank activities, analyzing revenues and costs in the card business operation for next years Policy support cost depreciation, maintenance ATM Policy allocate income, cost of business cards between Head Office and branches Strategic Management 72 – Group No Yearly, BIDV would put aside its partial wage funds (about 10%) for activities regarding to task, aiming at performing incentive expenditures for retail operations, including the card business operations Also, BIDV shall invest in areas in regard to the development research, and the new technology application 3.5.3 Solutions of business administration Improving the management of the executive management business card User management and strategic planning, operations and business cards by international practice, promote research and development of products and services based on the application card platform from modern technology for Project Master card payment link Continue the process of setting up structures and organizational models of business operations in the retail vertical sector, concentrating power operating on the Head Office, professional chemical sales organization in their branches 3.5.4 The technology solutions To establish application systems which are highly parameterized in conformity with the growth related to the number of customers, transactions and services as well To implement auto-modern electronic distribution channels quickly, and autotransaction points, aiming at providing convenience for customers on large scale that enables to increase service use demans as well as the number of customers Objectives: Applying the technology and tools to support and promote business card Research technologies and find new tools, applications in product development / card services, improving quality and developing diverse features of the product / service card According to the plan, in 2010 BIDV will deploy the system of individual chip card BIDV will simultaneously deploy new services such as billing charges for roads, connectivity card international organizations, Internet Banking / Mobile Banking Strategic Management 73 – Group No To build management systems and customer support to help BIDV platform can support customers better According to the plan and progress, in 2010, BIDV will have Call Center and the period 2010-2011 BIDV will deploy CRM and Contact Center systems This is the tool to manage customer information, thereby supporting the tools to analyze, build customer-oriented strategies and improve customer service Develop management information system (MIS) This is the system support the work of management of BIDV general and business cards in particular Applying standard security and new technology to prevent risks, improve safety and security for card transactions, the system card, merchant, ATM and POS 2009-2010 Core banking system upgrading and correction Project of management system for connection, issue 2009-2010 and payment via MasterCard Package of Purchase via Internet Banking and 2009-2010 Mobile Banking system 2009-2010 Project of high-power encoding machines equipment 2009-2010 Services development on ATM system 2009-2010 Merchant network development (POS) Project of ATM network expansion for the 20087 2009-2010 2009 period Project of 5000 wireless POS investment for 2009-2010 implementing for Mai Linh Corporation taxi system Investment of Contact Center and Customer Relationship Management (CRM) systems 2009-2012 establishment and implementation 10 Project of chip card personalization 2009-2010 11 Management Information System (MIS) Equipment 2009-2012 Risk Management System Equipment and 12 2009-2010 Development Table 3.11: Planning the implementation of technology solutions 3.5.5 The risk management solutions Strategic Management 74 – Group No Objectives: Improve the policies for risk management in business cards, to help prevent, detect and correct promptly the risks incurred Maintain the level of risk less or equal to the actual rate may be acceptable to ensure business efficiency Plan implementation: Improve the mechanism mode of professional writing cards, uniform system of writing dominant activity Guidelines promulgated extract and use up risk reserve fund professional card Develop policy options customers ( the card holder) to ensure selection good customer base, reduce credit risk Care policy, monitor cardholder, during service to support the prevention of fraud, forgery, as well as early signs of forgery, fraud by the cardholder Increase training to raise awareness about safety, security of payment card cardholder object, branches To build a system parameter control transactions and alert suspicious transactions in real time Since then, the card detect signs of fraud and coordinate cardholder, handle (key tags, card reissue, ) 3.5.6 Analysis of Marketing solutions 3.5.6.1 Solutions of products With purpose of: providing Customer with diversified card products/services, applying advanced card technology and continuously updating card product/services in order to satisfy every Customer’s requirement, BIDV are supposed to perform following solutions: Connect with international card association to expand card list such as MasterCard international card, JCB, Amex, Diner Club, etc Diversify card products and services: Develop new card products and services in order to satisfy market demand such as international card (debit and credit card), associated card products, services for traffic fee collection, etc Strategic Management 75 – Group No Develop new payment services on ATM, POS system such as settlement for electric, water bills, pre-paid payment, etc Develop new products and services suitable with Customer’s demands and market’s development at certain period Research advanced card technology to improve current card products and services, meet market’s requirements and mitigate potential risks after implementing new products Combine cross-selling program with other retail products (developing preferential and support policies for Customers) in order to increase operating performance and attract customer Speed up the progress of accepting domestic and international cards on BIDV’s POS system; settle cards of issue organizations such as MasterCard, JCB, Amex, Diner Club; research new services on POS such as selling pre-paid card, etc Plans of products 2009 2010 2011 2012 Card issue International card VISA Classic credit card x VISA Electron debit card MasterCard credit and debit cards acceptance and issue Corporate credit card Payments acceptance via cards: Amex, Dinner Club, JCB VISAWave and MasterCard Paypass cards Domestic card Debit card with new BIN code x Prepaid cards (Contact and Contactless chip cards) Types of integrated cards x Features and utilities development Internet-based payment for the debit card Road charges payment Program of cardholders and Merchants care x Expansion of bill payment services Expansion of prepaid services Table 3.12: Plans of products x x x x x x x x x x x x x x x x x x x x x x Categories and card transaction limits: BIDV need to research and provide market with all products of different types of Strategic Management 76 – Group No card and provide different limits for customers Current BIDV’s card products only target at students, public servants, businessmen, working class and high-income people Therefore, in the future BIDV should research on products for teen customers, housewives, retail distributors and same-favor groups, etc Regarding credit card products, in order to cover larger number of customer, BIDV should provide card products with different transaction limits and research to provide fiduciary credit card products with maximum lending limit of monthly salary Regarding customer service: BIDV should consider customer service as one important component of perfect product and provide more and more services when customers use BIDV’s card products Basic for customer services: Based on customer’s data, transaction record and customer’s spending behavior: Attract Customer: number of operating/non-operating card; Activated card: % of activated card within 30/60/90 days; Encourage to use card: number of transaction/card, spending amount/card (commodity purchasing revenue, cash advance revenue, foreign transaction revenue); number of card generating interest, interest revenue, etc Maintain card utilization: Ratio of closed card, ratio of renewed card, etc Rules of customer services: Customer support is oriented to different categories of customers (for debit card holder, credit card holder and Merchant), oriented to customer’s contributions to BIDV card business (transaction revenue) to maintain good service quality for ordinary customers and outstanding service quality for VIP customers Customer services: Satisfy customer’s information requirements 24/7/365 through Contact Center, Internet, etc Increase interaction and communication with Customer by different methods such as sending periodic messages, survey of service quality, etc Strategic Management 77 – Group No Periodically implement friendly customer service program, etc 3.5.6.2 Solution for development of card acceptance network Solution for development of card acceptance network on POS a Strategic solution: Re-positioning by finding one specific niche market using BIDV’s technology and strength to develop new methods of payment (such as traffic fee collection, household bill settlement, etc.); Re-defining target customers at different periods In short term, BIDV shouldn’t focus on competing with leading and following group, namely hotels, premier restaurants, shopping malls; but focus on restaurants, jewelry shops, beauty and health treatment services, tourism agencies, taxi, etc Develop wider network of card acceptance and closely control BIDV card holders, select potential areas such as big and/or tourism-oriented provinces as focal point Clearly identify competitive factors in order to create unique features on the basis of developing BIDV’s strengths such as long-term customers and comprehensive cooperation, customers of credit relation, focus on service quality and improve and create close relation with customers; b Support solutions Improve and maintain mechanism encouraging Branch’s staff, consider POS network development as benefits of each member at branch; Strengthen product research and development activities: speeding up progress of accepting domestic and international cards on BIDV’s POS; research new services on POS such as selling pre-paid card, etc Enhance support for merchants such as: providing hotline; free call; convenient transaction booklet; direct support at merchants when requesting reinstallation; regularly check and maintain equipment and provide new support instruments; Organize more marketing programs, especially internal communication, and ensure that all BIDV’s staffs understand service’s benefits and are willing to use card as payment instrument such as organizing annual competitive programs of service development; Strategic Management 78 – Group No Marketing and communicating on large scale: re-design toolkit at merchant to attract and persuade customer and post news, articles on mass media; regularly organize promotion programs, workshops for merchants and card holders; Instruct to organize professional programs of customer services to increase transaction revenue at merchants; Organize training and re-training programs for merchants, firstly at Hanoi and then expand to other focus areas; 3.5.6.3 Solutions of distribution channels Direct sales channels: BIDV’s branch and transaction office system: Currently, BIDV’s card products are mostly distributed through traditional distribution channels, including branches and BIDV’s transaction office Because BIDV has developed network of branches and transaction offices at all 63 provinces, this network is still the most important channel for BIDV’s card products In order to fully exploit this traditional channel, besides selling card products at desk, BIDV should encourage branches to organize one specialized group to sell Bank’s products, including card products This operation will increase sales revenue of traditional card products and credit card products which is unique and high-class retail banking product Developing encouraging mechanism for sales group will play a critical role in sales revenue Direct sales in group: BIDV will outsource or recruit one group specialized in directly selling card, credit card, POS products, etc This sales group will target suitable customers of each type of product Sales channel through agents Expanding agent network with BIDV’s partner such as: Phu Thai Group Joint Stock Company, Viettel’s agents, Taxi agents, VNPT, etc and developing suitable commission mechanism for these agents Sales through Internet and telephone: This distribution channel is exploited based on theory of direct Marketing, BIDV should develop this channel after completing a dedicated website which introduce BIDV’s card service products and have functions of registering card issuance and support online for customer 3.5.6.4 Solution of commercial promotion or communication Strategic Management 79 – Group No Build up specific communication plan and schedule in line with roadmap of product development and ensure consistency with general communication plan or BIDV brand name and retail banking activities Implement planned communication program and always ensure complete connection and repetitive continuity Select and apply suitable traditional methods for each type of card Periodically organize promotion programs with each product category Improve internal communication with bank’s staff to have loyal customers and reliable and effective communication channel 3.6 Estimation of business strategies Objectives establishment according to groups: Scope: total number of issued cards, total transaction turnovers, total transaction volumes, total of new ATM and POS machines installed Growth: The growth rate of issued new cards; the increase rate of transaction turnovers, transaction numbers, and new ATM and POS machines points installed Efficiency: The net revenue from card services BIDV will assign objectives according to each year for its branches and estimate its performance results to adjust its strategies and plans timely if necessary Then, BIDV will summarize its performance period (one year in operation) and work out its achievements review CONCLUSION Investment into card market is the critical and essential orientation and tendency which banks should implement to satisfy market’s requirements Over the past years commercial banks have gradually implemented and developed card business activities Besides undeniable advantages and benefits of card services for Customers, card operation also mobilize big amount of idle cash for banks, provide banks with short-term credit and reduce cash circulation in the economy Understanding the importance of card business operation which account for high ratio out of total service revenue; and in the current context of difficult traditional Strategic Management 80 – Group No product development; also thanks to advantages of one strong brand name; BIDV have approached this new type of business with spirit of learning and continuously improving product and service quality BIDV are gradually strengthening Bank’s position as one of five leading card operator Card business also brings BIDV a significant amount out of the whole bank’s revenue However, while card market fluctuates and develops strongly today, BIDV also have to face with many difficulties and challenges in competing with current and potential competitor on market Targeting to become one of three leading banks in card market period 2010-2015 in terms of market share and merchant network and diversified products and services; and leading certain market segmentation, BIDV have gradually made effort to achieve these objectives With expectation of further developing BIDV’s card business operation, and strengthening BIDV’s reputation as well as Customer’s confidence in using card services, especially increasing BIDV’s competitiveness to exploit potential customers in card market, our group has done this research on Card Business Strategy This topic is broad and by limited ability of analysis and evaluation, this report therefore may contain certain errors and shortcomings We expect to receive comments and feedbacks from Program and respectful teachers which will make this report become better TÀI LIỆU THAM KHẢO - Tài liệu môn Quản trị chiến lược, Quản trị Marketing chương trình đào tạo MBA đại học Griggs - Giáo trình Quản trị chiến lược trường Đại học Kinh Tế Quốc Dân - Báo cáo đánh giá hoạt động bán lẻ, hoạt động kinh doanh thẻ BIDV giai đoạn 2006 – 2009 - Báo cáo Hiệp hội thẻ ngân hàng Việt Nam năm 2006 – T6/2009 - http://vneconomy.vn - http://baocao.vn Strategic Management 81 – Group No - http://www.vnexpress.net - http://www.tuoitre.com.vn REFERENCE - Documents of Strategic Management, Marketing Management in MBA training program by Griggs University - Teaching Document: Strategies Management National Economics University - Evaluation report of retail banking and card business performance of BIDV period 2006-2009 - Report of Vietnam Bank Card Association year 2006 – June/2009 - http://vneconomy.vn - http://baocao.vn - http://www.vnexpress.net - http://www.tuoitre.com.vn Strategic Management 82 [...]... business operations Unit in mil In the period 2006 2007 2008 VND in mil 2.715 T6 -2009 T9 -2009 887 1.477 % Aver age perce nt durin g the Table 2.2: Results of the retail banking activities during the 2006- 9 /2009 period (Source: Report of Vietnam Bank Card Association year 2006 – June /2009) Business scope: In general, from the period 2006- 2008 to September 2009 the BIDV retail banking business operation gradually... 20 BIDV BIDV Leasing Leasing Company Company (I, (I, II) II) (BLC) (BLC) BIDV BIDV Insurance Insurance Company Company (BIC) (BIC) BIDV BIDV Securities Securities Company Company (BSC) (BSC) BIDV BIDV Asset Asset Management Management Company Company (BAMC) (BAMC) – Group No 4 LVB) Index 2.1: Organization chart Estimates of some core aspects according to the international standards: As of 30/11 /2009, ... the world Some performance results of BIDV as of 30/11 /2009 BIDV BIDV Tower Tower Joint-Venture Joint-Venture Company Company Unit: VND in 400 bill Items 2005 Banks 2006 2007 108 2008 Transaction 11 /2009 108 Branches/ Branches/ Transaction Banks Centers Centers Total assets 117.976 158.165 201.382 242.316 279.234 Owner’sBIDV equity 3.150 4.428 8.405 9.969 NA BIDV BIDV Information Information192.584 Total... card activities in BIDV in the period between 20062 009 2.3.2.1 Results from trading card activities Net fee (billion VND) 2006 570.908 NA NA 8 2007 1.074.212 NA 562 14 2008 1.510.675 49 968 16,5 T6 /2009 1.615.530 1.397 827 10,6 T9 /2009 1.726.853 3.180 919 18,1 Table 2.4: Data of trading card activities in BIDV in the period between 2006Year Debit Card Credit card POS first 6 months of 2009 (Source: Report... association of Vietnam 2006- June /2009) Trading card activities between 2006- 2008 of BIDV showing in main criteria have following results: Issueing activity Activity of issueing card (mainly Debit card) of the whole system Strategic Management 29 – Group No 4 Index 2.2: Number of Debit card BIDV between 2006- September /2009 (Source: Report of bank card association of Vietnam 2006- June /2009) The average... bill Index 2.6: The net fee of BIDV s card service from 2006 to the first 9 months in 2009 (Source: Report of bank card association of Vietnam 2006- June /2009) Growth rate in the net fee of BIDV s card service in 2006- 2008 had a decreasing tendency (in 2007 increased by 75%, but in 2008 just increased by 17.8%) In 2009, this rate is more optimistic In the first six months of 2009, it slightly increased... 2.4: The number of POS of BIDV from 2007 to September, 2009 (Source: Report of bank card association of Vietnam 2006- June /2009) Strategic Management 32 – Group No 4 BIDV has officially implemented the service of international payment by card via POS/EDC since August, 2007 This service has helped BIDV to develop new customers who are units accepting card, improve benefits for BIDV s card holders The... the situation of the payment network Index 2.7: The number of ATM of BIDV in Vietnam’s market (Source: Report of bank card association of Vietnam 2006- June /2009) In 2005, BIDV has the second large ATM network after VCB However, in 2006, BIDV fell to the fourth position after VBARD, VCB, East Asia Bank with 14.3% market share In 2007, BIDV increased to third position in terms of ATM network after VCB... Total outstanding loans 79.383 93.453 126.616 BIDV 154.176 Technology Technology Center Fund mobilization 85.747 106.496 138.233 166.291Center212.722 Administrative Administrative Units Units Profits before tax 296 650 2.103 2.142 4.669 BIDV BIDV Training Training Center Center Table 2.1: Some performance results of BIDV as of 30/11 /2009 (Source: - the BIDV annual report) Organization chart LAO-VIET... 72% compared to 2007, but in the first 6 months of 2009, the number of new POS decreases by 14.5% compared to 2009 The number of POS decreases in 2009 because in the beginning of the year, BIDV checked the POS network and closed POS which do not work effectively POS network of BIDV just holds a market share of 3.5% Developing rate of POS network of BIDV is much lower than that of main competitors such