First of all, I would like to say thank you from bottom of my heart to the Managing Board of Open University, Ho Chi Minh City and Solvay Business School, Belgium for cooperating and opening Master of Management syllabus. I myself have studies a lot from the systematic way of evaluation to realistic knowledge. The most important thing I learnt is enthusiasm, knowledge of Professors and true values of studying. Secondly, I would like to express the deep thanks to Vice Professor, Doctor who is very enthusiastic and devoted to help and to mentor me in researching and writing this thesis. In addition, I would like to thank Professor who has taught me Strategic Management course, cared and given me advices in writing this thesis. Next, I’d like to express my deep gratitude to my colleagues at who help me to complete this thesis. Finally, I’d like to wish Professor healthy and successful. I wish this cooperation is more and more fruitful and provides society with useful and true talents in order to help Viet Nam stronger and prosperous. Writer With the thesis named, “Some measures to improve the competitive capacity of S- Telecom in telecommunication industry”, the writer, Quach Van Hung has finished it with following successes: 1- The theory of competition, competitive capacity and competition model is introduced completely and creates the strong base for analysis and suggested measures in later chapters. 2- The analysis of S-Telecom operation is done comprehensively from general environment to industry environment by 5 competitive forces model. The writer has analyzed SWOT matrix, value chain of S-Telecom to find the competitive advantages and disadvantages in competition. 3- The system of measures is suggested matching with analyzed content. The proposed system of measures serves objectives and development plans of S- Telecom rather well. 4- This thesis is with high scientific content, measures are applicable and practical. In my opinion, this thesis is rated excellently. Page : General view about competition theory 1 1.1 Concept of competition and Competitive capability 1 1.1.1 The concept of competition 1 1.1.2 Competitive capability 1 1.1.3 Factors influencing competitive capability 2 1.2 Introducing Michael Porter Five Forces Model 3 1.2.1 New entrants 4 1.2.2 Rivalry 5 1.2.3 Customers 6 1.2.4 Suppliers 6 1.2.5 Substitutes 7 7 : Analysing the operations of S-Telecom in the telecommunication industry 8 2.1 – S-Telecom overview 8 2.1.1 Creation and development process of S-Telecom 8 2.1.1.1 History of establishment 8 2.1.1.2 Operation professions 9 2.1.1.3 Project objectives, scale and scope 9 2.1.1.4 CDMA technology introduction 10 2.1.2 Vision and Mission 12 2.1.3 Organizational structure of S-Telecom 13 2.1.3 Business Results of S-Telecom over past years 14 2.1.3.1 Subscriber development 14 2.1.3.2 Financial results 15 2.2 – Analysing the competitive environment of S-Telecom 20 2.2.1 General environment 20 2.2.1.1 Economic factors 20 2.2.1.2 Political and Legal factors 20 2.2.1.3 Social factors 22 2.2.1.4 Technological factors 23 2.2.1.5 Natural factors 23 2.2.2 Industry environment 23 2.2.2.1 Rivalry among competing companies 23 2.2.2.2 Customer 32 2.2.2.3 Suppliers 33 2.2.2.4 Subsitutes 34 2.2.3 SWOT analysis 35 2.3 – Analysing the value chains of S-Telecom 38 2.3.1 Primary activities 39 2.3.2 Support activities 40 42 : Measures to improve the competitive capability of S-Telecom 47 3.1 Proposing new vision and mission based on competitive analysis 47 3.2 Suggested measures based on the analysis of Company value chains 48 3.2.1 Structure and Operations 48 3.2.1.1 Change organization structure 48 3.2.1.2 Reeneering processes 50 3.2.1.3 Building customer focused culture 51 3.2.2 Marketing Strategy 52 3.2.2.1 Handsets and services 52 3.2.2.1.1 Diversifying handsets to have good and affordable ones 52 3.2.2.1.2 Widening network coverage and upgrading quality 53 3.2.2.1.3 Diversifying services and providing VAS based on CDMA 54 3.2.2.2 Pricing strategy 55 3.2.2.2.1 Renewing and updating price strategy 55 3.2.2.2.2 Designing attractive tariff aiming at low ARPU segment 56 3.2.2.2.3 Adjusting prepaid card duration 57 3.2.2.2.4 Discounting for customers using large volume 57 3.2.2.2.5 Adjusting price of VAS 58 3.2.2.3 Distribution channels 59 3.2.2.3.1 Expanding and upgrading distribution channels 59 3.2.2.3.2 Reenforcing and upgrading the quality of channels 60 3.2.2.4 Promotion activities 62 3.2.2.4.1 Building up the strong images in community 62 3.2.3 Human Resources Management 63 3.2.3.1 Building up proper recruitment and selection process 63 3.2.3.2 Training and retraining 65 3.2.3.3 Employee development 68 3.2.3.4 Building up remuneration policy 69 3.2.3.5 Improving the performance evaluation program 71 3.2.4 Customer Relationships Management 73 3.2.4.1 Building up the strong commitment 74 3.2.4.2 Identifying and treating customers differently 75 3.2.4.3 Improving processes and reducing transaction cost of customer 76 3.2.4.4 Building up communication channels 82 83 For a long time, Telecommunication was a monopoly industry which restricted competition and limited the choice of customer. Since 1995, the policy and [...]... Analysing and evaluating the capability of S- Telecom in the communication industry Suggesting some measures to improve the competitive capability of STelecom in this industry This thesis just focuses on improving the capability of S- Telecom and doesn’t have conditions to research and suggest common measures for all service providers In order to meet the above mentioned objectives, I used following... competitors Because an industry s firms are mutually dependent, actions taken by one company usually invite competitive responses The more intensive among competitors, the less price consumers have to pay and the less profit they get The most prominent factors that experience shows to affect the intensity of firm s rivalries Slow industry growth make firms battle to increase their market share by attracting... High switching costs for industry firms because of the effectiveness of suppliers’ products 1.2.5 Threat of substitute products Substitute products are goods or services from outside a given industry that perform similar or the same functions as a product that the industry produces In general, product substitutes present a strong threat to a firm when customers face few, if any, switching costs and... affects directly the company competitive capability It s the base of arguments to examine, identify, analyze and evaluate the competitive capability of S- Telecom in telecommunication industry As a result of analyzing, I will suggest some measures to improve the competitive capability of S- Telecom in such current situation 8 2.1.1 Creation and development process of S- Telecom 2.1.1.1 History of establishment... this signal is transmitted on the 1.25 MHz band CDMA allows managing the number of subscribers 5 to 20 times higher than GSM with faster speed of data transmission CDMA uses less battery and have long time of conversation Service radius of one BTS in CDMA technology is bigger than GSM; it means less operating costs because of less BTS and saving for both users and service providers but ensures the. .. competitor’ customers High fixed costs or high storage costs make companies try to maximize the use of their productive capability Doing so allows firm spread costs across a larger volume of output To then reduce inventories, individual companies typically cut their price of their product and offer rebates and other special discounts to customers These practices often intensify competition Numerous or... companies 14 This parallel mechanism causes a lot of difficulties in business, slower the decision making process to adapt to market demand timely and make employees confused who is the real boss 2.1.4 Business results of S- Telecom over past years 2.1.4.1 Subscriber development () Examine the subscriber development of company, we found that there is the decreasing in post paid tariff from 43.18% in 2003 to. .. for my thesis such as statistic, analyse, compare and social survey There are 3 main chapters in this thesis: Chapter 1: General view about competion theory Chapter 2: Analysing the competitive capability of S- Telecom in communication industry Chapter 3: Some suggested measures to improve the competitive capability of S- Telecom 1 1.1.1 The concept of competition The Vietnamese dictionary explains,” Competition... way for its survival and development is improving the competitive capability of company Because of the attractiveness of the subject and the current fierce competition, I chose the topic: as my master thesis Based on the competion theory, this topic focuses on some basic matters as follows: Analysing the environment and its factors influencing competition Analysing and evaluating opportunities and threat... competitive disadvantage even when they are able to enter Several kind of potentially significant entry barriers are: Economies of scale Product differentiation Capital requirements Switching costs Access to distribution channels Cost disadvantages independent of scales 5 Government policy Firms seeking to enter an industry also anticipate the reactions of firms in the industry 1.2.2 Intensity of rivalry . Analysing and evaluating the capability of S- Telecom in the communication industry. ϖ Suggesting some measures to improve the competitive capability of S- Telecom in this industry. This thesis. capability of S- Telecom in telecommunication industry. As a result of analyzing, I will suggest some measures to improve the competitive capability of S- Telecom in such current situation : Measures to improve the competitive capability of S- Telecom 47 3.1 Proposing new vision and mission based on competitive analysis 47 3.2 Suggested measures based on the analysis of Company