Phân tích chiến lược kinh doanh cơng ty VMS Chapter 1: 1.1 1.2 1.3 Chapter 2: Chapter 3: 3.1 3.2 3.2.1 3.2.2 3.2.3 3.3 Chapter 4: ABOUT VMS COMPANY About company Organizational structure of the company The achievements CURRENT STRATEGY OF VMS ANALYZE COMPANY AND ENVIRONMENT Analyze Analyze enviroment External enviroment Industry enviroment Analyze competitor Analyze SWOT about competitive situation of the company THE PROPOSALS TO IMPLEMENT CHANGES IN 3 8 11 16 16 18 19 STRATEGY Conclusion References 20 21 INTRODUCTION In 2012, Telecommunications sector in Vietnam in general, mobile information services in particular have witnessed fierce competition between the top three networks in Vietnam: Vietel, Mobifone (VMS) and VinaPhone Most prominent in this competitive trend is powerful rise of mobile subscriber market, network providers continuously put in to service different strategies in order to attract customers, increase sales and profits ,occupy market share As a staff currently working in VMS-Mobifone, with the practical experiences in working process in the company as well as the knowledge that was imparted and collected in strategic management course - PGSM of Dr Prof THOMAS Jakobsen, I choose VMS company to research about strategy, analyze the external industry environment, company environment as well as analyzing and evaluating current rivals of Mobifone that are Vietel and VinaPhone , thereby, puting proposals to change strategies by myself Due to limited time and knowledge so not avoid deficiencies I would like to thank Dr Prof THOMAS Jakobsen - Specialization in Business Administration and Economics, University of Aarhus, Denmark who guidanced me and look forward to receiving comments and contributions from Professor and his colleagues to complete subject Chapter 1: ABOUT VMS COMPANY 1.1 About company Vietnam Mobile Telecom Services Company - VMS, a state-owend company under Vietnam Posts and Telecommunications Corporation, was founded in April 16th 1993, VMS has become the first GMS 900/1800 mobile telephony services provider in the brand name MobiFone, marking the beginning momentum of the mobile telephony industry in Vietnam MobiFone specializes in building, developing network and providing mobile telephony According to business perspective, products of MobiFone is to organize designing, developing network and providing new services on mobile information with advanced techniques and businessing GSM 900/1800, 3G UMTS technology mobile communication services nationwide - Official name: VIETNAM MOBILE TELECOMMUNICATIONS SERVICES COMPANY - International Trade name: VIETNAM MOBILE TELECOM SERVICES CO (VMS) - Headquarters: Mobifone Building, VP1, Yen Hoa Urban, Cau Giay District, Hanoi - Website: http://www.mobifone.com.vn - Logo and brand 1.2 Organizational structure of the company The organizational structure of the company now includes: - Chairman - Managing Director - 14 functions departments under the company  09 other departments include: 06 Mobile telecom services center having branches in areas:Hai Phong, Ha Noi,Da Nang,Ho Chi Minh city,Bien Hoa,Can Tho  Value added services center (VAS)  Billing and service support center  Design factory 1.3 The achievements Mobifone has gained a lot of achievements for 20 years from 1993-2012, especially the recent three-year period from 2009-2011: Award in 2011 - The title "Hero of Labour" awarded by the State - “The most favorite mobile telephony operator 2007” for ICT products voted by E-Chip Mobile Magazine on July,12th ,2011 Awards in 2010 - “The Best Quality Telecom Operator” Award in 2010 at VICTA Ceremony by Vietnam Ministry of Information and Communications - “The Most Favourite Operator 2010” voted by VietnamNet and E-chipMobile Magazine readers - “The Best Services and Customers Care Operator” voted by VietnamNet readers and EchipMobile Magazine - “The Most Favourite ICT Product 2010” for Mobile network voted by PC World Magazine Awards in 2009 - “The Most Favourite ICT Product 2009” voted by PC World – announced in June 2009 - “The most favorite mobile telephony operator 2009” voted by readers of VietnamNet newspaper E-Chip Mobile Magazine - Vietnam Mobile Awards; - The Best Customer Care Operator 2009 voted by VietnamNet and EchipMobile Magazine readers - The Best Customer Care Operator awarded in VietNam ICT Awards 2009 prize system by Vietnam Ministry of Information and Communications MobiFone claims " the most favorite trade name" (Source: http://ictnews.vn/home) Chapter 2: CURRENT STRATEGY OF VMS From the good results that achieved in the past 20 years (1993-2012), Mobifone will accelerate in all business activities to complete the business plan, first of 2013 is more than billion dollars, and achieve the goal by 2016 is billion dollars At the same time, will become the most powerful and reliable partner of the stakeholders in the telecommunications sector in Vietnam and the world, namely: - General business strategy of the Company :  Provide a full range of mobile communication services  Provide 3G and 4G  Promote the exploitation of value-added services for mobile phones - Vision, mission of the Company  Strategic Vision: To become the most powerful and reliable partner of the stakeholders in the telecommunications sector in Vietnam and all over the world  Business Mission: whenever and wherever All the most advanced telecom technology will be used for the needs of customers Always be innovative to bring new value-added services to customers All information is shared in a transparent manner Where to recommend and share the most reliable benefits of staff and employees, customers, shareholders and the community - Core Values of the Company Transparency Transparency is expressed from awareness to the actions of each individual in the company Transparency management, transparency liability, transparency interests Consensus Promote consensus and cohesion in a friendly and sharing working- environment to develop Mobifone become the most powerful and reliable partner of the stakeholders in the telecommunications sector in Vietnam andall over the world Prestige Proud of the superiority of a leading brand in the mobile communication sector in Vietnam Customers are interested in service and have many choices Both proximity and skill and spirit make up the differences that help Mobifone has a special position in customer Creativeness Not satisfied with what are having but always dreams to rise in learning, creativity, and innovation to satisfy increasing and constantly changing demands of market Responsibilities The development associated with social responsibility is tradition of MobiFone We commit to provide superior mobile communication products and services for society, share and take social responsibility because of a sustainable future Cultural norms of company: -  High quality service  Politeness and fun  Transparency and cooperation  Quick and accurateness  Dedication and creativity (Source of website: mobifone.com.vn) Chapter 3: ANALYZE COMPANY AND ENVIRONMENT 3.1 Analyse company 3.1.1 Operations results of VMS from 2010 to 2012 Revenue and profit before tax of VMS Unit: Billion VNĐ No Section 2010 2011 2012 Revenue 35,000 38,000 43,500 Profit before tax 5,900 6,260 6,570 (Source: Annual Report of Mobifone) Revenue increased from 5-10% per year Profit after tax increased by more than 5% per year 3.1.2 Market share Market share between network: Viettel, Mobifone and VinaPhone No Network 2010 2011 2012 Mobifone 36% 31% 29% VinaPhone 27.19% 23% 19,5% Viettel 33.82% 43% 48,5% (Source: Survey data of VMS) Comment: - Revenue and profits of Mobifone increase steadily over the years, but market share is declining sharply - Vietel: Revenue and profit growth, market share is increasing compared to Mobifone and Vinaphone - Vinaphone: Revenue, profit up slightly but the market share decline 3.1.3 Strengths Brands Mobifone is the first company ordering mobile telecom services in Vietnam, after 20 years of development, image of Mobifone has come into the hearts of the Vietnamese people as a strong, class,trustworthy brand name So in recent years in Vietnam, Mobifone has always been voted by the experts and guests: - Mobifone is the most popular network - The best customer care network - The best quality products and service mobile network - The best mobile network Market share In 2012 , proportion is 29% and ranked second after Viettel mobile network Human resources With more than 4,500 employees across the country, in which 83.2% have a university degree or higher and the average age is 32 years old, the labor force is considered young, dynamic, honest and always work hard for the survival and development of the company Corporation Culture Mobifone puts corporation culture with the goals, mission and vision in line with the company's strategy: - High quality service - Politeness and fun - Transparency and cooperation - Quick and accurateness - Dedication and creativity Corporation culture has infiltrated every employee, employee contact with customers, customer care staff to answering customers employee Every year, VMS performs auditing corporation culture and undertake for every customers of Mobifone Infrastructure Until December,31 st ,2012, Mobifone has set up huge facilities with over 20,000 BTS (2G) and 15,000 B button (3G) and the core network has been installed in 64/64 provinces.That meet the needs of 100 million subscribers by the end of 2013 In this and the next time, Mobifone continues to expand and improve radio wave coverage area across the country It takes Mobifone nearly billion dollars and 20 years to build the infrastructure to service business Could say this is strength and also a huge barrier for other mobile network has been establishing and competing lifetime with Mobifone for last years and the following years Distribution channels Distribution system of MobiFone is established on the basis of three main distribution channels including Mobifone stores, direct sales network and agency systems of Mobifone Products With more than 10 products and 50 services, products and services MobiFone are very diversified, specific for each type of customer, with specific service packages that are incentives , appropriate and meet the needs of customers: - Business: Mbusiness Package - The young: Mfriends, Qteen, Mobi4U - Family: Mhome, MobiZone - Students: Qstudent, Mobi4U Quality management system The company has developed and applied successfully the ISO 9001:2008 quality management system evaluated and released by TUV Nord Vietnam in 2008 3.1.3 Weaknesses Outsourcing technical infrastructure is more, less redundancy, unsafe for the network, especially in the backbone transmission network - As a member of VNPT, therefore, MobiFone encounter problems in the procedures relating to mechanisms such as: policies, scale and management Especially privatization - Although the current price of MobiFone is competitive compared to competitors, or even lower, but low-cost strategy for communication is not good, partly due to the influence of brand strategy As a result, the customer feel the cost still high Although there is a large network of distributors, retail system but not guarantee, depends on a large number of agents, intermediate increase costs 3.2 Analyze Environment 3.2.1 External environment Analyze elements according to model of Michael Porter Economics According to the General Statistics Office of Vietnam: The socio-economic situation of our country in 2012 continues to be affected by the instability of the world economy due to the financial crisis and the unresolved debt crisis in Europe Gross domestic product (GDP) in 2012 is estimated increased by 5.03% with 2011 according to 1994 compared prices Rate of growth this year is lower than 5.89 % rate of growth in 2011, but according to message of the Prime Minister of Vietnam in early 2013 is: " Be resolute to overcome weaknesses, to triumpth over difficulties, continue to control inflation, ensure growth, make country develope sustainably " Thus, keeping the steady growth of the domestic economy will help Mobifone continue to ensure the business development strategy in 2013 in Vietnam Demographics Estimating to 2012,Vietnam's population is about 91.52 million people (by https://www.cia.gov/libraly) According to the General Statistics Office of Vietnam, Vietnam has a high percentage of young population from 10-14 years accounting for 8.4%, 15-39 years accounted for 44.9% This trend will not change much in the period 2013 -2016 This is a dynamic youth force, main labor force in society and have income Thus, the younger age groups have the number tantamount 49 million people is still a potential target customers of Mobifone in the coming years Sociocultural Period 2011 - 2020 will be considered to achieve high speed in the field of industrialization and globalization in Vietnam Therefore will improve people's lives; labor force will increase and diverse in all sectors; increase productivity and work time etc Along with industrialization, globalization, the demand for using mobile phone communication will increase and so will the communication demands Technology With the strong growth of the information technology all over the world, especially mobile phones are continually released from the firms such as Aple, Nokia, Samsung, etc as well as terminal, laptop accessing broadband etc These equipments mostly using mobile networks with third-generation technology (3G), fourth one (4G) will grow strongly and replace the traditional mobile communication services (2G) In addition, with the improvement in technology in recent years, cheap equipment suitable for all income subject, therefor,the types of services basing on 3G and 4G that include voice and non-voice services will grow strongly This is an opportunity for Mobifone in developing markets, products and data services basing on 3G infrastructure, 4G, thereby, increasing market share and revenue, taking up market Global In recent years ,Vietnam has been actively integrating with the international scale through taking part in WTO, has been repeatedly calling upon and having many preferential policies of the government in investing FDI, expanding overseas investment so will bring both opportunities and challenges for the telecommunications sector in Vietnam in general and Mobifone in particular Communicational needs are projected to grow strongly, it is a chance for Mobifone to increase revenue and subscribers Political/legal situation Political and legal environment in Vietnam is considered to be stable and improve in line with the trend: Keep political stable; continue to reform administrative formalities to attract investment In the telecommunications sector,Ministry of information and Communications issues strict regulations on the management of the development of mobile network infrastructure, information of mobile phone users The above factors contribute to the stability so that Mobifone can implementate its strategy 3.2.2 Industry enviroment Analyze industry environment by five competitive forces model of Michael Porter as follows: The Five Forces of Competition Model (Michael Porter) Threat of new entrants The appearance of tvirtual network provider will be deemed to be a new competitor,however, the Ministry of Information and Communications will limit the license to extend this model.Furthermore, cooperation with the major network providers is still facing difficulties, as a result, this is not a threat to Mobifone Bargaining power of suppliers - Equipment and technology: depend on old infrastructure systems, have difficulties in replacing,, high cost - Material: Sim, card, and other goods for sale must be imported now from other countries and dependent on foreign technology Bargaining power of buyer - Suppliers: current sales policy through distribution channels, agents are very strong, so it can force companies in the field of policy to benefit ,but is not customers - Customers: Due to having many suppliers with similar quality products ,hence, customers easily select other vendors with low switching cost Threat of substitute products: - Currently, ADSL technology (Asymmetric Digital Subscriber Line) is often used to access the internet, it makes difficult for the company to develop products of mobile data bandwidth However, in line with trend of technology world, particularly the flexibility and mobility of 3G mobile networks, mobile broadband is expected to gradually replace ADSL, so the threat is not great; - WiMAX is a new technology that is expected to compete directly with 3G technology in the future Development trend of mobile post - 3G is public LTE technology (long-term evolution) It requires business propose plan approaching this technology to strengthen MobiFone has LTE trials license, however, experts predict that the time for LTE and WiMAX development is from 2015 onwards; - Wi-Fi (Wireless Network) service is in direct competition with a number of 3G mobile Internet services of MobiFone (Mobile Broadband), but under the current management policy, this service is not exploited, customers can use without charge Rivalry among competing firms 2012 was a year of competition, promotion and harsh sales race However, the trend of 2013 onwards will reduce sales promotion due to issued policy tightening the promotion and new prepaid subscribers development of the Ministry of Information and Communications Opportunities - The consumer trend of people increases when the economy grows Opportunities to develop services basing on 3G and 4G are high in developing economies 3G is the inevitable trend of the mobile communication industry - Vietnam is still a potential, dynamic market and always receives the new technology - Customers always have desirabilities to pay more for high quality services and are more interested in quality than price issues Challenge - High competitive pressure - Have foreign service providers - Depend on foreign technology and techniques while building and developing telecommunications networks and network - Wi-Fi network service management policies 3.2.3 Analyze competitor Currently, MobiFone, Vinaphone and Viettel are sharing the market and account for approximately 97% market share of mobile phone market in Vietnam It can be seen that the main rival of Mobifone is Viettel and Vinaphone We will analyze the outline of the business, the important data, and positioning strategies as well as market price of each main rival of Mobifone Viettel is telecommunications service provider fully integrated fixed broadband and international service with leading market mobile field Viettel has developed the fastest mobile network, it affects the competitiveness and growth of mobile phones in Vietnam Success of Viettel is based on competing and developing network quickly and perfectly Profile of Viettel Time Broadban Mobile d Landline phone Ability to provide Yes Yes International Services Yes Main signs - Provide services in 2004 - Account for 33.82% market share by the end of 2010 and the market share increased continuously during the years between 2011 and 2012 Strengths - Good optical transmission network - Wide and deep coverage on the whole territory of Vietnam - Have many incentive opportunities in the field of investment and network development Strategy and overview - Viettel is the second supplier in Vietnam providing fully integrated services in communications, such as VNPT - With the promotion, international relations, specific market segments, Viettel has accounted for a significant market share of all communications business, especially mobile phones Position in the market and prices - Viettel follow low-cost trend and often boot specific segment package , such as families or students packages - Viettel is considered to be network service provider with the cheapest prices and the widest coverage comparing to other competitors Weaknesses - Brand image is blurred in big cities - Excessive foreign investment leads to financial difficulties - Low tariff structure - Flexible sales policies and go into niche markets - Image of brand is famous in the rural market, low-income audience Opportunities - Nationwide coverage ensures considerable market share in the medium term - Granted permit for Wimax and G testing Challenge - Difficulty in connection making potential customers find substitute networks - The entry of new mobile networks resulting in price competition Vietnamese telecommunications company (VinaPhone) Vinaphone is the largest mobile network operator in Vietnam relating to subscription and coverage area and occupies the position of Viettel Vinaphone’s recent strategy has been focused on the areas of insurance, marketing, distribution channel expansion and building strong brands Prifile of Vinaphone Line of business Broadba Mobile Internati nd phone onal Landline Services Strategy and overview - As a subsidiary of VNPT, provide mobile network in the country with Vinaphone brand - Ability to provide No Yes Strategy in 2010 is to focus on coverage area and brand development Yes Prime time - Start to provide services in 1996, achieve advantages in use of available infrastructure of VNPT to expand nationwide coverage after one operation year By the end of 2002, reaching 1.1 million GPC, subscribers accounting for 60% of mobile phone market - By the end of 2010, accounting for 27.19% of market share Strengths - Nationwide coverage - Strong support from VNPT in the distribution network and infrastructure Price and position in market - Provide post-paid, prepaid services SMS and WAP - Provide a number of new services in 2007 including EasyTopUp and VnTopup allowing prepaid subscribers to recharge by a message Vinaphone introduced cost plan similar with MobiFone - Weaknesses Bulky mechanism, heavy procedures The staff is not really dynamic Opportunities - The coverage all over country ensure a significant market share in average period Threats - Strong competition - Open up the new mobile network as a result of competition 3.3 Analyze SWOT about competitive situation of company Strengths - One of the largest mobile service provider in Vietnam This is the first soldier in the mobile telecommunications service market in Vietnam Currently, MobiFone - has ranked second in Mobile network There is a strong brand (good image)in the mobile phone market There is extensive coverage network in Vietnam (20000 BTS, 15000 Node B on - 64/64 Town / City) Extensive international roaming services (nearly 100 countries) High technology, the latest network equipment to meet the needs of customers Abundant and high quality human resources weaknesses - Some packages, service deployment is relatively high and slow compared to - Viettel, Vinaphone MobiFone is under the influence of the government, the Ministry of Information Communications and VNPT Sometimes, Mobifone can not what they want - even though this decision can bring more benefits to customers Not broad and deep coverage of the whole territory in Vietnam Depend a lot on infrastructure providers such as leasing installation, transmission lines providers Opportunities - The demand of mobile services is increasing: when living standards increase and communication needs of people is much higher This is a good opportunity for - mobile services Economic integration: Mobifone cooperates with a number of mobile networks - in many countries to make international roaming services Phone users want more added -value but is not only call or send a message Challenge - Hard to compete: Currently, MobiFone has to deal with a lot of competition in the telecommunications industry A large number of competitors have good technological infrastructure, promotion policy and reasonable and quick customer care such as Vinaphone ,Vietel - Freight and promotion policy are coordinated by provisions of Ministry of Information and Communications - The procedure to extend the diversification of industries in companies and foreign investment Chapter 4: THE PROPOSALS TO IMPLEMENT CHANGES IN STRATEGY On the basis of analyzing company and corporation environment, analyzing business of rivals such as Viettel and Vinaphone, to ensure that sales and market share, Mobifone need to change a number of short and long-term strategies as follows: Restructure company in the direction of stock Aim to reduce the dominance of the Ministry of Information Communication Vietnam in the field of business and investing as well as developing network, attracting investment of the mobile network in the world such as AT & T, Vodafone, etc so that can increase strength, brand, share and learn from the success of those company Promote the expansion of brand and image With the growth and profitability over the years show that company has secured about finance Profit on equity in 2011 and 2012 is more than 49%, so in 2013 the company can cut down profits, increase costs on promoting expansion of brand and image by building or leasing the outlets in 64 provinces/ cities and districts corresponding to brand of Mobifone Expand sales channels Through retail, dealer channel, VNPT POST_ Members of VNPT go down to the village instead of the current direct sales force of Mobifone Diversify related industries Immediatly establish companies directly under Mobifone such as infrastructure companies, transmission companies etc in order to use capital well, increase sales, struggle monopoly of suppliers such as:transmission or leasing basis infrastructure Expand coverage across the country to ensure 100% of the territory in Viet Nam (including South China sea) have radio wave to develop business Promote to expand network investment abroad to potential countries having easy investment mechanism in Southeast Asia and Africa 7 Implement low-cost strategy for rural customer groups, low-income students and a differentiation strategy for the urban , VIP, high income clients CONCLUSION VMS is the first business providing mobile service In the past 20 years, Mobifone has reaped the many successes, prouded with the location: the best sales and profit mobile network However, rivals such as Vietel develops well thanks to the rational strategy in the field of business, investment and brand promotion ,therefore,in recent years Vietel always has lead the sales and profits and increase significant market share Therefore, Mobifone has consistently lost market share in the telecommunications market in Vietnam To keep market share from 2013 onwards ,simultaneously, develop company strongly with every passing day, Mobifone needs to adjust the strategy in areas such as: restructuring the company, promoting investment inland and international, changing strategies to make a difference by combinating low-cost and making differences strategy suiting market segment END REFERENCES RESOURCES - Strategic Management manual of Dr Prof THOMAS JAKOBSEN - Financial statements and annual reports of Mobifone in 2010, 2011, 2012 - The photos and some of the content is taken from the pages of the website:  http/www.mobifone.com.vn  https://www.cia.gov  http://www.gso.gov.vn  http://ictnews.vn/home ... communication products and services for society, share and take social responsibility because of a sustainable future Cultural norms of company: -  High quality service  Politeness and fun  Transparency... Prestige Proud of the superiority of a leading brand in the mobile communication sector in Vietnam Customers are interested in service and have many choices Both proximity and skill and spirit make... in learning, creativity, and innovation to satisfy increasing and constantly changing demands of market Responsibilities The development associated with social responsibility is tradition of MobiFone