Phân tích SWOT CÔNG TY VIỄN THÔNG VIETTEL

Selected enterprise: VIETTEL Telecom

1. Introduction about Viettel Telecom
1.1. History and development
Company: Viettel telecom
Address: Number 1 Giang Van Minh - Ha Noi
Year 1989: Electronics equipment company, former Viettel Military Telecom
was established.
Year 1995: Electronics Equipment Company was renamed to be Viettel
Military Telecom, trading name is Viettel, was officially affirmed to be the second
provider on telecommunications.
Year 2000: Viettel had the license to offer trial long distance phone service
using VoIP technology for Hanoi - Ho Chi Minh City journey under 178 brand
name and has successfully deployed. This event marked the first time in Vietnam,
besides Vietnam Post and Telecommunications Corporation, there had been one a
business enterprise providing telecommunications services so that customers have
another opportunity to choose service providers. This is also a breakthrough step
in

paving

the

way

for

new

and

dynamic

development

stage

of

Telecommunications Corporation and Viettel Telecom as well.
Year 2002: In order to expand its services types, Viettel officially opened to
provide Internet access services in Hanoi and Ho Chi Minh to become the first
Internet service provider in Vietnam using new NGN technology generation
which is able to best meet customer requirements.
1


Year 2003: Viettel has organized to launch fixed telephone services to the
market. Viettel also spread landline telephone services to all regions of the
country with higher and higher service quality.
Year 2004: Defining cell phone service is basic telecommunications services;
Viettel focused all resources to build networks and services. It was officially
opened on 15.10.2004 with the number 098. With the emergence of mobile phone
service under the number of 098 in the market, Viettel has once again created a
new breakthrough in the media and customers by reducing the prices of services,
improving the quality of customer care, creating healthy environment in Vietnam
mobile Telecom market.
Viettel was voted to 01 in 10 information technology and communications
events in 2004, following years continuously then, Viettel has been always

appreciated as the fastest growth subscriber in mobile network and the network
with the policy decisions, business strategies which are always interested,
welcomed and supported by customers.
Year 2005: Prime Minister Phan Van Khai signed a decision to establish
Military Telecom Corporation dated on 02/3/2005 and Ministry of Defense had
decision Defense on number 45/2005/BQP dated on 06/4/2005 on the
establishment of Military Telecom Corporation.
In the trend of integration and ambition to become a Telecommunications
Corporation, Viettel Telecom (subsidiary of Viettel Military Telecom Corporation)
was established to provide multi-service businesses in the telecommunications
sector.
1.2. Functions and Missions
*Functions

2


*Advising: Supporting Party Committee, Board of Directors of the Corporation
about effective business operations through telecommunication products and
services domestically and internationally.
* Management and implementation: Following General Director to command
management of operational activities and business telecommunications services:
Operate, exploit equipment networks, organize repairs and maintenance
periodically,

provide information; organize

business structure and network

across the country.

*Monitoring: Performing inspection, monitoring and supervision of business
activities towards given plans which have been approved by the

General

Director.
*Missions
- Managing the entire network infrastructure of telecommunications
products and telecommunications services across the country thoroughly.
- Operating, exploiting and using equipment, network efficiently and
effectively to serve production - business;
- Providing information and rescue troubleshoot in the whole network;
- Setting up organizational structure and implementing business activities
including the formulation of business strategy development, sales systems
implementation and management, settlement of complaints and other marketing
activities;
- Doing research and development
on technical telecommunications
Director
networks towards global development and customer requirements.
Deputy Director

1.3.Organizational structure
Sales
department

Marketing
Department

Technical

department

Accounting
department

3
Employees


1.4.Company products
Basic mobile services are currently provided by Viettel telecom:
- Paid packages:
+ Basic package : service pack is usually paid with a charge down
automatically when customer consumption rises to certain levels.
+ Family package: As a postpaid service packages for family groups,
friends, small businesses (<5 subscribers).
+ VPN package: business group (>10 subscribers)
- Prepaid packages:
+ Basic Card package: is a pre-paid package, but charge as paid package
+ Economy package: Customers who use Economy service do not pay
any subscription fee does.
+ Daily package: is prepaid service package subscribers.

4


+ Z60 package: Is a pre-paid package within limited duration which is
for customers who wish to hear and send message than calls.
+ Friend package: It is for customers who want to call a certain number
which has been registered in advance.

+ Bonnus package: It is for customers who call from 3.900d / day.
+ Speed package: When customers need to call a lot in a short duration, it
is suitable for tourists.
+ Tomato package: Unlimited credit limit => Using indefinitely until the
account does not have money;
+ Ciao package: Cost savings of 30% (~ 8,000 VND / month) when the
customers use the service pack value of 60 SMS, I-Muzik and GPRS;
2. SWOT analysis
2.1.Strengths
- Is a trading company on post and telecommunications equipment with
accumulation of a relatively large amount of own capital and stable financial
situation.
- Ability to easily raise capital thanks to company's reputation.
- Company provides good products and services quality.

Company

imported goods from reputable companies and always check goods quality and
sales staff always assist clients in consulting, installation, freight, repair and
maintenance when required.
- Many aspects as operator, cable ... in fact remains exclusive, no real
competition. However, in the near future these items will also be competing.

5


- At the same time its current staffs have high qualifications and extensive
experiences in business. Most of them are college graduates or specializing in
Telecommunications with high responsibility and enthusiasm for work.
- During the process of formation and development with many years of

experiences company has established itself a large and stable market with the
network of the postal provinces. Company has many relations with domestic and
foreign customers in the field of information devices supply, enabling company to
supply all kinds of products, meeting consumer demands. This is one of the
conditions to raise company prestige which other business units are not easy to
achieve.
- Company's customers are often organizations and units under the
Corporation so their ability to pay is ensured from the Corporation.
- In addition company is a member of the Corporation, have intimate
relationships with customers inside and outside so it should always be supported
in many aspects.
2.2- Weaknesses:
- Many items and parts of operations are not effective, losses incurred
which creates difficulty for the company when the environment is increasingly in
fierce competition. Competitors come after just focus on some products and give
better price thanks to expenses and costs savings.
- There existed many old, outdated items increasing management costs, repairs.
These items need to be resolved effectively.
- It has not focused on market segments, no focused investments. With low cost
and organization management has not been decentralized so it has not been to conduct
market segmentation and target market selection.

6


- It does not do market research actively or market research has not been
sufficient enough to respond to market changes and competition.
- There have not been enough skillful technical staffs working in posts and
telecommunications services sector especially, in order to adapt to new
circumstances company must continue to send their staffs to learn new knowledge

to meet the requirements of the new situation and the aspirations and
requirements of the Party. Company had about 250 staff members currently, but
now there are only about 170 staff members, number of workers engaged in the
business about the remaining 110 workers, protection, preservation and storage,
no professional business expertise. Besides, there are about 200 retired officers it
also creates difficulty for the firm.
- One difficulty is the lack of venture capital, although funded by
government budget, company is constantly raising loans to meet business
requirements.
- Company has a lot of storage for goods but due to war situation (for the
national stockpile) warehouses were located away from the center before, transport
current is currently very difficult. This is also a major obstacle for goods
preservation and maintenance.
2.3- Opportunities:
- Vietnam has a large market for telecommunications services development
such

as

telephones,

switchboards,

other

specialized

materials.

Global


telecommunications market is also growing very well with the appearance of
many major telecommunications carriers to create favorable conditions for
companies to expand business partner selections.

7


- Open integration trend creates favorable conditions for capital utilization,
technology and management experiences from other countries to help companies
in exporting goods to foreign markets.
- Other telecommunications services development such as Internet is an
opportunity for providing equipment and Telematics services.
- Is an enterprise operating in the market for a long time so company has
more opportunities to expand market.
- Country socio-economic situation is stable, company areas of working is
profittable so it is highly attractive to many investors
- Telecommunications industry is paid attention to develop by the State.
With the strategy of accelerated development of industry sectors, the market is
expanded, demands for materials and equipment under the Telecommunications
sector will increase. As a business unit directly under VNPT, import of
specialized post are company basic functions. This is a big advantage because it
got the early investment in the development of local industries, marketing plan is
more proactive. Sector and network speed development is increasing well , which
is a basic favorable condition for company growth. The more constructions are,
the more demand for equipment and supplies are.
- Currently, the Telecommunications sector is still regarded as monopoly, so
competition in the industry environment is not really severe, its competitors are just
a few in and outside the industry, furthermore they are still covered by the plan, the
development strategy of the company.

2.4- Threats:
- Currently, besides VNPT, there are also so many state-owned and private
enterprises participating in telecommunications services with ability to import
directly. In the coming time when Vietnam performs Vietnam - American
8


agreements, formally joining APTA, WTO, it is not only domestic firms that
participate in this industry but also foreign companies do. Hence, market is more
competitive, company will have to face more competitions.
- Currently, market in Hanoi and other large cities are mature, high-income
customers have installed, used their products so their needs will not increase.
Hence majority of potential customers in the target groups from low income
groups, company should develop appropriate business strategy.
- Threat of falling behind in technology, engineering.
- Posts and Telecommunications industry will change in the future, this is
just the opportunity but also a challenge.
- Company is operating with various state incentives, but legal system set
forth by the state has not been agreed, although Telecommunications Ordinance
has been recently enacted, but the decrees written lack details and inconsistencies
on the same issue creating many difficulties for company. Loopholes and
inconsistencies in legislation, in regulations prescribed by the state in import and
export activities, inconsistency between the provisions on taxation create
difficulties for the company. These problems need to be removed by the State to
create conditions for enterprises to grow fast.
- Opening border for economic exchanges have developed to create
favorable conditions for the private sector to import goods with large amount, tax
evasion, lower price for the product terminal leading a lot of difficulties for the
company.
3. Propose a marketing strategy

Problems and opportunities for next steps in marketing strategy.
Table: Using SWOT results to do analysis

9


SWOT matrix

1. Strengths

2. Weaknesses

1. Opportunities

S/O

W/O

2. Threats

S/T

W/O

*Strategy for S/O combination.
This is combination between internal strengths with opportunities in the
external environment in order to use strengths to exploit opportunities.
Company has large capital with financial stability and ability to raise
capital easily while Vietnam market is a potential market with 80 million people,
demands for Posts and Telecommunications materials is increasing so it requires

company to increase combat expansion strategy, dominate the market with rapid
commercialization ability.
Company provides good goods and service quality, among them are many
exclusive items, no real competition. Moreover posts and telecommunications
industry is growing very strongly, which creates

favorable conditions for

company to maintain its market shares and participate in the lucrative field.
* Strategy for S/T combination.
This is a combination of strengths with threats with the aim to use strengths
to overcome threats. We can conduct strategy as following:
Thanks to accumulation and owning a comparative large amount of capital and
stable financial ability, company set up stable and large market with a lot of relations
from domestic and abroad. Moreover, company has received a lot of supports and
counseling about variety of aspects. Company is facing threats from its domestic and
10


abroad competitors, market is becoming mature, potential target customers come from
low income groups. Therefore, company has to develop a flexible pricing strategy
together with commercial stimulations, customer’s services

At present company is in danger of lagging behind in technology, loss of
customers due to not satisfying growing demands, so company must use their
own capital with qualified staffs to do investment in key areas, anticipation,
learning advanced technology, to fully exploit existing technology and
continuous training of well-trained staffs.
* Strategy for W/O combination.
W/O combination is a combination of weaknesses within the enterprise

with external opportunities with the aim to overcome its weaknesses to exploit
opportunities or exploit opportunities to fill weaknesses.
Company has not had many technical staffs with qualified skills, especially
working in posts and telecommunications, integration trend creates opportunities
to open economy so company must appoint staffs for training to learn and
improve both technical knowledge and professional skills and management
practices to meet requirements of the new situation and trend.
Market research practices, customer segmentation is not done adequately,
activities to promote the goods consumption such as advertising, propaganda has
not been focused, especially in rural areas. Company should seize opportunities to
develop and expand Posts and Telecommunications to dominate the rural market,
attract more customers to low-income groups.
* Strategy for W/T combination.
For purpose of overcoming weaknesses and avoid threats we develop
strategy to combine internal weaknesses and threats.
11


Company should continue to maintain business operations in areas of
traditional markets while using policies into new potential market, develop
business strategy, pricing strategy which is appropriate to each segmentation,
customers. Company needs to implement marketing strategies, building
advertising services image not only in Vietnam but also abroad.

Hanoi, 21st March 2012
Student: Vu Hoang Anh

12