Fpt Strategy

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FPT Strategies
FPT was originally found in September 1988 as The Food and Processing Technology Company. After 22 years of operation, now it is the largest Information and Communication Technology (ICT) Corporation in Vietnam. This report will firstly analyze the major changes in external environment that will affect the corporate-level strategy, the need and expectations of stakeholders. Secondly, it will review FPT’s position in the market and evaluate strengths and weaknesses of chosen business strategies. . On the begin of April 2011, FPT was on the headline when it suddenly changed CEO. The new corporate-level strategy is set up to “Because of e-citizen”. This new strategy states that FPT will become a leader in network infrastructure development and IT services. The Internet has changed the world completely and the chances of Vietnam join the world. The essential needs of people will not change but the method to satisfy the needs will change by using Internet. FPT calls organizations and consumers who use internet as e-citizens. FPT has five core businesses with their own business-level strategies that related to the corporate-level strategy. FPT Information System focuses on software and hardware integration (ERP software, network implementation, client and server computers…). FPT Trading distributes mobile phones and ICT products of well-known brand name like Nokia, Acer, IBM, and Samsung…. FPT Telecom provides internet services including leased line, FTTx, online game, and internet related services. FPT Software outsources products for customer in Japan, US, Europe. FPT University provides computer science and business management training. The below PESTEL table analyze the external environment for both corporate-level and business-level strategies. Political

- Government support ICT industry and education development
- Politic is stable, no strike
- Limit number of Telecom company
- E-government is on the way to useEconomic
- GDP increasing rate 7% every year
- Inflation rate is high
- Interest Rate is high 15-20%

- 20 million people use internet
- hi-tek generation population
- Per capita income increase
- R&D is considered important
- cable line, high-speed internet
- complicate software and high tech devices is used popularly EnvironmentalLegal
- Limit of time to play game online(FPT Telecom will be affected) - Law of Internet limit many internet services, websites that can be accessed in Vietnam

There are some major changes in macro-environment. In term of Political, minister of Vietnam recently has issued a document state that Vietnam will become a strong nation in IT services exporting by 2020. Government keeps giving tax deduction for IT corps(less than 10% compare to other companies). The Hoa Lac IT Park in the North and Hitech Park the South are built to provide modern infrastructure for hi-tech companies. By moving headquarter to the Hi-tech Park, FPT Software will lower the all cost for more professional working environment. Furthermore, hi-tech park look like an e-city with everything online, all of its employees are the first e-citizen generation. In term of exporting software, FPT Software also set up the strategy to expand in the Japan IT market. It is very successful in profiting from the 2nd largest IT market, and importing the newest hi-tech internet software and devices. In term of social changes, the new generation of Vietnam (occupied 30% of population) grows up with computers and internet; they are ready to be online all the time. Young people like game online, banking online, paying online. FPT will make profit with Gaming companies, banks, and utilities providers. The costumers, in turn, become e-citizen. The legal changes in Internet service may cause a lot of trouble to FPT. Government limit the time of online game, some big websites like facebook.com is not allow to access in Vietnam(because of national security matters), or limit in...
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