WRITER: Ms. Delilah
Table of Contents
A. EXECUTIVE SUMMARY
There are two main parts in this report, which are Analysis and Recommendation for Viettel Telecom. Firstly, the report will tell basic information about Viettel Telecom with its market share, revenue and position in the market. After that, PESTLE will be used to analyze the external environment of the market which Viettel is in. Therefore, when we understand more understand more about Viettel situation, Porter’s Generic Strategy and Ansoff model will be applied for identifying exactly the existing cost-leadership marketing strategy of Viettel. Besides, Viettel value creation process model will be shown with facts, figures. Finally, to know about the strengths and weaknesses of Viettel marketing strategy, apart from evidences and figures found out, SWOT is also used in this Analysis task. In task 2-Recommendation, we will use SMART to create a new good goal for Viettel and then according to this goal, a new marketing strategy will be given out based on criteria of segmentation, targeting and positioning. The new approach to the market for Viettel will be mentioned in this part.
In the mobile phone network provider market of Vietnam today, Mobifone, Vinaphone and Viettel are the strongest providers. All of them are state-owned enterprises. However, Viettel is the only mobile phone network provider belonging to the Vietnamese army. Viettel Telecom is now at the top of mobile phone network providers in Vietnam. In 2013, their revenue is four times higher than VNPT, which is the mother company of Mobifone and Vinaphone (Thuy, 2013). Their market share is also highest at 44.05% in Vietnam (VTC News, 2013). Moreover, Viettel even is expanding their market into foreign countries such as Cambodia, Laos, Timor Leste (Oanh, 2013). In order to identify existing marketing strategy, its strengths and weaknesses, value creation process and then suggest a new marketing strategy, Viettel will be an interesting choice.
C. THE CONTENTS
I. The marketing strategy and its strengths, weaknesses and value creation process of Viettel:
In this task, PESTLE, Porter’s Generic Strategy, SWOT and the model of value creation process will be used to identify Viettel’s existing marketing strategy, value creation process and then evaluate the key strengths, weaknesses of Viettel marketing strategy. 1. PESTLE:
PESTLE containing five elements, which are Political, Economic, Social-cultural, Technology, Legal and Environmental.
The Politics of Vietnam is only One-party Communist state so the Vietnam policy is very stable. Vietnam became unified in 1975 after three decades of war (BBC News Asia, n.d). Therefore, Vietnam has a de-regulation trend. This will have a good effect on businesses because businessmen will not have to change the business system following Vietnam party too many times. In 2007, Vietnam officially joined WTO (World Trade Organization) (The Ministry of Finance, n.d.) that brought hopes to many people about a new changing economy. Overall, the effect of WTO on Vietnamese business has been being quite light because of the monopoly economic.
-(General Statistics Office, 2013)-
Taxation in Vietnam:
Vietnam has many types of taxation. There are some types of taxation, which Viettel Telecom must pay for the government when doing the business such as Value Added Tax, Corporate Income Tax. Each organization in Vietnam has to pay a big amount of taxation for the government. In 2013, Viettel was honored for being the second corporation paying the largest amount of Corporate Income Tax for the government (vietnamtop1000, 2013). It proves that Viettel is a big and strong network provider in Vietnam.
After joining WTO, Vietnamese economy could take many advantages of foreign investment, export market expanding but also many disadvantages such as being...
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