Marketing Strategy of Beeline

Topics: Strategic management, Marketing, New product development Pages: 11 (3616 words) Published: January 5, 2013
Table of Contents
I.Possible alternative strategies for Beeline2
1.Identify possible strategies.2
2.Evaluate possible strategies.8
II.Strategic plan of the most appropriate strategies for Beeline12
1.Select the final strategies:12
2.Strategic plan12

Diagram 1. Space matrix of Beeline7

Table 1. Result of Space matrix6
Table 2. Strategies evaluation10
Table 3. Ranking and scoring11

Figure 1. BCG matrix3
Figure 2. Product life cycle3

GTEL Corporation and VimpelCom penetrated in Vietnamese telecommunication market in 8th July 2008 under the brand name Beeline VN to provide GSM/EDGE voice and data services to cover all Vietnam with over 86million people. Until now, Beeline wants to select more strategies in order to achieve their objective which is growing their market share to 30% like the three giants: Mobilephone, Vinaphone and Viettel. From the last study, IBD strategic counseling center have identified and analyzed Beeline’s strategy as well as the position of the company in Vietnamese market. Furthermore, some suggestions for improving were also given. This report, hence, will evaluate every possible strategy for Beeline in many aspects as well as propose a plan for the most appropriate future strategies. MAJOR FINDINGS

I. Possible alternative strategies for Beeline
1. Identify possible strategies.
According to the last study, Beeline’s position in the BCG matrix is question mark due to the high growth rate of the industry while the market share of Beeline is relatively low (only 4%). Moreover, in the product life cycle, Beeline has launched and introduced their services not for long. As a result, for three others stages in the product life cycle (growth, mature and decline), Beeline can implement most of the substantive growth, limited growth and retrenchment strategies. In order to identify those strategies, the most effective tool is Space matrix.

Figure 1. BCG matrix

Figure 2. Product life cycle
a. Environmental stability
By using the information from the external environment, we can identify as well as score the options in this factor. First of all, telecommunication market in Vietnam especially mobile network services has recently rocketed significantly. From the limited network until now, most of the places in Vietnam are coverage by applying many new technologies and liquidate the outdated one (GSM/EDGE, IP utilizing the NGN technology with frequency band of 1800MHz) so as Beeline will not be lagged behind by the three giants. Secondly, according to many economists, the inflation rate of Vietnam is still a double digit (14%) and it is considered as really high compared to other developing country (in 1 digit). Now, the Vietnamese government is using ceiling and floor price as well as tariffs to modulate the inflation rate back to one digit. Furthermore, at the beginning, Beeline launched the most extraordinary cheap services (Big zero) to market while other three giants’ price is much higher than Beeline. Therefore, the price range of Beeline with the average price of the industry is really high. Nevertheless, the last thing belongs to the environmental stability is barrier to entry into the market. From the political factor in the previous study, Vietnamese government is encouraging investments from oversea to increase the FDI (Foreign direct investment), so that the tariffs and policy are absolutely motivating every foreign business like Beeline. Moreover, telecommunication is the most vital service in the modern world and this is also an industry which gains the most attention from the politician. As a result, besides high initial investment, the barrier to entry of this industry can be scored 4. b. Financial strength

Financial strength is a strong point of Beeline. According to the annual report of...
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