2011 │ADVANCED MBA PROGRAM – GAMBA.X0510 │ Group No.09CAPSTONE PROJECT REPORT
DEVELOPING THE BUSINESS STRATEGY FOR
VIETTEL MOBILE IN VIETNAM FOR THE
YEARS 2011-2015
Do Anh Minh
Nguyen Vinh Thu
Pham Thanh Cong
Truong Trung Nghia
Class: GaMBA.X0510
HA NOI - 2011
GRIGGS UNIVERSITY
GOLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION PROGRAM

1TABLE OF
CONTENTS
CONTENTS 2
LIST OF FIGURES 3
LIST OF TABLES 3
INTRODUCTION 4
CHAPTER I. THEORETICAL FOUNDATION OF STRAGIC MANAGEMENT. 6
Figure 1.1 Levels of strategic management 7
Figure 1.2 The process of strategic management 8
Figure 1.3 The PEST model (left) and Five Forces model (right) 11

Figure 2.3 Manpower of Viettel Group from 2005 to 2010 34
Figure 2.4 Market-share of mobile phone subscribers in Vietnam (12/2010) 37
Figure 3.1 Hierarchy of competition in Vietnam mobile market 61
Figure 3.2 Levels of competition in Vietnam mobile market 61
LIST OF TABLES
Table 2.1 Some data on Vietnam's economy in the recent 05 years (GSO) 20
Table 2.2 Viettel’s external factor evaluation matrix (EFE) 29
Table 2.3 CPM matrix compares the competition with a number of companies 29
Table 2.4 Some financial data of Viettel from 2005 to 2010 31
Table 2.5 Number of mobile phone subscribers in Vietnam (12/2010) 36
Table 2.6 Internal factor evaluation matrix of Viettel (IFE) 39
Table 3.1 Table of SWOT Matrix for Viettel Group 45
Table 3.2 QSPM Matrix for Viettel 51
3INTRODUCTION
1. Necessity
In Vietnam, after the conversion from the command economy to market
economy, the local enterprises faced many difficulties in strategic management.
Businesses need to research, develop a strategic tool to have enough flexibility to
respond to market changes. A business strategy must be formulated on the basis of
analysis and forecast opportunities, threats, strengths and weaknesses of the enterprise,
helping businesses obtain general information about the external and internal business
environment.
Viettel Group is one successful model of change to the market economy. From a
small company, facing many difficulties, unknown brand in the market, now Viettel is
one of the leading service providers in the Vietnamese telecommunication market and
expanding to neighboring countries. The brand positioning parts the crucial part in this
achievement of Viettel.

5. Outline
The main contents of the analysis and strategic planning for Viettel Telecom
Group in the period of 2011 to 2015 are presented in three chapters as the following:
- Chapter I. The theoretical foundation of strategic management
- Chapter II. Analysis of business activities of Viettel Group.
- Chapter III. Strategy selection and implementation solutions.
5CHAPTER I. THEORETICAL FOUNDATION OF STRAGIC MANAGEMENT
1.1. Concept and role of strategic management.
1.1.1. Concept.
In the early stages of the development of strategic management theory, people
have seen the strategic long term plan, are an integral part of the planning system of the
organization and thus just press strong strategic planning function. Although there are
many authors and researchers presented different ways of strategic management,
strategic management but is now both a scientific definition, and is an art and science
of planning, organization implementation and evaluation strategies.
Therefore, during the development, the concept of strategic management has
been expanded greatly. At the first phase, strategic decisions are made once for a long
period of time and it is the job of senior executives. However, the process of strategic
management is made regularly and continuously and requires the participation of all
members of the organization.
1.1.2. The role of strategic management
In the current business environment, there are opportunities and threats.
Strategic management helps us to identify opportunities and threats. The perception of
desired results and goals in the future can help managers and employees to understand
what needs to be done to achieve success. This will encourage both the above groups to
achieve short-term achievements, in order to better improve the long term welfare of
the business.

a series of sequential activities from strategic planning, strategy implementation and
evaluation strategy (Figure 1.2).
Figure 1.2 The process of strategic management
1.2.1. Strategy Planning
Strategic Planning is the process of identifying tasks and business objectives in
order to discover the internal strengths - weakness, external opportunities - threats to
choose an optimal strategy instead. Developing strategies includes the design and
selection of appropriate strategy for the organization. In order to do this, it should be
External
Environment
Strategic Intent
Strategic Mission
Internal
Environment
Strategy Implementation
Business
Level
Strategy
Competitive
Dynamics
Corporate
Level
Strategy
Acquisition
&
Restructure
Internation.
Strategy
Corporative
Strategies

consistent, logical and clear.
1.2.1.2. Analysis of external environment
The second part of the strategy is to analyze the operating environment outside
the organization. The goal of the analysis is the awareness of opportunities from which
the business environment should capture, at the same time as the threats from the
environment also provides, that can cause challenges for the company that it needs to
avoid.
1.2.1.3. Analysis of internal environment
This analysis is to find the internal strengths and weaknesses of the
organization. The organization attempts to pursue strategies to take advantage of the
strengths and improve weaknesses.
91.2.1.4. Choosing the optimal strategy
This was the stage to select strategies which associate with the strengths,
weaknesses, opportunities and threats identified by the company. A comparison of the
four factors is commonly known as SWOT analysis. The purpose of SWOT analysis is
to identify strategies that direction, creating a fit or mismatch between the resources
and capabilities of the company with the needs of the environment in which companies
operate.
Planning stage is an important stage that is meant to decide the entire strategic
management process. It requires the strategy to combine intuitive judgments with
systematic analysis of data in making plans and choose the alternative strategy.
1.2.2. Strategy Implementation
This was the action phase of strategic management. To implement the selected
strategy, the business should have specific plan for the organization, staffing and
appropriate funding for the mobilization and maximum use of all resources inside and
outside the organization, creating synergy and synchronization towards agreed goals.
1.2.3. Strategy Assessment

in Vietnam market. Some aspects of competition will be analyzed basing on the theory
of D’Avenil’s 7S framework that is a key approach, can also be used widespread in the
telecommunication industry and can be applied direct in a hypercompetitive markets.
Thus, this theory is designed to enable companies sustain the momentum of their
competitiveness through a series of initiatives that are poised to give temporary
advantages rather than structuring the company to achieve internal/external fit aimed at
maintaining equilibrium that are designed to sustain unsustainable competitive
advantages. The mentioned factors include: (i) Stakeholder satisfaction; (ii) Strategic
soothsaying; (iii) Positioning for speed; (iv) Positioning for surprise; (v) Shifting the
rule of the game; (vi) Signaling the strategic intent; and (vii) Simultaneous and
sequential strategic thrust.
STAGE 1: THE INPUT STAGE
External Factor
Evaluation (EFE)
Matrix
Competitive Profile Matrix
(CPM)
Internal Factor
Evaluation (IFE)
Matrix
STAGE 2: THE MATCHING STAGE
Strengths - Weaknesses - Opportunities - Threats (SWOT) Matrix
STAGE 3: THE DECISION STAGE
Quantitative Strategic Planning Matrix (QSPM)
12Competitive profile matrix is used to compare the company with competitors bases
on factors that can affect the competitiveness of the companies within the industry.
This matrix helps administrators to identify their major competitors together with their

charter.
• Head office: No1, Giang Van Minh St., Ba Dinh Dist., Hanoi.
• Phone: 84.04. 6255.6789, Fax: 84.04. 6299.6789
• Email: , Website: www.viettel.com.vn
Scope of business of Viettel Group includes: Supply of telecommunications
services; Telecommunications, Transmission; Post Office; Terminal distribution;
Finance investment; Media; Real Estate Investment; Export and Import, and Foreign
Investment The membership units of the group include:
• Viettel Import Export and Trading Company
• Viettel Telecom Company
• Viettel Construction Joint Stock Company
• Viettel Network Company
• Viettel International Investment Joint Stock Company
• Viettel Estate Investment & Trading Company
• Viettel Design Consultant Company
• Viettel Post Company
• Viettel New Services Development Company
• Viettel Technology Company
14• IDC Company
• Viettel Football Club
• M1 Information Plant
• M3 Information Factory
• Viettel’s Branches at 64 provinces/ cities in the country.
2.2. Business situation of Viettel from 2005 to 2010.
Since it was renamed into Viettel Telecom Group so far, Viettel constantly
evolves and expands in both size and quality of services. Although Viettel mobile
network developed after the networks of Vinaphone, Mobifone, S-fone…, Viettel has


details and clear-cut about the revenues of Viettel mobile market in Vietnam since
2005.
Apart from business situation, Viettel currently is a unit which has the largest
telecommunications network infrastructure in Vietnam and it will continue to be
invested in expanding strongly with a large scale. Number of new transmission stations
in 2010 increased more 16,300 2G and 3G stations, and raised total stations up to
42,200, accounting for 45% of total existing stations of the enterprises providing
Vietnam’s mobile information services. With this station amount, Viettel has ensured
that each commune in the country has at least one transmission station of Viettel. At
the same time, more than 32,000 km are pulled new and increasing total of fiber optic
network up to over 120,000 km, Viettel has made photochemistry of 82% of
communes and wards across the country.
Figure 2.2 Revenue of Viettel Mobile from 2005 to 2010 (billion VND)
17In addition to the above telecommunications infrastructure, Viettel has
conducted successful manufacture research and production of several
telecommunications equipment with the Viettel brand. The Group has researched,
made and produced successfully wireless fixed phone Homephone HP-6800 with the
output of 250,000 phones provided on the market. Continuing with this success, Viettel
has manufactured and tested continuously other products such as special phone for
offshore fishermen SeaPhone 6810, device of Dcom 3G USB, HomeGateway 3G -
modem for connection with the educational sector, for the military equipment, Viettel
has initially been successful with a number of military information machines for the
field of national security.
3G information services in 2010 was deployed and covered by Viettel in three
Indochina countries. Whole 17/17 provinces/cities across Laos country, the Unitel
mobile network has launched 3G services which bring Viettel to become the first 3G

2010 was 11.5%, ranked 24th. In the region, Vietnam is generally higher than other
countries, except in 2009. In 2010, the inflation was 11.75%, 1.5 times higher than in
India, 3 times higher than in China and 8 times in Thailand. Especially, in early 2011
so far, the inflation has increased 15.7%, increased 23% over the same period in 2010.
Currently, the Government is implementing the policies of tightening monetary,
reducing credit growth to control and prevent inflation to ensure the objectives set forth
as the total means of payment increases about 20%, the credit balance increases about
25%. VND exchange rate is operated more flexibly on the principle of market;
operation of interest rates in the diminishing mechanism and the direction, monitoring
increase to ensure the safety of credit activities
19Table 2.1 Some data on Vietnam's economy in the recent 05 years (GSO)
Year 2005 2006 2007 2008 2009 2010
Nominal GDP (billion USD) 52 60 70 89 91 101
GDP-PPP / capita (USD) 642 730 843 1052 1064 1168
The rate of real GDP growth (%
change over the previous year)
8.4 8.2 8.5 6.2 5.3 6.7
Exports (USD billion) 32 39 48 62 57 71
Import (USD billion) 36 44 62 80 69 84
Foreign Direct Investment FDI-
registration (USD billion)
6.8 12.0 21.3 71.7 23.1 18.6
Foreign Direct Investment FDI-
Implementation (billion USD)
3.3 4.1 8.0 11.5 10 11
Remittances (USD billion) 3.8 4.7 5.5 7.2 6.2 8.1
Total retail sales and consumer

businesses. Commercial law, antidumping, antitrust, intellectual property protection
has initially promoted its efficiency in the market.
• Science & Technology Environment (T): Technological factor has a major
effect on business strategies of the firms as well the industries. The technology has
decisive effect on the two basic elements which create competitiveness of enterprises,
particular quality and costs of products and services that the enterprise provides for the
market.
21Viettel, as well as other manufacturers in Vietnam go after and acquire the
existing technologies in the world. Thus, it has the conditions to select new technology
that does not take time, research and development costs. This is the strength of the
countries going behind. But it depends on the technology providers, development
expansion ability is limited. Mobile technology has now two main standards including
CDMA and GSM, in Vietnam, actually CDMA technology does not develop. All three
major companies in Vietnam are using the GSM technology and have successful
application of 3G generation and gradually testing 4G is the latest generation.
Vietnam’s production technology of terminals almost does exist, most
equipment is imported or if producing also purchases foreign technology and
components.
• Social & Culture Environment (S): In the business strategy management,
cultural - social factors are sensitive, often change. Lifestyles of the people themselves
rapidly change in the trends of the new lifestyle leading to consumer attitudes change.
When educational level is higher the increasing demand of the consumer for quality,
rich in variety of products will be higher.
Today, almost everyone from entrepreneurs, workers, farmers, students, civil
servants until students are in need of communication and other entertainments
Hence, this will enable the demand of use of telecommunications services of Viettel.
Along with the development of society in recent years, the awareness of Vietnamese is

telecommunications and information technology businesses have achieved spectacular
growth rates, nearly three times higher than GDP of Vietnam in 2010, reaching more
than 6.5%.
Currently, enterprises are facing many difficulties in the development of new
subscribers, the networkers are forced to perform many programs of incentives and
23new value-added services, even many units are illegal in dumping. Vinaphone recently
sends message directly to the subscribers on the promotion program which offers two
times of the free amount of Mobile Internet package and reduction of 50% charge
exceeding the package. In addition, to keep the subscribers who are pupils, students,
Vinaphone has launched the program of presenting online English study of BEA Card;
free 1 month for service subscription fee of Ringtunes and a month of service charge
subscription of informing missed calls as activating the package of students and pupils.
Also, Mobifone has also signed the strategic cooperation with the Ho Chi Minh
Communist Youth Union Central to cooperate the organization of programs
accompanying with Vietnamese youth during the period of 2011-2014. On this
occasion, Mobifone offers Q263 packages for Union staff in all levels with incentives
and free roaming programs and monthly subscription charges along with many other
incentives
In addition to the incentive programs to attract and retain subscribers, the
networkers are actively developing value-added services to save the Average Revenue
Per User (ARPU) from the touch of alarm bar. Typically, the larger networks are
promoting the form of payment via prepaid scratch card and "shaking hands"
(collaborating) with online payment gateways to promote forms of payment through
mobile phones. The ARPU are currently about 3-4USD/subscriber/month, this number
is supposed to reach the alarm for revenue and profit threshold.
The typical small networkers like Vietnammobile and Beeline have also
announced the super packages. Vietnammobile has announced the deployment of

transmission columns and the entire optical fiber transmission lines which are available
for service deployment of Wimax 4G services and other telecommunications services
in Hanoi. Initially, Indochina Telecom will deploy more than 100 base transceiver
25