THE CAPSTONE PROJECT
THE CAPSTONE PROJECT
DEVELOPING BUSINESS STRATEGY FOR
DEVELOPING BUSINESS STRATEGY FORVIETTEL MOBILE IN VIETNAM FOR
VIETTEL MOBILE IN VIETNAM FOR
THE YEARS 2011-2015
THE YEARS 2011-2015
GaMBA.X0510 - Group 9
GaMBA.X0510 - Group 9
Introduction
Introduction

Necessary

Objective
To conduct the complete top-down and competitive analyses, develop
alternative strategies and select a prioritized set of strategies that will
ensure a competitive advantage for Viettel mobile in the period of 2011-
2015.

Subject & Scope of the study
- Subject: Viettel group & other competitive companies in the mobile
telecommunication industry.
- Scope: Basing on specific statistics on the macro environment, industry
and organizational environment of the Viettel from 2005 to 2010 and
orientation until 2015.

Study Approaches


Help to identify opportunities and threats; Help managers and employees
to understand what needs to be done to achieve success

Enable firms to match the proposed plan with the external environment; It
is in the direction of future actions

Consider as the state of art in business administration
1.1.3. Types of strategy: Corporate & business
Chapter 1: Theoretical foundation (2)
Chapter 1: Theoretical foundation (2)
1. 2. Stages of strategic management
1. 2. Stages of strategic management
External
Environment
Strategic Intent
Strategic Intent
Strategic Mission
Strategic Mission
Internal
Environment
Strategy Implementation
Business Level
Strategy
Competitive
Dynamics
Corporate
Level Strategy
Acquisition &
Restructure

(EFE) Matrix
Competitive
Competitive
Profile Matrix
Profile Matrix
(CPM)
(CPM)
Internal
Internal
Factor
Factor
Evaluation
Evaluation
(IFE) Matrix
(IFE) Matrix
STAGE 2: THE MATCHING STAGE
STAGE 2: THE MATCHING STAGE
Strengths - Weaknesses - Opportunities - Threats
Strengths - Weaknesses - Opportunities - Threats
(SWOT) Matrix
(SWOT) Matrix
STAGE 3: THE DECISION STAGE
STAGE 3: THE DECISION STAGE
Quantitative Strategic Planning Matrix (QSPM)
Quantitative Strategic Planning Matrix (QSPM)
Chapter 2: Business situation of Viettel
Chapter 2: Business situation of Viettel
2. 1. Introduction of Viettel
2. 1. Introduction of Viettel
History:

2. 3. Business environment analysis
2. 3. Business environment analysis
2.3.1. External environment

Macro environment (PEST)
- Economics (
E
E): GDP increment, Inflation, VND rate, etc.
Year 2005 2006 2007 2008 2009 2010
GDP (USD) 642 730 843 1052 1064 1168
Exports (USD billion) 32 39 48 62 57 71
Import (USD billion) 36 44 62 80 69 84
Remittances (USD billion) 3.8 4.7 5.5 7.2 6.2 8.1
Total retail sales and consumer
services turnover (VND1000 billion)
480 596 746 1009 1197 1561
Consumer Price Index CPI (%
change over the previous year)
8.4 6.6 12.6 19.9 6.5 11.7
Chapter 2: Business situation (cont.)
Chapter 2: Business situation (cont.)
2. 3. Business environment analysis
2. 3. Business environment analysis
2.3.1. External environment

Macro environment (PEST)
-
Politics & Legal (
P
P): Stable environment, Administration procedures &

-
Power of Suppliers: Financial & Terminal providers
-
Substitute Products: Voice & Video conferencing services.

Evaluation of external environment
Chapter 2: Business situation (cont.)
Chapter 2: Business situation (cont.)
Factors of external environment
Factors of external environment
Weight
Weight
Impact
Impact
Mark
Mark
Opportunities
GDP increases continuously 0.20 4 0.80
Political stability, law is gradually improved 0.10 3 0.30
Government’s intervention (restriction for entry) 0.04 2 0.08
Technology policy 0.10 3 0.30
Large population, big market 0.20 4 0.80
Challenges
Competitive environment 0.05 3 0.15
Slowed market development speed 0.10 3 0.30
Pressure from customers 0.15 2 0.30
Challenges from new entrants, international integration 0.04 1 0.04
Substitutes 0.02 1 0.02
Total 1 3.09
Viettel’s external factor evaluation matrix (EFE)

Chapter 2: Business situation (cont.)
Chapter 2: Business situation (cont.)
2.3.2. Internal environment

Resources: Tangible (Finance, Organization, Facility, Technology) and
Intangible (Manpower, Ability of innovation & creativity, Reputation)
No
No
Target name
Target name
2005
2005
2006
2006
2007
2007
2008
2008
2009
2009
2010
2010
1 Revenue (VND billion) 3,200 7,400 16,000 33,000 60,000 91,000
2 Profit (VND billion) 390 1,400 4,000 8,400 10,000 15,500
3
State budget payment
(VND billion)
300 800 2,000 4,500 5,200 7,600
5
Value of investment

Resources

Strengths:
-
Widest coverage
-
Largest market-share
-
Attractive network package,
diversification services
-
Capital, technicians…

Weaknesses:
-
Management & operation
-
Professional degree
-
Loyal customers
-
Labor productivity…

Evaluation of
internal environment:
Staff of Viettel 2005-2010
Chapter 2: Business situation (cont.)
Chapter 2: Business situation (cont.)
Internal factor evaluation matrix of Viettel (IFE)
Internal factor evaluation matrix of Viettel (IFE)

Total
1.00 3.00
Chapter 3: Strategy selection & solutions
Chapter 3: Strategy selection & solutions
3. 1. Vision & Mission
3. 1. Vision & Mission
3.1.1. Vision

Leading telecommunication company in Vietnam & in the Indochina area

Providing the best products and services for customers
3.1.2. Mission

Closed collaboration between economy & defense

Investment in infrastructure

Customer-oriented business

Rapid development, continuous reforms to stabilize

Talking human as core factor
3.1.3. Core values

Practice is the criterion for testing truth;

Maturing through challenges & failures;

Quick adaptation is competitive strength;


-Loyal customers
W
4
-Working staff
OPPORTUNITIES
O
1
-GDP continuously grows.
O
2
-Stable politics, law being improved
O
3
-Government’s intervention
O
4
-Technology policy
O
5
-Numerous population, large market
THREATS
T
1
-Violent competition environment
T
2
-Slowdown growth market
T
3
-Pressure from customers

Appropriate in use of labor; Policies to
attract & keep talent people;
-
Specific policies on postpaid customers,
prepaid subscribers changing to postpaid;
ST strategies:
ST strategies:
-
Maintenance of market-share, Improvement of
marketing;
-
Development of new entertainment services on
mobilephone, PC & Ipad…
-
Appropriate price to keep & attract customers;
-
Development of new market which is less
competitive, less substitute products…based on
the advantages
WT strategies:
WT strategies:
-
Enhancing supervision, management and
administration reform;
-
Strengthening training to improve service
quality to limit the loss of customer;
-
Cutting costs, appropriate prices
-

Strategies
Strategies
Market
Market
Penetration &
Penetration &
Develop.
Develop.
Product
Product
Develop.
Develop.
Operation
Operation
Diversifi.
Diversifi.
Continuously increased GDP 0.20 4 0.80 3 0.60 4 0.80
Stable politics, law being improved 0.10 3 0.30 3 0.30 3 0.30
Intervention of the government
(restriction of entry)
0.04 4 0.16 3 0.12 3 0.12
Technology policy 0.10 3 0.30 4 0.40 3 0.30
Large population, market 0.20 4 0.80 3 0.60 3 0.60
Chapter 3: Selection & solutions (cont.)
Chapter 3: Selection & solutions (cont.)
Competitive environment 0.05 3 0.15 2 0.10 4 0.20
Slowed market development 0.10 3 0.30 2 0.20 2 0.20
Pressure from customers 0.15 4 0.60 2 0.30 3 0.45
Challenges from new entrants, int. 0.04 1 0.04 3 0.12 4 0.16
Substitutes 0.02 2 0.04 3 0.06 4 0.08


Marketing solutions
Chapter 3: Selection & solutions (cont.)
Chapter 3: Selection & solutions (cont.)
3. 4. Implementation process
3. 4. Implementation process

Construction of annual goals

Construction of policy system and support plan

Development of action plans, budgets and implementation processes

Allocation of human resources, finance, facilities

Selection of organization structure consistent with the strategy

Strategic commitment and implementation

Strategic inspection control, evaluation and adjustment in the
implementation process
Conclusions
Conclusions

Development of business strategy for a service business production unit
is extremely important, very complicated and not easy to perform

Using knowledge from MBA courses & our practices to formulate
strategic planning for Viettel for the years 2011-2015, we chosen the best
business strategy for the Group in Vietnam.