The document provides an overview of a capstone project to develop a business strategy for Viettel Mobile in Vietnam from 2011-2015. It outlines conducting analyses of the external and internal environments, developing alternative strategies, and selecting prioritized strategies. The structure includes theoretical foundations, an analysis of Viettel's business activities from 2005-2010, and identifying vision, mission, and strategic options. Key points analyzed include Viettel's competitive position, resources, strengths, weaknesses, opportunities, and threats in the mobile telecommunications industry in Vietnam.

1. THE CAPSTONE PROJECT
DEVELOPING BUSINESS STRATEGY FOR
VIETTEL MOBILE IN VIETNAM FOR
THE YEARS 2011-2015
GaMBA.X0510 - Group 9

2. 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
Qualitative & quantitative; Statistical & analytical analyses

3. Structure of the study
 Chapter 1: Theoretical foundation of strategic management
- Concept & role
- Stages of strategic management
- Models and matrices used
 Chapter 2: Analysis of business activities of Viettel
- Introduction to Viettel Group
- Business situation 2005-2010
- Business environment analyze
 Chapter 3: Strategy selection & Implementation solutions
- Vision & mission
- Strategic identification & selection
- Implementation solutions & processes

4. Chapter 1: Theoretical foundation
1. 1. Concept & role of strategic management
1.1.1. Concept
 There exist many definitions of strategic management
 It is now understood to be both a scientific definition & is an art and
science of planning, organization implementation and evaluation
strategies.
1.1.2. Roles
 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

5. Chapter 1: Theoretical foundation (2)
1. 2. Stages of strategic management
Internal Input External
Environment Environment
Strategic Intent
Strategic Mission
Strategy Formulation Strategy Implementation
Business Level Competitive Corporate Corporate Structure &
Strategy Dynamics Level Strategy Governance Control
Acquisition & Internation. Corporative Strategic Entrepre. &
Restructure Strategy Strategies Leadership Innovation
Strategic Competitiveness
Above Average Returns
Feedback

6. Chapter 1: Theoretical foundation (3)
1. 3. Models & matrices used
STAGE 1: THE INPUT STAGE
External Internal
Competitive
Factor Factor
Profile Matrix
Evaluation Evaluation
(CPM)
(EFE) Matrix (IFE) Matrix
STAGE 2: THE MATCHING STAGE
Strengths - Weaknesses - Opportunities - Threats
(SWOT) Matrix
STAGE 3: THE DECISION STAGE
Quantitative Strategic Planning Matrix (QSPM)

7. Chapter 2: Business situation of Viettel
2. 1. Introduction of Viettel
History:
 The first name was Information Equipment Electronics Corporation in
1989, then Military Telecommunication Electronics Company after 5
years & Viettel Telecom Group since Dec. 2009.
 Headquarter: No1 Giang Van Minh, Badinh, Hanoi
 Membership units: 14 and 64 branches
 Own capital: VND 50,000 Billion
Business areas:
Supply of telecommunications services; Telecommunications,
Transmission; Post Office; Terminal distribution; Finance investment;
Media; Real Estate Investment; Export & Import and Foreign Investment.

8. Chapter 2: Business situation (cont.)
2. 2. Business performance of Viettel (2005-2010)
 Revenues increased by 200% year-over-year since 2005-2009, ROE:
48.3%, Global expansion (Indochina, Africa, Latin…)
 Largest mobile network: 42,200 Stations, 120,000km fiber optic net,
17/17 provinces Laos cover 3G, etc.
Revenue & profit of Viettel (2005-
2010)

9. Chapter 2: Business situation (cont.)
2. 3. Business environment analysis
2.3.1. External environment
 Macro environment (PEST)
- Economics (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
480 596 746 1009 1197 1561
services turnover (VND1000 billion)
Consumer Price Index CPI (%
8.4 6.6 12.6 19.9 6.5 11.7
change over the previous year)

10. Chapter 2: Business situation (cont.)
2. 3. Business environment analysis
2.3.1. External environment
 Macro environment (PEST)
- Politics & Legal (P): Stable environment, Administration procedures &
Business law were amended and considerably improved.
- Science & Technology (T): Acquiring the advanced technologies (GSM,
3G and 4G testing in progress), Terminal production technology in
Vietnam is limited.
- Social & Culture (S): Rapidly change in the trend the new lifestyle,
Demand of using telecommunication increment, Awareness of
Vietnamese improved.
- Demography: Population of 87 million, Over 50% under 27 years

11. Chapter 2: Business situation (cont.)
2. 3. Business environment analysis
2.3.1. External environment
 Industry environment (Michael Porter - 5 Forces)
- Rivalry: Violent competition, Viettel (36.4%), Vinaphone (28%), Mobifone
(28.8%); Many promotion programs from the rivalry.
- Threat of New Entrants: Indochina Telecom with MVNO, Winmax 4G and
other telecommunication services
- Power of Buyers: Many providers, Loyal & Prepaid customers
- Power of Suppliers: Financial & Terminal providers
- Substitute Products: Voice & Video conferencing services.
 Evaluation of external environment

12. Chapter 2: Business situation (cont.)
Viettel’s external factor evaluation matrix (EFE)
Factors of external environment Weight Impact 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

13. Chapter 2: Business situation (cont.)
The CMP matrix compares with several companies
Viettel Vinaphone Mobifone
Successful factors Weight
Rank Mark Rank Mark Rank Mark
Quality of products and
0.20 4 0.80 3 0.60 4 0.80
services
Advertisement 0.15 2 0.30 3 0.60 2 0.40
Competitive prices 0.15 4 0.60 3 0.45 2 0.30
Financial position 0.10 2 0.20 2 0.20 2 0.20
Customer loyalty 0.10 3 0.30 3 0.30 4 0.40
Market share 0.15 4 0.60 3 0.45 3 0.45
Diversification of 0.10 3 0.30 3 0.30 3 0.30
products
Globalization 0.05 2 0.10 1 0.05 2 0.10
Total 1.00 3.20 2.95 2.95

14. 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 Target name 2005 2006 2007 2008 2009 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
State budget payment
3 300 800 2,000 4,500 5,200 7,600
(VND billion)
Value of investment
5 1,300 2,000 4,800 10,000 16,550 11,450
(VND billion)
Average labor in the list
6 4,175 6,200 8,400 12,000 18,000 24,000
(person)
Average income
7 2.5 3.8 6.5 9.87 11.5 13
(VND million)
Subscribers of services
8 1.0 2.7 5.5 29 44 51.5
(million subscribers)

15. Chapter 2: Business situation (cont.)
Number of mobilephone subscribers (Left table) and marker-share of
mobilephone providers in 12 Dec. of Vietnam (Right figure)
3.1% 1.7% 1.4%
No Suppliers Subscribers 0.2%
36.4%
28.8%
1 Viettel 40,967,382
2 Vinaphone 32,026,915
3 Mobifone 32,476,589
4 Beeline 187,176 28.4%
5 Vietnam Mobile 3,543,028
Viettel Vinaphone Mobifone Beeline
6 S-Fone 1,860,793
VNMobile S-Fone EVNT
7 EVN Telecom 1,629,585

16. Chapter 2: Business situation (cont.)
2.3.2. Internal environment
 Resources  Strengths:
24,500
- Widest coverage
25,000
20,837 - Largest market-share
20,000
- Attractive network package,
14,300
diversification services
15,000 - Capital, technicians…
8,470
10,000
5,000
6,279  Weaknesses:
- Management & operation
5,000
- Professional degree
0 - Loyal customers
2005 2006 2007 2008 2009 2010
- Labor productivity…
Staff of Viettel 2005-2010
 Evaluation of
internal environment:

17. Chapter 2: Business situation (cont.)
Internal factor evaluation matrix of Viettel (IFE)
Internal environment factors Weight Impact Mark
Strengths
Network and coverage, the ability to meet 0.15 4 0.60
Market share 0.15 3 0.45
Finance 0.10 3 0.30
Technology 0.05 2 0.10
Prestige, brand 0.05 3 0.15
Pricing, products and services 0.10 4 0.40
Weaknesses
Structure of management organization 0.15 3 0.45
Quality of service 0.10 3 0.30
Loyal customer 0.05 1 0.05
Human Resources 0.10 2 0.20
Total 1.00 3.00

18. Chapter 3: Strategy selection & solutions
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;
 Innovation is life; Systematic thinking; East West combination; Tradition &
method of soldiers; And Viettel is the public house.

19. Chapter 3: Selection & solusions (cont.)
3. 2. Strategic identification & selection
STRENGTHS WEAKNESSES
S1-Network & coverage area, its abilities W1-Management & organization
S2-Largest market-share W2-Quality of services
S3-Strong finance W3-Loyal customers
S4-Advanced technology W4-Working staff
S5-Reputation, brand
S6-Pricing policy, products and services
OPPORTUNITIES THREATS
O1-GDP continuously grows. T1-Violent competition environment
O2-Stable politics, law being improved T2-Slowdown growth market
O3-Government’s intervention T3-Pressure from customers
O4-Technology policy T4-New entrants, Inter. integration;
O5-Numerous population, large market T5-Substitutes products

20. Chapter 3: Selection & solutions (cont.)
3. 2. Strategic identification & selection
SO strategies: WO Strategies:
- Ensuring quality & network expansion; - Reform of the managerial structure,
- Policies on price, product, brand…to gain organizational amendments;
market-share from rivals; - Improvement of service quality through
- Development of new products and services; training
- Promotion for subscribers outside the city; - Appropriate in use of labor; Policies to
attract & keep talent people;
- Specific policies on postpaid customers,
prepaid subscribers changing to postpaid;
ST strategies: WT strategies:
- Maintenance of market-share, Improvement of - Enhancing supervision, management and
marketing; administration reform;
- Development of new entertainment services on - Strengthening training to improve service
mobilephone, PC & Ipad… quality to limit the loss of customer;
- Appropriate price to keep & attract customers; - Cutting costs, appropriate prices
- Development of new market which is less - Focusing on the loyal customers and
competitive, less substitute products…based on development of new ones from the existing;
the advantages

21. Chapter 3: Selection & solutions (cont.)
3. 2. Strategic identification & selection
 Strategy of market penetration & development
 Strategy of products development
 Strategy of operations diversification
 Selecting strategy for Viettel in the period of 2011-2015
The QSPM Matrix for Viettel Group
Strategies
Weight Market Product Operation
Important factors Penetration Develop. Diversifi.
& Develop.
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
0.04 4 0.16 3 0.12 3 0.12
(restriction of entry)
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

22. Chapter 3: Selection & solutions (cont.)
The QSPM Matrix for Viettel Group (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
Network coverage, ability to meet 0.15 4 0.60 2 0.30 2 0.30
Market share 0.15 3 0.45 2 0.30 1 0.15
Finance 0.10 3 0.30 4 0.40 4 0.40
Technology 0.05 3 0.15 4 0.20 2 0.10
Prestige, brand 0.05 4 0.20 3 0.15 2 0.10
Pricing, products and services 0.10 4 0.40 2 0.20 3 0.30
Management organization structure 0.15 2 0.30 3 0.45 2 0.30
Quality of service 0.10 3 0.30 2 0.20 2 0.20
Loyal customer 0.05 1 0.05 1 0.05 1 0.05
Human Resources 0.10 2 0.20 4 0.40 3 0.30
Total 2.00 6.44 5.45 5.41

23. Chapter 3: Selection & solutions (cont.)
3. 3. Implementation solutions
 Target market and basic policies for the market
 Continuing maintenance of expansion investment and improvement of
coverage quality, customer service capabilities
 Continuing development of price policies for product package,
competition and flexibility for each customer segment
 Management of human resources for changing the structure and
improving the quality of service from the human factor
 Financial management solutions
 Marketing solutions

24. Chapter 3: Selection & solutions (cont.)
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

25. 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.
 It brings the Viettel leaders a overview of works, contributes to
improvement of competitiveness and determines the optimal solutions for
stabilization and development of the Group.
 However, because of limits on theoretical knowledge as well practice of
the group’s members ourselves, this study cannot be avoided
shortcomings/mistakes
 We are very happy & looking forward to getting the comments, feedbacks
from the teachers & classmates .

26. Our deeply thanks & gratitudes
To:
 The lecturer Dr. Vu Thanh Hung and Dr. Tony Sanichara who taught
us dedicatedly the course "Strategic Management“, guided and
facilitated our group to complete this capstone.
 The teachers in the ETC Center, National Economics University,
VNU, Griggs - Andrews University who taught the knowledge through
the courses designed by the MBA program.
 Advisors, managers and our friends of the class X0510…
From: Group 9 - GaMBA X0510
1. Mr. Đỗ Anh Minh
2. Mr. Nguyễn Vinh Thư
3. Mr. Phạm Thành Công
4. Mr. Trương Trung Nghĩa