Table of Contents Introduction Following assignment and 2, in this assignment 3, I will continue to analyze and report the strategy of my chosen company - Viettel In addition, I will evaluate the company's strategies using various evaluation methods such as SAFe criteria and QSPM matrix LO4 Apply models, theories and concepts to assist with the understanding and interpretation of strategic directions available to an organization Propose at least two strategic plans The strategy of expanding and developing domestic mobile telecommunications market share of Viettel Military Telecom Corporation in the period of 2015 to 2019 is built on the following foundations: - Continue to affirm Viettel's position, brand and service quality in the domestic telecommunications market; - Ensuring to maintain and lead the market of mobile telecommunications in Vietnam with a market share of not less than 40% - Become one of the 25 largest telecommunications brands in the world in 2019 and achieve the level of operators of developed countries From the analysis of the business environment in assignment and 2, I proceeded to summarize the external environmental factors that can help administrators choose the appropriate development strategies of Viettel Finally, I apply the quantitative strategy planning matrix (QSPM) to the input data from the aforementioned analyzes to determine objectively which of the above strategies is The most attractive and worthy way for the Group to pursue to successfully implement its a Market development strategy: Based on the SWOT matrix combining strengths and opportunities, a market development strategy can be taken advantage of the strengths of parallel coverage, the ability to meet the market to take advantage of the largest market opportunities, namely rural areas villages, mountainous areas and islands to continue developing markets before being saturated and degraded Market development strategy is a strategy to grow service business, increase the group's position by focusing on developing products and services that are currently the group's strength to attract and dominate the market This is a strategy that requires diversifying products and services in order to take advantage of the strong capital and available human resources and a distribution network across provinces to expand products and services Telecommunications market in Vietnam is growing very strongly, the network operators are currently competing for market share is very fierce With Viettel's market share of 40%, Viettel needs to make efforts to offer cheap information services, support strong advertising marketing to increase the market share of products and services As of June 2018, the population of our country is about 98 million but the number of mobile subscribers is estimated at 122.6 million (up 5.2% compared to the same period in 2017), thus, the mobile market growth is somewhat slowing down and approaching saturation phase Although the telecommunications market in general and Viettel's mobile market recently have increased, the speed is much slower than the period 2013 to 2016 Therefore, Viettel needs to maintain the existing domestic market and strengthen market segmentation in remote residential areas, targeting poor households who are civil servants, pupils, students, middle and low income classes (DanSo.Org, 2019) b Product development strategy This is a combination of technology strengths, research and development capabilities and wide coverage to offer new and varied products and services to meet the challenges of the existing market A product development strategy is a new product development strategy for consumption in existing markets As a company operating in many fields with a diverse product range structure, with a large market, Viettel needs to research and develop product development strategies that are suitable for customers' tastes with market demand Diversification of products and services must be carried out in order to take advantage of the Group's strong capital and available human resources and a system of distribution channels throughout the provinces The needs of customers require more attention, better service The opportunity of the developing market is therefore the Group has launched service packages suitable to customer needs while expanding business areas to take advantage of the Group's ability to dominate the market with pepper leads a number of areas with advantages Using the strategy to reach customers, Viettel has been searching for new market segments such as customers with a high demand for listening (Tomato package), young people who like to use value-added services (such as Ciao package) And this network has "caught" the opportunity to continually offer new services that bring in great revenue The I-muzik service, after a year, was launched by eight million users In addition, Viettel also offers many types of services such as sharing accounts, receiving and sending email services on mobile phones Among the current carriers, Viettel is currently the provider of basic services and the most added service with more than 18 services The main services that attract 3G are Mobile TV, Imuzik 3G, Pixshare, Yahoo Chat, IM, etc Viettel is researching and adding some additional services such as Video conference, live sport, digital statistics to continue to support and attract customers c Strategies to diversify the economic sector Combining financial strengths, challenges of the market and limitations of Viettel in the SWOT matrix, I realized that I could come up with a strategy to diversify business of Viettel Because the market is about to be saturated internally, there are restrictions on the operating structure and service quality, which is difficult to compete with other companies but has a large financial and network potential business to ensure a higher average profit With this strategy, Viettel will gradually shift its investment to other business sectors First, it is necessary to focus on shifting into relevant fields to take advantage of existing experiences and advantages such as: - Investment in the production of telecommunications and informatics equipment on the basis of further development of existing factories and technologies; - Invest in building the retail distribution network of telecommunications and informatics equipment on the basis of the transaction network system; - Investing in import and export is firstly importing and exporting related products such as telecommunications equipment, switchboards, electronic components for production, investment, etc - Investing in the development of the postal sector, or gradually taking part in other fields such as contributing capital to banking, real estate, transportation, electricity production, etc Evaluate alternative strategies using various assessment methods (e.g SAFe criteria, Quantitative Strategic Planning Matrix – QSPM) while taking mission and vision of the chosen company into consideration “The strategic-management process can be described as an objective, logical, systematic approach for making major decisions in an organization It attempts to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty Although strategic management is not a pure science that lends itself to a nice, neat, one-two-three approach, the process is widely viewed to consist of three distinct stages: strategy formulation, strategy implementation, and strategy evaluation The QSPM fits into the first stage, strategy formulation, and is an excellent tool for deciding among feasible alternative strategies” (David, 2009) Matrix of External Factor Evaluation of Viettel (EFE) External environmental factors Critical level Impact Point 0.20 0.80 0.10 0.30 0.04 0.08 0.10 0.30 0.20 0.80 companies 0.05 0.15 The growth of the mobile pine market has slowed down 0.10 0.30 Opportunity GDP continuously increased for 10 years at over 6% Political stability, legislation on competition, telecommunications, information and transmission gradually improved The government restricts the establishment of new mobile telecommunications carriers Technology policies on telecommunications and information technology are given priority Large population (more than 90 million people), large market, one of the fastest growing telecommunications markets in the world Challenge The competitive environment between mobile telecommunications Pressure from customers using mobile telecommunications services to switch to use by other companies 0.15 0.30 mobile telecommunications market 0.04 0.04 Products that replace traditional mobile services 0.02 0.02 Total Challenges from new entrants, international integration in the 3.09 With the evaluation point according to EFE matrix, we can see that Viettel is in an attractive environment because of high barriers to entry, substitutes with little or no impact, and Viettel's competitive level is good in the market The economic, political, demographic, technological and financial conditions are all favorable for Viettel's growth in the future However, there is also a great challenge that is the increasing competition of companies in the industry; slowing market growth and customer pressure on costs and service quality Matrix of Internal Factor Evaluation of Viettel (IFE) Internal environmental factors Critical level Impact Point 0.15 0.60 0.15 0.45 0.10 0.30 0.05 0.10 0.05 0.15 0.10 0.40 0.15 0.45 0.10 0.30 Strength Network and range coverage, ability to meet 100% of communes and islands nationwide Mobile telecommunications market share accounts for 40% Strong finance has great potential Modern technology, well invested, capable of research, development and innovation Prestige and brand are affirmed in domestic and foreign markets Price policy, suitable products and services Weakness The organizational and management structure is heavily dependent on defense activities, bringing many administrative features The quality of service is not uniform and not high Loyal customers (postpaid subscribers) are low compared to Mobiphone and Vinaphone Human resources are crowded, hot development has not met the job requirements Total 0.05 0.05 0.10 0.20 1.00 3.00 From the IFE matrix above, Viettel Group has a total score of 3.00, showing that Viettel is a strong internal corporation This is one of the great competitive advantages of Viettel in the mobile telecommunications market in Vietnam Applying quantitative strategic planning matrix (QSPM) to the input data from the above analysis to help quantify to objectively determine which of the above strategies is most appealing and desirable It is worth the Group's pursuit to successfully accomplish its goals The QSPM matrix is built on the basis of: - List of major external opportunities / challenges and key strengths / weaknesses from the EFE and IFE matrix; - Integrating and analyzing selected strategies: market penetration & development strategy, product development strategy and operational diversification strategy QSPM matrix for Viettel The strategy Important factors Critical Penetration level and market development GDP increased continuously over 6% in competition, economic sector) 0.80 0.60 0.80 0.10 0.30 0.30 0.30 0.04 0.16 0.12 0.12 the 0.10 0.30 0.40 0.30 at over 6% legislation (Strategies to diversify the GDP continuously increased for 10 years stability, development activities 0.20 10 years Political Diversify Product on telecommunications, information and transmission gradually improved The government restricts establishment of new mobile telecommunications carriers Technology policies telecommunications and on information 0.20 0.80 0.60 0.60 0.05 0.15 0.10 0.20 0.10 0.30 0.20 0.20 0.15 0.60 0.30 0.45 international integration in the mobile 0.04 0.04 0.12 0.16 0.02 0.04 0.06 0.08 0.15 0.60 0.30 0.30 0.15 0.45 0.30 0.15 0.10 0.30 0.40 0.40 capable of research, development and 0.05 0.15 0.20 0.10 0.05 0.20 0.15 0.10 0.10 0.40 0.20 0.30 0.15 0.30 0.45 0.30 technology are given priority Large population (more than 90 million people), large market, one of the fastest growing telecommunications markets in the world Mobile telecommunications market growth is slowing down The competitive environment between mobile telecommunications companies Challenges from new entrants, telecommunications market Products that replace traditional mobile services Network and range coverage, ability to meet 100% of communes and islands nationwide Mobile telecommunications market share accounts for 40% Strong finance has great potential Modern technology, well invested, innovation Prestige and brand are affirmed in domestic and foreign markets Price policy, suitable products and services The organizational and management structure is heavily dependent on defense activities, bringing many administrative features The quality of service is not uniform and not high 0.10 0.30 0.20 0.20 0.05 0.05 0.05 0.05 0.10 0.20 0.40 0.30 Loyal customers (postpaid subscribers) are low compared to Mobiphone and Vinaphone Human resources are crowded, hot development has not met the job requirements Total 2.00 6.44 5.45 5.41 According to the evaluation data from the above QSPM matrix, we can easily see that the market penetration and development strategy has the highest total score of 6.44; while product development strategy and operational diversification strategy have almost the same score, ranging from 5.45 to 5.41 points As such, the domestic mobile telecommunications business strategy suitable for Viettel in the period 2015-2019 is the penetration strategy and market development This strategy helps Viettel to promote its strengths and take advantage of market opportunities in the period of 2015-2019, with the goal of reaching the end of 2019, Viettel will occupy more than 40% of the market of mobile subscribers with the number of subscribers bags over 50 million SAFe criteria When it comes to building a business strategy, it's often difficult to choose the right one, never really implementing and evaluating the usefulness and effectiveness of that strategy So how we choose? The first thing we need to is to decide on a criterion to evaluate our options and a helpful approach is to consider the Suitability, Acceptability and Feasibility (SAFe) of each criterion (Whittington et al., 2017) Suitability This is perhaps the most important element in the SAF strategy model, because the Suitability of an option is the key to whether the strategy will what the company wants it to or not Suitability is often assessed against a number of different criteria that are particularly important for a business or company such as conformance with the environment, expectations, and competence These individual match types should then be further categorized to really reflect the company's specific needs Acceptability The acceptable aspect of the SAF strategic model is all about measuring profitability, risk and stakeholder response due to a particular strategy Profits will be measured based on the benefits that stakeholders expect from the strategy and can be both financial and non-financial, depending on what the stakeholders decide Profit calculation can be done by any method such as cost benefit analysis, profit analysis, real option analysis and shareholder value analysis Feasibility When it comes to it, the feasible part of the SAF strategy model is actually creating or breaking any chosen strategy Whether the business has the resources, aptitude and ability to implement the strategy is the key to its success, so the financial feasibility should be assessed by forecasting and analyzing cash flow, implementation breakeven analysis and some other financial tests (Oxford College of Marketing Blog, 2019) SAFe criteria of Viettel Suitability The proposed strategy can address the opportunities and limitations that Viettel faces Because with Viettel's strategy to penetrate and expand the market in the period of 2015 - 2019 based on promoting its strengths to take advantage of market opportunities, Viettel identifies the market and solution to penetrate and development include: • Markets in rural areas, remote areas, fishermen, mountainous islands: Statistics show that 80% of the population in rural areas, this is a very large market object because of the growing economy, The cost of using the phone is getting lower and lower With the advantage of coverage and the ability to meet customer needs in these areas, Viettel is very convenient to capture the market Along with the process of rich-poor division is the migration from rural to urban areas Therefore, if these people have used Viettel before, after using it in the city, the usage rate will be very high and contribute to increasing Viettel's market share in urban areas; With this object mainly focusing on low-cost phone products, construction costs only focus on good service of making calls and texting that not need much for added services • Urban market focuses on students, pupils and unskilled workers: The most active and prefer to use value-added services such as internet, chat, music, social networks such as facebook, etc Therefore, Viettel needs to focus on low prices for value-added services to keep existing customers who will become loyal customers and bring high benefits Acceptability The proposed strategy will probably meet the expectations of the stakeholders (customers) Because Viettel primarily targets the market segment of workers, civil servants, students, students, rural areas, urban areas, etc the middle income class is mainly Based on the analysis and assessment of the business environment, considering the identified goals and tasks, the managers need to choose a development strategy and increase Viettel's position by focusing on developing products and services that are strong as: mobile communication services, Internet Continue to maintain different service packages suitable for many objects in society such as: Parent and child packages; Happy Zone; Tomato; Sumo Sim; Homephone; Sea + Besides, Viettel's level of risk is at an acceptable level Because Viettel is a company of the Ministry of Defense, it owns 100% of the capital from the state and now the world economy is recovering but it is still very weak and unstable Many difficulties are high inflation, trade imbalance, so the financial risks of Viettel maybe still exist, affecting business activities and expanding domestic and international market share of Viettel The financial management of the Group during this period should therefore always focus on the ability to mobilize working capital and use capital efficiently, avoiding waste The capital mobilization plan must be consistent with the business and investment programs and not be passive in capital Viettel's Finance and Accounting Department must coordinate with other departments such as planning, investing to make monthly, quarterly and annual financial plans and review regularly the implementation of those plans to have a basis raise capital in a timely manner Financial plans must always take into account the contingencies and changes that adapt to needs Feasibility The proposed strategy will be effective in practice Because the number of customers who trust and use Viettel services is increasing Viettel has a very strong point that Viettel owns 100% capital from the state Besides, It has financial suppliers such as associate companies, MHB, Vinaconex and EVN Besides, it also has a number of material and product suppliers such as AT&T (United States), Blackbarry Nokia, Huawei (China), Ericsson (Sweden), Nokia Siement Network (Finland) So their strategies will be financed Viettel also has a good and highly educated human resource With such a good human resource, they will definitely help Viettel company to fulfill the set strategies (Vnr500.com.vn, 2019) Conclusion Building a business strategy for a production and business unit is extremely important, difficult and difficult to implement In the era of international economic integration and development, building business strategies for enterprises has long-term meaning, creating orientations and firm steps for stable enterprises to move forward and reap success From the basics of strategic direction, Viettel gradually solve issues such as technological innovation, rationalizing production, expanding markets, improving service quality, developing human resources to bring The enterprise meets the set strategic objectives Viettel Military Telecom Corporation is a relatively late-born enterprise, but in recent years, it has continuously strived to find a way to adapt to the business environment, despite the Group's operating model governed by the state Today, Viettel has gained a firm foothold in the market, is the largest telecom market provider and has the largest network coverage in the country, the largest provider of high-speed Internet access services Southeast Asia References DanSo.Org (2019) DansoVietNammoinhat (2019) - DanSo.Org [online] Available at: https://danso.org/vietnam/ [Accessed 30 Nov 2019] David, M E., David, F R., & David, F R (2009) The Quantitative Strategic Planning Matrix (QSPM) applied to a retail computer store The Coastal Business Journal, 8(1), 42-52 Oxford College of Marketing Blog (2019) Using The SAF Strategy Model to Evaluate Strategic Options [online] Available at: https://blog.oxfordcollegeofmarketing.com/2018/02/25/evaluating-strategic-options-using-safstrategy-model/?fbclid=IwAR2sfFqffWigXN7jXw81zDAvnAXRsokrnydA-MPhraGQU5ezG1B9kiLIogc [Accessed 13 Dec 2019] Vnr500.com.vn (2019) Tapdoanvienthongquandoi [online] Available at: http://www.vnr500.com.vn/Thong-tindoanh-nghiep/TAP-DOAN-CONG-NGHIEP-VIEN-THONG QUAN-DOI-Chart 2-2017.html [Accessed 30 Nov 2019] Whittington, R., Johnson, G., Scholes, K., Angwin, D and Regnér, P (2017) Exploring strategy 11th ed Harlow [etc.]: Pearson, pp.120  ... the IFE matrix above, Viettel Group has a total score of 3.00, showing that Viettel is a strong internal corporation This is one of the great competitive advantages of Viettel in the mobile telecommunications... Marketing Blog, 2019) SAFe criteria of Viettel Suitability The proposed strategy can address the opportunities and limitations that Viettel faces Because with Viettel' s strategy to penetrate and... in practice Because the number of customers who trust and use Viettel services is increasing Viettel has a very strong point that Viettel owns 100% capital from the state Besides, It has financial