To become one of the strongest Telecommunications and Technology Groups today, Viettel has built and deployed its business strategies effectively. Let’s learn and analyze Viettel’s business strategy in the article below.
Overview of Military Telecommunications and Technology Group (Viettel)
According to Wikipedia , Military Industry and Telecommunications Group (Viettel) is a Vietnamese Telecommunications and Technology corporation established on June 1, 1989. Viettel’s headquarters is located at Lot D26, Lane 3 , Ton That Thuyet street, Yen Hoa ward, Cau Giay district, Hanoi capital.
The main business of Viettel Telecommunications and Technology Group is to provide telecommunications and internet products and services; Value-added services on the internet and mobile phones; Message services, data, entertainment information on mobile phone networks, etc. Currently, Viettel is the enterprise with the largest customer base in Vietnam with more than 70 million customers.
Viettel Telecom is currently the network operator holding the largest market share in the Vietnamese telecommunications services market. Viettel’s most prominent product today is the Viettel Mobile mobile network. The main industries of the group include: telecommunications & IT services industry; electronics and telecommunications equipment research and production industry, defense industry, cyber security industry and digital service provision industry.
Currently, Viettel has invested in 10 foreign markets in 3 continents including Asia, America and Africa. In 2018, Viettel achieved revenue of 10 billion USD (234,500 billion VND). Viettel is considered one of the fastest growing telecommunications companies in the world.
In 2019, Viettel became one of the Top 15 largest telecommunications companies in the world in terms of number of subscribers and Top 40 largest telecommunications companies in the world in terms of revenue. Viettel’s brand value is determined by Brand Finance to be 4.3 billion USD – among the Top 500 largest brands in the world, and the most valuable brand in Vietnam.
On January 17, 2020, Minister of Information and Communications Nguyen Manh Hung and Minister of Science and Technology Chu Ngoc Anh made the first video call using 5G connection on transceiver devices. gNodeB wave is researched and produced by Viettel itself, including hardware and software equipment.
On November 30, 2020, Viettel announced the official opening of 5G test business, becoming the network operator to provide 5G as soon as possible to customers after the technical test broadcast period. In 2020, despite being affected by the global Covid-19 pandemic, Viettel still completed its 2020 production and business plan, achieving a total revenue of more than 264 trillion VND, an increase of 4.4% compared to 2019. and reached 102.4% of the year’s plan.
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Analyze Viettel’s SWOT model
The SWOT model is a famous tool known and applied by many businesses because of its usefulness in helping managers analyze important factors inside and outside the business from which to establish strategies. appropriate strategy and business plan.
SWOT stands for 4 words: Strengths, Weaknesses, Opportunities and Threats – is a famous model that helps businesses analyze and build your business strategy effectively.
Among the 4 elements of the SWOT model, strengths and weaknesses are two factors for internal assessment of the business. For these two factors, businesses can control and change. Often these factors are related to company operations, assets belonging to the business, product development, etc.
Besides, the remaining two factors, opportunities and challenges, are external factors that are often related to the market and are macroeconomic in nature. Businesses may not be able to control these two external factors. Businesses can fully seize opportunities, but they must also pay attention and be wary of external challenges that can occur at any time.
For Viettel, the strengths, weaknesses, opportunities and challenges of this brand can be analyzed as follows.
Strengths
Regarding the strengths of Viettel’s business strategy, this brand can take advantage of its outstanding strengths as follows:
Owns a large market share
Viettel is currently the leading enterprise in the field of communications in Vietnam, accounting for about 44% of the market share.
In the international market, Viettel has developed extremely strongly outside the S-shaped border such as Cambodia, even in the black continent and Latin America: On September 7, 2011 Natcom launched a digital telecommunications network in Haiti. . In Mozambique, Viettel’s Movitel was known as Africa’s miracle when it created a mobile revolution and won 6 international awards.
Possesses large capital resources
Viettel has strong financial resources (equity of about 50,000 billion VND), operates mainly based on self-reliance and rarely requires bank loans.
Famous brand
Viettel’s brand image at the end of 2020 is considered the most famous brand in Vietnam in the field of telecommunications organized by VCCI in collaboration with Life Media company, AC Nielsen, and Brand Finance values Viettel brand up to 5, 8 billion USD can be said to be the highest in the group’s development history and ranks number 1 in Vietnam.
Weaknesses
Regarding weaknesses, some of the main weaknesses that Viettel needs to overcome can be analyzed as follows.
Lack of uniformity in business activities
Despite investment and expansion, Viettel’s network scale in general does not meet current needs, and there is a lack of synchronization in business activities, leading to difficulties in operation, management, and labor productivity. Dynamics are not high and infrastructure is not modern, which also affects service quality.
Opportunities
Regarding opportunities, Viettel can grasp and take advantage of the following opportunities.
Government support
The Government is encouraging domestic enterprises with economic potential to expand investment and cooperation abroad to expand market share and gradually penetrate the international market after Vietnam joins the WTO.
The need for communication is increasing
Although the communications industry has developed very strongly, there are still many opportunities for Viettel, especially in some undeveloped countries that have close cooperation with Vietnam such as Laos and Cambodia.
Threats
Besides opportunities, Viettel also needs plans and solutions to face challenges such as:
High level of competition
Viettel is currently facing and suffering from fierce competition from domestic and foreign businesses in the same industry such as Vinaphone, Mobifone,…
The demand for diverse and high-quality services is increasingly high
Customer demand for service diversity and quality is increasingly high, this requires Viettel to constantly improve service quality. On the other hand, Viettel must lower prices to compete for market share, especially in the early stages of entering another country.
Issues of customs and traditions of the people as well as business laws and regulations in the host country
Adapting to and satisfying customers in another country, while competing with
Competitors operating in the host country are also an extremely difficult challenge when penetrating abroad.
Viettel’s SWOT analysis table
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Detailed analysis of Viettel’s business strategy
In its history of development and operations, Viettel has possessed great achievements such as:
- Top 15 fastest growing telecommunications enterprises in the world,
- Ranked 28th on the top 150 most valuable network operators in the world, with a brand value of 5.8 billion USD, ranked No. 1 in Southeast Asia and 9th in Asia
- “Best in Test” certification from the world’s leading telecommunications testing company Umlaut 2020
- Silver award for best new telecommunications product of the 2020 International Business Awards for super-fast data package ST15K
- Service Provider of the Year in Developing Markets 2009 and Best Mobile Data Service Provider Vietnam – 2019 (Frost & Sullivan)
- Silver award in the category “New Customer Service of the Year” in the 2014 Stevie Awards international award system for Ethnic Language Switchboard Service.
To achieve current success, Viettel has built and implemented its business strategy effectively and successfully. So what is Viettel’s business strategy?
Viettel’s business philosophy
Viettel’s business strategy philosophy includes 3 main business philosophies:
- Pioneering and breaking through in the field of applying modern and creative technology, offering solutions to create new, high-quality products and services, with appropriate prices to meet needs and the right to choose. of cutomer.
- Always pay attention and listen to customers as separate individuals to create increasingly perfect products and services with them.
- Bringing the best of Viettel abroad. Viettel was born from difficulties with the soldier’s spirit, so it is not afraid to go into areas with low “land rent”.
Viettel’s strategic business goals
For its strategic business goals, Viettel has set the following main goals.
To strive to complete the goal of becoming a key enterprise creating a digital society in Vietnam, achieving service revenue of 100 trillion by 2025, Viettel Telecom sets the goal of maintaining the number one position in mobile market share. Mobile and fixed broadband in Vietnam, by 2025, broadband and ultra-broadband Internet connections will cover 100% of households.
Besides, Viettel also aims to transform Viettel Telecom into a digital telecommunications enterprise, with No. 1 customer service and customer experience in Vietnam; Pioneering 5G technology and infrastructure to meet development opportunities in the 4.0 Industrial Revolution.
Viettel also has the goal of perfecting the digital service product ecosystem, bringing the proportion of digital service revenue equivalent to that of network operators in the region and the world; Focus on creating products and services; digitize sales activities, put customers at the center; Training a team of experts and managers with international certificates in business, management, engineering and information technology.
Viettel’s competitive advantage
To compete effectively in the market, Viettel possesses key competitive advantages such as:
- Creating product differentiation : For Viettel, creativity is a vital factor. The packages that Viettel offers to the market such as Tomato and Ciao all demonstrate the philosophy of “Caring – Innovator” (Sharing – Creativity) and aim to meet the different needs of customers.
- Preferential rates : Viettel has concretized the goal of bringing telecommunications to all Vietnamese people with preferential rates and many attractive promotions.
- Always customer-centric : A competitive benefit that makes Viettel successful is having a correct positioning strategy and business approach criteria “for customers first, for ourselves second”.
- Viettel not only provides what customers need but also creates customer needs, creates new products and lets customers know they need to use that service.
Viettel’s business strategy scope
To be competitive, the scope of Viettel’s business strategy is the market segments that this brand targets. In particular, Viettel focuses on customers and regions and geographies where products will be provided. From determining the strategic scope, the company will conduct research and develop products that suit customers’ tastes and needs.
When Viettel first entered the telecommunications market, it chose to sell cheap products and services for low-income people. This is a market segment with low competition but high potential.
Viettel has also achieved great achievements at home and abroad thanks to investing in telecommunications networks to remote areas and places without access to phone signals. Targeting such niche markets , while small, offers great potential.
>>Read more about market segments of other famous brands in the article : What is market segmentation? 4 common types of market segmentation
Viettel’s business strategy activities
Regarding Viettel’s strategic business activities, this brand has focused on developing and improving the following activities.
Research and development
Right from the beginning when it first participated in providing telecommunications services (in 2000), Viettel identified research and development activities as an important and key factor helping Viettel continuously innovate and continuously develop. During the development and business phase, Viettel invested about VND 4,500 billion in research and development activities each year.
To carry out the task of mastering technology and researching production, Viettel mainly chooses the do-it-yourself method, combined with partial technology transfer from partners that own component technologies and expert cooperation; Organize research apparatus abroad, then transfer research results back home in the form of specific products and crystallize intellectuals in a team of experts.
With the above viewpoint on technology research and technology transfer combined with determination, breakthrough and creative methods, Viettel has gradually mastered the process of researching and producing various types of military equipment and High-tech civilian, ready to perform and complete assigned tasks.
Technology
Regarding technical and technological activities in Viettel’s business strategy, the concept of technology is closely tied to the “latest” requirements. That is both a motto and an immutable requirement, a top priority in the development strategy.
Reality shows that, in the process of growing up, Viettel has always taken leaps and bounds, applying the world’s newest and most advanced telecommunications technology and promoting the movement of technical innovation initiatives, constantly expanding and Improve production and business efficiency. Mastering technology and doing it yourself is Viettel’s tradition.
Although Viettel is a latecomer in the field of telecommunications, Viettel always focuses on applying advanced information technology in production and business stages. From the early years of establishment to 1994, Viettel designed the first digital microwave lines, participated in building the largest broadband microwave line (140Mbps), and built the highest antenna tower in Vietnam at that time. hour (125m).
In recent years, Viettel has been the first enterprise to launch 4G and 5G services; At the same time, applying modern technology and managing production and business. Mobile, fixed, transmission, and internet equipment infrastructure systems all use international satellite ports, international fiber optic cables, and the latest equipment from famous manufacturers in the world such as: Alcatel, Ericsson, Siemens, Huawei… and regularly replace and upgrade to ensure serving all customer needs to meet the development of advanced science and technology in the world.
Currently, Viettel has a strategy and steps to “go ahead” in technology to be ready to integrate and keep pace with the flow of the 4.0 Industrial Revolution.
Human resources management
Regarding human resource management, Viettel promulgates solutions and policies to promote the roles and responsibilities of the entire group’s staff in promoting research strategies, mastering technology, and developing technology. Developing the latest technology Viettel’s way.
Viettel people, with their traditions, culture and creative habits, not only know how to absorb the quintessence of human telecommunications technology, but also know how to create new technology and export the latest technology to telecommunications markets. advanced communication.
In the process of recruiting talent, Viettel always focuses on choosing people who fit the corporate culture. Candidates are selected based on the criteria of having working skills and, most importantly, being compatible with their corporate culture. These are all quality employees, meeting the requirements that Viettel has set out.
In addition, screening of the workforce also takes place regularly. Partly it is to eliminate unsuitable people who do not meet job needs. Partly, it is for employees to know their weaknesses and develop them better if they do not want to be left behind in the race.
Viettel’s culture in human resource management includes the following criteria: high working spirit, high determination, sense of job completion, consistent with the values of life here… These criteria contribute part in recruitment, while also being guaranteed to complete the job better.
Marketing manager
Regarding Marketing management in Viettel’s business strategy, this brand has deployed its Marketing strategies according to the Marketing Mix 4P model .
Product
Regarding product strategy, Viettel has used its product diversification strategy and focused on improving product quality.
For the development of product diversity, Viettel currently has 9 prepaid packages and many accompanying utility services: Economy; Sea+; Tomato; Student; Hi School; 7Colors; Tomato Village; Tourist; Speak Sim package (for the blind),…
In addition, product quality is also measured from input to output for Viettel’s products and services, so first it is necessary to ensure that the input meets the correct standards and the service must be good. with the latest technology.
Price
Viettel has used a product pricing strategy to penetrate the market.
Penetration pricing is a marketing strategy used by businesses to attract customers to a new product or service by offering a low price compared to the market during the initial offering. Lower prices help a new product or service enter the market and attract customers from competitors. Market penetration pricing is based on the strategy of using a low initial price to attract more customers to a new product.
With the market penetration pricing strategy, all customers can access Viettel’s services. Viettel positions itself as a “popular” brand, so that even low-income or no-income groups such as students, rural areas, etc. can still use it – a capital customer file. Mobifone and Vinaphone did not invest much. This is the way the group deployed to attack and cover the entire market in the early days of its launch.
Distribution system (Place)
Regarding the distribution system, Viettel uses both widespread and exclusive distribution methods:
- Wide distribution : Viettel organizes a network of SIM agents in all localities across the country
- Exclusive distribution : in districts, depending on the level of population concentration, the company opens 1 or more Viettel exclusive branches and they only sell Viettel’s services and do not sell the services of any competitors. any.
Promotion mix (Promotion)
Viettel has focused on implementing advertising campaigns as well as attractive promotions in its mixed promotion activities.
Viettel’s brand promotion and communication activities have been carried out very successfully, increasing customer awareness of the Viettel brand in recent years. Viettel’s brand communication media mainly focuses on public relations and advertising activities.
Viettel’s billboards appear in many provinces and cities across the country. In order to spread and deepen the Viettel brand in the hearts of customers, a large-scale advertising campaign has been deployed in many locations in areas with a large number of past, current, and future customers. Use Viettel’s services.
Viettel also cooperates with celebrities to launch advertising films to increase its brand recognition. A famous advertising campaign of Viettel must be mentioned: “Viettel Cong Cong”. This brand has cooperated with singer Bich Phuong and football player Quang Hai.
With catchy music in the advertisement as well as a short, concise and easy-to-remember slogan: “Use is Contribution!” Add is Use!”, Viettel has succeeded in attracting customers and raising brand awareness.
Regarding promotions, promotions are held regularly with diverse and rich forms, bringing practical benefits to customers: free additional accounts when joining new networks, 50% card recharge promotion (1 twice a month), promoting new utility services such as 3G internet service, trial utility services,…
Summary
To become one of the strongest telecommunications corporations today, Viettel has built and implemented business strategies effectively. The main activities in Viettel’s business strategy include:
- Research and development
- Technology
- Human resources management
- Marketing manager
Hopefully through this article, you will learn more about Viettel’s effective business strategies and then refer to them to deploy appropriate strategies for your business.
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