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INTRODUCTION
1. The necessity of research
In market economies, the trend of globalization and international economic
integration, competition among enterprises are increasing. In such conditions, the
competitiveness manifests fight to ensure survival and development of products,
companies and national.
Vietnam is ongoing innovation policies towards liberalization of the economy.
Vietnam's telecom market will be large fluctuations in the direction of freer, more open
in the future. According integration roadmap there will have many mobile
communication company of many different economic sectors launched mobile
communication, many foreign telecom operators participate in the mobile
communication market in Vietnam by different ways to join. Never the mobile
communication market has developed strongly as the last few years and the level of
competition between service providers on the market is becoming increasingly.
In terms of new business and the environment, increasingly fierce competition
requires companies providing mobile communication services in Vietnam market to
operate non-stop innovation, enhance competitiveness, improve his high position in the
market in order to maintain market share and compete with not only domestic
companies but also to compete with the foreign companies will participate in providing
mobile communication services in Vietnam in the future near future.
Stemming from the above issues, the topic "Improving the competitiveness in
providing mobile communication services of Vietnam's telecommunications
companies" is meaningful practical reasoning and practical.
2. The objective of the study
- Clarify some theoretical issues of competitiveness in the provision of mobile
communication services, the need to improve competitiveness in the provision of
mobile communication services of telecommunications companies.
- Analyze and evaluate the competitiveness of the state providing mobile
communication services of a telecom company in Vietnam, comparing the strengths
and weaknesses of the provision of services between the companies together and find
out the problems to be solved in order to improve their competitiveness.
- Perspective and propose some solutions and recommendations to improve
2
competitiveness in the provision of mobile communication services of Vietnam
telecommunication company.
3. Object and scope of research
Study subjects are competitive in providing mobile communication services of the
company through considering the evaluation criteria and the factors affecting
competitiveness in the provision of mobile communication services of the
telecommunications company.
Scope of research: focus on analysis of evaluation criteria and factors affecting the
competitiveness of service providers 3 mobile information provider of mobile
communication services in Vietnam's largest (MobiFone, VinaPhone, Viettel), taking
into consideration certain extent with other companies. Baseline study period ranged
from 2005 to 2012.
4. Research Methodology
Topics using both qualitative research methods and quantitative research methods.
- Quantitative research: topics using statistics and surveys in the field of mobile
communication, such as revenue, number of subscribers, number of base stations, the
service dealer, market services and market growth analysis phan.vv... to evaluate the
competitiveness of the companies selected studies. In addition, subjects were 972
survey interviews clients are using mobile information services of the company and
consulted a number of experts to study the criteria for evaluating the competitiveness of
supply service companies.
- Qualitative research: topic analysis methods using case studies 3 service
providers VinaPhone, MobiFone and Viettel to shift research and development
competitiveness in the supply of products / services the company.
5. New contributions of the thesis
- Clarifying the concept of competitiveness of the company in providing mobile
communication services, the general criteria applied to assess the competitiveness of
businesses to determine the criteria for evaluating the competitiveness of businesses
providing services in mobile communication.
- Assessment of environmental change telecommunications industry, in the field of
mobile communication from monopoly to competition.
- Assess the strengths and weaknesses of the competitiveness of the three major
companies operating in the field of providing mobile communication services in
3
Vietnam (VinaPhone, MobiFone, Viettel) from two different aspects: assessment of
customers to use mobile communication services and evaluate the intrinsic capacity of
the company providing mobile communication services.
- Assess opportunities and challenges for companies in the context of removal
monopoly and opening the telecommunications market, provide direction and solutions
to improve competitiveness in the provision of mobile communication services of the
telecommunications company Vietnam.
6. Dissertation Structure
In addition to the Preamble, Conclusion, References list, Annex, the thesis
includes four chapters.
CHAPTER 1: OVERVIEW OF RESEARCH RELATED TOPICS
THESIS
1.1. Some of the study abroad
So far, the theory of competitiveness on world development trends in many
different schools and many different approaches.
Porter's Five Forces model was first published in the Harvard Business Review
magazine in 1979 to learn content elements to make a profit in business. This model,
often called the "Porter's Five Forces", is considered to be useful tools to understand
and effective source profits. More importantly, this model provides competitive
strategies to maintain or increase company profits.
In 1990, M. Porter announced his "Competitive Advantage of Nations". This book is
Porter research in ten countries leading economy. The book offers the first theory of
competitiveness based on the causes of productivity, whereby companies compete with
each other. Porter shows how traditional comparative advantages such as natural resources
and cheap labor was no longer a source of prosperity. The book also introduces the
"diamond" - a way to understand the competitive position of a country (or location) in the
current global competition and is an integral part of economic thinking international
business.
In the telecommunications sector, a number of studies as follows:
- Jean-Jacques Laffont and Jean Terole, Compatition in Telecommunications,
Massachusetts Intitute of Technology. In this book, the authors provide theoretical
4
model based on the assumption that the natural monopoly of the telecommunications
industry no longer reflects reality.
- Feng Li and Jason Whalley, Deconstruction of the telecommunications industry:
from value chains to value networks, Telecommunications Policy. In this study, the
authors conclude that some of the current changes in the telecommunications industry
is very progressive, and all companies need to reassess strategies and their market
position and the difficult decision to go forward.
1.2. A number of research projects in Vietnam
- In 2004, Tran Van Tung, author of the book "Competing economic and national
competitive advantage and competitive strategy of the company" issues mentioned in
economic competition, competitive advantage analysis of national strategy and
recommendations for companies competing in the Vietnam period is gradually
integrating world economy.
- In 2006, Vu Trong Lam published the book "Raising the competitiveness of
companies in the process of international economic integration." In this work, the
authors have codified some notion of the competitiveness of the company in the
country experience analyzing and improving international competitiveness of the
company situation analysis and competitive environment the legal framework of
competition in Vietnam.
Particularly mobile telecommunications sector, in recent years a number of research
projects are as follows:
- In 2006, Prof. Bui Xuan Feng has published the book "Managing
telecommunications business towards economic integration" After referring the matter
to business and general business administration telecommunications field
telecommunications business administration, the author refers to a number of theories
on competition and competitiveness in the field telecommunications and propose some
solutions in order to improve competitiveness for telcos.
- In 2007, Le Ngoc Minh in economics doctoral thesis "Development of the
company business business mobile communication services in Vietnam" presents the
theoretical development of the business of the company services of mobile
communication, situational analysis and set the direction and development of business
solutions for the company's business mobile communication services in Vietnam.
- In 2012, graduate student Tran Thi Anh Thu defended his doctoral thesis
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economy "Enhancing Competitiveness of Telecommunications Corporation Vietnam in
terms of Vietnam is a member of the World Trade Organization". In this work, the
author has pointed out the rationale for enhancing the competitiveness of companies,
real state enhancement of competitiveness of the Vietnam Posts and
Telecommunications and the solution for this problem.
1.3. Conclusions drawn from the literature review
1.3.1. The consensus view of competition in the provision of mobile
communication services of telecommunications companies
- In the theoretical framework of research: most previous studies and analysis
using two models are studied diamond pattern and five forces model of Michael E.
Competitive Porter. The model has put the company in a particular industry
environment, analyzing the factors affecting the competitiveness of companies in the
provision of services and the impact of environmental competitiveness of the company.
- Regarding research methods: previous studies have combined both qualitative
research methods and quantitative.
- Regarding the solution: Towards improved criteria for measuring the
competitiveness of the telecommunications company providing services in mobile
communications and proposals to create a healthy competitive environment.
1.3.2. The point to further research on competition in the provision of mobile
communication services of telecommunications companies
- Criteria for evaluating competitiveness in providing mobile communication
services of telecommunications companies.
- The transformation of telecommunications environments, especially mobile
communications sector from monopoly to competition and especially after Vietnam
joined the WTO.
- The role of government in enhancing the competitiveness of Vietnam's telecom
companies, particularly in the provision of mobile communication services.
- The response and adaptation of telecom companies in Vietnam with the change
of environment.
- Orientations and measures to improve competitiveness in the provision of mobile
communication services of the telecommunication company Vietnam.
6
CHAPTER 2: THEORETICAL BACKGROUND ON
COMPETITIVENESS IN PROVIDING SERVICES OF MOBILE
COMMUNICATION TELECOMMUNICATIONS ENTERPRISES
2.1. Characteristics of mobile communication services and service suppliers of
mobile communication
2.1.1. Characteristics of mobile communication services
- The quality of mobile communications services depends on many factors.
- Mobile information services have high mobility.
- Mobile communication service with enhanced security.
- Charges mobile communication compared with other telecommunications
services.
- Product of mobile communication services nature areas.
2.1.2. Characteristics of provide information services for mobile telecommunications
company
- Costs of major capital investments.
- Technology is leading.
- The level of competition in the sector.
- Humans play an important role.
- The process of service consumption associated with the production process.
- The process of transmitting information is the process of establishing multi-
dimensional relationship.
- Timeliness of mobile communication services.
2.2. Competitiveness in providing mobile communication services
2.2.1. Competitiveness
Competitiveness is the possibility that businesses can maintain their position in the
long-term and sustainable competitive market by creating products / services are of
high quality, reasonable price, to sell / supply and convenience obtained desired rate.
2.2.2. Competitiveness in providing mobile communication services
Competitiveness in providing mobile communication services of
telecommunications companies is the ability of telecommunications companies to
maintain their position in the long-term and sustainable competitive market by creating
7
the mobile communication services with consistent quality, reasonable rates, providing
a convenient way and earned a profit target.
2.2.3. The need and the role of enhancing competitiveness in providing mobile
communication services of telecommunications companies
For companies providing mobile communication services, competitive creative
opportunities and pressures. Therefore, to improve competitiveness in providing
information services and mobile telecommunications company in the market economy
now has an active role:
First, the capacity to create competitive pressure on telecom companies must
constantly search for creativity, improved production methods and management
organization providing services, innovative technologies, applied scientific and
technical progress, developing new services, increase productivity, lower the cost of
services.
Second, for consumers, improving competitiveness creates a continuous pressure
on prices, forcing companies to lower service charges for service to sell quickly.
Third, for the economy, improving the competitiveness of companies enlivened
the economy, promote growth and create pressure on companies and industries to use
resources effectively resources, thereby contributing to overall saving of resources in
the economy.
Fourth, foreign relations, enhance the competitiveness of the company promote
market expansion in the region and the world, looking for new markets, joint ventures
with foreign companies, through heavily involved in the division of labor and
international economic cooperation, enhanced exchanges of capital, labor, science and
technology with other countries in the world.
2.3. Criteria for evaluating competitiveness in providing mobile communication
services of telecommunications companies
The different ways to assess the competitiveness of businesses around the
following criteria: market share, revenue, and profit margins, financial management
practices, company reputation, the the management team and skilled work force,
quality, price, service diversification, distribution systems... Applying the above
criteria, the proposed thesis competency assessment criteria competition in the
provision of mobile communication services of telecommunications companies,
including:
8
- Quality of products / services.
- Charges for product / service.
- The system of distribution of products / services.
- The difference of products / services.
- Information and promotion.
- Brand and reputation of the product / service.
2.4. The factors affecting the competitiveness of service providers of mobile
information Telcos
2.4.1. External factors
2.4.1.1. The elements of macro environment
- Political Environment - law: including the statutes, rules and activities of the state
agencies that affect the company's operations.
- Cultural environment - social factors including population and income, culture
and environment.
- Economic Environment: including economic growth, national economic policy
and the business cycle.
- Environmental technology: The process of technological innovation is considered
as the process of system development, is the time to turn new ideas into products or
services can be sold on the market.
- The natural environment: including natural resources and economic
infrastructure.
- International Environment: trends of globalization, trade liberalization.
2.4.1.2. Factors in the environment sector
- Pressure of providers: the number and size of suppliers, the ability to replace the
product / service providers, information providers.
- Pressure from customers: the control through competition in a purchase decision.
- Competitive pressure from potential rivals: depends on the attractiveness of the
industry, the barriers to entry.
- Competitive pressures from substitute products: the ability to meet the needs of
similar products / services current.
- Competitive pressure from existing competitors: industry conditions, the
structure of the industry, the barriers to retreat.
9
2.4.2. Internal factors
The internal factors are the factors arising from within the enterprise, affecting the
consolidation and improve the competitiveness of enterprises, such as:
- Financial capacity: the financial situation of the company shows the company's
strength in competing.
- Production capacity: the ability to create products / services are of high quality,
low price and production scale to meet the needs of the market.
- Human resources: people is an important factor determining the existence and
development of the company.
- Marketing: system sales and marketing activities deliver products / services to
the customer, the best meet customer needs.
- Activities Research and Development plays an important role in the development
and application of new technologies in time to create a competitive advantage in the
marketplace.
- Organizational capacity and corporate governance: the combined efforts of the
common man in the organization and better use of the wealth of the organization to
achieve the organization's overall goals and objectives of each people wisely and most
effectively.
2.5. Experience enhanced competitiveness in the provision of mobile
communication services in several countries around the world
On the basis of experience introducing enhanced competitiveness of the Korean
telecommunications company, and China, the thesis has identified a number of lessons
reference to Vietnam telecommunications company providing services in the mobile.
That is:
Firstly: Improving the quality of service and customer service.
Secondly organization management model flexible and science.
Thirdly: Increase investment in research and development.
Fourth: Update, technological innovation.
Fifthly: Construction company culture distinctive.
Sixthly: Having strategic market development, proper customer.
10
CHAPTER 3: COMPETITIVENESS IN PROVIDING
INFORMATION SERVICES OF VIETNAM MOBILE
TELECOMMUNICATIONS COMPANY
3.1. Overview of the market and the companies providing mobile communication
services in Vietnam
3.1.1. Overview of market development
1993, with the introduction of the first mobile networks - MobiFone, Vietnam's
mobile market is formed. VMS - MobiFone choose GSM technology. In turn, then, the
following mobile network launched as VinaPhone (1997), Viettel (2004) also chose
GSM technology. Even as HT Mobile after some time pursuing CDMA technology as
S - Fone to finally switch to GSM with a new name Vietnamobile. The market shift
from monopoly to competition. Besides, customers also demand continued to increase.
Initially only the conventional voice services, short messaging, multimedia
messaging,.... And now, mobile data services are fast growing trend.
It can be said, competition was quite exciting on the telecommunications market
in Vietnam with many new service providers and policy rates more reasonable, more
attractive to customers.
3.1.2. Overview of companies providing mobile communication services in Vietnam
- Stage appearance (1993-1998): In 1993, the network launched MobiFone uses
GSM technology and service providers to deploy mobile communications in May
8/1993 in Hanoi, HCM City in 1994 and continues to expand across the country.
In 1996, Vinaphone opened and began providing services. The agency's
management is Vinaphone Telecom Services Company (GPC), is a 100 % owned
company of VNPT investment and accounting mechanisms depend VNPT.
- Transition period (1998 - 2001): In 2000, the General Post Office Vishipel
allows setting satellite earth stations - TTDD Inmarsat International and licensed to
provide Inmarsat services. But so far, the company has not officially active.
- From 2001: In Vietnam, the market for mobile communication services has
made the company to join the business as: Saigon Postel, Viettel, EVN, HTMobile.
3.1.3. Overview of the competition in providing information services and mobile
telecommunications company Vietnam
The following table shows the change of the share company providing mobile
11
communication services in Vietnam in the 2005-2012 period:
Table 3.1: Market share and market share growth of the mobile network in Vietnam
during 2005-2012
Unit: %
Mobifone Vinaphone Viettel other
networks Year
Market
share +/- %
Market
share +/- %
Market
share +/- %
Market
share
2005 36 49 11 4
2006 31 -5 -14 33 -16 -33 30 19 173 6
2007 28 -3 -10 25 -8 -24 32 2 7 15
2008 29 1 4 21 -4 -16 37 5 16 13
2009 27,15 -2 -6 27,19 6 29 33,82 -3 -9 11,84
2010 29,11 2 7 28,71 2 6 36,72 3 9 5,46
2011 17,9 -11,21 -38,51 30,07 1,36 4,74 40,45 3,73 10,16 11,58
2012 18,45 0,55 3,07 30 -0,07 -0,23 40 -0,45 -1,11 11,55
Source: [3]
MobiFone market share almost no variation in the years from 2006-2010.
However, between 2011 and 2010 with the spikes, the market share in 2011 decreased
11.21 %, down 38.51 %, respectively compared to 2010. In 2012, the market share of
MobiFone have increased but not significantly, increased by 0.55 % market share (up
3.07 % respectively).
Market share declined most Vinaphone. In 2006, the net loss of 16 %
(corresponding to 33 % loss of market share compared to 2005). However, the last 3
years, the market share of Vinaphone continuously increasing: in 2009 increased 6 %, 2
% in 2010 and 2011 increased by 1.36 %. To 2012, VinaPhone has been a slight
decrease in market share, lost 0.07 %.
Strong rise in the Viettel network. In 2005, when a new entry is more than 1 year,
this network only accounts for 11 % market share. In 2006, Viettel rising to 30 %
market share. In recent years, the pace of growth has slowed Viettel. However, Viettel
is the biggest network in the market; VinaPhone is the second largest operator with 30
% and MobiFone ranked 3rd with 18.45 % market share. The only network remaining
11.55 %. Thus, the largest company in the market including: company information
VMS, telecommunications company Vinaphone and military telecom company Viettel.
12
3.2. The internal factors affecting competitiveness in the provision of mobile
communication services of the Vietnam telecommunication company
Table 3.3: Table assess the intrinsic capacity of Viettel
Strengths Weakness
- The culture of quality.
- Large market.
- Resources for young and dynamic.
- Good corporate image
- Services and Distribution.
- New Products.
- Good CEO.
- Competitive service rates.
- Field TTDD Party and State have been identified "priority development", which is a
favorable condition for the renewal and development of the company.
- Vietnam is considered as a potential market, the pace of economic growth, population.
This is a big advantage for companies operating in the telecommunications sector in
general and in particular Viettel.
- Viettel Telecom network covering all provinces and become providers of
telecommunications services and the nation's largest growing brand.
- The financial activities of the company are relatively healthy and transparent.
- The company has built a company culture solidarity, overcoming difficulties and
propose innovative solutions to accomplish tasks.
- The investment is
concerned, but
despite a lack of
uniformity has led to
certain difficulties in
operating the
network.
- The economic crisis
reduced demand for
the company's
services.
- Quality of service is
limited
- Market
segmentation unclear.
- Parts weak financial
management.
Table 3.5: Table assess the intrinsic capacity of VinaPhone
Strengths Weakness
- Business major, long-standing, familiar image,
prestige.
- Available traditional customers. Direct contact with
customers to quickly grasp the needs and tastes of
customers.
- The advantage of receiving modern technology,
offering new services, diversified and high quality.
- Network infrastructure both large national backbone
network and local access networks. Network-wide
delivery service.
- There are good international cooperation.
- Our team of experienced workers, solidarity possible.
- Often a pioneer in offering new services to attract
attention and customers.
- Quality of current services better than competitors.
- Diversified services and advantages in providing full
service, one-stop shop for customers, satisfy customer
needs large (private network settings).
- The bloated management structure, large-scale,
dependent accounting inflexible.
- The quality of a number of low-quality services.
- The investment costs of large infrastructure network.
Web development by administrative area, spreading
wasteful, difficult to upgrade.
- Charges for some services. Charging method less
attractive customers.
- Sales cumbersome procedure.
- Limited investment for the advertising, promotion.
Advertising forms less attractive.
- Not enough attention to market research, competitor
analysis. No business strategies to adapt quickly to
market changes.
- This type of service is not much value, service poor
information content.
- Awareness and business experience in the limited
market mechanisms.
13
- Financial strength, strong funding of organizations
and individuals at home and abroad.
- Large labor force, lack of high- level experts in
economics and engineering.
Table 3.8: Table assess the intrinsic capacity of MobiFone
Strengths Weakness
- Telecommunication network system large.
- The distribution system is well organized.
- The level of advanced technology.
- Strong financial position.
- High-level management, advanced management technology.
- Quality of service possible.
- Weak network system in the remote
- Higher rates than competitors.
- Not focused on market development areas and
remote.
3.3. Rating competitiveness in providing mobile communication services of Vietnam
telecommunications company through client interviews investigation
3.3.1. Research Methodology
After comparing, for comparison, that the author of the Parasuraman SERVQUAL
scale and colleagues have similarities with six evaluation criteria competitiveness in the
provision of mobile communication services mentioned above. SERVQUAL Scale
consists of 10 components: (1) Tangible Media, (2) Trust, (3) Response, (4) Capacity
serving, (5) Access, (6) India need; (7) Information, (8) Trust, (9) Safety; (10)
Understanding.
Figure 3.8: SERVQUAL Model
Source: [47] [48]
Although the model is only assess the quality of services but this scale covering
almost every aspect of the service. In addition, the competitiveness of enterprises in the
14
supply of power is reflected in the loyalty of customers now. Model of customer loyalty
mobile communication services in Vietnam have been two German authors on
America, Bui Nguyen Hung proposed.
Figure 3.9: Model of the customer loyalty of mobile communication services in Vietnam
Source: [23]
From this model, the authors have given the scale of customer loyalty in the use of
mobile communication services of telecommunications companies in Vietnam.
Combining these two scales together with the National Technical Regulation on quality
phone service over mobile network communications ground (NTR 36:2011 / MIC), the
authors give scale to assess the capacity addition competition in the provision of mobile
communication services of telecommunication companies. Then, the author has
developed questionnaires, conducting surveys and collected 972 questionnaires.
3.3.2. Rating competitiveness in providing information services and mobile
telecommunications company Vietnam
3.3.2.1. Quality of service
Chart percentage of customer evaluation of service quality
0,00%
20,00%
40,00%
60,00%
80,00%
100,00%
120,00%
Clear voice
While voice calls
You feel secure
The value-
Make sure the
The operator
Salespeople are
The results
Sales staff
Scale
Rate
Totally disagree
Disagree
Neutral
Agree
Totally agree
Figure 3.12: Chart percentage of customer evaluation of service quality
Source: survey data
In 2011, the Department of Quality Management of ICT MIC has officially
LOYAL
SATISFACTORY BARRIERS
The call
quality
Price
structure Value
Added
Services
Convenient Customer
Service
Loss New
Resilience
New
Joining
The attractiveness
of other networkCustomer
Relations
H11 H12 H13 H14 H15 H21 H22 H23 H24 H25
H3
H5
H4
15
announced the results of testing the quality of the service in 2011 mobile
telecommunication network of 3 ground Viettel, MobiFone and VinaPhone.
Table 3:11: The results measure the quality of telephone service in the mobile
telecommunication network ground Vinaphone, MobiFone and Viettel 2011
No. Items QCVN 36 MobiFone Vinaphone Viettel
1 Call ratio is set successfully ≥ 92% 99,77 % 96,38 % 99,50%
2 The rate dropped calls ≤ 5% 0,23 % 1,43 % 0,23%
3 Voice quality (voice quality point average) ≥ 3 points 3,80 points 3,64 points 3,94 points
4 Accuracy burn rate:
- The rate of false calls were recorded charges ≤ 0,1% 0,053 % 0 % 0,017 %
- The rate of talktime charges were recorded
wrong ≤ 0,1% 0,003 % 0 % 0,005 %
5 Call rate charges, billing errors ≤ 0,01% 0 % 0,0063 % 0,0042 %
6 The availability of services ≥ 99,5% 99,832 % 99,871 % 99,995%
7 Complaints about the quality of customer
service (the customer complaints nai/100 / 3
months)
≤ 0,25 0,0051 0,0037 0,0002
8 Feedback of customer complaints (complaints
ratio reply in writing within 48 hours from the
time of receiving the complaint)
100% 100 % 100 % 100%
9 Customer support services:
- Time to provide customer service support by
phone 24 hours a day 24 hours a
day 24 hours a
day 24 hours a
day
- Percentage of calls to customer service support
and accounting for successful circuit receives
signals of telephone operators answer in 60
seconds
≥ 80% 98,11 % 93,87 % 97,47%
Source: [20]
3.3.2.2. Charges for services
Chart review of rate contract customers on service charges
0,00%20,00%40,00%60,00%80,00%
100,00%120,00%
Connection
costs are
Charges for
such calls is
How to
charge per
You always
get the
In case you
have lost or
Method of
payment
Scale
Rate
Totally disagree
Disagree
Neutral
Agree
Totally agree
Figure 3:16: Chart review of rate contract customers on service charges
Source: survey data
16
Chart of the assessment rate prepaid customers on service charges
0,00%
50,00%
100,00%
150,00%
The cost
of buying
Charge
current
How to
charge per
When
necessary
Call
duratio
n
Tim
e to
new
When
trying to
Scale
Rate Totally disagree
Disagree
Neutral
Agree
Totally agree
Figure 3:20: Chart of the assessment rate prepaid customers on service charges
Source: survey data
3.3.2.3. Distribution system service
Chart percentage of customers rated the service distribution
system
0,00%
50,00%
100,00%
150,00%
Stores
system-w
ide
transactions
convenient
Tim
es
operation of
the current
store is very
The shop
currently
trading as a
bridge
According to
you, the
salesperson'
s suppliers
According to
customers,
sales staff
is qualified
The service
providers
have a
variety of
Scale
Rate
Totally disagree
Disagree
Neutral
Agree
Totally agree
Figure 3:24: Chart percentage of customers rated the service distribution system
Source: survey data
3.3.2.4. The services differentiated
Chart percentage of customer evaluation of service differentiation
0,00%
20,00%
40,00%
60,00%
80,00%
100,00%
120,00%
Mobile
Network
customers
Services
you
choose to
Services
you select
legacy
Services
customers
preferred
Scale
Rate Totally disagree
Disagree
Neutral
Agree
Totally agree
Figure 3:28: Chart percentage of customer evaluation of service differentiation
Source: survey data
In fact, the authors also studied, comparing the network's service pack 3 was
investigated and the following summary:
17
Table 3:16: The service pack of Viettel, Mobifone and Vinaphone to 05/2012
Products Viettel Mobifone Vina Phone
Sea+
Economy
Mobicard
Mobi365
Vinacard
Vina Text
Tomato
Sinh viên
Mobi 4U
MobiQ
Vina Daily
Vinaxtra
Hi School MobiZone Vina365
Happy Zone - Isurf
Ciao - MyZone
Prepaid
Tourist - Union Officials
-
-
Basic+
-
-
MobiGold
TalkEZ
EZCom
VinaPhone
Postpaid
Family
VIP
Corporate
-
-
Mbusiness
Mfriend
Mhome
-
-
iTouch
EZCom
VIP
Colleague
Family
Source: [21] [24] [27]
Results in the table above shows, the network has Vinaphone package for customers
to use the most, and No. 2 is Viettel ranked No. 3 in the final MobiFone company.
However, considering the diversity of the services Vinaphone head but beware of the
uniqueness and effectiveness of the services they have superior MobiFone 2 other
companies. Overall, customer reviews are correct when the network is too small to
supply the package and market the unique differences of the package is less.
3.3.2.5. Information and promotion
Chart percentage of customer evaluation of information and
promotion of the network
0,00%20,00%40,00%60,00%80,00%
100,00%120,00%
The
information
relating to
The service
providers
are more
The picture
book
introduces
Scale
Rate
Totally disagree
Disagree
Neutral
Agree
Totally agree
Figure 3:32: Chart percentage of customer evaluation of information and promotion of
the network
Source: survey data
18
3.3.2.6. Services brand and reputation of the company
Chart percentage of customer evaluation of brand and
reputation VinaPhone, MobiFone and Viettel in service
provision
0,00%50,00%
100,00%150,00%
The
brand
Slogan
of
You can
associat
Network
service
Scale
Rate Totally disagree
Disagree
Neutral
Agree
Totally agree
Figure 3:36: Chart percentage of customer evaluation of brand and reputation
VinaPhone, MobiFone and Viettel in service provision
Source: survey data
Besides the synthesis and analysis of evaluation criteria competitiveness in
providing public services of all three companies, the authors also have separate
individual companies and general assessment of client capacity competition in the
supply of each company diich. Since then, with the evaluation board competitiveness in
providing mobile communication services of each company as follows:
Table 3:20: Competitiveness in providing mobile communication services
MobiFone, VinaPhone and Viettel on customer reviews
Unit: Point
Criteria MobiFone VinaPhone Viettel Leading
Quality of service 3,765 3,717 3,685 MobiFone
Charges for services: postpaid 1,517 1,867 1,085 VinaPhone
prepaid 2,578 2,093 3,119 Viettel
Distribution system service 3,658 3,678 3,828 Viettel
The differentiated services 3,500 3,233 3,402 MobiFone
Information and promotion 3,787 3,644 3,745 MobiFone
Brand and reputation services 3,879 3,833 3,970 Viettel
Source: survey data
In general, the evaluation of our customers, the competitiveness of the three
services company providing leading mobile communications market Vietnam is
relatively high. The evaluation criteria of companies do not differ significantly and are
over 3 points. Private service charges indicator reached a low point and there is a
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significant difference: the postpaid service charges, but VinaPhone highest scores but
lower than 2 points, while the rate prepaid service, Viettel leads first with a score
greater than 3.
However, in order to improve their competitiveness, companies need to pay
attention to issues such as: (1) Make sure the conversation is the customer's call being
dropped circuit, (2) Resolve rapid customer complaints, (3) Solving customer
complaints to the situation, logical, (4) Quick fix when communications failures; (5)
Reduce the cost of subscription month for postpaid subscribers; (6) reduced call costs,
(7) Increase in promotions, discounts for postpaid subscribers, (8) freight invoice report
monthly postpaid subscribers need clear, accurate, (9) for prepaid subscribers, the
operator call charges to debit the customer's exact; (10) process and procedures for
transfer of services to ease, simpler; (11) Keep your balance in the customer account
type conversion services; (12) Raising the level of tellers; (13) sales skills Training for
tellers; (14) Make clear the difference between the types of services; (15) Provide
services to meet customer requirements; (16) Provide services of legacy good
characteristics, preferred customers, choice, (17) Creation of special services to meet
the different market segments, (18) Diversification of services of the company (19)
provide books, beautiful pictures introduction services, eye catching, (20) Get the
customer's interests in mind is that the supply of services.
3.4. Overall evaluation of the competitiveness of Vietnam telecommunications
company providing services in mobile communication
3.4.1. Strengths
- Scale and network coverage increasingly broad and deep.
- Along with the promotion of installing additional base stations and coverage,
companies providing mobile communication services has not stopped competing,
racing boost subscriber growth.
- Flexible tariff policy, with diverse services and customer oriented. The telecom
companies are scrambling to reduce rates to entice customers and develop new
customers.
- The telecommunications company also continuously launched many different
packages to best meet customer needs.
- Customer care is increasingly being emphasized. The customer care is done in 3
phases: before, during and after sale.
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3.4.2. Weakness
- The management of State for telecommunications companies that are
insufficient.
- The three telecommunications companies are state-owned enterprises, so when
making the investment, expanding foreign... often time consuming and procedures for
approval, reports state agency in charge.
- The company growth and uneven development. Viettel is the speed of the
company's largest development subscribers with wide coverage and the deepest.
- Quality of service is not stable.
- Telecommunications market grows too hot, the telecommunications companies
are racing to increase subscribers, subscriptions run while investing for the network
infrastructure has not kept pace leading to congestion still occurs.
3.4.3. Cause
- Due to the nature of the field of mobile communication: characteristics provide
mobile communication services of the company depends on the residential status of the
economy.
- The management mechanism is still insufficient: all three major companies
providing mobile communication services above the current active form of 100 % state-
owned, so the investment management, cost Government charges lead to difficulties for
companies active in the development and market expansion.
- Routine use of telecommunications services, internet in Vietnam is increasing but
still low.
- The company imbalance in strategic long- term business development:
expression of growth in the market share gap and large fluctuations.
- The analysis and forecasting of the company is not good, is the cause of the
decision of the board of the company is not close to the real situation of the market.
- There is no solution to increase service revenues explicitly: most, businesses are
not out of the problem subscriber should develop long -term strategies for development
services have not been paying attention.
- The staff and employees of the company have not been trained in all copies and
synchronize the various local.
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CHAPTER 4: DIRECTION AND CAPACITY BUILDING SOLUTIONS
IN THE COMPETITIVE SERVICE SUPPLY MOBILE
TELECOMMUNICATIONS COMPANY OF VIETNAM
4.1. The development of Vietnam's telecommunications company providing services
in mobile communication next time
4.1.1. Opportunities and challenges for Vietnam telecommunications company in
providing mobile communication services in the near future
4.1.1.1. Development trends of the market
- ARPU decline of the network.
- Declining voice revenues, business opportunities from mobile data services.
- The emergence of a growing number of smartphone and tablet line, these devices
will create new habits for mobile users and generates data traffic is growing.
- The start shifting from voice services to data services embodied in the new habits of
consumers and as well as a new revenue source for operator.
4.1.1.2. Opportunities for Vietnam Telcos
- Access to capital investment, engineering, technology and management experience
new conditions modernized network, expand services, improve the quality of the team...
- Expand overseas market of the company is made easier.
- Must be regularly renewed both in service delivery and organizational models,
management thinking...
- Favorable opportunities for companies to increase sales, expand markets,...
- Easily accessible with new technologies, accelerate application deployment of new
services, high quality, attract customers,...
4.1.1.3. Challenge that the Vietnam telcos may face
- Competition will become increasingly fierce.
- Interconnection charges between mobile and fixed if not timely controlled, will
continue to be detrimental to the fixed network, affecting the convergence of fixed phase -
Mobile - Internet - upcoming TV.
- The company must always renew the organization and management to adapt to
improve performance.
- The training and raising the level of the officials and employees must be done
methodically, efficiently.
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- The phenomenon of brain drain.
- The telecommunications industry companies will have to apply multiple standards,
international standards, while incentives and state subsidies cuts.
4.1.2. The development of the telecommunications sector in Vietnam in the coming time
- Development of market orientation: ensuring telecommunications market towards
sustainable development quality and efficiency; developing internal resources associated
with international cooperation; restructured markets.
- The network development: promoting the development of broadband access
networks to the household; capacity transmission system long distance and international
telecommunication networks developed by individual agencies organization.
- The development of services: development of new telecommunications services in
accordance with the trend of convergence of technology and services, reduce costs, lower
costs, improve service quality.
- The direction of technological development: development of advanced technology
applications, modern, efficient use of telecommunication resources, promote the
application of telecommunications technology environmentally friendly, energy saving.
- The master plan and use of telecom resources: ensure the planning, allocation and
transfer of public telecommunications resources, fair and transparent application of market
mechanisms such as auctions, contests, allows transfer of the right to use, deploy mobile
telecommunications services next-generation broadband.
4.2. Solutions to improve competitiveness in the provision of mobile communication
services of the telecommunication company Vietnam
- Improving service quality: focus on developing infrastructure to ensure the ability to
respond to large numbers of subscribers and expand coverage to minimize the possibility
of dropping out, to ensure voice quality and boosting development of content services,
value-added mobile network.
- Expand market and brand development: Promote market research; improve ad
performance, promotion, media operations, direct marketing activities, build and
standardize synchronously, consistent brand identity systems, systems and standards in
active form all contact with the outside; diversified customer care program.
- Improving the organizational structure of investment companies and human
resource development: considering plans to set up a joint stock company affiliated to the
services provided in the course of providing services to customers; building and develop
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corporate culture, diversity training forms, special forms of self- promoting; research
building management systems and resource sharing knowledge, building capacity
requirements standard capacity of target groups to develop core competency groups,
strengthening innovation team and the organization and operation of the training facility.
- Improved service delivery process: encouraging process improvement initiatives to
provide services; improve service delivery process synchronization, closed, construction
and implementation of the quality management services, construction and implementation
of the sales process, building process resolve customer complaints.
- Research and development investment networks and new services: decentralization
of investment management, promoting autonomy in investment activities, strengthen
inspection and supervision; overcome investment spread, focused on developing new
services, improving the system of regulations and guidance research and development
activities, building strong relationships between supply parts to the research department,
the formulate and implement good programs key science and technology.
- Strengthening cooperation and international investment: research strategy and plans
for the development of international cooperation, strengthen multilateral cooperation,
actively participate in the organization of economic activity, engineering, training, network
expansion investment, business mobile communication services in foreign markets.
- Synchronization and standardized management mechanism, financial regulations
and network planning: enhanced coordination between different levels of management,
advising agencies to direct such operator determined, tasks to ensure progress to intensify
the inspection, testing and monitoring mechanisms and evaluation mechanism innovation
of financial management, improving financial regulation.
CONCLUSION
During the period of international economic integration today, when Vietnam became
an official member of the WTO, competition issues, especially in the competitive field of
mobile communication has become fierce and aggressive. That fact requires
telecommunications companies to innovate organization or business to suit the context of
the times and trends. The experience of the reference telcos around the world, as well as a
baseline study for proposed solutions " Improving competitiveness in the provision of
mobile communication services of telecommunications companies in Vietnam" is essential
24
to ensure the telco Vietnam maintain competitiveness in the provision of services, and
adapt to the context of the new economic trends.
During this research, the authors looked at the document, investigate customer
interviews, expert consultation under the guidance of science teacher guidance. As a result,
the thesis answers the question about the problem: (1) competitiveness and
competitiveness in the provision of mobile communication services be?, (2) Features
primarily of mobile communication services and service suppliers of mobile
communication, (4) factors affecting the competitiveness of Vietnam telecommunications
company providing services in mobile communication?, (4) the criteria for evaluating the
competitiveness of companies in the provision of mobile communication services?
Through the investigation of secondary data and interviews with 972 customers using
mobile information service company of three major service providers in Vietnam market is
VinaPhone, MobiFone and Viettel, the author has set up the comprehensive picture of the
competitiveness landscape in providing information services to mobile telecom company
in Vietnam. The author points out the strengths and weaknesses of the overall
competitiveness of all three companies as well as its own internal capacity of MobiFone,
VinaPhone and Viettel in the provision of mobile communication services. Combined with
the theoretical framework outlined in Chapter 2, 7 groups stated solution: Improve service
quality, expand market and brand development of the company; Improving the
organizational structure of investment companies and human resource development;
Improved service delivery processes, research, investment in developing networks and
services and to boost investment cooperation and international synchronization and
standardization management mechanisms, financial regulations and network planning to
improve the competitiveness of these companies in the future. In addition, the authors also
propose such government created a legal framework ventilation, improve the business
environment, abolished some taxes unreasonable, uniform orientation, planning,
monitoring to meet the development needs of the economy and society, to create a healthy
competitive environment.
The results of this study if the practical application of information services provided
by the mobile telecommunications company Vietnam will create favorable conditions for
the Vietnam telecom companies enhance their competitiveness in the supply mobile
communication services, maintain its position in the domestic market, carving out a niche
overseas markets.
