1 2

competitiveness in the provision of mobile communication services of Vietnam

INTRODUCTION

telecommunication company. 1. The necessity of research 3. Object and scope of research In market economies, the trend of globalization and international economic Study subjects are competitive in providing mobile communication services of the integration, competition among enterprises are increasing. In such conditions, the company through considering the evaluation criteria and the factors affecting competitiveness manifests fight to ensure survival and development of products, competitiveness in the provision of mobile communication services of the companies and national. telecommunications company. Vietnam is ongoing innovation policies towards liberalization of the economy. Scope of research: focus on analysis of evaluation criteria and factors affecting the Vietnam's telecom market will be large fluctuations in the direction of freer, more open competitiveness of service providers 3 mobile information provider of mobile in the future. According integration roadmap there will have many mobile communication services in Vietnam's largest (MobiFone, VinaPhone, Viettel), taking communication company of many different economic sectors launched mobile into consideration certain extent with other companies. Baseline study period ranged communication, many foreign telecom operators participate in the mobile from 2005 to 2012. communication market in Vietnam by different ways to join. Never the mobile 4. Research Methodology communication market has developed strongly as the last few years and the level of Topics using both qualitative research methods and quantitative research methods. competition between service providers on the market is becoming increasingly. - Quantitative research: topics using statistics and surveys in the field of mobile In terms of new business and the environment, increasingly fierce competition communication, such as revenue, number of subscribers, number of base stations, the requires companies providing mobile communication services in Vietnam market to service dealer, market services and market growth analysis phan.vv... to evaluate the operate non-stop innovation, enhance competitiveness, improve his high position in the competitiveness of the companies selected studies. In addition, subjects were 972 market in order to maintain market share and compete with not only domestic survey interviews clients are using mobile information services of the company and companies but also to compete with the foreign companies will participate in providing consulted a number of experts to study the criteria for evaluating the competitiveness of mobile communication services in Vietnam in the future near future. supply service companies. Stemming from the above issues, the topic "Improving the competitiveness in - Qualitative research: topic analysis methods using case studies 3 service providing mobile communication services of Vietnam's telecommunications providers VinaPhone, MobiFone and Viettel to shift research and development companies" is meaningful practical reasoning and practical. competitiveness in the supply of products / services the company. 2. The objective of the study 5. New contributions of the thesis - Clarify some theoretical issues of competitiveness in the provision of mobile - Clarifying the concept of competitiveness of the company in providing mobile communication services, the need to improve competitiveness in the provision of communication services, the general criteria applied to assess the competitiveness of mobile communication services of telecommunications companies. businesses to determine the criteria for evaluating the competitiveness of businesses - Analyze and evaluate the competitiveness of the state providing mobile providing services in mobile communication. communication services of a telecom company in Vietnam, comparing the strengths - Assessment of environmental change telecommunications industry, in the field of and weaknesses of the provision of services between the companies together and find mobile communication from monopoly to competition. out the problems to be solved in order to improve their competitiveness. - Assess the strengths and weaknesses of the competitiveness of the three major - Perspective and propose some solutions and recommendations to improve companies operating in the field of providing mobile communication services in

3 4

Vietnam (VinaPhone, MobiFone, Viettel) from two different aspects: assessment of model based on the assumption that the natural monopoly of the telecommunications

customers to use mobile communication services and evaluate the intrinsic capacity of industry no longer reflects reality.

the company providing mobile communication services. - Feng Li and Jason Whalley, Deconstruction of the telecommunications industry:

- Assess opportunities and challenges for companies in the context of removal from value chains to value networks, Telecommunications Policy. In this study, the

monopoly and opening the telecommunications market, provide direction and solutions authors conclude that some of the current changes in the telecommunications industry

to improve competitiveness in the provision of mobile communication services of the is very progressive, and all companies need to reassess strategies and their market

telecommunications company Vietnam. position and the difficult decision to go forward.

6. Dissertation Structure 1.2. A number of research projects in Vietnam

In addition to the Preamble, Conclusion, References list, Annex, the thesis - In 2004, Tran Van Tung, author of the book "Competing economic and national

includes four chapters. 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

CHAPTER 1: OVERVIEW OF RESEARCH RELATED TOPICS

integrating world economy.

THESIS

- In 2006, Vu Trong Lam published the book "Raising the competitiveness of 1.1. Some of the study abroad companies in the process of international economic integration." In this work, the So far, the theory of competitiveness on world development trends in many authors have codified some notion of the competitiveness of the company in the different schools and many different approaches. country experience analyzing and improving international competitiveness of the Porter's Five Forces model was first published in the Harvard Business Review company situation analysis and competitive environment the legal framework of magazine in 1979 to learn content elements to make a profit in business. This model, competition in Vietnam. often called the "Porter's Five Forces", is considered to be useful tools to understand Particularly mobile telecommunications sector, in recent years a number of research and effective source profits. More importantly, this model provides competitive projects are as follows: strategies to maintain or increase company profits. - In 2006, Prof. Bui Xuan Feng has published the book "Managing In 1990, M. Porter announced his "Competitive Advantage of Nations". This book is telecommunications business towards economic integration" After referring the matter Porter research in ten countries leading economy. The book offers the first theory of to business and general business administration telecommunications field competitiveness based on the causes of productivity, whereby companies compete with telecommunications business administration, the author refers to a number of theories each other. Porter shows how traditional comparative advantages such as natural resources on competition and competitiveness in the field telecommunications and propose some and cheap labor was no longer a source of prosperity. The book also introduces the solutions in order to improve competitiveness for telcos. "diamond" - a way to understand the competitive position of a country (or location) in the - In 2007, Le Ngoc Minh in economics doctoral thesis "Development of the current global competition and is an integral part of economic thinking international company business business mobile communication services in Vietnam" presents the business. theoretical development of the business of the company services of mobile In the telecommunications sector, a number of studies as follows: communication, situational analysis and set the direction and development of business - Jean-Jacques Laffont and Jean Terole, Compatition in Telecommunications, solutions for the company's business mobile communication services in Vietnam. Massachusetts Intitute of Technology. In this book, the authors provide theoretical - In 2012, graduate student Tran Thi Anh Thu defended his doctoral thesis

5 6

economy "Enhancing Competitiveness of Telecommunications Corporation Vietnam in

terms of Vietnam is a member of the World Trade Organization". In this work, the

CHAPTER 2: THEORETICAL BACKGROUND ON

author has pointed out the rationale for enhancing the competitiveness of companies,

COMPETITIVENESS IN PROVIDING SERVICES OF MOBILE

real state enhancement of competitiveness of the Vietnam Posts and

COMMUNICATION TELECOMMUNICATIONS ENTERPRISES

Telecommunications and the solution for this problem. 2.1. Characteristics of mobile communication services and service suppliers of 1.3. Conclusions drawn from the literature review mobile communication 1.3.1. The consensus view of competition in the provision of mobile 2.1.1. Characteristics of mobile communication services communication services of telecommunications companies - The quality of mobile communications services depends on many factors. - In the theoretical framework of research: most previous studies and analysis - Mobile information services have high mobility. using two models are studied diamond pattern and five forces model of Michael E. - Mobile communication service with enhanced security. Competitive Porter. The model has put the company in a particular industry - Charges mobile communication compared with other telecommunications environment, analyzing the factors affecting the competitiveness of companies in the services. provision of services and the impact of environmental competitiveness of the company. - Product of mobile communication services nature areas. - Regarding research methods: previous studies have combined both qualitative 2.1.2. Characteristics of provide information services for mobile telecommunications research methods and quantitative. company - Regarding the solution: Towards improved criteria for measuring the - Costs of major capital investments. competitiveness of the telecommunications company providing services in mobile - Technology is leading. communications and proposals to create a healthy competitive environment. - The level of competition in the sector. 1.3.2. The point to further research on competition in the provision of mobile - Humans play an important role. communication services of telecommunications companies - The process of service consumption associated with the production process. - Criteria for evaluating competitiveness in providing mobile communication - The process of transmitting information is the process of establishing multi- services of telecommunications companies. dimensional relationship. - The transformation of telecommunications environments, especially mobile - Timeliness of mobile communication services. communications sector from monopoly to competition and especially after Vietnam 2.2. Competitiveness in providing mobile communication services joined the WTO. 2.2.1. Competitiveness - The role of government in enhancing the competitiveness of Vietnam's telecom Competitiveness is the possibility that businesses can maintain their position in the companies, particularly in the provision of mobile communication services. long-term and sustainable competitive market by creating products / services are of - The response and adaptation of telecom companies in Vietnam with the change high quality, reasonable price, to sell / supply and convenience obtained desired rate. of environment. 2.2.2. Competitiveness in providing mobile communication services - Orientations and measures to improve competitiveness in the provision of mobile Competitiveness in providing mobile communication services of communication services of the telecommunication company Vietnam. telecommunications companies is the ability of telecommunications companies to

maintain their position in the long-term and sustainable competitive market by creating

7 8

the mobile communication services with consistent quality, reasonable rates, providing - Quality of products / services.

a convenient way and earned a profit target. - Charges for product / service.

- The system of distribution of products / services. 2.2.3. The need and the role of enhancing competitiveness in providing mobile

- The difference of products / services. communication services of telecommunications companies

For companies providing mobile communication services, competitive creative - Information and promotion.

opportunities and pressures. Therefore, to improve competitiveness in providing - Brand and reputation of the product / service.

information services and mobile telecommunications company in the market economy 2.4. The factors affecting the competitiveness of service providers of mobile

now has an active role: information Telcos

First, the capacity to create competitive pressure on telecom companies must 2.4.1. External factors

constantly search for creativity, improved production methods and management 2.4.1.1. The elements of macro environment

organization providing services, innovative technologies, applied scientific and - Political Environment - law: including the statutes, rules and activities of the state

technical progress, developing new services, increase productivity, lower the cost of agencies that affect the company's operations.

services. - Cultural environment - social factors including population and income, culture

Second, for consumers, improving competitiveness creates a continuous pressure and environment.

on prices, forcing companies to lower service charges for service to sell quickly. - Economic Environment: including economic growth, national economic policy

Third, for the economy, improving the competitiveness of companies enlivened and the business cycle.

the economy, promote growth and create pressure on companies and industries to use - Environmental technology: The process of technological innovation is considered

resources effectively resources, thereby contributing to overall saving of resources in as the process of system development, is the time to turn new ideas into products or

the economy. services can be sold on the market.

Fourth, foreign relations, enhance the competitiveness of the company promote - The natural environment: including natural resources and economic

market expansion in the region and the world, looking for new markets, joint ventures infrastructure.

with foreign companies, through heavily involved in the division of labor and - International Environment: trends of globalization, trade liberalization.

international economic cooperation, enhanced exchanges of capital, labor, science and 2.4.1.2. Factors in the environment sector

technology with other countries in the world. - Pressure of providers: the number and size of suppliers, the ability to replace the

product / service providers, information providers. 2.3. Criteria for evaluating competitiveness in providing mobile communication

- Pressure from customers: the control through competition in a purchase decision. services of telecommunications companies

The different ways to assess the competitiveness of businesses around the - Competitive pressure from potential rivals: depends on the attractiveness of the

following criteria: market share, revenue, and profit margins, financial management industry, the barriers to entry.

practices, company reputation, the the management team and skilled work force, - Competitive pressures from substitute products: the ability to meet the needs of

quality, price, service diversification, distribution systems... Applying the above similar products / services current.

criteria, the proposed thesis competency assessment criteria competition in the - Competitive pressure from existing competitors: industry conditions, the

provision of mobile communication services of telecommunications companies, structure of the industry, the barriers to retreat.

including:

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2.4.2. Internal factors

CHAPTER

3:

COMPETITIVENESS

IN

PROVIDING

The internal factors are the factors arising from within the enterprise, affecting the

INFORMATION

SERVICES

OF

VIETNAM MOBILE

consolidation and improve the competitiveness of enterprises, such as:

TELECOMMUNICATIONS COMPANY

- Financial capacity: the financial situation of the company shows the company's 3.1. Overview of the market and the companies providing mobile communication strength in competing. services in Vietnam - Production capacity: the ability to create products / services are of high quality, 3.1.1. Overview of market development low price and production scale to meet the needs of the market. 1993, with the introduction of the first mobile networks - MobiFone, Vietnam's - Human resources: people is an important factor determining the existence and mobile market is formed. VMS - MobiFone choose GSM technology. In turn, then, the development of the company. following mobile network launched as VinaPhone (1997), Viettel (2004) also chose - Marketing: system sales and marketing activities deliver products / services to GSM technology. Even as HT Mobile after some time pursuing CDMA technology as the customer, the best meet customer needs. S - Fone to finally switch to GSM with a new name Vietnamobile. The market shift - Activities Research and Development plays an important role in the development from monopoly to competition. Besides, customers also demand continued to increase. and application of new technologies in time to create a competitive advantage in the Initially only the conventional voice services, short messaging, multimedia marketplace. messaging,.... And now, mobile data services are fast growing trend. - Organizational capacity and corporate governance: the combined efforts of the It can be said, competition was quite exciting on the telecommunications market common man in the organization and better use of the wealth of the organization to in Vietnam with many new service providers and policy rates more reasonable, more achieve the organization's overall goals and objectives of each people wisely and most attractive to customers. effectively. 3.1.2. Overview of companies providing mobile communication services in Vietnam 2.5. Experience enhanced competitiveness in the provision of mobile - Stage appearance (1993-1998): In 1993, the network launched MobiFone uses communication services in several countries around the world GSM technology and service providers to deploy mobile communications in May On the basis of experience introducing enhanced competitiveness of the Korean 8/1993 in Hanoi, HCM City in 1994 and continues to expand across the country. telecommunications company, and China, the thesis has identified a number of lessons In 1996, Vinaphone opened and began providing services. The agency's reference to Vietnam telecommunications company providing services in the mobile. management is Vinaphone Telecom Services Company (GPC), is a 100 % owned That is: company of VNPT investment and accounting mechanisms depend VNPT. Firstly: Improving the quality of service and customer service. - Transition period (1998 - 2001): In 2000, the General Post Office Vishipel Secondly organization management model flexible and science. allows setting satellite earth stations - TTDD Inmarsat International and licensed to Thirdly: Increase investment in research and development. provide Inmarsat services. But so far, the company has not officially active. Fourth: Update, technological innovation. - From 2001: In Vietnam, the market for mobile communication services has Fifthly: Construction company culture distinctive. made the company to join the business as: Saigon Postel, Viettel, EVN, HTMobile. Sixthly: Having strategic market development, proper customer. 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 12

communication services in Vietnam in the 2005-2012 period: 3.2. The internal factors affecting competitiveness in the provision of mobile

Table 3.1: Market share and market share growth of the mobile network in Vietnam

communication services of the Vietnam telecommunication company

during 2005-2012

Table 3.3: Table assess the intrinsic capacity of Viettel

Strengths

Weakness

Unit: %

other

Mobifone

Vinaphone

Viettel

networks

Year

Market

Market

Market

Market

share

share

share

share

+/-

+/- %

+/- %

%

2005

36

49

11

4

2006

31

-5

-14

19

173

33

-16

-33

30

6

2007

28

-3

-10

25

-8

-24

32

2

15

7

2008

29

1

4

21

-4

-16

37

5

13

16

2009

27,15

-2

-6

27,19

6

29

33,82

-3

11,84

-9

2010

29,11

2

7

28,71

2

6

36,72

3

5,46

9

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]

- The investment is but concerned, 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.

- 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.

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

Table 3.5: Table assess the intrinsic capacity of VinaPhone

11.21 %, down 38.51 %, respectively compared to 2010. In 2012, the market share of

Strengths

Weakness

image,

long-standing, familiar

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

- 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.

- Business major, 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).

11.55 %. Thus, the largest company in the market including: company information

VMS, telecommunications company Vinaphone and military telecom company Viettel.

13 14

- Financial strength, strong funding of organizations and individuals at home and abroad.

- Large labor force, lack of high- level experts in economics and engineering.

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.

Table 3.8: Table assess the intrinsic capacity of MobiFone

LOYAL

Strengths

Weakness

H3

H4

- Weak network system in the remote

- Telecommunication network system large.

- Higher rates than competitors.

- The distribution system is well organized.

H5

SATISFACTORY

BARRIERS

- The level of advanced technology.

- Not focused on market development areas and

remote.

- Strong financial position.

H11

- High-level management, advanced management technology.

H12

H13

H14

H15

H21

H22

H23 H24

H25

- Quality of service possible.

The call quality

Price structure

New Joining

The attractiveness of other network

Convenient Customer Service

New Resilience

Customer Relations

Value Added Services

Loss

3.3. Rating competitiveness in providing mobile communication services of Vietnam

Figure 3.9: Model of the customer loyalty of mobile communication services in Vietnam

telecommunications company through client interviews investigation 3.3.1. Research Methodology

Source: [23]

After comparing, for comparison, that the author of the Parasuraman SERVQUAL From this model, the authors have given the scale of customer loyalty in the use of scale and colleagues have similarities with six evaluation criteria competitiveness in the mobile communication services of telecommunications companies in Vietnam. provision of mobile communication services mentioned above. SERVQUAL Scale Combining these two scales together with the National Technical Regulation on quality consists of 10 components: (1) Tangible Media, (2) Trust, (3) Response, (4) Capacity phone service over mobile network communications ground (NTR 36:2011 / MIC), the serving, (5) Access, (6) India need; (7) Information, (8) Trust, (9) Safety; (10) authors give scale to assess the capacity addition competition in the provision of mobile Understanding. communication services of telecommunication companies. Then, the author has

in providing information services and mobile

developed questionnaires, conducting surveys and collected 972 questionnaires. 3.3.2. Rating competitiveness telecommunications company Vietnam

3.3.2.1. Quality of service

Chart pe rce nta ge of customer evaluation of service quality

120,00%

Totally disagree

100,00%

Disagree

80,00%

60,00%

Neutral

e at R

40,00%

A gree

20,00%

Totally agree

0,00%

f

e- alu v e h T

alls c e c oi v

af st s e al S

s ult s e r e h T

e oic v ar Cle

or at er p o e h T

e h t e ur s e k Ma

e ar ple o e p s ale S

e ur c e s el e f u o Y

While

Figure 3.8: SERVQUAL Model

Scale

Source: [47] [48]

Figure 3.12: Chart percentage of customer evaluation of service quality

Although the model is only assess the quality of services but this scale covering

Source: survey data

almost every aspect of the service. In addition, the competitiveness of enterprises in the In 2011, the Department of Quality Management of ICT MIC has officially

15 16

announced the results of testing the quality of the service in 2011 mobile

Chart of the assessm ent rate prepaid custom ers on service charges

telecommunication network of 3 ground Viettel, MobiFone and VinaPhone.

Totally disagree

Table 3:11: The results measure the quality of telephone service in the mobile

e t a R

Disagree

150,00% 100,00% 50,00% 0,00%

t

o

o

t

t

n o

Neutral

l l

i

o

r e p

i t

telecommunication network ground Vinaphone, MobiFone and Viettel 2011

No.

Items

MobiFone

Vinaphone

Viettel

t

t s o c

i

i

a C

w e n

Agree

g n y u b

n e h W

e m T

e g r a h C

n e r r u c

Call ratio is set successfully

a r u d

g n y r t

f

1

99,77 %

96,38 %

99,50%

n e h W

e h T

w o H

o

Totally agree

y r a s s e c e n

e g r a h c

The rate dropped calls

2

0,23 %

1,43 %

0,23%

Scale

Voice quality (voice quality point average)

3

3,80 points

3,64 points

3,94 points

QCVN 36 ≥ 92% ≤ 5% ≥ 3 points

4

Accuracy burn rate:

Figure 3:20: Chart of the assessment rate prepaid customers on service charges

- The rate of false calls were recorded charges

0,053 %

0 %

0,017 %

≤ 0,1%

Source: survey data

≤ 0,1%

0,003 %

0 %

0,005 %

- The rate of talktime charges were recorded wrong Call rate charges, billing errors

0 %

0,0063 %

0,0042 %

5

The availability of services

6

99,832 %

99,871 %

99,995%

≤ 0,01% ≥ 99,5%

3.3.2.3. Distribution system service

Chart percentage of customers rated the service distribution system

7

0,0051

0,0037

0,0002

≤ 0,25

150,00%

8

100%

100 %

100 %

100%

100,00%

Totally disagree

e t a R

50,00%

Complaints about the quality of customer service (the customer complaints nai/100 / 3 months) Feedback of customer complaints (complaints ratio reply in writing within 48 hours from the time of receiving the complaint) Customer support services:

9

Disagree

0,00%

'

e d

e c

y

i

i

d e

Neutral

t n e

s n o

s r e

i

w

24 hours a day 24 hours a

-

i l

o t g n

o t g n

f o n o

s r e d

y r e v s

i

i

i f i l

i

f o y t e

e g d

day

24 hours a day

24 hours a day

Agree

a s a g n

i

s e r o t

i

f f a t s s e

s e m T

i r b

a e v a h

l

S

n o s r e p s e

l t n e r r u c

e h t , u o y

v o r p

i r a v

l

p o h s e h T

t n e r r u c e h t

a u q s

Totally agree

n e v n o c

a s

i t a r e p o

i e r o t s

d a r t

p p u s s

, s r e m o t s u c

i

v r e s e h T

m e t s y s

i t c a s n a r t

a s

d r o c c A

d r o c c A

≥ 80%

98,11 %

93,87 %

97,47%

Scale

- Time to provide customer service support by phone - Percentage of calls to customer service support and accounting for successful circuit receives signals of telephone operators answer in 60 seconds

Source: [20]

Figure 3:24: Chart percentage of customers rated the service distribution system

3.3.2.2. Charges for services

Source: survey data

Chart review of rate contract customers on service charges

3.3.2.4. The services differentiated

Chart percentage of customer evaluation of service differentiation

Totally disagree

e t a R

Disagree

120,00% 100,00% 80,00% 60,00% 40,00% 20,00% 0,00%

Totally disagree

Neutral

e t a R

l l

Disagree

Agree

l

Neutral

120,00% 100,00% 80,00% 60,00% 40,00% 20,00% 0,00%

o t w o H

t n e m y a p

Totally agree

e h t t e g

f o d o h t e M

e r a s t s o c

r e p e g r a h c

n o i t c e n n o C

u o y e s a c n I

Agree

r o t s o l e v a h

r o f s e g r a h C

s y a w a u o Y

l

s i s a c h c u s

l i

i

i

i

Totally agree

u o y

y c a g e

Scale

e b o M

l

s e c v r e S

s e c v r e S

k r o w t e N

s e c v r e S

d e r r e f e r p

o t e s o o h c

t c e e s u o y

s r e m o t s u c

s r e m o t s u c

Scale

Figure 3:16: Chart review of rate contract customers on service charges

Figure 3:28: Chart percentage of customer evaluation of service differentiation

Source: survey data

Source: survey data

In fact, the authors also studied, comparing the network's service pack 3 was

investigated and the following summary:

17 18

Table 3:16: The service pack of Viettel, Mobifone and Vinaphone to 05/2012

3.3.2.6. Services brand and reputation of the company

Products

Viettel

Mobifone

Vina Phone

Sea+ Economy

Mobicard Mobi365

Vinacard Vina Text

Chart percentage of custom er evaluation of brand and reputation VinaPhone, MobiFone and Viettel in service provision

Tomato

Mobi 4U

Vina Daily

Sinh viên

MobiQ

Vinaxtra

Totally disagree

e t a R

Hi School

MobiZone

Vina365

Disagree

150,00% 100,00% 50,00% 0,00%

Prepaid

i

Happy Zone

-

Isurf

Neutral

i

f o

e h T

l

d n a r b

Ciao

-

MyZone

Agree

n a g o S

e c v r e s

n a c u o Y

t a c o s s a

k r o w t e N

Totally agree

Tourist

-

Union Officials

Scale

Figure 3:36: Chart percentage of customer evaluation of brand and reputation

- - MobiGold

TalkEZ EZCom VinaPhone

VinaPhone, MobiFone and Viettel in service provision

Source: survey data

Postpaid

Besides the synthesis and analysis of evaluation criteria competitiveness in

- - Basic+ Family VIP Corporate - -

Mbusiness Mfriend Mhome - -

iTouch EZCom VIP Colleague Family

providing public services of all three companies, the authors also have separate

individual companies and general assessment of client capacity competition in the

Source: [21] [24] [27]

supply of each company diich. Since then, with the evaluation board competitiveness in Results in the table above shows, the network has Vinaphone package for customers providing mobile communication services of each company as follows: to use the most, and No. 2 is Viettel ranked No. 3 in the final MobiFone company. Table 3:20: Competitiveness in providing mobile communication services However, considering the diversity of the services Vinaphone head but beware of the MobiFone, VinaPhone and Viettel on customer reviews uniqueness and effectiveness of the services they have superior MobiFone 2 other

Unit: Point

companies. Overall, customer reviews are correct when the network is too small to

Criteria

MobiFone VinaPhone Viettel Leading

Quality of service

supply the package and market the unique differences of the package is less.

3,765

3,717

3,685 MobiFone

Charges for services: postpaid

3.3.2.5. Information and promotion

1,517

1,867

1,085 VinaPhone

prepaid

2,578

2,093

3,119

Viettel

Chart percentage of custom er e valuation of inform ation and prom otion of the netw ork

Distribution system service

3,658

3,678

3,828

Viettel

The differentiated services

3,500

3,233

3,402 MobiFone

Totally disagree

e t a R

Disagree

120,00% 100,00% 80,00% 60,00% 40,00% 20,00% 0,00%

Information and promotion

3,787

3,644

3,745 MobiFone

i

i

Neutral

Brand and reputation services

i

3,879

3,833

3,970

Viettel

Agree

e h T

k o o b

o t g n i t a el r

e r o m e r a

s e c u d o r nt

s r e d v o r p

n o at m r o f n

i

Totally agree

i

e r u t c pi e h T

e c v r e s e h T

Source: survey data

Scale

In general, the evaluation of our customers, the competitiveness of the three

services company providing leading mobile communications market Vietnam is

Figure 3:32: Chart percentage of customer evaluation of information and promotion of

relatively high. The evaluation criteria of companies do not differ significantly and are

the network

over 3 points. Private service charges indicator reached a low point and there is a

Source: survey data

19 20

significant difference: the postpaid service charges, but VinaPhone highest scores but 3.4.2. Weakness

lower than 2 points, while the rate prepaid service, Viettel leads first with a score - The management of State for telecommunications companies that are

greater than 3. insufficient.

However, in order to improve their competitiveness, companies need to pay - The three telecommunications companies are state-owned enterprises, so when

attention to issues such as: (1) Make sure the conversation is the customer's call being making the investment, expanding foreign... often time consuming and procedures for

dropped circuit, (2) Resolve rapid customer complaints, (3) Solving customer approval, reports state agency in charge.

complaints to the situation, logical, (4) Quick fix when communications failures; (5) - The company growth and uneven development. Viettel is the speed of the

Reduce the cost of subscription month for postpaid subscribers; (6) reduced call costs, company's largest development subscribers with wide coverage and the deepest.

(7) Increase in promotions, discounts for postpaid subscribers, (8) freight invoice report - Quality of service is not stable.

- Telecommunications market grows too hot, the telecommunications companies monthly postpaid subscribers need clear, accurate, (9) for prepaid subscribers, the

are racing to increase subscribers, subscriptions run while investing for the network 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 infrastructure has not kept pace leading to congestion still occurs.

type conversion services; (12) Raising the level of tellers; (13) sales skills Training for 3.4.3. Cause

- Due to the nature of the field of mobile communication: characteristics provide tellers; (14) Make clear the difference between the types of services; (15) Provide

mobile communication services of the company depends on the residential status of the services to meet customer requirements; (16) Provide services of legacy good

economy. characteristics, preferred customers, choice, (17) Creation of special services to meet

- The management mechanism is still insufficient: all three major companies the different market segments, (18) Diversification of services of the company (19)

providing mobile communication services above the current active form of 100 % state- provide books, beautiful pictures introduction services, eye catching, (20) Get the

owned, so the investment management, cost Government charges lead to difficulties for customer's interests in mind is that the supply of services.

companies active in the development and market expansion. 3.4. Overall evaluation of the competitiveness of Vietnam telecommunications

- Routine use of telecommunications services, internet in Vietnam is increasing but company providing services in mobile communication

still low. 3.4.1. Strengths

- The company imbalance in strategic long- term business development: - Scale and network coverage increasingly broad and deep.

expression of growth in the market share gap and large fluctuations. - Along with the promotion of installing additional base stations and coverage,

- The analysis and forecasting of the company is not good, is the cause of the companies providing mobile communication services has not stopped competing,

decision of the board of the company is not close to the real situation of the market. racing boost subscriber growth.

- There is no solution to increase service revenues explicitly: most, businesses are - Flexible tariff policy, with diverse services and customer oriented. The telecom

not out of the problem subscriber should develop long -term strategies for development companies are scrambling to reduce rates to entice customers and develop new

services have not been paying attention. customers.

- The staff and employees of the company have not been trained in all copies and - The telecommunications company also continuously launched many different

synchronize the various local. 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.

21 22

- The phenomenon of brain drain.

CHAPTER 4: DIRECTION AND CAPACITY BUILDING SOLUTIONS

- The telecommunications industry companies will have to apply multiple standards,

IN THE COMPETITIVE SERVICE SUPPLY MOBILE

international standards, while incentives and state subsidies cuts.

TELECOMMUNICATIONS COMPANY OF VIETNAM

4.1.2. The development of the telecommunications sector in Vietnam in the coming time 4.1. The development of Vietnam's telecommunications company providing services - Development of market orientation: ensuring telecommunications market towards in mobile communication next time sustainable development quality and efficiency; developing internal resources associated 4.1.1. Opportunities and challenges for Vietnam telecommunications company in with international cooperation; restructured markets. providing mobile communication services in the near future - The network development: promoting the development of broadband access 4.1.1.1. Development trends of the market networks to the household; capacity transmission system long distance and international - ARPU decline of the network. telecommunication networks developed by individual agencies organization. - Declining voice revenues, business opportunities from mobile data services. - The development of services: development of new telecommunications services in - The emergence of a growing number of smartphone and tablet line, these devices accordance with the trend of convergence of technology and services, reduce costs, lower will create new habits for mobile users and generates data traffic is growing. costs, improve service quality. - The start shifting from voice services to data services embodied in the new habits of - The direction of technological development: development of advanced technology consumers and as well as a new revenue source for operator. applications, modern, efficient use of telecommunication resources, promote the 4.1.1.2. Opportunities for Vietnam Telcos application of telecommunications technology environmentally friendly, energy saving. - Access to capital investment, engineering, technology and management experience - The master plan and use of telecom resources: ensure the planning, allocation and new conditions modernized network, expand services, improve the quality of the team... transfer of public telecommunications resources, fair and transparent application of market - Expand overseas market of the company is made easier. mechanisms such as auctions, contests, allows transfer of the right to use, deploy mobile - Must be regularly renewed both in service delivery and organizational models, telecommunications services next-generation broadband. management thinking... 4.2. Solutions to improve competitiveness in the provision of mobile communication - Favorable opportunities for companies to increase sales, expand markets,... services of the telecommunication company Vietnam - Easily accessible with new technologies, accelerate application deployment of new - Improving service quality: focus on developing infrastructure to ensure the ability to services, high quality, attract customers,... respond to large numbers of subscribers and expand coverage to minimize the possibility 4.1.1.3. Challenge that the Vietnam telcos may face of dropping out, to ensure voice quality and boosting development of content services, - Competition will become increasingly fierce. value-added mobile network. - Interconnection charges between mobile and fixed if not timely controlled, will - Expand market and brand development: Promote market research; improve ad continue to be detrimental to the fixed network, affecting the convergence of fixed phase - performance, promotion, media operations, direct marketing activities, build and Mobile - Internet - upcoming TV. standardize synchronously, consistent brand identity systems, systems and standards in - The company must always renew the organization and management to adapt to active form all contact with the outside; diversified customer care program. improve performance. - Improving the organizational structure of investment companies and human - The training and raising the level of the officials and employees must be done resource development: considering plans to set up a joint stock company affiliated to the methodically, efficiently. services provided in the course of providing services to customers; building and develop

23 24

corporate culture, diversity training forms, special forms of self- promoting; research to ensure the telco Vietnam maintain competitiveness in the provision of services, and

building management systems and resource sharing knowledge, building capacity adapt to the context of the new economic trends.

requirements standard capacity of target groups to develop core competency groups, During this research, the authors looked at the document, investigate customer

strengthening innovation team and the organization and operation of the training facility. interviews, expert consultation under the guidance of science teacher guidance. As a result,

- Improved service delivery process: encouraging process improvement initiatives to the thesis answers the question about the problem: (1) competitiveness and

provide services; improve service delivery process synchronization, closed, construction competitiveness in the provision of mobile communication services be?, (2) Features

and implementation of the quality management services, construction and implementation primarily of mobile communication services and service suppliers of mobile

of the sales process, building process resolve customer complaints. communication, (4) factors affecting the competitiveness of Vietnam telecommunications

- Research and development investment networks and new services: decentralization company providing services in mobile communication?, (4) the criteria for evaluating the

of investment management, promoting autonomy in investment activities, strengthen competitiveness of companies in the provision of mobile communication services?

inspection and supervision; overcome investment spread, focused on developing new Through the investigation of secondary data and interviews with 972 customers using

services, improving the system of regulations and guidance research and development mobile information service company of three major service providers in Vietnam market is

activities, building strong relationships between supply parts to the research department, VinaPhone, MobiFone and Viettel, the author has set up the comprehensive picture of the

the formulate and implement good programs key science and technology. competitiveness landscape in providing information services to mobile telecom company

- Strengthening cooperation and international investment: research strategy and plans in Vietnam. The author points out the strengths and weaknesses of the overall

for the development of international cooperation, strengthen multilateral cooperation, competitiveness of all three companies as well as its own internal capacity of MobiFone,

actively participate in the organization of economic activity, engineering, training, network VinaPhone and Viettel in the provision of mobile communication services. Combined with

expansion investment, business mobile communication services in foreign markets. the theoretical framework outlined in Chapter 2, 7 groups stated solution: Improve service

- Synchronization and standardized management mechanism, financial regulations quality, expand market and brand development of the company; Improving the

and network planning: enhanced coordination between different levels of management, organizational structure of investment companies and human resource development;

advising agencies to direct such operator determined, tasks to ensure progress to intensify Improved service delivery processes, research, investment in developing networks and

the inspection, testing and monitoring mechanisms and evaluation mechanism innovation services and to boost investment cooperation and international synchronization and

of financial management, improving financial regulation. 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

CONCLUSION

environment, abolished some taxes unreasonable, uniform orientation, planning, During the period of international economic integration today, when Vietnam became monitoring to meet the development needs of the economy and society, to create a healthy an official member of the WTO, competition issues, especially in the competitive field of competitive environment. mobile communication has become fierce and aggressive. That fact requires The results of this study if the practical application of information services provided telecommunications companies to innovate organization or business to suit the context of by the mobile telecommunications company Vietnam will create favorable conditions for the times and trends. The experience of the reference telcos around the world, as well as a the Vietnam telecom companies enhance their competitiveness in the supply mobile baseline study for proposed solutions " Improving competitiveness in the provision of communication services, maintain its position in the domestic market, carving out a niche mobile communication services of telecommunications companies in Vietnam" is essential overseas markets.