Vietnam Airlines

Group 5:
- Vu Thi Phuong Anh
- Nguyen Van Chi
- Nguyen Thuy Hang
- Phan Thi Hong Nhung
- Cao Thi Thao

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CONTENTS
1. Tangible and intangible resources

2. Capabilities and suitable resources

3. Core-competencies and the resources of these competencies

4. The sustainable competitive advantages

5. Strength and weaknesses

1. Tangible and intangible
resources
 a. Tangible resources

The Financial

The Facilities

The Staff

The Other Service

 a.1. The Financial
- A subsidiary of the government with a
ratio of 86.16%.
-> The advantage backed by capital,
business protection, financial policies ...
- Consolidated pre-tax profit was
estimated at VND 2,800 billion, up 15%
compared to the plan.
- Ratio of Operating Profit Margin
reached 4.38%.
- Liabilities on equity (D/E) fell below 3
times, lower than the beginning of 2018.

- Vietnam Airlines has 14 affiliated units, 16

subsidiaries and 09 associated companies.
=> Provides products and services for air transport activities of Vietnam Airlines and
other domestic and foreign airlines, bringing revenue and profit for Vietnam
Airlines.
 Dual Brand
- With the reception of low-cost airline
JPA and cooperation with JPA to carry
out the war "Dual brand " strategy,
Vietnam Airlines competes and
dominates high and medium revenue
while JPA's direct competition with
airlines Low Cost Carrier, and
dominate the growth of low-revenue
customers. This strategy further
strengthens the position of Vietnam
Airlines in the market.
=> Cover all the market segment to meet the need of customers.
 a.2. The Facilities

The Aircraft
- In early of February 2017, Vietnam Airlines
has 96 aircraft.
- Has expanded its wide-body fleet with a
total of 14 "super-aircraft" Airbus A350-900
XWB and 11 Boeing 787-9 Dreamliner
"dream dreams”.
Airbus A350-900

With the modern facilities and technologies,

Vietnam Airlines helps the passenger to enjoy the
most advanced services and equipments.
 Ground- service

- Implementation of telephone check-in in

Vietnam, and expanded the scope of airport
procedures (in-town check-in), procedures at
the kiosk set at the airport (check-in kiosk)
and through the website.

The completely new service "Welcome

and give priority instructions" (Meet and
Greet) provides practical assistance for
passengers who need special instructions
and prioritize the use of services. ground at
the airport.
=> Bring the most convenience to
customers.
a.3. The Staff

Young and well-trained staff

- Built a team labor force specialized in deep, skilled
work to ensure safety and security in exploitation as
well as good service quality, meeting the increasing
demands of passengers.
The unique labor force are well trained and have a strong
and enthusiastic political spirit. devoted to aviation

- Vietnam Airlines' labor structure: 72.5%

below 40 years old, of which under 30 years
old accounts for 32.6%.
- Labor with university and postgraduate
qualifications accounting for 45% (data
March 31, 2015).
 a.4. The Other Service

- Diverse menu with refreshing drinks on
both domestic and international routes.
- Seat covers, two-layer quilted blankets in
the business class in the future promise to
be subtle details.
The passengers' aerial experience is more interesting
thanks to the expansion of wireless-streaming system
on the new Airbus A321neo narrow-body fleet and an
increase in the number of programs. entertainment,
movies, music on Airbus A350, Boeing 787 aircraft.
 b. Intangible resources

Human resources

Innovation resources

Reputational resources
 b.1. Human Resources

About employees About

knowledge, skills
- Building a highly qualified
workforce on skills, safety and
security.
- Labor with university and
postgraduate degrees account for
45%, young and dynamic team,
sensitive, experienced in
handling situations and incidents.
management
methods
- Retaining talents by increasing
salary or bonus on holidays.
=> Vietnam Airlines has faced
serious shortage of manpower
because the salary paid for pilots,
flight attendants is only 1/3 the salary
of the other private airlines.
 b.2. Innovation Resources
New idea Scientific capabilities
- Save time for flight procedures: in- - Equipment, machinery and technology are always
town check-in, Family check-in, updated and changed quickly and modernly.
Telephone check-in, ...
- There are some services on other => Lack of capital while equipment prices are very
aircraft: entertainment services on the high.
plane, …
 b.3. Reputational Resources

 Brand name: Vietnam Airlines brand has been

formed and developed in association with the
maturing process of Vietnam Civil Aviation
industry.

 It is the only airline in Vietnam to be rated 4 stars.

 Symbol of Golden Lotus

=> Vietnam Airlines is highly appreciated for quality images such as
"trust", "good customer service", is a premium brand and is used most
often in Vietnam.
2. Capabilities and
suitable resources
 Capabilities

Management

Distribution

Service & Marketing

Management information Systems

Research and Development

Human Resource
 Capabilities

Service
On-ground service:
Convenient booking service, convenient check-
in service, optimizing benefits with golden
lotus program, comfortable departments
lounge.

Aerial service:
Extensive entertainment program,
good & free foods in Vietnam Airlines ,
relaxing under the LED light and optimal
warmth, flat reclining chair 180, attentive
service.
 Capabilities (cont'd)

Management information Systems :SMS safety management system approved by Vietnam Aviation

Administration
-Research and Development : Technology:VAECA obtained maintenance certificates from the US
Aviation Department and 11 other aviation authorities

-Management: The increasing rate of pilots in the domestic country to reduce cost, Increase the

frequency of effective routes(domestic and international), Service upgrade and structure improvement

customer.
 Capabilities(cont'd)

Marketing
The symbol of VNA: The golden lotus flower
logo.
After introduction, VNA’ s Golden Lotus brand
has achieved remarkable success, the distinctive
symbol has gained recognition and respect around
the world.
 Capabilities (cont'd)
- Distribution:
Vietnam Airlines have a vast global delivery network transporting to 30 on-line destinations in
Asia, Australia and Europe
==>Helping customers and their luggage arrive where they need safely and soundly. We also
have close partnerships and code-share agreements with many other airlines to ensure an
extensive network.

- Human Resource:

+) Pilots, engineers, flight attendants, technicians - well-trained, enthusiastic

==> Customer will believe the quality of VNA.

+) Technical staff trained by experts of Boeing and Airbus

==> Reduce plane incident to minimum.

+) Labor management team senior management, knowledge, expertise and solid experience.
3. Core-competencies and
the resources of these
competencies.
Core competencies
Intangible resources are the main resource that creates core
competencies. VNA focuses on high quality, so the core
competency that no airline has is the quality of service. VNA has
maintained the service quality of 4-star international standards in
3 consecutive years and the target of 5-star quality is expected
from 2020.
 The most outstanding service quality
Quick booking, easy
01
payment:
Website, hotline, ATM,
VNPAY, NAPAS
Customer care 24/7:
02
More than 100 telephone tables Convenient check-in procedure
at the customer care center 03
66 kiosk check-in and 22 web check-
in counter
 The most outstanding service quality
Comfortable business
04 lounge system: Cuisine is the “bridge” of
4 business lounges at national Vietnamese culture:
station, more than 600 lounges 06
Invited famous chef Luke
Sky-team at international station Smile is a greeting: Nguyen to be the global culinary
ambassador
05
Each customer needs and
preferences are stored in each time
VNA serves customers
4. The sustainable
competitive advantages
 The sustainable competitive advantages
Valuable Capabilities:
- Providing good service quality such as: quick booking,
easy payment: ATM, VNPAY, NAPAS, 24/7 customer
care, convenient check-in procedure, comfortable lounge
system.
- Providing good and qualified airplanes according to
international standards with a team of employees with
good professional knowledge.
02 Your Text Here
Nonsubstitutable Capabilities:
- Aviation safety culture is always a top target.
- Exceeding the selected business model and
achieving many outstanding improvements.
Rare capabilities:
- Vietnam Airlines is owned by
the government and backed by
the government.
Costly-to-Imitate Capabilities:
- A national brand, strong and famous brand, be
trusted by many customers.
- VNA provides the best and reasonable
services to customers, always putting the safety
culture in the air first. Therefore, customers
always trust and choose VNA.
5. Strength and
weaknesses
 5. Strength and weaknesses
Strength:
+ Provides products and services for air
transport activities of Vietnam Airlines and Threat
other domestic and foreign airlines, bringing + Specialized labor Aviation is scarce,
revenue and profit for Vietnam Airlines. especially pilots, technicians.
+ Reputable in the region, the agency system + The current book value of the flight team
is present throughout the country. has not fully shown the actual value due to
+ Good service quality, attentive and the fast depreciation policy.
hospitable staff. + High gasoline prices increase the cost of
+ The flight is often punctual, rarely delayed reducing profits when the company does not
or missed flights. increase fare.
+ Vietnam Airlines' route network has
expanded to provinces and cities nationwide,
regional countries and the world.
+ Vietnam Airlines brand is valuable.
+ The only traditional airline in Vietnam;
differentiated domestic products (Level C,
GLP program).
Thank you!!!