Contents

INTRODUCTION.......................................................................................................................................1
BODY.........................................................................................................................................................2
I. Introduction about Viettel Group.........................................................................................................2
1. The current status and historical background.......................................................................................2
2. Vision, missions, strategic goals/objectives, and philosophy/ values of Viettel Group........................2
II. The impact and influence that the macro environment has on Viettel Group and its business
strategies......................................................................................................................................................4
1. PESTLE of Viettel Group....................................................................................................................4
1.1. Political and Legal.......................................................................................................................4
1.2. Economics...................................................................................................................................5
1.3. Social...........................................................................................................................................5
1.4. Technology..................................................................................................................................6
1.5. Enviroment..................................................................................................................................7
1.6. Viettel Group strategic management decisions............................................................................7
1.7. Opportunities and Threat.............................................................................................................8
2. Porter’s Five-Forces............................................................................................................................9
2.1. Introduction about Porter’s Five-Forces......................................................................................9
2.2. Porter’s Five-Forces of Viettel Group..........................................................................................9
2.2.1. Suppliers (High)...................................................................................................................9
2.2.2. Buyer (High)......................................................................................................................10
2.2.3. Potential entrants (Low).....................................................................................................11
2.2.4. Substitute markets (Medium).............................................................................................11
2.2.5. Industry rivalry (Medium).................................................................................................12
2.3. Assess recent and expected future changes for each force.........................................................13
2.4. Viettel position..........................................................................................................................14
III. Viettel’s internal environment and capabilities..............................................................................14
1. Apply appropriate frameworks for Viettel.........................................................................................14
1.1. Value chain................................................................................................................................15
1.2. VRIO.........................................................................................................................................17
1.2.1. Viettel resources................................................................................................................17
1.2.2. Viettel’s capabilities...........................................................................................................19
1.3. Benchmarking............................................................................................................................22
 1.4. Key strengths and weaknesses of Viettel...................................................................................23
2. Core competences, competitive advantages of Viettel group.............................................................23
IV. Strategic management tool, in a given market sector, choose a business strategy..........................25
1. SWOT analysis for Viettel group......................................................................................................25
2. BCG matrix.......................................................................................................................................26
3. Business strategies.............................................................................................................................27
3.1. Strategy develoment..................................................................................................................27
3.2. QSPM........................................................................................................................................28
V. Strategic management plan................................................................................................................29
1. The crucial factors.............................................................................................................................29
2. A strategic management plan.............................................................................................................30
CONCLUSION.........................................................................................................................................32
REFERANCES.........................................................................................................................................33
 INTRODUCTION

I'll be writing an analytical report about Viettel Group in this essay, focusing on the
company's management of its own business strategy.

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 BODY

I. Introduction about Viettel Group

1. The current status and historical background

Viettel Group was established in 1989 under the management of the Ministry of National
Defense of Vietnam. Nam, currently the leading telecommunications service provider in
Vietnam. Initially serving only military purposes, Viettel expanded into the civil
telecommunications market in the early 2000s and quickly dominated the market with
mobile (GSM) services launched in Asia. , Africa and Latin America starting in 2004. In
2008, Viettel took its first steps. into the world in Cambodia. Many people doubted
Viettel's ability to succeed in Chua Thap country because at that time this market had too
many network operators, including Viettel. On May 15, 2012, Vietnam
Telecommunications Group officially announced its business operations in Mozambique.
This is Viettel's 5th foreign market and the first market to create momentum for Viettel to
continue expanding to other countries in Africa. Up to now, Viettel has not only
maintained its position in the telecommunications field but also diversified into areas
such as digital services, high-tech manufacturing and network security. Standing out as a
pioneer enterprise in developing and deploying 4G networks and researching 5G, Viettel
affirms its position as an advanced technology corporation, actively contributing to the
process of digital transformation and technology development in Vietnam. (viettel, 2019),
(Lan Anh, 2020).

2. Vision, missions, strategic goals/objectives, and philosophy/ values of Viettel

Group

Viettel Group, as a major player in the telecommunications and technology sector, has a
well-defined vision, mission, strategic goals, and a set of core values that guide its
operations and strategic planning.

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Vision

Viettel aims to become a global technology company, leading in innovation and

development. The group focuses on creating sustainable value and making significant
contributions to the digital transformation globally (Viettel,2023).

Mission (Creativity to serve people — Caring Innovator)

Provide high-quality telecommunication and digital services, ensuring accessibility and

affordability for all segments of society. Drive technological innovation and digital
transformation, both in Vietnam and in the international markets where they operate.
Invest in research and development, focusing on cutting-edge technologies like 5G, IoT,
and AI (Viettel,2023).

Strategic goals/objectives

Viettel Group aims to continuously expand its presence in the international market,
aiming to become one of the world's leading telecommunications companies. Invest
heavily in research and development to stay at the forefront of technological advances.
Enhance customer experience through innovative services and reliable network
infrastructure. And balance economic growth with environmental sustainability and
social responsibility (Misa, 2021).

Philosophy/Values

Emphasis on continuous innovation in products, services and business processes. Strive

for excellence in every aspect of operations, from network quality to customer service.
Maintain high ethical standards and transparency in business practices. Nurture a culture
of collaboration both within the organization and with external partners (Viettel,2023).

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 II. The impact and influence that the macro environment has on Viettel Group and
its business strategies
1. PESTLE of Viettel Group

Using the PESTLE framework, strategic planners can evaluate how various political,
economic, social, technical, environmental, and legal aspects might affect their project.
Before a project begins, an external environmental review group is involved. It's a useful
way to make sure someone knows about all the possible hazards and issues. A tool for
analysis used in strategic business planning is PESTLE Analysis. The PESTLE
framework serves as a strategic tool for comprehending the impact of external factors on
businesses and projects. PESTLE stands for political, social, technological, legal, and
environmental aspects (P.VanZandt, 2023).

1.1. Political and Legal

The government structure currently managing our country is highly appreciated for its
stability, ensuring Viettel's stable operations and strengthening the confidence of
investors. Opportunities for the corporation to participate in the global market include
membership in the WTO, membership in the United Nations Security Council,
globalization, expanding trends abroad and integrating into the global economy.
Recently, Viettel cooperated with two of the leading technology companies of Poland and
Vietnam, bringing benefits of supporting the development of a common product
ecosystem and promoting the commercialization of each other's goods in Vietnam. future
markets through multiple distribution channels. In addition to successful business in 11
countries, Viettel also has strengths in overall operations, including research, design,
production and distribution of advanced technology solutions in Southeast Asia and
South Korea markets. ASIAN. family. With the most advanced military systems available
on the market, the WB Group is the market leader in Poland's high-tech sector (Tran
Quyet, 2023). The implementation of regulations related to administrative procedures is
increasing, and company licenses are becoming shorter and shorter. The government
wants to remove obstacles to business operations and operate public administration

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effectively. As a result, Viettel Group benefits from lower barriers to entry. Vietnam now
has laws that are generally more comprehensive. Business law is evolving at a rapid pace.
The legal structure subject to state supervision on economic inspection makes the
Enterprise Law very important for all businesses (Nguyen Minh Phong,2022).

1.2. Economics

Telecom provider Viettel lets users generate more money. Due to its expanding service
capability, Viettel can help the firm flourish. Rising phone and Internet demand has also
helped our service firm develop and sell. Inflation rose to 11.75% in 2015 and 2016 and
exceeded 18%, affecting many individuals. Despite a reduction, inflation affected Vettel's
2017 activity (Ha Minh Son, 2023). Tightening monetary policy and restricting loan
expansion to fight inflation has hurt many firms. Business strategy issues plagued Viettel.
The global financial collapse and mid-2008 crisis have reached their lowest point,
affecting Viettel's commercial activities. In 2009, Viettel again had great earnings. Mr.
Nguyen Manh Hung, Viettel's Deputy General Director, said that while 2009 was not
"smooth sailing" as previous years, the company's income reached 60,000 billion VND,
up from 2 billion VND in 2008 (or about 33,000 billion VND in USD). Through 2009,
Viettel has doubled its income five years in a row. The company's profits fell short due to
consumers cutting back on spending due to the recession. Thus, Viettel Group has
profited from current and future macroeconomic conditions. Telecom services are in
demand, but they also create obstacles. We must alter technology and management
techniques to save costs, slash products and customer service costs, and stay competitive.

1.3. Social

"Because markets are created by populations. As of December 6, 2023, 100,009,382

people call Vietnam home, according to the most recent United Nations figures.
Presently, 1.24% of the world's population resides in Vietnam. According to rankings of
nations and territories by population, Vietnam comes in at number fifteen in the globe.

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The population density of Vietnam is 323 persons per km^. In Vietnam, the average age
is 33.7 years old (Dan so,2023).

The rates of population increase in various cities, regions, and nations are frequently of
interest to businessmen. The population is growing, which has a significant impact on
business. particularly in technology and telecommunications. Furthermore, among
Viettel's client categories, youth and students today have the biggest need to use internet
and telecommunication services. Viettel has provided services and packages that are
appropriate for each target market. Vietnam is evidently a very intriguing market, given
that Viettel's market has a sizable population and is expanding quickly. Particularly in
metropolitan regions, Vietnam's educational efficiency is comparatively high. In
comparison to the entire nation, the graduation rate from universities, colleges, etc., is
extremely high. Vietnamese intellectual laborers are also more advanced technologically,
making them a valuable human resource for the business. Moreover, the necessity of
using phones, the Internet, etc. The population is growing in today's world, which
presents a chance for Viettel to grow its business.

1.4. Technology

In order to support Viettel's application in promotional communications, new technology

is developed quickly, the innovation life cycle is incredibly short, and performance is
enhanced (the field of mechanical components holds an important position). Utilizing
new technology expands coverage, lowers costs, increases service quality and reliability,
and provides mobile phone network coverage along the entire coastline region close to
Vietnam. range of 70–90 km; in certain places, however, the coverage area of the
mainland exceeds 200 km. With its fast and reliable upload and download speeds, FTTx
fiber optic transmission technology has the potential to progressively replace ADSL and
take the lead in the broadband Internet market. Run a production line for electronic and
telecommunications equipment that can create a wide range of products, including
tablets, smartphones, laptops, and other devices. Furthermore, Viettel recently declared

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that 5G technology has been successfully deployed and that consumers in Hanoi and Ho
Chi Minh City will soon be able to participate in a 5G technology testing program.

1.5. Enviroment

Climate, weather, and geographic location are examples of natural forces. Viettel's
investment in telecommunications infrastructure and service quality are significantly
impacted by these variables. Environmental factors on a global scale: To access a wide
market, Vietnam signed the Vietnam-US Trade Agreement, joined the World Trade
Organization, and took part in five or six free trade accords. Viettel made official
investments in Cambodia and Laos in 2009. In Laos, Viettel dominates in network
infrastructure with the Unitel network, and similarly to the home market, it leads in
infrastructure and customers in Cambodia with the Metfone network. The Cambodian
market brought in 161 million USD in revenue in 2017, a 2.8-fold increase from 2016. It
increased by 4.5 times from 2016 to around 61 million USD in the Laos market. The
mobile information network that Viettel invested in Laos and Cambodia has grown to
become the largest network in terms of market share, consumers, and network by 2019,
after over ten years of operation. Viettel is currently investing more in new, more
competitive countries including Mozambique, Peru, Haiti, and Bangladesh, which
together have an estimated 86 million people, which is equal to Vietnam's population.

1.6. Viettel Group strategic management decisions.

Viettel has expanded its partnerships with leading technology companies, for example
collaborating with Polish and Vietnamese technology companies. This shows a strategic
decision to take advantage of opportunities from international integration. Viettel has
adapted to changes in the legal environment and state management, which is
demonstrated through strict compliance with regulations related to business activities.
Viettel has focused on expanding and improving the quality of phone and Internet
services to meet growing demand. In the context of high inflation, Viettel could have
applied measures to control costs and protect profits. Taking advantage of highly

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qualified human resources in Vietnam shows that Viettel focuses on human resource
development. The decision to expand production of electronic devices, including
smartphones and laptops, reflects Viettel's commitment to technological innovation.

1.7. Opportunities and Threat

The PESTLE study conducted by Viettel Group reveals an environment that is both full
of opportunities and risks. Stable governments and global integration present enticing
prospects for growth and collaboration, both legally and politically. Work together with
leaders in technology who approach innovation and product development strategically.
The development of business legislation and lower entry barriers create an environment
that is conducive to business expansion. In terms of finances, Viettel can benefit from
telecommunications services when demand for internet and phone services rises. On the
other hand, dangers from inflation and economic difficulties may necessitate cost
management measures. Vietnam's population is expanding, particularly among its youth,
which presents potential for the telecommunications industry to see growth in demand.
Telecom's capabilities are further enhanced by a well educated personnel. Viettel's
requirement to consistently enhance service quality and broaden its coverage area is
driven by technological advancements. But there is a drawback to innovation's quick
speed as well. Operational and environmental issues may be impacted by the worldwide
economic slump and environmental factors. Adaptability is necessary in the
telecommunications sector due to regulatory changes and competitive challenges. In
conclusion, the dynamic external environment that affects Viettel Group's strategic
position makes it crucial to seize opportunities and reduce risks if the company is to
continue to succeed in the telecoms industry.

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 2. Porter’s Five-Forces
2.1. Introduction about Porter’s Five-Forces

Michael Porter's Competitive Forces Model (Porter's Five Forces Model) is the most
popular framework for industry profitability analysis. The five strengths' combined goals
vary each firm. All five personal strengths are structural (scale), determining profit
potential. Industry profit intensity and profitability depend on all five drivers.
Strategically, the strongest forces matter.Under Porter's model, an industry's structure and
firms' strategic performance depend on the relative strengths of five forces: actual
competition, potential competition, and threats. replacement items, buyer-supplier power
menace. These five forces will be evaluated individually. Many companies use this
technique to decide whether to enter or operate in a market. Today's corporate
environment is "dynamic" so this approach can also be used to find areas for
development to increase earnings.

2.2. Porter’s Five-Forces of Viettel Group

2.2.1. Suppliers (High)

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To be able to operate strongly in the field of telecommunications services requires a lot of
investment in equipment and finding the best and most suitable suppliers for the
company. Furthermore, there are changes in state policies and limited investment capital.
It has financial providers such as affiliated companies, MHB, Vinaconex and Vietnam
Electricity Group. There are also a number of suppliers of materials and products such as
AT&T (USA), Blackbarry Nokia, Huawei (China), Ericsson (Sweden), Nokia Siement
Network (Finland). Telecommunications corporation AT&T (USA) announced the
official launch of commercial activities in Vietnam. Previously, in November 2006,
AT&T cooperated with the Military Telecommunications Group (Viettel) to create a
gateway connecting Vettel's network to AT&T's network globally. Since September
2007, AT&T has officially brought the first customer in Vietnam to its connection
network. Currently, AT&T has representative offices in Hanoi and Ho Chi Minh City and
provides two services to customers: virtual private network (IP Virtual Private Network)
and Frame Relay service (Mai Phuong, 2007). In addition, Ericsson successfully
deployed a solution to help Viettel improve 4G service quality. Ericsson Expert Analytics
is a powerful set of data analysis tools that allows Viettel to capture not only data but also
detailed information to serve data-driven operations and decisions, helping to improve
service quality and promote growth as well as revenue. Ms. Nguyen Thi Tam, Deputy
General Director of Viettel Networks, said: “Deploying Ericsson Expert Analytics
provides us with optimal tools to monitor comprehensive customer experience across
mobile broadband and VoLTE, At the same time, proactively make adjustments when
problems arise. This will allow Viettel to resolve customer care issues more quickly and
effectively than before. Thanks to that, the end user experience will be significantly
improved” (PV, 2023), (Mai Phuong,2007).

2.2.2. Buyer (High)

Those unhappy with Viettel's mobile service can switch carriers. High-quality, low-cost
services are always desired. Additionally, clients are sensitive and demanding. Thus,
superior service and customer care make sense. Viettel must also consider client

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comments. Viettel has always treated each customer as an individual with unique
interests and demands for 27 years. Viettel always fits into consumers' hectic lives to
offer sophisticated bonuses. A NielsenIQ survey done in June–September 2021 found
that over 510 Viettel subscribers and 490 other carriers' consumers are 18–55 years old.
Customer recommendation rate to family and friends. This index exceeds Asia's 75%
requirement by 10%. Viettel also has the greatest customer satisfaction (78%), in fixed
internet services. NielsenIQ reports that numerous factors affect Viettel's
telecommunications customers' satisfaction. Customer satisfaction index (NPS) is largely
affected by service quality and price. Viettel's mobile and fixed bandwidth users rate its
signal quality and coverage as superior. Mobile telecommunications services go beyond
basic communication. In 4.0 technology, smartphones and mobile data are inevitable.
Accordingly, 90% of Viettel's mobile subscribers use data. This is the best number
among Vietnamese network operators (2022).

2.2.3. Potential entrants (Low)

These days, people's lifestyles are becoming better and better thanks to financial
advancement and the development of technological innovation, and mobile phones are
progressively becoming a necessity. With a sizable client base and excellent advantages,
the mobile data benefits market is quite appealing. There is a steady equilibrium,
particularly in the present Vietnamese market, aside from major mobile ISPs like
Mobilefone, Vinaphone, and Viettel. Other companies, such S-fone, Shortcut, etc., only
manage to secure a very tiny portion of the market. Thus, there's no need to worry for
individuals who might join Viettel.

2.2.4. Substitute markets (Medium)

The internet is currently one of the quickest and most efficient ways to communicate,
even with mobile phones. As a result, the proliferation of information technology has led
to the replacement of numerous services and goods, including online messaging and
phoning. However, these days, mobile phones and computers are used in tandem and

11
complement one another. Multifunction phones and multimedia streaming services
cannot be replaced by computers and the internet, despite their many positive and
genuinely helpful aspects.

2.2.5. Industry rivalry (Medium)

As of 2018, the following mobile network market shares are held by different companies
in Vietnam: Mobifone 35%, Viettel 40%, Vinaphone 20%, S-phone 3%, and even 2%.
Thus, Vinaphone and Mobifone are Viettel's primary rivals. Strict government
regulations on telecommunications are another way to stop new companies becoming
dumped onto the market.. Among the three telecommunications giants, VNPT and
MobiFone both failed to achieve planned revenue, while Viettel maintained its
performance with a growth rate of 6.1%. Previously, in 2021, the revenue of parent
company VNPT reached 36,810 billion VND, in 2020 it reached 40,643 billion VND,
and in 2019 it reached 43,231 billion VND. Looking at the structure, revenue mainly
comes from business coordination activities with VNPT - Vinaphone and VNPT-Media
with 31,193 billion VND, accounting for 85.2%. The remaining revenue comes from
providing services and selling goods to other parties. Regarding financial revenue,
dividends and exchange rate differences both decreased compared to the same period last
year. However, because deposit interest reached VND 2,181 billion, an increase of 28%
compared to 2021, total financial revenue still increased. In the cost structure, most items
recorded an increase. Specifically, sales costs were 12.2 billion VND, an increase of
20%; corporate management costs 2,903 billion VND, an increase of 2.6%; Financial
expenses were 178 billion VND, an increase of 641%. The sudden increase in financial
costs was due to recording exchange rate difference losses (nearly 51 billion VND) and
127 billion VND in provisions for devaluation of investments.

Meanwhile, MobiFone - another "big guy" in the telecommunications industry - is sadder

with the decline in both revenue and profit. According to the latest information from

12
MobiFone, the parent company's revenue in 2022 will reach VND 28,847 billion, down
3.9%; Pre-tax profit reached VND 3,183 billion, down 33%. As a result of the
consolidation, revenue reached 30,160 billion VND, down 3.4%; Pre-tax profit reached
VND 3,234 billion, down 32.7%. MobiFone side said that in 2022, the business will
record the parent company's revenue according to the method of "revenue according to
actual capacity used", instead of "revenue at the time of collection of prepaid card sales"
according to the instructions of the MobiFone. The Ministry of Finance and the Ministry
of Information and Communications should make changes.

Meanwhile, the Military Industry and Telecommunications Group (Viettel) still maintains
its "form" with a growth rate of 6.1% when consolidated revenue reached about 163,800
billion VND. The main source of revenue from telecommunications is maintained as the
company continues to maintain its position as a mobile telecommunications service
provider with 54% market share. Viettel's pre-tax profit reached VND 43,100 billion, an
increase of 3% compared to 2021 (Binh Khanh,2023).

2.3. Assess recent and expected future changes for each force

Porter's Five Forces framework has undergone recent and expected modifications that
have an impact on Viettel Group's strategic position in the telecom sector. Viettel has
established alliances with international equipment suppliers to guarantee a steady supply
chain in terms of suppliers. In the future, Viettel might look to form new partnerships in
order to gain access to cutting-edge technologies, which could have an impact on global
trade regulations. Although customer loyalty is still high, future competition might

13
require that we keep an emphasis on innovation and high-quality services. Potential rivals
should continue to face significant obstacles to entry, and Viettel's hegemony is probably
going to continue. Viettel must keep up with innovative technology since mobile
telecommunications will always be necessary, even in the face of changing substitute
markets. Even though there is competition in the market, Viettel must remain flexible,
make infrastructural investments, and pay attention to customer demands in order to
remain competitive. Viettel's ability to deal with these factors in a market that is changing
quickly will be essential to its future success.

2.4. Viettel position

Viettel Group, a major participant in the Vietnamese telecom market, has a strong
position according to Porter's Five Forces model. Regarding suppliers, Viettel has
significant investment capacity thanks to financial backing from related businesses
including MHB, Vinaconex, and Vietnam Electricity Group. The business also gains
from a broad range of product and material suppliers, including international behemoths
like Ericsson (Sweden), Nokia Siemens Networks (Finland), Blackberry, Nokia, Huawei
(China), and AT&T (USA). Notably, AT&T had previously begun operations in Vietnam
and has worked with Viettel, implying possible future alliances. When it comes to
consumer happiness and personalized services, Viettel leads the industry in
recommendations, fostering a strong sense of client loyalty. Due to the market's relative
stability and the dominance of large companies, the telecom giant also benefits from
minimal prospective entrant risks. Despite the existence of other markets, Viettel's
dominance in the mobile telecommunications industry guarantees its adaptability to
changing technological advancements. Furthermore, Viettel has maintained its
performance and market share, further strengthening its place in the sector in a highly
competitive terrain that it shares with big rivals like Mobifone and Vinaphone.

III. Viettel’s internal environment and capabilities

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An organization's internal environment is the collection of circumstances, elements, or
components that influence how it runs its affairs and can also be impacted by the
decisions and actions of the company (H.Bhasin, 2023).

1. Apply appropriate frameworks for Viettel

Viettel Group is a large telecommunications corporation in Vietnam, known for its

diverse services and significant influence in the telecommunications field, especially in
Southeast Asia. Therefore, the value chain model and VRIO will be applied to the
internal analysis of Viettel company

1.1. Value chain

The value chain is a set of sequential processes that start at the initial design and continue
until the product is finished and delivered to the client. The production process's
sourcing, production, and marketing phases are all included in the chain that indicates
each stage at which value is added. Business activities are separated into two categories
in value chain analysis: core activities and support activities (C.TARDI, 2023).

1.1.1. Primary activities

Inbound logistics: This includes acquiring the tools, resources, and other materials
required to provide telecommunications services. This could apply to Viettel and include
servers, network gear, and other technology required for internet and mobile services.

Operations: This is the core of Viettel's business, involving the deployment, maintenance,
and management of telecommunications networks. It includes setting up mobile towers,
laying down fiber optic cables, network management, and ensuring efficient, continuous
service.

Outbound Logistics: This relates to the distribution channels through which Viettel
delivers its services to customers. This might be less about physical logistics and more
about network provisioning and access.

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Marketing and Sales: Marketing strategies to promote Viettel's services, pricing plans,
customer acquisition tactics, and sales channels are all key. This includes advertising,
promotional campaigns, online and physical sales channels, and customer engagement
strategies.

Service: Post-sales services are crucial in the telecom sector. For Viettel, this would
encompass customer support, troubleshooting, service upgrades, and handling customer
queries and complaints.

1.1.2. Support activities

Firm Infrastructure: This includes organizational structure, management systems, and the
overall corporate strategy of Viettel, all of which are essential for effective functioning.

Human Resource Management: Recruiting, training, and retaining skilled employees,

particularly in the technological and customer service areas, are vital for Viettel's success.

Technology Development: Continuous investment in R&D to innovate and improve

services, including development in new technologies like 5G, AI, and IoT, is a key aspect
of Viettel's value chain.

Because one action can have an impact on other operations, it can be demonstrated
through this study that the Viettel Group's value chain is a system of interdependent
activities with close and sustained links. inside the value chain. Inbound logistics are
deemed to be more crucial than other activities for Viettel's primary operations.
Purchasing inputs is known as procurement, and as such, it has an impact on domestic
logistics progress, manufacturing costs, and operations. Delays in procurement can have
an impact on revenue, production, consumption, and even the caliber of the company's
output. As a result, Viettel needs to continue building strong ties with reliable raw
material suppliers. Additionally, Viettel is one of the first companies in Vietnam to test
and deploy 5G networks, providing super-fast connectivity and fostering the development
of the Internet of Things (IoT). The company uses cutting-edge techniques in the
operation and product development process, including the Quality Management System
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and a modern software development model. The Internet of Things (IoT) is being applied
in a variety of fields, including asset management, smart agriculture, smart cities, and
energy consumption management. These upgrades contribute to shorter operating times,
transparent product quality communication with overseas partners (inbound logistics),
and optimal product quality delivery to customers via the outbound system. logistics.
logistics. Additionally, in order to run this system, highly qualified and specialized
workers (HRM) in the field of R&D are essential components for streamlining the
distribution, operation, and product development processes. Items. Internet service
providers can gain a competitive edge in customer outreach and product promotion by
combining efficient HRM with superior outbound logistics. Each activity in the value
chain generally has a specific job, but because they are all interconnected, coordination is
crucial.

1.2. VRIO
1.2.1. Viettel resources
a. Tangible resources

Telecommunications infrastructure: This includes the towers, satellites, cables, data

centers and other network equipment that form the backbone of their service delivery.
Viettel has built an extensive telecommunications network, including mobile networks
(2G, 3G, 4G and developing 5G) and fixed networks. They also provide data
transmission services over fiber optic cables and copper wires, serving both individual
and business customers. Viettel also invests in data centers to support large data storage
and processing, as well as provide cloud computing services to customers (Viettel,2023).

HR: Viettel is one of the leading economic corporations in Vietnam, with a number of
employees up to 50,000 people. When Viettel recruits personnel, this group attaches great
importance to employees' working skills, because this is an extremely important factor in
creating a successful company. In the process of recruiting personnel, Viettel CEO
Nguyen Manh Hung applies the philosophy of "Sun Wukong". Recruit people with the
motto of panning sand to find gold. Instead of selecting many candidates, only take 5 out

17
of 10 candidates after 6 months. These are quality employees and are placed in the right
positions. CEO Nguyen Manh Hung said that candidates through the process of recruiting
senior personnel to Viettel will go through two basic training courses: one training course
on the history, culture and regulations of the business and one training course on the
history, culture and regulations of the business. one-month military training course. Since
then, Viettel Group's HR has always been an important resource of the group. Regarding
building and improving the quality of human resources, Viettel invested in a 4G lab for
the Posts and Telecommunications Institute of Technology; cooperate with Polytechnic
University (Ho Chi Minh City National University) to produce 5G chips; Accompanying
Hanoi University of Science and Technology in the field of research and development of
new technologies such as Artificial Intelligence (AI), Precision mechanics and advanced
materials, Clean energy... (Viettel, 2023), (Hieu Nguyen, 2023)

b. Intangible resources

Brand value: The Viettel brand is widely recognized, especially in Vietnam and in the
markets where it operates, contributing to building customer trust and loyalty. Military
Industry and Telecommunications Group (Viettel) said on August 16 that Viettel
continues to be honored as the most valuable brand in Vietnam; At the same time, it is the
most valuable telecommunications brand in Southeast Asia according to Brand Finance -
the world's leading UK organization in brand valuation. According to the assessment, the
public's feelings towards the Viettel brand such as "Familiarity", "Consider using the
brand" and "Willingness to introduce the brand" are ranked highest with 9/10 points.
Brand Finance's independent research also highly values the perceived sustainability of
this brand (Anh Tuan, 2023).

Exclusive technology and patents: Any patents Viettel owns on telecom technology and
services, or any proprietary technology produced internally. Viettel has 14 additional US
exclusive patents in 2022 and the first quarter of 2023 alone, which is 1.5 times greater
than the total number of patents issued in the preceding three years. At now, Viettel is the
Vietnamese company with the greatest number of US patents that are solely protected in

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the three domains of military, civil, and telecommunications. With 505 patent
applications and 94 issued patents, Viettel is one of the top companies in Vietnam for
patent registration, according to the Vietnam Intellectual Property Office. Between 2017
and 2022, Viettel's average growth rate of patent applications was 1.5 times greater than
the national rate. (Minh Thi,2023).

Data and Customer Relationships: Improved customer service, targeted marketing, and
market analysis may all be done with the massive quantity of client data that has been
gathered. Viettel's ultimate objective is to create a CRM system that would help them
cultivate positive client connections. This team set up a CRM system in order to cultivate
strong bonds with clients. From there, keep all of your client information in one
convenient location for simple administration. overview of company data via
departmental linkages that are updated in real time and graphic reports. Establish efficient
methods and procedures for sales and ensure that the departments of marketing, sales,
and customer service communicate with one another. Manage and oversee the work of
remote workers while also increasing the staff's abilities.

1.2.2. Viettel’s capabilities

Viettel Group's capabilities, which are a set of integrated processes and activities that the
Group carries out to bring value to customers and maintain competitive advantage, are
diverse and multifaceted, reflecting its position. of the group is a leading
telecommunications company.

Marketing capacity

Since entering the mobile market (in 2004), Viettel has clearly oriented its marketing
methods in accordance with its established business philosophy by providing low-cost
packages so that many consumers can afford them. service access. According to the
results of telecommunications market research by Markcom Research & Consulting, the
success of the Viettel brand is due to the positioning strategy and business approach
criteria "for customers first, for ourselves second". Marketing is summarized in core

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values. "Creativity is vitality" is one of the constant core values at Viettel. Therefore,
Viettel's competitive strategy is to differentiate itself from its competitors. Viettel has
been a pioneer in providing services and utilities on mobile phones with available
infrastructure, technology and number of customers using 3G. Marketing is expressed in
strategic vision. Up to now, when the mobile market is still fiercely competitive, Viettel
has oriented its next development step not to be pure mobile but telecommunications
combined with information technology and products that must meet service needs. "every
corner of life".

Adaptive capacity

Adaptive capacity exists in perception and action. When it first started building
infrastructure for mobile services, Viettel faced difficulties in capital and lack of
experience. But with breakthrough thinking and strategic vision, Viettel has boldly
changed and invested, building a network simultaneously in 63 provinces and cities. For
many years, the nationwide infrastructure network has remained one of Viettel's
strengths. Adaptive capacity is expressed through liking respond to foreign investment
environment. Adaptive capacity is reflected in investment expansion. With the aim of
integrating telecommunications and information technology into other spheres of social
life (e-government, healthcare, education, etc.), Viettel not only concentrates on growing
and developing the fundamental telecommunications services but also conducts research
and develops new products and services based on telecommunications infrastructure,
such as value-added services, information technology, and television. Viettel's proactive
approach to equipment manufacture is a classic example of the company's ability to
adapt. Viettel promoted the idea of creating a network to support future business and
profitability as soon as it joined the mobile market. The ABCD + S model (Advance, Big,
Cheap, Dynamic + Speed) has been applied by this company through the author's
research, as demonstrated by Viettel's market leadership and innovation, as well as its
development and expansion through the provision of low prices to serve customers,
dynamism promotion, and rapid service deployment. (Bùi Quang Tuyến,2014).

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21
1.3. Benchmarking

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 1.4. Key strengths and weaknesses of Viettel

2. Core competences, competitive advantages of Viettel group

Core competences:

Viettel Group's competitive advantages and core capabilities, taken together, define its
market leadership and strategic positioning and account for most of its success in the
telecommunications sector. Viettel's ability to implement cutting-edge technology is at
the heart of its key competences. This is especially demonstrated by the strength of its
mobile networks (2G, 3G, 4G, and the upcoming 5G) and sophisticated data transfer
services. This technical prowess is supported by an extensive communications network
that includes everything from data centers to towers and satellites, guaranteeing
dependable and extensive service coverage.

Viettel's strong R&D skills are another essential element of its core competences, since
they have made the company a leader in the creation of innovative telecom technologies.
The company's strategic approach to human resource management, which places a strong

23
emphasis on hiring and developing top-notch employees, balances this. Viettel's
operational success is largely due to the talented and committed personnel that has been
fostered by this focus. Viettel's market position is further strengthened by the fact that its
advanced CRM systems demonstrate its dedication to comprehending and meeting client
demands.

Competitive advantages:

Viettel has a variety of benefits over its competitors. It distinguishes itself from rivals
with its substantial share and scale of the Vietnamese market. Its service offering has
been diversified to include digital services and IT solutions in addition to traditional
telecoms, which has increased its income base and decreased its dependence on a
particular market niche. Viettel's inventive advantage is emphasized by its possession of
proprietary technologies and patents, particularly in the United States. The business has
also been successful in building a strong brand that is known for dependability and
quality, which has resulted in a significant increase in client loyalty and confidence.

Viettel has various amounts of official backing because it is a state-owned firm, which
improves its competitive position in domestic operations. Its successful entry into other
markets also shows that it has the flexibility to compete on a worldwide scale, which is a
significant competitive advantage in the ever-changing telecom industry. These
components, which include both competitive advantages and core capabilities, operate in
concert to sustain Viettel's leadership in the telecom industry and are essential to the
company's expansion and future prospects.

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IV. Strategic management tool, in a given market sector, choose a business strategy
1. SWOT analysis for Viettel group

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 2. BCG matrix

These are the quartiles that show high market share in a high growth industry. This shows
that Viettel's 5G service is in a good position and could be the main driver for future
growth and profits. The company should continue to invest in this area to maintain and
enhance its position in the market as the industry develops. Viettel is a pioneer in
deploying 5G network in Vietnam. Currently, Viettel has completed 60-70% of the
workload in the process of mastering the 5G network. In the first half of 2021, engineers
of Viettel High-Tech Industry Corporation (VHT) grasped the change in information
about 5G band planning and quickly deployed hardware development. To date, the
hardware packaging for system integration has been completed. It is expected that
hardware production will be completed in October 2021, according to the schedule
registered with the Ministry of Information and Communications.

Meanwhile, the International Market (in Question Marks) has a relatively low market
share but is in a high growth environment. Viettel's strategic significance is to evaluate

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these markets to determine whether to invest resources to increase market share or divest
capital if they cannot compete effectively. These markets have potential but need to be
carefully considered to avoid overspending without providing a satisfactory return on
investment.

These are in a low market share and low-growth sector. For Viettel, the presence of
obsolete technologies indicates that it may be time to divest from these areas as they are
unlikely to generate significant future revenue or growth. The resources tied up here
could potentially be redirected to more promising areas.

Overall, the BCG matrix suggests that Viettel Group should focus its efforts and
investments on 'Stars' to secure and grow its competitive edge, especially in the 5G
sector. For 'Question Marks', strategic decisions are needed to ascertain the potential of
international markets and the possibility of converting them into 'Stars' or at least 'Cash
Cows'. 'Dogs' should be managed to minimize losses or divested. The absence of 'Cash
Cows' in the provided image might indicate a need for Viettel to identify and manage
these assets effectively to ensure a stable revenue stream.

3. Business strategies
3.1. Strategy develoment

Strategy 1:

Viettel can leverage its reputation for quality and strong brand to penetrate new and
expanding markets. Use leading brand reputation to win customer trust in new markets,
emphasizing high quality standards of products and services. (S1,S2,O1)

Strategy 2:

Identify new underserved or emerging markets or geographic segments and customize

offerings to meet their specific needs. Conduct thorough market research to understand
the dynamics of potential new markets, including customer needs, competition and
regulatory environment. (W1,O1)

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 3.2. QSPM

The QSPM table indicates that approach 1 has a better overall score (6,26 > 4,72) than
strategy 2. As a result, Viettel has to build strategy 1.

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V. Strategic management plan
1. The crucial factors

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 2. A strategic management plan

The Viettel Group strategic management strategy relies on resource allocation to achieve
goals. The corporation carefully allocates resources to essential sectors. Market research
is funded to ensure Viettel's plans are data-driven and fit market demands. Marketing
budgets boost brand exposure and penetration in existing and new markets. R&D,
Viettel's foundation for innovation, receives a large part of resources. VIETEL prioritizes
technology improvements to stay up with the fast-changing telecom sector and
sustainability programs to demonstrate its environmental responsibility. Viettel invests
heavily in training programs to improve its workforce's skills and recruits top personnel.

Key performance indicators (KPIs) for each strategic aim guide strategic plan monitoring
and management. This granular approach lets you evaluate progress and identify areas for

30
improvement. Viettel must examine the plan's implementation quarterly to guarantee
agility and responsiveness and make informed modifications quickly. Annual audits also
assess financial performance and strategic goals, ensuring the organization is on track to
achieve its long-term goals.

Viettel actively identifies risks for each strategic target as part of the strategy plan.
Customized mitigation techniques and contingency plans for these risks prepare the
corporation for business uncertainty.

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 CONCLUSION

To put it briefly, the organization develops a set of justifiable tactical directions, goals,
and measures to help it successfully adapt its strategy based on information obtained
from both internal and external resource assessments of Viettel Group.

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