Vietnam's Cellphone Service Industry Analysis

Industry Analysis

Vietnam’s Mobile Telephony Industry Lecturer/Tutor: Quan A.Nguyen Presenters: Tran Bich Diep Nguyen Ha Linh Pham Thi Tra My Nguyen Thi Nhu Ngoc Tutor: 3 BA 06

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Agenda • • • • •

Dominant traits Five forces analysis Strategic group map Key success factors Industry assessment

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Dominant traits • Currently 7 network operators: – Mobifone – Vinaphone – Beeline VN – Vietnamobile

- Viettel - E-mobile - S-fone

• With the launch of new entrant: Indochina Telecom 3

Largest Mobile markets in Asia Pacific Q1/2009

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(bieu do 2)

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The growth rate of mobile subscribers in Vietnam from 2003-2010

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Dominant traits • Nationwide competitive rivalry • Less product differentiation due to the prolong price war • Demand condition: – High end customers: saturation – Low end: still high demand

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Dominant traits • Technology: – Now: GSM – 2G, CDMA - 2.5 G – Future: 3G

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Five force analysis • Rivalry: – The frequency of promotions – More suppliers but less differentiated products – Profitability

• Threat of new entrance: Full MVNO – Indochina Telecom – Vietnam Television Corporation (VTC)

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Five force analysis • Threat of substitute services: – Home phones – Fixed line wireless services

• Bargaining power of suppliers: • Bargaining power of customers:  Collecting strength of five forces is slightly weaker than normal: ideal for investors 10

New Entrants

Moderate Low

Rivalry

MediumCustomers

Low Substitutes

Suppliers

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Strategic Group Map

Key success factors • Service quality • Promotion • Customer service and added value

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Industry assessment • • • •

Attractive market High competitiveness High end saturation Rapid growth but unstable

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References • http://www.thethaovanhoa.vn/ • http://english.vietnamnet.vn/ • http://www.mobifone.com.vn/web/en/ home/news.jsp?id=2706 • http://vovnews.vn/

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