Strategic Viettel Essay

Words: 1316
Pages: 6

As the forth mobile network to operate in Vietnam, Viettel Group has achieve certain remarkable accomplishments during a decade of operating due to its effective orientation and strategy. In this part, Viettel’s business strategy will be mentioned and analyzed to assess its effectiveness with respect to Viettel’s success.

2.1. Viettel’s business strategy: Growth as a low-cost provider

Concerning telecommunication business, Viettel, since its forming, has always made move to improve its competitive and performance as a low-cost provider as to serve a broad spectrum of customers.

• Low-cost provider: Viettel has developed a wide range of subscribing packages with notably low cost for particular groups of targets such as Hi-school,

At the end of 2010, Viettel has announced the 42% mobile phone market share and 50 million subscribers; although this number need to be tentatively judged considering its source, the number is still particularly notable.

Viettel is also the first Vietnam network provider to offer services in foreign market and it has succeeded in its investment. In 2010, Viettel received $222 million revenue in Laos and Cambodia, ranking first place in infrastructure and subscribers in Cambodia and first place in Laos in network infrastructure (Le Mai, 2011) .

However, the allegedly lowest mobile price provider position of Viettel has been endangered since the race of reducing price become vicious in 2009. June 2009 marked the first time that Viettel’s mobile network price was higher than VinaPhone and MobiFone by VND10/minute for both prepaid and postpaid (Tran Luu, 2009). After the major reduction of mobile network price in July and August 2010, which was up to 10-15%, VNPT’s price for both prepaid and postpaid is aproximately VND10/minute lower than Viettel, and Vietnammobile, who, among the four smaller network providers, bravely joined the reduction race, even offered a lower price after the adjusment (VnMedia, 2010). This may pose a real threat to Viettel regarding its low-cost strategy.

To sum up, Viettel’s strategy has brought remarkable success,