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

1
 Agenda
• Dominant traits
• Five forces analysis
• Strategic group map
• Key success factors
• Industry assessment

2
 Dominant traits
• Currently 7 network operators:
– Mobifone - Viettel
– Vinaphone - E-mobile
– Beeline VN - S-fone
– Vietnamobile

• With the launch of new entrant:

Indochina Telecom
3
Largest Mobile markets in Asia Pacific
Q1/2009

4
(bieu do 2)

5
The growth rate of mobile subscribers in Vietnam
from 2003-2010

6
 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

7
 Dominant
traits
• Technology:
– Now: GSM – 2G,
CDMA - 2.5 G
– Future: 3G

8
 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)

9
 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

Suppliers Low Rivalry MediumCustomers

Low
Substitutes

11
Strategic Group Map
 Key success factors
• Service quality
• Promotion
• Customer service and added value

13
Industry assessment
• Attractive market
• High competitiveness
• High end saturation
• Rapid growth but
unstable

14
 References
• http://www.thethaovanhoa.vn/
• http://english.vietnamnet.vn/
• http://www.mobifone.com.vn/web/en/
home/news.jsp?id=2706
• http://vovnews.vn/

15
Q&A

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