Introduction

FPT telecom was established on 31st, January, 1997 which has known as th leader IT
company inVietnam with many achievements as Sao Khue award, Viet Nam Golden Star
award and so on. It also been named Best Enterprise Partner of the Year for many years by
Cisco, IBM and HP. Beginning with 4 members, up to now, FPT has developed rapidly with
3200 employers with 40 branches across the country and appearence in 36 provinces and
cities. FPT has secured the trust of thousands of business and million of consumers. With
ambition to become group's leading infrastructure development and providing electronic
services for e-communities. Base on combination between internal and external factors, FPT
telecom have to built up their strategies. Hence, it is very importance to analyse and evaluate
the effectiveness of their strategies

Task 1:
1. The context of business strategy
Johnson and Scholes (Exploring Corporate Strategy) define strategy as follows:
"Strategy is the direction and scope of an organisation over the long-term: which achieves
advantage for the organisation through its configuration of resources within a challenging
environment, to

meet

the needs of markets and to fulfil stakeholder expectations". To

success in business, FPT have to clear about their vision, mission, goals and objective, values
and stackeholder which are basic elements to set up strategy, especially FPT telecom is group
which content 7 sevices or we can talk SBU (strategic business units) which include in
telecom, software, information system, education, trading, information service and
investment. In this case, we just focus on trading field of FPT FTG (FPT Trading), which
has outstanding business performance and growth rate, to analysisis strategies of them
Vision: FPT strives to be a company guided by technological innovations, committed to the
highest level of customer satisfaction, contributing to national prosperity and providing its
employees with the most favorable work environment possible, enabling them to reach their
full potential in their professional careers as well as their spiritual lives
To success in long-term, corporation has to set up their own vision which use as orientation
the way of development and what they want to achieve in the future. The vision motivate
employees and set the direction for the development of corporation. Base on FPT vision, FGT
also set up their vision. In this case, FTG bring to us clearly vision which show that they not
only care about their own but also care about employers. They provide the most favorable
work environment possible to employess and bring statisfaction to customers. They also give
information to attracted the attention of stakerholder and assess the potential of corporation.
Mission: For the E-citizen
Mission statement reflects every facet of business, this also tell why organization exist and
what is the organization is. Organizations mission statement is brief description of a
company's fundamental purpose and like steps to helpp organization to achieve vision. FPTs
strategy through 2015 bears the name For the E-citizen and can be described as follows:
FPT strives to be a leading corporation in terms of infrastructure development and eservices provision for the E-citizen community.

 IT and telecommunications will continue to play the role of an essential foundation in

the trend toward digital convergence so as to provide the most convenient products
and services to E-citizens.
Aims at creating valueadded chains to fully satisfy the needs of E-citizens.
They set up mission base on real situation, they know what is customer need and update
world and Vietnam development. In vision, they said that they wanted to become a company
guided by technological innovations. And they know that IT and telecommunications will
have importance role in social development and that is also which they focus on to develop.
Development in IT and telecommunications accompany with demand using e-service. Hence,
you can see that mission and vision in here have relate with each other.
Value: FTG spirit
FTG spirit include the core values which was built in the companys difficult time during
company development. Thought that, they learn how overcome challenges and this is
importance part of FPT which set up FTG culture and FTG brand. The core values built the
FPTs success in 20 years:
Respect-Innovation-Teamwork
Dedication-Exemplariness-Perspicacity
They respect idividual but also pay attention to teamwork. Each FTGers have responsible to
protect their value which maintain FTG success after success.

Goals and objective:

Simply, Goals is what organization want to achive or gain and

objective is more detail than goals and it also steps take to reach the goals. Mr. Le Quang
Tien (Vice Chairman of Management Board, Vice General Director) stated FTGs goals
in2009:. FTG revenue by 5% GDP of Vietnam. With Vietnam GDP growth from 5-9%
a year, FTG do to make $5 billion in revenue in 5-7 years. But, at first, FTG must
maintain and develop what FTG has been having. Goals should be SMART (SpecificMeasurable- Attainable- Relevant and Time bound) and in this case FTG use it effectively.
FPT is one of the biggest group in Vietnam, and FTG stand as number one in the field
of product distribution of information technology and telecommunications in Vietnam. So
their goals is clear and achieved. Due to goals, FTG also set their objective but with
limitation of imformation and other impacts. Thus, I only show objectives which given in
2011.

FTG targeting 14.8% growth in sales and profit before tax growth of 20.7%
(compared with 2,023,193 in 2010).

FTG Corporation will be converted into one-member limited liability companies by

FPT Corporation is the sole owner.

Core competences:
Core competencies is important capabilities which support company achieving advantaced
competencies and that is powerful tool to comapre with other competitors. In other way, we
can see that as aunique ability. FTG also have their core competences which make them
become difference than others.
-

Their experience in distribution and relationship with partners: As I told before FTG
is biggest company in in the field of product distribution of information technology
and

telecommunications

in Vietnam. They can do that because FTG has the

largest distribution network in Vietnam with over 1,500 agents in 64 provinces and
cities with 1549 employeers. They are also reliable partner

of more than 60

prestigious global vendors including IBM, Lenovo, Microsoft, HP, Nokia, Toshiba,
Oracle, Samsung, Cisco, Dell, Motorola, Apple, Intel, Vertu, Symantec, Nec, Seagate,
Logitech, Foxconn, MSI, and Sandisk. Do not stop at there, FPT want to create
partnership with other international manufacturers, and in 2010 they are success to
contract with Gigabyte, Mitsumi.
-

The lead in manufacturing "Made-in-Vietnam" technology products: Besides

distribution of information teachnology, FTG also investment into product their own
product F-store. The F99 series mobile phone, which was producted by FTG, and
laster version double-SIM multi-function F993G phone have both gained success. To
release in 2002 and up to now FPT's Elead computer has continuously popular and
gets many awards.

2. The signification of stakeholder.

Stakeholder has very importance role in each companys performance which has direct or
indirect

stake

in

an

organization

because

it

can

affect

or

be

affected

by

the company's actions, objectives, and policies. But in some case their influences are in
difference level so we can divide them to 3 types: internal stakeholders, connected
stakeholders and external stakeholders.

Internal stakeholders:
They are people work for FTG as employees, managers and affect to day-to-day activities of
the corporation. Board of managers are every importance they set up companys strategy,
making decision, controlling finance. They have responsible with companys success and
failure. In each department, managers have responsible to control activities and ensure they
comply with the proposed plan and link other departments together. With FPT, they require
Leaders at different levels the keepers of this spirit need to be dedicative, exemplary and
perspicacious. Only by doing so can FPT develop and survive the time. Throught that, you
can see that managers have strong affect on how to FTG run. If managers have indirect to
company, eployees will have direct to product and company. Especically, FTG is distribution
of information technology, employees work as saler who will direct contact with customer
and throught those people customers will built up FTGimage in there mind. Because of
working direct with customers or products, they can come out good ideas which can help
FTG improve themselfe. If employees misunderstanding about companys strategy, company
will never and ever achieve the success.
Connected stakeholders:
This group will include shareholders, customers, banker and suppliers, who invest or relevant
to company situation. Shareholders or stockholder where company can raise capital to run
their business, thus they have influence to finance field of company. And how many shares
which they holding are also tell what their voice power is. They wil have effect to voting,
making decision and so on. Besides that, bankers and suppliers also impact to FTG
development, especically with distribution of information technology field, hence their
suppliers in here is Toshiba, Oracle, Samsung, Cisco, Dell, Motorola, Apple and so on. FTG
need set up long-term contracts with detail clearly about product, prices, responsiable and so
on. If FTG has good relationship with supplier they can have competitive price advantage
and diversity product. And company can ensure about a stable source of product without
worrying about the scarcity. Any company need connecting with bank as like financial
solution but it also risk with higher interest charges. Finally, satisfaction customers is the aim
which any company want to achive, through that they can gain more profit and take to steps
to their goals. In the field of FTG activity is a field which is very sensitive with customerss
assessment. If they lost their reputation which they had spent many time and effort to built
up through years, they also lost good connecting with customers and recieve the decrease in
revenue.

External stakeholders
With external stakeholders, we have goverment and competitors. Goverment can have affect
to business in many ways such as policy, tax, standards and so on which make FTG has to
change themself to suitable with it. Besides that, with goverments support FTG can become
more success in contract with other intertional supliers and essy to earn more maket share in
Vietnam and penetrate to ASIA and export their product. CMS, CMC and Thanhgiong
company is current competitors of FTG. Now, FTG is leader of distribution of information
technology in Vietnam but they have to improve themself to maintain this position.
Task2:
1. External enviroment
External enviroment is factors surrounding organization which influence to company making
desicion and activities, base on that compnany can determine its opportunities and risk. To go
more detail, we will focus on analysiss PESTEL and Porters five forces.

1.1 Analysing PESTEL:

PESTEL stands for Political, Economic, Socio-cultural, Technological, Environment/

ecological, Legal which bring influence to making decision and set up strategies from outside
company.
i.

Political-legal factor
Political-legal has affect to many facts and they also set up standers which FTG has to
pay attention and implement such as tax law, employer law, and so on. Vietnam has

stable political, hence FTG can stable development without worrying about war,
violence, political instability and so on. But, the fact that, Political-legal in Vietnam
quite unreasonable and cumbersome which hinder the development of the company
such as wasting time and money to get permit. Nowadays, Vietnam also join in many
international organization such as WTO and ASEAN. Thus, this is chances for
company expand their business and protect fair competition in business in both
outside and inside company. But they also comply the rules of

international

organization
ii.

Economic factor
After recession in 2008, world economy fell in crisis seriously and many company
was bankrupt. And of course, it also bring ifluence to Vietnam economy. But up to
now, Vietnam economy is growing steadily again. And FTG had overcame it with
revernue is 13,339,409 million VND and profit before tax is 411,834 milion VND.
FTG and other company was in net business which we can call economy and which
occur in that can bring influence to other.

iii.

Socio-cultural factor
In any field of live, socio-cultural always has influence to and base on difference on
location, demorgraphy and life style will have different requirement and affect. If
company does not care about socio-cultural they can be accepted by customer. Turn
back this case, Vietnam has larger population (more than 86.936.464) and young
people take large persentage and Vietnam economy grow rapidly so this is change for
FTG expand their business. FTG is run by Vietnamese people so they what band
people prefer to use. In this perious, FTG has just distribute information technology
within Vietnam and not penetrate in other countries. But in long-term, I believe they
will develop with incredible speech and penetrate in international trading soon.

iv.

Technological factor
Nowaday, techonology is raise in other level than 10 years ago, almost countries,
almost industry always focus on technological effort. And in some case, it will
decision failure or success. FTG work in technology field, thus, technological factor
will have importance affect to development. Using internet as a channel to
communicate with customers, in their homepage, they can update their information
about their product, promotion, events and so on which will attract customer attention.
They can add customer information as database in software and it is eassier to satisfy
customer and creat high quality service. Predicting market and timely adjustment of

market changes are the advantages what technology brings. With technology be
adding to their prodduct, which we call made by FTG, which can make it become
more perfect and useful. And this can become competitive advantages of FTG.
1.2 Porters five forces

In any industry, Porters five forces can give us a clear picture of competitive enviroment,
competitive opportunities and threats. Thus all impact or affect will be identified. And now,
we will apply Porters five forces into FTG and find down what is their opportunities,
threats and so on.
Threat of new entrants:
In technology and distribution of information technology field, FTG is leader in term
of scale and revenue. Net business which bring most competitive advantages to FTG
with the distribution network of more than 1,500 retailers across the nation and they
also contract with international technological company to exclusive distributor of
information technology product. However, this kind of business (distribution of
information technology) is not required a large economic of scale and not need huge
of capital but to reach the high level like FTG is not easy. FTG also have difference
in product, F-store with The F99 series mobile or FPT's Elead computer and Hence,
the barriers to entry is high.
Bargaining power of buyers:

FTG work in techology field which like importance part of our live and noone can
deny its useful. For example, we need mobile phone to keep connect with other
people, using it like useful tool in working, studying and also entertaiment. But,
customers can tend to cut their spending on technology when they have problem in
finance. Instead of buying expensive items, they will buy sometime with normal
prices or choice other brand or distribution which have lower price. As result, FTG is
affected by their customer and bargaining power of buyers is quite high.
Threats of substitute products and service:
In any field or business threats of substitute product and service alway have big
influence to corporation. In this case, FTG does not have many afect from substitute
products and service because customers can buy expensive or cheaper product but
thay can substitute landline telephone for mobie.
Bargaining power of suppliers:
As distribution company, FTG has been affected by suppliers. Kinh Do always
cooperates with both domestic and abroad prestigious suppliers in order to exploit the
good quality. Many company as Samsung, Nokia, LG and so on have factors in
Vietnam, but, some others FTG has to import form outside such as Apple, Dell. With
product has imported from outside, FTG has to pay more fee so prices will higher,
hence, bargaining power of suppliers has influence to FTG.

To sum up, after analysising and assessment, we saw which will have influence to FTG and
also the level of influence. So, FTG should thinks about other ways to develop their products
which can create competitive advantages for them.

2. Organizational audit.
2.1 Resources audit:
The resource audit identifies the resources available to a business and also evaluate the level
of performance of business. In this term, we will studying about 4 main part: Financial
Resources, Human Resources, Management Resources and Intangible asset:
-

Financial Resources:
Financial rescources includes all factors which relavate to short term and long term
revenue and working capital. A strategy needs to be very carefully managed from a
finance point-of-view. FPT capital is 372,600,000,000 VND. in 2010, FTG has
reached 104.9% of plan sales, 5% growth than 2009 (13,339,409 in 2010 and
12,744,394 in 2009). In particular, gross profit 107.8%, 26.6% growth
before tax

was 107.5%

increase 13%

earning

per

shares

in profit
reached

110.8%, 113.3% growth. Base on data above, we can say that FTG has strong
financial resource.
-

Human Resources:
Throught years, FTG has built professional management, who have many experience
in investment and management, and high quality of emlpoyees who can come out
greaat idea to create new trend. They also create good condition of working nad built
up FPT spirist in each staff or manager. Taking employees form FPT university and
training them to meet FTG requirement is good resources.

Managment Resources:
More than 1,500 retailers across the nation and always meet requirement of strategy
or buyers. But in this case, FTG also create professional managers and require that
leaders at different levels need to be dedicative, exemplary and perspicacious keeping
strong link between the departments to take FTG to success.

Intangible asset:
The intangible resources of a business is very crucial. FTG are leader in this field in
Vietnam and of course they has built strong brands as the key factor in whether a
growth strategy is a success or failure. Intellectual property also the tool to protect
their own product. They also set up mental work responsibly and efficiently.

2.2 Value Chain

Internal envirorment include factors within organization which influence to making decision
and activies. Base on the value chain, we have 9 factors which divide into 2 main part:
primary activities and support activities, which combinate with each other.

Primary activities have direct relation to production, sales, marketing, delivery or service.

Primary activities

Description

Inbound logistic

Recieving and Storage products or items to ensure

about quality of product

High quality of employess to take care about receiving,

handling and storing product to take them into
warehousing, transport, so on.

Operations

FTG mostly develop distribution of information

technology from manufacturers so they need to product
Classification, set prices, check quality and so on

Training staffs and provide good condition of working.

Making mobie or computer by items.

FTG has strong net distribution with more than 1,500

Outbound logistics

retailers and 1,549 staffs across the country to serve

the needs of all customers
-

Base on characteristics of goods, stroring product and

its distribution to customer packaing, testing, diverly
and so on

Marketing and sales

Posters, newspaper, television and internet are taken

full advantages

The distribution and retail channels of FTG created

trust and confidence of customers throughout the years.

FTG becomes distribution company which has largest

net distribution in this field

Their promotion in especical event such as starting new

semester, Tet holiday and so on also attack customers

After sales service

The service centre with high quality of employees and

modern

to

statisfy

customer

requirement

as

maintenance and of course

-

With each product, they also have warranty product.

Support activities include procurement, techonology development, human resource

management, Infrastructure to support the primary activities.

Support activities

Description
-

Procurement

Finding serouce and negotiation with

suppliers

make

sure

diverse sources.

that

they

can

get

Human resource management

Taking employers for FPT university or

other resource after that they train
human to meet the training needs and
capacity building, skills and qualities
consistent with the development of the
company present and future.

Professional

management

has

importance position to make sure that

can get reasonable policy or strategy
Technology development

FTG

alway

update

technology

information and using sortware to

control every thing better, and predict
situation which they have to face in
future.
-

Infrastructure

With over 1,500 agents in 64 provinces,

FTG has largest net distribution in this
field in Vietnam.

The quality of each agents also have

influence for the sale.

Task 3
1. SWOT analysis:
Strengths
-

The leader in

Weakness
-

distribution of

product

information technology

competitors.

in Vietnam/ Famous

brand name in Vietnam

market
-

Not much difference in

with

Just

other

exploit the

domestic market.
-

The lead in

Heavily

reliance

on

some products/brand

manufacturing "Made-inVietnam" technology

products.
-

Effective distribution
channel in domestic
market.

Strong revenue and

capital

Opportunities
-

SO strategy

Large domestic market

(nearly 9 million)
-

Penetrate

when

technology and their

is

member of WTO and

of information

market

Vietnam

share with distribution

the

international

Expand more market

WO strategy

own product as F-store.

-

Penetrate into

Asian.

international trading

Do not have too much

with support from

big competitors

international treaty.

To fully exploit the

domestic market.

Joining into
international market.

Threat
-

Changing of Consumer

ST strategy
-

Price Index (CPI) can

differentiation, create a

affect

trend in distribution

to

consumer

behavior.
-

Focus on

Exchange rate between

Industry
-

WT strategy
-

Market research before

importing products

Monitoring changes
in market

Implement their all

domestic currency and

product, which called

foreign currency

Made-by-FGT

Influence from small

development

competitors which is
small but many and
customer preferences

2. Strategic positioning techniques.

Base on FTG situation, Porters Generic Strategy are tools that help businesses set the
direction for the business strategy.
Porters Generic Strategy
Porters Generic strategy or we can call "generic strategies", because they can be applied to
products or services in all industries, and to organizations of all sizes and bring out good
result. As all thing below, we realize that FTG has many core competitive which can up grade
to competitive advantages while this strategy is for competitive advantages.

Cost leadership: FTG should care about being lowest cost producer in the industry as whole.
The cost leadership strategy takes a look at how expenses can be minimized but still keep
quality of product or services. They can use Just-In-Time tool to do that which do not need
more storage in warehouses or good relationship with supplier is other factors to help them
success in this strategy.
Differentiation: Distribution information of technology takes large in FTG business, The
differentiation strategy of BMW is focused on making difference in services such as salers,
product warranty and so on. Product with their logo is not only the one that makes products
of the company different but also but also claim their brand. Futhermore, they should styding
information of technology market and customers characteristics to product moblie or
computer which bring FTG brand.
Focus: The focus strategy aims to a narrow segment such as with luxury product as Verture,
Apple or popular items with cheaper prices which suitable with students or workers.
Differentiation focus strategy helps FTG can focus on each segment to get effective
exploitation.

FTGs generic strategy in the distribution of information of technology market lies on

product focus which is evrry suitable with retail market. Focus on each group helps FTG can
set up strategy easier to exploit this segment base on their characteristics. This allows FTG
become more flexciable and expand more their business. Cost leadership differentiation are
also good choice but FTG can apply them because they is distribution company and they are
more dependant on supplier than other industry o it is hard to apply it.

Conclusion
To more understand about FTGs successful. This report analyzes and conducts some
applying strategy methods such as considering to significance of stakeholder, factors of
internal and external environment and SWOT analysis to determine strength, weakness,
oppotunities or threats of the FTG. In addition , applying strategic plan for FTG in
developing, base on all thing was analysised above.

Reference
-

Business strategy - Business essentials supporting HND/HNC foundation degrees2010

Strategy: the Strategic Audit

http://tutor2u.net/business/strategy/Strategic_audit.htm

Strategy: Resources of a business

http://tutor2u.net/business/strategy/resources.htm

http://fpt.com.vn/vn/

http://ftg.com.vn/