Marketing Strategy of Beeline Essay

INTRODUCTIONGTEL Corporation and VimpelCom penet vagabondd in Vietnamese telecom trade in 8th July 2008 under the brand name Beeline VN to provide GSM/ knock a elucidatest voice and data divine services to cover all Vietnam with over 86 wiz thousand thousand people. Until now, Beeline wants to award more(prenominal) strategies in order to achieve their objective which is growing their grocery place sh be to 30% same(p) the three giants Mobilephone, Vinaphone and Viettel. From the last study, IBD strategic hash out center hire identified and analyzed Beelines dodging as well as the prepare of the association in Vietnamese grocery. Furthermore, roughly suggestions for improving were as well as given. This overlay, hence, allow for evaluate all(prenominal) possible strategy for Beeline in many a(prenominal) aspects as well as propose a computer program for the around appropriate future strategies.MAJOR FINDINGSI. Possible secondary strategies for Beeline1. Identif y possible strategies.According to the last study, Beelines position in the BCG matrix is question mark due to the high growth rate of the industry while the market share of Beeline is relatively low (only 4%). Moreover, in the crop life cycle, Beeline has launched and introduced their services non for long. As a result, for three new(prenominal)s stages in the product life cycle (growth, mature and decline), Beeline fire implement close of the substantive growth, modified growth and retrenchment strategies. In order to identify those strategies, the close effective tool is Space matrix. build 1. BCG matrixFigure 2. Product life cyclea. Environmental constancyBy using the information from the external environment, we put forward identify as well as score the options in this factor. showtime of all, telecommunication market in Vietnam especially mobile network services has recently rocketed significantly. From the limited network until now, most of the places in Vietnam are coverage by applying many new technologies and liquidate the outdated one (GSM/EDGE, IP utilizing the NGN technology with absolute frequency band of 1800MHz) so as Beeline pass on not be lagged bottom of the inning by the three giants. Secondly, according to many economists, the lump rate of Vietnam is heretofore a double digit (14%) and it is considered as actually high compared to some former(a) developing country (in 1 digit).Now, the Vietnamese government is using pileus and floor equipment casualty as well as tariffs to modulate the inflation rate back to one digit. Furthermore, at the beginning, Beeline launched the most extraordinary low-budget services (Big zero) to market while other three giants price is such(prenominal) higher than Beeline. Therefore, the price range of Beeline with the average price of the industry is really high. Nevertheless, the last thing belongs to the environmental stability is breastwork to entry into the market.From the semipolitica l factor in the previous study, Vietnamese government is labor investments from marine to increase the FDI(Foreign direct investment), so that the tariffs and policy are absolutely motivate all(prenominal) opposed business like Beeline. Moreover, telecommunication is the most life-sustaining service in the modern world and this is in like manner an industry which gains the most attention from the politician. As a result, besides high initial investment, the barrier to entry of this industry can be scored4. b. fiscal strength pecuniary strength is a strong point of Beeline. According to the annual report of Beeline, the return on investment rate of Beeline lives in 4.2%for individually billion of dollars invested after payback. Besides, the profitability ratio of Beeline constantly stands above 50% (50.4%) and nearly equal to Mobilephone (53%). In another aspect, Beeline has 16years of history in the telecommunication market which means Beeline has experience in the curren t market.Until now, Beeline has provided 86 million mobile subscribers in total and it is till increasing while the price of services become cheaper and cheaper. Thus, they are able to hurl a large-mouthed economy of scale. If on that point is a potence plan, Beeline result not undulate to invest beca use of devouts and services they thrust the outstanding required for most of the plan by extracting a part in the total r eventideue of $2.27 and from the huge capital of Beeline. In the future, Beeline can check this strength to obtain their objectives especially modify new technology.c. Industry strengthIn this aspect, we can concern on three main factors Financial stability, option utilization and capital ardor. Firstly, the invite of using telecommunication services is unceasingly stable in most of the season, so that the revenue and financial status of this industry entrust always in a stable position. In the modern world, telecommunication is no longer a demand n otwithstanding a adopt of every citizen in the world. Thus, 6 will be the score for this option. On the other hand, the utilization of resources can in addition be taken full advantages by every business not only capital but in like manner human resources (think global, act local anaesthetic).For instance, Beeline hired a lord force from both oversea (Mr. Alexey Blyumin, CEO) and Vietnam (Mr. Nguyen The Binh, Deputy CEO) to administrate the bon ton in Vietnamese market. From the professional force, they will propose the best way of utilizing the financial resource in the most economical way. Last but not least, Beelineis a foreign group with a huge amount of capital available. Consequently, the capital intensity of Beeline deserves to receive the highest score.d. Competitive advantageAs aforementioned, Beeline has the capacity of providing services for more than 86 million people which is equal to the population of Vietnam while other three giants are in the process of signal coverage for the all told country. For Beeline, this objective will be obtained more easily than competitors (5years while others may take 10 years). From the statistic above, Beeline market share at the moment remain in 4% which is not high compared to the three giants. However, the service of Beeline step is quite acceptable according to the opinion of the students who are the target customers of Beeline. Moreover, the time for Beeline to launch a new service is quite short (about 3 months) whereas Viettel or Mobilephone takes 6 months or a whole year to firing off a new service (3G). To sum up, the whole information and synopsis will be shown in the table below to identify the position of Beeline in Space matrix.Diagram 1. Space matrix of BeelineWhen Beeline takes market sixth sense into circumstance, they should invest more on PR and marketing campaign to work awareness and reputation in the public. Moreover, improving after sales service will help Beeline gain customer loyalty for repeat purchasing. For market development, Beeline may find some other potential market in Vietnam especially in the agricultural areas but the living standard of the citizens at that place is at medium level (Dien Bien, Sapa, Tam Dao, etc). This strategy can be apply easily thanks tothe development of technology, so that Beeline clean nurture to concern about human resource or others factors. However, Beeline notwithstanding control to use other strategies as well at the rural area to compete with Viettel who have coverage most of the places in Vietnam. Next, product development strategy is about focusing on R&D.Beeline call for to create the new product line or add more value to the services like packaging, online counseling, etc. However, no matter what they do, they have to assemble to maintain their corporate image, their style (black and yellow) during the campaign. Finally, diversification will be the last secret weapon in the aggressive strategies. Specific ally, Beeline can use forward , backward integration and horizontal integration like construct more agencies throughout Vietnam or even providing mobile phone and internet, wireless, etc with the agreeable price like Viettel sell Iphone 3, internet network Dcom 3G.Invest more on new technology v v x x 13 3rd Table 3. Ranking and scoringFrom the table, it is noticeably that at that place are some tactics have the same score. Thus, it is depend on the manage board to decide which activities should do first or they contain to have a strategic allocation of capital to do these activities simultaneously (find the critical path). If Beeline allocates the resource as well as schedule in the most effective way, they will not only minimize but in addition increase their profit and market share. The first thing they have to do is all about people. Hiring the right people is the most great for all business because it is the people who create the product, seek for customer and take in b ack profit for the company. This activity will lead to a good result of other activities of Beeline. Thats why, they hired a professional Vietnamese psyche to be the vice deputy of Beeline. It is obviously that when you do nothing, you gain nothing but sometimes during the economist crisis, do nothing is a good strategy unless the cost of doing nothing lower than making a new plan.II. strategic plan of the most appropriate strategies for Beeline 1. Select the lowest strategiesAt the end of the day, after analyzed and evaluated every available strategy, IBD manner will propose Beeline to apply market penetration and product development. Others strategies like market development or diversification are slightly waste according to some internal stakeholders. Moreover, the three giants have successfully use market development and if Beeline do so, it is really hard to compete because even Ha Noi and Ho Chi Minh City which are the most potential market of Vietnam, Beeline have to ende avor to survive.For diversification, this kind of services play a role as a endorser only and most of the telecommunication company create their own supply, so that Beeline could hardly to do so. make a new product seems tobe hard for Beeline because they have to maintain their style and corporate image. Thus, just do what you are best. At the moment, there are some strategies which is work for Beeline like Cost leadership or differentiation (for different services). However, when Beeline success like Viettel, cost leadership will not necessary like Viettel in the past, they launch out many cheap services but now it rarely has new promotion.2. Strategic planImplementation is most difficult part which every company faces. Making a plan is easy but when they implement it, they will face many unexpected problem like physical risks (an bus may got an accident, etc) or business risks, financial risks, natural risks, etc. As a result, there need to be a detail plan and closely control dodge. This plan will be taken supercharged by the commission board as well as every departments of the company.a. Management boardManagement board is the head of the company, so that Beeline of necessity to hire a professional person to take charge this position. First of all, the senior director have to make a occur trance and mission as well as objectives for every department to relieve deeply for them to work in the right direction. This is called envisioning. Apart from that, controlling and encouraging will en sure every department especially merchandising and Financial Department support each other and the manager also have to support them not only for professional issues but also prove their plan. By recognizing contribution with fair wages and salaries, Beelines manager will not only motivate them for increasing productivity but also gaining their respect.Last but not least, in order to implement well, Beeline need to apply both intended (deliberate) and emergent (r ealize) strategies because by doing so, they will not only have clear and reality mission from the information tack from functional department but other department also have a clear mind about their mission to implement the strategy. For the managers, by creating the responsibility charts will help Beeline manager have a clear and logistic plan. A clear objectives, sub-objectives, general program and make an guess will set a mile stone for the employees to achieve and also make a competitive environment when the manager utilize with his/her motivating program.b. DepartmentsWorking as a team is not about in a inside but also among departments together. Marketing department will take charge of making plan to build reputation and promote the profit of Beeline. However, Beeline cannot use all of their money for advertising. This is the time for financial department, the chief financial officer (Chief Financial Officer) will calculate the cost of advertising and ask the CMO (Chief Mar keting Officer) to adjust the plan to match with the budget of the company.However, in order to have such a professional labor to do so, the Human resource department has to ask other department for their demanded labor. Base on that, the manager of HR department will seek and find the right person for that position especially the labor force for PR activities. There are others department which Beeline needs to concern but as a telecommunication provider, those three departments are the most important.c. allocate resourcesAs a contributor of mobile network, the human resource of Beeline need to be allocate most in the sales department while other professional one will place in the vital position (manager, team leaders). Moreover, Beeline also needs to contribute the services fairly between the southern and northern of Vietnam so as not face the overload problem in one territory. About financial issue, minimize expense by hiring the local people and maximize the profit because the local people know their customers best. Moreover, always checking the budget will help Beeline have a timely adjustment. All of the resource are available in the society both HR (in the society or university) and financial (bank, issuing share, etc). When Beeline become the one of the celestial king of Vietnamese telecommunications market, they can have another network system to allocate the resource not only the urban areas but also the entire country.CONCLUSIONThis report has made a comprehensive paygrade of many strategies available for beeline. However, the most effective strategies which Beeline needs to take into consideration are market penetration and product development. Furthermore, not only the management board of Beeline must envision but also make sure every department support and working together as a team.REFERENCES* Product life cycle http//www.businessdictionary.com/definition/product-life-cycle.html * Beeline VN information* http//beeline.vn/vn/pages/news.aspx?id =72* http//www.maivoo.com/2011/03/29/Suc-tang-truong-cua-thi-truong-vien-thong-manh-tro-lai-n324141.html * http//en.beeline.vn/en/pages/content.aspx?id=100* http//ebrandium.com/thu-vien/marketing/mot-chien-luoc-tiep-thi-toan-dien-case-beeline-vietnam.html * http//vccinews.vn/?page=detail&folder=96&Id=276 http//vnexpress.net/gl/kinh-doanh/2009/08/3ba11ea3/* Secondary data* BPP Professional command, 2004, Business Strategy, London BPP Professional Education * BPP Professional Education, 2004, Business Environment, London BPP Professional Education * Duc, Nguyen Anh (2010), Marketing enquiry of transmission and recommendations for VIETTEL NEUs MBA course. * Tuan, Doan Anh (2010), Developing the services of capital of Vietnam telecommunication company, NEUs MBA course. * General Statistic Office, 2011. Social economic in 2010 Online Available at http//www.gso.gov.vn/default.aspx?tabid=621&ItemID=10835 Access April 11, 2011 * Scribd.com, 2010. Beeline Vietnam marketing strategy Online http//www.scribd.com/doc/28790390/chi%E1%BA%BFn-l%C6%B0%E1%BB%A3c-markeeting-c%E1%BB%A7a-beeline * Binh, Vu Quoc (2011) Bo co v tnh hnh v nhng vn t ra trong pht trin kinh t x hi ca th H Ni v c nc nhng thng u nm 2011 nhng kin ngh, gii php Hanoi researching socio-economic development study published. * Cuong, Vu Huy (2011) Business strategy assignment 1 * Beeline strategies