Marketing Strategy of Beeline Essay

INTRODUCTIONGTEL Corpoproportionn and VimpelCom penet arrayd in Viet bese telecom grocery in 8th July 2008 under the brand name Beeline VN to provide GSM/EDGE voice and info serve to c solely(prenominal)where all Vietnam with over 86million people. Until now, Beeline wants to select more than(prenominal) strategies in put to achieve their objective which is growing their musical weeet portion out to 30% the wish swell ups of the triad giants Mobile retrieve, Vinaph bingle and Viettel. From the last study, IBD strategic counseling burden adjudge identified and privyvass Beelines dodge as wellhead as the puzzle of the connection in Vietnamese grocery. Furthermore, roughly suggestions for modify were alike given. This report, hence, get out evaluate both realiz qualified schema for Beeline in many aspects as well as propose a  jut for the around appropriate future strategies.major(ip) FINDINGSI. Possible alternative strategies for Beeline1. Identify p ossible strategies.According to the last study, Beelines position in the BCG intercellular substance is question mark due to the towering growth rate of the perseverance bit the trade sh be of Beeline is relatively low ( precisely 4%). Moreover, in the product flavour roulette wheel, Beeline has dismissed and introduced their serve non for long. As a result, for collar some otherwise(a)s stages in the product life cycle (growth, suppurate and decline), Beeline stack implement or so of the indispensable growth, limited growth and retrenchment strategies. In point to pick up those strategies, the closely powerful tool is position matrix.Figure 1. BCG matrixFigure 2. Product life cyclea. Environmental stabilityBy utilise the cultivation from the external surround, we can identify as well as score the options in this f shapeor. first gear of all, telecom merchandise in Vietnam especially vigorous interlocking service has recently rocketed significantly. From the limited mesh cook until now, around of the places in Vietnam be reportage by befooling many bargon-ass technologies and pine a flair the outdated one (GSM/EDGE, IP utilizing the NGN utilise science with frequency band of 1800MHz) so as Beeline provide non be lagged stub by the triplet giants. Secondly, according to many economists, the inflation rate of Vietnam is still a double digit (14%) and it is considered as sincerely high compared to other developing republic (in 1 digit).Now, the Vietnamese government is apply ceiling and floor footing as well as tariffs to modulate the inflation rate back to one digit. Furthermore, at the beginning, Beeline launched the close to extraordinary cheap serve (Big zero) to commercialize while other three giants damage is much higher than Beeline. therefore, the price range of Beeline with the average price of the industry is actually high. Nevertheless, the last thing belongs to the environmental stability is barrier to launch into the market.From the policy- do factor in the previous study, Vietnamese government is encouraging investings from oversea to gain the FDI (Foreign direct investment), so that the tariffs and policy are absolutely motivating any immaterial business like Beeline. Moreover, telecommunication is the most vital service in the recent world and this is alike an industry which gains the most attention from the politician. As a result, as well high initial investment, the barrier to entry of this industry can be scored4. b. monetary cleverness financial strength is a strong point of Beeline. According to the yearly report of Beeline, the return on investment rate of Beeline re principal(prenominal)s in 4.2%for apiece billion of dollars invested after payback. Besides, the shekelsability ratio of Beeline perpetually stands above 50% (50.4%) and intimately live to Mobilephone (53%). In another aspect, Beeline has 16years of register in the telecommunication market which heart and soul Beeline has experience in the current market.Until now, Beeline has provided 86 million mobile subscribers in fundamental and it is till increasing while the price of run become cheaper and cheaper. Thus, they are able to declare a large prudence of scale. If there is a potential devise, Beeline go out not hesitate to invest because they shit the large(p) required for most of the broadcast by extracting a part in the total revenue of $2.27 and from the huge majuscule of Beeline. In the future, Beeline can maintain this strength to obtain their objectives especially updating red-hot technology.c. Industry strengthIn this aspect, we can stir on three main factors pecuniary stability, electionfulness utilization and expectant intensity. Firstly, the demand of using telecommunication services is always stable in most of the time, so that the revenue and financial post of this industry get out always in a stable position. In the new(a) worl d, telecommunication is no longer a demand plainly a want of either citizen in the world. Thus, 6 leave be the score for this option. On the other hand, the utilization of resources can also be micturaten full bring ins by every business not only slap-up plainly also human resources (think global, act local).For instance, Beeline hired a captain draw and quarter from both oversea (Mr. Alexey Blyumin, CEO) and Vietnam (Mr. Nguyen The Binh, Deputy CEO) to parcel out the company in Vietnamese market. From the master key force, they forget propose the best way of utilizing the financial resource in the most economical way. Last notwithstanding not least, Beeline is a foreign group with a huge amount of capital unattached. 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 Vietna m while other three giants are in the process of intercommunicate reportage for the whole country. For Beeline, this objective leave behind be obtained more easily than competitors (5years while others may take 10 years). From the statistic above, Beeline market share at the moment endure in 4% which is not high compared to the three giants. However, the service of Beeline quality is preferably 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 improvident ( somewhat 3 months) whereas Viettel or Mobilephone takes 6 months or a whole year to resign a new service (3G). To affectionateness up, the whole information and analysis will be shown in the table downstairs to identify the position of Beeline in Space matrix.Diagram 1. Space matrix of BeelineWhen Beeline takes market sixth sense into consideration, they should invest more on PR and merchandise campaign to crap a wareness and reputation in the public. Moreover, improving after sales service will help Beeline gain customer loyalty for repeat purchasing. For market emergence, Beeline may uprise some other potential market in Vietnam especially in the campestral areas but the living standard of the citizens at that place is at medium level (Dien Bien, Sapa, Tam Dao, etcetera. This strategy can be apply easily thanks to the culture of technology, so that Beeline just relieve oneself to extend to about human resource or others factors. However, Beeline still waste to use other strategies as well at the agrestic area to compete with Viettel who mother coverage most of the places in Vietnam. Next, product outgrowth strategy is about focusing on R&D.Beeline subscribes to become the new product line or add more value to the services like packaging, online counseling, etc. However, no case what they do, they rescue to assemble to maintain their in incarnated image, their style (black and yellow) during the campaign. Finally, diversification will be the last secret weapon in the aggressive strategies. Specifically, Beeline can use preliminary , backward integration and horizontal integration like building more agencies end-to-end Vietnam or even providing mobile phone and internet, wireless, etc with the attractive price like Viettel grapple Iphone 3, internet net take to the woods Dcom 3G.Invest more on new technology v v x x 13 3rd Table 3. Ranking and levelingFrom the table, it is noticeably that there are some tactics have the same score. Thus, it is front on the manage get along with to hire up which activities should do first or they acquire to have a strategic apportionment of capital to do these activities simultaneously ( decide the little path). If Beeline allocates the resource as well as schedule in the most effective way, they will not only diminish but also increase their profit and market share. The first thing they have to d o is all about people. Hiring the justifiedly people is the most important for all business because it is the people who create the product, sample for customer and bring back profit for the company. This activity will lead to a good result of other activities of Beeline. Thats why, they hired a superior Vietnamese person to be the vice deputy sheriff of Beeline. It is obviously that when you do cypher, you gain nothing but sometimes during the economist crisis, do nothing is a good strategy unless the cost of doing nothing lower than make a new invent.II. Strategic figure of the most appropriate strategies for Beeline 1. Select the nett strategiesAt the end of the day, after analyzed and evaluated every available strategy, IBD agency will propose Beeline to apply market brainwave and product development. Others strategies like market development or diversification are somewhat risky according to some intimate stakeholders. Moreover, the three giants have successfully a pplied market development and if Beeline do so, it is really securely to compete because even Ha Noi and Ho Chi Minh City which are the most potential market of Vietnam, Beeline have to endeavor to survive.For diversification, this kind of services tamper a role as a contributor only and most of the telecommunication company create their own supply, so that Beeline could hardly to do so. Making a new product seems to be 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 stages. Making a plan is delicate but when they implement it, they will face many unexpected problem like physical risks (an handler 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 placement. This plan will be taken charged by the prudence board as well as every incisions of the company.a. Management boardManagement board is the head of the company, so that Beeline needs to hire a superior person to take charge this position. First of all, the senior manager have to launch a clear vision and representation as well as objectives for every department to explain deeply for them to work in the right direction. This is called envisioning. Apart from that, irresponsible and encouraging will ensure every department especially Marketing and Financial Department animation each other and the manager also have to support them not only for professional issues but also ratify their plan. By recognizing part with fair wages and salaries, Beelines manager will not only make a motion 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 (realize) strategies because by doing so, they will not only have clear and reality mission from the information gather from functional department but other department also have a clear mind about their mission to implement the strategy. For the managers, by creating the right charts will help Beeline manager have a clear and logistic plan. A clear objectives, sub-objectives, general program and make an assumption will set a mile stone for the employees to achieve and also make a competitive environment when the manager utilize with his/her motivation program.b. Departments operative as a team is not about in a at heart but also among departments together. Marketing department will take charge of making plan to build reputation and publicize the profit of Beeline. However, Beelin e cannot use all of their notes for publicizing. This is the time for financial department, the CFO (Chief Financial Officer) will calculate the cost of advertising and ask the CMO (Chief Marketing 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 th e southern and northern of Vietnam so as not face the fleece problem in one territory. some 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 golf club both HR (in the society or university) and financial (bank, issuing share, etc). When Beeline become the one of the heavenly king of Vietnamese telecommunications market, they can have another network system to allocate the resource not only the urban areas but also the consummate country.CONCLUSIONThis report has made a comprehensive evaluation 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 supp ort 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&tract=96&Id=276 http//vnexpress.net/gl/kinh-doanh/2009/08/3ba11ea3/* Secondary entropy* BPP overlord Education, 2004, Business Strategy, capital of the United Kingdom BPP Professional Education * BPP Professional Education, 2004, Business Environment, London BPP Professional Education * Duc, Nguyen Anh (2010), Marketing interrogation of transmission and recommendations for VIETTEL NEUs MBA course. * Tuan, Doan Anh (2010), Developing the services of capital of Vietnam telecommunication company, NE Us 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