Marketing Strategy

FPT Telecom Corproration

I. Introduction
FPT is a blue-chip ICT Company in Vietnam that has maintained its leading
position since its inception. The company grew by distributing ICT products,
becoming HP, Microsoft, and IBM's top-level authorized partners. As the
company scale increased, FPT shifted focus onto high-margin businesses:
software development, system integration, telecommunication, IT services, and
digital content and education, showing the company" s endeavor to become "a
company guided by technological innovations." Currently, FPT is pioneer in
digital transformation and a leader in consulting, providing and deploying
technology and telecommunications services and solutions. They help clients in
29 countries and regions around the globe realize technology-driven business
development strategies and goals.
With over three decades of experience in implementing projects on a global
scale, FPT helps clients overcome challenges and barriers and achieve peak
performance in their digital transformation journey. Based on the latest
technologies of AI, Big Data, Cloud, Automation, IoT..., FPT offer advanced
technology solutions and services to help customers operate proactively and
flexibly in all situations.
FTP offers telecom and information technology products, education and
others field include ecommerce, retail,…. The company service portfolio
includes software outsourcing services, systems integration services, online data
services, internet access services, leased line services, fixed line services, digital
content services, e-commerce services.
In this essay, I focus on analyzing telecom products in FPT Telecom Joint Stock
Company. FPT Telecom Corporation is a member company of FPT Group and
the biggest information technology services firm in Vietnam. The main business
sectors of company are:
 Providing the telecommunications network infrastructure for broadband
Internet services
  Value-added services on the Internet, mobile phone network
 Pay TV Services
 Message, data, and infotainment services on the mobile phone network
 Setting up network infrastructure and providing telecommunications and
Internet services
 Import and export of Internet and telecommunications devices
 Local fixed telecommunications services
 Value-added telecommunications services
 Domestic and international long-distance fixed telecom services

II. The STEEP environment of FPT Telecom

FPT Telecom Joint Stock Corporation is a Vietnamese multinational

information communication technology company that provides various IT
services, including software development, IT consulting, cloud computing
service and digital transformation. To analyze the STEEP environment of FPT
Telecom, we will look at the following factors:
2.1. Social environment
Since social trends are changeable, customers’ requirements for the quality of
software increase. In the past, consumers only needed software with essential
functions. Today, customers want more than that. They expect an application to
have more advanced functions, be more beautiful in design but slighter in size,
etc., triggering the immediate influences on the sale of FPT software. The social
environment for FPT Telecom is positive due to the growing demand for ICT
services worldwide. As more businesses seek to digitize their operations, FPT
Telecom has an opportunity to provide innovative solutions to meet their needs.
Moreover, FPT Telecom is also committed to social responsibility and
community development, enhancing its market reputation.
ICT is expected to be among the fastest-growing sectors in manufacturing,
driven by accelerating digitalization and industrial automation. ICT businesses
have expanded mainly production and sales during the pandemic. In 2021, main
subsectors recorded double-digit output growth rates: computers up 14.2%,
electronic components up 19.6%, and telecommunications up 10.4%.
The profit margins of ICT firms have increased in many key markets, and
most companies have been able to pass on higher prices for semiconductors to
customers so far.
According to a recent industry report, Vietnam’s ICT market had an estimated
value of USD 7.7 billion in 2021 and is expected to grow at approximately 8
percent per year from 2022 to 2026 as both the public and private sectors
increase the adoption of ICT solutions. The government of Vietnam has
identified ICT as a significant industry and socio-economic growth driver and
urges government agencies at all levels to apply advanced ICT solutions towards
improving operational efficiencies and providing better governance services. In
particular, the government of Vietnam has approved the National Digital
Transformation Program through 2025, with a vision to 2030, which will further
support the growth of the ICT market. In the meantime, the private sector,
especially key industry stakeholders, including aviation, banking, energy,
healthcare, broadcasting, telecommunications, and urban infrastructure
management, are increasingly employing advanced ICT solutions to enhance
operational efficiencies and support sustainable growth.
Vietnam is expected to continue to import the bulk of ICT hardware,
software, and services, as Vietnamese suppliers are still relatively new and may
need help to offer the same range of solutions and services as foreign suppliers.
2.2. Technological environment
 The growth in technology products encourages the need to use the
internet.
Technology is a significant macro-environmental factor for FPT Telecom - a
company dealing in specific products such as telecommunications and internet
services. The constantly evolving and changing technology environment creates
opportunities and challenges for the company.
The strong development of information technology has opened up many
development opportunities for FPT Telecom. With the advent of computers,
smartphones, and Internet TV, ... the need for people to use the Internet is
increasing.

Picture 1: The situation of using digital technology in Vietnam in early 2023

In early 2023, Vietnam had 77.93 million Internet users, accounting for
79.1% of the total population. In addition, the number of social network users
also reached 70 million, equivalent to 71% of the total population. The total
number of active mobile connections is 161.6 million, equivalent to 164.0% of
the total population.
It opens up development opportunities for FPT Telecom's
telecommunications products such as ADSL network, fiber optic cable, Wifi
network, Internet television, etc. However, the development of technology also
shortens the product life cycle. New products are constantly updated to replace
old products, such as the introduction of fiber optic networks to replace ADSL
networks, the emergence and rapid development of 3G, 4G, and Dcom 3G
technologies that will threaten the development of ADSL networks, fiber optic
network, and Wifi network, the main products of FPT Telecom. Requires FPT
Telecom to constantly update, innovate, ... keep up with the advancement of
technology.
The rapidly evolving and changing technological environment also puts great
competitive pressure. It is a race to update new technologies such as testing 4G
of Viettel, VinaPhone, and Mobiphone; The race to reduce costs thanks to
technology development with competitors such as Viettel, VNPT,...

 Information technology - telecommunications market trends

In terms of technology, Vietnam is a relatively rapidly developing country.
Vietnam aims to become an industrialized economy by 2025. Hence, the
Government will focus on scientific and technological renovation to sharpen the
competitive edge of domestics products and assist businesses in purchasing
patents in some prioritized areas: biotechnology, information technology,
nanotechnology, manufacturing technology, and automation.
Vietnam currently ranks 25th in the top 50 digital countries, as reported by
the US strategic consulting firm Tholons. And according to the General Director
of FPT Telecom Nguyen Van Khoa, Vietnam has 64,000 digital enterprises, and
the figure is rising. It is a good condition for the country to promote its
technological self-reliance to increase stronger.
Seeing the importance of the technological environment in FPT Telecom's
success, as an ICT company, FPT Telecom continually researches and applies the
latest technologies, such as automation, artificial intelligence blockchain
technology, and cloud computing, thus contributing more to the development of
the country, localities, and businesses in a fast and more effective manner as well
as making people's life more convenient, safer and more civilized thanks to
digital services. Advancements in these efforts provide new opportunities for
FPT Telecom to offer cutting-edge services to its clients.Economic: The
economic environment in Vietnam, where FPT Telecom is headquartered, has
been stable in recent years, with steady economic growth and increasing foreign
investment. This positive economic environment creates opportunities for FPT
Telecom to expand its operations and attract more clients globally.
2.3. Environmental
The natural environment is an objective factor that makes it difficult to
predict its impact on the economy in general as well as on the business activities
of FPT Telecom in particular. However, recent incidents of natural disasters,
droughts, diseases, fires, etc., have caused damage to property, people, the
economy, and the general operation of FPT Telecom.
Natural factors such as rainstorms and high humidity lead to unavoidable
damages such as broken optical transmission cable systems, damaged signal
boxes due to thunderstorms, etc., which will significantly affect the quality of
supply internet service of FPT Telecom.
Typically, the AAG fiber optic cable line breaks and damages due to natural
weather factors. In 2014, the AAG cable line was broken twice in July and
September. In 2015, the number of cable breaks was more than three times, and
from the beginning of 2016 up to now, this cable line has also had to be
maintained and repaired twice. On the other hand, FPT Telecom is a member of
AAG, so it has suffered much damage and customers' perception of service
quality has been reduced.
In addition, in today’s international trade climate, firms must consider several
influences affecting them to remain competitive and improve performance.
Factors like globalization, global crisis, technology, social trends, workforce
diversification, and social responsibility impact FPT Telecom. The
environmental impact of FPT Telecom's operations is minimal as it primarily
provides software development and consulting services. However, FPT Telecom
is committed to sustainability and has implemented several initiatives to reduce
its carbon footprint and promote environmental responsibility.
FPT Telecom almost did not witness any direct environmental imprints as an
enterprise operating in the technology sector. However, FPT Telecom recognizes
the indispensable part of the responsibility to monitor energy and natural
resource use, utilize technology initiatives to reduce environmental impacts, and
respond to the pandemic and climate change.
Following Decree No. 06/2022/ND-CP on mitigating greenhouse gas (GHG)
emissions and protecting the ozone layer specified that facilities with energy
consumption of 1,000 TOE (Tons of oil equivalent) or above would have to take
inventories and mitigate GHG emissions from 2023. According to preliminary
statistical data of FPT Telecom’s office buildings and campuses in 2023, the
average energy consumption is about four million kWh, equivalent to 700 TOE.
Currently, FPT Telecom has not had to measure the GHG emission index yet.
However, environmental issues have always been their top concern when
investing in nationwide office properties.
2.4. Economic environment
With economic development, people's income levels have increased, and
living standards are improved, making customers pay more attention to the
quality and entertainment needs, especially telecommunication products. At the
same time as the development of the industrial revolution 4.0, the internet
became a necessary condition for every user.
According to the Ministry of Planning and Investment statistics, by the end of
2022, the size of Vietnam's economy will reach 9,513.3 million billion VND,
equivalent to 409 billion USD, and GDP per capita will reach 95.6 million
VND/person, equivalent to 4.110 USD, up 393 USD compared to 2021. When
people's living standards increase, spending in the service industry on
personalized telecommunications products will increase, creating conditions for
telecommunications businesses to develop.
Besides, FPT Telecom operates in various countries, and economic factors
such as inflation rates, currency fluctuations, and changes in GDP can also
significantly impact the company's business. FPT Telecom’s performance is also
affected by the market competition level, the availability of skilled labor, and the
cost of capital.
2.5. Political environment
Vietnam's relatively stable political background creates favorable conditions
for businesses and FPT Telecom to develop a safe and friendly business
environment.
In particular, Vietnamese law always creates favorable conditions for
telecommunications enterprises to develop, such as:
• Create all conditions for telecommunications businesses to invest, develop
and modernize telecommunications infrastructure, diversify services
 • Creating a healthy competitive environment in telecommunications
activities
• Strengthening education and training activities for human resources in the
telecommunications industry to meet the increasing demand of the labor market
• Vietnam's legal system and administrative procedures are gradually
improved. The regulations on administrative procedures are increasingly concise,
removing barriers to facilitate the development of telecommunications businesses
and FPT Telecom productivity enhancement.
• The Vietnamese Government has policies to encourage and support
telecommunications businesses to invest abroad, including FPT Telecom,
typically the Prime Minister's approval of the National Telecommunications
Development Plan to 2020 for telecommunications businesses. Vietnamese
telecoms such as Viettel, MobiFone, and FPT Telecom will enjoy incentives and
support policies from the Government.
• However, in addition to the positives from the above legal policies, FPT
Telecom still faces certain difficulties, such as:
• There are changes in the law on how to manage the telecommunications
business, such as ceiling prices of telecommunications charges, limitations on
forms of promotion, registration of personal information, etc., which greatly
affect businesses.
• There are still some negative factors hindering the development of
telecommunications enterprises and FPT Telecom, such as bureaucracy,
corruption...
Legal factors affect FPT Telecom through regulations and regulations on
joining and joining the industry. Because telecommunications and internet
businesses have their characteristics, the requirements for quality and technical
standards are essential. Recently, FPT Telecom applied for a license to provide a
4G mobile network, but it was not approved because, according to the provisions
of providing a mobile data network, the enterprise must be a mobile network
operator. Therefore, the expansion of FPT Telecom’s product portfolio will be
disadvantaged by legal constraints
 Moreover, the telecommunications industry was previously a state monopoly,
now, there is innovation and more openness to businesses, but bureaucracy and
bias still occur. Laws tend to lean more towards SOEs.
Generally, FPT Telecom operates in a favorable STEEP environment,
providing ample growth and expansion opportunities. However, the company
must continue innovating and keeping up with the latest technology trends to stay
competitive and overcome potential risks.
III. The competitive environment of FPT Telecom Company

Power of
Suppliers

Threats of Power of
substitutes customers
Porter's
5 Forces

Pressure
Internal
from
industry
potential
rivalry
compettitors

Chart 1: Porter’s Five Forces Model

3.1. M.Porter’s Five Forces Model
a. Suppliers power
Operating in telecommunications services requires a lot of investment in
equipment, and finding the best and most reasonable supplier for businesses is
one of the decisive factors determining the business's success.
Telecommunications equipment and software are very sophisticated and complex
devices with no substitutes, so the company is passive when it depends on
suppliers. However, in Vietnam today, many companies provide
telecommunications equipment and software both domestically and abroad. For
example, in delivering IN systems, there are suppliers such as ALCATEL,
Huawei, and ZTE...for the switchboard, there are Huawei, Ericsson, and Alcatel;
In terms of server supply, there are companies such as Sun, Dell, and HP, IDM…
Regarding telecom, there are VNPT,Viettel, Telsoft, Ultiba,... From that, it can
be seen that the number of suppliers of telecommunications equipment and
software is wealthy, thanks to that, businesses dealing in information services
mobile will have more opportunities to choose the best provider for them, and the
pressure from providers will be reduced. Especially in the current information
technology era, information about suppliers is obvious and accurate, and many
effective information collection channels help businesses choose a supplier most
easily.
Most operating businesses have to use loans from financial institutions. FPT
Telecom is no exception. The banking and finance industry is developing very
quickly, so many banks appear, making it easy for companies to compare and
choose the best financial provider for themselves. The leading reputable banks in
Vietnam, such as Vietcombank, ACB, BIDV, Agribank, etc., annually support
thousands of billion VND in loans. FPT TELECOM, with its position as a large
and reputable enterprise, borrowing, and debt repayment is quite convenient.
Therefore, the pressure of financial providers on FPT Telecom is also very low.
Currently, FPT Telecom only recruits employees who have graduated from
university with excellent or good degrees with the condition that they have a
master's degree. Besides, FPT Telecom also trains their employees in their
universities and colleges to ensure the output results. It proves that FPT Telecom
has very high requirements for the qualifications and capacity of employees. On
the other hand, FPT Telecom’s salary policy is very favorable, so it will attract
good students to work. Especially with the current development of education,
many qualified, capable, and ethical workers have been trained. Therefore, the
labor supply for enterprises is also very abundant and abundant.
b. Customers power
There are currently four most extensive networks in Vietnam's IT and telecom
market. Consumers consider Viettel and FPT Telecom the telecom with the
highest level of quality. Next is VNPT, and finally, Hanoi Telecom. FPT
Telecom has the highest signal quality, thanks to the efforts in innovation and
improvement in product quality.
 Picture 2: Top 10 prestigious information and communication technology
companies in 2022.
Today, the proliferation of network utilities, combined with the variety of
mobile phone models (cell phones), makes the choice of consumers very
complicated. Besides, the selection of consumers is based mainly on their
preferences and assessments, perceptions of the purpose of use, and personal
requirements when using the service. On the other hand, the brand value depends
mainly on the signal quality and utilities. The higher the reputation of the telecom
network, the higher the rates can be charged. In contrast, networks that still need
to create brand value are forced to offer low rates to attract consumers, where
economics is the most important factor in their subscription decisions.
For those who appreciate information from advertising or promotion, the
more attractive the advertisement, promotion, or opinion from friends and
relatives, the more significant the offer, the greater the impact on the customer's
purchasing decision. For example, students, who do not have or have low
income, always want to use the cheapest and most promotional phone service.
They will choose to use Viettel or S-fone, or Beeline. Typically, Viettel's
promotions have increased its market share by 0.1227. Without advertisements
for ages 25 to 35 or younger, Viettel's market share would be around 0.134, equal
to 54% of its current 0.249 market share.
 However, customers currently tend to focus on FPT Telecom’s products
thanks to the diversity and continuous innovation. Previously, most of
Mobifone's customers were business people and working people, but recently,
the policy of attracting customers is students, students, and workers with
preferential rates, along with other promotions. In addition, FPT Telecom’s
market share in foreign countries is expanding, proving the attractiveness of this
business in the telecommunications service industry.
c. Potential competitors
With the development of the economy, and the explosion of information
technology and telecom, people's lives are improving daily, and telecom
equipments are gradually becoming an essential product of life.
The development of the economy, and the explosion of information
technology and telecom lead people's lives improve daily, and telecom
equipments are gradually becoming an essential product of life. Bringing the total
number of telecom subscribers nationwide to more than 77.93 million account
for 79,1% total population, of which 70 million are social network users,
equivalent 70% of total population.
For six consecutive years, the telecommunications market has continually
grown by over 30% per year, especially in the past two years, the growth rate has
skyrocketed to over 50% per year, making Vietnam a country with a large
telecommunications industry fastest growing in the world, and ranked 4th in the
world regarding subscriber growth.
The attraction of the information service industry is huge, with a considerable
customer volume and high profits. Especially for the current Vietnamese market,
in addition to large mobile information services businesses such as FPT Telecom,
Mobifone, Viettel, which have a stable foothold, SCTV and VTC, HTC ...only
have a very small market share will attract many new service providers to appear.
However, this service industry requires significant capital and high technology,
especially when existing network service providers constantly innovate and
improve technology. The market has also been segmented, so entering the
industry can be challenging. Therefore, the competitive pressure of potential
competitors for Mobifone is manageable.
d. Threats of substitutes
In addition to the internet, the mobile phone is the fastest, most effective and
most widely used method of information today. According to the report of
Statista in 2023, it is estimated that the number of global smartphone users will
continue to grow and reach 6.8 billion by 2023. Vietnam is ranked 10th with
61.37 million smartphone users, accounting for 63% of the total population in the
whole territory.

Source: Statista
The advantages of using the mobile phone are convenience; the speed of
information transmission is also fast and accurate compared to using mobile
phones in chat, mail...; Mobile users on computers can both work and look up
information and entertainment...; At the same time, with the growing technology,
the mobile phone is also increasingly designed to be compact and light. Even
phone manufacturers are supporting the development of the internet by setting up
wifi reception for phones. However, the internet is gradually becoming a concern
for society because of bad behavior. Violence and delinquency of young people
today are mostly learned from the internet. Social networks on the internet are
many and always contain reactionary, violent, and immoral content. Therefore,
controlling internet use in Vietnam is being paid great attention by the
authorities.
Computers and mobile phones are being used in parallel, supporting each
other. The convenience of the computer of the internet is undeniable. However, it
is not a substitute for the mobile phone.
e. Internal industry rivalry
Currently, in Vietnam, as of 2023, the market share of telecom networks is
divided as follows: Viettel 38.61%, VNPT 39.33%, FPT Telecom 18.56%, SCTV
5.54%. Thus, the main competitors of FPT Telecom up to this point can be
considered as Viettel and VNPT.

Source: Ministry of Information and Communications

Chart 2: The market share of Telecom Services in Vietnam 2022
However, FPT Telecom’s telecommunications service market share is also in
countries worldwide. Specifically, overseas information technology service
revenue reached VND 18,935 billion, up 30.2%, and profit before tax reached
VND 2,987 billion, up 23.3% compared to 2021. maintained high growth
momentum, especially in the US (up 50%) and Asia - Pacific (up 36.4%).
The demand for services in Vietnam increases by 5-10 %/year, and the
revenue and profit of suppliers also increase by the same number. Although the
barriers to entering the industry and exiting .... are high, the pressure from
customers is not significant, but there are many businesses preparing to enter the
market. An even more encouraging thing is the birth of the service industry with
telecommunications services such as entertainment, betting, and other services,
typically watching stock prices via mobile networks. With this trend, the
competition within the industry will increase, and consumers will be more and
more respected.
In terms of strategy, Viettel still uses the following method: promotions
without necessarily celebrating or celebrating anything, and at the same time,
putting aside city coverage and focusing on a range in rural areas because most
city dwellers are also from the countryside. Mobifone is a program to keep
postpaid service packages and stay loyal to the network to maintain a stable
income from this type of service. In general, the strategies of these two
competitors are promotions and incentives to keep loyal customers. Unlike FPT
Telecom, which has a separate package for each customer, for example, recently,
FPT Telecom has been deploying Giga and Sky packages with only 195,000
VND/month, aimed at students of universities and colleges. , intermediate, and
students between the ages of 12-18. These are young, potential, future demand-
oriented customers, so any service provider wants a firm foothold in this
particular audience.
Regarding potential, Mobifone is currently the most popular
telecommunications service provider network. Mobifone also always focuses on
upgrading network infrastructure, taking the lead in applying new technologies.
Meanwhile, Viettel is very successful in investing in Laos and Cambodia,
narrowing the gap when its revenue was only 60% of VNPT in 2021, and at the
same time, manufacturing telecommunications equipment, including Viettel
branded mobile phones, exploiting real estate construction, mobile phone retail.
In the immediate future, FPT Telecom’s potential is still in its stability, fast
transmission speed, good troubleshooting ability, reputation in the market, and
new packages aimed at young customers (from 12 – 25). From that, it can be
seen that the two strongest competitors currently, Mobifone and Viettel, are
gradually asserting their position in the market, putting tremendous pressure on
FPT Telecom, and requiring FPT Telecom to have solutions to change the
strategy not to be "taken the throne" in the next few years.
Based on Michael Porter's five forces model, we have an overview of
competitive pressure in the telecommunications service business for the FPT
telecommunications service corporation. There are opportunities such as a huge
untapped customer base; The telecommunications service industry is an industry
with many development opportunities, attracting many potential competitors, so
it will motivate FPT TELECOM to constantly innovate and improve to maintain
its position as the No. 1 telecommunications network. Vietnam today, from which
the company will develop more and more; but there are also significant
challenges when current competitors such as Viettel and Mobifone are constantly
innovating and improving techniques and technologies to compete and dominate
the market; when the substitute product is the internet becoming more and more
popular and used; or when suppliers can pressure prices if they consider the
industry to have many growth opportunities, there are many partner choices when
many new companies enter the industry. These opportunities and challenges help
FPT Telecom have a comprehensive view of the telecommunications service
business, then have appropriate measures and steps to seize opportunities and
avoid risks the challenges.
3.2. Ansoff’s product/market matrix

Products
& Services New
Existing

New Market
Diversification
Development
Maket

Market Product
Existing Penetration Development

FPT Telecom has applied the Ansoff matrix as follows:

a. Market Penetration
 In the effort to expand the market abroad, many Vietnamese enterprises have
shown their bravery and won many successes. FPT has resonated with a project
of 33.6 million USD in Bangladesh, Viettel, VNPT, or Mobifone... has also
successfully explored many new lands. In that discovery process, besides the art
of negotiation, FPT Telecom enterprises had to come up with a clear strategy to
penetrate big markets.
With its large capital and financial capacity, in addition to the more deep
integration into the international market, FPT Telecom wants to penetrate the
domestic and international markets with products and services with high
technology, modern under the support of leading companies in information
technology in the world.
Entering foreign markets is a familiar strategy of FPT Telecom because up to
now, FPT Telecom has been operating in 29 countries worldwide in
telecommunications, especially the European and American markets and Japan.
However, with increasingly fierce international competition, FPT Telecom aims
to expand into new markets in other potential countries.
b. Market Development
As a large enterprise with a high market share in internet telecommunications
services, FPT Telecom needs to ensure the best quality of its services. Nowadays,
customers have more choices and high demands on service quality. To improve
competition, there is no other way to upgrade equipment, improve services, and
supply products best for customers. In order to improve service quality, FPT
Telecom has recently conducted optical fiberization of the entire
telecommunications infrastructure system to improve access speed and network
service quality.
c. Diversification
With this strategy, FPT Telecom strengthens the supply of products with
good quality, reasonable prices, and diversity. FPT Telecom has provided users
with various choices depending on the specific use of customers, such as by
geographical area, according to usage needs.
 Table 1: Cost of installing fiber optic network for households in Hanoi
and Ho Chi Minh City
Cost of installing fiber Fiber F5 Fiber F4 Fiber F3 Fiber F2
optic network
Speed 16Mbps 22Mbps 27Mbps 32Mbps
Original Cost 320.000 380.000 440.000 480.000
Promotion cost 220.000 240.000 280.000 370.000
Equipment FPT TELECOM fiber optic modem with
underground wifi technology
Form of Postpaid Not apply 300.000 200.000 100.000
payment Prepaid Prepaid 6 Free and bonus 7 months
6 months for
months F5
Prepaid Free and bonus 2 months
12
months
Notice These networks above doesn’t include 10% VAT

Table 2: Price for installing combo fiber optic network and FPT Telecom
TV
Combo FPT Fiber 5 + TV Fiber 4 + TV
Speed of FPT fiber optic 16Mbps 22Mbps
Channel packages 139 SD channels & 6 HD channels + Free Movies,
applications,… 100%
Price 305.000 325.000
Bonus equipments Fiber optic modem + HD receive
Construction time From 1 to 3 working days
Promotion time Continually in 24 months
Notice These networks above doesn’t include 10% VAT

d. Product development
 In the past 5-10 years, the growth rate of the telecommunications industry is
gradually becoming saturated, and expanding the business scope to develop new
products to catch the "trend" of the market is a must. From macro issues like how
to meet the market's rapidly increasing demand for intelligent devices? Specific
questions for each product line, such as: How to support customers to manage the
information provided to children safely? How to turn the product into a smart
assistant in every Vietnamese household?… are the problem being put for FPT
Telecom.
Besides developing traditional telecommunications products, FPT Telecom
has quickly joined the team of enterprises researching and developing smart
product lines. This strategy has brought positive business results for FPT
Telecom when revenue in 2022 increased by 17.9%, profit increased by 24.1%
over the previous year.
FPT Telecom's customers are getting younger and younger, they expect all
service requests through just one touch on smartphones. This fact puts challenges
and opportunities for FPT Telecom to form a product ecosystem to improve the
quality of life for Vietnamese people.
From the strategic orientation of Amazing Experience - Great experience,
FPT Telecom, focusing on customer experience and improving service quality,
will no longer be a product supplier but an experience-providing enterprise
leading in the market. Applications such as App Hi FPT, FPT Camera, FPT Play
Box, and FPT iHome have appeared on application shopping platforms and have
millions of smartphone downloads. Each application created by FPT has its
meaning and its aimed at its own target customer group.
IV. SWOT analysis
Strenght Weakness
 FPT is a blue-chip company in  FPT Group's activities in many
information communications and fields disperse resources and
technology in Vietnam. reduce the Group's competitiveness
 FPT accounts for about 50-60% in core business areas.
market share in distributing IT  Business activities depend on
 products in Vietnam, particularly in different customer segments. The
the telecom field, FPT TELECOM customer using products and
accounts for a 15% market share services of FPT Telecome include
over the country. This Group has banks (BIDV, Vietcombank,..), e-
over 900 branches in provinces and commerce online (Amazon,
cities in Vietnam and currently FPT Shopee,…), technology companies
TELECOM branches also appears in (Apple, HP, Dell, Panasonic,
over 29 countries worldwide. Hitachi,….), and Consumer Goods
 FPT Telecom is one of Vietnam's companies (Unilever, P&G, ….)
biggest firms providing large fiber  FPT Telecom appears in 29
optic networks. Till now, their countries worldwide, so the
market share is only smaller than problem with the exchange rate is
VNPT and Viettel (these companies concerned.
are 100% capital from Government).  The average skills of the domestic
 FPT Telecom’s strength is quality labor force are low, which requires
and customer service. the company to spend more time
 FPT Group build its education training employees to meet their
system, including Aptech Training demands and more money hiring
Center and FPT University, to management professors.
ensure the maintenance development  Prices are higher than others in the
of the Group. They provide qualified market, and actually, products of
human resources to the companies FPT still new and can’t completely
and the market every year. compete with Viettel’s and VNPT’s
 FPT Telecom has a long-term products.
strategy for its company and  FPT Telecom has various market
products, and the results were competitors, including big old
proven step by step through the high competitors and new potential
recognization in the market, and competitors.
their market share was covered  Participating in import and export
worldwide too. activities and operating in foreign
 Products of FPT Telecom has markets, FPT Group in general and
 significant interest from the FPT Telecom in particular must
customer based on their innovation, bear the risk of exchange rate
modernity, and improvement. differences.
 FPT Group co-operates with various
companies, organizations and big
groups in different fields in domestic
and abroad such as: Vinasa, Rmit,
Nokia, Microsoft, Unisys, Vinashin,
… to ensure their inputs and outputs
product will be maintained.
Opportunities Threats
 Vietnam's economy is currently  Vietnam's accession to
achieving a high growth rate and is organizations such as WTO, AFTA,
recognized by the world. In addition, TPP, and AEC also challenges
the Vietnamese Government is domestic enterprises and FPT
creating all favorable conditions for Telecom because of the appearance
the development of the domestic of many foreign companies'
information technology industry, competitors.
aiming to make Vietnam the third  The import-export process in
largest software supplier in the Vietnam is also a big challenge for
world (after India and China). FPT Telecom. As a
Vietnam also participates in WTO, telecommunications technology
AFTA, TPP, and AEC organization, company, FPT has to import
which brings companies more electronic components to process
opportunities to expand their market its products. In addition, because
share and improve their technology FPT TELECOM Telecom has
and skills in producing and foreign markets, FPT TELECOM
operating. Vietnam's IT and Telecom also has to export its
telecommunications industry is still bandwidth system as well as its
in a period of rapid development products to foreign countries. The
with a lot of great potentials, the delayed processing of Vietnam's
 average growth of the market in the customs makes logistics costs more
last three years is 26%. expensive than expected.
 The general trend of businesses is to  Inflation rates around the world are
modernize operations to increase increasing, and Vietnam is not
efficiency and save costs. Therefore, immune to the impact. High
the demand for software and inflation affects consumption,
services for ERP, system integration, causing consumption rates across
etc., constantly increases due to all sectors to decline, including
continuously developing technology. telecommunications. Although
Thus, FPT Telecom’s business currently, the input of the
activities will become more and telecommunications industry is
more necessary for this electricity, mainly the government
modernization. still supports electricity prices.
 The political situation in Vietnam is However, in terms of salary, FPT
relatively stable. The government Telecom, like other firms in the
also creates favorable conditions for same industry, must compensate
domestic enterprises, especially employees for reducing the impact
information technology enterprises, of inflation on their lives.
with policies encouraging  Another threat that FPT Telecom
investment, reducing taxes, etc. needs to face is competition in
 Human resources are increasingly diverse industries and competition
improved, meeting the market's for market share not only
requirements and increasing domestically but also
competition in the same field. internationally. To compete with
 Consumer demand in this ICT field enterprises with a long life and
is increasing day by day, quality capital from the government as
requirements are also at the top. It well as potential new entrants in
gives information technology firms the industry, FPT TELECOM
as well as FPT Telecom, the needs to make efforts in innovation
opportunity to prove their and constantly updating
capabilities. technology.
  The Russia – Ukraine has
significant impacts on FPT
Telecom business activities and its
revenue and profit.

4.1. Matrix evaluate external factors

No External factors Weighted Rating Weighted

score
Opportunities
1 The potential of market is big 0.14 3 0.42
2 Vietnam's accession to WTO 0.12 4 0.48
opens up new opportunities
for international market
penetration.
3 Receive preferential capital 0.10 3 0.3
from the parent comany (FPT
Group) to invest in developing
services.
4 The State has made many 0.14 2 0.28
guidelines and policies to
create favorable conditions for
developing
telecommunications activities.
5 Tariff barriers are being 0.08 4 0.32
removed, information
infrastructure is being strongly
developed
6 Domestic lending interest 0.06 2 0.12
rates are at a reasonable level
7 Information technology is 0.12 4 0.48
 widely applied today
Threats
8 Vietnam's economy is open, 0.09 2 0.18
potential competitors can
easily enter the market.
9 Economic growth shows signs 0.08 1 0.08
of slowing down
10 Intense competition from 0.07 3 0.21
Viettel Company and VNPT
Total 1.00 2.87

Establishing the external factors assessment (EFE) matrix of FPT Telecom is

built based on assessing the main opportunities and threats the environment
brings to the company. The factors are ranked according to their importance to
the company's operations. Then, classify by the company's response to each
factor. (4: good response, 3: above average response, 2: moderate response, 1:
little response).
The results show a total score of 2.8, above the 0.37 average. This result
shows that FPT Telecom reacts quite well to opportunities and threats from the
external environment. However, the company's reaction to the economic
slowdown and the ability of competitors to penetrate the Vietnamese market is
still low.
4.2. Matrix evaluate internal factors

No Internal Factors Weitght Rating Weighted

score
Strength
1 Many value-added services on the 0.14 3 0.42
same Internet connection, meeting
the market expansion
2 The employees are young, 0.13 4 0.52
 dynamic, highly qualified, and
professionally trained.
3 The competence and qualifications 0.12 4 0.48
of the executive board.
The company is always supported 0.12 2 0.24
by the world's leading companies in
the field of IT. The company has
business partners and strategic
partners.
4 Significant capital and financial 0.10 3 0.30
capacity, capable of meeting the
needs of market expansion
Wide target market 0.08 1 0.08
Comprehensive and professional 0.06 2 0.12
distribution system throughout the
provinces
Weakness
Technical changes are not very fast 0.10 3 0.30
compared to the requirements of
the market.
Business investment capital 0.07 3 0.21
structure is inefficient, heavily
allocated and unreasonable Service
to customers is often not the same
as advertised.
Services to customers are often not 0.08 2 0.16
the same as advertised.
Total 1,00 2.83

The internal factors assessment matrix helps strategic managers summarize

and evaluate the strengths and weaknesses critical to the company's operations.
 The results show a total score of 2.83, above the average of 0.83. This result
shows that the internal factors of FPT Telecom are pretty good, with the highest
score of young, dynamic, highly qualified, and professionally trained staff.
However, it should be noted that the technical change is not very fast compared
to the market's requirements.

V. The position of the Telecom service on PLC

Usually, there are six stages of the product life cycle: Development Stage,
Introduction Stage, Growth Stage, Maturity Stage, Decline Stage, and Phase-Out
Stage. However, FPT Telecom's main product is TV service, or Cable TV so it
has a product life cycle that consists of five stages below:

Residual Market
Demand
introduction

TV
Decline
Services/ Powerful
market
Cable TV Development

Maturity
Turbulent
competition

1. Market introduction Stage: The FPT Play Box service was introduced to
the market in 2017 with the aim of providing customers with a new way to
access streaming content on their televisions. The service was launched
with a range of features, including the ability to watch live TV, catch-up
TV, and video-on-demand.
2. Powerful market development Stage: During the powerful market
development stage, FPT Play Box gained popularity among customers in
Vietnam as the company continued to add new features and expand its
content library. The service also became available on various devices,
including smartphones and tablets.
 3. Turbulent competition Stage: This stage is characterized by intense
competition, rapid changes in technology, and a high rate of innovation.
During this stage, companies must be agile and adaptable to survive and
thrive.
4. Maturity Stage: The FPT Play Box service has now reached maturity, with
a large and loyal customer base. The company has continued to innovate
and add new features to the service, but growth has slowed down
compared to the earlier stages.
5. Decline Stage: Eventually, the TV services will reach a saturation point,
and sales will begin to decline. Marketing efforts are focused on extending
the product's life cycle through product modifications, promotions, or
price reductions.
6. Resiudual Demand: During this stage, sales growth slows down, and the
market becomes saturated with competing products. Customers may be
less interested in the product or may switch to newer or more innovative
products
It's important to note that the length of each stage can vary significantly
depending on various factors, such as the type of TV services, competition, and
technological advancements. Companies must adapt their marketing strategies
and product offerings accordingly to remain competitive.
As for FPT Play Box services, I can confirm that FPT Telecom's products are
in the maturity stage.
a) Market introduction Stage:
FPT Telecom pioneered and started providing IPTV services at the end of
2006 with the name iTV. At that time, everything was new, from solutions to
technology, expensive terminals, and infrastructure using copper cables, the
speed was about 2-3Mbps (equivalent to 1/10 of current fiber optic technology).
The pioneering was even stronger when in mid-2007, FPT Telecom launched a
3-in-1 combo package: Internet - Television - Landline. Five years later, in 2012,
when pay TV appeared, when all services began to converge, broadband
television and the Internet will be inseparable. And FPT has started introducing
cable TV to consumers
b) Powerful market development Stage:
During the growth stage, FPT Play service experienced a rapid sales increase
as it gained acceptance and popularity among consumers. The focus during this
stage would be on expanding distribution channels, building brand loyalty, and
introducing new services and features to differentiate from competitors.
FPT Telecom invested in marketing efforts to increase awareness and
generate interest in its TV service. They also expanded their content offerings,
adding new channels and on-demand services to cater to changing customer
needs. Additionally, FPT Telecom invested in technology to improve the quality
of its TV service and enhance the customer experience.
OTT is a product of FPT Telecom television service. In 2022, OTT FPT Play
held more than 60% market share. Tens of millions of users have registered and
used the service, including many millions of users accessing and re-accessing the
service on all devices. Currently, OTT FPT Play accounts for 20% of the market,
reaching approximately 3.6 million subscribers, with revenue of nearly 190
billion VND and growing strongly. In addition to program channels, OTT FPT
Play also provides up to 20,000 hours of TV content on demand (VOD), of which
movies of all kinds account for 60% of the time. In 2021, OTT FPT Play revenue
was expected to be nearly 6,000 billion VND, of which foreign OTT accounts for
about 5,200 billion VND, more than seven times higher than domestic OTT.
c) Turbulent competition Stage
It is likely that FPT Play Box service face increased competition from other
streaming services in Vietnam and internationally. VNPT and Viettel currently
account the biggest market share in the market. Following the statistic in 2022,
Viettel and VNPT account for more than 70% in the market, exclusive of new
potential entrants.
During this stage, the focus of the company is on maintaining market share,
improving profitability, and keeping customers satisfied. This is typically
achieved through cost control, operational efficiency, and product differentiation.
The company may also consider expanding into new markets or offering new
products and services to stay competitive.
d) Maturity Stage:
Based on the information provided, FPT Play Box service can be considered to
be in the maturity stage of its product life cycle. The service was introduced in
2017 and has since gained popularity among customers in Vietnam, with a large
and loyal customer base. The company has continued to innovate and add new
features to the service, but growth has slowed down compared to the earlier
stages.
The success of OTT FPT Play has made FPT Telecom realize that this is the
right time to deploy the consolidation. In September 2021, FPT Telecom decided
to merge the two brands of FPT Television and FPT Play (OTT FPT Play). FPT
Play quickly gained a strong position in the market by taking advantage of the
competitive advantages of both brands. The FPT Play platform also updates its
technology advantages, investing heavily in content to meet the needs of young
users, who like the convenience and personalization of entertainment content.
Besides, the FPT Play team also focuses on developing utilities to improve
customer experience.
After the consolidation, it is easy to see that FPT has a broader and more
diverse customer base. And the next goal of FPT Play is to maintain and expand
market coverage to become the leader. FPT Telecom builds a separate
communication plan to target the right audience. In addition to official
communication channels such as the FPT Play website and fanpage, FPT
Telecom builds more movie fan communities by country or communities
interested in individual sports for users to interact with each other and FPT Play.
This helps to strengthen the relationship between the customer and the brand.
In addition, FPT also offers promotional packages and bundles for customers
to increase their attractiveness and retain them for a longer time.
It is worth noting that while FPT Play Box is currently in the maturity stage, it
is possible that the service may enter the decline stage in the future as newer and
more advanced streaming services enter the market. At this stage, the number of
customers will gradually decrease, and interest in more attractive TV packages
will come from the position of more potential new competitors. To overcome this
phase, FPT Telecom must continuously update technology, expand market share,
and offer more promotions to attract new customers and retain loyal customers.

VI. Suggestion for the distribution intensity

5.1. The importance of distribution channel quality

In today's fiercely competitive market economy, sustainable development is

always a problem for every business. To solve this problem, companies not only
focus on production activities but also have to pay attention to the process of
bringing their goods to consumers so that they spend the least amount of money
and get the highest profit. The company needs to set up its own distribution
channel system to do that.

Along with two main competitors are Viettel and VNPT, FPT Telecom needs
to perfect its distribution channel strategy and build the company's brand and
service quality into a strong enough brand to compete in the market. The strategy
of building a good distribution channel system will help consumers easily use the
company while ensuring a competitive position in the market, increasing the
business's revenue.

5.2. Proposed solutions for distribution intensity

a. Intensive distribution for FPT Play

If FPT Telecom chooses an intensive distribution strategy, it must try to sell

its products in as many stores as possible. Typically, intensive distribution
strategies are used for utility services - products that customers buy on the spot
without much shopping around. This style of retail distribution is best-suited for
goods and products that rarely command a great deal of brand loyalty. If a
customer’s preferred brand is unavailable, they are perfectly fine buying another
product at a similar price point. For most consumers, if FPT Play service sold
out, VNPT or Viettel service are acceptable alternative.
 The intensive distribution gives brands the largest presence possible, reaching
more potential customers across disparate markets. However, inventory
management, supply chain logistics and marketing demands all become
incredibly complicated with an intensive distribution strategy.

This approach is a poor fit for niche products with limited appeal as Pay TV
services like FPT Play. However, some mentioned suggestion below can be
applied in FPT Telecom:

 Be Partner with content creators: FPT Telecom can partner with content
creators, such as filmmakers, musicians, and influencers, to produce
exclusive content for their FPT Play Platform. This cooperation action
will attract more viewers and increase engagement.
 Expand to new markets: FPT Telecom can expand its reach to new
markets by offering localized content and language options. They can also
partner with local distributors and broadcasters to gain more exposure in
the new markets.
 Increase online presence: FPT Telecom can invest in its online presence
by improving its website and social media channels. They can also run
targeted online advertising campaigns to reach potential customers.
 Offer promotions and discounts: FPT Telecom can offer promotions and
discounts to attract new customers to the FPT Play platform. They can
also offer special deals to existing customers to encourage them to refer
their friends and family.
 Invest in user experience: Providing an excellent user experience is critical
to retaining customers and generating positive word-of-mouth. FPT
Telecom can invest in improving its interface, adding new features, and
optimizing its video streaming technology.
 Collaborate with other telecom companies: FPT Telecom can collaborate
with other telecom companies to offer bundled services, such as internet
and mobile plans, that include FPT Play subscriptions. It will increase
their customer base and revenue.
  Attend industry events: FPT Telecom can attend industry events and
conferences to network with other professionals and showcase their
services. It will also help them stay up-to-date with the latest trends and
technologies in the industry.
Overall, FPT Telecom should focus on providing high-quality and exclusive
content for the FPT Play platform along with investing in user experience and
expanding its reach to new markets. By building strong relationships with their
customers and offering value-added services, FPT Telecom can increase their
customer loyalty and retention.
b. Selective distribution for FPT Play
If FPT Telecom choose selective distrribution for FPT Play platform, they
will have to choose an intermediary product distribution channel to bring
products and experiences to consumers more conveniently. Customers in this
selective distribution must know that FPT makes sense when their brands and
products, notably FPT Play service, cannot be swapped out interchangeably.
Target audiences of FPT Telecom are highly discriminating and are willing to
travel to specific outlets where their preferred service are available. For FPT
Telecom, the in-store experience is part of their brand and they tightly regulate
retail displays and even how clerks describe or demo their products.
 Focus on premium content: FPT Telecom can offer premium content on
the FPT Play platform not available on other platforms. By providing
exclusive and high-quality content, they can differentiate themselves from
competitors and attract a more niche audience.
 Target specific customer segments: FPT Play can target specific customer
segments with customized marketing campaigns. For example, they could
target sports enthusiasts with live streaming of major sports events or film
buffs with access to independent and international films.

 Set different programs for customer segments: FPT Play may set different
prices and age limits through customer surveys. They should also set
different prices for customers from distinct regions to provide the best
 customer experience. FPT Play team can show some free family programs
for customers to experience and some free videos about the movie content
to raise their concerns.
 Limit distribution channels: FPT Telecom can limit its distribution
channels to only those that align with its brand image and target audience.
For example, they could distribute their platform through premium cable
channels or online platforms catering to a more affluent audience.
 Invest in customer support: Providing excellent customer support is key to
retaining customers and generating positive word-of-mouth. FPT Telecom
team can invest in training its customer service representatives and
offering multiple channels for customer support, such as phone, email, and
chat.
 Build a loyal community: FPT Play team can build a loyal community of
fans and followers by offering exclusive perks, such as early access to
new content, special events, and discounts. This will create a sense of
exclusivity and loyalty among their customers.
 Monitor performance and adjust strategy: FPT Telecom should
continuously monitor and adjust its performance accordingly. This
includes analyzing customer feedback, tracking engagement metrics, and
keeping an eye on competitors in the market.
 Overall, FPT Telecom should focus on providing premium content and
creating a loyal community of customers while creating new content for
various consumer segments, investing in customer support, and
monitoring their performance to ensure their strategy aligns with their
goals.
c. Exclusive distribution for FPT Play
When FPT Telecom choose selective distribution, they know that their
strategies still use a variety of intermediaries and outlets to sell wares, but FPT
Telecom has an even more wise option to consider: exclusive distribution. Under
this business model, companies partner with FPT Telecom's wholesaler or
retailer in a particular market. The idea here is to restrict availability to protect
brand equity and project a more selective and exclusive brand image. Their
exclusive distribution partner agency can also be a huge asset when expanding
into new markets. Distributors already have a presence in these markets and
understand what motivates local customer bases. That means less risk for
businesses that want to reach international audiences but are concerned about the
logistics involved in such a move. However, exclusive distribution is reserved
only for luxury brands where product scarcity isn’t just acceptable – it’s
expected.
And here are some suggestions for this distribution:

 Identify potential partners: Look for partners with a similar target

audience and a strong distribution network. This could include telecom
operators, TV service providers, or other content providers.
 Negotiate exclusive deals: Offer exclusive deals to partners who are
interested in distributing the FPT Play service. This could include
offering a higher revenue share, marketing support, or other incentives.
 Focus on user experience: Ensure that the FPT Play service provides
an excellent user experience across all platforms and devices. This will
help to attract and retain users, which is essential for the success of any
distribution strategy.
 Leverage social media and influencer marketing: Use social media and
influencer marketing to increase brand awareness and promote the FPT
Play service to potential users.
 Monitor and optimize distribution channels: Monitor the performance
of distribution channels regularly and optimize them based on user
feedback and engagement metrics. This will ensure that the service
reaches the right audience and achieves its business objectives.
VII. Creative strategy of FPT Play
Hitting to the actual needs of users and continuously upgrading the
experience with leading technologies, the quality of dedicated customer care is
how FPT Telecom creates a brand with distinctive value in the market. And in
the case of FPT Play, FPT Telecom's creative team has consistently pushed for a
change in "communication" between businesses and consumers.
Grasping the influence of the 4.0 revolution that is having a substantial
impact on all aspects of life, FPT Telecom shows its agility when continuously
innovating, providing a variety of packages with large bandwidth to meet the
increasing needs of users. From individual customers, families to businesses,
everyone can easily choose an internet service package that suits their actual
needs.
Not only diversifying service packages according to basic needs, but FPT
Telecom also grasps the world telecommunications trend, contributing to the
definition of high-class internet services in Vietnam and other countries where
FPT Telecom has a market share. FPT Telecom also meets the issue of safety
when connecting customers by integrating F-Safe security features in internet
services.
In addition to meeting the essential "connection" needs through core internet
services, FPT Telecom also quickly grasps the entertainment needs of today's
users. FPT Play is a television service that FPT Telecom continuously invests
heavily in technology and content. Possessing the most advanced technology
platform, IPTV and OTT, FPT Play is also one of the pioneers in owning many
interactive technologies and exclusive content, creating a convenient ecosystem
for users.
From mid-2020 to the present, FPT Play has always occupied the 2nd
position in terms of monthly active users. Following the noted by Q&Me, FPT
Play accounts for 39% of OTT share and is second only to Netflix in Vietnam
(2022). However, from the perspective of user development, FPT Play has an
"osmosis rate," or in other words, the conversion rate of users who install the
application to become registered users is higher than that of FPT Play. Netflix.
Specifically, the Open Rate or app usage rate of FPT Play reached 39.2% of the
total download volume of about 6.71 million (April 2022).
Take advantage of the strong development of social media and content
platforms in Vietnam. By partnering with Tiktok, the TikTok user community
has the opportunity to access attractive sports, feature films, and entertainment
content through best-cuts that are continuously posted on the Official account of
FPT Play. In 2023, TikTok also opened the Event Promotion Page and initiated
hashtag challenges related to FPT Play's campaign to attract the attention and
creativity of the community. This idea is creative in that besides the rich content
provided by FPT Play, FPT Play wants the audience to contribute their creativity,
love and personal experiences while enjoying. This is one of the advantages they
found in TikTok.

FPT also cooperated with famous partner Google to launch an ambitious

product called FPT Play Box S. This device has exceeded the limit of an ordinary
TV Box when it can play a role as a smart home control center. Hands free Voice
control technology supports users to give remote voice commands to change
programs.

The big plus point of FPT Play Box S lies in 100% Vietnamese voice
recognition. One of the reasons why AI virtual assistant technology is not
popular in our country is the language barrier and FPT Play Box S has removed
this barrier. This device supports the usual TV control operations like channel
switching and commanding the ecosystem of innovative products connected to
your family's FPT Play Box S.