Vietnam Mobile Services Market

Introduction

Vietnam is a growing potential market for mobile services as its market is modernized by the day . The growth and penetration stood at nearly 7 in the second quarter of 2005 . Those were days when the Vietnam economy was growing to become an international economy as it looked forward to entering the WTO . Within three years , from 2003 to 2006 , the mobile market in this country has been flourishing with an incredible annual growth rate of 79 .7 . According to statistics , the number of subscribers in 2003 was only around 2

.76 million and mainly comprised high-income users . However , since then , mobile services are now accessible even to the low-income users , with the number shooting to 16 .02 million . The mobile market still continues to expand with the most recent entrants in November 2005 (EVN Telecom ) and HT Mobile in late 2006 (Burley , 2007

In most developing nations , like Vietnam , the low income comprises the majority of the population . This means that there could be a great market created for such a group if this factor is put into consideration . This tries to assess the viability of the Vietnamese economy as a market for mobile services , the extent of success of the market in offering longtime assurance to the investor

Hypothesis : The persistently accelerating competition dynamics and a move of mobile service providers in Vietnam towards more dynamic advances to strategy origination , formulation and implementation creativity becomes of key magnitude for achievement of both operational and product excellence

Discussion

Market Assessment

As seen earlier the Vietnamese mobile market is a fast growing market and this kind of exponential growth is fuelled by privatization of the sector in recent years (Burley , N . January 2007 . Due to this privatization , it means there is new entrants into the market hence a marked competition . In such a situation where there is a high competition , the most likely business to make it is the one that combines its strategies well in making sure that there is effective penetration to the consumer of goods and services on offer Furthermore , the number of users of mobile services in Vietnam is expected to increase to 53 million by the year 2010 if an annual growth rate (CAGR ) of 34 .85 is maintained through the years to 2010 . The market has been made more accessible to the users especially due to rapidly expanding coverage and lower service prices . For example prices have been halved in the last three years and are still expected to be adjusted further which implies that if more services penetrate into the low income population more potential users will be attracted to the stage

Promotion

Currently , with more service providers in the market than users , it brings out the level of competition in the market . It means that a business has to do thorough promotional campaigns to outdo others Creation of awareness through advertising is one powerful tool that can be applied effectively to gain advantage over other competitors Advertising can be channeled...