SKT Strategy

Topics: Strategic management, Marketing, Innovation Pages: 2 (635 words) Published: November 6, 2013
From the preceding analyses, the issues raised were the declining of profit, financial stagnation, failing to achieve returns from investment internationally and the increasing competition in its domestic market. After identifying the issues, the scope of strategic actions proposed focus on gaining market share, enhancing its core-competencies and diversify its business to restore SKT’s competitiveness. Regaining its position in Vietnam’s market: In order to regain their position internationally, the first proposal will focus its operation in Vietnam. SKT should shift from a global strategy to a transnational strategy which has high focus for local responsiveness and higher need for global intergration. In doing so, SKT could introduce product that meet the consumer needs as well as achieving economic of scale. Additionally, SKT to adopt a cost leadership strategy since the market are more price sensitive that put least focus on value-added services. From the strategies mentioned, SKT will be more competitive in Vietnam’s market by able to produce better services at a cheaper price. The reason to focus in Vietnam’s market solely was to decrease the setback of geographical diversity which gives SKT better control over its investment. Exploiting/Enhancing its R&D function: Secondly, SKT to put in more effort on its R&D with the aim to introduce/create more advance and innovative product and services. Building on its good foundation in R&D, SKT could further leverage on their core-compentencies to become a industry leader. SKT should continue investing heavily in R&D to introduce newer technologies such as 4G, LTE and even 5G standards that surpass its competitors internationally and domestically. In doing so, it equipped SKT the abilitiy to create new product/services which entitled them to gain the first mover advantage. Furthermore, SKT will improve its image further and will be labelled as a market leader in the industry. Developing human capital: Thirdly,...
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