Strategic Marketing Report: TCL's Vietnam Relocation Analysis

This report provides a strategic analysis of Telstra Corporation Limited's (TCL) potential relocation to Vietnam. The report begins with an introduction to strategic planning and then delves into a SWOT analysis of TCL's situation, considering its strengths, weaknesses, opportunities, and threats in the Vietnamese market. The strengths include a diverse product portfolio and a low-cost structure, while weaknesses include a limited liquid position and issues with investor trust. Opportunities in Vietnam's growing telecommunications market and government liberalization are highlighted, along with threats like price wars and rapid technological changes. The report concludes with a recommendation for TCL to relocate its operations to Vietnam, acknowledging potential challenges but emphasizing the opportunities for growth. The analysis incorporates relevant data and references to support the strategic recommendations.

Introduction to strategy
4/16/2020

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Contents
SWOT analysis................................................................................................................................2
Strengths......................................................................................................................................2
Weaknesses..................................................................................................................................2
Opportunities...............................................................................................................................3
Threats.........................................................................................................................................3
Recommendation.....................................................................................................................4
References........................................................................................................................................5
 Recommendation..............................................................................................................7

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SWOT analysis
SWOT analysis is a strategic planning technique which is used with the motive to provide the
help to the person or company in order to determine the strengths, weaknesses, opportunities, as
well as threats that are linked to the business competition or the planning (Rothaermel, 2016)
Telstra Corporation Limited Company has decided to relocate its operations in Vietnam for
which it is essential to understand the internal and external elements that can affect the working
of the business.
Strengths
 Diverse product and service portfolio: - TCL Company has a diverse product and
service portfolio so that they can meet the needs of the customers present in Vietnam.
This contributes in forming the strong customer base that is essential when it comes to
the relocating the business.
 Cost structure: - TCL is a well-known company of Australia who provides the low-cost
structure that provides the support to the manufacturer at the low cost and also to sell the
products at a low price which makes it affordable for the customers. Thus, the company
will be able to grab the attention of the customers who are present in the market. The
low-cost structure makes it easy for the company to relocate the location.
Weaknesses
 Limited Liquid position: - One of the major weaknesses of the company is its limited
liquid position which affects the company as they need to manage the liquid with them as

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it is essential for the trading. This shows that the company can’t meet its liabilities
(Lasserre, 2017).
 Investors trust: -Company has the issue of the investor’s trust which might increase
when the company will not be able to form the proper connection with the government
bodies.
Opportunities
 Market growth: - In Vietnam, the telecommunication market is improving which is
considered as one of the opportunities for the company that they can grab to relocate their
operations. This can be understood with the help of the rise in smartphones with 35.67 in
2019 and 40.76 in 2020 (Statista, 2020). Further, it is expected to increase in the coming
years and with this, there is a rise in mobile users.
 Government approach: - The government has adopted the approach of the liberalisation
within the telecoms industry that could see the entrance of the strategic investor’s like
NTT DoCoMo, SingTel and many others.
Threats
 Price war: - TCL Company finds the major threat of the price war which affects the
operations of the company as there is the availability of the tough competitors in the
market. The competitors in Vietnam lead to the changes in the price which affects TCL as
they need to decline their prices. The company might find considerable downward
pressure on mobile ARPU levels.
 Rapid technological changes: - The rapid changes in the technology are one of the
biggest threats for the TCL Company. For example; change in a network from 3G to 4G

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and now the upcoming 5G network which makes the frequent changes in the operations
(David and David 2016).
Recommendation
It is suggested that the there is possibility of wide opportunity for TCL company in Vietnam
market. However they will find weaknesses and threats in the market which they have to face.
At the end this can be said that TCL company should relocate their operations.

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References
David, F. and David, F.R. ( 2016) Strategic management: A competitive advantage approach,
concepts and cases. Pearson–Prentice Hall.
Lasserre, P. (2017) Global strategic management. Macmillan International Higher Education.
Rothaermel, F.T. (2016) Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Statista (2020) Number of smartphone users in Vietnam from 2015 to 2022 (in
millions)*[Online].Available from: https://www.statista.com/statistics/467739/forecast-of-
smartphone-users-in-vietnam/ [Accessed on 16th April 2020]

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 Recommendation
It is suggested that the there is possibility of wide opportunity for TCL company in Vietnam
market. However they will find weaknesses and threats in the market which they have to face.
At the end this can be said