Innovation for ExplosionA Strategy of EIS Corp.

Designed for the Workshop “International Marketing Strategy of Innovative Products from Developing Countries”

Leipzig, Nov. 2003Phan Huy Hong, Nguyen Thanh Quoc, Le Mai Lan, Nguyen Kieu Dung

Electronic Information System Corp.

Analyze and Evaluate the Marketing Strategy of EIS for One Connection Product

Lesson Learnts in Marketing Strategy of Innovative Products for Small Size Technology Driven Companies from Developing Countries

Objective

Die Darstellungen sind ausschliesslich als Diskussionsgrundlage konizipiert und sind ohne die muendlichen Erlaeuterungen zur Presentaetion unvollstaendig. Eine Weitergabe an Dirttte ist nur mit ausdruecklicher Genehmigung der Authors gestattet.

1. EIS- Corporate Profile and Strategy

2. Market Analysis

3. SWOT Analysis

4. Marketing Strategy Analysis

5. Marketing Implementation Analysis and Evaluation

6. Lessons Learnts

Agenda

2. Market Analysis

3. SWOT Analysis

4. Marketing Strategy Analysis

5. Marketing Implementation Analysis and Evaluation

6. Lessons Learnt

1. EIS- Corporate Profile and Strategy

EIS – Organization Structure

SBU Portfolio Positioning

SBU Stragic Positioning

Agenda

History: Established in 1993 as a computer store focusing on hardware trading. Today a Joint-Stock Corp. having 6 subsidiary companies and 110 staff over the world.

Products: Network System Intergration; Value Added Internet Services; Software for Business

Management.

Customers: Government Institutions; Financial Institutions,

Service Providers, Manufacturing Companies, Individuals.

Location: Thailand, Vietnam, USA, Singapore

Vision : To Be A Global Technology Developer Providing Solutions for Simplifying the Access to and Application on Internet.

1. EIS- Corporate Profile and Strategy

EIS- Corporate Profile and Strategy

EIS Organization Structure:

EIS Ltd.(Thailand)

Networking SystemIntegration (NSI)

TRADING

EIS Corporation

EIS. Ltd (Vietnam)

Network SystemIntegration (NSI)

TRADING

Internet ServicesTRADING

OCI (One connectionInc.- Vietnam)

Software DesignR&D, TRADING

Vietnamthink, Inc.

Internet ServicesHOLDING

One ConnectionPte. Ltd.(Singapore)

Innfex Inc. (USA)

Innovation for Explosion

R&D

EIS- Corporate Profile and Strategy

Financial Highlights

Total Asset and Capital

$-

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

2000 2001

Year

Mill

ion

USD

Total Asset Shareholder Capital

EIS- Corporate Profile and Strategy

$ 70 000 Turnover Pro Person : Well above the Average Local Ratio of $ 13 000

Turnover and Profit Before Tax

-2,000,0004,000,0006,000,0008,000,000

10,000,00012,000,00014,000,000

2000 2001 2002* Year

Mill

ion

USD

Turnover Profit Before Tax

EIS- Strategic Business Unit

EIS- Corporate Profile and Strategy

SBUNetwork System

Intergration Value Added Internet

ServicesManagement Software Design and Training

CompaniesEIS Vietnam, EIS

Thailand

One Connection Singapore, One

Connection Internet Vietnam

Viethink Vietnam

Core Customers

Internet Service Providers, Private

Enterprises, Government Offices

and State Corps., MNC

Enterprise in IZ, Hotels, Tourism Industry

Internet Service Providers, Private Enterprises,

Government Offices and State Corps., MNC

Core Markets Vietnam, Thailand Global Vietnam

Estimated Turnover in 2002 ($Mil.)

9.3 1.7 1

Turnover Contribution in

2002 78% 14% 8%

EIS- Strategic Business Unit Positioning

Relative Market Positioning

Market G

rowth Rate

NSI

SDVAS

1% 8%4%

7%

15%

30 %

- 8%

- 23%

EIS- Corporate Profile and Strategy

Investment Strategies Options

GO SOFTFocus on Services

and Software

GO HARDFocus on Providing

Hardware and Infrastructure

Pro:•Strong Market Potential•In Line with Corporate Vision•Higher Margin for Market Pioneer•Tax Advantages

•Strong Human Resource

Contra:•High R&D Expense•Risk versus Return

Pro:•Market Leadership in Vietnam•Good CRM

Contra:•Conflict with Corporate Vision•Limited Market Potential•High Sale and Promotion Expense

EIS- Corporate Profile and Strategy

Market Analysis:

Demand and Supply

0.62 billion subscribers worldwide (11.6% of the world population)

1 million subscribers in Vietnam (1.26% the country population)

Using fax, phone, mail-box, mobile, page with different numbers – No intergrated number has been offered.

Market Characteristics:

Competitive market

Very short product life cycle

Critical Success Factors: Being Niche – Creative Product

Value-Price Performance

Strong Promotion and Sale.

Market Analysis

GO “SOFT” OPTION FOCUS ON SERVICES

Market Analysis

SWOT Analysis

Product Leadership

Customer Focused Product

Not Favorable Regulation and EconomicFramework in Vietnam

Short Life Cycle

Strong Market Potential

Wide Customer Base

Globalization Process Speeding Up

Small Capital Base Company

No Brand Name

Lack of Distribution Network

STRENGTH WEAKNESS

OPPORTUNITIES THREADS

ONE CONNECTION SWOT ANALYSIS

Marketing Strategy

Marketing Mix

Target CustomersCompanies, Businessmen,

Families, Young People.

Promotion:•English Name•Child Companies in Target Market•Media and Press Promotion•OC Singapore as a pulling machine•Attractive Sale Slogan

DistributionOption 1

Franchising Choosing the Right Partner inTarget Market

Pricing:•Value PerformancePrice•Discount for EarlyRegister

Product:•One Connection•Value Added Internet Service•Four Package for Four Segments

ONE CONNECTION MARKETING MIX

Option 2

TraditionalDistribution Network

Market Entry: Enter Singaporean Market on 2-2003

Enter Vietnam Market on 2-2003

Enter Thailand Market

Plan to Enter Malaysia, Hong Kong and the EU

Distribution Network Development: Partnership with Singtel Developing 3 models of franchising

• OCSF(Sequential Franchise) • OCNF( Networking Franchise)• OCFA ( Fixed Agent)• OCMA ( Mobile Agent)

Sale Records: 20,000 subscribers in Singapore up to now.

Marketing Strategy Implementation

ONE CONNECTION SALE TRACK RECORD

Success Factors

Lesson Learnt

ONE CONNECTION – REVIEW OF MARKETING STRATEGY FOR INNOVATIVE PRODUCT

SolutionsPotential Issues

PromotionAggressive Promotion Strategy

Distribution Practical Franchising System

Well Selected Target Countries

Product

Being Pioneer Owing the Techno.

Hidden Competitors

Short Life Cycle

Market Acceptance in

New Markets

High Leverage

Carefully Select New

Target Market

Keep Investing in R &D

Diversify Capital Sources

Strengthen Relationship

with Supplier and Banks

Lesson Learnt

ONE CONNECTION – REVIEW OF MARKETING STRATEGY FOR INNOVATIVE PRODUCT

Consistent Corporate Structure with Synergy Effect

R&D: where the cost is effective

Sale and Promotion: where the customers are

Finance: where to get higher creditworthiness

Business Models: Push - Pull

CEO: Chief Executive OfficerEIS : EIS Inc. (Vietnam)EISS: EIS Service Co.,Ltd. (VN)IFE: Innfex Inc. (USA)

OC: One Connection (Singapore)KMU: Knowledge Management Unit

FMU: Financial Management UnitCDU: Cooperation Developing Unit

CEO is looking for the way to our VisionOC is pulling EIS machine, Vietnamthink, OCI, IFE are pushing this machineKMU is steering the right way, FMU & CDU is supporting & managing

VNTHINK

EIS- Corporate Profile and Strategy

Lessons Learnt

Innovation is 1% Inspiration and

99% of Transpiration

Thomas Edison

Lessons Learnt

Q & ACommon Issues

Action Plan

Lessons Learnt

THANK YOU

ANDICO – International Trading and Consultancy

422/9 Ho Van Hue, Dist. Phu Nhuan,Ho Chi Minh Stadt, Vietnam

Tel.: +84 8 845 94 94e-mail: andienco@fptnet.com.vn

Dr. Phan Huy Hong(Dozent der Juristischen Hochschule - HCM)

Mr. Nguyen Thanh Quoc(Mitarbeiter der BBI – HCM)

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