Content

I. II. III.

Executive summary ................................ ................................ ................................ ............. I-1 Value curve theory review ................................ ................................ ................................ II-1 Research into the market ................................ ................................ ............................... III-2 University introduction ................................ ................................ ................................ III-2 External environment analysis ................................ ................................ ..................... III-3 a. b. c. d. e. 3. Political ................................ ................................ ................................ ................... III-3 Economic Analysis ................................ ................................ ................................ .. III-3 Technology ................................ ................................ ................................ .............. III-4 Social ................................ ................................ ................................ ...................... III-4 Review of education market in Vietnam ................................ ................................ .. III-4 Critical success factors ................................ ................................ ................................ III-5 Applying the theory to the business model ................................ ................................ .... IV-5 The value curves of Hanoi eUK University ................................ ................................ . IV-5 Recommendation strategic options for Hanoi eUK University ................................ ..... IV-6

1. 2.

IV. 1. 2.

I-0

looking across complementary offerings. the Body Shop. 1999) to have a decision for develop or invest in Vietnam¶s market. looking across strategic groups. which are "looking across industries. 2008). capabilities of Hanoi eUK University. investors to gain profits. a new value curve is suggested to build the relevant marketing strategy. value innovation does not concentrate on segmentation of markets and customers but instead it tries to deliver superior value for buyers and lower costs for companies (Kim &Mauborgne. Thus. In contrast with traditional strategies. Value curve theory review According to Kim and Mauborgne (1999). Kim and Mauborgne (2005) have identified six approaches to new value curves. it points out directions to create new market space for companies. The paper isthe brief analysis to answer the questions of ³How potential education market in Vietnam is´ and ³How the new project will be running by using value curve method´. Firstly. an online university providing master courses with UK standards. promising to attract a wide range of students. II-1 . looking across functional or emotional appeal and looking across time". By accessing the external environment affecting the current education market in Vietnam and analysing resources. The model of value curve is believed to bring many benefits for businesses. looking across the chain of buyers. 2004). Vietnam is chosen because it is a promising market for education for the next 5 to 10 years. Starbucks and so on are the actual examples of corporation who have created new and superior value for the existing products in different industries (Markides. The new online university will enter the education industry by creating new value propositions. value innovation is the key contribution to the success of businesses. By looking at the strategies of successful business. this report is going to deal with the following issues: y y y y Review the value curve theory Analysing external environment Applying the marketing theories into new project Strategic recommendation for online university. businesses can attract more customers and expand their market to obtain the economies of scale as much as possible when the company's value curve is different from its rivals (Markides. As a result. Toyota. II.I. Executive summary This paper goes through study µCreating new market space¶ (Kim &Mauborgne.

Like other industries. University introduction Hanoi eUK University is an online university providing master courses with UK standard and internationally recognised qualifications. resources and response of competitors. companies has to take into account those factors when developing strategies. Furthermore. the value curve model helps identifying key factors that needs to be eliminated and reduced but there are potential risks that not all businesses willing to take. well-established companies sometimes concentrate on investing more money in businesses that seem to bring them profits in long term. Hanoi eUK University is operated online and will be one of the first virtual universities in Vietnam. 2009). could successfully transfer the improved value to their customers and get higher profits. raised. 2008). therefore. some of the cost savings used to eliminate and reduce are used to create key factors that make a product unique and other competitors irrelevant. University of Southampton and so on to offer solely Vietnamese students a chance to get quality education locally. Businesses. Even though creating value through innovation has advantages. It will be partnered with leading UK universities such as University of East Anglia (UEA). can offer extra benefits for the masses thus gaining more profits and maintaining growth. it is easy to find the new value curve. III. businesses face challenges in implementation. reduced or even eliminated in order to set up new competitive value curves for themselves. After registration. the value curve method helps companies identifying new values. Since the application of new value curve is affected by external environments and internal factors including acceptance of customers. it is believed that companies suffering from declining revenues and decreasing customer loyalty or start up businesses are the most likely practioners of value innovation (Sheehan &Vaidyanathan. Markides (2008) found that only a small percentage of companies. education in Vietnam is blooming. which created new value curve. In theory. it is often too late to implement value innovation (Markides. By using it. Research into the market 1. it is difficult to get profits from the value created. However. In contrast. students will be provided course materials such as downloadable III-2 . In fact. Furthermore. Hanoi eUK University is the new entrant in a competitive market. when their current businesses become worse. therefore it has to quickly identify its new value and make a change to expand the business further. however.2008). Initially. companies may consider what factors should be created.

Political As the market for international business. however it has some strengths such as: accession to the WTO. The university will initially target two segments of students: those who like to get quality abroad qualifications at lower costs and those who currently working and have less time to go to school to study. The online university will exploit these factors to enhance its profits and growth. It will be more develop in the future. a.handouts and lecture videos. Furthermore. b. Economic Analysis Datamonitor (2009) claims that Vietnam¶s economic are still young. 2. External environment analysis A PEST analysis of Vietnam is used to identify opportunities and threats for the new online university. Recently. the Vietnamese government has allowed foreign schools to open in Vietnam. robust exports. they even pay tuition fee for primary school. the government has encourages every Vietnamese to go to school. III-3 . which are costand flexibility. Vietnam can be defined as a peaceful country. According to Vietnam political system (2010). Supports will be available from a team of lecturers via email or live chat. These two groups share the same characteristics.

most universities are opened in big cities so the demand of housing for student is extremely tension. total consumer expenditure on this sector is £15 billion in 2007. e. we can see that the Vietnam GDP Growth Rate was grew at 3. This is because they prefer to use the expensive products from developed countries to show off their wealths and status. while other is 30%. Therefore. There are needs for method to ease this situation. III-4 .9% in 2013. d.220. the need to have high skill employees is more than ever and it will increase continuously.284% while the growth rate of Internet users was 9. therefore it is obvious that education market in Vietnam is a really huge potential. the proportion of Vietnamese favour of foreign brands is 77%. The number of universities was also doubled up during that time. thirteen times higher than in 2000. education is very important in Vietnam. Euromonitor International (2008) indicates that computers and the internet have become effective and essential tools for communication. many parents willing to pay a lot of money to give their children a change to study abroad. Secondly. there are many students studying abroad because the quality teaching in local universities is regarded as low.9% from the year 2009 to 2010.From the statistic above. Technology Vietnam is one of the countries with the highest investment on R&D in South East Asia and the large amount in new technologies. Vietnam economic grew up significantly.0% to 3. Review of education market in Vietnam In the period from 1999 to 2007. education. entertainment and shopping in Vietnam. c. Furthermore. the percentage of households with a PC was 13. It is forecasted reaching to 6. Moreover. Base on the report of Euromonitor International (2008): µ The market for education in Vietnam is large¶. Firstly. there were 1. In 2007. the growth rate of PCs in this period was 1.8%.55%. The household penetration of PCs and internet usage has risen considerably between 2000 to 2007. business. Social The society of Vietnam has many special aspects.5 million students in academic year (2006 ± 2007). According to statistics from Euromonitor International (2008). Base on statistics from the Euromonitor International (2008). according to the survey on customers¶ demands of the Grey Group (2007).

the main costs would come from maintenance and supportive staff. Critical success factors UK universities in general and their qualifications in particular have a high reputation. especially from the UK. the university will set its tuition fees at affordable rate to attract potential students. Its entry requirement will be at between UK and Vietnam standards so that many can be able to join. are highly regarded and tend to have better career prospects. IV. research and teaching quality needs to be kept as high as possible. there were the same quantity of students who wanted go to abroad to study but they had insufficient finances and were made difficult by red tape and other issues. according to Ministry of Education and Training (2009). it may cost more for students not from the city. Flexibility is one of the main strengths that it will have to look after. Applying the theory to the business model 1. there are many students who are unable to study abroad. a master course in the UK averagely costs about £10000 a year plus accommodation cost of about £7500 (UEA. The tuition fee for a master course is therefore varied between £1500 and £3000 per year. At the same time. Therefore. there are currently two kinds of university: state owned and private. Vietnamese students who have foreign certificates. In the other hand. This is an opportunity for an online university to get involved with an open market. As it is an e business. online university will fill in the gap for this market and make it easier for students to get a foreign certificate at cheaper costs. Based on the research. As leading universities located in main cities.In Vietnam. 2010) According to statistics in the Saigon newspaper (2008). infrastructure costs and the bonuses for education agencies. Furthermore. The value curves of Hanoi eUK University The value curve is drawn to compare key factors of the online university with others from UK and Vietnam IV-5 . 3.000. the number of Vietnamese students studying abroad in 2007 was about 50. The university will offer its flexibility for many different types of student. Besides. This can be done by cutting administration costs.

In the future. Hanoi eUK University will work with other online retailers such as Ebay and Amazon to offer students ease of trading and buying books with others. a. Recommendation strategic options for Hanoi eUK University Based on the analysis. b. it is also a place where students can meet and discuss their studies. 24/7 lecturers and supports will be provided. Based on current technologies. attending live lectures etc. Looking across a chain of buyers The online university will be working with a new group of students: those want to get a quality foreign qualification but unable to go abroad to study. it is entirely possible and students can do that at the comfort of their homes. the new value curve for Hanoi eUK University is suggested by looking across the complementary services and a chain of buyers. thus enhance their promotion prospect. but there may be extra charges for out of working time tutors. who need flexibility to get further studies. IV-6 . Hanoi eUK University will create an virtual environment on its website where students can talk to their lecturers face to face. Moreover. Looking across the complementary services The online university is not only the place to study. the university will look into other groups of buyer such as officials and staff in the government.Tuition fees Research and teaching quality Facilities Entry standard Career prospects Flexibility Vietnamese universities UK universities Online universities Key success elements 2.

com. Euromonitor international. The strategic logic of high growth.Country analysis report . Harvard Business Review Kim. Vietnam political system. Vol. 1st edition. Available at http://www. 28 IV-7 .com/[Accessed 30 October 2010].In-depth PESTE insights.Vietnamese student in abroad.gov. (2008): Game-changing strategies: How to create new market space in established industries by breaking the rules. Harvard Business Review Kim.C and Mauborge.saigon-gpdaily. W.euromonitor.vn/ct/tintuc/Lists/LanhDaoBo/View_Detail.Vietnam.C and Mauborge. 2010. pp. Hoboken: John Wiley & Sons. Ministry of Education and Training. R (2005): Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant.vn/?page=9. R (1999): Creat ing New Market Space.gov. GaneshVaidyanathan.moet. W.References Kim. 2010. Strategy & Leadership.uea. (2009) "Using a value creation compass to discover Blue Oceans". UEA.com/[Accessed 30 October 2010]. Inc Norman T.13 .20 Datamonitor (2009). Consumer lifestyles ± Vietnam.uk/international/fees[Accessed 30 October 2010]. Saigon newspaper. Available at http://moj.vn/Education/2010/4/81011/[Accessed 28 October 2010].datamonitor. 2010. C.aspx?ItemID=998[Accessed October 2010].Available at http://www. R (2004): Value Innovation.C and Mauborge.ac. Harvard Business Press Markides.6[Accessed 30 October 2010].Available at http://www. W. 2010.Available at http://www. Sheehan. International fees.Available at http://www. 37 Iss: 2.

Sign up to vote on this title
UsefulNot useful