Group: Fantastic 4

VIETNAM AIRLINE: THE SKY’S THE LIMIT

1. What are the micro and macro environment factors that have contributed to the early
success of Vietnam Airlines?
- Micro environment factors
+ Company:
+ Professional staff, dedicated to the company
+ The member units always provide a full range of service
equipment: petrol, food, passenger transportation
+ Flexibility in layout and the use of manpower, especially the
fleet and technical infrastructure more appropriate appropriate
in each period in line with market forecasts
+ Public:
+ a national airline with strong domestic and regional brands
+ Leading the market share on direct flights within Vietnam and
from Vietnam to other countries around the world
+ Customer: Customers are the most important actors in the company’s
microenvironment. The aim of the entire value delivery network is to
engage target customers and create strong relationships with them.
As a result, Vietnam Airline focus on consumer market:
○ For early and late evening flights, Vietnam Airlines will use the
general price of 1,450,000 VND/way (excluding taxes and fees
attached) for the route Hanoi - Ho Chi Minh City, this price has
been reduced compared to the normal rate about 34%
○ Discount tickets for older people, customers who are
Vietnamese citizens over 60 years old, when buying tickets on
domestic routes operated by Vietnam Airlines and Vasco, they
will receive a 15% discount from the economy class ceiling
○ For corporate customers, cooperation in exploitation and
development with other airlines such as: Japan Airlines, China
Airlines, Cathay Pacific...
+ Vietnam aviation market: Since it was founded, Vietnam Airlines has
enjoyed a monopoly in the Vietnam aviation market. With the
acquisition of Pacific Airlines’ shares from the CAAV, it became the
holding company of Pacific Airlines (now operating as Jetstar Pacific)
with a majority of 70% shares owned (2007). Although the Vietnamese
aviation market has experienced ups and downs, Vietnam Airlines to
date has maintained its dominant position in the domestic market.
- Macro environment factors:
+ Economic environment: The economy of Vietnam has continuously
grown at a relatively good rate, bringing our country out of
underdeveloped status and into the group of developing countries with
middle income.
+ Natural environment: VietNam has a vast airspace that is a great
advantage to develop the airline industry.
 + Political environment: The legal and planning system is increasingly
being completed. This is the basis for the Industry to renovate the
organization, management mechanism, administrative reform, and
apply scientific and technical achievements, especially information
technology, so that the Industry can have a more comprehensive
development of the industry. in many aspects, investing in the
development of aviation infrastructure, managing and operating
airports and airports.
+ Cultural and social environment: Vietnam Airlines' domestic and
international flights have contributed to promoting economic
development, enhancing cultural exchanges between countries, and
giving people the opportunity to go abroad.
+ Technological : Vietnam Airlines' network of routes covers 21
provinces and cities across the country and 28 destinations in 26
countries and territories around the world
. Domestic routes: Routes to Hanoi, Hai Phong, Thanh Hoa, Dien
Bien, Da Nang, Hue, Vinh, Dong Hoi, Pleiku, Tuy Hoa, Ho Chi Minh.
Nha Trang, Da Lat, Phu Quoc, Chu Lai, Quy Nhon, Can Tho, Con
Dao, Buon Ma Thuot, Rach Gia, Ca Mau
. International routes: Flights to Singapore, Bangkok, Phnom Pe,
Manila' Jakarta, Luang Prabang (Laos), Yangon, Vientiane, Tokyo,
Seoul, New York, Houston, Chicago, Honolulu, Moscow, Amsterdam,..
+ Information about a new regular direct air service between Vietnam
and the US operated by Vietnam Airlines was also provided.
2. Discuss the micro and macro factors that would affect Vietnam Airlines performance
in the current competitive environment?
- Micro factors:
+ Company: There is no strict management with flight crews
+ Competitors: Competition on the domestic market has been mainly
between Vietnam Airlines and Vietjet Air. Vietjet Air started a race for
market share with a starting point of only 14% in 2012, while Vietnam
Airlines at that time accounted for a massive 76%2 (ACBS 2016). It
seemed hard for Vietjet Air to beat the competition because it was
new and small and was the only private airline that existed at that
time.
+ Customer: The monitoring team is not strict, causing some customers
to lose their items; lost packages,...
+

- Macro environment factors:

+ Economic environment: In the past 2 years, the Covis pandemic has
frozen the world's aviation industry and so has Vietnam Airlines. At the
beginning of 2020, vietnam airline started to recover
+ Culture: The image of Vietnam and its people appeared on the big
screen outside the Thompson Reuters building in the prestigious
Times Square on December 2. The video clip immediately attracted
the attention of many people at the site with beautiful images of
various famous tourist attractions of Vietnam such as the mysterious
 Son Doong cave, a vibrant Ho Chi Minh City, the spectacular fireworks
festival and the unique Golden Bridge in Da Nang, rowing boating in
Ninh Binh and steaming hot bowls of Pho (noodle soup) in the capital
city of Hanoi ->> Information about a new regular direct air service
between Vietnam and the US operated by Vietnam Airlines was also
provided.
+ Political Problems:
● The issue of state capital investment in production and
business at enterprises
● Fair competition in the aviation sector
●