Electronic Information System Corp.
Innovation for Explosion
A Strategy of EIS Corp.
Designed for the Workshop “International Marketing Strategy of
Innovative Products from Developing Countries”
Leipzig, Nov. 2003
Phan Huy Hong, Nguyen Thanh Quoc, Le Mai Lan, Nguyen Kieu Dung
Objective

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
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.
Agenda
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
1.
EIS- Corporate Profile and Strategy

EIS – Organization Structure

SBU Portfolio Positioning

SBU Stragic Positioning
2.
Market Analysis
3.
SWOT Analysis
4.
Marketing Strategy Analysis
5.
Marketing Implementation Analysis and Evaluation
6.
Lessons Learnt
EIS- Corporate Profile and Strategy
1.
EIS- Corporate Profile and Strategy

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.
EIS- Corporate Profile and Strategy
EIS Organization Structure:
OCI (One connection
Inc.- Vietnam)
One Connection
Pte. Ltd.(Singapore)
Internet Services
TRADING
Internet Services
HOLDING
EIS. Ltd
(Vietnam)
EIS Ltd.
(Thailand)
Networking System
Integration (NSI)
TRADING
Vietnamthink, Inc.
Software Design
R&D, TRADING
EIS Corporation
Network System
Integration (NSI)
TRADING
Innfex Inc. (USA)
Innovation for
Explosion
R&D
EIS- Corporate Profile and Strategy
Financial Highlights
Total Asset and Capital
$7,000,000
14,000,000
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
-
$6,000,000
Million USD
Million USD
Turnover and Profit Before Tax
2000
2001
2002*
Year
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
Year
$-
Turnover
Profit Before Tax
2000
Total Asset
2001
Shareholder Capital
$ 70 000 Turnover Pro Person : Well above the Average Local Ratio of $ 13 000
EIS- Corporate Profile and Strategy
EIS- Strategic Business Unit
SBU
Companies
Core
Customers
Core Markets
Estimated
Turnover in
2002 ($Mil.)
Turnover
Contribution in
2002
Network System
Intergration
Value Added Internet
Services
Management Software
Design and Training
EIS Vietnam, EIS
Thailand
One Connection
Singapore, One
Connection Internet
Vietnam
Viethink Vietnam
Internet Service
Internet Service Providers,
Providers, Private
Enterprise in IZ, Hotels,
Private Enterprises,
Enterprises,
Tourism Industry
Government Offices and
Government Offices
State Corps., MNC
and State Corps.,
MNC
Vietnam, Thailand
Global
Vietnam
9.3
1.7
1
78%
14%
8%
EIS- Corporate Profile and Strategy
EIS- Strategic Business Unit Positioning
30 %
Market Growth Rate
15%
SD
VAS
7%
NSI
- 8%
- 23%
1%
Relative Market Positioning
4%
8%
EIS- Corporate Profile and Strategy
Investment Strategies Options
GO SOFT
Focus on Services
and Software
Pro:
•Strong Market Potential
•In Line with Corporate Vision
•Higher Margin for Market Pioneer
•Tax Advantages
GO HARD
Focus on Providing
Hardware and
Infrastructure
Pro:
•Market Leadership in Vietnam
•Good CRM
•Strong Human Resource
Contra:
•High R&D Expense
•Risk versus Return
Contra:
•Conflict with Corporate Vision
•Limited Market Potential
•High Sale and Promotion Expense
Market Analysis
GO “SOFT” OPTION FOCUS ON SERVICES
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
SWOT Analysis
ONE CONNECTION SWOT ANALYSIS
STRENGTH
WEAKNESS
Product Leadership
Small Capital Base Company
Customer Focused
Product
No Brand Name
OPPORTUNITIES
Strong Market
Potential
Wide Customer Base
Globalization Process
Speeding Up
Lack of Distribution Network
THREADS
Not Favorable Regulation
and EconomicFramework in
Vietnam
 Short Life Cycle
Marketing Strategy
ONE CONNECTION MARKETING MIX
Marketing
Mix
Product:
Promotion:
•One Connection
•Value Added Internet
Service
•Four Package for
Four Segments
•English Name
•Child Companies in Target Market
•Media and Press Promotion
•OC Singapore as a pulling machine
•Attractive Sale Slogan
Target Customers
Pricing:
•Value Performance
Price
•Discount for Early
Register
Companies, Businessmen,
Families, Young People.
Distribution
Option 1
Option 2
Franchising
Choosing the
Right Partner in
Target Market
Traditional
Distribution
Network
Marketing Strategy Implementation
ONE CONNECTION SALE TRACK RECORD
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.
Lesson Learnt
ONE CONNECTION – REVIEW OF MARKETING STRATEGY FOR INNOVATIVE PRODUCT
Success Factors
Potential Issues
Solutions
Promotion
Hidden Competitors
Carefully Select New
Aggressive Promotion Strategy
Short Life Cycle
Target Market
Distribution
Market Acceptance in
Keep Investing in R &D
Practical Franchising System
New Markets
Diversify Capital Sources
High Leverage
Strengthen Relationship
Well Selected Target Countries
Product
Being Pioneer Owing the Techno.
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
EIS- Corporate Profile and Strategy
Business Models: Push - Pull
CEO is looking for the way to our Vision
OC is pulling EIS machine, Vietnamthink, OCI, IFE are pushing this machine
KMU is steering the right way, FMU & CDU is supporting & managing
VNTHINK
CEO: Chief Executive Officer
EIS : EIS Inc. (Vietnam)
EISS: EIS Service Co.,Ltd. (VN)
IFE: Innfex Inc. (USA)
OC: One Connection (Singapore)
KMU: Knowledge Management Unit
FMU: Financial Management Unit
CDU: Cooperation Developing Unit
Lessons Learnt
Innovation is 1% Inspiration
and
99% of Transpiration
Thomas Edison
Lessons Learnt
Q&A
Common Issues
Action Plan
Lessons Learnt
THANK YOU
Für weitere Informationen stehen wir Ihnen
jederzeit zur Verfügung !
ANDICO – International
Trading and Consultancy
422/9 Ho Van Hue, Dist. Phu Nhuan,
Ho Chi Minh Stadt, Vietnam
Tel.: +84 8 845 94 94
e-mail: andienco@fptnet.com.vn
Dr. Phan Huy Hong
(Dozent der Juristischen Hochschule - HCM)
Mr. Nguyen Thanh Quoc
(Mitarbeiter der BBI – HCM)