Marketing Communication in Morocco PowerPoint Presentation

Marketing Communication in Morocco - PowerPoint Presentation Example As such, this report is about advertising in Morocco and the marketing communications tools and techniques used in this particular country. The report starts by explaining the meaning of marketing communication in order to gain a full understanding of the whole concept. This will be followed by an outline of advertising in this country as well as anevaluation of the structure of advertising with regards to laws that exist in this nation. The last part of the report will outline the recommendations that can be implemented in order to improve the situation regarding marketing communications within Morocco. Theoretical framework of marketing communication In order to gain a full understanding of the concept of marketing communication, it is imperative to begin by explaining what marketing communications is all about with regards to advertising and how it influences the customers to buy certain products. Basically, marketing communications can be defined as, â€Å"the process of presenting an integrated set of stimuli to a market target with the aim of raising a desired set of responses within the market target and setting up channels to receive, interpret and act on messages. from the market to modify present company messages and identify new communications opportunities,† (Lancaster & Reynolds, 149). The company can influence the customers to buy its products given that it can assume the role of both sender and receiver of messages that are related to different market factors. These messages are specifically tailored to appeal to the interests of as many customers as possible in a bid to enhance the company’s viability in its operations. Therefore, it can be seen that marketing communication is one major element that influences the consumers to buy certain products offered through responding to messages disseminated to them about various products offered by different organisations. Marketing communica

Comparison of Republicans and Democrats Essay Example | Topics and Well Written Essays - 500 words - 3

Comparison of Republicans and Democrats - Essay Example Recent Supreme Court rulings have allowed unlimited, undisclosed donations to be made by the super-rich and by multinational corporations to politicians from both parties that are seeking election. This creates a situation where both parties must do the bidding of these powerful donors once they are elected. If they do not, then these donors will support someone else in the next election. Both of these parties are dependant on rich people and special interest money to support their candidates. Another way Democrats and Republicans are similar is they refuse to take any responsibility for anything bad that happens. Both parties blame the other incessantly for the problems in America. Republicans blame the current state of the economy on the Democrats even though a Republican Congress and President sewed the seeds of the financial meltdown. Democrats ignore worthwhile gains Republicans make in everything from social policy to international relations. They ignore the amount of funding Republican administrations have sent to help AIDS victims in Africa while focusing on any comment or policy by a Republican that might be a bit offensive of dim-witted. Both of these parties are similar in the way that they react negatively to the other party. It is true that these two parties do differ in their basic ideology. The Republicans claim that they want to reduce the role of government in the lives of American citizens. They claim that the government is too big and that we need to cut expenditure. They believe in low taxes and self-reliance. The Democrats say that they believe the government can make a positive difference for people, especially the poor. They believe in funding social programs that help people get good educations and good jobs.     

INTRO TO THIRD SECTOR Article Example | Topics and Well Written Essays - 1000 words

INTRO TO THIRD SECTOR - Article Example Many nonprofit organizations have been negatively impacted by the bad economic times in recent times, which have lowered donation income. This paper discusses different concepts associated with running and managing a nonprofit organization. Nonprofit Management Focusing on the importance of managing stakeholder and relationships in nonprofit organizations, some of the most important stakeholder groups include volunteers, suppliers, lenders, government, and the community. Nonprofit organizations face similar accountability issues as private businesses. Some of the accountability issues nonprofits face are fiduciary, legal, professional, and the duty to preserve and serve the public good. Michael in his argument states that, stakeholder groups have a lot of influence over nonprofit organizations. Managers of nonprofit organizations must clearly understand the expectations of stakeholder groups. It is imperative for managers to keep the lines of communication open at all times with its stakeholders. Some of the mechanisms that are used by nonprofits to facilitate communication with stakeholders are conferences, advisory committees, member surveys, newsletters, and data sheets (Michael, 2013). Research Statement and methodology From perspective point of view we find that, nonprofit organizations provide vital services that markedly contribute to the health of our communities. The goal of this research in regards to Nonprofit Management aspect however, is to find the concrete solutions that should be initiated in such organizations to enhance growth and provision of quality services in our communities. We believe that fundamental organizational and management principles can be used by leaders in the nonprofit sector to strengthen both their systems and service delivery. The Nonprofit Management Program however, provides affordable, practical and accessible information to people working in and with the nonprofit arena, whether they are paid staff, directors, board me mbers, philanthropists or volunteers. It integrates commitment facets to entire community and that’s why this research plays a vital position in analyzing the better things to be considered for better service delivery (Drucker, 2006). Meanwhile, the manager of a nonprofit has control over the relations with its stakeholders. The support of stakeholders can be maintained by satisfying their concerns and meeting their expectations. The effectiveness of a nonprofit organization is dependent on the ability of these entities of maintaining productive relationship with all stakeholder groups. One of the findings of the study performed by the author of the journal article is that when executives use a consistent or thematic approach in dealing with the different stakeholder groups the organization is perceived as more effective. More so, the article provided an interesting discussion of the influence stakeholders have on nonprofit organizations. It is in the best interest of a manag er to maintain constant communication with stakeholders in order to understand their needs. The existence of nonprofit organizations is deeply engrained in the society of the United States as it has deep roots. The Greco-Roman culture places emphasis on community, citizenship, and social responsibility. Two distinct concepts associated with nonprofits are charity and philanthropy. Charity refers to giving intended to attend current human needs, while philanthropy is

Approaches to Effective Change Management Essay

Approaches to Effective Change Management - Essay Example It is important for change managers to be open for new ideas that may be significant in the change process, which encourages all the stakeholders involved to participate and own the organizational objectives, thereby making it possible for the change managers to accomplish their tasks (Ivancevich et al. 2007). Kotter (1996) observes that change management also requires that the important decisions be defended from denunciation by other players who might not be informed or whose interest might only be focused on resisting change irrationally. If change managers allow new ideas to be dismissed in such a manner, there can be no progress. However, while defending the ideas against criticism, it is important to consider the suggestions of others who might have a different perspective in regard to approaching change. For example, technical personnel who understand the organizational systems better can offer essential advice regarding the necessary changes that are beneficial. Flexibility i n decision making is important for change to be accomplished. In other words, change managers need to disregard the manner in which they have always approached matters related with decision making. They need to allow flexible practices that broaden their scope of thinking, which allows them to identify new opportunities and methods of working. Rigidity in decision making hampers innovativeness in organizations since they do not open up to change (Szamosi & Duxbury, 2002). In other words, organizational culture is important in determining the success of the change process. It may hinder or promote change and therefore change managers should be keen on maintaining a culture of flexibility in organizational decision making. Promotion of flexible working is also important to ensure that the employees are aware that the typical procedures followed in the workplace can be changed at the realization of any opportunity for improvement, which is significant in avoiding resistance to change a mong the organizational staff (Lines, 2004). According to Ivancevich et al. (2007), successful change management involves learning from past experiences. The change managers can use examples of situations where they failed in the past and apply the knowledge to avoid undesirable occurrences in the change process. In choosing the approach towards implementing new ideas, it is important to keep focused on the positive aspects instead of looking at the possibilities of encountering difficulties in the implementation process. Focusing on potential difficulties leads to undesirable pessimism that may hamper progress. Risks also need to be shared by forming strong partnerships that are also significant in developing new ideas (Szamosi & Duxbury, 2002). Bennett & Durkin (2000) observes that the information obtained in the change management needs to be analyzed and sorted out to distinguish between the vital information from the irrelevant. Failure of the change managers to make out the dif ference in such information leads to the presence of surplus data that makes the tasks even more difficult. Such situations cause exhaustion and low morale in implementing the organizational activities, and the change process may be abandoned before the change management goals are accomplished (Mourier & Smith, 2001). On the other hand, Lines (2004) observes that there is a tendency for managers and data collection staff to make assumptions that they collect all the information that can be accessed while they do not. In other words, improper judgment regarding the information received by the change managers leaves substantial information that might be useful to the management

Staffing policies Essay Example | Topics and Well Written Essays - 1000 words

Staffing policies - Essay Example Contents Abstract †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..2 Executive Summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..4 Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 Objectives †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦4 Staffing Policies in the Royal Dutch Shell plc†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦5 International Expansion and the Staffing Approaches†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.5 E.P.R.G. Concept†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦....8 Appendix†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...9 Reference List†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..10 Executive Summary The staffing policies, applied by the most MNEs, generally depend on the key business strategies followed by the companies. Considering the research by Howard Perlmutter, the choice among ethnocentric, polycentric, and geocentric staffing strategies can be stipulated by the company’s marketing orientation. Therefore, the key aim of the report is to review pieces of research that reference Perlmutter’s concept and analyze the scientific value, as well as the correctness of the concept itself. Introduction The staffing policies and principles applied by the international corporations are generally featured with the E.P.R.G. approach, which is developed and theorized by Howard V. Perlmutter. In fact, most multinational companies have to be multicultural and rely on the experience, knowledge, and culture of their foreign employees in order to operate successfully overseas. Therefore, in accordance with the research by Perlmutter, the choice among ethnocentric, polycentric, or geocentric approaches in staffing practices depends on the aims and plans of the company. Objectives 1. Review academic articles and research referencing H. Perlmutter’s E.P.R.G. concept. 2. Define the weaknesses and strengths of the concept and whether the other researchers agree or disagree with it. Staffing Policies in the Royal Dutch Shell plc Royal Dutch Shell plc is known for its ethnocentric approach for staffing. In accordance with the rules of the corporate policy, most financial officers working for Shell are the Dutch citizens. The key reasons of this strictness are associated with the high qualification of these experts and considerable lack of highly experienced and qualified managers in the countries where the company operates. The other reasons are: Inability (and, sometimes, unwillingness) to follow the corporate culture rules; Tight control, which causes amplified stress on the managers. Most executives can not bear such a high pressure; Ethnocentric approach is a part of the company’s corporate culture. The changes in this approach will require deep changes in the entire HRM policy while the company is facing issues that are more challenging now. However, it should be emphasized that technical personnel (engineers, technicians, exploration personnel) can be from other countries. The company had to consider the fact that German, Russian, Brazilian, and Arabic drilling and exploration engineers are of the same qualification level as the Dutch experts. International Expansion and the Staffing Approaches In fact, polycentrism and geocentrism in recruiting policies take place when the company is extending its operations to the overseas markets. In accordance wi

Identity and identity politics Essay Example | Topics and Well Written Essays - 250 words

Identity and identity politics - Essay Example owever, they never lost their identity and their feeling is that the country retains it as a â€Å"residual sovereignty.† Scots’ have a party of their own that did so well last year and proved its worth and potentiality of their identity. Mr. Salmond, Scots’ first minister and leader of Scottish National party, wants a referendum by 2014 to fulfil the promise, (Ascherson web). According to Ford, social identities are a product of politics. He claims that â€Å"social identities are inherently and irreducibly political† (Ford web). It is true that some identities are a product of politics. Scots after winning elections last year, Mr. Salmond is leading them towards a referendum, which will see them as an independent country. Calhoun argues that identity is seen in the relationship between essence and appearance and that it had to be achieved for development, (Calhoun 37). I feel that this need to identify Scotland as a country is triggered by the political success. The idea of a possible referendum is quickly gaining acceptance among the Scots and therefore, it is just a matter of time before the overwhelming power of identity takes place. I think the main reason for Scots desire to move and be independent is to develop themselves as an independent nation. Identity is a great need of all human beings and Scots is no exception. Ford, Thompson, Richard. â€Å"Political Identity as Identity Politics.† Unbound Harvard Journal of the Legal Left. 2009. 10 March 2012. Macintyre, James. â€Å"From Devolution to Independence.† The New York Times, 2012. Web 9 March 2012.

Vietnamese telecom market Essay Example for Free

Vietnamese telecom market Essay Introduction Together with breakthroughs in technology, mobile telecom has been showing great innovations and bringing enormous benefits to consumers. Vietnamese mobile telecom market, through only a few decades of development, has proven to be an extremely potential industry. With analysis from the microeconomic standpoint, I would like to clarify some notable matters seen in Vietnamese mobile telecom market today. This essay is organised in three parts: * Part I: Market Overview. This part provides brief information about development history of the market and what the situation of the market is nowadays. * Part II: Market Trends. This part deals with recent movements in Vietnamese mobile telecom market. * Part III: Consumers: Gain or Lose? The final part of this essay analyses the benefits and losses that consumers face as a result of recent changes in the market. PART I – Market Overview 1. Vietnamese Mobile Telecom Market: A Brief History As a developing country, Vietnam has its mobile telecom market started quite late. Though the demand for mobile services arose in the beginning of the 1990s, the first mobile telecom company of Vietnam – MobiFone – did not come into operation until 1994. This year marked the foundation of Vietnamese mobile telecom market. Following steps of MobiFone, two more company joined the market: Vinaphone (1997) and Viettel Telecom (â€Å"Viettel† for short) (2004). However, before 2000, the use of mobile phones seemed to be restricted for urban and rich people. At that time, only the rich could afford the cost of using mobile service. The cost for a postpaid subscription reached almost VND1,000,000 and the money consumed in one minute’s mobile phone call could cover the cost of food in a day for a rural family. One of the reasons for this extremely high cost was that the market at that time was highly monopolistic. Until 2000, there were only two mobile service providers in Vietnam, MobiFone and Vinaphone – both of which are subsidiaries of Vietnam Posts and Telecoms Group (VNPT). Most consumers were not wealthy enough to access mobile service, so they stuck to the use of landlines, which, in fact, were also not very popular especially in the countryside. The emergence of Viettel as a mobile service provider in 2004 was one of the biggest jump in the history of Vietnamese mobile telecom market. Viettel started to provide mobile services at a shockingly low price: a mobile phone user might pay as little as VND50,000/month only. This low price encouraged the quantity demanded for mobile services to increase sharply. As time goes by, the cost of using mobile phones has become cheaper and cheaper, causing the number of mobile subscribers to soar: at the end of January 2012, there were 118. 5 million mobile subscribers compared to only 0. 3 million in 2000. The number of service providers has also increased to 7: MobiFone, Vinaphone, Viettel, S-Fone, Vietnamobile, EVN Telecom and Beeline. Over 19 years of development, from a market exclusively for high-income consumers, the mobile telecom market has been recognised as one of the most active market in Vietnam and almost everybody, rich or poor, is capable of owning and maintaining a mobile phone. Why do service providers seek to increase their number of subscribers by lowering prices and giving big promotions? The answer is, in the short run, most costs incurred by a telecom firm are fixed costs, such as costs for infrastructure and bandwidth. Average total cost, as a result, decreases as the number of subscribers increases, thus making larger profit for the firm. Hence, firms have strong motivations to attract more and more people to use their services. 2. How the Market Pie Is Divided Today The current mobile telecom market in Vietnam can be seen as a typical monopolistic competition. Three biggest suppliers in the market are the ones with longest histories: MobiFone, Vinaphone and Viettel. All these companies are state-owned; MobiFone and Vinaphone are under control of VNPT, while Viettel is a subsidiary of Vietnamese Military Telecom Corporation. Together they control almost the whole mobile service market. According from statistics of the Ministry of Information and Communications, in 2011, Viettel was the leading firm with a market share of 36. 72%. MobiFone and Vinaphone stood at the second and third positions with 29. 11% and 28. 71%, respectively. In total, the three state-owned companies took up nearly 95% of the mobile service market, leaving just over 5% for the remaining service providers, namely EVN Telecom, Vietnamobile, Beeline and S-Fone. The reputation of these firms is so huge that once a person starts using a mobile phone, his first thought of what provider’s service to use that crosses his mind would generally be one of them. Three leading firms in the market pursue different business objectives. Aiming at low-income consumers, Viettel has applied low-cost packages to meet the needs of the majority of consumers. On the contrary, MobiFone and Vinaphone focus mainly on providing high-quality services to people with higher income. Below are the ranks in market shares and service quality of the three biggest providers of mobile services in Vietnam according to an examination conducted by Department of Information Technology and Communications Quality Management (under the Ministry of Information and Communications) in 2009: Provider| Market Share| Service Quality| MobiFone| 2| 1| Vinaphone| 3| 2| Viettel| 1| 3| Overwhelmed by big firms in the market, small firms such as S-Fone, EVN Telecom, Beeline and Vietnamobile have had to struggle to survive. Sharing only 5% of the market, these providers have been facing enormous difficulties in increasing the number of subscribers and profits. Two of them, EVN Telecom and Beeline, are eventually sold to other firms. These MA’s will be analysed in the following part. PART II – Market Trends The three leading firms in Vietnamese mobile telecom market – MobiFone, Vinaphone and Viettel – now possess great market powers, and naturally they desire to take over the small firms in order to have more control of the market. Below are three notable events that have occurred recently in the market which would have lasting effects on its path of development in the future. 1. Viettel’s Acquisition of EVN Telecom EVN Telecom is a company belonging to Electricity of Vietnam Group (EVN). Joining the mobile telecom market in June 2010, after just over one year of operation, EVN Telecom faced the risk of being acquired due to poor business outcome (slow subscriber growth, unsatisfactory revenue, pressure on EVN to focus on its major field, etc. ) and substantial liabilities to Viettel and VNPT. Some telecom firms had the intention of acquire EVN Telecom, such as Viettel, FPT Group and Hanoi Telecom (the owner of Vietnamobile). After many speculations about what firm would take over EVN Telecom, it was officially announced that EVN Telecom was going to be sold to Viettel. However, the acquisition was not smooth right from the beginning. In November 2011, Hanoi Telecom expressed its view that Viettel’s acquisition of EVN Telecom might violate Competition Law, emphasising that it would probably make Viettel a monopolistic firm in the market. Until December 2011, Government eventually agreed on Viettel’s plan as in this case, Viettel was merely a market leader, not a monopolistic firm. 2. Beeline Disappeared in the Market. In 2009, GTel Mobile Company, a joint venture of GTel Global Telecom Corporation of Vietnam and VimpelCom Group of Russia, brought Beeline mobile telecom service into operation in Vietnamese market. However, after three years, VimpelCom decided to sold all of its 49% of shares in the joint venture at US$45 million to GTel â€Å"in order to focus on our key markets†, said the Vice President of VimpelCom. Of course this is not the real answer to the question of why VimpelCom withdrew from Vietnamese market while it had not broken even, regarding its total investment of up to US$463 million. Right after its debut in the market, Beeline conducted many discount programmes and promotions to raise the number of subscribers, such as Big Zero and Millionaire’s Cost Package. These policies thus lowered its ARPU to less than US$1. Moreover, its shockingly low prices cannot help them surpass the â€Å"giants† in Vietnamese mobile telecom market whose brands have been set in minds of consumers though its subscriber growth was exceptional: about 15,000 new subscribers per day in 2011. The fact that Beeline’s profit did not live up to its VimpelCom’s expectation caused it to constrain Beeline’s operation and eventually to sell out its shares to GTel, making Beeline a completely domestic brand. Many people would doubt whether Vietnamese mobile service market has become â€Å"immune† to foreign investment as VimpelCom has failed to make profit here while it has been extremely successful in Russian and Eastern European markets. Is the market so saturated that no new firm could possibly achieve a market share from the hands of established firms? Will VimpelCom’s failure warn foreign investors against entering Vietnamese telecom market although we have been a member of WTO for five years? 3. MobiFone and Vinaphone to be Merged March 2012 was a month of vibrancy in Vietnamese mobile telecom market when rumour had it that MobiFone and Vinaphone, two out of the three biggest service providers, would be merged as a step to restructure VNPT. MobiFone and Vinaphone have followed different development directions despite being subsidiaries of the same group, which has been an enormous waste in infrastructure. A merger of the two companies is expected to improve service quality and efficiency, thus lowering the prices charged on consumers. This information was confirmed by VNPT’s management though an official decision of Government has not yet been made for fear that this merge might violate Competition Law. If the merger of MobiFone and Vinaphone is successful, the new company will constitute almost 58% of the market, threatening the survival of other companies, especially small firms like S-Fone and Vietnamobile. Earlier in 2011, according to the regulations of Telecommunications Law – an individual or organisation is not allowed to own more than 20% of shares in each of two telecom firms operating in the same telecom market – VNPT stood between two options: equitising either of MobiFone and Vinaphone or merging the two. If choosing to equitise MobiFone, VNPT still could not own more than 20% of shares and might have to sacrifice a large amount of profit as MobiFone contributed to over 50% of its profit while taking up only about 4% of human resources. The second option – a merger – would subject VNPT to violation of Competition Law. On the other hand, according to the Vice Head of Department of Competition Management (Ministry of Industry and Trade), market share is not the only criterion to examine VNPT’s merger scheme as it may vary from year to year. Competition power, market access capacity, opportunity seizure, etc. are vital elements to be considered. The cornerstone of the merger, if successful, is a close supervision and control of Ministry of Industry and Trade as well as Ministry of Information and Communications. 4. What Are the Trends? Along development steps of the market are the shifts showing what its trend is. Overall, Vietnamese mobile telecom market, although service quality has been greatly improved and price never stop falling, has hardly ever been viewed as a competitive market. At first, it was a complete monopoly, and then reached the peak of competitiveness with 7 suppliers; now it is getting closer and closer to an oligopoly. (For illustration purpose only) The market now is the race between VNPT and Viettel. Nevertheless, this is a counterfeit competition as both are state-owned firms. Government ought to study this matter intensively since it has both advantages and disadvantages. If it continues to let the two compete with each other, consumers will benefit while state funds invested in them will be partly wasted due to self-competition and vice versa. PART III – Consumers: Gain or Lose? 1. Competition Makes Consumers Better off Most mobile phone users would agree that they are benefiting more and more from service providers’ policies. Ten years ago, only wealthy people could own a mobile phone and afford the use of mobile telecom service, which is a completely distinct from today’s situation where mobile technology is nothing strange to most people, regardless of their income. The shift of the market from a monopoly to a more competitive one enables consumers to choose the service provider which suits them best in quality and price. Landlines services are being outnumbered by mobile services and will probably soon become obsolete as now they cannot compete with mobile services in price, let alone in convenience, diversity and flexibility. In addition, telecom services are the only items whose prices have constantly decreased, moving against the storm of inflation in Vietnamese economy. D2 S11 S2 D1 E1 P1 P2 E2 Q2 Q1 (For illustration purpose only)| The increase of quantity supplied is greater than the increase of quantity demanded, making the equilibrium point move from E1 to E2. At E2, P2 is lower than P1 and Q2 is larger than Q1, which makes consumers better off. | 2. The Trend of Monopolisation: Would Consumers Suffer? Monopoly causes deadweight losses – this is undeniably true. Though consumers have been enjoying more and more benefits from service providers at least in the past few years, we may wonder if this could last for long when it comes to the trend of monopolisation which is becoming clearer and clearer in the market. After EVN Telecom and Beeline, will there be another acquisition that makes another small brand disappear? Will big firms take over all the small ones to rule the whole market? If someday there are only state-owned companies providing mobile services, will they agree with each other to raise service prices and prevent new firms from entering the market, which undoubtedly shrinks consumer surplus? Suppose that day would come, consumers may try to constrain their use of mobile services. However, the amount of reduction would be negligible since mobile services are now so necessary that the demand for them is relatively inelastic. Consumers today are richer and much more dependent upon mobile services than they used to be; therefore, it would not be easy for them to cut down on using mobile phones to save money. Service providers would keep earning more and more profits from consumer welfare. In general, monopolisation harms the benefits of most people while benefiting only a small group of people. Monopolisation is a two-edged trend, so it is important to balance the benefits between suppliers and consumers. An ideal mobile service market may be one with a small number of firms, i. e. three or four, but with comparatively uniform market shares. This enables infrastructure to be effectively exploited as well as market power to be evenly distributed among suppliers, reducing the probability of a monopoly arising. Conclusion There would be not enough space to discuss all factors of a market within a short essay; however, I have tried to apply microeconomic theories to analyse notable features and remarkable changes in the market that have had significant influences on consumers, together with given personal evaluations and opinions about the development trend of the market. I hope that eventually I have achieved a clarification of economic principles hidden in daily-life matters such as behaviours of firms and consumers in the mobile telecom market in Vietnam. Due to time pressure as well as inexperience in researching and writing, my essay may contain errors and misunderstanding. I would like to receive your feedbacks and suggestions to help me improve its accuracy and quality. Reference * Gregory Mankiw, Principles of Microeconomics (5th Edition). * VnExpress. net, Development of Vietnamese Telecom Market. * CafeF. vn, Viettel’s Aquisition of EVN Telecom Might Violate the Law. * Tuoitre. vn, Beeline Is to Disappear. * Tienphong. vn, Merging MobiFone and Vinaphone: Good and Harm. * Vcci. com. vn, Telecom Market: Back to Monopoly? * National Assembly, Competition Law, 2005.