Innovation for Explosion A Strategy of EIS Corp. Designed for the Workshop “International Marketing Strategy of

1. 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

2. 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.

3. Agenda EIS- Corporate Profile and Strategy Market Analysis SWOT Analysis Marketing Strategy Analysis Marketing Implementation Analysis and Evaluation Lessons Learnts

4. Agenda EIS- Corporate Profile and Strategy • EIS – Organization Structure • SBU Portfolio Positioning • SBU Stragic Positioning Market Analysis SWOT Analysis Marketing Strategy Analysis Marketing Implementation Analysis and Evaluation Lessons Learnt

5. EIS- Corporate Profile and Strategy 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.

6. Vietnamthink, Inc. Software Design R&D, TRADING EIS- Corporate Profile and Strategy EIS Organization Structure: One Connection Pte. Ltd.(Singapore) OCI (One connection Inc.- Vietnam) Internet Services HOLDING Internet Services TRADING EIS Ltd. (Thailand) EIS. Ltd (Vietnam) EIS Corporation Network System Integration (NSI) TRADING Networking System Integration (NSI) TRADING Innfex Inc. (USA) Innovation for Explosion R&D

7. EIS- Corporate Profile and Strategy Financial Highlights $ 70 000 Turnover Pro Person : Well above the Average Local Ratio of $ 13 000

8. EIS- Corporate Profile and Strategy EIS- Strategic Business Unit

9. 30 % 15% 7% - 8% - 23% EIS- Corporate Profile and Strategy EIS- Strategic Business Unit Positioning Market Growth Rate VAS SD NSI 4% 1% 8% Relative Market Positioning

10. EIS- Corporate Profile and Strategy Investment Strategies Options GO SOFT Focus on Services and Software GO HARD Focus 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

11. 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.

12. Market Analysis

13. SWOT Analysis ONE CONNECTION SWOT ANALYSIS STRENGTH WEAKNESS • Product Leadership • Customer Focused Product • Small Capital Base Company • No Brand Name • Lack of Distribution Network OPPORTUNITIES THREADS • Not Favorable Regulation and EconomicFramework in Vietnam • Short Life Cycle • Strong Market Potential • Wide Customer Base • Globalization Process Speeding Up

14. Marketing Strategy ONE CONNECTION MARKETING MIX Marketing Mix • Product: • One Connection • Value Added Internet • Service • Four Package for • Four Segments • Promotion: • English Name • Child Companies in Target Market • Media and Press Promotion • OC Singapore as a pulling machine • Attractive Sale Slogan Target Customers Companies, Businessmen, Families, Young People. • Distribution • Option 1 • Franchising • Choosing the Right Partner in Target Market • Pricing: • Value Performance • Price • Discount for Early • Register Option 2 Traditional Distribution Network

15. 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.

16. Lesson Learnt ONE CONNECTION – REVIEW OF MARKETING STRATEGY FOR INNOVATIVE PRODUCT Potential Issues Solutions Success Factors • Hidden Competitors • Short Life Cycle • Market Acceptance in New Markets • High Leverage • Promotion Aggressive Promotion Strategy • Distribution Practical Franchising System Well Selected Target Countries • Product Being Pioneer Owing the Techno. • Carefully Select New Target Market • Keep Investing in R &D • Diversify Capital Sources • Strengthen Relationship with Supplier and Banks

17. 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

18. 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 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

19. Lessons Learnt Innovation is 1% Inspiration and 99% of Transpiration Thomas Edison

20. Lessons Learnt Q & A Common Issues Action Plan

21. Lessons Learnt THANK YOU

22. 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)