Assessment 1 ISYS2424 Individual Essay Viet Thuong PDF

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Summary

Table of Contents I. Introduction.............................................................................................................. II. Analysis..................................................................................................................... III. Recommendation..........

Description

Table of Contents I.

Introduction..............................................................................................................3

II.

Analysis.....................................................................................................................3

III.

Recommendation.................................................................................................8

IV.

Conclusion..........................................................................................................10

V. Reference list https://vietthuong.vn/khoa-hoc-nhac-online-cua-viet-thuongmusic-bat-dau-tu-ngay-1-4-2020..................................................................................10

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I.

Introduction

In the last few years, the musical industry in Vietnam has grown intensely due to the expansion of customer demand (Tran 2007). People, especially the middle social class and above, are having higher life standard which lead to higher interest in music and related sides such as musical instrument and music education. Hence, the Vietnamese music industry attracts several market participants and Viet Thuong Music company is considered as one of the most leading firms among them. The business was established in 1993 with the initial name as “Suoi Nhac School” – the very first private music school in Vietnam’s market at that time and officially become “Viet Thuong Music Company” in 3 years later. Through 20 years of development and innovation, the company has built up a large music education system, showroom network as well as distribution channels of musical instruments, pro audio and studio accross the country. In addition, Viet Thuong is currently focussing on expanding their business level up to 100 retail stores, 100 music schools and 30 new dealers every year to reach the goal of 32% of marketshare by 2026 (Viet Thuong). The firm also targets extremely at music education segmentation, hence, an online music learning platform is a critical point in their growth strategies. Based on the analysis of Viet Thuong’s business framework and strategies, this paper aims to evaluate the potential of the online music learning platform and its alignment level with the company growth. Besides, the possible obstackles about cyber security and music lessons copyrights when lauching this platform will be included in the next part. The following part will be about the solutions to handle the cyber security and promote the platform in Vietnam market. II.

Analysis

1. Viet Thuong’s business model, business segmentation and sales channels

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Currently, Viet Thuong divides its business activities into two main business models: Business to Business (B2B) and Business to Customer (B2C). B2B primarily focus on wholesaling with a broad wholesalers network (approximately 200 dealers) while B2C is about retailling with 26 retail store over the country. Through wholesaling and retailling, Viet Thuong offers over 5000 products from 50 international brands in music industry (Viet Thuong Profile 2019). Those products are classified under three different segmantations and nine categories: Musical Instrument (Digital Piano & Keyboards, Piano, Guitar & Gears, and Drum & Percussion), Pro Audio and Studio (Studio Equipments, Pro Audio, and Accessories) and Music Edution (Music classes and Miscellaneous Items).

Figure 1. The diversity of products offered by Viet Thuong Music Company (Viet Thuong website, 2020) 3

The wide range of products and services are distributed not only through the wholesaling and retailling channels but also through the project sales channel that serves business clients have the demands of musical instruments or pro audio and studio, and through the music schools which are located at every 26 retail stores (also known as official showrooms) of Viet Thuong. Various sales channels help Viet Thuong reach out multiple type of customer from individual to organization and satisfy their music-related

needs.

2. Viet Thuong’s vision and strategies for future growth In 2016, as the second biggest firm in the Vietnam Music Instrument market, Viet Thuong held 22% of the market share, just right after Yamaha VN which accounted for 28% (Viet Thuong’s Profile 2019). Currently, with the vison of becoming the market leader in the next ten years, the company are attempting to capture 27% of the market share in 2021 and 5 years later, this number will rise up to 32%. In order to achive the goal, a clear plan was built up in the 5 years strategy. Viet Thuong will add 30 new dealers each year as well as increase the number of retailing store up to 100 in total. Since the music education is identified as a key driver for the company’s grown, there is a specific strategy to develop this section. Having 100 retailling stores (or showrooms) accross Vietnam also means there will be 100 music schools which targets to the mid and high income level (Viet Thuong’s Profile 2019). Additionally, Viet Thuong will put effort in translating standard music text book from English to Vietnamese for more convenient in teaching and learning. Another crutial point in the strategy is electronic music school. This project is in construction with the aim to provide an online music learning platform for anyone who would like to learn muisc online, including students of Viet Thuong Music schools, primary and secondary schools ( from both public and private types) (Viet Thuong’s Profile 2019). 3. 4

Online music learning platform strategy evaluation

As described on the company’s website, the online music learning platform includes two options: general classes on a specific website address vtmes.vn and 1-on-1 classes. Each type of class is designed to fit with different student’s levels. Viet Thuong Music promised that this internet-based learning approach will significantly benefit for the students. It does not only saves time and monney when compared to the traditional music class, but also boost the learning progress efficiently due to the high interaction between techers and students (Viet Thuong 2020). This online learning music platfrom is a wise innovation of the company in the era of 4.0, when people are trying to expoint the applications of technology in almost fields, including studying. Digital technolog transformations which allows easier access to firms’ products or services will make firms reach out more customers, lead to the growth in revenue (Mehra 2019). Moreover, in the Covid-19 pandemic context, the e-learning is much more critical due to the sophisticated situation with campus closure or social distancing regulations (Teräs et al. 2020). In addition, online learning music platform can also help to improve brand awarness. To be more details, currently there are still some ctities in Vietnam do not have any official showrooms or music classes of Viet Thuong and the

promote learning method can give people in those places a chance to

experience Viet Thuong Music’s class. Then they will know more about this brand and other products or services offered by Viet Thuong and become the potential customers of the business. It short, e-music classes will direct and indirect improve the sales of Viet Thuong, which means the market share of the company will be expanded. Hence, developing the online music learning platform is a movement that aligns with the growth strategy of the company.

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Challenges when implements the online music platform 4.1. Cyber security

Any activities conducted through the internet base always have hidden risk in terms of cyber security (Austin 2020). In cyber security, information security is a crucial category to focus on due to the serious consequences if the privacy of data is breached (Eran et 5

al. 2018). Regards to the case of Viet Thuong, customers need to register an online account when they want to join the e-music classes which includes their personal information such as name, phone number and email address. If this information are stolen or sold for third party for improper purposes, it will cause unpredicable problems. A famous example of data stolen is Facebook when it was attacked and 50 million user profiles were taken to interfere the US President election (Cadwallar & Harrison 2018). Moreover, if the online platform requires online payment, bank card details also become a potential target for hackers. Additionally, once the online learning platform is attacked, online classes are possibly be disrupted because hackers has taken control of the system and prevent users from logging in. This problems may take Viet Thuong time and money to solve. More than that, the worst scenario is Viet Thuong have to pay the compensation for customers if they cannot recover the system and receive the disappoinments about their services. Obviously, Viet Thuong needs to consider carefully the importance of ensuring the cyber security of the online music platform not only because it directly affects Viet Thuong’s customers but also lead to the loss in profit and damage company’s reputation.

4.2. Copyrights of music lessons In Vietnam, the copyrights law seems to be not highly appreciated as the country is ranked 42th out of 53 countries in intellectual property (IP) protection ranking (Dang Khoa 2020). High quality music class with custom-made content is a big competitive advantage of Viet Thuong in the market but supposing that if there is someone buy the online music course and then copy the music lessons content for commercial purpose, Viet Thuong will face with a serious loss. Other copyrights-related problems which are illegal access sharing and unauthorised access also impact the revenue of the online music platform.

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III.

Recommendation

1. Handling the cyber security for Viet Thuong’s online music platform 1.1 Outsourcing IT service Firstly, Viet Thuong is not an expertise firm in technology filed, thus it will need the adoption of outsourcing IT. With the knowledge and experience, IT provider firm will build up a system that has high security as well as appropriate education functions from the very beginning steps. Cyber security can be avoided in the preparation stage like this to limit the occurrence of attack (Voskoboini ɫov & Melnyk 2018). And during the time the online platform is operated, the outsourced company will maintain the whole system and find out any existed errors that could be the potential entrance for hackers and fix these security (Varajão, Cruz-Cunha & Fraga 2017). One more reason that Viet Thuong should outsource the IT service is because outsourcing will help Viet Thuong save its resources to concentrate on firm’s core strategy (Gonzalez, Gasco, & Llopis, 2010). 1.2.

Preaparing a back-up system

Secondly, it neccessary to always having a back-up system to use in case the platform attack happened. It will save all the data has been registered, and minimizes the time delayed of online classes. According to Yarrapothu (2015), backup and disaster recovery play a vital role in IT operations and clou-based backup is the most satisfactory option due to its outstanding performance in different metrics and the cost efficiency. 2. 2.1.

Promoting the online music platform to Vietnam market Vouchers

on

different

distribution

channels

Currently, Vietnam is witnessing an explosion of e-commerce activities with the 7

apprearance of multiple e-commerce platforms such as Shopee, Lazada or Tiki. From June to August 2019, each month Shopee had an average of 34 million of visits, while Tiki and Lazda reached the threshold of 27 million and 24 million visits respectively (Kemp & Moey 2019). The high rate of monthly visits shows that Viet Thuong can reach out a large number of new customer if they sell their online music courses on these ecommerce platform in the form of e-voucher with discount price compared to the official price on Viet Thuong’s website. Grab application is also a great choice in terms of promoting channel because around 25% of Vietnam’s population uses this app (Ha Mai 2019). Grab’s users can use their points accumulated after each use of the service to redeem for valuable vouchers of services or products. Hence, customers can have a chance to experience the online cources of Viet Thuong with lower cost if the firm deal with Grab to have their courses vouchers apprears in Grab app. 2.2. Promoting through the musical instrument sale An easy way for Viet Thuong to improve the sales of online music courses is that they can offer a free trial or discount price for e-classes for any instrument purchases in Viet Thuong’s system. 2.3. Online marketing Facebook ads and Googles ads are the two most common online marketing tools in Viet Nam. A survey pointed out that 45% of respondents clicks on an ad because it matches with their interesting (Statista 2020). Thus, Viet Thuong should use the right searching keywords for their advitisement posts like “music courses”, “musical instrument playing”, “music school”, “online music learning” in order to increase the matching level to the right audience segmentation (Dayan 2020).

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Using these two tools separately is probably brings positive result, however, Viet Thuong can combine them together to create a “super-mega-major markting force” (Donnelly & Simonson 2020). To be more details, people who has searched on Google with keywords mentioned aboved will be segmented as a custom audience on Facebook and Facebook ads about the online music platform will be displayed to these people (Dayan 2020). Moreover, Youtube ads is a potential tools to expand reach and grow awareness about Viet Thuong’s online music classes. Target audience of Youtube ads will be the one who watch or search videos on Youtube about musical instrument playing instruction, classical music and so on.

IV.

Conclusion Overall, even Viet Thuong has been a well-known firm in Vietnam music industry,

it still has the ambition to be the leader in the market in 2026 with a clear and specific growth plan both in business sector and music education sector. A critical point in the music education strategy is developing an online music platform which is evaluated as a wisdom movement. However, there are hidden risks about cyber security and music lessons copy rights when implementing the platform, which can cause serious consequences in terms of revenue and brand reputation for Viet Thuong. To prevent the cyber attack, IT outsourcing and cloud-based back-up system were suggested as the efficient solutions. Furthermore, Viet Thuong should widely promote the online music platform to Vietnam market by selling the course vouchers on e-commerce platforms or Grab application, using the online marketing with Google ads, Facebook ads or Youtube ads as well as promoting through the musical instruments sale channel in Viet Thuong’s showrooms or retailer stores. V. Reference list Austin, G 2020, Cyber Security Education : Principles and Policies, Taylor & Francis Group, Milton, ProQuest Ebook Central, viewed 29 November 2020, 9

. Cadwalladr, C & Graham-Harrison, E 2018, 'Revealed: 50 million Facebook profiles harvested for Cambridge Analytica in major data breach', The Guardian , 17 March, viewed 3 December 2020, . Dang Khoa 2020, ‘Intellectual property protecion drives Vietnamese competitiveness’, Vnexpress, 11 February, viewed 3 December 2020, . Dayan, A 2020, '4 Ways to Make Facebook & Google Ads Work Better Together', WordStream, blog post, 5 March, viewed 4 December 2020, . Donnelly, G & Simonson, K 2020, '7 Reasons Google Ads and Facebook Ads Make the Perfect Pair', WordStream, blog post, 3 February, viewed 5 December 2020, . Gonzalez, R, Gasco, J, & Llopis, J 2010, ‘Information systems outsourcing reasons and risks: a new assessment’, Industrial Management + Data Systems, vol. 110, no. 2, pp. 284–303. Ha Mai 2019, ‘Grab đã phải chi bao nhiêu để chiếm lĩnh thị trường gọi xe công nghệ Việt Nam?’, Thanhnien, 2 May, viewed 4 December 2020, . Kemp, S & Moey, S 2019, Digital 2019 Spotlight: Ecommerce In Vietnam, Datareportal, viewed 4 December 2020, . Mehra, R 2019, 'How automation and tech is important for business growth', The Economic Time, 29 November, viewed 29 November 2020, . Statista 2020, Main reasons to click on Facebook ads among Vietnamese 2019, .

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Teräs, M, Suoranta, J, Teräs, H 2020, 'Post-Covid-19 Education and Education Technology ‘Solutionism’: a Seller’s Market', Postdigital Science and Education , vol. 2, pp. 863–878. Toch, E, Bettini, C, Shmueli, E, Radaelli, L, Lanzi, A, Riboni, D, Lepri, B, ‘The Privacy Implications of Cyber Security Systems: A Techonological Survey’, ACM Computing Surveys, vol. 51, no. 2, 2018, pp. 1–27. Tran Nhung 296213.html>.

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