A research study submitted in partial fulfillment of the requirements for the degree of Master of Business Administration, School of Management

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2000

This study attempted to identify segments in Web Development market in Ho Chi Minh city and to select taget segments for VITICO. Based on this, an overall strategy, including an internally consistent combination of value-base strategy, generic strategy, and investment strategy, was defined. At first, the study examined the basic factors relating to market segmentation. For avoiding disconnection from specific customer needs, the customer segmentation was mainly based on their benefits sought and purchasing interests before being more segmented by demographic. It was found that in long term VITICO should taget Commerce Systems segment and also pay attention to Networked System segment in high profitable cases, but in short term VITICO should also serve the first-time, high potential prostpects in Basic Web segment. For the future success VITICO should set up the suitable values and consider the customers's needs/ wants/ preferences as the root for every decisions and operations. In addition to this, VITICO should choose a high level of Web Development service differentiation to gain a competitive advantage in market targets, especially in Commerce Systems market with the high requirement of professional level and multi - supportting services. It is also necessary to develop the innovation jointly with another company, which has capability in traditional audience development techniques, in the form of strategic alliance.