V.

Value Chain Analysis

Value chain analysis is a template that companies use to understand their cost position and the
identify the multiple means that might be used to facilitate implementation of a chosen business-level
strategy. A firm’s values chain is segmented into two types: primary activities and support activities.
Primary activities are involved with a product physical creation, its sale and distribution to buyers and
after-sale services. Support activities provide the assistance necessary for the primary activities to take
place
1. Primary activities
a. Inbound logistics
As well as other e-wallets companies, Airpay has two primary components: software and information.
The software component stores users’ personal information as well as providing security and encryption
of data. The information component, in effect, is a database of details provided by the user which
includes names, shipping addresses, payment methods, amount to be paid and debit/credit card details.
b. Operations
User need to install the software on their device. Once this step has been completed, they must enter
the relevant information that is required. When users make a purchase online with Airpay, the e-wallet
will fill in their details automatically on the payment form. Airpay also require 2-steps verification to
protect users against hackers.
Airpay allow users to use various cards for one account, which help them not to look for cards or bank
information every time they want to make an online transaction. Retailers or merchants can only receive
random transaction number instead of receiving users’ card details. This helps protects against fraud.
c. Outbound logistics
Recent research by Nielsen stated that Vietnam had 53% of the population using the Internet, nearly
50 million people used smartphones. The software is available on both Appstore (iOS) and Playstore
(Android). Therefor, within a click, users can easily install and start to use Airpay for free. Moreover,
Airpay have a huge amount of key users from Garena and Now/Foody, which utilise radically the
ecosystem of Sea Group.
d. Marketing and sales
Airpay cooperates with local banks to have customers link their account with their bank accounts or
credit/debit cards. As far as we know, the have 16 banks in partnership at the moment: Agribank, BIDV,
ViettinBank, Vietcombank, AB BANK, Bac A BANK, EXIMBANK, Military Bank (MB), Nam A BANK,
NCB, OCB, Sacombank, SCB, SeABank, TP Bank, VIB. This firm also cooperate with other business
firms ( TOYOTA, Home Credit…) to encourage customers in paying bills by instalments with low
commission fee.
They push linked accounts by promotions. Customers can receive vouchers, discount promotions or
even money in their e-wallets. By using just one software, users now can access to 17 other associated
applications: Garena, Ocha, Shopee, Now, Vntrip, BDH Cineplex, Jump Arena, PIT, The Coffee House,
UR Box, CGV, FShare, VTV Cab, K+, TOPICA, FPT Plays. The main mission of Airpay is to help users
pay their bills, mobile top-up and game top-up by online transactions.

e. Services
 Air pay provide customers with service hotline, which means customers can now call them for account
problems or service problems anytime. There are also plenty of informative and supportive information
on their website. Users are able to find out how to use Airpay, how to unite their account, security
concerns… within a few clicks.
2. Support activities
a. Procurement
It includes the creation and management of request for quotations (RFQs), requests for proposals
(RFPs), requests for information (RFI) and managing supplier relationships. Day-to-day tasks may
include conducting market research, negotiating pricing, establishing terms and conditions for services,
resolving invoice discrepancies and communicating the status of purchases with internal customers.
b. Technology and development
Being a part of Sea Group - one of the biggest e-commerce companies in Vietnam, Airpay has the
advantages of technology and development.

c. Human resources management

They want to provide employees with a platform to grow and excel as an individual, unleash
their potential and make an impact in our region. They welcome passionate, determined to succeed
and having aspirations to make a real difference in society employees. Their employees have access
to best-in-class training programs and have chances to work with the best minds in region. Airpay
gives them the ability to develop themselves and helps them achieve their potential in a dynamic and
stimulating working environment.

d. Firm infrastructure
Airpay has local data centers which are mostly provided by Garena, Now, Shopee and the
advantages of finance supported by Sea Group. The headquarter is located at 23rd floors, Saigon
Center 2, 65 Le Loi Street, District 1. They are equipped with high quality technology equipment and
modern working place. They strive to build an institution that will last for generations and evolve with
time and that is founded upon our core values : “We serve, we adapt, we run, we commit and we stay
humble”

VI. SWOT analysis

1. Strengths
- Supported by large e-commerce group
- Utilization of available ecosystem
- Trending products for modern life
- Plenty of partnerships with reputatio
2. Weaknesses
- Lack of payment destinations in urban areas
- Unchanged habits of older population ( From 30 years old and above)
- Less consumer research in few areas
- Localized product
3. Opportunities
- New customers every year ( Freshman)
 - Improving trends
- Promotion addicted habits
- Increasing the partnership
- Increasing market knowledge of cashless payment
4. Threats
- Highly competitive markets
- Strong local competitors
- Security bug
- Personal information leaking
- Global competitors (Alipay)
- New entrants
VII. Strategy
At the moment, customer experiences is a new battlefield. It’s not about technology anymore,
it’s about convenience, speed and connectivity. However, consumers nowadays often use e-wallets
because of attractive promotions. Considering all the problems above, we’d prefer using integrated
cost leadership strategy to offer the market differentiated products at low cost.
First of all, Airpay should broaden their market by connecting partnership with local fashion
shops, coffee shops, milktea shops, bakery stores etc which are popular to targeted segment. By
using Airpay to pay the bills, customers will get discounts or vouchers for their next time. This will be a
win-win relationship, which encourage them to use Airpay more frequently. Moreover, membership
rewards is also important in order to increase customer loyalty. For example, customer will have 1
point for each 10.000 vnd paid, and they can purchase their points for gifts, vouchers, discounts …
And they can get higher membership rank with special cares and promotions ( Exclusive hotline 24/7,
higher points for each purchase…)
Second, Airpay have the advantages of the ecosystem of Sea Group but hasn’t utilized it. To
be specific, Shopee users are no longer supported to pay by Airpay. We think that Airpay should make
use of this advantages and give Shopee users this option. If they get more coins by completing the
transaction with Airpay or get more discounts (5%-10%) as using Airpay for food delivery on Now.vn,
consumers will use it more often.
Moreover, Airpay is not very superior and different to any other competitor, which cannot make
them draw more current customers from competitors. However, they can attract new customers every
year by pushing promotion for freshman. Airpay can organize some social event or sponsor for some
University clubs, Non-government associations… to draw attention and increase brand identification
levels.
Another point that Airpay should pay attention is viral television commercials like Shopee,
Tiki… Marketing process should be more exciting, trendy, informative to the market. They can use
famous KOLs or celebrities to make Airpay more reliable and popular. (Son Tung and Oppo, My Tam
and Grab, Shopee and Bui Tien Dung as well as Bao Anh, Tiki and Nha Phuong and Truong Giang…)
Last but not least, Airpay should focus on increasing customers experiences while using the
application. They received some unsatisfied feedback from users for the design. They can change the
themes throughout special occasions to get attractive and viral on social media. Security should be
tightened and speed, connectivity should be increased. These small actions will affect customers
decision and loyalty.
 After gaining a large amount of users, Airpay could develop more services such as giving
customers an advance with low commision fee or charge low annual fee to create profits.
VIII. Conclusion
The theory based frameworks and strategy mentioned above might be useful but the application
practices might be hard to achieve. It is also depended on the execution skills of the company and
organization culture. We believe that Airpay is able to create and deliver value not only by offering
distinguished product but also by gaining effectiveness and efficiency during payment process. By doing
our recommendations and follow the strategic management process, we are sure that Airpay will gain
advantages against their competitors and might be the new market leader in the future.