Dien May Xanh in Cambodia PDF

Preview

Summary

ĐẠI HỌC UEHTRƯỜNG KINH DOANHKHOA KINH DOANH QUỐC TẾ - MARKETINGTiểu luận cuối kìMôn học: Kinh doanh quốc tế IIGiảng viên: Dương Ngọc Hồng Mã lớp học phần: 21C1BUS Sinh viên: Lê Hoàng Phúc Khóa – Lớp: K45 – IBC MSSV: 31191025878 Nhóm: 3 (ĐIỆN MÁY XANH)Contents Preface I. Company profile 1. Brief intr...

Description

ĐẠI HỌC UEH TRƯỜNG KINH DOANH KHOA KINH DOANH QUỐC TẾ - MARKETING

Tiểu luận cuối kì Môn học: Kinh doanh quốc tế II Giảng viên: Dương Ngọc Hồng Mã lớp học phần: 21C1BUS5030581 Sinh viên: Lê Hoàng Phúc Khóa – Lớp: K45 – IBC03 MSSV: 31191025878 Nhóm: 3 (ĐIỆN MÁY XANH)

2

Contents Preface .................................................................................................................................................... 4 I.

Company profile ............................................................................................................................ 5 1.

Brief introduction of Blutronics ............................................................................................... 5

2.

Financial performance .............................................................................................................. 5

3.

Current international operations ............................................................................................. 6

II.

Entry mode................................................................................................................................. 6

1.

Cambodian market environment analysis .............................................................................. 6 1.1.

Geography .......................................................................................................................... 6

1.2.

Political ............................................................................................................................... 7

1.3.

Economic ............................................................................................................................ 7

1.4.

Technology ......................................................................................................................... 7

1.5.

Consumer behavior ........................................................................................................... 8

1.6.

Competition........................................................................................................................ 8

2.

Analyzing entry modes used by Bluetronics ........................................................................... 9

III.

Global strategy in one function .............................................................................................. 10

1.

Analyzing the firm standardization ....................................................................................... 10 Definition...................................................................................................................................... 10 a.

Standardization ............................................................................................................... 10

b.

Adaptation........................................................................................................................ 10

2.

Global strategy of Bluetronics ................................................................................................ 10

3.

Bluetronics' 4p Marketing mix strategy ................................................................................ 11

IV. 1.

2.

3.1.

Product ............................................................................................................................. 11

3.2.

Price .................................................................................................................................. 12

3.3.

Place .................................................................................................................................. 12

3.4.

Promotion......................................................................................................................... 14

Issues related to Bluetronics supply chain ............................................................................ 16 Description of elements in Bluetronics' supply chain .......................................................... 16 1.1.

Material flow: .................................................................................................................. 16

1.2.

Information flow .............................................................................................................. 17

1.3.

Capital flow ...................................................................................................................... 19

Issues faced by the firm and recommendation ..................................................................... 19 2.1.

Operational issues ........................................................................................................... 19

2.1.1. Supply chain management issues ................................................................................... 19 2.1.2. Decrease in inventory value ............................................................................................ 21 2.2.

Human resources issues .................................................................................................. 21

2.3.

Strategic issues ................................................................................................................. 22

2.3.1. Industry saturation issues ............................................................................................... 22

3 2.3.2. Competition issues ........................................................................................................... 22 2.3.3. Macroeconomic issues ..................................................................................................... 23

3.

2.4.

Legal issues....................................................................................................................... 23

2.5.

Issues with the information technology (IT) division's network security ................... 23

Issues that Bluetronics faces in plague context ..................................................................... 23 3.1.

Customers' prudence ...................................................................................................... 24

3.2.

Business supply chain interruption and transportation issues .................................... 25

3.3.

Ensure employee safety ................................................................................................... 26

3.4.

Respond to the unexpected growth in online shopping demand ................................. 26

References ............................................................................................................................................ 30

4

Preface The globe has become ever more global. Several Asian economies, including Vietnam, have maintained fast economic growth. New multinational corporations emerged from developing countries as well as the world's major industrial giants. The globalization of the international economy has increasingly impacted various enterprises of all sorts, from the very large to the incredibly tiny. Embracing the Vietnamese economy's current globalization trend, Mobile World Group (MWG) seeks to develop local commercial activities and explore and grow into an international playground. Cambodia is both a new electronics market and an established Mobile World market. When MWG initially entered this market three years ago, it brought the BigPhone model, which is akin to thegioididong.com, in its native country. At this time, smallscale mobile and phone stores occupied a considerable market share in Cambodia. Importing authentic items and selling them at the quoted rates makes it challenging for the BigPhone business to compete. However, they did not abandon trial and error to establish the best model and then repeat it on a big scale. Following acclimating to the market, the approach has now shifted. Bluetronics is claimed to be a more optimum model since it allows for a more fantastic shopping space and a more comprehensive range of items, ranging from consumer electronics and home appliances to phones and accessories. Recognizing the potential for Bluetronics to thrive in Cambodia, I chose the study topic for my essay as "Bluetronics' strategy to join the Cambodian market" to investigate how the firm handles the dynamic international business climate by identifying specific challenges. Linked to its marketing and supply chain management while operating in the Cambodian market, and then make recommendations for Bluetronics to enhance their performance.

5

I.

Company profile

1. Brief introduction of Blutronics Bluetronics (owned by Mobile World Group) is an improved version of Bigphone, founded in Cambodia in 2017. Based on the winning formula of Dien May Xanh in Vietnam, this model has been modified to meet Cambodia's local culture and consumer tastes. This Cambodian retail network of mobile devices, accessories, and communications services has 18 outlets in Phnom Penh during its first three years. Bluetronics operated 37 outlets in eight of Cambodia's 25 provinces by 2020. They specialize in selling genuine mobile devices and consumer goods, providing high-quality aftersales services, and collaborating with consumer financing institutions for installment sales, which customers in this market have not had in conventional mom-and-pop businesses. According to the estimate, Mobile World's Bluetronics electronics network in Cambodia would have 50 outlets by the end of February 2021,. 2. Financial performance Bluetronics' regular monthly income ranges from 1.2 to 1.5 billion VND/supermarket. MWG reported a consolidated net income of VND 30,827 billion in the first three months of 2021, a 5% increase over the same time last year, and an EAT of VND 1,337 billion (up 18 percent over the same period). Consequently, MWG has achieved 25% of its revenue objective and 28% of its full-year NPAT target. Revenue reached more than 9,100 billion dongs in March 2021 alone, and EAT received more than 338 billion dongs, up by 3% and 18%, respectively, over the same last year. According to the business cycle, March has the lowest revenue of the year (only months of operation with a minimum of 30 days) since it follows the high sales season during the Lunar New Year. Revenue often recovers in the second quarter due to the onset of the hot season (peak season for refrigeration) and the return of FMCGs following Tet (for food and consumer goods). The net profit margin for the first quarter of 2021 was 4.3 percent, up 0.4 percent points from 3.9 percent in Q1/2020, owing mainly to an increase in the gross profit margin from 21 percent to around 23 percent.

6

3. Current international operations On January 15, 2021, Bluetronics of Mobile World organized an event in Cambodia to commemorate the official milestone of reaching the 50th store, encompassing 13/25 provinces. With this volume, Bluetronics, from "rookie" to "big brother," swiftly became the game's leader in the Cambodian market. Bluetronics' retail sales scale is now nearly the largest in Cambodia. Despite the epidemic's odd ups and downs, competitors believe Bluetronics has a market share. Retailers and brick-and-mortar stores in Cambodia are "afraid" of the chain's rapid development and frequently changing promotions, which cause them to fall behind or be forced to run in terms of "extra lucky money" for clients utilizing KOLs. II.

Entry mode

1. Cambodian market environment analysis 1.1.

Geography

Cambodia is a market that shares a border with Vietnam, with nine shared border provinces, nine international border gates, nine national border gates, 30 sub-border gates, and several trails that are generally level. The canal system is ideal for transport on both sides of the city. Only 230 kilometers separate Ho Chi Minh City from Phnom Penh. As a result, the two nations have numerous advantageous conditions to encourage collaboration in various industries, including convenient transportation and a high rate of economic growth. Cambodia has a population of 15.2 million people as of July 2013, with 47 percent of the population being male and roughly 50 percent being under the age of 22. With its young and rising population, Cambodia will likely become a promising market shortly. The average annual population growth rate is 2.89 percent (from 1990 to 2008). The literacy rate was 76.1 percent in 2008, while the urban population rate was 18 percent, rising at around 4.5 percent each year. As a result, the fair also aims to contribute to developing partnerships and collaboration between the provinces and towns of Vietnam and Cambodia.

7

1.2.

Political

Cambodia is a constitutional monarchy, with King Norodom Sihamoni as the head. The power structure is divided into legislative, executive, and judicial branches, including the King, the Council of Kings, the Senate, the National Assembly, the Government, the Court, the Constitutional Council, and administrative agencies. Cambodia follows a policy of neutrality, permanent non-alignment, non-aggression, and non-interference in other nations' internal affairs. Cambodia became the tenth member of ASEAN in April 1999, the 148th official member of the World Trade Organization in September 2003, joined ASEM during the 5th ASEM Summit in Hanoi in October 2004 and is actively planning to join APEC as soon as feasible. 1.3.

Economic

Cambodia is one of Asia's poorest countries. Economic growth is difficult owing to corruption, a lack of education, a significant disparity between rich and poor, and infrastructure that is still deficient in some areas. Cambodia is an agricultural country that accounts for 20% of agricultural land area and employs around 80% of the people. Natural conditions and rare resources such as jewels, rubies, money, and timber are critical. Cambodia's economy began to expand in the 1990s, as its political situation progressively stabilized and it adopted a market economy. The economic growth rate is high and consistent, averaging 7-8 percent each year and exceeding 10% in some years (in the world financial crisis, GDP growth was low in 2008, only 5.5 percent, in 2009). reached 0.1 percent, and 5.9 percent in 2010). Cambodia's GDP increased by 7.3 percent in 2012, 7.6 percent in 2013, 7% in 2014, and 7.3 percent in 2015. 1.4.

Technology

Cambodia is the only ASEAN country without e-commerce legislation. Compared to Cambodia's neighbors, e-commerce is still in its early stages. Its development is hampered by insufficient internet infrastructure for a small audience, a complicated distribution mechanism, and low credit card usage. Furthermore, practically all transactions are done in cash, which adds to the relationship's security and cost concerns. Other challenges include the high cost of power and a scarcity of qualified IT specialists. Some local banks have begun to provide credit cards to enable internet transactions. An increasing number of online shopping sites appeal primarily to the tiny number of urban

8

consumers who have internet access. Facebook and other social media platforms are rapidly utilized for online retail and media spaces. The Council of Ministers is now reviewing the proposed e-commerce law, but it has not yet been made public. 1.5.

Consumer behavior

The number of individuals who go shopping in Cambodia has grown dramatically after the transition from closed to open markets, with just a tiny percentage reporting that they never or seldom go shopping. Depending on their location and distance, Cambodians shop in the grocery store, wet market, or supermarket once or twice a month. There is also a behavioral change in the young class, as they prefer to hang out with their pals at shopping centers and supermarkets rather than coffee shops. The majority of customers are price-conscious. While American items are frequently thought to be superb quality, many buyers will pick things from China or Thailand since they are less expensive. Prices are more outstanding in Phnom Penh, where government and industry are concentrated, and branded items are more frequent. There is evidence of a growing middle class sponsored by several international organizations, diplomatic missions, and international organizations. Cambodians are becoming more interested in E-Commerce, both as buyers and sellers. This industry's substantial untapped market potential is fueled by internet connectivity, intense smartphone usage, and a growing youthful middle class.. Mobile internet access is affordable, with costs below the global average and around 50% of Cambodians owning a smartphone. Smartphone usage is growing at a fast rate. In Cambodia, mobile e-commerce has proliferated in recent years. Mobile internet connection is inexpensive, with rates falling below the worldwide average and over half of Cambodians having a smartphone. Smartphone usage is rapidly increasing. 1.6.

Competition

Campura Triangulum, kfour, and Sunsimexico were the market leaders in Cambodia's consumer electronics and home appliances. Thai electric and household appliances held a dominant position in this sector until recently when they were forced to share their market share with subsequent competitors such as Vietnam, Korea, and Malaysia.

9

Cambodia's retail electronics market is relatively modest. A few retailers also make warranty and after-sales assistance challenging to get. The largest electronics retailer in town owns just approximately 20 outlets. The total number of other chain shops in this market is fewer than 50. 2. Analyzing entry modes used by Bluetronics Bluetronics is entering the Cambodian market using a Wholly Owned Subsidiary entry route, namely a Green Field Venture, based on the following analysis: + Although Cambodia's electrical and home appliances industry is still in its infancy, MWG is confident enough to enter it with a wholly-owned subsidiary (Bluetronics) and MWG's competitive edge in technical competency and organizational culture. This form of entrance also allows Bluetronics to develop anything from the ground up rather than acquiring a pre-existing firm, as most existing domestic competitors in this sector appear to have no potential or minimal joint strategy and vision. It also allows Bluetronics to be more flexible in coordinating worldwide plans (using financial power from the parent company to increase competitiveness). + Furthermore, when cost limitations are severe, it may make sense for the organization to construct its value chain to optimize value-added at each level. Consequently, Bluetronics may be able to specialize in producing only a fraction of the product line or particular components of the final product, swapping parts and commodities with other subsidiaries in the company's worldwide system. Establishing such a global manufacturing system needs a high level of supervision over the actions of each affiliate. The various processes must accept centrally determined decisions regarding how much they will produce and how their output will be priced for transmission to the next phase. Bluetronics will use the Green Field Venture method to tackle this difficulty to realize location and experience curve economies. + Despite reforming its institutions and becom...