ACADEMY OF FINANCE FACULTY OF CORPORATE FINANCE DEPARTMENT OF FINANCIAL ANALYSIS GROUP ASSIGNMENT CLASS: 59/09.01_LT1- GROUP 7 SUBJECT: FINANCIAL ANALYSIS THEORY Year 2023 2 TABLE OF CONTENTS TABLE OF CONTENTS. Overview of Mobile World Investment Corporation (MWG). Analysing retail industry and the operating environment of competition of Mobile World Investment Corporation (Porter’s five forces method). Analysing value chain of Mobile World Investment Corporation (Porter's value chain method).
Assets and sources of capital. Performance business activities. Build a model to forecast net revenue. 62 TÀI LIỆU THAM KHẢO.75 PHÂN CÔNG CÔNG VIỆC.
77 Question 1: Apply financial analysis methods to analyze Mobile World Investment Corporation in 2019-2020 I. Overview of Mobile World Investment Corporation (MWG). Full name: Mobile World Investment Corporation Head office: Suite T2-1.2, D1 Street, Saigon Hi-tech Park, Tan Phu Ward, Thu Duc City, HCMC Stock code: MWG Listed date: July 14, 2014 The number of outstanding shares: 452.894 shares (on 31/12/2020) Capitalization: Business activities: The main field of activity of the company is buying, selling, warranty and repair: computer equipment, telephones, phone components and accessories with the Mobile World brand, Dien May Xanh products and other products. food, food, beverage and other goods under the brand name Bach Hoa Xanh.
Mobile World Investment Joint Stock Company (MWG) currently operates retail chains including: thegioididong.com, Dien May Xanh (dienmayxanh.com), Bach Hoa Xanh (bach hoa Xanh. History and development: 2004 : March 2004, Mobile World Co, Ltd was established. October 2004, the company opened its first supermarket at 89A, Nguyen Dinh Chieu, HCMC. 2007: Mobile World Co, Ltd received the investment capital of Mekong Capital, converted into a Joint Stock Company to expand development opportunities.
2010: At the end of 2010, another system specializing in retailing electrical appliances and household appliances named Dien May Xanh was born. 2011: By the end of 2011, the number of 200 supermarkets increased by more than 5 times compared to 2010. 4 2012: March 2012, The Gioi Di Dong completed the "coverage" strategy in 63 provinces and cities across the country. Dien May Xanh has been present in 9 provinces and cities with the number of 12 supermarkets.
2014: On 14/7/2014, the company successfully listed 62,723,171 shares on HOSE. Market position and competitor: MWG has always maintained its position as the No. 1 retailer in Vietnam with a remarkable distance compared to other enterprises in the same industry. According to data in 2020, MWG's market share of electronics will reach 50% and Mobile phones will reach 55%, accounting for oversold the market.
MWG is the only company in the top 100 retailers in Asia-Pacific. With the No. 1 position, MWG has the advantage in opening more stores, nationwide coverage, thereby increasing revenue for businesses. FACTORS MAIN IMPACTS Political factors 1.Government policy: maintaining financial market stability, flexibly operating monetary policy with fiscal policy.
Political stability The company has the opportunity to grow and strengthen the distribution of products throughout the provinces and 3. Vietnam participates in many world cities across Vietnam. economic agreements such as Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), EU-Vietnam FTA (EVFTA), UKVFTA. E-commerce competition - The company has the opportunity to excel in product 5 quality, but it is difficult to compete on product cost with low-priced products from China.
- The challenge for the company is to come up with 5.Barriers to entry “Quality inspection strategies to attract consumers on promotional product agreement - ENT” prices to gain a position in the market and compete with foreign retailers in Vietnam. The company is challenged to comply with regional minimum wages and monitor the general salary of the 6. Policy with the workforce market to apply a competitive and appropriate salary policy for each department Economic factors 1.Economic growth GDP nearly 3% 2.The exchange rate is not stable Challenge the company in increasing the consumption of 3.Low level of disposable income of high-end technology products and growing the company's consumers revenue. The growth of the retail phone and Causing great challenges for the company in maintaining electronic equipment industry is growth and especially diversifying the product portfolio to getting slower and slower market to customers.
The challenge for the company to recruit more employees 6. Unemployment rate increased by when the company has encountered difficulties in human about 2.26% resource management with an increasing number of employees. Social factors 6 Opportunity for the company to continue to grow and 1. Population size with more than 96 increase the value of the company's retail market in million people Vietnam.
- Opportunity to increase demand for smart phones and 2. Trends of increasing use of the electronic devices, helping to increase revenue. Internet, mobile devices, electronic - Opportunity for the company to continue to increase its devices market share in the coming years by replicating the green supermini, bluetronic models. People's consumption habits tend to Opportunities for the company to promote online sales as shift from direct shopping to online well as a global shopping development trend with Bach Hoa shopping more due to the Covid Xanh, Dien Hoa Xanh store chain by taking advantage of epidemic.
the online channel Challenge the company in strategic planning, requiring 4. Cultural barriers leaders to be really flexible in decisions to go to market. - Opportunities to improve company image, increase employee engagement index in the company and employee 5.Style of life training activities to develop personal capacity. - Opportunity for the company to continue implementing useful programs, contributing to social responsibility Challenge the company to maintain its growth rate and 6.Covid epidemic record no loss in revenue Technological factors Challenges the company with old products that have not yet 1.
The level of technological recorded revenue has to replace new products and moreover, innovation is very rapid the company will not be protected by the manufacturer for the price of old products 7 Challenge the company to come up with innovative 2. Research and development activities strategies, improve service processes, and available products to catch up with trends and surpass competitors. Competitive challenges from new competitors entering the 3.Competitors' technological market. advancements and capabilities Environmental factors 1.
Recycled energy Opportunities to enhance corporate image, improve 2. Business trends towards sustainable operational efficiency and increase distribution of eco- development friendly products catching up with new consumption trends such as energy saving initiatives or increasing use of eco- 3.Business trend towards saving and friendly packaging self-destruct learning. efficient use of energy resources 4. Climate change: natural disasters, Challenge corporate growth as climate change negatively floods,.
affects consumer disposable income levels. Legal factors Challenges facing legal restrictions on information security 1.Legislation strengthens consumer and use of customer data with customer service provision of and investor protection telephone, electrical equipment, food products The company's challenge is to operate effectively and grow 2. Tax law well in order to pay taxes on time and according to regulations The company has the opportunity to offer appropriate salary 3. Labor Law and bonus policies and increase the distribution of 8 employees of the right age according to their regulations.
Legal challenges related to accessories that an individual or 4. Legal risk company provides products or services that do not live up to their original commitment. Analysing retail industry and the operating environment of competition of Mobile World Investment Corporation (Porter’s five forces method). Rivalry among existing competitors: High - Competition between companies in the industry is relative because many retail businesses enter the market.
Retailers not only compete for customers, but also for sales positions. - The demand for electrical products in Vietnam has increased, so many companies want to participate in occupying a corner of the market. Therefore, the competition in the market is very large and very fierce. Firms compete with each other on prices, promotions and customer care services.
- Barriers to exit the industry are not high thanks to the form of transfer. With the rapid growth of subscribers in developing countries, the number of mobile phone users worldwide will skyrocket. In Vietnam alone, there are more than 40 million mobile subscribers belonging to 6 service providers (MobiFone, Vinaphone, Viettel, S-Fone, EVN Telecom and HT Mobile). Bargaining power of suppliers: Low - Mobile and electronics retailers have the best bargaining power when dealing with suppliers because the suppliers have very good brands and are well known.
It can be seen that MWG are enterprises that enjoy higher gross profit margin as their scale increases. - Depending on the product line, the bargaining power of the 4G phone company is higher than the bargaining power of the other product line companies such as the 1280 type Nokia and the higher generation nokia. - When the supplier's bargaining power is greater, the higher the selling price of the product, the lower the market share and the higher the intensity of competition. The level of concentration in the industry is high, the product life cycle depends greatly on the development of science and technology.
- Switching costs between suppliers are not high. Bargaining power of customers: Moderate 9 - For retailers, customers are the group that creates pressure. Customers today have many choices to buy products at famous electronics supermarkets, which puts pressure on competition between brands. - Since this is a technology product, the bargaining power of customers is quite low, with a very large number of buyers and feature requirements for some product lines that do not have too much difference, thereby showing the intensity of competition.
Threat of substitute products: Low - Currently, Chinese electronic and electrical products are flooding the Vietnamese market with cheap prices that are suitable for people's spending budgets. Although the quality of genuine products is always superior, it is difficult to compete on price, especially in rural areas. Threat of new entrants: Moderate Domestic firms all have a certain position in terms of facilities, professional staff, and customer service. However, the Vietnamese government has created a barrier to entry into the industry "Quality Inspection Agreement - ENT" - a term foreign investment wants to expand supermarket chains in Vietnam.
This is a favorable condition for retail companies like TGDD to gain development advantages and higher competitiveness. Another alternative product of the modern retail chain is the online sales channel, which is more convenient and appropriate and suitable for young people. Selling online is the biggest risk for retail companies at the moment. Analysing value chain of Mobile World Investment Corporation (Porter's value chain method).
Main activities: - Production activities: The company entered retail on the laptop market in December 2006 and then expanded its activities into products such as phones, tablets, laptops, accessories, .Website system: www.com is the largest e-commerce website in Vietnam with more than 500,000 visits/day, ranked 25 in the top 25 websites in Vietnam (according to Alexa) providing detailed information on prices, technical features, .more than 500 phone models and 100 laptop models of all official brands in Vietnam. - Product research and development activities: 10 With unique creative ideas and bold innovations, the company has tried harder and harder to ensure quality for customers through famous brands in the world. markets such as Iphone, Samsung, Xiaomi,. - Logistics activities: Website always updates the latest product lines to meet the increasingly diverse needs of customers.
Products out of the production process are distributed to customers through the company's distribution channel system across the country, delivered to customers' places. In addition, Mobile World has also added three more partners to make it easier for customers to pay installment payments, which are Easy Creadit, online ATM and Cash24h. The steps to pay the installment payment are also very simple, just fill in the contract number, phone number and make the payment, it only takes 2-3 minutes, saving effort to go to the place of implementation. - Customer care activities: TGDD constantly offers great promotions to customers on Tet holidays, discount programs are always well received and appreciated by customers.