(5032) assignment 2

ASSIGNMENT 2 FRONT SHEET Qualification BTEC Level 4 HND Diploma in Business Unit number and title Unit 1 Business and Business Environment Submission date Date Received 1st submission Re submission Da.

ASSIGNMENT 2 FRONT SHEET Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 1: Business and Business Environment

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Contents

I INTRODUCTION: 4

II COMPANY: 5

1 Company product/ service type: 5

2 Objectives: 6

III PESTLE ANALYSIS: 6

1 POLITICAL FACTORS: 6

2 ECONOMIC FACTORS: 7

3 SOCIAL FACTORS: 8

4 TECHNOLOGY FACTORS: 9

5 LEGAL FACTORS: 10

6 ENVIRONMENTAL FACTORS: 10

IV SWOT ANALYSIS 10

1 Strengths: 10

2 Weakness: 11

3 Opportunity: 11

4 Threats: 12

V Conclusion: 12

REFERENCES: 12

OPPO

I INTRODUCTION:

headquartered in Dongguan, Guangdong, a subsidiary of BBK Electronics OPPO offers several key products such as MP3 players, eBooks, DVD / Blu-ray players, and smartphones

Founder: Tony Chen

Established date: 2004, Dongguan, China

Headquarters: Dongguan, China

Parent company: BBK Electronics

Headquarters: Dongguan, Guangdong, China

Subsidiaries: Realme, OnePlus

OPPO is a major electronics manufacturer headquartered in China that was founded in 2004 To date, OPPO has been present in Europe, Asia, North America, and Africa has been ranked in the top five

Chinese phone brands and has won numerous major international awards

The first product marking the arrival of OPPO in the Vietnam market is the OPPO Find 5 smartphone, which appeared in late 2012 at a price of about 10 million VND

II COMPANY:

1 Company product/ service type:

Oppo offers major products such as MP3 players, LCD TVs, eBooks, DVD / Blu-ray and smartphones

Its products include the following models:

• OPPO A series (Low-cost models)

• OPPO K series (Mid-range models)

• OPPO F series (the main mid-range high-end model, has now stopped production and merged with the Reno series, but in the Indian market it still maintains the F series as a mid-range series)

• OPPO Find series (most high-end models)

Smartphones from OPPO make a strong impression on Vietnamese users thanks to loud advertising campaigns, as well as reasonable prices, beautifully designed to compete with other heavyweights in the smartphone business market

2 Objectives:

Marketing Objectives:

• Developing market share and position of OPPO in the Vietnamese market

• The market leader in the mid-end and high-end phone segment

• Create a good reputation and image with customers and convince world users that OPPO products are of international stature

Target:

OPPO targets young people who have a purse but are passionate about developing mobile technology, especially camera-related technology "Rookie" Oppo can capture about 8% of the market share after just over a year of the fighting because it creates products targeting each target segment, which are mid-range and high-end phones

III PESTLE ANALYSIS:

1 POLITICAL FACTORS:

a Positive Impacts:

The political environment is and will continue to play an important role in international business On the other hand, the political stability of the countries will be one of the favourable factors for businesses operating in a foreign environment Without political stability, there will be no conditions for stability and economic development, a healthy society Therefore, when developing business activities in the world market, Business must understand the political environment in the countries and countries in the region where it wants to expand their market

Mobile phones are not VAT exempt items and are subject to 0% and 5% tax rates

According to Article 11, Circular 219/2013 / TT-BTC, this item will enjoy a tax rate of 10% VAT is an indirect tax, that is, the buyer pays tax, and the seller collects it and returns it

to the state

b Negative impacts:

Enterprises do not understand the political environment in other countries and regional countries in the world

Tax policy: Import and export tax, consumption tax, income will affect the revenue and profit of the business The tax policy has a great impact on the production and business activities of OPPO: changes in the selling price

of products in the same line from time to time, due to the policy of import tax on components and spare parts

2 ECONOMIC FACTORS:

a Positive Impact:

• Oppo currently has the second-largest smartphone market share in Vietnam, trailing only Samsung OPPO, on the other hand, expanded rapidly in the Southeast Asian market "OPPO has emerged as a brand that is rapidly growing

to gradually become a leader in Southeast Asia," according to Canalys OPPO experienced a significant increase in a market with moderate growth The Southeast Asian market increased by 2% from the previous year, with 30.7 million units shipped in the quarter, while OPPO shipped 7.3 million units, representing a 49 per cent increase from the previous year

• Oppo has amassed a formidable retail army as a result of this strategy Oppo's choice of market penetration strategy is truly a calculated and intelligent move for the following reasons: Rural areas are devoid of Apple and Samsung stores, resulting in market gaps that Oppo can exploit; local retailers understand customer psychology and have developed personal relationships with their customers This is the quickest way for Oppo to reach customers, and because local customers are often not tech-savvy, they are easily persuaded by

"neighbouring" retailers They try to appear more and more to customers, increasing their ability to identify the brand, creating a very good relationship with customers, and increasing their success

b Negative Impact:

As you know, if a brand, specifically a phone brand comes to a country, it means that they must estimate the number of markets and potential audience This will be the factor affecting the selling price of the product, because along with the cost of building the brand, the strategy of cooperation in distribution, and discounts, will be a burden on the brand's revenue

The price level is influenced not only by tariffs and currency value differences but also

by market size As an example: How many customers target the product by 1.33 billion people in India or 1.39 billion people in China with a population of 100 million in Vietnam

3 SOCIAL FACTORS:

a Positive Impact:

• Social trends change users' smartphone experiences highly, along with the rapid increase in social networking platforms, these media create trends of taking selfies and sending GIF messages , share your favourite songs or express your feelings with people in the virtual world so find a machine that the

manufacturer mainly targets in the mid-range segment, the price ranges from

5-7 million VND but still meets the basic needs of one ideal choice Oppo

• Everyone, from the elderly to the middle-aged to the young, can own a smartphone because it is simple to use, easy to configure, and convenient for work and daily life

• Because Vietnam is still a developing country with a low middle income, Oppo's entry into the low-end and middle-price segments has made Oppo popular among the majority of Vietnamese people

• Oppo wishes to express genuine gratitude to customers for the smallest of gestures As a result, the technology company will send to the user community the program "Thank you for your connection," which will include a variety of gratitude activities and gifts

b Negative Impact:

Cultural conception: In recent years, there has been a trend in Vietnam, the trend of using expensive luxury cellphones is very popular in Vietnam Recognizing that, Oppo has continuously launched smartphones and is constantly changing in colour, style and style That means, Oppo has to spend a lot of money advertising, organizing big

promotions to compete with other brands

4 TECHNOLOGY FACTORS:

a Positive Impacts:

OPPO's competitive advantage has been identified as the Camera OPPO's product lines have always prioritized camera features such as the ability to capture sharp images and good light for "super virtual" selfies, rotating cameras, wide-angle cameras, dual selfie cameras, and so on Although the cameras of Samsung and LG are not inferior to OPPO's, a series of OPPO advertisements with impressive taglines such as "Selfie Expert" - Selfie expert, "Camera Phone" - Camera phone, "Unstoppable Selfie" - Selfie non-stop OPPO has gradually educated users that if you want to take a selfie, OPPO is the best, and the keyword associated with the user's mind when discussing "Selfie" is OPPO

b Negative Impacts:

Oppo's machines have previously used MediaTek chips This is a chip that significantly underperforms the Snapdragon in terms of performance, as well as smoothness and long-term stability

Oppo has also released several devices that use Snapdragon chips However, when compared to Xiaomi and Vivo, their prices are quite high

Its Android operating system makes use of a customizable interface called ColorOS, which is quite friendly and easy to use but becomes slightly laggy after a while

The majority of Oppo devices are not waterproof I'm not sure if it's the whole thing Oppo is forced to omit water resistance for mid-range and low-cost machines to maintain a more affordable price, and its Flagships are also not waterproof due to the use of indenting or sliding cameras

5 LEGAL FACTORS:

According to the provisions of Circular No 43/2020/TT-BTTTT, from July 1, 2021, mobile phones manufactured and imported into Vietnam must support 4G or higher technology Regarding the above issue, retailers, manufacturers, and distribution companies, when asked, all confirmed that they had fully understood the information and had business plans in compliance with the law Samsung, Xiaomi, Oppo, and Vivo all responded that they were not affected by this circular because their smartphones all use 4G technology or higher

Mobile phones are not exempted from Value Added Tax, items enjoy tax rates of 0% and 5% According to Article 11, Circular 219/2013/TT-BTC, this item will enjoy a tax rate of 10% This also makes OPPO a headache in which price range to put a product to reach consumers

6 ENVIRONMENTAL FACTORS:

According to Greenpeace (2017), OPPO, along with other Chinese smartphone manufacturers, have a very bad impact on the environment in their production process Although they can always rank quite high in markets around the world, they lack transparency in the use of raw materials and do not commit to using renewable energy

IV SWOT ANALYSIS

1 Strengths:

a Oppo phones aim at what users need, hitting the right audience:

Users in our country's market primarily require a beautiful, inexpensive, and basic machine that meets their basic needs Oppo did an excellent job, to be sure!

The machines produced by this company primarily target the mid-range segment, with prices ranging from 5 to 7 million, but they still meet basic needs such as listening to calls, taking pictures, playing games, entertainment, and so on If you're not too picky about technology and configuration, OPPO is a great option

b Take an effort to create, and lead the trend:

Specifically, since 2014, the Oppo N1 with Oppo's rotating rear camera design has appeared

And so far, there are many other designs released by OPPO, for example, the Oppo Reno with the design of a shark fin pop-up camera cluster, the Oppo Find X with the sliding camera cluster mechanism, and the Oppo F11 Pro With a pop-up camera, dozens of other brands have been learning, and VOOC super-fast charging technology

That's enough to show how creative Oppo has been Not only that, but there are also information and images about the edge-to-edge display technology, and the camera hidden under the company's screen

c Eye-catching design, youthful formal colour:

The goal is aimed at young, dynamic and individual people OPPO products are a bit of a simple, beautiful and trendy direction Colourful, dynamic and youthful colours are suitable for most users, not only suitable for young people but also suitable for many other ages

Quickly catch up with trends and modern technologies: Rabbit ear screen, full bezel screen, sleek face design,

d Easy to use:

OPPO products are simple to use because OPPO develops its software, Color OS The Color OS interface is intuitive and simple to use, as well as highly customizable, which adds to the enjoyment of the experience For the machine to run smoothly

2 Weakness:

Because the products that catch the trend up oppo's products are very quickly out of fashion Using low-cost technology results in poor long-term use

Other functions are not well developed: The OPPO F pays too much attention to the camera and neglects some features and configuration of the phone That could be a weakness when it comes

to competing with other big players: Apple and Samsung Galaxy, opponents even focus on operating systems, stocks, amp and speakers

Limited product segmentation: The OPPO F has only two product segments: mid-end smartphones and high-end smartphones while Samsung has segmented products that every class can buy

3 Opportunity:

OPPO is the first company to release a device that can connect to Viettel's 5G network in Vietnam

In the Vietnamese market, it has an official store called OPPO Shop 3.0

By hitting each segment hard, OPPO users can diversify the options and technologies they want from the company

4 Threats:

OPPO F's main competitors today are Apple and Samsung Galaxy They are constantly innovating their smartphones with cutting-edge technology to gain a larger market share

Because Samsung is one of OPPO F's suppliers, they may not be willing to share all of their cutting-edge technology with their competitors

Because of the large network of retailers, it is difficult to train a large number of employees of equal quality: The distribution network covers the majority of Vietnam While ensuring that good employees have the skills necessary to provide excellent customer service

V Conclusion:

OPPO has now surpassed other Chinese companies such as Huawei and Vivo, but their challenge is still Xiaomi, to take the leading position in the Vietnamese phone market imported from China, OPPO needs

to do a lot things have more breakthroughs in terms of technology and the perfection of their products When they do that, with the right product and marketing campaigns like today, they will probably be at the top in the next few years

REFERENCES:

Về OPPO - Công nghệ là nghệ thuật | OPPO Việt Nam (2021) Retrieved 11 May 2022, from

https://www.oppo.com/vn/about/

Thuế GTGT hàng nhập khẩu & thủ tục nhập khẩu điện thoại di động (2020) Retrieved 11 May 2022, from

https://lamketoan.vn/thue-gtgt-hang-nhap-khau-thu-tuc-nhap-khau-dien-thoai-di-dong.html#%3A~%3Atext%3DThu%E1%BA%BF%20gi%C3%A1%20tr%E1%BB%8B%20gia%20t%C4%83ng%20(GTGT)%3 A%2Cn%E1%BB%99p%20l%E1%BA%A1i%20cho%20nh%C3%A0%20n%C6%B0%E1%BB%9Bc

nghệ, Đ., & sách, T (2019) OPPO tăng trưởng mạnh mẽ tại thị trường Đông Nam Á Retrieved 11 May 2022, from

https://www.sggp.org.vn/oppo-tang-truong-manh-me-tai-thi-truong-dong-nam-a-610922.html

Cơ hội lớn cho OPPO vượt lên ở thị trường Việt (2019) Retrieved 11 May 2022, from https://nhipcaudautu.vn/kinh-doanh/co-hoi-lon-cho-oppo-vuot-len-o-thi-truong-viet-3332083/

Smartphone Xiaomi, Vivo, OPPO chưa thân thiện với môi trường (2017) Retrieved 11 May 2022, from

https://www.thegioididong.com/tin-tuc/smartphone-xiaomi-vivo-oppo-chua-than-thien-voi-moi-truong-1033893