Tranthithanhnhan bk19496 BUSINESS AND BUSINESS ENVIRONMENT ASSIGNMENT 2 BK02 k11

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

PROGRAM TITLE: BUSINESS AND BUSINESS ENVIRONMENT_ASSIGNMENT 2 UNIT TITLE: BTEC-02K11 ASSIGNMENT NUMBER: ………

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STUDENT NAME: Trần Thị Thanh Nhàn STUDENT ID: BK 19496

MOBILE NUMBER: 0348329020

CONTENTS

II COMPANY INTRODUCTION 3

1 Company product/service type 3

2 Aims & objectives 4

III PESTLE ANALYSIS 5

1 Political factors 5

a, Positive impacts 5

b,Negative impacts 5

- The conditions for political stability and economic development and social health are still limited 6

2 Economic factors 6

a, Positive impacts 6

b, Negative impacts 7

3 Social factors 8

a, Positive impacts 8

b, Negative impacts 8

a, Positive impacts 9

b, Negative impacts 9

5.Legal factors 10

6.Environmental factors 11

IV, SWOT ANALYSIS 13

1, Strengths 13

a, Oppo phones aim at what users need, hitting the right audience 13

b, Massive advertising, designed towards young people 13

c, Take effort to create, lead the trend 13

d,Eye-catching design, youthful formal color 14

e, Easy warranty, long-term warranty policy 14

f,Easy to use 14

g, Top-notch selfie camera, suitable for "virtual life" 14

h, Suitable for Vietnamese people 14

2, Weaknesses 15

3, Opportunities 16

4, Threats 16

V Conclusion 16

VI References 16

I REPORT INTRODUCTION

OPPO Electronics Corp is a Chinese manufacturer of Android mobile devices and

electronics in China, 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 established in 2004 with headquarters in China To date, OPPO has been present throughout Europe, Asia, North America and Africa, ranked in the top 5 of Chinese phone brands and won many major awards in the world

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

- Coming to Vietnam, OPPO always desires to provide customers with the best mobile device experiences through sophisticated, beautiful design and many smart technologies

II COMPANY INTRODUCTION

1 Company product/service type

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

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 R series (high-end models, currently discontinued and merged into the Reno

series),

⚫ OPPO Reno (high-end series, considered to be the successor of the R and F series,

with many technological improvements, comes with reduced-priced versions)

⚫ 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 full of fierce

2 Aims & objectives

The OPPO mission

- Oppo is bringing exciting experiences through clever and sophisticated designs

Oppo is not afraid to experiment with new things and think bolder to design products

that serve people with high-tech products and, importantly, those technologies are

practical and useful for human life “Our mission is to deliver the smartest and most

modernly designed digital products to consumers” -Oppo

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

- Expanding the high-end smartphone segment

- Create a good reputation and image with customers, convince world users that

OPPO products are of international stature

- Reduce the cost of winning back customers

- Increased competitiveness

Market target:

Key to Oppo's marketing strategy is focusing on young people with a passion for

technology, a passion for discovery "Newcomer" Oppo can capture about 8%

market share after just over a year of fighting because it creates products targeting each target segment of mid-range and high-end phones with clear USP

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 favorable factors for businesses operating in the 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 its 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, the seller collects it and returns it to the state

- Vietnam is a politically stable country

-

b,Negative impacts

- The conditions for political stability and economic development and social health are still limited

- 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

(Phones for goods are not exempt from VAT, goods are subject to the tax rate of 0%, 5% According to Article 11, Circular 219/2013 / TT-BTC, this item will enjoy

the tax rate of 10%.)

2 Economic factors

a, Positive impacts

- Oppo is currently the smartphone brand with the second largest market share in Vietnam after Samsung

- On the other hand: OPPO grew strongly in the Southeast Asian market

(According to Canalys: “OPPO has emerged as a brand that is growing strongly to gradually become a leader in Southeast Asia.” In the context of a modest growth market, OPPO recorded a huge increase The Southeast Asian market recorded a 2% increase from the previous year, with a total of 30.7 million units shipped in the quarter, while OPPO recorded 7.3 million units shipped, recording an increase 49% growth compared to the previous year.)

- When entering the Vietnamese market, Oppo has launched a mid-price strategy but the device has a high configuration and beautiful shape for example5

such as: Oppo Find 5, Oppo R1, Oppo R7 gradually Oppo develops mid-range products such as Oppo F1, Oppo F1 Plus, Oppo A9, A91 And now Oppo has developed the product line Luxury has a high price difference compared to other product lines such as OPPO Find X2 with the price of 23,990,000 VND, Oppo Reno3 Pro at 14,990,000 VND, It can be seen that Oppo uses a low price pricing strategy to attract customers, The price of a smartphone is 20% lower than other phones in the same class Oppo uses the "retail price to pay money" strategy All Oppo product lines set a retail price such as: Oppo Find X2 23,990,000, Oppo A9 5,990,000, A91 price6,490,000 Oppo understands consumer psychology, they can be ready to upgrade 10,000 compared to the current selling price that customers do not complain about, but Oppo does not do that, they create a young psychology for customers, find themselves "profit" when buying the product Place: Oppo has proven itself to be a global brand when it appears in many countries and Oppo products are available in 21 countries around the world from Africa, South Asia, Europe, Australia and America In addition to the headquarters in Guangdong, Oppo also has location-based offices that can research and sell according to the preferences and requirements relevant to the culture of each country such as OPPO Bangladesh, OPPO Pakistan, OPPOSri Lanka, OPPO India, OPPO Thailand, OPPO Vietnam, OPPO Malaysia, OPPO Philippines, OPPO Myanmar and OPPO China Distribution network is dense, concentrated in locations with a large number of target customers such as universities, colleges, cinemas, commercial entertainment centers… Part of the success of Oppo that is completely different from the rest of the competition is: "greening the rural market" is different from Apple or Samsung, instead of building a system of genuine stores, Oppo spleen Enter the rural market by giving high commission retailers a willingness to build

Oppo billboards With this tactic, Oppo has built itself a powerful retail army This

choice of market penetration strategy is truly an intelligent and computational move by

Oppo for the following reasons: Rural areas are empty of stores of Apple and Samsung,

creating market holes that Oppo can unleashed raging; Local retailers understand

customer psychology very well and have built a personal relationship with their

customers This is the shortest way to help Oppo reach customers and local customers

are often not too tech-savvy, they are easily persuaded by “neighboring” retailers

livestream consulting, introducing new products, the company's gift programs, they try

to appear more and more to customers, this increases the ability to identify the brand,

create a very good relationship with customers, and increase successful single lock

function

Tăng trưởng thị phần của oppo những năm qua

b, Negative impacts

- As you know, if a brand, specifically a phone brand comes to a country, it means

that they have to estimate the number of markets, 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, discount, will be a

burden on the brand's revenue

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

also greatly affects the market size For example: With the size of 100 million people

in Vietnam, how many customers target the product by 1.33 billion people of India or

1.39 billion people of China

- Recent years are affected by the economic crisis that tightens consumer spending

- Vietnamese people have low income compared to other countries in the region and the world (1,300 USD) Therefore, this affects customers' psychology, especially in the current economic crisis

Currently, interest rates are 9% / year, loan interest rates are 14% -15% / year Although there is a decrease but still at a high level, consumers who have demand for consumer loans are still hesitant and hesitating In addition, manufacturers, assemblers and accessory suppliers also find it difficult to access loans to expand and develop scale

- Economy: The growth or recession of the economy has a direct impact on the purchasing power and expenditure structure of the population Purchasing power depends on current income levels, price indexes, inflation

For example, when the economic crisis occurs, Vietnam is also affected, businesses have to try their best to overcome, including OPPO To overcome this difficult time, OPPO Vietnam has sold to the market phone models with prices relatively suitable to the income of Vietnamese people, ranging from over 3,000,000 VND to 7 ,000,000 VND

3 Social factors

a, Positive impacts

- In our country's market, users mainly need a beautiful, cheap, easy-to-use machine that meets basic needs One dmittedly, Oppo has already done an amazing job

- Social trends change users' smartphone experiences highly, along with the rapid increase in social networking platforms, these media create trends of taking selfies, sending GIF messages , share your favorite 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 meet the basic needs of one ideal choice Oppo

- Reasonable price suitable for all low to high income users

- From the elderly, middle-aged, young people can all own a smartphone because

it is easy to use, simple to configure, convenient for work and daily life

- Vietnam is still a developing country with a low middle income, so the entry into the low-end and middle-price segment has made Oppo a majority of Vietnamese people

- Oppo wants to bring customers sincere gratitude from the small thing Therefore, the technology company will send to the community of users the program "Thank

you for your connection" with many gratitude activities and gifts

b, Negative impacts

- Young people: Smartphones, laptops, and tablet devices are cheaper and more attractive, leading to a very high trend of changing phones from brands

- The financial resources to buy the right smartphone discourage young customers who are under financial pressure even more discouraged

- 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 color, style and style That means, Oppo has to spend a lot of money advertising, organizing big promotions to compete with other brands

4, Technological factors

a, Positive impacts

- If the iPhone positions its products as "the" - minimalism, the products all omit all buttons, luxurious designs, and focus on customer success; Samsung pursued

"innovation" - innovation, with designs and technologies being constantly innovating: making screens bigger, adding water resistance to focus on the audience of technology enthusiasts; Nokia Lumia pursues the Windows product ecosystem - "Window Phone" focuses on Windows computer users OPPO realizes a potential market is still open: dynamic young people I love trendy fashion accessories and have a habit of taking regular selfies

- With that in mind, OPPO has immediately chosen its competitive advantage as the Camera OPPO's product lines always focus on camera features such as the ability

to capture sharp images and capture good light for "super virtual" selfies, rotating cameras, wide angle cameras, dual selfie cameras Although the camera of Samsung or LG is not inferior to OPPO, but with a series of ads from OPPO with impressive tagline such as "Selfie Expert" - Selfie expert, "Camera Phone" - Camera phone, "Unstoppable Selfie" - Selfie non-stop OPPO has gradually educate (educate) users that if you want to take selfie, then OPPO is the best, and the keyword attached to the user's mind when talking about "Selfie" is OPPO

b, Negative impacts

- Until now, Oppo used MediaTek chip for its machines This is a chip that loses performance compared to Snapdragon quite a lot, along with the lack of smoothness and long-term stability

Oppo has also launched a number of devices using Snapdragon chips However, their prices are quite harsh compared to Xiaomi and Vivo

Its Android operating system uses a customizable interface ColorOS, quite friendly and easy to see, but slightly laggy after a period of use

Most Oppo devices are not waterproof Or the whole thing, I'm not sure

For mid-range and cheap machines, Oppo is forced to omit water resistance to have

a more comfortable price, and its Flagships, due to the use of indenting or sliding cameras, are also not waterproof

This is actually pretty bad for its expensive machines It makes Oppo products less premium than Samsung or Apple

5.Legal factors

Currently, the Vietnamese economy is in the transition from a centrally planned economy to a market economy Some irrational factors of the previous economic model still exist and need specific solutions to remove in the coming time One of the issues to be addressed is the monopoly situation of state-owned enterprises The existence of too many state-owned enterprises (including many inefficient ones) and the monopoly of SOEs in many fields are one of the reasons used by US lawyers to assert Vietnam did not have a market economy in the Vietnamese catfish lawsuit In order to integrate into the world economy as well as ensure the conditions for joining the WTO in the coming time and avoid losses in international trade, this issue needs to be completed in order to provide a reasonable level for monopoly of businesses state industry, both directions with international practices, and at the same time ensure to promote domestic production

Principles of international commercial law:

* National Treatment Principle: Imported and local goods must be treated fairly - at least after foreign goods enter the market The same goes for domestic and foreign services, foreign and local patents, copyrights and trademarks These principles apply to trade in goods and services, as well as trade-related aspects of intellectual property rights

Most-Favored-Nation Treatment (MFN) Principle: The MFN principles ensure that every time a WTO member lowers trade barriers or opens markets, that member must do so with respect to services and merchandise All WTO members are the same, regardless of their economic size or level of development The MFN principle requires that all WTO members be given any advantage in favor of any other country A WTO member can give advantages to other WTO members without having to give advantages to other non-members

(In Article 4 Import and Export Procedures Decree 69/2018 / ND - CP of the Government detailing a number of articles of the Law on Foreign Trade Management)

- The World Trade Organization - The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) requires signatory states to increase intellectual property rights (also known as prerogatives) exclusive intellectual property) This, controversially, has had a negative impact on access to essential drugs in some countries, such as underdeveloped countries where the local economy is incapable of producing much technical products such as pharmaceuticals