I.

Introduction

The Mobile World Company Limited (Mobile World Co. Ltd) was founded in March 2004 by
five co-founders: Tran Le Quan, Nguyen Duc Tai, Dinh Anh Huan, Dieu Chinh Hai Trieu, and
Tran Huy Thanh Tung. The company's main field of activity is buying, selling, and repairing
mobile phones, digital devices, and e-commerce related fields. Thegioididong.com has created
an unparalleled business approach in Vietnam by experiencing the mobile phone market from the
early 1990s and carefully examining the purchasing behaviors of Vietnamese clients. Thanks to
skilled staff and the website www.thegioididong.com, which functions as a mobile phone guide
and an e-commerce channel, the company has developed a distinct sales consulting style. In
Vietnam, he is the one in charge of death. Currently, thegioididong.com sells around 300,000
phones per month on average, representing roughly 15% of the country's legitimate phone
market share. More than 10,000 computers are sold on average each month, making it the
country's largest laptop vendor. Since the implementation of online sales and home delivery
countrywide in early 2007, the number of customers purchasing laptops through the website
www.thegioididong.com and the hotline 1900.561,292 has substantially increased, with an
average of 5,000 to 6,000 orders per month. This is a potential sales channel and a useful tool for
assisting customers in remote places in purchasing a satisfying product when they cannot view it
in person. The website www.thegioididong.com is a brand. With over 1,200,000 daily visitors,
Vietnam's largest e-commerce website provides thorough information on prices and technical
features of over 500 phone models and 200 laptop models from all major companies.
II. Market analysis

1. External Analysis

● Customers

As we all know, The Gioi di Dong caters to people of various ages and social classes. However,
because The gioi di dong focuses on the retail of electronic equipment (particularly cell phones),
the majority of its customers are between the ages of 18 and 35. Due to their large purchasing
power, this range is The gioi di dong's main customer.

To compete with its competitors, The gioi di dong aims to target customers in rural areas, which
means they have two distinct consumer groups: rural customers and urban customers. Customers
in metropolitan regions, on the other hand, continue to deliver the most profit to The gioi di dong
due to their great spending power and strong desire to follow new trends. Furthermore, the gioi
di dong has been expanding its network in rural areas in order to become the monopolist in this
rural retail market.

As a result, despite weaker economic development, The gioi di dong profit increased
significantly in both 2016 and 2017. They total more than 63 billion Vietnam dong, which is a
fortune for any Vietnamese enterprise.
The gioi di dong now has a significant advantage over its competitors as a result of the shifting
trend toward smartphone use and the expanding middle-income population. Along with brand
loyalty, which has grown over time as a result of good quality and customer service, brand
recognition is also growing, assisting The gioi di dong in making customers choose them as a
first choice. Similarly, sales from returning customers contribute significantly to The gioi di
dong's total earnings.

● Competitors

Because of the slower economic growth and the influx of new businesses, The gioi di dong
believes that now is not only the appropriate moment to expand but also the right time to
improve product and service quality.
According to a financial report released by The gioi di dong's CEO in October 2017, the
company has opened 599 supermarkets around the country. There are 116 Thegioididong.com
markets, 310 Dien may xanh markets, and 173 Bach hoa xanh marketplaces in this number.
There were 1854 marketplaces open to serve customers as of October 10, 2017.

This is the outcome of new retailers entering the market. As we all know, The gioi di dong's
most profitable offshoot in the past and present has always been the mobile retail industry. In
contrast to 2012, when The Gioi di Dong held a monopoly, this market now includes four large
competitors competing for market share. The gioi di dong (which accounts for the majority of the
market), Viettel (second), FPT Shop (third), and Vien Thong A (fourth).

According to the data below, the gioi di dong account for the majority of sales in mobile retail
stores. However, Viettel and FPT Shop, Vien Thong A are increasing their shop network, but
The gioi di dong's profit is steadily declining, leaving them no alternative except to enhance their
quality and service rather than compete with the others by expanding their network.

One of The gioi di dong's most notable techniques for maintaining their place in the mobile retail
sector is to target rural areas, whereas others choose to focus on urban areas. As a result of this
plan, The Gioi di Dong now has a good chance of becoming the most powerful retailer in rural
areas, which will enhance their income and profit.
2. Thegioididong.com Model 5 Forces

In general, Thegioididong operates in a perfect competition industry, with a plethora of tiny

smartphone merchants and stores around Vietnam selling commodity products (Samsung, Apple,
Oppo, and so on), and enterprises that are price takers. Thegioididong, on the other hand, takes
the reduced industry forces into account, resulting in a firm with a larger potential than others.

The most crucial aspect that has helped Thegioididong become the largest smartphone retailer in
Vietnam is its economy of scale and enterprise resource planning system, which have helped the
company drastically reduce costs and increase its bottom line since 2004.
Low Power of Supplier

To begin, Thegiogididong collaborates with prominent suppliers such as Samsung and Oppo
Smartphone to import items directly without the need for intermediaries. Second, Thegioididong
has the highest penetration, a large number of available locations, and a well-known brand
throughout Vietnam, allowing them to play a critical role in growing income for their suppliers
(40 percent smartphone market share). However, Thegioididong has greater influence than
suppliers in a win-win cooperative agreement.

Medium Power of Buyers

There are numerous merchants, small businesses, and entrepreneurs in the Smartphone Vietnam
Market. Consumers have a variety of stores to choose from, as well as price preferences and
promotions, all with the same product standard. Furthermore, as the middle-income population
grows, so does customer demand for high-tech smartphones and excellent service (such as
omnichannel, promotion, guarantee policy). Furthermore, the dearth of high-service mobile
phone retailers in Vietnam's rural and provinces results in a lack of purchasing power. Because
of their economic scale across the country (420 stores in 67 provinces), Thegioididong is the
only retailer that can apply consumer needs, accommodate price, and provide the best service.

Low Threat of new entrants

The expansion of the Vietnamese mobile phone market is approaching saturation, with annual
growth rates of only 8% to 9%. Furthermore, Thegioididong has been a strong competitor in the
market for many years, with a good working capacity and ERP system. With so many
competitors outside, it is difficult for new entrants to enter the smartphone Vietnam market and
become the next top firm.

Low Rivalry among competitors

The largest mobile phone omni-retailer in Vietnam, with a 40% market share and 80% revenue,
has a strong capital investment, an exceptional ERP to provide the best service, a wide
distribution channel, and, ultimately, economies of scale. In recent years, there has been less
rivalry among competitors.