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Welcome
Welcome
Presentation On
Presentation
On

Financial analysis of BDCOM online ltd

Submitted to
Submitted to

Mr. Md. Ridwan Reza

Senior Lecturer

Department of Business Administration

Submitted by

Name

ID

MD. Maidul Islam

0901010017

Nishita Roy Toma

0901010026

Safinaz Amin Anni

0901010028

Shanu Uddin Rubel

0901010054

Ahmed Shehab Chowdhury

0901010136

Global economic outlook The Global IT industry is one of the fastest moving
Global economic outlook
The Global
IT industry
is
one
of
the fastest
moving

industries in the global economy. Explosive growth is

being propelled by rapid advancements in internet- related infrastructure and services.

In Global perspective the IT sector of Bangladesh is not as developed as like other country. But BDCOM had struggle enough to establish them as a renowned

internet service provider (IT firm).They are not as skilled

as other global IT firm because of lack of IT infrastructure & facilities related this sector.

Domestic economic outlook(CONT.)

At present Information Technology (IT) is a subject of

widespread interest in Bangladesh. There are around

100 software houses, 35 data entry centres, thousands of formal and informal IT training centres and numerous computer shops. The Government has declared IT as a

thrust sector and that computer training centre will be set

up in each divisional and district headquarters of Bangladesh. A tremendous activity is going on in every sector including e-commerce, e-governance, computer

networking, Internet, web browsing, web applications,

multimedia product development etc.

Domestic economic outlook

Some active steps and initiatives are already there, Highlight below for an exposure of the present and future prospects of IT in Bangladesh.

Telecommunication Banks support Human resource IT awareness

E-commerce

Industry Analysis(CONT.)

The information technology industry in Bangladesh has gradually come of age and today accounts for more than Taka 25 billion or USD350 million in annual revenues.

It is still a tiny blip compared to a GDP nearing USD100 billion but it's a noticeable blip that is growing markedly every year.

Bangladesh today is the third largest exporter of apparels and this

industry will

continue to dominate our export basket for the

foreseeable future.

Industry Analysis

Software and graphic design service exporters raked in

nearly USD33 million from July 2008 to June 2009 an

increase of 32 percent from the previous year despite severe economic recession in most buying countries.

The growth

trend is getting stronger

with time

as

IT

entrepreneurs

scale

up

their

operations

riding

on

increased

overseas

market

penetrations

and

bigger

investments

Five Forces Analysis(CONT.)

Threat of new entrants:

The IT industry is a well established market and the threat of a new entrant is quite low, as the technology needed to rival the devices already available is quite advance if they want to differentiate from them.

The barriers to entry in the IT industry is high because any new entrants will need high investments in R&D, technology and marketing in order to compete with the established organizations.

In conclusion the threat of new entrants is very low and not a factor which BDCOM will have to worry about in the near future.

Power of suppliers:

•Although BDCOM rely on its suppliers to supply equipment for their advanced

Internet service, there are actually a number of large equipment makers, which

BDCOM could switch to.

•The software suppliers BDCOM are available now, so the bargaining power of

suppliers are quit low.

.

Five Forces Analysis(CONT.)

Powers of buyers:

The power that customers have is rising because of the increasing number of choices in Internet service provider, for example Banglalion wimax, Qubee Wimex etc.

With a lot of the BDCOM competitors all offering similar packages the industry is very price sensitive with customers seeking out the best value for money.

Many of the consumers will rarely tied into long term contracts so switching from one ISP to another will be effortless and less expensive for the consumer.

In conclusion, the buyers have a high amount of power because of the other ISP so they can choose instead of BDCOM

Five Forces Analysis(CONT.)

Threats of substitute’s products

Internet is an everyday essential in people’s lives today and people

would find it hard to replace.

However, ISP are capable of performing unique function in our society,

so basically it doesn’t have any substitute product. In conclusion, the threat of a substitute product is very low Competitive rivalry:

Today the rivalries of BDCOM are increasing quite rapidly and they are featuring new services and confining more market share.

There is also very little differentiation between the competitors which means any new ISP in the market, like Banglalion, will find it difficult to tempt existing BDCOM customers to switch.

In conclusion, competitive rivalry is very high.

Company Analysis

BDCOM Online Limited is a trusted name for Internet Service, e- commerce Service, IT Infrastructure Development and Industry Standard Software.

With the unique vision, BDCOM is the forerunner in the value centric service Market place and an architect of high value end-to-end ICT solutions and software for both National and International market.

BDCOM was incorporated as a private limited company on 12 th February 1997, under the Companies Act, 1994, and registered with the Registrar of Joint Stock Companies. Subsequently, the

Company has converted into a public limited company in 2001 with a view to float its share to the public.

Mission Statement

Their mission is to provide the clients with the highest

international standard Internet Services in the most

convenient way. Customer satisfaction is their primary concern and they exist for those who make up the society they serve.

Their vision is to become the Premier in IP-centric Service Provider in Bangladesh dedicated to continuous

innovation and extend computing technologies and

applications into areas currently unexplored.

Values

BDCOM believes that they run the most widely respected and valued Internet Service Provider in Bangladesh. They believe that their positive attitude plays the dominant

role in their success, in their ability to innovate and in their ability to serve valued

clients.

At BDCOM, they ...

√ strive to be the best at what they do

√ respect each other and work as a family

√ continually learn and develop √ are trustworthy √ empower each other √ are competitive

They love to compete and believe competition brings out the best in them. They have

the finest people, the latest technology, the best spirit, and the best team in the industry. Each BDCOM member plays a vital role in the great chain of their success.

Products

HOME

BDCOM Online Ltd is providing internet service for all customers in home and office science its beginning. A major percentage of their valued customers are home user. They are always grateful to them and they try their best to serve them the best. From dialup to high- speed broadband they provide the most modern facilities to give

them the satisfaction of browsing.

Home Services

Broadband Internet Services

Dial-up

World Class Antivirus E-Scan

Corporate

Corporate Services

Secure Network Solution

Internet Bandwidth

Data Communication Service

Virtual Private Network for Corporate

Complete Hosting Solution

Complete Email Solution

Co-location Service

Financial Statement Analysis

SWOT Analysis:

Strength:

Strong relationship with suppliers.

Have loyal potential customers.

Providing quality service.

Weakness:

They are highly depended on import of raw materials.

Switching cost is relatively low.

Opportunity:

Government is providing special incentives for increasing efficiency in this sector.

Increasing demand of IT firms.

Young generation in Bangladesh is very enthusiastic and has correctly identified IT as the future of the country.

Threats:

Increasing competitors rapidly.

Customers are highly cost sensitive.

From the overall analysis we can see that the performances are consistent. And we can put

them into emerging company category. From the macro-economic analysis we can forecast

that BDCOM online ltd in the IT industry will grow faster. Because of the increasing new

enters the competition is rising. To hold the market share BDCOM should take new strategy. From the above analysis we can say that it is quite safe for future investment, because they are growing right now.

Thank You

Thank You