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UNIVERSITY OF BEDFORDSHIRE FOREIGN TRADE UNIVERSITY

SCHOOL OF BUSINESS HO CHI MINH CITY CAMPUS
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END-MODULE ASSIGNMENT

Module: Strategy & Innovation

Code: BSS029-2

TIKI ANALYSIS
FOR EXAMINERS ONLY

Student: PHAN TRỌNG LINH Grade (in number):

………………..
Student ID: 2045519163
Grade (in words):
Cohort: K58BF-A ………………..
Semester: I Examiner 1
Academic year: 2020-2021 (Signature & Fullname)
………………..
Headteacher: Lu Thi Thuy Van
Examiner 2
Submission date:11 October 2021 (Signature & Fullname)
Student’s signature: ………………..

Ho Chi Minh City, October 2021

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UNIVERSITY OF BEDFORDSHIRE FOREIGN TRADE UNIVERSITY

SCHOOL OF BUSINESS HO CHI MINH CITY CAMPUS
----------***---------- ----------***----------

END-MODULE ASSIGNMENT

Module: Strategy & Innovation

Code: BSS029-2

TIKI ANALYSIS
Student’s fullname: PHAN TRỌNG LINH
Student ID: 2045519163
Cohort: K58BF-A
Semester: I Academic year: 2021-2022
Lecturer: TRAN QUOC TRUNG
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Ho Chi Minh City, October 2021

STATEMENT OF AUTHORSHIP
Except where reference is made in the text of the end-module assignment, this
assignment contains no material published elsewhere or extracted in whole or in part from
an assignment which I have submitted or qualified for or been awarded another degree or
diploma.
No other person’s work has been used without due acknowledgements in the end-
module assignment.
This end-module assignment has not been submitted for the evaluation of any other
modules or the award of any degree or diploma in other tertiary institutions.

Ho Chi Minh City, October 2021

Phan Trọng Linh

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Table of contents

STATEMENT OF AUTHORSHIP……………………………………………………..3

Table of contents……………………………………………………………………….. 4

I. Introduction: what is TIKI?................................................................................5

II. Pestel of Tiki ………………………………………………………………......6
II.1. Political environment…………………………………………………………...6
II.2. Economic factor (ECO)………………………………………………………...6
II.3. Social factors (SOC)……………………………………………………………6
II.4. Technological factors (TECH)………………………………………………….7
III. SWOT analysis of Tiki…………………………………………………………7
III.1. Analysis S (Strengths)………………………………………………………….7
III.2. Analysis W (Weaknesses) ……………………………………………………..9
III.3. Opportunity of TIKI…………………………………………………………..10
III.4. Threat of Tiki………………………………………………………………….11
IV. Vrio of Tiki……………………………………………………………………12
V. The areas of the organisation should be focused on and developed…………12
VI. Reference……………………………………………………………………...12
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I. Introduction: what is TIKI?

Tiki is one of the hottest e-commerce platforms today with huge traffic and purchases.
Previously, Tiki's business model was B2C, meaning that the products sold on Tiki were
imported and sold by Tiki. However, in early April, Tiki changed its model to B2B2C
form, which means you can register to open a booth on Tiki to sell like other e-commerce
platforms such as Lazada, Sendo, Adayroi...

_Born in March 2010, Tiki is known as a large e-commerce site with professional service
quality. Selling on tiki quickly and received the support of many people across the
country, with a large number of customers and in many segments. Initially, Tiki from an
e-book seller converted its business model into an e-commerce site. And is the agent
channel of many large and small business units. Many businesses and units participate in
Tiki with the desire to share a wide potential customer market share.
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II. Pestel analysis of tiki

2.1. Political environment:

The political and legal environment in the region or country is determined through
government, public opinion and consumer advocacy groups.
_The government needs to put in place a control measure to monitor the growth of the
internet. But as the internet fosters global cooperation, government agencies in countries
need to work together to ensure the safety of e-commerce transactions.
_Currently in Vietnam is examining the current tax structure to ensure that e-commerce
activities do not reduce tax revenue of agencies and local governments because currently
sellers on websites E-commerce is virtually tax-free.
Overall, political issues can have a significant impact on e-commerce and its growth.
Therefore, the hypothesis is made as follows
_Political factors directly affect the growth of e-commerce.

2.2. Economic factor (ECO)

The overall economic development of the country will determine the frequency of e-
commerce activities.
_Business organiza-tions will target the developed economy for internet-based
transactions more than a developing country.
_Economic factors are of great significance to business activities. Whether it is an online
or physical business, economic factors can have a significant effect on it. This is because
economic factors are directly related to the business and their effect also directly on the
revenue and profit of the business.
_Higher economic activity means faster growth and higher revenue for the e-commerce
industry while lower economic activity means the opposite. In this way, economic factors
can have a direct and profound impact in the e-commerce industry
_The economic factor directly affects the growth of E-commerce.
2.3. Social factors (SOC):
_Socio-cultural factors have a profound influence on e-commerce. Among Internet users,
the greatest concern is with privacy, privacy is described as a personal moral right, the
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Internet or e-commerce benefits from intrusion into personal affairs. their personnel.
Internet users have an online identity through which they conduct personal and financial
transactions. From these big data, it has contributed to making e-commerce quickly
become an optimal choice for customers.
_However, it is very important to protect your identity and confidential information. In
keeping with this, countries are developing ethical laws that support the rational use of the
Internet. Any organization should be aware of these laws and develop their marketing
programs after careful consideration. The increasing use of mobile technology has
influenced e-commerce. In most societies, mobile technology is already very popular and
a larger number all over the world are now using mobile gadgets for shopping and other
purposes. Sociocultural factors also affect business performance in other ways.
2.4. Technological factors (TECH):
_The advent of the Internet has seen the rise of online retailers, strongly influencing
_Functional role of traditional stores. The biggest challenge facing business organizations
today is to access the current scientific and technological environment and find the best
solution to combat the competition. The technology factor is very important in the context
of the e-commerce industry. That's because the industry relies too much on technology.
Everything is technology-based in e-retail from sales to customer service. All e-commerce
brands are in a race to stay ahead of their competitors in terms of technology. In this
understanding, technology is a factor that has a great influence on the business and in this
case, the e-commerce technology factor has a very special importance.
III. SWOT analysis of Tiki
3.1. Analysis S (Strengths)
_Tiki Has a long history
_Tiki is an e-commerce business established in 2010, with a long history of business
activities, Tiki has created trust for customers and is one of the first choices among
trading floors. electronic.
_Good brand recognition
_Capture a high share in the e-commerce market
_In October 2018, Tiki suddenly climbed to second place nationally in terms of average
website visits.
_Having a large and strong financial source, pouring capital continuously
_In 2018, Vietnamese e-commerce companies continuously received huge amounts of
money from international investment funds.
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_At the beginning of 2018, Tiki received more money from JD Group, in addition to the
investment of 44 million USD received in 2017. By September 2018, this company
continued to receive another 122 billion VND from VNG.
_Tiki has built and implemented its unique selling point (USP) with fast delivery service
with an average nationwide delivery time of only 1.6 days, allowing customers to receive
goods in 2 hours in Hanoi. Interior and City. Ho Chi Minh City, and ensure the quality of
goods when they reach users.
_From May to October 2018, the company invested a lot of resources in opening 6 more
warehouses, bringing the total number of warehouses nationwide to 8 warehouses,
including Ho Chi Minh City. HCM with 3 warehouses; Hanoi, Hai Phong, Da Nang, Nha
Trang and Can Tho with 1 warehouse in each province. After many efforts and serious
investment, on October 20, 2018, all 8 warehouses of Tiki were put into operation
simultaneously.
_Tiki constantly launches special promotions and media to promote diversity awareness,
especially in home products and technology.
3.2. Analysis W (Weaknesses)
_Heavy losses, losses for an increasing trend over the years of operation
_According to the financial statements of Tiki Joint Stock Company, this enterprise
recorded an accumulated loss of nearly VND 308 billion at the end of 2016. If the loss of
VND 282 billion is included in VNG's 2017 annual report, the accumulated loss of This
e-commerce site has reached nearly 600 billion VND after 7 years of operation.
_Sometimes Tiki often offers the policy "Sale shock 20%, 40% ...", but the sale is high,
but compared to the actual price, it is not much lower. Therefore, for some customers,
sometimes sales policies do not stimulate demand, which may be counterproductive.
_The policy of wrapping plastic books in combos brings mixed opinions
_Tiki offers a plastic wrap policy, used in a package of 99k wrapped with 40 books or
199k wrapped with 100 books. This has stimulated customers' demand for book
protection. However, not everyone has the need to buy so much, so it has created
discomfort and needs to adjust this policy according to the legal unit.
_Shipping and ordering are limited
 Although Tiki has many warehouses and many delivery policies.
 Delivery time depends too much on geographical location between regions.
 Products are limited, not really diverse (compared to Lazada, Sendo ...)
 Long time to review and post goods
 Posting time is up to 48 hours, it takes a long time to review and edit image content.
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3.3. Opportunity of TIKI

_Marketplace offers great potential for Tiki
_Businesses when bringing goods here can actively coordinate with Tiki to do marketing
and promote sales, but quality must still be controlled by Tiki's supply chain system. In
this way, Tiki can control the quality of the input, and can go through businesses to
resonate for its e-commerce platform.
_Internet usage time of Vietnamese people is high
_On average, Vietnamese people use the Internet for up to 4 hours a day. This is a great
opportunity to grow your online business.
_The trend of online shopping is increasing strongly
_With the rapid development of online business, consumers are tending to buy more and
more online, this is a great opportunity for the development of Tiki in particular and e-
commerce platforms in general.

_Gain great trust and resonance from Google, Facebook

_The cooperation with big companies has brought more experience and enhanced brand
position for Tiki.
_Belonging to the top industries encouraged and prioritized for development by the
government

3.4. Threat of Tiki

_Strong competitor: For the rapid development of the current e-commerce market, Tiki
has many competitors worth worrying about such as Lazada, Shopee, Sendo, etc.
_Marketplace Policy: although Marketplace offers a great opportunity for the new
development of Tiki, it is also a big challenge in terms of product input quality, origin
control, and building trust with customers when implementing the marketplace model.
_Online business form: although online shopping is growing strongly, in parallel with
many fake and fraudulent purchases, there has been a tendency to be cautious when not
checking goods.

_High selling cost: E-commerce is a relatively new form of sales in Vietnam, so the cost
to maintain the site, warehouses and customer support is very high. While the risk of
customers placing an order but not receiving the goods is still very large, businesses must
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bear all the costs due to returning goods, the quality of goods through many stages of
transportation is difficult to ensure the quality such as: initial.

IV. Vrio of Tiki

TIKI VRIO TABLE

Resources Value Rare Imitation Organization Competitve

advantage
Position among Yes, firm has Yes, it has Difficult to Yes, over the Sustainable
Retailers, strong dedicated imitate years company Competitive
Wholesalers and relationship channel though not has used it Advantage
Buyers – with retailers partners impossible successfully
companyname wholesalers
retail strategy and Buyers
Sales Force and Yes No Can be Can be imitated Can provide
Channel imitated by by sustainable
Management competitors competitorsThere competitive
is still a lot of advantage.
potential to utilize Potential is
an excellent sales certainly
force in house there.
and outhouse

Marketing Yes, firms are No, as most Pricing Yes, firm is Temporary
Expertise competing of the strategies are leveraging its Competitive
based on competitors often inhouse expertise Advantage
differentiation also have matched by
in the industry decent competitors
marketing
know how
Distribution and Yes, as it helps No Can be Yes Medium to
Logistics Costs in delivering imitated by Long Term
Competitivenes lower costs competitors Competitive
s but it is Advantage
difficult
Financial Yes No Financial Company has Temporary
Resources instruments sustainable Competitive
and market financial position Advantage
liquidity are because it is
available to invested by large
all the corporations
nearest
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competitors
Supply Chain Yes Yes Near Fully utilized Keeps the
Network competitors business
Flexibility also have running
flexible
supply chain
and share
some of the
suppliers
Successful Yes, without a No, as most Can be One of the Digital
Implementation comprehensive of the firms imitated by leading player in strategy has
of Digital digital strategy are competitors the industry in become
Strategy it is extremely investing Vietnam critical in the
difficult to into industry but
compete digitalizing it can't
operations provide
sustainable
competitive
advantage

V. The areas of the organisation should be focused on and developed.

Vietnamese people of all income levels have yet to accept online shopping, due to online
fraud. Scams are common on the internet and people doubt that they will have any money
if their credit card information is stolen online.
As a result, the entire e-commerce industry has had to switch to door-to-door delivery to
mitigate this challenge, but there is one problem that comes up with a very large number
of recipients not receiving the goods.
I myself work in an e-commerce company, I have found that the ratio is in the 20-30%
range.
Therefore, Tiki needs to research and make customers believe in products higher, so that
customers pay when they decide to order.
_Logistics
Therefore, Tiki needs to focus more on logistics, creating a faster and more stable
delivery operating system, thereby outperforming competitors (shopee, lazada, ...)
_In Vietnam, there are markets everywhere. There are brick-and-mortar markets,
supermarkets, and even sidewalk vendors in major cities — and they're all competitive on
price.
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_Because nearly all e-commerce businesses have formalized access to the banking
system, they have to pay taxes. In Vietnam, a 10% VAT can put an online business at a
disadvantage when informal competitors do not charge the same.
_Illiterate citizens may not be able to directly participate in e-commerce sites that require
reading and writing skills. In many regions of the country, the literacy rate is less than
30%. Without investing in educating these citizens, the number of potential customers for
e-commerce will be significantly reduced.
_These include establishing a Vietnamese system to effectively prosecute fraud and
enhance business confidence on the internet; and most importantly, invest in education to
raise the literacy rate.
_To make the web work for business, Vietnam's public and private sector leaders need to
focus less on how to improve the total number of registered domain names and instead on
fixing it. real business ecosystem.
VI. REFERENCES
1. Aberdeen Group, Inc. ―e-Business Infrastructure Integration: Practical
Approaches,‖ An Executive White
Paper, Boston, Massachusetts 02108, USA, November 2001

2. Debajyoti Mukhopadhyay - Strategic Issues For A Successful E-Commerce,

February 2011.