Welcome

Presentation On

Financial analysis of BDCOM online ltd

Submitted to

Mr. Md. Ridwan Reza Senior Lecturer Department of Business Administration

Submitted by

Name

ID

MD. Maidul Islam

Nishita Roy Toma Safinaz Amin Anni Shanu Uddin Rubel Ahmed Shehab Chowdhury

0901010017
0901010026 0901010028 0901010054 0901010136

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 internetrelated 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.
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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 substitutes products Internet is an everyday essential in peoples lives today and people would find it hard to replace. However, ISP are capable of performing unique function in our society, so basically it doesnt 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, ecommerce 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 12th 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 highspeed 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