Binary Gaming

THE IMPACT OF COVID-19 ON THE MANAGEMENT OF BINARY GAMING PC HUB

Oday, Mohannad A. Ambulo, Hafsah P. Balindong, Norhafsa S.

Introduction

Binary Gaming PC Hub

Case facts & Analysis

Financial Analysis

Table of Content

Alternative Course of Action

Decision Analysis

Conclusion

Recommendation

Introduction

The COVID-19 pandemic hit, inflicting illness, death, and widespread economic devastation. Due to the impact of the COVID-19 epidemic, the Philippines economy suffered a deep recession in 2020, with GDP contracting by 9.6% year-on-year, Biswas (2021). The uncertainty and recession brought about by the outbreak have meant many businesses or companies are being more frugal with their budgets and expenses (Medonald, 2020). Consumer electronics recorded a 7.8% growth in 2020 due to increased demand as more Filipinos worked and learned remotely (Giray, 2020).

Introduction

Binary Gaming PC Hub is in De Leon Street, Poblacion, Iligan City, Lanao del Norte owned by IT graduates. Binary gaming offered the lowest possible price for computer accessories and computer related services such as PC Building, reformat and the alike. The business also offered home credit loans.

Binary Gaming PC Hub

Problem

Perspective Held

Objective

1. Management2. Researcher

To formulate timely marketing strategies in order to manage the supply chain properly and to improve their sales.

1. Disruptive supply chain management2. Marketing Strategy improvement

Relevant Case facts and Analysis

Executive Order No. 217 Series of 2021 an order amending executive order no. 192-21 providing regulation and re-establishing color-coding and the home quarantine pass as part of the city comprehensive COVID-19 prevention response to the delta variant. Section 5 of the EO states that all establishments in Iligan which are allowed to operate shall require the individuals/customers to present any of the Valid Government-issued or Employment ID or Certificate of Employment; recent Certificate of Self-employment issued by respective Punong Barangay (Section 4). Binary Gaming is therefore breaching the guidelines issued specifically Section 5.

LIQUIDITY RATIO

Financial Analysis

Liquidity Ratio shows an unidentified result because Binary Gaming reveals a 0 debt which means that Binary Gaming is not using debt to finance the business and all their assets and inventory came from the partners’ investment.

LEVERAGE FINANCIAL RATIO

Effeciency RATIO

Equity Ratio

13.56

ITR

26.83

DSIR

Financial Analysis

Profitability RATIO

SWOT

OPPORTUNITIES

STRENGTH

● Few competitors ● Online marketing ● Managers’ wide range of networks.

● Managers are IT experts. ● Referral System ● Offers Credit ● Ideal location

THREATS

WEAKNESS

● Larger existing competitors ● Fluctuating IATF Guidelines ● New in the market

● Limited Store Space ● Limited product to sell ● Few store staff available.

Five Porters' Model

Competitive Rivalry

Threats of the New Entrant

Bargaining Power of Buyer

The competition in this industry is high, especially the demand for pc hubs. Whizmaster is an existing business for the long run and Protech which exists within the same year to Binary Gaming which are known to be their competitor because they offer the same product and service.

The bargaining power of buyers in this industry is high because most of the customers are naturally asking for discounts and for this industry, there are high chances of experiencing defects from the products where customers basically ask for free change service.

For this industry the threat of the new entrant is low because it takes a lot of investment in terms of money and skills.

Bargaining Power of Supplier

Bargaining Power of Supplier

The threat of substitutes here is high because their potential competitors’ location is close to Binary Gaming PC Hub’s location where customers can easily access or shift to another store in case the product, they wish to buy is not available

The bargaining power of suppliers is high because switching for another supplier currently costs a lot more than driving up the cost of the suppliers. Hence, looking for other suppliers may harden a business considering the situation nowadays.

Alternative Course of Action & Decision Analysis

Flashing sale and promotion

Additional Investment of Capital

Conduct proper inventory management

CONCLUSION

Moveover, conducting proper inventory management is the best action that the Binary Gaming PC Hub should consider. Their customers will regularly visit their store without considering the thought that the product that they want to purchase is not available. Having proper management will help them to maintain their sales. As continuous sales results in stable profit which imply that the business can be sustainable.

Recommendation

Consider advance orders for stocks and build more good relationships among suppliers, as communicating effectively with suppliers may result in having missed orders which may lead to stockouts.

Add sales to encourage more customers as we know that sales have a motivational impact on customers’ purchasing behavior

May look for another supplier that is nearer for faster shipping and arrival of the stocks.

With regards to their store space, they can use signage to where the customer should stand to observe social distancing.

May use their social media accounts in posting promotional advertisements.

They may conduct a monthly raffle for their loyal customers.

Recommendation

They may look for potential investors to add capital, so they can maximize their stocks.

They can provide a suggestion box for the customers’ feedback towards their products and services.

Team Binary

Hafsah P. Ambulo

Norhafsa S. Balindong

Mohannad A. Oday

+ Info

THANKYOU!