Will the Expansion ERAA Endless Havoc?
Will the Expansion ERAA Endless Havoc?

Will the Expansion ERAA Endless Havoc?

Deposit.redaksinet.com – Armed with the prospects of the industry which is so good, where the penetration of the Smartphone market In Indonesia is only about 42 percent, ERAA trying to scoop up market share as much as possible by means of owe. This condition is managed to deliver ERAA as a distributor of smartphone tersar se-Indonesia.

Although actually expand the better, but if it is not offset the increase in productivity, it will be fatal. MPPA (Matahari Dept. Store) and Aisa (Tiga Pilar Sejahtera)is an example of issuers that are experiencing bad luck due to the expansion of debt. Will ERAA ending bad luck too?

The expansion of the background ERAA

In the business model, the distribution of industry, phone, sim card, voucher, as well as mobile phone accessories and Computer devices this is a business that is capital intensive with a margin of normal. That’s what causes the players in the industry is very close to the debt.

Based on existing data on the Indonesia stock Exchange, there are some issuers whose business activities are centered on the distribution of mobile phone with spare parts, accessories, pulse, and so forth. Call it ERAA (Erajaya Swasembada), TELE (Tiphone Mobile), GLOB (Global Teleshop), BTEL (Bakrie Telecom) and FREN (Smartfren).

If seen from the amount of income, then the publisher with the number of ERAA and TELE largest. The latest Data obtained in the year 2018 show that TELE successfully pocketing the phone sales amounted to Rp7, 5 trillion, while the ERAA obtain sales amounted to Rp8, 28 trillion.

That makes the industry is still interesting is the potential of the domestic market is so lucrative, given the penetration of the mobile phone market has not yet reached 50%. This condition certainly makes a big distributors such as ERAA and tele want to master it.

BUSH, who nearly entered the meshes of bankruptcy, has not yet announced back when the expansion of large-scale. Fortunately, the TELE can get out of the hole of the needle (not so declared bankrupt) because it manages to pay its debts amounted to Rp1 trillion.

Other TELE ERAA other. Feel far away from the snares of bankruptcy, ERAA ardent want to do the expansion with the opening of the 330 new outlets this year. In fact, before ERAA already has 936 outlet in the country and 62 other abroad.

This amount does not include outlet cooperation with third parties, which amounts 53.000 in the country and 212 other outlets abroad. To gain insight, complete the analysis of the ERAA ter-update here, based on the Financial Statements of Q1 (first-quarter) of the year 2019.

The results of the analysis of financial statements ERAA (Q1/2019)

  1. In the report of the current assets, it was found that the receivables tend to rise but total current assets decreased. After the search, it turns out that the decrease in current assets caused by a decrease in supply.

According to the records of the financial report, it was found that the management of the company and its subsidiaries reducing the supply to avoid the risk of obsolescence and decline in value. As is known, the mobile phone industry is experiencing technological change quite quickly in a relatively short time.

An example is the update of the Android OS, also change the physical device such as a mobile phenomenon ponytail with advanced camera high resolution. Save a lot of phones in the warehouse certainly not too useful because the mobile phone tends to be easily outdated.

Of this strategy, the authors believe that the ERAA indeed understand very well about the workings of an industry that they do.

  1. Find the sale of mobile telephones (cellular phones) and tablets which declined in the first quarter of 2019. As for sales fell drastically is on the sale of mobile phones and tablets.

Throughout 2018, analysts from research firm Canalys noted the growth of Smartphone shipments increased compared to the previous year; the number of smartphones that are imported during the year 2018 reached 38 million, up 8.6 percent Year-on-Year (YoY). The following is a sales ERAA by area:

The company and its subsidiaries classify the geographical segments by location of customers consisting of the Western Region (Sumatra and Java), Central (Jabodetabek, Borneo, Singapore And Malaysia), and East (outside of western and central regions).

Armed with the prospects of the industry which is so good, where the penetration of the Smartphone market In Indonesia is only about 42 percent, ERAA trying to scoop up market share as much as possible by means of owe. This condition is managed to deliver ERAA as a distributor of smartphone tersar se-Indonesia.

Although actually expand the better, but if it is not offset the increase in productivity, it will be fatal. MPPA (Matahari Dept. Store) and Aisa (Tiga Pilar Sejahtera)is an example of issuers that are experiencing bad luck due to the expansion of debt. Will ERAA ending bad luck too?

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