SEAA BA, Anul II

Iacob Roxana

Mihai Comanoiu
Buna Beniamin
 Table of content
1.Company presentation.........................................................................................................................3

2.Market characteristics..........................................................................................................................8
3.Company logistics operations...............................................................................................................9

4. Conclusions and proposals................................................................................................................13

Bibliography

https://doingbusiness.ro/companie/altex-romania-srl-2864518
https://altex.ro/evolutie-altex/pag/

https://altex.ro/companie/pag/

https://www.profit.ro/povesti-cu-profit/retail/altex-deschide-cel-mai-mare-magazin-din-retea-
19246616

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 1. Company presentation
SC ALTEX IMPEX S.R.L. is part of a group of companies, with Mr. General Manager
DAN OSTAHIE, a group of companies that includes: - S.C. 8TIM S.R.L. - in the field of
transport; - S.C. ITALROMTEX S.R.L. - in the field of distribution; - S.C. COMPLET ELECTRO
SERV - in the field of IT production. Importer and distributor of electronic and household
appliances. Branch network.

Altex is the market leader in electronics, home appliances, IT &C and multimedia
in Romania, with over 125 stores in all counties of the country. Altex offers its customers
a wide range of products at the lowest prices and provides them with a generous and
flexible financing system with the lowest interest rates and the lowest rates.This system
facilitates all categories of consumers to access products and high quality appliances
necessary for their daily convenience.

• Historical data

We would like to show the development that Altex has undergone from a
chronological point of view, highlighting the small events that have led to its development.

• 1992: Entrepreneur Dan Ostahie founds Altex, the brand that has
influenced Romanian retail, in the city of Piatra Neamt (Neamt County).
From the beginning, Altex's goal is to offer quality products that meet
consumers' needs, as well as affordable financing solutions.
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• 1993: The first Altex store is opened in Piatra Neamt, after the
entrepreneur's products Dan Ostahie were initially sold in kiosks in the
residential municipality of Neamt County.
• 1994 - 1997: After the opening of the first store in 1993, Altex has sales
outlets in all major towns in the country by the end of 1997. The Altex
network counts more than 50 stores at the end of 1997, the nationwide
development being supported by the interest of Romanians for electronic
and household appliances products and by the quality objects and services
offered by the retailer.
• 1997 - 1999: Altex business continued to grow, so that in the period 1997-
1999 Altex had retail, wholesale, transport and service activities.
• 2000: After spinning off services that were not the main activity of the
company, the Altex Group is formed. At the time of the new structure, the
Altex Group included, in addition to the store network, the wholesale
company Italromtex and the logistics and transport company 8TIM. In
February 2019, more than 10 companies are part of the Altex Group, the
main ones being Altex Romania SRL, Complet Electro Serv (manufacturer
and distributor of IT &C equipment), Credex (consumer credit), Auto
Moldova (car dealer) and Axsys Business Technologies (software
developer).
• 2001: Altex is a stronger and more efficient company after restructuring.
• The company opens 22 new branches.
• 2002: The development of the network continues, at the end of the year it
counts 62 branches.
• 2004: Altex opens in Bucharest Media Galaxy, the first electrical complex in
Romania.
• Galaxy Media is an avant-garde concept that represents a new standard in
the marketof electronic products, household appliances, IT &C, music and
film, multimedia. The year 2004 is the year that marks the moment of
greatest importance for Altex. The company becomesthe market leader in
the field of household appliances, dethroning the supremacy of Flanco.
• 2005: The Altex Group continues to expand, reaching over 125 Altex stores
and 8 Media Galaxy electrical complexes. Altex announces its intention to

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 sell a minority stake in the company and its expansion plans in Eastern
European markets.

Altex is the only retailer in Romania that falls into the categoryof very large
companies, according to the National Top of Companies, published by the Chamber of
Commerce and Industry of Romania and the Chamber of Commerce and Industry of
Romania and the City of Bucharest (CCIRB) for the year 2004.

According to the official data of the Ministry Public Finance, in 2004 Altex was the
best performing company in the field of product marketing 3 Electronics, Household
Appliances and IT &C in Romania and recorded a profit rate of 4.6 percent on a turnover
of 145 million euros. The history of Altex begins in 1992, when a group of ambitious young
people started a marketing and service program for used televisions.

Their idea was based on the increasing demand for electronic equipment,
including second-hand, especially since until 1989 few people had a color TV TV or an
audio combination in the house.

• Product portofolio

Altex owns a wide and diverse range of products in the field of electronics, home
appliances, IT & C, and multimedia, thus satisfying the needs of customers but also the
quality standard. Altex collaborates with a significant number of suppliers, being the only
profile retailer that has in portfolio a wide range of products belonging to brands such as
Philips, Panasonic, Sony, Thomson, Daewoo, Whirlpool, Arctic, Bosch, Siemens, Electrolux,
Zanussi, Ariston, Indesit, Rowenta, Tefal, Braun etc. Altex also markets on Romania 3 own
brands: Teletech (TV, DVD), Cata (hoods and radiators), Davio (PC line & storage media)
and is the exclusive distributor of the brands Sanyo, Rotel, Ariete, Cata, Petra, Iner.

The wide range of products is grouped according to the profile of each product so
we meet: laptopIT, tablets, phones - GPS, cameras - video, TV - home cinema, audio,
gaming, music - movie, electrical, household appliances, DIY.

Altex services guarantee the right choice, the promise made by the company to
customers through services that ensures fast delivery - free shipping; the most

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competitive price - the “2 x Difference” service, through which offers customers twice the
price difference, if they find the product purchased from Altex, cheaper in another part;
versatility of services: online booking, pick-up in store.

• Financial data info

2019
TURNOVER : 4.077.303.337 (RON)
PROFIT LOSS : 86.475.197 (RON)
EMPLOYEES : 3.546

2018
TURNOVER : 3.553.929.607 (RON)
PROFIT LOSS : 74.622.213 (RON)
EMPLOYEES : 3.112
2017
TURNOVER : 3.283.840.109 (RON)
PROFIT LOSS : 56.447.231 (RON)
EMPLOYEES : 2.995
2016
TURNOVER : 2.745.385.511 (RON)
PROFIT LOSS : 47.999.798 (RON)
EMPLOYEES : 3.011
2015
TURNOVER : 1.958.418.884 (RON)
PROFIT LOSS : 19.376.762 (RON)
EMPLOYEES : 2.539

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 2. Market characteristics

- Clients

Customer Service is available to customers who want information about the store
online Altex.ro and the network of Altex stores.
In addition, by contacting this department you can find information about:
• Products and services offered by Altex (service, free transport)
• Special offers and promotional packages
• Installment financing system
• The network of stores

-Suppliers

Altex suppliers import most of the sold products from electronics and appliances
producers. Altex collaborates with a significantly large number of suppliers,

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 being the only retailer in this industry (in Romania) that has such a varried
protfolio if brands, such as Philips, Panasonic, Sony, Thomson, Daewoo,
Whirlpool,Arctic, Bosch, Siemens, Electrolux, Zanussi, Ariston, Indesit, Rowenta,
Tefal, Braun etc.
Altex also sells 3 self owned brands: Teletech (TV, DVD), Câtă (hoods and
radiators) and Davio (PC and storage units), and is an exclusive retailer of Sanyo,
Rotel, Ariete, Cata, Petra, Iner.

-Compoetitors

No.crt Chain of stores Turnover (2008) Market share

1 Flanko 51,000,000 21.70%
2 Altex 40,000,000 17.02%
3 Domo - Interexpo 28,000,000 11.91%
4 Remaining 116,000,000 49.36%

3. Company logistics operations

-The framing of logistics activities in the organization's chart

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- Buying

The internal environment of a company is made up of a series of interdependent groups:

management senior management, finance, research and development, procurement,
production, distribution, accounting. Top management sets the company's mission,
objectives, overall strategies and policies.

Marketing managers make decisions within the plans and strategies made by
management managerial. Finances are concerned with finding and using the funds
needed to put in marketing plan practice. The research and development department
deals with the design of some attractive and safe products. The supply deals with
obtaining materials and consumables necessary for the production process. Production
deals with the realization and production of products in the desired quantity and at the
desired quality level. Accounting calculates revenues and costs and brings them to the

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attention of the marketing department to analyze how well the objectives have been
achieved proposed. Both the management and the production staff need superior tools,
organization efficiency but also a special communication because only in this way
performances can be achieved.

-Storage

Retail storage isn’t just about storing products in a single location; it’s about the process
of storing, accessing, and transporting multiple times throughout the supply chain.

-Regarding accessibility of inventory, simple is always better.

-Logical and intuitive paths between touchpoints

-Shorter distances between touchpoints

-Fewer touchpoints altogether

The surrounding environment should also be conducive to inventory accessibility.

Proper signage, adequate lighting, and even movable storage space and equipment
should allow team members to transport products as efficiently as possible.

- Stock management

Altex company is structured in 5 large departments, each being managed by an expert

manager in the field in which it operates. Altex human resources manager, Altex Trade
manager - sales manager Bucharest, Branch Manager - Altex western area branch
manager, Trade manager - zonal manager and Altex home appliances Product manager
and these departments are headed by the general manager.

- Information flows

The external environment appears made up of a network of exogenous variables to

which the company can oppose its own human, material, financial, informational
resources.

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- SWOT analysis of the logistics system

Streinghts:

1) Altex occupies the leading position on the Romanian home appliances market, won in
the year 2004 and maintained in 2005; its market share reaches the value of 30%

2) Altex has a highly developed distribution network, expanded nationwide, which

includes over 125 specialty stores

3) Altex has a very differentiated offer of products

4) Altex has the lowest price on the market for most products sold

Weaknesses:

1) the existence of too many cash registers inside the large Altex Megastore and Media
Galaxy complexes, which are not used

2) repeated conflicts with the National Audiovisual Council, which negatively affects
consumers' perception of the Altex brand 29

3) problems of consumers in communicating with the company's staff, although the

latter have undergone a very strict and meticulous training process

Opportunities:

1) increasing the demand for household appliances and especially for products
belonging to the IT&C field

2) increasing the purchasing power of Romanians

3) people's preference for these types of stores, large, airy, and with a special design, to
the detriment of small home appliance stores

4) the increasing tendency of consumers to renew their electronic, household appliances

and IT&C products at intervals

Threats:

1) the movements of the competition, which could diminish its market share: Domo
concluded an agreement with Kaufland to open a store in each of the new units opened

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by the Kaufland chain; Flanco-Flamingo merger, with the formation of a retail giant in
terms of expanding the store network

2) the tightening of credit conditions, with a direct impact on the practice that has
become common among retailers "credit only with the bulletin"

4. Conclusions and proposals

'Retail logistics' is the organic process of managing the flow of merchandise from the
source of supply to the customer. ... Retail logistics ensures that everything is in place to
offer better delivery and service at lower prices by way of efficient logistics and added
value.

Logistics creates and increases the value businesses offer by improving merchandise,
and ensuring the availability of products. In order to provide more value, businesses
either work on improving their own logistic activities or rely on professionals.

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