Introduction

The Gioi Di Dong - Moblie World Group (MWG) is one of the leading technology

device retailers in Vietnam, but the company is facing a very common problem in the sales

field, which is the inefficiency in business operations. To solve this problem of MWG, two

AI technologies Chatbot MerchatAI and Smartspeaker Streebo have been proposed for the

company to consider applying to their business.

The strategy to apply these two AI technologies in MWG to solve the identified

problem will be delved into. A detailed explanation of the features of these two AI

technologies as well as similar application examples will be given, from which MWG will

find a way to integrate these two AI tools into its operations effectively. Two topics that will

also be discussed are the expected results the company will achieve and the potential to

increase the value of the company.

Solving the business problem that MWG is facing and making the most of the two

proposed AI capabilities, to promote operational efficiency as well as business development,

are two main goals from which to come up with a plan that is consistent with MWG's

strategic goals. In the following sections, specific analyses of the business such as its

founding history and position, the capabilities of the two selected AI technologies, and the

expected results for MWG if they accept the offer will be given.

Background

The "Mobile World" organization was established in March 2004 in Vietnam and

quickly became one of the leading retail store chains in the field of mobile phones and mobile

devices. The company's main areas of activity include: buying, selling and repairing

equipment related to mobile phones, digital devices and fields related to e-commerce. With

experience in the mobile phone market since the early 1990s, along with careful research of
Vietnamese customers' buying habits, thegioididong.com has built a business method that has

never existed in Vietnam before. The company has built a distinctive consultative sales style

thanks to a team of professional staff and a website www.thegioididong.com that serves as a

mobile handbook and an e-commerce channel. As a leading electronic device retailer in

Vietnam, currently, the average number of phones sold at thegioididong.com is about 300,000

phones/month, accounting for about 15% of the genuine phone market share in the country .

On average, it sells more than 10,000 laptops a month, becoming the retailer selling the

largest number of laptops in the country (T. Hang, 2022). In 2021, MWG is honored to be

ranked in the top 100 retailers in Asia-Pacific with more than 5300 stores in Vietnam. Their

main goal is to provide customers with high quality mobile products and services with

diversity and modernity (Phan. H & Nguyen. Vu, 2022)

The organization aims to meet diverse consumer needs by offering products from

leading brands in the mobile industry. Their store network expands throughout the country, to

create the most favorable conditions for customers. The Gioi Di Dong's business strategy

includes maintaining competitive prices and providing attractive promotions. Additionally,

they also focus on providing excellent customer service to build trust and long-term

relationships with customers. Moreover, to meet the customer demand, MWG had expanded

it business by opening thegioididong.com Dien May Xanh, Bach Hoa Xanh, An

Khangpharmacies - these market relate significantly to daily needs of Vietnamese customer

(MWG, n.d.).

Despite facing challenges in a competitive environment, Mobile World Organization

also sees opportunities from the rapid development of mobile technology, taking advantage of

it to bring innovative products and services. progress for customers.

Goal of Organization
 The "Mobile World" organization's main goal is to provide customers with a

comprehensive and modern mobile shopping experience. This organization is committed to

providing high quality, diverse mobile products that integrate advanced technologies to meet

the increasingly diverse needs of consumers. It can be said that the company strategy is focus

on customer as in the company commitment, they declare “to put our customers at the center

of all thoughts and actions” (MGW, n.d.). At the same time, The Gioi Di Dong sets the goal

of developing the store network to ensure convenience and easy access for customers

nationwide. Competitive pricing strategies and attractive incentives are also an important part

of the business goal, to optimize value for customers.

A key element of an organization's goal is to build and maintain positive customer

relationships. By providing quality customer service, Mobile World aims to create customer

satisfaction and loyalty. Additionally, expanding their online presence is also part of their

strategy to meet the growing e-commerce trend. Organizations face many challenges in the

mobile industry, including high competition and pressure to maintain innovation and

technological advancement. However, the opportunity lies in applying new technology to

optimize customer experience and expand the market.

MGW. (n.d.). General Introduction - Investor Relationship website WMG. Mwg.vn.

https://mwg.vn/eng/company/introduction

Problem

There are two main problems that MWG is experiencing, one is a sharp decline in

revenue, and the other is a decline in demand.

According to a report just published by Mobile World Investment Joint Stock

Company, Mr. Nguyen Duc Tai's business in November recorded revenue of more than 9,900

billion VND, equivalent to the same period, but down 11% compared to the previous month

(Nguyen. D.T, 2023).

Figure 1: (Source: MWG, 2023)
 The business results of Mobile World Investment Joint Stock Company in the first 10

months of 2023 decreased sharply compared to the same period last year.

Figure 2: MWG 's revenue structure for the period 2020-2023

Unit: Thousands of billions of dong (Source: MWG, 2023)

By the end of 2023, MWG brought in more than 118 trillion VND in net revenue, down

11% compared to the previous year. The main contribution is still revenue from the Mobile

World chain (including Topzone) and Dien May Xanh (DMX), more than 28 trillion VND

and 55 trillion VND, respectively, down 18% and 20% compared to the previous year (Vu. H,

2023).

That recent downtrend in the sale of MGW can be explained by the following

problems. Firstly, VNexpress newspaper updates that the revenue of the electronics and

mobile chain decreased by 16% and was explained by the cooling of iPhone demand and the

low season for the electronics industry. Accumulated for 11 months, the whole group

achieved revenue of nearly 108,000 billion VND, down 13% over the same period last year

and fulfilled 80% of the yearly revenue plan (Tat. D, 2023). The Mobile World chain, after 5

years of strong development, has now leveled off, revenue in this segment in 2018 decreased
slightly compared to 2017. According to Tan Viet, the cause of this decline is because

electronic products have increased in popularity. High popularity thanks to the appearance of

many low-cost phone brands from China such as Xiaomi and Oppo.

Therefore, like many companies today, faced with declining demand and purchasing

power, Mobile World has actively entered the restructuring process to streamline its apparatus

to help the company withstand the volatile market. MGW said it closed nearly 150 stores

belonging to the The Gioi Di Dong, Dien May Xanh, and Topzone chains in October and

November (compared to the end of the third quarter). "According to the plan, the company

will consider closing about 200 stores that are not effective in terms of revenue and profit in

the fourth quarter of 2023. Aiming to streamline operations, ensure healthy financial capacity

and ready to seize opportunities when we see positive signals" - Chairman of Mobile World,

Mr. Nguyen Duc Tai, informed shareholders. The company is expected to continue to close

some ineffective stores in December to stabilize operations, preparing for the peak sales

season of the Lunar New Year 2024. This is part of a comprehensive restructuring strategy

from stores and logistics to logistics and business management departments to increase

revenue, and market share and improve profits.

MWG is slower than its business competitors as other companies have begun to enter

new empires. Taking FPT as a specific example, to enter the big game, according to Mr. Vu

Anh Tu, FPT Technology Director, FPT spent a large budget on AI technology and chose a

different direction: going deeper into every corner of life, mastering artificial intelligence and

making this technology the "brain" of all Made by FPT products (Khanh. H, 2023). This can

cause a significant gap between the two business performance and gave FPT Shop a more

favorable position when investors or either customers consider to invest, to shop in this two

brands.
 GenK newspaper reported that, when evaluating the business situation 2023, MWG's

Board of Directors also identified that economic instability, geo-political conflicts, and

energy shortage issues will continue to impact economic growth, increasing inflation,

interest rates, exports, and employment. Therefore, thrifty consumption psychology as well as

rising business costs will be difficult to change in 2023 (Vu. A, 2023). In an interview with

VNeconomy, this company said that MWG's board of directors had early identified market

scenarios and possible adverse fluctuations in the industry in which the company operates,

including: The impact of inflation leads to price escalation - this is a factor that directly

affects consumer behavior and purchasing power (especially for non-essential items). Not

only that, increased input costs and financial costs caused the company to further decline in

revenue, making it difficult to achieve the target profit. Supply chain risk and exchange rate

risk also have a negative impact on the company's finances. These issues have caused MWG

to not only restructure its organization but also restructure its debt by transferring part of

working capital financing from short-term to long-term debt. Long-term loans due to be

repaid in the fourth quarter have been prepared by the Company with funds to repay new

long-term loans (Nam. A, 2022).

The company is having significant problems in meeting revenue targets and keeping the

upward trend in the snafy index. This comes from reduced customer demand, the cooling of

the phone market, and competition in price and technology from Chinese companies and

FPT. The above factors negatively affect the company, leading the company to consider

whether the strength of more than 5,300 stores brings business efficiency and begin closing

up to 150 branches. The company needs a push to boost its customer traffic at physical points

of sale to avoid store closures, and improving customers' offline shopping experience is

probably the key to this situation.

Reference:
Anh N. (2022, October 30). Surrounded by difficulties, Mobile World temporarily stopped

opening new stores at all chains. Economic Life in Vietnam & the

World.https://vneconomy-vn.translate.goog/kho-khan-bua-vay-the-gioi-di-dong-tam-du

ng-mo-moi-cua-hang-o-tat-ca-cac-chuoi.htm?_x_tr_sl=vi&_x_tr_tl=en&_x_tr_hl=vi&_

x_tr_pto=wapp

Huyền K. (2023, December 15). Mastering generative AI, FPT hopes to create breakthroughs

for businesses. Economic Life in Vietnam & the World.

https://vneconomy-vn.translate.goog/lam-chu-ai-tao-sinh-fpt-mong-muon-tao-dot-pha-c

ho-cac-doanh-nghiep.htm?_x_tr_sl=vi&_x_tr_tl=en&_x_tr_hl=vi&_x_tr_pto=wapp

History of formation and development of Mobile World Company. (2022, April 14).

news.timviec.com.vn.

https://news-timviec-com-vn.translate.goog/cong-ty-the-gioi-di-dong-la-gi-lich-su-hinh-thanh

-va-phat-trien-65538.html?_x_tr_sl=vi&_x_tr_tl=en&_x_tr_hl=vi&_x_tr_pto=wapp

MWG Introduction. (2016, January 10). MBA 14 - Business Case of Green Grocery - MWG.

https://mwgcase.wordpress.com/mwgintro/

Sơn T. (2018, December 3). Mobile World restructures its business operations. Banking

Times.

https://thoibaonganhang-vn.translate.goog/the-gioi-di-dong-tai-co-cau-hoat-dong-kinh-

doanh-82705.html?_x_tr_sl=vi&_x_tr_tl=en&_x_tr_hl=vi&_x_tr_pto=wapp

Tỉnh L. (2023, November 25). Mobile World will restructure, 200 stores "disappear"? Nguoi

Lao Dong Newspaper.

https://nld-com-vn.translate.goog/kinh-te/the-gioi-di-dong-se-tai-cau-truc-200-cua-ha

ng-bien-mat-20231125062351737.htm?_x_tr_sl=vi&_x_tr_tl=en&_x_tr_hl=vi

&_x_tr_pto=wapp
Vietstock. (2023, March 28). Business difficulties, Mobile World lowers 2022 dividend rate |

Vietstock. Vietstock.

https://vietstock-vn.translate.goog/2023/03/kinh-doanh-kho-khan-the-gioi-di-dong-ha-t

y-le-co-tuc-2022-738-1052262.htm?_x_tr_sl=vi&_x_tr_tl=en&_x_tr_hl=vi&_x_tr_pto

=wapp

Vietstock. (2024, January 31). MWG will only have a net profit of nearly 168 billion VND in

2023, the lowest since listing | Vietstock. Vietstock.

https://vietstock-vn.translate.goog/2024/01/mwg-chi-lai-rong-gan-168-ty-dong-nam-20

23-thap-nhat-tu-khi-niem-yet-737-1152703.htm?_x_tr_sl=vi&_x_tr_tl=en&_x_tr_hl=vi

&_x_tr_pto=wapp

VnExpress. (2023, December 25). The Gioi Di Dong closed nearly 150 stores in two months.

vnexpress.net.

https://vnexpress-net.translate.goog/the-gioi-di-dong-dong-gan-150-cua-hang-trong-hai

-thang-4693104.html?_x_tr_sl=vi&_x_tr_tl=en&_x_tr_hl=vi&_x_tr_pto=wapp

Possible Adopted AI Capabilities

In reaction to the business challenges faced by means of Mobile World Investment

Joint Stock Company (MWG), especially its in-store retail chains consisting of The Gioi Di

Dong, the integration of chatbot and smart speaker resolutions affords a multifaceted

technique to improving the in-store solution and navigating the complexities of the

Vietnamese market.

This paper put the combination of chatbot and smart speakers as the priority for the

solution to the Mobile World, as Vietnam is considered unfamiliar with Artificial Intelligence

(AI) technologies. Vietnam is relatively new to the global AI market, having only developed
its first national strategy in 2021 vis-à-vis research, development, and application of AI

within a 2030 timeframe (Pham, H., T., et al. 2024). Vietnam's nation-wide policy for AI

exploration, advancement, and integration throughout a 2030 timeline was first created in

2021, making it a relatively recent player in the global AI industry.

Table 3. The main AI objectives in Vietnam until 2030

Source: Vietnam's Ministry of Science and Technology (n.d.)

The underdeveloped AI marketplace in Vietnam gives a good sized possibility for

groups to gain a competitive gain by using leveraging revolutionary technologies. As the

marketplace remains in its infancy degrees, adopting AI solutions can provide a tremendous

facet for agencies in search of to upgrade their operation framework and consumer

experiences. This is in particular relevance for groups with a massive physical presence,

consisting of MWG, as improving in-store customer service can enhance their strengths and

appeal to extra clients.

A company's bottom line may be significantly impacted by implementing AI-driven

technology, such as chatbots and smart speakers, to improve the in-store experience. When
customers are happy with a business, they are more likely to return for more transactions

(ExactBuyer, 2023). Repeat business results from this, and repeat business may greatly boost

sales success (ExactBuyer, 2023). In accordance to an examination by Harvard Business

School, gaining 5% more client retention can result in a 25%–95% boost in profitability

(ExactBuyer, 2023). Moreover, happy consumers are more inclined to tell others about their

great experiences, which attracts new clients and boosts revenue (ExactBuyer, 2023). Happy

consumers inform nine others on average about their great experiences, according to an

American Express poll (ExactBuyer, 2023). This word-of-mouth advertising can power sales

growth without extra promotional costs (ExactBuyer, 2023). Therefore, the integration of

chatbot and clever audio system can be important to World Mobile to remedy its consumer

retention hassle and decorate in-store plant and performance in its physical store framework

through an available and consumer-pleasant way for cautious purchasers.

The implementation of an in-shop chatbot represents a tailored strategy to MWG's

operational and consumer engagement challenges. As Vietnam remains inside the early levels

of adopting AI technology, the advent of a chatbot offers an on hand entry point for clients

who may be wary of such improvements. By introducing customers to without difficulty

handy AI systems, Mobile World may help Vietnamese consumers to be much less cautious

of novel era, as well as putting the curve for Vietnam’s era innovation industry. Designed to

provide localized assistance in the local language, the chatbot addresses the decline in

revenue and customer engagement by using offered personalized help. By reading patron

queries and preferences, the chatbot streamlines the in-store experience and decreases labor

prices by automating routine inquiries and guide obligations. This price-saving measure is

vital for MWG to preserve operational efficiency amidst shop closures and sales decline,

ensuring the organization's long-time period sustainability in a competitive market.

 Furthermore, installing smart audio system into MWG shops should compliment the

chatbot solution by improving customer accessibility and comfort. Smart speakers offer a an

interface without the need for physical interference, introducing clients to product statistics,

promotions, and save navigation effects. This sets a user-friendly function for Vietnamese

customers who may find AI technologies overwhelming and hard to utilize, especially for the

millennial and boomer generations, who rely more on personal interaction rather than

technologies and machines. This is particularly precious in some unspecified time in the

future of periods of reduced demand, which includes the low season for electronics, because

it attracts customers to MWG stores and stimulates income. Moreover, smart speaker

mechanism is a suitable introduction to AI technology for Vietnamese people, mimicking the

interaction with an actual sale person, thus, ensuring them about the friendliness of these new

applications.

The combination and support between chatbot and smart speakers produces a

customized and straightforward shopping experience in-store for diverse customers with

different needs. Customers have the options to interact with a chatbot through text or engage

with a smart speaker through voice commands to fulfill diverse conversational requirements,

providing a seamless and personalized shopping journey. This integration further advances

and satisfies customer, therefore stimulates customer retention rate and gains consumer’s

loyalty and trust, alleviating some of the financial burden on MWG as a whole.

Merchat AI is one business that has been recognized to offer patron-centered chatbots,

which Mobile World can also take use of. The Mercari platform, a digital market for used

items, became enhanced with Merchat AI (Mercari, 2023). Customers may additionally

engage with it via textual content or speech to look gadgets, control their purchasing basket,

time table delivery, or check out. It acts as an interactive staff (Mercari, 2023). Merchat AI

can provide real-time tips and customized shopping stories depending at the user's tastes and
finances with the aid of leveraging ChatGPT's skills (Mercari, 2023). Merchat AI's strength is

its ability to understand and meet each user's precise needs (Mercari, 2023). By manner of

natural dialogues, it obtains relevant facts from clients, together with options for certain

manufacturers, best colors and patterns, and economic limitations (Mercari, 2023). Equipped

with this critical information, Merchat AI uses Mercari's massive object database to create

customized tips which can be primarily based on the tastes and finances of each person client

(Mercari, 2023).

Communicating with Merchat AI is similar to talking with professional retail

employees (Mercari, 2023). By generating relevant searches and retrieving relevant

information, Merchat AI streamlines the surfing experience. This permits retailers to offer

their clients a finely curated preference of products that cater to their particular requirements

and tastes (Mercari, 2023). This customized technique will growth the probability of

rewarding transactions and repeat visits to the Mercari platform further to growing client

satisfaction (Mercari, 2023).

As for smart speakers, a voicebot that has caught attention within the customer service

industry is Streebo’s Voicebot. When combined with IBM Watson Assistant, Streebo's

AI-powered Voice Bot is a flexible solution that can be used in a variety of sectors and

businesses (Streebo, 2023). According to Streebo (2023), the Voice Bot of Streebo has shown

to be efficient in assisting with a range of business operations, such as marketing, staff

assistance, agent or distributor service, and customer service (Streebo, 2023). A vast range of

industries, including banking, insurance, healthcare, finance, telecom, government, education,

oil and gas, manufacturing, aviation, and logistics, are covered by these applications (Streebo,

2023).

This powerful NLP competencies enables the Voice Bot to effects control a huge sort

of patron questions and self-service responsibilities (Streebo, 2023). Users also can interact
conversationally with the Voice Bot and speak their necessities and questions in plain

language without the need for inflexible frameworks or preset instructions (Streebo, 2023).

Its adaptability makes purchaser interactions extra intuitive and herbal (Streebo, 2023).

Additionally, the Streebo Voice Bot's integration with IBM Watson Assistant allows it

to reply to inquiries in a well timed and green manner (Streebo, 2023). The Voice Bot can

offer accurate and suitable responses very quickly with the aid of reading consumer input in

real-time and retrieving applicable content material from connected networks or learning files

(Streebo, 2023). This enhances the general consumer touch via making certain that clients

obtain records and help without delay (Streebo, 2023).

Reference

Pham, H. T., Nong, D., Simshauser, P., Nguyen, G. H., Duong, K. T. (2024). Artificial

intelligence (AI) development in Vietnam's energy and economic systems: A critical review.

Journal of Cleaner Production, 438, 140692. https://doi.org/10.1016/j.jclepro.2024.140692.

ExactBuyer (2023). Exploring the Relationship between Sales performance and Customer

Satisfaction.

https://blog.exactbuyer.com/post/sales-performance-vs-customer-satisfaction-exploring-the-re

lationship

Streebo (2023). Delivering AI Powered Digital Transformation Solutions.

https://www.streebo.com/

Streebo (2023). Get Ahead of the Game with Voice Chatbot. The Ultimate Guide to Voice bots

for Business. https://www.streebo.com/voice-chatbot

Streebo (2023). Learn how a leading Financial Institution in Middle East streamlined their

customer services and enhanced customer experience leveraging the IBM Watson Powered

Voice Assistant/ Voice Chatbot with Streebo.

https://www.streebo.com/customers/multi-lingual-bot-solution-atm-kiosk-ibm-watson-power

ed-voice-assistant-chatbot

Applications

Merchat AI’s chatbot and Streebo’s AI-powered Voice Bot are two examples of

conversational AI solutions that use state-of-the-art natural language processing and

understanding to comprehend and respond to the user’s input, whether it is text or

speech, and deliver an appropriate output, whether it is text or speech as well. Both

Merchat AI and Streebo offer multi-lingual and omni-channel support, and can handle

complex and dynamic conversations with the user (OpenAI, n.d.; Streebo, n.d.).

Merchat AI also provides a user-friendly interface for creating and testing

conversational flows, as well as an API for integrating with various platforms and

devices, such as websites, mobile apps, smart speakers, and more (OpenAI, n.d.).

Streebo, on the other hand, offers a drag-and-drop chatbot builder that allows rapid

assembly of conversational interfaces across a variety of channels and backend

systems (Streebo, n.d.).

One way that Merchat AI’s chatbot and Streebo’s AI-powered Voice Bot can be

combined to create a kiosk stand in MWG physical stores is by using a touch screen

and a speaker to interact with customers who enter the store. The kiosk stand can

greet the customers with a voice bot first, ask them what they are looking for, and

provide them with relevant information and suggestions based on their preferences
and needs. For example, if a customer is looking for a smartphone, the kiosk stand

can ask them about their budget, preferred brand, features, and specifications, and

then show them a list of suitable options on the screen, along with their prices,

ratings, and reviews. The customer can then select an option, or ask for more details,

such as the battery life, camera quality, or warranty of a particular model. The kiosk

stand can also offer promotions, discounts, or bundles to entice the customer to

make a purchase. If the customer decides to buy a product, the kiosk stand can

guide them through the payment process, or direct them to a human cashier if they

prefer. The kiosk stand can also ask the customer for their feedback, and thank them

for their visit. All these features in all stages can be processed by either text or voice

approach from the customer.

For MWG's AI integration plan, three critical phases must be meticulously

executed: first, comprehensive staff training programs are essential to ensure

employees are proficient in utilizing MerchantAI and Streebo's Smart Speaker

effectively, including troubleshooting common issues. Second, rigorous testing of

the AI systems is imperative to identify any flaws or compatibility issues, ensuring

seamless integration with existing systems and workflows. Finally, a carefully crafted

rollout plan is necessary, starting with pilot stores to gather feedback and make

necessary adjustments before scaling up to all locations, accompanied by clear

communication and support mechanisms for employees and customers throughout

the transition. Through these phases, MWG can achieve a smooth and efficient

integration of AI technologies, enhancing customer experiences and improving

business outcomes.
 Several scenarios that may arise when using the kiosk stand include

instances where the customer speaks a language that isn’t supported by Merchat AI.

In such cases, the kiosk stand can politely apologize and prompt the customer to

select a different language from a list of available options on the screen.

Alternatively, it can direct them to a human staff member for further assistance.

Additionally, if the customer poses a question beyond the kiosk stand’s knowledge or

too complex to handle, it can acknowledge its limitations and offer to connect the

customer with a human expert through various means such as a phone call, chat, or

face-to-face interaction. Moreover, in the event of a system error or network outage

impacting the kiosk stand’s functionality, it can promptly notify the customer about

the technical difficulties and express regret for any inconvenience caused.

Subsequently, the kiosk stand can attempt to resume the conversation, suggest

trying another kiosk stand, or notify assistance to a human staff member to help the

customer on they problem and tell the customer “Sorry Mr/Ms for the inconvenience,

please wait for staff assistance”.

Ref

OpenAI. (n.d.). Merchat AI. Retrieved from 1

Streebo. (n.d.). Digital transformation & conversational AI company. Retrieved from 2

Outcomes

By implementing the proposed bots, the MerchatAI chatbot and the Streebo

smartspeaker, MWG could achieve results such as enhancing the customer experience

in-store, improving the efficiency of the company operations, and most importantly, solving

the biggest problem of the company which was identified as declining in sales. According to
BusinessDIT, customer experience will be boosted by 95% thanks to artificial intelligence

(AI) in 2025 (Yaqub, 2024). Additionally, according to a study by Boston Consulting Group,

companies that use AI technology in their marketing strategies can increase conversion rates

by up to 20%. (Hylewski, 2024). From there, by using AI tools like MerchatAI and Streeboo,

MWG will guaranteed to have the opportunity to enhance customer interactions and increase

sales. Walmart is a specific example of a company that has seen significant benefits thanks to

the integration of AI-powered bots. Text-to-Shop is the name of the bot used by Walmart, as

its name, this bot can help customers shop using text, and it is a combination of two AI

technologies, chatbot and voice recognition (Goldman, 2022). Regarding the results that this

bot brings, according to Hoek et al. (2022), of the suppliers approached by Walmart, 68% of

them successfully negotiated with the company thanks to this bot, a number significantly

higher than traditional methods. Moreover, Walmart has also saved up to around 1.5% and

3% of negotiated costs thanks to the use of this bot (Hoek et al., (2022). With the benefits

stated, if MWG decides to apply the two proposed bots, the company can get similar results

such as increasing negotiation rates and reducing costs.

Merchat AI, a bot with the ability to scan millions of items in seconds powered by

ChatGPT, is the proposed AI chatbot technology for MWG (Mercari, 2023). According to

Bondarchuk (2023), 2.5 billion is the number of hours that businesses can reduce for

customer support representatives if they use AI chatbots, showing the opportunity to reduce

the workload and the costs of customer service agents that chatbots like MerchatAI can

provide. Additionally, by understanding customer needs such as brand, style, or color,

MerchatAI can provide a personalized shopping experience for each individual, as stated by

Mercari (2023). Also, MWG can attract more customers as well as increase revenue thanks to

MerchatAI's ability to suggest unique gift ideas and style advice (Mercari, 2023). Moreover,

according to research, highly personalized brands are often the choice for repeat purchases by
customers, with a figure of up to 74.7% (Medium, 2023). This shows that MWG has

absolutely the opportunity to increase repeat purchases and increase sales thanks to this

personalized suggestion ability of MerchatAI.

The second AI technology proposed to MWG is the smartspeaker Streebo, a bot that

is guaranteed to be trained with up to 99% accuracy to reduce errors and improve customer

satisfaction, as stated on Streebo's website (n.d.). Streebo’s smart bots could also lead to a

decrease in operational costs, which could potentially help MWG reduce costs (Streebo, n.d.).

According to Streebo’s website (n.d.), their voice bot solution can reduce customer service

costs, increase customer satisfaction, and handle up to 80% of customer queries without

human intervention. Streebo also claims that their voice bot solution can support over 38+

languages and be deployed in as little as four weeks (Streebo, n.d.). As per IBM’s report,

52% of customers hang up on a customer service call before their issue is resolved, according

to Streebo (n.d.). This suggests that AI-powered voice bots like Streebo’s could help improve

customer satisfaction by providing more efficient and effective responses. Additionally,

Streebo’s omni-channel digital solutions can respond to voice commands from the likes of

Amazon Alexa, and Google Home and can be integrated with the company’s existing IVR

system (Streebo, n.d.). This could potentially provide a seamless customer experience,

leading to increased customer satisfaction and sales.

Based on the benefits that AI-powered bots have brought to other companies, several

expected outcomes were predicted for MWG. In terms of conversion rates, MWG could

potentially see an average increase of 20% within a year of implementation, as AI integration

in marketing strategies has shown such results, as stated by Hylewski (2024). The second

outcome is the improvement in customer experience. According to Yaqub (2024), by 2025,

AI is predicted to drive nearly all customer interactions, suggesting that a potential of 95%

MWG customer interactions could be streamlined and personalized within a few years of
implementation. The next benefit is cost savings. MerchatAI could potentially save MWG up

to 2.5 billion hours of work for customer support reps a year similar to the result reported by

Bondarchuk (2023). This could translate into significant cost savings for MWG within the

first year of implementation. Additionally, MWG could potentially see a savings of 2% on the

spend negotiated using AI-powered bots within a few years of implementation, based on a

similar level of savings by companies like Walmart, who have applied AI bots to their

negotiation process (Hoek et al., 2022). The increase in sales is an outcome that MWG could

expect if they engage in implementing the proposed bots. As claimed by Medium (2023),

personalized recommendations could potentially increase repeat purchases and sales

indicating a potential level of 75%, similar to the level given in the article, of MWG

customers who will likely make repeat purchases. This could lead to a noticeable increase in

sales within the first year of implementation. Reduced customer service costs is a benefit that

can not be missed. With the application of Streebo’s voice bot solution, MWG could

potentially handle up to 80% of customer queries without human intervention, this number

was given based on the ability Streebo stated on their website, which could lead to a

significant reduction in customer service costs within the first year of implementation. Lastly,

customer satisfaction will also be improved if MWG decides to apply Streebo’s Smart Bots to

their business. In specific, as claimed by Streebo (n.d), their bots’ accuracy was trained to the

level of near perfection, which in the context of MWG would mean that the customer service

of the company could potentially hypothesized as will reduce 99% of errors and from that

will improve customer satisfaction within the first few months of implementation.

Bondarchuk, Y. (2023, October 14). 130+ ai customer service statistics for 2023 (Facts

& Trends). MarketSplash. https://marketsplash.com/ai-customer-service-statistics/

Mercari. (2023, April 18). Mercari launches Merchat AI, a new shopping assistant

powered by chatgpt. PR Newswire.

https://www.prnewswire.com/news-releases/mercari-launches-merchat-ai-a-new-shoppi

ng-assistant-powered-by-chatgpt-301800139.html

Yaqub, M. (2024, February 26). Incredible Ai Customer Service Statistics: The latest

data. BusinessDIT. https://www.businessdit.com/ai-customer-service-statistics/

Mercari. (2023, April 19). Meet Merchat Ai, your mercari personal shopper. Mercari.

https://blog.mercari.com/us/meet-merchat-your-mercari-ai-personal-shopper

Medium. (2023, October 23). Generative AI in retail: Reshaping the shopping to boost

sales and roi. Medium.

https://medium.com/nerd-for-tech/generative-ai-in-retail-reshaping-the-shopping-to-bo

ost-sales-and-roi-bc28fb271a02

Goldman, S. (2022, June 9). Ai is embedded everywhere at walmart. VentureBeat.

https://venturebeat.com/ai/ai-is-embedded-everywhere-at-walmart/

Hoek, R. V., DeWitt, M., Lacity, M., & Johnson, T. (2022, November 8). How walmart

automated supplier negotiations. Harvard Business Review.

https://hbr.org/2022/11/how-walmart-automated-supplier-negotiations

Streebo. (n.d.). Customer service chatbot. Streebo.

https://www.streebo.com/customer-service-chatbot

Hylewski, M. (2024, February 20). Conversion rate optimization with AI in 2023 (+6

examples). Landingi. https://landingi.com/blog/conversion-rate-optimization-with-ai/

 Conclusion

In conclusion, the integration of AI capabilities, specifically MerchatAI’s chatbot and

Streebo’s smart speaker, into MWG’s operations presents a promising solution to the

company’s current challenges. These technologies not only offer the potential to enhance the

in-store customer experience but also provide a strategic approach to streamline operations

and address the company’s revenue decline.

If MWG applies these two proposed AI technologies, they will be completely

consistent with MWG's strategic goals, not only that, these AIs can improve operational

efficiency and business development of the company. In addition, these two AI solutions will

help businesses and consumers in Vietnam become familiar with advanced technologies,

thereby increasing the acceptance and development of AI applications in Vietnam.

Expected results for MWG when applying these two AI technologies include

increasing conversion rates, improving customer experience as well as satisfaction, reducing

costs such as service fees or wages for customer service staff, and last but not least is an

increase in sales. These predicted results have shown an opportunity for similar businesses in

Vietnam to become familiar and use AI technologies to reshape their business operations and

enhance customer engagement.

hihi