Strengthening Competitor Analysis of Philippine Enterprises

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Strengthening Competitor Analysis of
Philippine Enterprises

• Towards Improved Implementation of the New Export
  Development Plan 2008-2010
• Philippine Exporters Confederation, Inc.
  (PHILEXPORT)
• 3rd Quarter General Membership Meeting
• Visayas Ballroom, Sofitel Hotel
• July 23, 2008

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Outline of Presentation

• Background and Objectives
• Why Competitor Intelligence (The Development of
  Vietnam Coffee Industry)
• UPS ASIA Business Monitor SME Survey
• Competitor Analysis Workshop
• Workshop Outputs Per Sector
• Implementation Strategy Papers
• Policy Reform Papers

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A. Background and Objectives

• Following the Philippine Export Development Plan
  2008-2010, there is a need to strengthen
  public-private partnership capability in
  competitor analysis.
• In view of the ASEAN 2015, there is a need to
  anticipate potential intra-ASEAN cooperation
  strategies proposed by various sectors (vis-à-vis
  China and India) and traditional trading partners
  such as the USA, Japan and EU.
• A two day training program was organized by the
  Partnership and Advocacy for Competitiveness and
  Trade (PACT) in cooperation with EDC to build up
  the capabilities of Business Development Managers
  in DTI BETP and other key stakeholders in
  export development in undertaking competitor
  analysis.

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• Development of new training materials for
  Competitor Intelligence
• Facilitation of a two (2) day training program
  for 50 participants and
• Writing of implementation strategy paper and
  policy reform paper for presentation to the
  Export Development Council (EDC)

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B. Why Competitor Intelligence?Development of
Vietnam Coffee Industry

• Strategy of Vietnam Coffee Industry
• Quality Improvement for Vietnam coffee
• Production cost reduction
• Variety and product shifting, production
  adjustment to the demands
• Coffee consumption promotion in the domestic
  market as well as to great potential countries
• Reorganization of product and export structure in
  a better scientific, modern, effective and steady
  way

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C. Why Competitor Intelligence?UPS Survey of
Asian SMEs 2008

• 1. Philippine SMEs seen by the region as the
  least competitive
• 2. Philippine SMEs view single most effective
  issue to create a more conducive business
  environment is governments addressing the
  political environment stability.
• 3. Philippine SMEs rates difficulty in
  forecasting demand as its major problem in supply
  chain management (1 in the region at 66 vs.
  average of 46) ? need for competitor
  intelligence

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C. Expectation on Regional Economic Growth from
2005 to 2008
Source UPS ASIA BUSINESS MONITOR
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C. SME Business Prospects from 2005 to 2008
Source UPS ASIA BUSINESS MONITOR
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C. SME Business Prospects
Source UPS ASIA BUSINESS MONITOR
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D. Competitor Analysis Workshop Objectives

• Workshop Schedules June 3, 4 and 19
• Objectives of Training-Workshop
• Identify competitive forces that define sectoral
  strategies
• Determine systematic tracking of competitors in
  selected countries and
• Conduct an industry analysis using Porters Five
  Forces Framework

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D. Competitor Analysis Workshop Workshop
Mechanics

• Participants were grouped into four corresponding
  to four sectors namely Health and Wellness,
  Homestyle Furniture, Apparel and Food
• Each group was asked to do business intelligence
  on their sector following Porters Five Forces
  Framework (Template 1)
• Each group also submitted their recommended
  strategies (Template 2)
• Outputs were presented on the third day for
  critiquing of the Resource Speakers

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FIVE-FORCES ANALYSIS Besanko et al, Economics of
Strategy (3rd Edition), Wiley Sons, Inc.,
2004  Focus RETIREMENT
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FACTORS AFFECTING OR REFLECTING PRESSURE FROM
SUBSTITUTE PRODUCTS AND SUPPORT FROM
COMPLEMENTS To what extent does competition from
substitute products outside the industry erode
the profitability of a typical firm in the
industry?
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The Koreans have shown keen interest in
purchasing retirement packages such as time
sharing schemes in the Philippines prime
retirement villages (such as Subic Nasugbus
Imperial Silver Town Retirement Village, which
has a total land area of 35,100sq.m., features
retirement villas, condominiums, amenities like
spa and gym, health clinic, tennis court,
swimming pool and park/garden as developed by the
Korean firm, Se Hyun Development,
Inc.)   According to a press release quoted in
the Manila Times, Koreans have picked RP as a
retirement haven. The Philippines is most
favored among retirees because it offers a
retirement visa providing multiple entry and
indefinite stay. Middle-class workers in their
30s and 40s who want a cheaper English-language
education for their children are also looking to
Southeast Asia. A Korean noted that its the
tough life and soaring education expenses that
prompted him to leave South Korea.
2.       Do buyers purchase in large volumes?
Does a buyers purchase volume represent large
fraction of typical sellers sales revenue?
http//www.news.ops.gov.ph/archives2007/apr28.htm
        http//www.philippineretirement.org/client
s/philippineretirement/March2007.pdf
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D. Summary of Workshop Inputs/ Presentations

• Dr. Federico Macaranas
• Executive Director, AIM Policy Center
• Mr. Romeo Mascardo
• President, Society of Competitive
  Intelligence of the Philippines
• Mr. Alwin Sta. Rosa
• AVP-Comptrollership, Business Excellence
  Officer, First Philippine Holdings Corporation
  Board Member, Knowledge Management Association
  of the Philippines (KMAP)
• Mr. A. Francisco Mier
• Assistant Director General, Office of the
  Security Policy, National Security Council

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Convergence for CompetitivenessDr. Federico M.
Macaranas

• Identified the different milestones that serve as
  the push factor for competitive intelligence such
  as the
• ASEAN Integration by 2015 (FTAs and RTAs by 2013)
  
• Upper 3rd in Competitiveness Indices by 2010
• PEDP (latest) commitments by 2010
• National ST Targets by 2010
• SME Development Plan by 2010
• Philippine Services Roadmap

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Determine systematic tracking of competitors in
select countries though Business
Intelligence
Convergence for CompetitivenessDr. Federico M.
Macaranas
Porter
INDUSTRY STRATEGY
NCC
INPUTS
DEMAND
Business Intelligence
SUPPLIERS
Cost Structure -labor -electricity -transportation
, etc.

• 4 Inputs
• HR
• Management
• Energy
• Infrastructure

Coopetition Technology Innovation
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Leveling ExpectationsDr. Federico Macaranas
Self

• More learning techniques on information gathering
  sharing.
• Deeper awareness appreciation of Business
  Intelligence

• To find new market and suppliers
• To apply Business Intelligence.

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Sector

• More ethical approach for government private
  sector in gathering sharing of information.
• To use Business Intelligence as a guide for
  product development/innovation.
• Thru updated/ relevant/ dynamic Business
  Intelligence.

• For the government units to be equipped to better
  cascade information to clients.
• For sector to effectively tap Business
  Intelligence as a tool for increasing/
  maintaining market share and tapping new markets
• To help all sectors become globally competitive

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Philippines

• To relate macro-economic information of
  competitor countries to adjust Philippine prices
• Increased competitiveness of the Philippines year
  after year.
• For government units to have unified Business
  Intelligence efforts
• Make us a of Policy Business Intelligence as a
  tool for Competitiveness (Infrastructure/
  Resources)

• Improve Business Intelligence for PhilExporters.
• To create national awareness on the value of
  Competitor Intelligence

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Business Intelligence Practices in the
PhilippinesMr. Romeo Mascardo

• Competitive intelligence is a systematic and
  ethical program for gathering and analyzing
  information about the competitive forces and
  general business trends to further your own
  companys/countrys goals.
• What information are we going to gather? and
  Where do we get data and information?
• The competitive intelligence cycle are Plan,
  Collect Information, Analyze, and Communicate
• Key Intelligence Requirements
• Strategic decisions and actions
• Early warning topics
• Description of key players in the marketplace

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Strengthening Competitor Analysis Practical
ApplicationsMr. Alwin Sta. Rosa

• Defined Premium Value Creation as a value
  increment brought about by consistently
  performing beyond expectation, by excellent
  resources and processes to deliver expectations
  and by exceptional strategies that are well
  communicated
• Presented experiences of First Philippine
  Holdings Corporation in integrating business
  intelligence in its systems and processes.
• Presented experience of PCASTRD in the conduct of
  its Strategic Planning using business
  intelligence in the formulation of its Plan

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Towards a First World Social BrainMr. A
Francisco Mier

• Defined Social Brain as a network of high
  powered think tanks and RD centers in support of
  a National Vision.
• Network are individuals and groups actively
  exchanging and sharing knowledge
• High powered - able to influence decision-making
  in the highest levels of the business, civil
  society and state sectors of the nation.
• Think tanks - academic and non-academic
  groups/organizations conducting research on wide
  ranging issues and disseminating their outputs
  for use by their principals, special publics or
  for information of the general public.
• RD centers - organizations dedicated to
  generating, conceptualizing and testing ideas on
  new products/services that could eventually be
  commercialized or made available to the consuming
  public.
• National Vision - a commonly agreed upon and
  time-bounded description of the
  end-state/end-goal for the Filipino nation

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E. Workshop Output Home-Style Furniture
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E. Workshop Output Apparel
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E. Workshop Output Food
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E. Workshop Output Health Wellness -
Retirement
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E. Workshop Output Observations and
Findings

• Lack of appreciation by the participants as
  manifested by the incomplete and few submission
  of the Porters Five Forces Analysis. Reasons
  given were
• Exercise is time consuming
• Cannot find information on the internet
• Not familiar with Porters Five Forces Model
• Participants were constrained by lack of
  available information on the internet.
• Some participants are knowledgeable about the
  exercise but were constrained to do the tedious
  part of the analysis (completing the Porters
  Five Forces) or doing the information search.
• Hesitancy of participants from the private sector
  to share information e.g. pricing and cost
  structure
• Existing apparel database in DTI (WGSN.com) is
  under-utilized because proprietary constraints.

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F. Synthesis of Implementation Strategy
Papers

• Continuous capability building of government and
  industry practitioners on competitor analysis and
  business intelligence
• Similar workshop be conducted for all critical
  sectors with a longer timeframe but staggered
  schedule (i.e. one a week for six month starting
  this year) to both government personnel and
  industry practitioners
• Export Development Council and DTI should take
  the lead in pushing for massive training tapping
  institutions such as AIM, UP, UA P, DLSU,
  Society of Competitive Intelligence of the
  Philippines, etc.
• Outsourcing of formulation of industry analysis
  including business intelligence plans
• Export Development Council and DTI should take
  the lead in outsourcing the formulation of
  industry analysis and business intelligence
• Increasing access to global and local researches
  and industry databases
• The Department of Science and Technology (DOST)
  and the Department of Health (DOH) should provide
  assistance
• For Food Industry, public (DA/DTI/DFA/ PCARRD -
  Mango Information Network (MIN) ) and private
  agencies (e.g. PhilExport, Philfoodex,)
• Setting up f intelligence gathering activities
• Kapihan is recommended for all critical sectors.
  Industry Associations, DTI and EDC should take
  the lead in organizing the said forum within this
  year.

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G. Synthesis of Policy Reform Papers

• Patenting Filipino products (e.g. hilot, apparel
  and furniture designs, mango (brand)
• Export Development Council should negotiate with
  the WTO in patenting the Pinoy Hilot and other
  Pinoy products to signify PHillippne brand.
• Taking advantage of ASEAN agreements and other
  bilateral agreements to collect business
  intelligence on key industries
• DTI through EDC should take the lead
• Industry Integrations (Supply Chain approach)
• public and private partnership to facilitate
  better competitive-cooperative relationship,
  network protocols, and standardization (i.e. DTI
  EDC and Industry players)
• Educational Reforms and Technological Innovation
• The NCC should direct CHED and TESDA to work
  closely
• DOST and DA should be at the forefront in
  developing appropriate or alternative
  technologies
• DTI and EDC should take the lead
• National Competitive Council (NCC) should direct
  the PIDS, DOST and all State Colleges and
  Universities (SUCs) and perhaps even High School
  Sciences to focus researches that can help
  improve the competitiveness of Philippine
  industries
• Design center of the Philippines

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Mabuhay Competitive Philippines!
copies available at http//www.policy.aim.edu/