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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
Outline of Presentation
A. Background and Objectives
B. Why Competitor Intelligence (The Development of Vietnam Coffee
Industry)
C. UPS ASIA Business Monitor SME Survey
D. Competitor Analysis Workshop
E. Workshop Outputs Per Sector
F. Implementation Strategy Papers
G. Policy Reform Papers
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.
• 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)
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
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
government’s 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
C. Expectation on Regional Economic
Growth from 2005 to 2008
100% 92%
88%
88%
90% 86%
%
8180%
80%
69% 69%
68%
70% 62%
66%
62% 60%
64%
58%
60% 56%
54%
53% 52%
57%
49% 51% 51% 50% 50%
48%
50% 45%
44%
46% 47%
43%
43% 44%
44%
47%
44%
43%
42% 2005
38%
40% 36% 36%
33%
2006
30% 24%
22%
19%
26%
26%
20% 15% 2007
10% 2008
0%
do n
ilip ia
A u s ia
a
M nd
a
Ta n
lia
u t ore
T h ea
ng g
s
in
di
a
ne
S i on
pa
P h ne s
ra
iw
r
la
ay
Ch
In
Ko
S o ap
pi
k
Ja
st
ai
al
ng
h
Ho
In
Source: UPS ASIA BUSINESS MONITOR
C. SME Business Prospects
from 2005 to 2008
100%
89%
90% 87% 87%
86%
82%
79% 79%
80% 74% 73%
78% 78%
71% 71% 71%
69% 69%
70% 63%
62%
67%
64% 63%
66% 66% 66%
63%
66%
61% 60% 59% 61
60% % 60%
60% 60%
59% 59% 59%
60% 57%
54%
50% 48%
44% 43%
48%
2005
41%
40% 38% 38%
38%
2006
30% 28%
2007
20%
2008
10%
0%
M an
ng a
a
a
nd
a
n
T h lia
A u re
In re a
ng
s
Ho esi
S i ys i
in
di
ne
pa
o
ra
iw
ko
S o a ila
Ch
In
Ko
ap
pi
a
Ja
n
st
Ta
al
do
ilip
ng
h
ut
Ph
Source: UPS ASIA BUSINESS MONITOR
C. SME Business Prospects
75%
74%
70% 69%
2005
65%
62% 63% 2006
60% 2007
2008
55%
P hilippines
Source: UPS ASIA BUSINESS MONITOR
D. Competitor Analysis Workshop:
Objectives
• Workshop Schedules: June 3, 4 and 19
• Objectives of Training-Workshop
1. Identify competitive forces that define sectoral strategies;
2. Determine systematic tracking of competitors in selected
countries; and
3. Conduct an industry analysis using Porter’s Five Forces
Framework
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 Porter’s 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
FIVE-FORCES ANALYSIS
Besanko et al, Economics of Strategy (3rd Edition), Wiley & Sons, Inc., 2004
Focus: RETIREMENT
Characterization Future Trend Comments/Notes
(Current)
FACTORS AFFECTING RIVALRY AMONG EXISTING COMPETITORS
· To what extent does pricing rivalry or non-price competition (e.g., advertising) erode profitability of a typical firm in this industry?
The degree of seller (service provider / facilities developer and It is highly anticipated that the degree of seller The so-called “Retirement
1. Degree of seller operator, etc.) concentration can be considered as relatively insignificant concentration in the Region will dramatically increase as the Industry” has yet to be officially
concentration? considering that the retirement phenomenon has barely made its presence felt baby boomers in the developed countries continue to increase. categorized as an Industry by the
with the baby boomers (born between 1946 to 1964) just starting to retire. NEDA, unlike Tourism Industry for
example. Therefore, one may not
The target market of the PRA consists of the foreign retirees from find official figures or statistics
Japan, South Korea, China (including Taiwan), the United States, and Europe. relative to the Philippines pertaining
Demographic estimates project the number of retirees from these areas at close to the so-called “Retirement
to 900 million cumulatively by 2015. During the First Philippine Retirement Industry”. If a foreign retiree could
Industry and Investment Summit held in Makati City on July 3, 2006, the PRA be defined as a long-stay tourist,
launched jointly with the PRI its program to bring into the country some 859,000 then the “Retirement Industry”
foreign retirees from its target market by 2015 or less than 1 retiree for every might be considered as a subset or
1,000 retirees from those areas. (Please see attachment with file name “PRA - part and parcel of the Tourism
The Market”.) Industry. Hence, this is a pregnant
area for policy study and
In the Philippines, there are only a few facilities devoted to foreign consideration.
retirees. Except for a couple of Japanese-dedicated retirement facilities, the rest
are basically real estate development projects with foreigners as additional
market segment as exemplified by the proliferation of Korean enclaves in many
residential communities. Most of the foreign retirees in the country are under
radar with the exception of enrollees in the Special Resident Retiree’s Visa
(SRRV) program of the Philippine Retirement Authority (PRA) which started way
back in 1985 basically to generate foreign exchange while positioning the
country as the preferred retirement destination in the Region.
The country now competes mainly with Thailand and Malaysia in
attracting foreign retirees. There are no reliable figures to cite but the former is
touted to have hosted some 20,000 foreign retirees last year alone, while the
latter, about 10,000 or so. In comparison, the number of PRA SRRV enrollees
has averaged around 600 annually from 1985 to 2005, picking up to about 1,500
in 2006 and 2,500 in 2007. However, foreign retirees who are not SRRV holders
remain unaccounted for.
In addition to Thailand and Malaysia, the country can expect stiff
competition from Panama, and now Mexico, as well as other Central and South
American countries, in providing retirement haven to retirees particularly from
the United States. In the case of Europe, its retirees flock to Spain and Portugal,
and the more prominently emerging East European countries such as Bulgaria,
etc.
2. Rate of industry Since there is no official categorization of Given the increasing and
growth? the so-called ―Retirement Industry‖ as a separate relentless downward fiscal pressure on
Industry by the NEDA, it is difficult to cite a rate of the social security and medical
industry growth. Even the forecasted industry insurance coverage or benefits accorded
growth rate for the Tourism Industry might not to the retirees universally being
present as an appropriate indicator, assuming for experienced now in the developed
the sake of argument that the so-called ―Retirement countries, the number of these retirees
Industry‖ is a subset or part and parcel of the seeking a second home in overseas
Tourism Industry. retirement haven, such as the
Philippines where they can stretch the
value of their retirement benefits coming
from their country of origin, can only
accelerate by leaps and bounds.
Going by the PRA program, the
number of SRRV holders is projected to
reach a total of close to 1 million foreign
retirees by 2015. With each retiree
bringing in US$20,000.00 as required
deposit and spending an estimated
amount of US$1,000.00 monthly on the
average, the program is expected to
generate about US$44 billion in foreign
exchange earnings or inward
remittances and around 4 million jobs
using the rule of thumb of 4 job
opportunities created for each settled
foreign retiree in the country.
3. . Significant cost Retirement facilities cater to three (3) Various websites
differences among levels of caring for the retirees, to wit, Active Living, of the PRA-accredited
firms? Assisted Living, and Nursing Home, and may retirement facilities.
consist of any of or all three (3) components, viz.,
Housing, Healthcare, and Hospitality or Lifestyle.
In turn, each of these facilities conforms to
prescribed standards drawn up by the PRI and
approved by the PRA and corresponds to high end,
middle class, or low end target market.
Necessarily, there are substantial cost
differences among the firms representing the
service providers / facilities developers and
operators. (Please visit the PRA and the PRI
websites at www.pra.gov.ph and at
www.philretirement.org, respectively.)
For all intents and purposes, the
Philippines as a retirement haven in the Region can
only attract the middle class and low end target
market. The high end market tends to gravitate
towards more popular, convenient and ―classy‖ or
―ritzy‖ destinations where the retirees who can
afford congregate. Even as competition heightens
in the future among rival destinations in the Region,
the firms with higher ―value for money‖ or ―value
added‖ proposition will accentuate the substantial
cost differences among firms.
4. Excess capacity? For any of the three (3) components mentioned, no Over the medium term and the A sophisticated
shortage is anticipated to adequately service the long pull, capacity would become critical simulation study needs
requirements of the retirees within the foreseeable particularly in the Healthcare component to be undertaken in
future. considering the worsening shortages in order to determine the
the supply of domestic healthcare saturation point for
workers with no end in sight. foreign retirees, at
which time it may no
In addition, there is growing longer be feasible to
clamour for appropriate attention to be accept them into the
extended to destitute Filipino retirees. country.
As their numbers pick up in the future
considering the continuing abnormally
high local birth rate, a point could be
reached when foreign retiree’s
admission into the country, whether or
not PRA SRRV holders, might not be
viable anymore due to capacity
constraints.
5. Cost structure Intuitively, it is to be expected that the cost Intuitively, too, if and when the The previously
of firms: sensitivity structure of firms involved in the so-called theoretical saturation point is attained, mentioned simulation
of costs to capacity ―Retirement Industry‖ should be sensitive to the costs factors become immaterial. study may incorporate
utilization? capacity utilization. The extent or ranges of such this particular area of
sensitivity, however, will have to be calculated Low priced, incentive and inquiry.
using appropriate framework or formula. painless package
Compare
Package presented by PRA is less Malaysia offer and US-
attractive, concerned with dollar deposits, no Arizona
incentive package. Concerned only with
location offer (real estate only?) without
relocation assistance and property search and
other options.
6. Degree of Very far from competitors’ package plans. Refer to Painless retirement plan Planningmyhome.
product Malaysia package. No branding offered yet as no com
differentiation package plan is offered.
among sellers?
Brand loyalty to
existing sellers?
Cross-price
elasticity of demand
among competitors
in industry?
7. Buyers’ cost of Foreign retirees have low switching cost To complete in the future, the Philippines Look at best
switching from one from one country to the other. Philippine package has to offer best health care packages, places to retire article
competitor to cannot compare with what US, Spain offers. continuing education and other services in google
another? like employment (for retirees).
However, for Filipino balikbayans, there is
a high switching cost because most balikbayans
would want to retire in the Philippines and be close
to their relatives.
8.Are prices and Yes. However, the packages offered by PRA are Prices and terms of reference need to be Priceline.comfor
terms of sales incomplete. Services and incentives are not defined expounded, may need pre-exploration of dummies on best
transactions at the PRA web. the plans/packages places to retire
observable?
9. Can firms Yes, but needs to do business planning
adjust prices especially on other services like packaged plans,
quickly? employment services.
10. Large and/or For individual buyers, transaction is a one-
infrequent sales time purchase while group buyers buy more
orders? retirement packages (ex. Korean retirees)
11. Use of Use of online advertisements in their
facilitating practices respective portals
(price leadership,
advance Dissemination of information through
announcement of printed promotional collaterals/brochures specifying
price changes)? rates, discounts & incentives
12. History of Private stakeholders have formed a network but Cooperative
―cooperative information on pricing is limited pricing should be
pricing‖? discussed strategically
by PRA & PRI
13. Strength of The Philippines is promoting the products
exit barriers? and services offered by our own retirement www.pra.gov.ph
villages. Hence, the thrust here is inbound not
outward.
Retiree-participants of the Philippine
Retirement Authority’s (PRA) programs who intend
to travel overseas are no longer required to
accomplish and submit the Retiree’s Departure
Form.
This is in keeping with the Authority’s thrust
of liberalizing its rules and regulations.
FACTORS AFFECTING THE THREAT OF ENTRY
To what extent does the threat or incidence of entry work to erode the profitability of a typical firm in this industry?
1. Over the past decade, the Philippines has The U.S. Census Bureau forecasts http://www.sbwire.com/ne
become a retirement haven for thousands of foreigners, that by the year 2015, there will be 2.5 million ws/view/9260
particularly the Japanese, Korean, and Northern more Koreans over 60 years old to total 8.9
Europeans. Along with Thailand and Malaysia, the million.
Philippines developed communications, infrastructure, and www.pra.gov.ph
service delivery systems specifically geared to meet the
needs of foreign retirees.
According to the international database of the U.S.
Census Bureau, there are 6.4 million Koreans aged 60 and
above. On the other hand, investors can choose from any
of the PRA-designated priority locations to establish
retirement facilities, namely National Capital Region
(NCR), Baguio, Subic/Clark, Tagaytay, Cebu and Davao.
Korea is one of the major retiree markets for the
Philippines.
2. Importance of The Philippine Retirement Authority(PRA) Comment :
reputation or will adopt a Country Branding Strategy for the The Philipppine
established brand Retirement Industry government should
loyalties in purchase adopt a specific
decisions? ―The President declared the Philippine country branding
Retirement Industry as a Key Flagship Project – to slogan for the
be led by the Private Sector with strong support retirement sector
from Government.‖ Second, the President (Example of a country
declared ―General Edgar B. Aglipay as the with a good slogan;.
Retirement Industry Czar.‖ Hongkong’s slogan:
Discover Hongkong :
And with those two simple declarations the Live It, Love It(with
President unleashed the momentum, which many popular movie
see as a major opportunity, to transform the endorsers advertised
economy of the Philippines.‖ through online and
offline media)
Gen. Aglipay of PRA has been talking
about the retirement villages currently under
construction in the Philippines that are aimed at Sources:
providing world-class facilities and services. This is http://www.philippinere
a sectoral branding strategy that PRA is currently tirement.org/
implementing to promote the Philippine retirement
industry to the global market.
www.pra.gov.ph
3. Entrants’ access A Korean company has mapped activities to In the future, trading of leasehold rights http://www.philippinere
to distribution promote the retirement program of the Philippines. among foreigners may become common tirement.org/
channels? Being in the travel business, Rakso, a Korean firm and a day-to-day transaction. .
for instance, packages tour for Koreans who would www.pra.gov.ph
like to see the Philippines. They are also eyeing at
possibility of investing in real estate in the
Philippines as part of their short term plan.
Mr. Lee of Rakso pointed out in a presentation that
one big resistance in investing in the Philippines is
the ownership restriction because the Koreans
value certificate of ownership.
The public-private partnership promoting the
Retirement industry has been informing foreign
investors about recent developments that protects
the investment of foreign investors through
leasehold rights contract. Long-term leases allow
the lessee to earn profit as he sells his leasehold
rights to another person.
The Philippine Retirement Authority (PRA) has
been carving a niche for the Philippines in the
global retirement industry. PRA was able to
achieve this status thru the hard work of PRA’s
employees, the support from friends in the media,
its facilities and merchant partners, and accredited
suppliers, and to the unwavering support of
retirees based in different islands of the Philippines.
Serving as distribution channels are Philippine
companies offering products and services of
interest to retirees.
§ a leading medical group which gives retirees
discounts on selected medical procedures.
§ an insurance and investment company that
offers investment products such as bonds and
equity stocks.
§ land developers serving as accredited real
estate organizations
4. Entrants’ access Entrants/investors are constrained by existing Needs review on
to raw materials? requirements (restriction on land ownership for investment policies
foreign investors, only lease contract of 25
years in identified retirement sites such as NOTE:
Subic) In Malaysia, investors
are allowed to invest
and own businesses.
Malaysia’s MM2H
program allows
retirees to reside on
a long-term basis
Source
:http://www.12retireinm
alaysia.com
5. Entrants’ STATE-RUN Philippine Retirement http://www.manilat
access to Authority (PRA) and Philippine Retirement Inc. imes.net/national/2007
technology/ know- (PRI) on Tuesday announced that major real-estate /may/23/yehey/busines
how? companies have expressed interest in investing in s/20070523bus3.html
facilities catering to foreign retirees. Edgardo
Aglipay, PRA chairman, said that big companies COMMENT:
are set to put in more money to sustain the Are these in place?
increasing arrivals of foreigners planning to retire in
the country. These are Ayala Land Inc. Filinvest
Land Inc., Megaworld Corp., Robinsons Land
Corp., SM Investments Corp. and a property firm
led by tobacco magnate Lucio Tan.
These firms are expected to account for a
big slice of the $4-billion target investment in the
retirement industry. PRA recently issued standards
for the accreditation of retirement facilities and
services. These pertain to safety and security,
financing, healthcare, insurance, emergency
transportation and lifestyle.
6. Entrants’ access Philippines:
to favourable
locations? PRA has identified the following as
retirement areas :
North Luzon
Baguio
Subic
Clark
Tagaytay
Cebu
Davao
PRA’s marketing group has been providing http://www.escapeartis
support to entrants in terms of accessing these t.com/efam/41/anual_r
areas. For instance, a visit by a Korean group etirement.html
arranged last year was facilitated by PRA with the
concerned buyers and service providers.
7. Experience- Thailand has integrated medical tourism, spa and
based advantages retirement villages infrastructure
of incumbents?
8. Network Thailand maintains its existing market http://www.tatnew
externalities: share by working with strategic partners. This s.org/tat_corporate/34
demand-side includes the conduct of viral marketing (word of 88.asp
advantages to mouth), relationship marketing, loyalty and reward
incumbents from campaigns to promote referrals and lead
large installed base? generation to encourage individuals who have
previously travelled to Thailand and repeat visitors
to recommend the destination to family and friends
9. Government There’s government protection of incumbents for In the Philippines,
protection of major global players like Thailand and Malaysia security is a major
incumbents? concern especially
with the recent
kidnapping of media
personalities by the
ABBU SAYYAF
10. Perception of Entrants should expect retaliation from incumbents Effective
entrants about because of competition for the global market share. strategies should be
expected retaliation mapped out by
of incumbents/ entrants such as the
reputations of Philippines (i.e PRA
incumbents for and new marketing
―toughness‖? agencies)
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 th e industry?
1. Availability of Agingtech.org
close substitutes? Aging service technology or aging in place
2. Price-value
characteristics of Very expensive
substitutes?
3. Price-elasticity Telemedicine is very expensive
of industry demand?
4. Availability of
close complements?
Close complements are services related to
retirement such as healthcare for retirees (manage
care programs for old aged people)
5. Price-value Varies depending on service providers
characteristics of
complements?
FACTORS AFFECTING OR REFLECTING POWER OF INPUT SUPPLIERS
To what extent do individual suppliers have the ability to negotiate high input prices with typical firms in this industry?
To what extent do input prices deviate from those that would prevail in a perfectly competitive input market in which input suppliers act as price
takers?
1. Is supplier Supplier would include construction
industry more services for the construction of retirement villages.
concentrated than Supplier base for the construction sector in the
industry it sells to? Philippines is more concentrated than the targeted
retirement village sector.
For other services, there is a need for
integration like healthcare and lifestyle and other
services.
2. Do firms in For construction services related to Type of housing for
industry purchase housing/accommodation for retirees, the industry target clients need
relatively small purchase is low compared to the construction improvement in terms
volumes relative to sector’s other clients. Real estate such as of offers other than
other customers of condominiums are very rampant in key cities condominium type of
supplier? Is typical units.
firms’ purchase
volume small
relative to sales of
typical supplier?
3. Few substitutes’ For healthcare services for retirees, the substitutes
of suppliers’ inputs? are traditional and alternative medicine
4. Do firms in Lease type of investment for retirement villages for
industry make the meantime
relationship-specific
investments to
support transactions
with specific
suppliers?
5. Do suppliers Developers of retirement villages may switch to
pose credible threat modern real estate housing in key cities
of forward
integration into the
product market?
6. Are suppliers Suppliers in the retirement villages are
able to price- those, which provide housing/accommodation,
discriminate among lifestyle, and healthcare services. These include
prospective developers of retirement villages and providers of
customers retirement -related business activities. Suppliers of
according to such services are able to price-discriminate among
ability/willingness to prospective customers according to said
pay for input? customers’ ability/willingness to pay for said inputs
because per cursory look at some initial information
gathered on pricing for accommodation and other
service packages in retirement villages, suppliers
have a set price scheme for foreign retirees /tourist
clients which is of course higher than the price
FACTORS AFFECTING OR REFLECTING POWER OF BUYERS
To what extent do individual buyers have the ability to negotiate low purchase prices with typical firms in this industry?
To what extent do purchase prices differ from those that would prevail in a market with a large number of fragmented buyers a ct as price
takers?
1. Is buyers’ industry No. Degree of buyers’ concentration vis-à-vis the industry it
more concentrated than purchases from has to be based on a more thorough study.
industry it purchases No concrete basis yet for making a substantive conclusion.
from? The only concentration that could possibly be identified for
the meantime is the OFW clientele that could be tapped as
possible clients of the Philippine retirement industry in the
future.
2. Do buyers purchase The Koreans have shown keen interest in purchasing http://www.news.ops.gov.ph/archives2007/apr28.
in large volumes? Does a retirement packages such as time sharing schemes in the htm
buyer’s purchase volume Philippines’ prime retirement villages (such as Subic &
represent large fraction of Nasugbu’s Imperial Silver Town Retirement Village, which
typical seller’s sales has a total land area of 35,100sq.m., features retirement
revenue? 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.)
http://www.philippineretirement.org/clients/philippi
According to a press release quoted in the Manila Times, neretirement/March2007.pdf
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.
Southeast Asia also attracts students who
cannot afford the customary private tuition which
supplements school lessons in Korea, or
international schools in Western countries.
The education ministry said 4,011 Korean
primary to high-school students headed to
Southeast Asia in 2005 compared to 712 in 2001.
Malaysia—with moderate prices and national
fluency in English—receives about half of all
Korean students in Southeast Asia, said Kim
Young Jun, who arranges educational opportunities
in Malaysia, Singapore and the Philippines.
―Malaysia is more expensive than the Philippines
but parents prefer the Islamic country which offers
relatively good education programs,‖ Kim said.
Many students who choose to go abroad
stay alone or with their mothers while fathers
generally remain in Korea to work and support
them, putting strains on families. To avoid the
stresses of separation, Peter Jang, 42, decided to
immigrate to the Philippines with his wife and two
children in 2004. ―In South Korea, I was in a difficult
situation mainly because of high education
expenses. Now I and my kids feel relaxed,‖ he said.
He lives in Antipolo City, earning about 2 million
won a month by arranging golf tours for Koreans.
Despite the warm winters and leisurely lifestyle,
some emigrants come back after failing to
overcome loneliness and language barriers. ―For
retirees, living abroad is not a recommended life.
They cannot spend their remaining years only
playing golf,‖ said Kim Sun Kyung of the Korean
Association of Retired People.
3. Can buyers find Alternative or traditional medicine can be a
substitutes for substitute
industry’s product?
4. Do firms in Yes. Hospitals may establish relationships with
industry make health management organizations or doctor’s
relationship-specific associations abroad
investments to
support transactions
with specific
buyers?
5. Is price Low in the short term
elasticity of demand
of buyer’s product
high or low?
6. Do buyers pose No
credible threat of
backward
integration?
7. Does product Yes
represent significant
fraction of cost in
buyer’s business?
8. Are prices in
the market
negotiated between
buyers and sellers
on each individual
transaction or do
sellers post a ―take-
it-or-leave it‖ price
that applies to all
transactions?
Strengthening Competitor Analysis Training
Workshop Template 2
Sector: RETIREMENT SECTOR
Within the context of the Porter Five Forces Framework, complete the matrix below:
What intelligence are needed by your Who holds these Who should take the lead What are your recommended policies/strategies for
sector which are not available from your intelligence (Sources)? in collecting these strengthening competitive intelligence?
present sources? intelligence such as
NGAs, industry
associations, etc. (include
non-traditional sources
e.g. trade attaches,
OFWs, Filipino Migrants)?
1. At the macro level, in-depth intelligence Concerned government Ideally, it should be the There has got to be unity of command to synchronize well-
on the best practices adopted by agencies and private sector competent and adequately- thought-out business intelligence gathering and processing as
perceived and actual competing countries service funded private sector well as its practicable utilization and to avoid cross purposes.
for the PRA-identified and/or the right providers/players/stakehold organization that should This can be achieved through appropriate and pragmatic
target market. Similarly, at the micro ers involved in the take the lead with the enabling instru
level, in-depth intelligence on the best respective retirement strong and unequivocal
practices adopted industry in those perceived support from the directly-
and actual competing involved and vitally-
countries and business concerned government
firms for the PRA-identified agencies and
and/or the right target mark instrumentalities.
OFW associations abroad PRA, PRI, Trade Attaches Tap the support of OFW associations (both local and
OFW market info (i.e. Retirees database) international)
2. International linkages International associations Foreign Attaches (DTI, Elicit the support of all our foreign attaches(i.e. attaches of DTI,
DFA, DOT) DFA & DOT's tourist attaches
3. Pricing scheme of our competitors Firm level info(from PRA, PRI, ALL Attaches Include this among the strategic imperatives in the proposed
brochures or websites) 2008-2010 PEDP
4. Tax Incentives offered by our competitors Investment bureaus of Trade Attaches Encourage Business Support Organizations to make this part
identified competitors of their regular work program
5. Comparative advantages of competitors Counterpart Industry PRA, Trade Attaches Create a systematic way of collecting and storing information
associations (competitors) secured (both online & offline)
6. Industry Roadmaps of Competitors Counterpart Industry PRA, Trade Attaches
associations & BSO*
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
Convergence for Competitiveness
Dr. Federico M. Macaranas
Identified the different milestones that serve as the push factor for
competitive intelligence such as the:
1. ASEAN Integration by 2015 (FTAs and RTAs by 2013)
2. Upper 3rd in Competitiveness Indices by 2010
3. PEDP (latest) commitments by 2010
4. National S&T Targets by 2010
5. SME Development Plan by 2010
6. Philippine Services Roadmap
Convergence for Competitiveness
Dr. Federico M. Macaranas
Determine systematic tracking of competitors in select countries
though Business Intelligence
Porter
INDUSTRY
STRATEGY
INPUTS
NCC DEMAND
Business Intelligence:
SUPPLIERS
Cost Structure
4 Inputs
-labor
•HR
•Management
-electricity + Coopetition
-transportation, etc.
•Energy
•Infrastructure +Technology
& Innovation
Leveling Expectations
Dr. Federico Macaranas
Self
• More learning • To find new market
techniques on and suppliers
information
gathering & sharing.
• Deeper awareness & • To apply Business
appreciation of Intelligence.
Business Intelligence
Sector
• More ethical • For the government units
approach for to be equipped to better
government & cascade information to
private sector in clients.
gathering &
sharing of • For sector to effectively
information. tap Business Intelligence
• To use Business as a tool for increasing/
Intelligence as a maintaining market
guide for product share and tapping new
development/inno markets
vation.
• Thru updated/ • To help all sectors
relevant/ dynamic become globally
Business competitive
Intelligence.
Philippines
• To relate macro-economic
information of competitor
• Improve Business
countries to adjust
Intelligence for Philippine prices
PhilExporters.
• Increased competitiveness
of the Philippines year
after year.
• For government units to
have unified Business
Intelligence efforts
• Make us a of Policy
• To create national Business Intelligence as a
awareness on the value tool for Competitiveness
of Competitor (Infrastructure/
Intelligence Resources)
Business Intelligence Practices in the
Philippines
Mr. 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 company’s/country’s 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
Strengthening Competitor Analysis: Practical
Applications
Mr. 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
Towards a First World Social Brain
Mr. A Francisco Mier
• Defined “Social Brain” as a network of high powered think tanks and
R&D 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.
• R&D 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
E. Workshop Output:
Home-Style Furniture
Threats to Profit
Force Current Future
Internal Rivalry High High
Entry High High and increasing
Substitutes and Low Low but increasing
Complements
Supplier Power Medium Medium and increasing
Buyer Power High High
E. Workshop Output:
Apparel
Threats to Profit
Force Current Future
Internal Rivalry High High and increasing
Entry High High
Substitutes and Low Low
Complements
Supplier Power Medium Medium and increasing
Buyer Power Medium High
E. Workshop Output:
Food
Threats to Profit
Force Current Future
Internal Rivalry Low Medium and increasing
Entry Medium Medium and increasing
Substitutes and High High and increasing
Complements
Supplier Power Low Medium to high
Buyer Power High High
E. Workshop Output:
Health & Wellness - Retirement
Threats to Profits
Force Current Future
Internal Rivalry Medium High
Entry Low Medium
Substitutes and Low Medium
complements
Supplier Power Medium High
Buyer Power Medium High
E. Workshop Output:
Observations and Findings
• Lack of appreciation by the participants as manifested by the
incomplete and few submission of the Porter’s Five Forces Analysis.
Reasons given were:
1) Exercise is time consuming;
2) Cannot find information on the internet;
3) Not familiar with Porter’s 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
Porter’s 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.
F. Synthesis of Implementation
Strategy Papers
1. Continuous capability building of government and industry
practitioners on competitor analysis and business intelligence
o 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
o 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.
2. Outsourcing of formulation of industry analysis including business
intelligence plans
o Export Development Council and DTI should take the lead in outsourcing the
formulation of industry analysis and business intelligence
3. Increasing access to global and local researches and industry
databases
o The Department of Science and Technology (DOST) and the Department of Health
(DOH) should provide assistance
o For Food Industry, public (DA/DTI/DFA/ PCARRD - Mango Information Network
(MIN) ) and private agencies (e.g. PhilExport, Philfoodex,)
4. Setting up f intelligence gathering activities
o Kapihan is recommended for all critical sectors. Industry Associations, DTI and EDC
should take the lead in organizing the said forum within this year.
G. Synthesis of Policy Reform Papers
1. Patenting Filipino products (e.g. hilot, apparel and furniture designs,
mango (brand)
o Export Development Council should negotiate with the WTO in patenting the Pinoy Hilot
and other Pinoy products to signify PHillippne brand.
2. Taking advantage of ASEAN agreements and other bilateral
agreements to collect business intelligence on key industries
o DTI through EDC should take the lead
3. Industry Integrations (Supply Chain approach)
o public and private partnership to facilitate better competitive-cooperative relationship,
network protocols, and standardization (i.e. DTI –EDC and Industry players)
4. Educational Reforms and Technological Innovation
o The NCC should direct CHED and TESDA to work closely
o DOST and DA should be at the forefront in developing appropriate or alternative
technologies
o DTI and EDC should take the lead
o 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
o Design center of the Philippines
Mabuhay Competitive
Philippines!
copies available at http://www.policy.aim.edu/
