Philippine Long Distance Telephone Company and Sun Cellular

1. What are the factors that contributed to URC’ s success?

Some of the factors that contributed URC’s success are:

Being innovative and aggressive frontrunner in the snack food industry. Its products can be found in virtually every household across the country, with market shares indicating that one out of every two modern snack products enjoyed by Filipino consumers is a URC offering. The secret behind URC’s success is the EXCELLENT VALUE that its products provide consumers. URC products offer consumers world class quality at affordable prices. Using only state-of-the-art equipment and stringent manufacturing standards, the company is also well on its way to obtaining ISO 9002 Certification for all its plants.

2. Analyzed the growing market base in Asia. How did Gokongwei take advantage of it?

Gokongwei take advantage the growing market base in Asia by producing innovative products but at the same time cheaper than the other products in the market. Gokongwei also provide goods that basically needed by the consumer. As his early life as a teen, Gokongwei learned that basic need are the best product that the demand will never cease. Also he offered fresh products that the other company didn’t offer. With this strategy invading the growing Asia market is possible.

3. Based on Gokongwei words of wisdom, how can the Philippines compete globally?

“ I am 81 today. But I do not forget the little boy that I was in the palengke in Cebu. I still believe in family. I still want to make good. I still don’t mind going up against those older and better than me. I still believe hard work will not fail me. And I still believe in people willing to think the same way. Through the years, the market place has expanded: between cities, between countries, between continents. I want to urge you all here to think bigger. Why serve 86 million when you can sell to four billion Asians? And that’s just to start you off.

Because there is still the world beyond Asia. When you go back to your offices, think of ways to sell and market your products and services to the world. Create world-class brands. You can if you really tried. I did. As a boy, I sold peanuts from my backyard. Today, I sell snacks to the world. I want to see other Filipinos do the same.” Based on Gokongweis’ words of wisdom, to able for the Philippines to compete globally, we Filipino must not be afraid to take the challenge of competing against multinationals compny or bigger competitors. For us not to be aeaten by larger competitors we must make sure we came prepared with great products and great strategies. We ended up changing the rules of the game instead.

4. Are there hindrances for the Philippines inability to have it’s own global branch? Explain.

Yes, there’s always an opportunity everyday passes our lives but ignore them as we don’t like of doing it because of PRIDE and FEAR. it is always printed in our mind that every time we saw something different we always ignore them as it is not our line of profession or simply saying its against our pride or just fear of doing it. if only we have the same determination and willingness to reach our goal just like Sir Gokongwei, then we are far more successful than any other countries. i knew that this is a life changing story and i hope that we all use it. i myself has a lot to work out specially my ATTITUDE.

The attitude of wasting TIME. i have a lot of goals in life but did nothing to get them until time passes by and forgot them. if only i valued my time then i’m sure i would be now a somebody person. but its not yet late. starting immediately, ill make something different for my self. something that i can be proud of someday when my hair became grey… and has a story to tell to my grandchildren. ITS NEVER LATE TO BE A SUCCESSFUL PERSON, just work it out. at the end, it is only you who will reap them all.

Don’t mind about the failure, as they say it is always “trial and error”, and always say it to your self ” at least i tried”. but never stop from there. as from failure you will learn the best wisdom in life, and from wisdom can have the best weapon to fight the battle, and through your best weapon you will have a big chances to win. then you will have a story to tell… who knows you might will become part of the business history.

5. Identify Gokongwei’s entrepreneurship traits which made him successful.

Gokongwei’s entrepreneurship traits made him successful are:

Self-determination

This self-made entrepreneur is not afraid to become a second mover. He loves to offer an alternative from the number 1 company offering products and services like in telecommunications (SUN Cellular), real estate (Robinsons Land), and airline (Cebu Pacific). He doesn’t like mixing politics and business. He doesn’t like being very close to government. Because according to him, wealth that’s based purely on politics cannot be sustained. He thinks outside the envelope. Like Henry Sy Sr. and Andrew Tan, John Gokongwei Jr. thinks outside the envelope because he started his businesses from scratch. There’s no baggage and no tradition to follow.

6. Make a research on the acquisition of sun cellular by PLDT. Make your comments.

PLDT buys majority stake of Sun Cellular

The biggest IT story of the day is PLDT’s acquisition of Digitel which operates Sun Celluar, the 3rd largest telco player in the Philippines. PLDT, which owns Smart Comm., becomes a much bigger operator and strengthening it’s number 1 spot in the country. The Philippine Long Distance Telephone company announced today its acquisition of Digital Telecommunications Philippines, Inc. (Digitel) from JG Summit amounting to Php74.1 billion or 51.55% shares in exchange of new PLDT assets worth 2,500 per share. Digitel, which owns Sun Cellular, announced that under the new leadership the paired networks will continue to the expansion of broadband rollout and other next generation technologies in both fixed and wired services. PLDT says Sun Cellular will remain a separate entity and retain the brand.

Smart already surpassed 45 million subscribers in 2010 while Sun Cellular, which has over 16 million subs, was already inching closer to Globe Telecom (26.5 million). Smart’s rapid growth and expansion requires more wider frequency and that might have prompted the Sun Cellular buy-out. At the same time, Sun Cellular has become a large player in terms of post-paid subscribers (even the first one to reach 1 million). Meanwhile, Smart has only around 500k postpaid subscribers while Globe has around 900k. From having 3 large celco players, we now have just 2 — Smart at far #1 and Globe at a minority #2.

COMMENT:

This strategy that PLDT done is what we called Globalization, since the market for networks are now vast where there are various networks competing with each other,companies now have to buy another network. To maintain quality and competitive pricing, PLDT have redesigned their organizational structures and strategically buy the competing netwoork such as Sun cellular to lessen the competitors in the industry.