A Case Study on SPLASH Corporation: Its Growth from an SME into a Corporation

• Main Authors: Calalo, Joana Marie, Chua, Samantha Hannah H., Jocson, Carl D., Yap, Parick Ryan A.
• Format: text
• Language: English
• Published: Animo Repository 2012
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10992
• Institution: De La Salle University

With the existence of numerous Small Medium Enterprises (SMEs) in the Philippines, SMEs are challenged to enter the market, gain profit and succeed with their operations. This case study shows how Product Innovation, Research and Development, and Targeting Untapped Markets contribute to the growth and success of a Philippine SME. It discusses the strategies that SMEs can implemented based on the experiences of SPLASH Corporation, a company which was once an SME. Moreover, it shows the story of growth of the said company from its establishment as a PHP 12,000 backyard business in the 1980s into today's leading personal-care company. Through the financial documents gathered, the company proved to be successful as its total assets, net income, invested capital and market share continuously grew through the years. It has shown that from 1997 to 2011, SPLASH Corporation's total assets grew by 395%, while its net income grew 1,620% and invested capital grew by 29,177%. Moreover, SPLASH was able to increase market share by constantly introducing new innovative products to the market. Aside from the financial documents, the survey results also proved that the company's efforts in Product Innovation, Research and Development and Targeting Untapped Sectors were effective as they contributed to the company's success. In addition, by using different strategic matrices in measuring the company's strategic position against competitors, the researchers were able to determine that the company primarily utilized aggressive strategies such as diversification, integration and penetration strategies. With these results, SMEs are recommend to use strategies undertaken by SPLASH during its early years. Moreover, through this case study, the researchers are able to recommend SMEs to gear towards Product Innovation, Research and Development and Targeting Untapped Markets.