Strategic plan for Aboitiz Transport System

• Main Author: Paroquez, Maria Arlene D.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Subjects: Transportation > Philippines; Aboitiz Transport System
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3668
• Institution: De La Salle University

Potential changes in the macro-environment --- whether social, political, economic, technological, institutional and ecological --- will cause changes in the behavior of suppliers, buyers, substitutes, new entrants and competitors of any industry. These changes are the reason behind competitive dynamics that erode the company's competitive advantage over time. There is therefore a need to continually renew investments and formulate strategies that will further create new sources of advantage for the company. This paper presents potential changes in the macro-environment and how these changes affect the transportation industry in the future. Among these changes are innovations in digital technology, government plans and policies both in the country and in the region, and changes in energy supply and demand. It is concluded by the author that the growing economies in Asia and the recent and future developments in technology are major factors that will lead to potentially high increase in demand for the services of the company. Given this opportunity, the author will look into the internal environment of Aboitiz Transport System and determine whether or not the company has the resources and capabilities needed to implement strategies and take advantage of the opportunities. Data obtained by the author showed weaknesses in the financial condition of the company. This however can be addressed by creating financial strategies that will lead to the creation of necessary resources and the development of required capabilities. With the foreseen industry growth, backed by the proposed financial strategy to address current financial condition of the company, the author proposes that the company should strive to be Asia's technological leader in travel and logistics services in 2025. To achieve this vision, the company must effectively execute the following corporate strategies: 1.Widen geographical scope of the company by expanding to the Asian Region 2.Invest in cost-minimizing vessels, technologies and activities to attain cost leadership 3.Expand its specialization by introducing total business solution or one-stop-shop transportation service to individuals and businesses in the region In the latter part of this paper, the necessary changes to the other aspects of the organization as brought about by the change in strategy will be discussed in detail. The last portion will be devoted to identifying the eight tasks to be performed and the persons responsible so as to ensure effective implementation of the proposed strategies. A financial projection will then be presented to provide the reader an approximation of the potential profit the company will attain by successfully implementing the strategies.