Strategic management paper for Ever Corporation--United Neon

• Main Author: Uy, Kathryn Joy
• Format: text
• Language: English
• Published: Animo Repository 2003
• Subjects: Advertising; Outdoor > Philippines; Ever Corporation > United Neon
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3897
• Institution: De La Salle University

Ever Corporation-United Neon competes in the advertising medium industry. Advertising is a paid form of communicating a message by the use of various media. It is persuasive, informative and designed to influence purchasing behavior or though patterns. Advertising can take on many forms. Advertisements should reach out to its target market and the only way to do this is through the various advertising mediums. Outdoor advertising is one of these mediums. Changes in the macro-environment under the social, political, economic, technological, ecological and institutional segments create the threats or opportunities in the industry. A company must address these threats and opportunities by formulating strategies based on the strengths, weaknesses and the personal values of its key implementers to attain the corporate objectives based on the vision of man. The macro-environmental changes are the growth in population and the changing consumer preference, the slowdown in the world economy, new public policies affecting the industry and its strict implementation, technological advancement as can be seen in the usage of mobile phone, the usage of internet and e-commerce, globalization and the institutional changes where in new infrastructures are being built from roads to bridges to airports nationwide. The changes in the macro are analyzed to determine its effects on the task environment. The following results were arrived at: threat of entry- going up intensity of rivalry-going up threats of substitutes- going up bargaining power of suppliers- going up bargaining power of buyers- going up. The logical conclusions based from the effect of changes in the task environment will determine the opportunity or the threat in the industry. The threats identified are globalization, new technology and new laws. The opportunities identified are the growth in population, the increasing consumer preferences, increasing investments, new technology relevant to the industry and improvement in infrastructure. The value chain shows the primary activities performed by the company, as well as the support activities. This is a useful tool in determining the strengths and weaknesses of the company. The Company Strengths are Extensive Expertise in the Outdoor Advertising Business, Integrity in its business dealings, Financial Capacity. Weaknesses are No Human Resources Development System, No Management Information System Company Culture tolerates informality. Given the projected threats and opportunities based on the results of the analysis of the task environment, as a result of the changes in the macro environment, with the company's weaknesses and strengths, and using the strategic map to identify the generic strategy on which the strategic group belongs, Ever Corporation has adopted a cost leadership strategy. The specific strategies that Ever Corporation must undertake are the following : Strategy 1: Develop internal capabilities to establish a more stable competitive advantage. Strategy 2: Continue with Present Strategies in terms of having only one level product quality, degree of specialization offering two product lines to consumer product companies and continuous acquisition of prime sites nationwide.