Communication and security systems

• Main Author: Gumiran, Gina Narcisa M.
• Format: text
• Language: English
• Published: Animo Repository 1999
• Subjects: Security systems > Philippines; Electronic industries > Philippines; Philips Communication and Security Systems
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3904
• Institution: De La Salle University

The organization Philips Communication and Security System (PCCS) designs, manufactures and markets a broad range of communication and security products and systems, CCTV (closed circuit TV) and BGM/PA (Background Music/Public Address) systems. PCCS started its operation in the Philippines only in the later part of 1997 and become a strategic business units of the Philips Philippines in 1998. In 1998, it achieved a market share of 9.6%. The major threat of PCCS is its total competition. These major players have been in the CSS market for more than 30 years. They are distributors of worldwide known CSS product and system brands such as TOA (conference system), Pelco (CCTV) and Panasonic (PA system). On the other hand, increase in new construction, renovation of existing structures as well as building and expansion of industrial sites presents a great opportunity for the whole CSS industry. The strength of PCSS that differentiates it from competition is that a) it carries its own complete line of BGM/PA system and products b) it has established worldwide leadership in conferencing system and c) it acquired BURLE products to complement its CCTV product line. In a nutshell, PCSS aims to become the leading local supplier of CSS products and systems as well as making it the customer's first choice. Financially, it aims to have a continued profitable growth of 10% annually in CCTV and security, 5% annually in communication, and a RONA (Return on Net Assets) of at least 30% annually. Achieving a RONA of 19% on its first year of operation is more than a positive sign that operating a standalone CSS business in the Philippine market is a good decision made by the Philipis CCS top management. Focus on clearer responsibilities, improving the channels of distribution and system of direct selling activities are the factors that must be given utmost consideration for PCSS to become the leading supplier of CSS systems and products. Expansion of local operation entails PCSS to improve on local technical expertise and maintenance of reasonable inventory to support the channel distributions operations. Also, PCSS must motivate and promote pro-active staff to enforce new CSS teams in order to support its overall operations. Finally, to achieve desired profitability, PCSS must continuously monitor a) price and margins in line with competitors and market demand b) stock levels and c) debtor's position.