A corporate strategy for Wheelers Club International

• Main Author: Almario, Kristina A.
• Format: text
• Language: English
• Published: Animo Repository 2000
• Subjects: Automobile industry and trade > Philippines; Wheelers Club International
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/3916
• Institution: De La Salle University

The opening of Toyota Philippines, Inc. in 1988 revived the automobile industry in the country, transforming it from a seller's market to a buyer's market. Other car assemblers eventually followed suit and established its niche in the growing industry, rolling out more vehicles than what the city roads could take. This development also brought about the proliferation of automobile clubs in the country, more particularly in Metro Manila. For Wheelers Club International, it was an opportunity to take on aggressive marketing moves to increase its membership. And for the industry's pioneer, the Philippine Motor Association, it was a signal to further improve its services. It was relatively effortless to put up such an organization since it only entailed a low capital requirement. However, sustaining the operations of an automotive club was not easy as evidenced by the closure of the upstarts in the industry, even before the onset of the Asian crisis in 1997. Only three automotive clubs survived and presently these were WCI, PMA, and Rescue 365. It was not easy to compete in an industry where there is very little differentiation among the players. More so when it did not cost the customers to transfer from one club to another. The membership fees among these clubs had little disparity and their products or services were basically the same. The customer had also the option of just calling any of the motor shops scattered in the metropolis for whatever help he may need. WCI had been flinching as a result of the present industry scenario despite possessing a strong brand presence in the market and the biggest fleet of tow trucks in the industry. Memberships had dwindled down by almost 60% compared to its level of four years ago. Consequently, the revenues could no longer cover the expenses and the club had to rely heavily on debt to continue its operations. Therefore, in order to meet the expenses, WCI would have to implement some innovations in terms of its operations and services to the members. 1.) Opportunities: (a) High industry growth (b) Few players in the industry. 2.) Threats: (a) Low barriers to entry (b) low level of differentiation (c) Low need for membership in automotive clubs. 3.) Strengths: (a) Most number of damage-free tow trucks (b) Strong brand presence in the market (c) Adheres to MMDA requirements. 4.) Weaknesses: (a) No corporate vision set (b) High turnover of sales personnel (c) Inefficiency in operations management. 5.) Objectives: (a) To achieve an annual increase of 10% in sales for the next three years starting in 2000 (b) To attain a positive Return on Member's Equity by year 2002 (c) To achieve an annual increase of 10% in its membership volume for the next three years starting 2000. 6.) Strategies: (a) Develop more innovative products or services (b) Acquire new towing equipment (c) Increase membership base.