A Strategic management paper for Monheim Distributors, Inc. (Exclusive GMA Distributor of S.C. Johnson & Son, Inc.)

• Main Author: Santos, Lacirre M.
• Format: text
• Language: English
• Published: Animo Repository 2004
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/4445
• Institution: De La Salle University

Monheim Distributors Inc. is a 100% Filipino-owned trading company engaged in the distribution of S.C. Johnson & Son, Inc. products in Greater Manila Area and the Province of Rizal. It was established in 1999. This strategic analysis is developed to address issues brought about by various developments in the distribution industry of consumer goods, and the consumer goods industry itself (which is the customer of MDI) a very competitive environment surrounds this industry, intense rivalry among present and prospective industry players, strong competitive pressures from substitute products, strong bargaining power of both the industrys buyers and suppliers. Besides the pressures surrounding the industry, MDI also has to direct its own internal problems to remain competitive in the market. The future of the consumer goods market is promising, the country still presents fantastic opportunities for the rest of the industry players. Growth in the market should continue to be impressive as the essential factors still exist. The expansion made by both local and international retailers in the country is an indication that the market is still expanding. In order for MDI to succeed and benefit from this industry, gaining competitive advantage will be an essential tool in crafting the companys future. A new corporate direction should likewise be set in order to align the company to the demands and requirement of its new supplier-principal. Companies compete directly with one another. Achieving competitive advantage is critical for any to survive the industry. The author recommends that MDI shall continue its basic strategy of broad differentiation, which is in alignment with the general corporate strategy of S.C. Johnson. This strategy should also be supported by strategies to overcome the fragmented industry of consumer goods. The author also suggests the re-strengthening of the various functional departments of the company. Sales department, being the most critical division, should be composed of highly competent and motivated individuals. Strategic sales planning and continuous skills enhancement will be enable the company to regularly achieve its sales, and subsequently, its overall organization objectives. MDIs information technology capabilities should also be enhanced, as fast-pace technological progress is taking place in the consumer goods market. Technological efficiency and advancement will be a source of differentiation strategy, and at the same time an onset of competitive advantage. The author highly believes that with a renewed vision and sound corporate strategies MDI will surely become one of the major players in the industry.