Corporate strategies of Apex Realty and Development Corporation

• Main Author: Marasigan, Winona F.
• Format: text
• Language: English
• Published: Animo Repository 1994
• Subjects: Corporate planning; Real estate development; Business
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/1602
• Institution: De La Salle University

APEX Realty Development Corporation is a construction company jointly owned by the four AFP financial institutions, namely, AFP Retirement and Separation Benefits System (AFPRSBS), AFP Mutual Benefits Association, Inc. (AFPMBAI), AFP Savings and Loan Association (AFPSLAI) and AFP General Insurance Corporation (AFP-GIC). The company was conceived to serve as the construction arm of these AFP financial institutions. As such, APEX over the years has undertaken several construction and realty development projects from low cost mass housing up to luxury townhouses and condominium projects. With its six (6) years in existence, APEX has to contend with the pressures arising from the intense forces of competition like the threat of potential entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products and rivalry among existing competitors. At the same time, APEX has embarked into several realty developments through joint venture with other business partners. Apparently, these projects did not sell as expected because for the lack of product-target market fit. This has brought losses to the company since these projects are mostly funded out of borrowed short term funds. The contracting capacity of APEX has weakened due to lack of working capital. The company became less competitive in its bid because it wanted to recover its losses in realty development through its construction business.