Wespro (Asphalt) Philippines, Inc.

• Main Author: Laureola, Lorenz M.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2173
• Institution: De La Salle University

This paper aims to present a formal Corporate Strategy for WESPRO (Asphalt), Phils. The company has never had a formal corporate strategy nor has it had a conscious effort to develop one. Strategy in the company was more emerging than deliberate. Despite this, the company is performing at sustainable levels. Because of the changes in the Philippine environment, the company may be in desperate need of direction. Survivability of the company will soon become the big question. This paper hopes to counter these events of the future. After an elaborate analysis of the industry, environment, and company aspects, this paper proposes a generic strategy of overall cost leadership to compete with the competitive forces. This is because the whole analysis of the paper rests upon the premise that competition is the driving force in industries. The chosen generic industry-wide due to physical and technical constraints, it is best to focus on a particular geographic market using a combination of cost leadership and differentiation. More emphasis would be on cost leadership in its geographic market due to government comprising of around 80% of market composition. But since all of the competitors in WESPROs strategic group follow the same strategy, to be able to excel in this group WESCO must develop competitive advantages. When evaluating WESPROs competitive advantages, the value chain is used as basis for deriving sources of competitive advantage. WESPRO overall maintains eroding differentiation advantages better product quality, better service quality, and better networking and one cost advantage lowest priced. Because all these advantages are eroding fast, it is important to set the company in the direction of developing new advantages and ways to exploit opportunities, protect from threats, turn weaknesses into strengths, and optimize usage of strengths. This paper suggests that new competitive advantages be set via better customer satisfaction through scheduling and better pricing through discounts and rebates. Proposed corporate strategies include processes, expansion of services into related disciplines, backward integration trucking, expansion of company capability through equipment investment, and strategic alliances with concrete-mix firms and a reputable law firm. Through the implementation of these strategies, the company should be able to prepare itself for the coming events and bring the company closer to its vision by attaining the set objectives.