A strategic management study of San Miguel Yamamura Fuso Molds Corporation

• Main Author: Libunao, Ronaldo S.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2176
• Institution: De La Salle University

This paper is about corporate strategy for San Miguel Yamamura Fuso Molds Corporation (SYFMC). The company is a US$6 million joint venture between San Miguel Corporation (60%), Yamamura Glass (20%) and Fuso Machine & Molds Manufacturing Co., Ltd. of Japan (20%). San Miguel claims that it is the most advanced glass container mould manufacturing facility in Asia, outside Japan. The company is in the liquid forming industry. Materials that undergo liquid state before being formed are glass supercooled liquid, plastic and metal. The threat of entry in this industry is low as well as the threat of substitutes. However, the intensity of competition is high. The bargaining power of buyer is low while the bargaining power of suppliers to this industry is high. The level of profitability in this industry therefore is determined by intensity of competition and bargaining power of suppliers. Competing firms in this industry are very dependent on technology as a source of competitive advantage. Economics of scale can be achieved through sharing in operations as a result of product diversification and vertical integration that require operation in successive stages of production. The recent economic slowdown in the region has caused corresponding slowdown in the demand for industry products except for molds for plastic containers.