Competitive strategies for the Fuji-Haya Electric Corporation of the Philippines

• Main Author: Tan, Edwin B.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Subjects: Business Administration, Management, and Operations
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/2300
• Institution: De La Salle University

Fuji-Haya Electric should adopt the over-all cost leadership strategy. The company must examine the factors influencing costs like economies of scale, learning, the pattern of capacity utilization, linkages, interrelationship, timing, discretionary policies and location. These cost drivers must be controlled better that its competitors. The company should make a vision, mission statement and a clear strategic objective that should be effectively communicative to all its employees as well as making it known to its customers. This would create a culture that will work towards the attainment of its goals. Fuji-Haya Electric should increase its market share 50% and reach a net profit margin of 4% by the year 2001 in the electrical distribution equipment segment. The company should increase its market share from a base of existing products and existing markets through market penetration. This strategy will enable the company to design a marketing plan that will increase the market share and become a dominant player in the industry. The penetration should be done in line with advertising and promotional activities, technical and management broadening, manufacturing capacity build-up, expansion and modernization of its plant. Fuji-Haya Electric should look for new users of electrical equipment to expand the total market of the electrical equipment industry. They should be focused on defending its current market share against Beta, Nema and Edison Electric. They should also be more aggressive in attacking these three competitors to expand the companys market share.