Activity 1

1. How did Ben Chan make a difference in clothing/apparel through Bench?

Ben Chan introduced many clothing/apparel design that are highly fashionable
and yet very affordable. Also Bench use different artists that are very known today to
endorse their product as a result, many clothing chain today changed the way of
advertising their products. Every time Bench has new product it became trendy not only
to our country but also to other parts of the country because they operate not only to our
country but also to other foreign countries like US, China, Saudi Arabia. Today also,
different designs of clothes are out in the market because many clothing store are in the
market like Penshoppe, Tribal etc. . Also Bench’s product is not only just for men but
also their products are also for ladies.

2. What makes Bench click?

Bench produce different clothing/apparel designs that are highly fashionable and
at the same time very affordable. Bench also uses a high quality material in their
products. Also Bench increased their market coverage in different countries around the
globe. They also use different models especially artists to make their product known to
the customers. Bench used different technological and social media like YouTube,
Facebook, and other different websites to advertise their products. So far, Bench has a
good reputation, there are no legal issues about them. Lastly, their products are not just
for men but also for women, they are not also just selling clothes, but also they sell bag,
perfumes, etc.

3. In your own analysis, how has Ben Chan scanned the environment where Bench
operates?

Bench chooses countries that have a few competitors, unlike with the other
countries that have many clothing stores. Also they assess the demand for the clothing
in that country like the United States we all know that people there are very fashionable,
thus it is very good to invest in that country . They also consider the present economic
status of that country; they assess the capacity of the customers to buy their products.
They consider also the taxation policies; the government’s and rules regulation as we all
know, these countries paid low taxes for example Saudi Arabia. They also assess the
number of their customers and the price sensitivity.
Activity 3

The detergent Industry

Laundry detergent helps break up and remove dirt and stains in the laundry. Laundry
detergent has gradually replaced soap as the laundry helper of choice because of its
versatility. Laundry detergent can be effective in many types and temperatures of water.
Laundry detergent comes in both liquid and powder forms.

a) Power of Buyers

There are many different laundry detergents that are out in the market. The number of
customers of the laundry detergents is very high. Many households use laundry
detergent in washing their clothes. Also today, different detergents are out in the market
thus it is for a customer to substitute from one detergent to another. Also most of the
laundry detergents have little difference in the other brands.

b) Rivalry of Competitors

There are many competing brands of laundry detergents today in the industry. Laundry
detergent industry rivalry is high due to relatively intense competition and high exit cost.
Different products with different qualities are in the market that are cheaper, and at the
same time with the same quality with the expensive one. Here in the Philippines
different laundry detergents are in the market like Surf, Tide, Bonux and Ariel.

c) Power of Suppliers

The bargaining powers of the suppliers are very low because many of the companies
have many alternative suppliers. Thus, if the supplier increased their prices companies
can easily switched to another supplier.

d) Threat of Substitutes

Today, different detergents are out in the market and many products now are cheaper
than the others and yet have little difference, thus if one product is expensive, the
tendency of the customer is to switch with other products with the same quality but at
the same time cheaper.

e) Threat of New Entrants

Laundry Detergent Industry needs less amount of capital to enter in the market. New
competitors can easily enter into market because of laundry industries earn a very
attractive return on investment. Also anyone can enter into market because of
technological and social media anyone can post to Facebook, Twitter and other social
media sites to purchase their product, thus new entrants may be a threat to the Laundry
Detergent Industry.

The Shampoo Industry

Shampoo is a hair care product used for the removal of oils, dirt, skin particles,
dandruff, environmental pollutants and other contaminant particles that gradually build
up in hair. The goal is to remove the unwanted build-up without stripping out so much
sebum as to make hair unmanageable. Shampoo is generally made by combining a
surfactant, most often sodium lauryl sulfate and/or sodium laureth sulfate with a co-
surfactant, most often cocamidopropyl betaine in water to form a thick, viscous liquid.
Other essential ingredients include salt (sodium chloride), which is used to adjust the
viscosity, a preservative and fragrance.

a.) Power of Buyers

Shampoo is not considered as a basic needs but today people consider

shampoo as one of their necessities. It is always a part when doing groceries. The
number of customers of shampoo industries is very high. People use shampoo to
clean their hair and all levels of income earners, whether low, average or high level,
are using shampoos. It is very affordable since it can be bought through sachets,
bottles and the like. Buyers are a little sensitive when it comes to pricing because
there are many choices or brands of shampoos. There are little differences between
brands of shampoos. Mostly, they offer the same benefits of the product they
provide. Nowadays, there are no or maybe few substitutes to shampoo but people
may opt not to use one. Hence, the power of buyers may be a threat to shampoo
industries.

b.) Rivalry of Competitors

There are many competing brands in the shampoo industry. In the

Philippines, there are Palmolive, Clear, Sunsilk, Head & Shoulders, Vaseline, Dove,
etc. However, there’s little quality differences between those products. They often
provide the same benefits like smooth, dandruff-free hair, among others. When it
comes to pricing, there’s also little range of prices between different brands. On the
other hand, there’s greater customer loyalty given on a product. If a customer is
satisfied on the benefits that he/she derived from using a certain brand of shampoo,
then he/she will not easily switch to other brands. Hence, more advertising, much
lesser costs and satisfying benefits provided will give a certain brand of shampoo an
edge in the shampoo industry.

c.) Power of Suppliers

There is a large number of suppliers of the materials used in producing

shampoo. Some of the materials used are aloe vera, castor oil, olive oil, coconut oil,
etc. If one supplier increases the price of its product, the company can easily switch
to another supplier. There may also be different substitutes of those materials.
Hence, power of suppliers may not be a threat to shampoo industry. Moreover, the
uniqueness of the service provided by suppliers will give that supplier an advantage
against others.

d.) Threat of Substitutes

As stated, there are no or maybe few substitutes of shampoo. However,

customers may opt not to use shampoo. Hence, substitute may not be a threat for
shampoo industries.

e.) Threat of New Entrants

Entering in the shampoo industry requires low cost. Shampoo can be made
by everyone who desires it because of the different guidelines posted in internet,
magazines, etc. However, this requires special knowledge since different materials
will be used in making shampoo. There are many barriers to entry since there are a
lot of competing brands of shampoo. In addition, customers already have their own
choice of shampoo and loyalty has been built. Hence, new entrants may not be a
threat for shampoo industry.
Activity 4

Competitive Intelligence
First Asia Institute of Technology and Humanities (FAITH) is an institution of
higher learning and research located in Tanauan City, Batangas. It is envisioned to be a
premier educational organization in the high-growth region south of Metro Manila. It
aims to contribute to the humane and holistic development of the Filipino nation and the
individual by training and producing graduates who are technologically-skilled, well-
rounded and competent, as well as grounded on Christian humanistic values. It is
committed to the pursuit of a culture of academic excellence and social and
environmental awareness in the community it serves and to actively undertake research
in science, technology and the humanities.

First Asia Institute was founded in the year 2000. The school offers pre-
elementary, elementary, high school and college level education, offering different
courses in technology, humanities, and management. It also offers two-year certificate
programs under the First Asia Community College.

FAITH is continuously making and conducting ways on how to improve or

enhance its enrollment standing. Some of which are through advertisements,
scholarship grants, career talks, among others. The school continues to provide great
future for the students gaining the respect, trust and belief of the prospective ones. Most
students are also encouraged to enroll at this institution through the recent
achievements of the students of FAITH. It is an evidence of the good quality of
education that the school is providing.
 The figure below shows the enrollment standing of First Asia Institute of
Technology and Humanities for the past four years.

Enrollment Standing of FAITH

800
780
760
740
720
700
680
660
640
620
2010 2011 2012 2013

Figure 1.1

It can be seen from the figure above that the number of enrollees of FAITH had
increased by 4.5%, from 752 in the year 2010 to 786 enrollees in 2011. However, during
2012, it had declined by 14%, with 676 enrollees during the year. Fortunately, it rose
again in 2013 by 10% with 744 enrollees.

It can be inferred that the enrollment standing of FAITH is just fair. It’s not too
bad nor too good. However, this enrollment standing could still be improved by using
effective strategies which can be developed through competitive intelligence.

Competitive Intelligence is the act of gathering, analyzing, and distributing vast

information, coined as intelligence about anything that would help competing in the
market. The major areas of competitive intelligence are assessment of strategies,
perception of competitor strategies, effectiveness of current operations, capabilities of
competitors, and long-term market prospects. These areas operate in three
approaches: strategic, tactical, and counter intelligence. Strategic Intelligence is being
able to understand the competitor’s future prospects and goals. Tactical Intelligence is a
small-scale intelligence and operational in the short run. Counter Intelligence is knowing
how to defend company secrets.

Strategic Intelligence pertains to the following system of abilities that, according

to Michael Maccoby, characterize some of the most successful leaders in business and
government:

 Foresight. It is the ability to understand trends that present threats or

opportunities for an organization.
 Visioning. It is the ability to conceptualize an ideal future state based on foresight
and create a process to engage others to implement it.
 System thinking. It is the ability to perceive, synthesize, and integrate elements
that function as a whole to achieve a common purpose.
 Motivating. It is the ability to motivate different people to work together to
implement a vision.
 Partnering. It is the ability to develop strategic alliances with individuals, groups
and organizations.

Accordingly, the management of FAITH could develop the following strategies

using strategic intelligence:

 It should be able to see changes happening in the market in which it operates. It

should identify whether there are any threats or opportunities for the institution.
Identifying threats can be done by conducting research or surveys regarding for
example establishment of another institution near FAITH which also provides the
same program but with lesser cost. On the other hand, it should also determine
opportunities for the school. For example, the increasing demand for accountants
gives an opportunity for the school to gain more enrollees in the accountancy
department.
 Upon identifying threats and opportunities, it should conceptualize what can be
done to eliminate the threats or maximize opportunities. Threats can be
eliminated by for example, offering more than the other institution’s program.
 Opportunities can be maximized by strengthening the department which provides
the said opportunity for the institution.
 It should strengthen the system of the institution. It is the system of the institution
which makes it operationally effective and efficient.
 The employees are important for the company to achieve its objectives. It should
be able to motivate its people in order to bring them to the condition to meet the
goals of the institution.
 It should develop strategic alliances with individuals, groups, or organizations
which can also be a threat for the institution or which can provide more enrollees
for the school.

Tactical Intelligence includes the competitors’ terms of scale, pricing policies,

and plans. Information gathered is usually used by middle-level managers. The
management of First Asia Institute of Technology and Humanities should be aware of
the policies of its competitors. For example, if the competitor of FAITH provides the
same program with lesser cost, FAITH could offer the students additions to the old
program or discounts on tuition fees or other expenses. The school can also offer its
beautiful and comfortable facilities as against its competitors.

Counter Intelligence is the branch of an intelligence service charged with

keeping sensitive information from an enemy, deceiving that enemy, preventing
subversion and sabotage, and collecting political and military information. The
management of the school should secure the confidentiality of all the secret information
of the school. Through this, competitors could not easily determine the strengths and
weaknesses of FAITH.