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Ayala Corporation SWOT Analysis

STRENGTHS
Real Estate and Hotels
Ayala Land saw a robust growth with revenues reaching P163 billion and a net income of P29
billion with a steady growth of 17%. Expansion in Visayas and Mindanao region contributed to its growth.
Seda Hotels with its full-year operations nationwide, has reached a P6.4 billion revenue signaling a strong
hold in the hotel industry.

Innovation and Venture Capitalism

Ayala Corp. continues to address innovation through constant lookout for trends and young
innovators in the Philippines and abroad. Among the recent investments are Entrego, MedGrocer, Zalora,
and Generika.

WEAKNESS
Tech Industry
Ayala’s investment in AC Industrials is becoming a pain in the past 6 years with its slow growth
and heavy losses. Integrated Micro-Electronics’ income fell 81% and one driver is the trade war between
China and the US.

OPPORTUNITIES
Business Acquisitions
There is more room for acquisitions for Ayala Corp. judging by its spending power and influence
in major industry sectors in the Philippines and abroad.

New Technologies
AC Industrials ventured into solar energy and this could be an opportunity to be a player in the electric-car
industry. The Philippines is slowing adapting to emission-free vehicles especially in the mass-
transportation segment.

THREATS
Disruptions
Jaime Augusto Zóbel de Ayala discussed disruptions in several industries and Ayala’s subsidiaries
are prone to it. Its fashion venture can be disrupted by Amazon if Bezos decides to expand along with its
logistics power that can also disrupt Ayala’s Entrego.

Real Estate
One of the large and growing players in the real estate industry is Cebu Landmasters Inc. (CLI).
CLI is currently expanding in a rapid rate in the Visayas (Cebu, Bohol, Negros, Leyte) and in Mindanao
(Cagayan de Oro and Davao). Ayala has a stake in these regions and can greatly affect their real estate
business.