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Competitive Analysis

2010 Profile
Potential Competitors from Asian Region
Engr. Romeo G. Dela Cruz
Objective Target:
At the end of the discussion
analysis 90% of the audience will
be able to:
1.Understand the company’s
mission & vision and its core
value aspects.
2.Understand the implicational
threats of potential asian’s
competitive profile products.
3.Enhance the companies
strengths and performance by
product analysis and modulation.
4.Identify , modify and destroy
companies weaknesess.
SWOT (Marketing) Analysis for 2010
Target 1: Consistently
High Product Quality
Target 2: On time delivery service
Target 3: Core Values (Integrity and
Target 4: Teamwork
Target 5: A manufacturing company
 reliability of stocks between
Account Executives (Attitude)
Target 6: The
Manpower 
Marketing Team 
Target 7:
24-hrs On Call
• Logistics - cannot bring stocks to
market (Chlorine/HCI/NaOCI)
• Administration – voluminous paper
• Not user friendly computer system
• Account Executives not empowered to
decide on pricing
• Complacency of Depot Personnel (on
accuracy of delivery info)
• No executive secretary to follow-up
• Numerous Procedures
(repetitive) in marketing
• (SA-DO-DR-Invoice)
• NO fallback if depot / plant
equipment conked out
• Technical Service – to be
provided by a full time personnel
• To include chlorine sales brigade
(Head of ERT)
• Low Support / assistance on
account receivables and collection
by other teams, i.e., recording /
• High turnover rate of AEs/staff
(training, technical competence)

• Demand of Semicon / electronics for chemical (Daeduck)
• Implementation of Clean air / water act
• Green Procurement (MVC as practitioner)
• Biodiesel, New power plants, Petron expansion
• Mining, acidizing projects (scheduled 6 wells for 1st Quarter)
• Sun Power, Poly – chem, Expansion of MWSI, Hypo Bottling,
Bonus Chemsol
• Mindanao development-power, food & beverage
• HCI Export
• Hypo Repacking
• Stock shortage: Bad Weather, vessel breakdown,
scheduled repairs
• Support of trucks – availability during emergencies;
repeat of truckers’ strike
• Entry of Imported Chemicals (HCI, chlorine and flakes)
• Entry of Imported finished goods (Steel, soap, soy
• Low Quality Acid
• Price Competition from existing players
Products Current Potential
NaOH Marman, Inchem, CCM, Taiko
Legaspi, Himmel
HCI Marman, Inchem, Taiko
Emerald, CCM
C12 Marman, CCM, Taiko
Aditya Birla
Sodium Hypo Marman, Inchdm Green Cross
Potential Competitors from the
Asian Region
Company Probability
Formosa Plastic No
Shanghai Chlor- No
alkali Corporation

Aditya Birla Yes

AGC Chemicals No
Vinythai No
Siam PVS No
Taiko Marketing Yes
Competitor: Marman / Universal Aquarius /
Universal Harvester
What Drives the Competitor?
• Emotion
• Profit
Marman’s Future Goals
• Domination of the domestic chlor-
alkali market thru closure of MVC
and Inchem
• Earn above average returns similar
to its ammonia, aluminum sulfate
and/or sulfuric acid business when
competitors has closed.
Marman’s Assumptions
• Assumptions about itself:
• Wise and crafty
• Able to source competitively priced
• Assumptions about its competitor
• High Price
• High Overload
• Ethical
• Assumptions about the industry:
Marman’s Possible Next Move

• Construct a depot in Cagayan
de Oro
• Import HCI into Cebu
What the Marman’s Is Doing
and Can Do?
• Manufactures Aluminum Sulfate,
Potassium Sulfate, Hydrochloric
Acid and Sodium Hypochlorite
• Importer/Trader of Caustic Soda,
Chlorine, Hydrochloric Acid,
Sulfuric Acid, Potassium
Chloride, Ammonia
Marman’s Current Strategy
• Possibly engaging in smuggling and under
valuation methods during importation of
• Possibly engaging in unprofessional conduct
during deliveries to customers.
• Built relationships with BCS and TOCC
• Undercutting MVC prices in major customers
but does not seem to be interested in
acquiring smaller customers.
• Focused on price and not on quality or service
• Does not seem to quantify the risks it is
Marman’s Capabilities
•Can and willing to invest a lot of
capital in factories, depots and
distribution vehicles
•Can be very persuasive
•Can play a dirty game
•Quick and decisive
•Limited management capability
•Not professionally managed
How to Counter Marman?
• Lobby to mitigate smuggling
Neutralize their cash cows by providing
alternative sources of ammonia and
aluminum sulfate
Competitor: INCHEM
What Drives the Competitor?
• Profit
Future Goals
• Business Succession
• Exiting or Cashing in on the
Inchem’s Assumptions
Assumptions about itself:
•Trying to survive
Assumptions about its competitor (MVC):
•High price
•High overhead
Assumptions about the industry:
•Industry is concerned about the price only
ICHEM’s Possible Next
• Closure of fertilizer plant
• Sell business
What the INCHE Is Doing and Can Do?
• Manufactures Potassium Sulfate,
Hydrochloric Acid and Sodium
• Trader of Caustic Soda
INCHEM’s Current Strategy
• Profit maximization
• Maintain current customers
INCHEM’s Capabilities
•Production facilities
•Quick and decisive
•Succession plan problems
•Difficult Potassium Sulfate market
How to counter INCHEM?
• Sell HCI reliably
• Purchase Inchem
What Drives The CCM’s?
• Corporate directive/strategy to
become a regional chemical
• Revenues
• Profit (secondary)
CCM’s Future Goals
• Accelerate regional expansions of the
• Become an Asean supplier of chlor-alkali,
fertilizer and pharmaceuticals with a
manufacturing base in Malaysia
• Become an Asean trading house with offices
across the region.
CCM’s Assumptions
Assumptions about itself:
•Well Managed / Professional
•Need to expand as an offensive strategy due to the onset of
Assumptions about its competitor (MVC):
•Not Aggressive
Assumptions about the industry:
•Price sensitive
CCM’s Possible Next Moves
• Expand chlor-alkali trading business
selling NaOH, HCI and C12
• Expand other chemicals trading business
What the CCM’s Is Doing and Can Do?
• Manufactures chlor-alkali chemicals,
fertilizers, and pharmaceuticals in Malaysia
• Importer/Wholesaler of Chlorine and
Hydrochloric Acid and other chemicals in the
• Has set up a domestic office
CCM’s Current Strategy
• Building offices across Asean and
engaging in trading activities with
• Dumping HCI or chlorine as a way to
reduce excess material.
• Possibly willing to price low in order to
gain market share and meet their
corporate objectives
• Cash Cows: Operations in Malaysia.
Pharmaceuticals business
CCM’s Capabilities
•Professional management
•Technical expertise
•Financial capability
•Products such as pharmaceuticals could
provide the scale that would support its
overseas offices
•For chlor-alkali, production costs could be
similar to MVC.
•Overhead costs of operating a regional
businesses could be high.
How to counter CCM?
• Blocking ability to trade
liquid NaOH by blocking tank
• Gather market knowledge
and share them with friendly
partners that will turn
counter CCM.
• Export into their home