I.

Point of View

The group will be taking the point of view of the current Officer in Charge.

II. Case context

Fil General Blower Corporation, or FilGen, one of the pioneer fabricators of fans and

blowers in the Philippines, was founded in 1960 by Mr. Juan Gotauco, a mechanical engineering

graduate of the University of the Philippines. The company was established to engage primarily

in the fabrication, contracting, estimate, design, installation and servicing of parts, spare parts

and finished product for air conditioning and refrigeration.

Working on made to order products and often adhered to strict customer specifications,

the company in its early years, experienced a steady growth. However, bigger players in the

industry continued to strengthen their foothold, resulting to increase in their market shares.

One reason for this is that majority of the industry players provides standard products at low

prices. In able for these companies to obtain customers, they usually go through integrators

who coordinates and connects the customers to companies who will satisfy their needs. Known

industry names included are Concepcion-Carrier Air Conditioning Co., LG Electronics Philippines

Inc., and Hitachi Terminals Mechatronics Philippines Corp.

FilGen had only three departments: The Finance Department, the Production

Department, and the Engineering Department. Having only around 50 employees of which most

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were the relatives of the owners. The company was able to provide excellent quality products

and services to its customers. But rather than actively seeking out customers, FilGen, in its old

days was able to survive by simply waiting for customers to approach them due to its unique

selling proposition in the market. The company did not feel the need to establish a marketing or

sales force and assigned an officer in the finance department to take charge of minimal

marketing and sales work.

The company is having a difficulty in finding its place in the market since they are being

overtaken by their competitors. FilGen had been losing customers and was unable to gain new

ones.

III. Statement of the problem

The company experienced a steady decline in sales over the recent years, due to:

1. Loss of its founder and chairman

2. Higher cost of products compared to its competitors

IV. Framework Analysis

Swot analysis is a combination of external and internal analysis to know the strength, weakness,

opportunities and threats of the company. The use of this analysis is to show the factors within

the business. This framework shows how to identify the advantage and disadvantage of the

company.

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Porters 5 forces consist of those forces close to a company that affect its ability to serve its

customers and make a profit. The overall industry attractiveness does not imply that every firm

in the industry will return the same profitability.

V. Situational Analysis

SWOT

Strength

• All of its products were made to order.

• Offers designs and Installation

• Managed to provide excellent quality products and services to customers.

• One of the pioneers in the industry of supplier of fans and blowers.

Weakness

• Marketing proposition.

• Covered high cost for research, design & fabrication.

• Weak strategy (Marketing Strategy).

Opportunity

• Ties with known and class brands.

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 • Fil.gen acquired strong local client base in industrial and commercial corporations.

• Possible to enter venture that can be related to their product.

Threats

• Competitors strengthen their footholds.

• Increasing of market shares of the competitors

• Competitors now Provides innovative and more advanced product.

Porters 5 forces

Industry rivalry- HIGH

There are Competitors in the same industry that provide more advance and is well known

internationally.

Bargaining power of suppliers – HIGH

Filgen are main supplier of big blowers and fans of food and drugs manufacturing industry.

Bargaining power of buyers – HIGH

The way how FilGen gets customers is by waiting for them to approach first.

Threat of new entrants - LOW

Entrepreneurs will have a hard time to engage in this kind of business. It requires a huge capital,

research, development excessive cost on the operations and needs to comply to government

policy.

Threat of substitutes - HIGH

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Some competitors not only offer industrial fans but also provide products in related to Health,

Transportation, and Home appliances.

VI. Alternative Course of Action

In this case, due to expansive cost and declining of sales FilGen should find alternatives to

minimize the cost. Also, the entity should change the marketing strategy to attract clients or

possible customers. Therefore, FilGen should start approaching clients for update orders to stay

in the industry and innovate advertising. In this era, in order to continue the life of your

business it should adapt to all the possible changes in the industry. Lastly, FilGen must upgrade

their products especially their technologies to produce more quality blowers. To do all this

action the company should have a marketing department to manage how to increase their

sales.

VII. Recommendation

The best action that the company should take is to:

1.Establish a proper marketing strategy and have a marketing department- As the case stated,

FilGen was able to survive by waiting for customers to approach them rather than actively

seeking out customers way back in the old days. So, the company must build a proper strategy

to attract more customers rather than waiting for them to come. Also, FilGen must establish a

marketing department so that it focuses mainly on developing a strategy to gain more

customers.

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2.Adapt with the changes of the industry- Just like other companies, FilGen can also go to Large

scale operations, not just made to order products, to minimize the cost.

3. Change the organizational structure from one-person operation to functional organization.

4. Enter into a Venture with a Manufacturer of Air-conditioning units- FilGen Can also enter

into a joint-venture with other companies that are related to industrial fans and blowers to help

the business grow faster and increase its productivity to generate more profit.

VIII. External Sources

http://www.filgenblowers.com/

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