a.

Bargaining power of buyers (High)

Ayala Corporation has a broad market base, including local and foreign individual
and institutional clients. Although the company does not have a customer that will
account for twenty percent (20%) of its revenues, the bargaining power of buyers is
high due to high competition from key players, low product differentiation, and easy
access to information. Because of the industry’s high bargaining power of buyers,
Ayala Corporation cannot quickly increase or lower its price.
b. Threat of substitute products or services (Low)
Ayala Corporation is a highly diversified holding company that mainly consists of
various companies offering different products and services necessary to an
individual. These services include electricity, telecommunication, water utilities, and
such. All of which are not easily substituted. Most buyers within the industry prefer to
invest and choose the advantages facilitated by the management company.
Furthermore, the products are considered to be beneficial to the buyers.
c. Bargaining power of suppliers (High)
Suppliers pose a significant threat to the Philippine Holding Business. Numerous
factors influence suppliers' bargaining power. According to the sample business plan
website, "While there are many available suppliers to choose from and reduce their
effective threat to operations, numerous inputs are required for the holding industry to
operate." Each input is critical to establishing and maintaining profitability in this
industry. Banks and other private equity firms influence this industry. It is about
whether or not it will finance the venture and how much money it will lend.
d. Rivalry among competing firms (Low)
Ayala Corporation has strong brand awareness and is established as a long-running
holding company in the Philippines. Thus, the company has already established trust
and loyalty with its clients and customers. With its diversified portfolio and
companies, it is believed that Ayala Corporation possesses a significant presence in
all sectors of the holding industry. Although Ayala Corporation has different
competitors in each of its main business lines.
e. Relative power of unions, governments, special interest groups, etc. (High)
Employees are reminded of their responsibilities to refrain from aggressive,
threatening, or abusive behavior, and managers are trained on how to combat such
behavior while also recognizing and dealing with cases of harassment. All allegations
of workplace harassment must be investigated per our Speak Up policy, and all
necessary preventive and disciplinary measures, including reporting criminal
behavior to the appropriate authorities, must be implemented.