Republic of the Philippines

SORSOGON STATE UNIVERSITY

College of Business and Management
Sorsogon City

CBMEC 2 – STRATEGIC MANAGEMENT

Second Semester, 2023-2024

CASE STUDY OF RUSI RAM CYCLES HANDOUTS

JOAN A. DETERA
BS Entrepreneurship 3C Student

JAKIM TIMOTHY F. GOLIMLIM, MAM

Instructor
BACKGROUND
Vehicles are necessity nowadays as most people uses to travel daily from their
homes to their workplace, and motorcycles were the cheaper ones to afford
especially the Rusi Motorcycle. These motorbikes are China made and part build
here in our country. I myself is a Rusi motorbike owner as I used it every day and
helps me save time and energy as well as money than tedious commuting. My
motorbike is over 6 years old now and it is still in god condition and never fails
me in my daily transportation needs. For many Filipino’s and Rusi motorbike
owners, this motorcycle is a lifesaver. Some uses their bikes to make a living and
provide income for their families. Although, Rusi is much cheaper than any other
brands of motorcycle, the quality and reliability is quite convincing that makes this
brand famous from low income to middle class users. This brand offers a variety
of designs depending on the customers buying capacity and requirement as well.

COMPANY PROFILE
Don Ramas-Uypitching Sons Inc. (RUSI), began in the 1960s when they
invested as a shareholder of Honda Philippines Inc., giving them access to
become an exclusive dealer to sell Honda motorcycles in Dumaguete and the
province of Negros Oriental. The fast-growing business was overwhelming after
an outstanding marketing strategy of selling the motorcycle on account to
customers.
In 1983, after the assassination of Ninoy Aquino, the Philippine economy
generally collapsed. Honda became unhappy with the low sales, and cancelled
all their dealers’ exclusivity and protection agreements. Rusi then quickly reacted
and find other options to stay in the business, they opted to sell all Japanese
motorcycle brands. After a while, they discovered that the Japanese-branded
motorcycles was actually manufactured in China. RUSI management then
decided to transform the family motorcycle business by sourcing from China as
well, and marketing their own RUSI Ram Cycles, thus, competing as a major
motorcycle brand on a national level against the Japanese brands such as
Yamaha, Suzuki, Honda and others.
With full confidence on their product quality, RUSI extended the engine warranty
to 13 months, and offered a lifetime service on all its RUSI Ram Cycles. None of
the other major motorcycle brands were willing to match the offer. The rest, as
they say, is history. RUSI now operates nationwide with more than 6,000
employees in more than 800 locations. RUSI Ram Cycles is now a contender in
the motorcycle industry of the Philippines.

SWOT ANALYSIS FOR RUSI RAM CYCLES

STRENGTHS WEAKNESSES
Wide product range, Product durability
Low price products Advertising
Customer service

OPPORTUNITIES THREATS
Expansion Competition
Distribution Lack of advertisements
Services
STRATEGY CHALLENGES

RUSI doesn't have a standing authentic and long foundation in this bike business
sector. It is an exceptionally youthful brand that began in the Philippines itself
and
fundamentally serves the center just as the lower-working class Filipino
individuals.
As RUSI continued to sell the motorcycle models which some are clone copies of
branded motorcycles, they received lawsuits for patent infringement and
industrial designs.

“Manufacturers of motorcycle copies are prone to overlook quality control

measures since they simply import and assemble parts and accessories. They
have no research and development (R&D). The parts are manufactured using
materials of inferior quality, so the probability of an accident occurrence is pretty
high. On the other hand, Honda and other motorcycle manufacturers invest in
R&D to ensure that products exhibit optimum performance,” said the Honda
executive.

Rusi operations as well are still manual. They used typewriter to record all of files
which are Registration, Sales, DTR, Salary, Purchase, Unsold and receipt. The
record is compiled in a logbook. They used it in manual as they want to find
something that can be satisfied the employee or customer. Every day, they were
checking the records. Agents do not get his/her salary if the DTR haven’t passed
in every month.
If there is a client inquiring, a staff in RUSI is the one who will entertain all the
questions and concerns of the client. The procedure starts in the applications and
submission of requirements to reservation, this is where the client asked about
the motorcycle that he/she wants to reserved, the client will be back to pay the
down-payment if it is installment and full payment for cash. In installment process
the client will pay for the down payment and choose if it is 6 months, 1 or 2 years
of paying. When customer did not pay at the right time, Agent would go to the
place of the customer and will remind that if he/she will pay for full payment or
complete the payment otherwise agent will confiscate the motorcycle unit and will
return it to the company so customer have to pay full or complete the payment to
take the motorcycle back. All of this information is compiled in a logbook
including every motorcycle that were sold and motorcycles remained.
Customers complain about many Rusi shortcomings; the common problems are
generally revolving on: delayed service appointments and repairs, defective
motorcycle, defective battery, non-release of mortgage, problem on deposited
unit being sold, issues on payment scheme, defective unit, and credit
restructuring. Moreover, other problems like delayed registration and non-
issuance of plates.

RECOMMENDATIONS

1. Invest in own R & D

2. Create own designs
3. Improve the quality and durability
4. Upgrade office equipment
 5. Listen and consider customer feedbacks
6. Strengthen customer service

CONCLUSION
Rusi Ram Cycles having a big advantage with its product prices has big gap with
the prices of Honda, Yamaha and Suzuki but is closely same price with the
Motorstar and Mitsukoshi since they are all China products. In terms with the
lifespan of this motorcycle, we can say that it depends on the user on how they
take care especially performing the maintenance and engine check-ups.
Because no matter how good that motorcycle is, if the owner/user will not take
care of it, it will easily be damaged and cannot give its maximum service
capacity.

REFERENCES
1. https://www.studocu.com/ph/document/university-of-st-la-salle/
accountancy/final-a-case-study-of-rusi-company-reponte-rellon-solatorio/
46710553

2. https://pdfcoffee.com/finish-narrative-rusi-pdf-free.html

3. https://www.coursehero.com/file/138264146/rusi-and-productsdocx