ABM 11-P5 Striving for Dominance..

Striving for Dominance: Business Competition between Local Milk Tea Shops in Marulas,
Valenzuela City
Roni Angeline Cabangon123, Ronn Harvey Gayo123, Yzabella Marie Pineda123, Kristine Rivera123,
Sean Hailey Salazar123, Ashley Santos123, Francheska Sunguad123, Carlo Villarreal123, Ms. Ma.
Alea Reesa De Vera, LPT1234
1
Senior High School
2
Basic Education Department
3
Our Lady of Fatima University
4
Research Adviser
March 2020
Endorsement
This research paper entitled “Striving for Dominance: Business Competition between Local
Milk Tea Shops in Marulas, Valenzuela City” prepared by Yzabella Marie C. Pineda et al. of
BE-ABM 11Y2-P5 of Our Lady of Fatima University, in partial fulfillment of the requirements
for Senior High School has been examined and now recommended for Oral Examination.
This is to certify that Yzabella Marie C. Pineda et al. are ready for the Oral Examination.
Ms. Ma. Alea Reesa De Vera, LPT

Adviser
This is to certify that the research paper, “Striving for Dominance: Business Competition
between Local Milk Tea Shops in Marulas, Valenzuela City” prepared and submitted by
Yzabella Marie C. Pineda et al. of BE-ABM 11Y2-P5 is recommended for Oral Examination.
Mrs. Joyce Lopez-Burre, LPT Ms. Camille De Jesus, LPT

Panelist Panelist
Dr. Ernesto B. Guevarra, MD, MPH, MSTM

Chairman, Biology Department
Senior High School – Research Coordinator
OUR LADY OF FATIMA UNIVERSITY SENIOR HIGH SCHOOL

Certificate of Originality
We hereby declare that this research paper is our own work and that, to the best of our knowledge
and belief, it contains no material previously published or written by another person nor material
to which to a substantial extent has been accepted for award of any other degree or diploma of a
university or other institute of higher learning, except where due acknowledgement is made in text.
We also declare that the intellectual content of this research paper is the product of our work, even
though we may have received assistance from others on style, presentation and language
expression.
Yzabella Marie C. Pineda

Principal Investigator
Members:
Cabangon, Roni Angeline
Gayo, Ronn Harvey
Rivera, Kristine
Salazar, Sean Hailey
Santos, Ashley
Sunguad, Francheska Cimoun Louise
Villarreal, Carlo
Ms. Ma. Alea Reesa De Vera, LPT

Adviser
Date
March 2020

Table of Contents
Endorsement i
Certificate of Originality ii
Table of contents iii
Abstract 1
1.0 Introduction 2
1.1 Statement of the Problem 3
1.2 Significance of the Study 3
1.3 Scope and Limitation 4
1.4 Definition of Terms 4
2.0 Review Related Literature 4
2.1 Theoretical Framework 6
2.2 Research Paradigm 7
3.0 Research Methodology 8
3.1 Research Design 8
3.2 Research Locale 8
3.3 Population and Sampling 8
3.4 Research Ethics 9
3.5 Research Instruments 9
3.6 Data Collection 10
3.7 Data Analysis 11
4.0 Results 11
5.0 Discussion 19
6.0 Conclusion 20

7.0 Recommendation 20
Acknowledgement 22
Reference 23
List of Appendices
Appendix A 24
Informed Consent
Appendix B 25
Screening Test
Appendix C 26
Research Questionnaire
Appendix D 27
List of Tables
Appendix E 28
Curriculum Vitae

Striving for Dominance: Business Competition… 1
Abstract
In this study, the focus is on the understanding and analyzation of competition between
local milk tea shops. The researchers used a Phenomenological Research design and a Non
Probability-Purposive sampling technique. A screening tool was also used in finding qualified
respondents. The data collected through the one-on-one interview was the lived experiences of 5
local milk tea store owners regarding business competition. The results have shown that business
competition has helped owners to improve their product, promote it well and continue to create and
innovate ideas. Strategies such as location and product consistency were also beneficial for the
prosperity of the store. However, it is found that competition is not always a good thing. Some
owners lower the quality of the milk tea which leads to lower prices but since the demand is high,
still a lot of people would buy it. But in global competition it has influenced the local milk tea shops
in terms of following trends and catchy brand names. Furthermore, awareness when it comes to
business competition is important to dominate the market but never lose sight of what’s more
important, being a dedicated and passionate business owner.
Keywords: Business Competition, Local Milk Tea Shops, Strategies, Global Competition, Trends,
Quality

1.0 Introduction
The only constant thing in this world is change and with the advancements people have
achieved over the years even the simplest of things become extraordinary, fancy and delightful. For
example, a simple tea can become a whole lot more, add ice and sweeteners and it can be an iced
tea. It can even be used as an ingredient usually for desserts and pastries. Even adding just cream
to tea makes it delectable.
Milk Tea or otherwise known as bubble tea is a drink typically made from a combination
of milk and tea and topped with ‘pearls’ such as tapioca balls. It was first introduced in Taiwan in
the 1980s it has gone on to become a global phenomenon made popular by Internet foodies.
According to Grab’s data, bubble tea orders in the region had increased at a rate of 3,000 percent
in 2018. Due to increasing consumer demand, Grab Food now has close to 4,000 bubble tea outlets
in their network, which is a 200 percent growth in outlets for the region.
Grab’s data also found that Southeast Asians drink an average of four cups of bubble tea
per person per month. Thailand’s consumers take top spot for consuming six cups of bubble tea per
person per month, followed by the Philippines with an average of five cups. Malaysia, Singapore,
Vietnam and Indonesia consume three cups per person per month. (Hasnan, 2019)
Bubble tea drinks are designed to appeal to younger consumers as a way for brands to be
part of ‘viral food’ trends. ‘Trending” is a good marketing strategy. With that, many milk tea stores
begin to pop up almost everywhere trying to latch on to the popularity and trend of the milk tea
business. The growing bubble tea market has also made brands focus on unique concepts in terms
of toppings and flavor combinations to pique consumer interest and to stand out from the crowd.
Competition is an inevitable part of the business world, for businesses of any size. It is not a
necessary evil, but rather an important part of the business ecosystem. In fact, competition can be
an effective tool for growing and improving one’s own business. (McCormick, 2016)
However, in 2015 it was reported that two people from Sampaloc, Manila were killed from
milk tea poisoning. The couple apparently drank a milk tea mixed with a poisonous chemical, oxalic
acid. Nevertheless, people seem to have get over that issue as it is evidently seen that milk tea still
continues to trend.
Although tea comes with plenty of health benefits like reducing the risk of diseases such
as diabetes, arthritis and cancer. However, with excessive consumption of milk tea comes with its

respective health risks such as; obesity, blood pressure imbalance, pimples, even anxiety and
insomnia. (Raina, 2019)
In this study, an understanding and analysis on business competition based on the

perception and lived experience of a local milk tea owner is given focus as to identify and
distinguish how they get ahead from their competitors and how they thrive in business
competitions. This study can be beneficial for curious minds and aspiring entrepreneurs as it can
inform them of what skills and how to develop them help lead for their business to prosper.
1.1 Statement of the Problem
This research aims to understand and analyze business competition between local milk tea
shops. The following questions are sought to be answered by the researchers:
1. How do local milk tea shops compete with each other?
2. What makes a local milk tea shop thrive in spite of competitors?
3. What are the effects of local business competitors to local milk tea shop owners?
4. How does global competition affect the shops of local milk tea business owners?
1.2 Significance of the Study
The beverage industry is one of the largest growing industry right now. Milk tea
particularly stands out among the booming beverages nowadays. Therefore, with the increasing
demands of milk tea, shops began to open here and there boosting competition between shops. That
is why the researchers decided to conduct this research, for a better comprehension and in depth
analysis of the lived experience of local milk tea store owners amidst business competition. Thus,
the results of this study will be of great benefit to the following:
To Aspiring Entrepreneurs, this study can inform future entrepreneurs of the operations
and the how-to of keeping up and getting ahead of competitors and how competitions matter in the
milk tea market and an idea on how milk tea business stays relevant despite changes in trends
nowadays and with up and coming competitors.
To Future Researchers, this study can be of help to student researchers to be aware and
knowledgeable of the business competition in the milk tea industry. It would help them to have a
better analysis on the same topic and it can be a used as a future reference for more studies in the
future.

1.3 Scope and Limitation
This study about competition of milk tea shops aims to understand what should be the
things business owners have to prioritize and what are not in starting and managing out business
especially if they are near competitors. Every business minds should be creative on how they will
be accepted by their customers. Creative way of thinking might help them for the boom of their
business. The study will focus on how milk tea stores prosper in a competitive market.
This study has a limited access to other possible respondents as the study is bounded only
to the area of Marulas in Valenzuela City and due to that there might be insufficient data reference
for other areas with milk tea shops but the researchers will assure that it won't affect the study. The
findings will be reliable and validated despite of limitations.
1.4 Definition of Terms
The following are defined for a better understanding of this research:
• Dominance- power and influence over others.

• Goad- provoke or annoy (someone) so as to stimulate some action or reaction.
• Infer- deduce or conclude (information) from evidence and reasoning
• Liquidation- process of bringing a business to an end and distributing its assets to claimants
• Oxalic acid- a strong poisonous acid
• Query- ask a question about something, especially in order to express one's doubts about it
or to check its validity or accuracy.
• Tautology- a phrase or expression in which the same thing is said twice in different words.
• Thrive- to become very successful or very strong
2.0 Review of Related Literature
2.0.1 Abundance of Milk Tea Shops in Metro Manila
Adrian (2019) stated that, milk tea has been around for long but it wasn’t until last year
that it became popular. In metro manila milk tea shops have been around for long and is packed
with costumers at all hours. Metro manila has an abundant number of milk tea shops giving
Filipinos lots of choices which makes it a competitive market.

2.0.2 Relevance of Competition Policy to Small businesses
The lack of market competition hurts most businesses and all consumers. It limits access
to goods and services, keeps prices up and quality low, and stifles business opportunities. Large
corporations that serve very large markets are usually the target of competition authorities, but in
an economy where spatial/geographical characteristics can effectively divide markets into
territories, smaller business can easily dominate and become anti-competitive. For example, poor
transportation (heavy traffic) and expensive and unreliable Internet service can substantially
increase search and switching costs for consumers, substantially limiting their options. Competition
policy can make markets more efficient, more productive, and more innovative. Its impact should
be on all firms, big and small. (Francisco, 2017)
2.0.3 Small Businesses against Larger Competitors
Competition is a natural part of life as a small business. But it can be daunting when you
go head to head with a much larger competitor. Big companies have so many advantages, after all.
They have recognizable brand, and they can easily outspend you on marketing and advertising to
keep that advantage. They can use economies of scale to undercut you on pricing, they can use their
resources to buy bigger, better stores or fancier equipment, and much more. (Blackman, 2016)
2.0.4 Global Business Networks and the Competitiveness of SMEs
In today’s global economy new opportunities for growth and development are opening up
for businesses, particularly those of a limited size. Projecting one’s area of activity onto the global
markets was once seen as one of the many strategic options open to businesses, but today it has
become a necessity, a real “condition for survival”. In this regard, global networks have become
the system that most SMEs spontaneously choose to adopt in order to increase their competitiveness
in a global environment. These networks make it possible to overcome the limitations of their small
size, granting access, at a low cost, to the tangible and intangible resources all over the world that
can be taken advantage of thanks to the network. (Tresca, 2013)
2.0.5 Bubble Tea Marketing Analysis
According to Shchehula (2016), nowadays-Latvian market become more and more

attractive to investors and business related people because the market is becoming wider and
stronger. To match the competitive level of other countries all enterprises should analyze and follow
their own business plans. Marketing plan is a vital part of every company with a proper analysis or
marketing mix so it can provide success in any kind of enterprises.

2.0.6 Competitive Strategy and Business Environment
According to Shigang (2010) as an important participant in Chinese market, SMEs are

confronted with the tasks of keeping themselves competitive, which concern their survival and
future growth. To maintain and improve competitiveness, a theoretical framework is built up
through organizing the existing theories. The framework investigates competitive strategy and
business environment influencing Chinese SMEs’ performance. Based on data collected, this study
has confirmed the importance of competitive strategy to achieve their competitive advantage.
Moreover, there is a negative relationship between competitive pressure and SMEs’ performance.
2.0.7 Managerial Incentives and Product Market Competition
According to Schmidt (2006), it talks about that having an increase in competition maybe
has two effects on managerial goad and increase their probability of liquidation. Moreover, by that
it can make the impossible to possible. It can make it attractive to invoke high effort. In addition,
this relation is may not be monotonic. A simple example demonstrates that starting from a
monopoly managerial effort may it cause of additional competitors enter the market, but will
eventually decrease when competition becomes too intense.
2.1 Theoretical Framework
The General Theory of Competition: …Resource Advantage Theory
This theory convincingly demonstrates that competition is not about dividing up limited
resources but about creating more resources and thus competition is pro-society. (Hunt, 2000). This
book develops a new theory of competition. This theory – labeled "resource-advantage theory" –
The central concept in R-A Theory is that of “resources”, which again determine the competitive
advantage of firms. Competitive advantage is the result of a firm’s planned strategy. Many factors
are equally important in producing a position of success. The sum of all these forces results in
creating and sustaining a successful position, in other words, a competitive advantage. Successful
firms are successful because they have a resource advantage, which in turn cannot be defined in
any other way than as a quality that brings about success.
This theory is relative to the study in terms of its definition on business competition and
how competitive advantage matters in business. The general idea of this theory can be of help when
knowing how business owners/entrepreneurs perceive competition and how they will thrive against
competitors. Although it focused on the development of a new theory; the resource advantage
theory, the overall propositions of this theory aligns and is relevant to the research.

2.2 Research Paradigm
Business Competition between Local Milk Tea

Shops in Marulas, Valenzuela City
Affecting
Ways Reasons Effects Local Milk
for thriving
Tea Shops
Product Brand
Strategies Negative
Quality Name
Effects
Attracting
Compromising
Consumers Strategic Trends
quality for profit
Location
Promotion Customer
s Consistent Stealing
Competitive
Products Advantage
Positive
Social
Effect
Media
Differentiation
Gimmicks
Customer Service
& Satisfaction
LEGENDS:
Phenomenon Sub Categories
Main Categories Sub Topic

3.0 Methodology
3.1 Research Design
The researchers applied a Qualitative Approach. The word Qualitative implies an emphasis
on the qualities of entities and on processes and meanings that are not experimentally examined or
measured. (Denzin, Norman and Lincoln, 2005). In lieu of the approach taken, the research design
is particularly phenomenological. Phenomenological research studies in educational settings that
generally embodies lived experience, perception, and feelings of participants about a specific
phenomenon. (Yüksel, 2015)
This approach aided the researchers to acquire the data necessary based on the lived
experience of milk tea store owners in a business competition. The experiences of each respondent
may vary under the phenomena they’re in which is why phenomenology was the chosen design to
attain the researchers’ objectives.
3.2 Research Locale
The researchers conducted the study in Marulas, Valenzuela City. The researchers selected
this place because; it is accessible and convenient for the researchers’ especially in data gathering.
Based on the 2015 census, Marulas, Valenzuela City has a populace of 53, 978 making it the 2nd
most populated barangay in Valenzuela and with it being in an urban city many infrastructures and
businesses are evident therefore making the locale a suitable place for conducting the research.
3.3 Population and Sampling
The researchers used Non-Probability Sampling Design following a Purposive Sampling

Technique. As told by Bhat (2015), Non-Probability Sampling is a sampling technique in which
the researcher selects samples based on the subjective judgment of the researcher rather than
random selection. Furthermore, a purposive sample is a non-probability sample that is selected
based on characteristics of a population and the objective of the study. (Crossman, 2019)
The researchers chose Purposive Sampling because of the fact that it is useful in finding
respondents who are fitted to the set qualities the researchers are looking for in regards of being a
local milk tea store owner. There will be 5 respondents who can be eligible to participate in this
research. The respondents will be chosen based on the researchers’ given criteria. They must be (1)
a milk tea shop owner located at the research locale (2) store must only be of local origin.

3.4 Research Ethics
The confidentiality of information supplied by research subjects and the anonymity of

respondents must be respected. (Surmiak, 2018). The researchers commit themselves to keeping
every information confidential as to assure the respondent’s privacy will still be respected. The
researcher's assurance to the research subject will be the strictness of confidentiality according to
the sensitivity of the information and vulnerability of the respondent.
This study followed an APA citation format. APA Style provides clarity to papers on often
complex topics. It makes papers easier to read and understand. When sources are cited the same
way each time and the paper is written in a uniform format, it gives it better flow and helps keep
the focus on the content of the paper. (Knoll, 2018) with proper citation plagiarism is avoided and
respect for intellectual property is implemented.
3.5 Research Instruments
The researchers used various research instruments that will aid in the collection of data.
The purpose of research instrument is to define the researchers’ data that is collected from the
interview the researchers conducted. The following are the research instruments used by the
researchers.
3.5.1 Interview Questionnaire
A questionnaire is a research instrument consisting of a series of questions for the purpose

of gathering information from respondents. Questionnaires can be thought of as a kind of
written interview. They can be carried out face to face, by telephone, computer or post. (McLeod,
2018). The interview questionnaire will serve as a guide for when the one on one interview query
starts.
3.5.2 Screening Tool
Screening tool is the criteria that the researchers created in order to see who are qualified
to be participants for the study. As stated by David Travis (2008) participant screening is where
you sift through all the possible candidates to identify people who are truly suitable.
In this research, the criterion suggest that; the respondent should be a milk tea store owner
in the area of Marulas, Valenzuela City, the store must only be of local origin or locally franchised.
If the respondent failed to meet one the criteria then the respondent will not be eligible for interview.
In this case the researchers ensure that only qualified people will be interviewed.

3.5.3 Informed Consent
Informed consent is a voluntary agreement to participate in research. It is not merely a form

that is signed but is a process, in which the subject has an understanding of the research and its
risks. (Rose et al, 2017). The participants were given a waiver assessing the objectives of the study
and why they are participating.
3.5.4 Pen and Paper
Pen and paper is what the researchers used to list down important notes during the
interview. PAPI (Paper and pencil interviewing) is the most frequently used method for data
collecting. It represents a process of personal interviewing where the pollster holds a printed-out
questionnaire, reads the question to the respondent and fills the answers into the questionnaire.
(Collins, 2017). In addition, key words and distinct phrases will be taken down as a guideline for
their answers and ideas. Pen and paper is essential in conducting interviews as to have an outline
of the flow of the discussion.
3.5.5 Recorder
A voice recorder is used by the researchers to record and track every single detail with
reference to the information given by the participants. Also, according to Al- Yateem (2012),
the recording can be viewed or listened to repeatedly in case of doubt or during data analysis, and
it also provides a basis for reliability and validity.
3.6 Data Collection
The researchers followed these steps in their data gathering:
First, the researchers has prepared an interview questionnaire to serve as the guideline
questions to be asked when the interview is conducted.
Second, the researchers search for possible respondents in their specified locale through a
set of criteria that needs to be met by the respondents.
Third, the screening tool will then help the researchers to find deserving and qualified
participants for this research.
Fourth, a consent letter was to be given before conducting a formal interview and the
researchers will ask when they are free as to not conflict their prior schedules. An agreed
appointment needs to be made and the respondents should be willing to be interviewed

Fifth, before the start of the interview proper greetings should be exchanged first and then
the researchers will start asking questions. One of the researchers will ask questions and another
will be in charge of recording the interview.
Lastly, the sixth and the final process; the transcription of data, the researchers may go over
the recorded audio of the interview to recall exact and certain information given by the respondents.
The data collected will be sorted and organized for a constructive and thematic data analysis.
3.7 Data Analysis
Thematic analysis is the method used by the researchers when analyzing the collected data.
Thematic Analysis is a flexible data analysis plan that qualitative researchers use to generate themes
from interview data. This approach is flexible in that there is no specific research design associated
with thematic analysis; it can be utilized for case studies, phenomenology, generic qualitative, and
narrative inquiry to name a few. (Braun and Clarke, 2006)
The researchers will then verify their answers and infer themes based on the overall
acquired data, the inference should revolve on the context of business competition among local
milk tea stores, especially on how they thrive and prosper in the market. The respondent’s lived
experience will help support the basis for this study.
4.0 Results
Introduction
The following are the findings from the statements of the 5 participants. Their answers
were analyzed using thematic analysis so the researchers can extract themes, meanings and
concepts that summarized their different point of view concerning the research topic. The
experiences of local milk tea store owners about business competition will be examined and
evaluated to conclude results.
4.1 Ways on how local milk tea shops compete with each other
4.1.1 Product Quality
The main concept of product quality can be primarily described as the collection of features
and characteristics of a product that contribute to its ability to meet given requirements and satisfy

the customer's wants and needs in exchange for monetary considerations.

Those features of a saleable good, which determine its desirability, can be controlled by a
manufacturer to meet certain basic requirements. (Sharif, 2014)
When the researchers asked about how they compete with other milk tea shop, the
respondents answered “…we make sure yung mga timpla namin is merong may standard na hindi
nababago…” (… We make sure that our blend has a standard and it never changes...)-R3, “Nagco-
compete kami with our competitors through physical store and then yung price itself and then yung
quality…” (We compete with our competitors through physical store, the price and then the
quality…)- R1.
Based on the respondents’ answer, the product quality is a way for them to compete. The
shop who has a better quality product that satisfies customer needs tends to be successful and thus
sparking competition on whose milk tea is greater and better.
4.1.2 Attracting consumers
Part of the success of selling a good or service is knowing to whom it will appeal and who
will ultimately buy it. That's why businesses spend a lot of time and money to define and monitor
its target market. That's because all products and services are meant for every consumer, who are
generally cautious with their money. (Kenton, 2019)
When the researchers asked about how they attract target consumers, the respondents
answered “…ang target consumers namin ay mga bata, kayong mga students, student price yung
milk tea namin…” (…Our target consumers are young, like you students, our milk tea has a student
price…)-R1, “…sa ayos kasi napaka halaga yung food presentation…” (…the preparation because
food presentation is very important…)-R2, “…marketing collaterals, advertisements, social media
yung iba kasi word of mouth nalang…” (…marketing collaterals, advertisements, social media and
sometimes word of mouth too…)-R4.
Based on the respondents’ answer, to attract customers and gain their attention, first, one
must know whom their target market are in order to know how to appeal to them. The appearance
and presentation of the product is also important to pique the interest of consumers and lastly
advertising the product well. When consumers have come to like the milk tea, word of mouth really
helps to have more customers.

4.1.3 Promotions
Your business is doomed if nobody knows it exists. Promotion, advertising and publicity
can all make potential customers aware of your brand in different ways. Ideally, you can combine
all three to let consumers know you're there and that you're better than the competition. (Sherman,
2019)
4.1.3.1 Social Media
By using social media, you diversify your marketing efforts in more than one way.
You don’t reach out to just one type of crowd but connect to a versatile customer base. Which is
crucial to for your brand to make a mark in your niche. (Smith, 2019)
When the researchers asked about the promotions they have, the respondent
answered “…Sa panahon ngayon social media ang gamit, so more on social media kami nagpo-
post, instagram, facebook. Pinipicturan namin yung mga tao dito na pumupunta…” (…nowadays,
social media is evident, so we are more on the use of it, that’a where we post, Instagram, Facebook.
We also take pictures of customers who has visited the store…) -R3.
According to the respondent’s answer, since the continuous improvement of

technology and its various advantages to the people especially those who are in the business. It
helps them to easily promote and make their brand known to the masses and not having too much
cost for advertising.
4.1.3.2 Gimmicks
A gimmick is a marketing strategy designed to attract customers. It is part

differentiation, part positioning and part creative advertising. A small business has to find ways to
differentiate its products. In a crowded marketplace, gimmicks can attract attention. From colorful
store displays to creative logos, advertising gimmicks can make the difference between failure and
survival. (Basu, 2015)
When the researchers asked about the kinds of deals their store has, the respondents
answered “…meron kami dati na kagaya sa starbucks yung stamp…” (…we have in the past a
stamp like the one used in Starbucks…) -R1, “…minsan buy 3 take 1 tapos depende kapag
December, meron kami din yung large magiging half price nalang siya or yung large price na siya
ng medium…” (… sometimes we have a buy 3 take 1 then sometimes in December we give half
price discount or a get a large drink for the price of a medium drink…) -R3, “…nung February,
yung treat your third wheel…” (… last February, we have a treat your third wheel…)-R4.

Based on the respondents’ answer, creating gimmicks is one way for the consumer
to be interested in their store and for them to come back. The unique way of being able to promote
and sell their product to consumers is important especially as a business competing with other local
milk tea shops.
4.2 Reasons that makes local milk tea shops thrive in spite of competitors
4.2.1 Strategies
A business strategy is a set of guiding principles that, when communicated and adopted in
the organization, generates a desired pattern of decision-making. A strategy is therefore about how
people throughout the organization should make decisions and allocate resources in order
accomplish key objectives. A good strategy provides a clear roadmap, consisting of a set of guiding
principles or rules, that defines the actions people in the business should take (and not take) and the
things they should prioritize (and not prioritize) to achieve desired goals. (Watkins, 2007)
4.2.1.1 Business location
The importance of location in business success cannot be understated. The location of a

business positions it not only to attract a customer base but also to attract the right sort of talent to
make the business a success. A business’s location also helps it create a brand and image, since
there are always parts of a city that carry a reputation, whether it is a reputation for simple living
or a reputation for luxurious extravagance. (Luthor, 2019)
When the researchers asked about the strategies they have, the respondent has answered,
“Una yung location namin is dikit ng hospital and school so medyo lamang kami dun kung mas
medyo malalayo yung competitors namin…” (Firstly, our location is beside the hospital and school
so that’s an advantage for us if some of our competitors are far…)- R3
The respondent’s strategy of putting up a business near consumers has helped his business
to prosper and he has the upper hand when students crave for milk tea they can just go their store
since it is nearby and there’s no hassle of going to a different place.
4.2.1.2 Consistent Products
Consistency is important to the overall success of every business. Providing consistent,

high quality products allows your customers to know exactly what to expect every time they
purchase your products. This increases trust in your brand and can have a significant impact on the
number of products you sell. People have extremely high expectations when they purchase a

product from a brand they know and trust. If the product they purchase does not meet these
expectations, that customer is likely to let others know. All it takes is one bad product to harm your
chance of success. (Cscheafer, 2018)
When the researchers asked about how they make sure customers come back, the
respondents answered, “Well by making sure that the product taste really good and that you’re
giving them 100% quality of the product that you serve…”-R5, “Maging consistent lang sa nauna
nilang natikman na lasa…” (Be consistent on the blend the customers are originally served)-R4,
“We make sure na masarap yung ino-offer namin and fresh and maintain yung lasa…” (We make
sure that our products are delicious and freshly made and maintaining the taste…)-R3
The respondents made sure to prioritize the consistency of the quality their products have.
The way it was prepared and served must be maintained since expectations from the customers
must be met and failing to do so could tarnish the reputation a local milk tea shop holds.
4.3 Effects of local business competitors to local milk tea shop owners
4.3.1 Negative Effects
Competition can be an amazing aspect of any business. It causes us to stay on our toes and
keep us improving in new, creative ways. It allows us to gauge the performance of our businesses,
transactions, and products. Yet it can, however, be a strong hindrance on our growth, creativity,
and market potential. The one sure thing you can get out of this: You’re always going to have
competition. (Zaylor, 2013)
4.3.1.1 Compromising quality for profit
Compromised quality means reduced conformance costs. The result would be an increase
in non-conformance costs. E.g., internal failure costs (more defects, re-work, and waste); external
failure costs (more complaints, after sales services, sales returns and decreased demand / sales).
(Raja, 2017)
When the researchers asked about the strategies they’ve noticed their competitors do, they
responded “More on sweetener lang…” (It’s more on sweeteners only…)- R4, “…dumami na yung
local milk tea shops na binababa yung price nila, in which, yung nagsu-suffer yung quality…” (…
many local milk tea shops lower the price of their lik tea in which the quality is suffering…)- R3
Based on the respondents’ answer, there are local milk tea stores that would set too low
price ranges in order to gain profit immediately but sometimes with low costs, the quality of the

milk tea is affected. They would resort to using artificial flavors and the overall blend would be
imbalanced.
4.3.1.2 Customer Stealing
Stealing customers is the art of convincing, enticing, or cajoling customers to buy same (or
similar) product or service from your business as opposed to the competition. The business world
is highly competitive, it’s very much dog-eat-dog, and for business to survive it must be able to
offer compelling propositions to customers, and sustain it over the long-term. (Pratt, 2018)
When the researchers asked how knowledge of their competitors affects the way they run
their shop, the respondent answered “…baka mas masarap sa amin, mas mura, yun yun lang naman
naapektuhan samin, pero sa awa ng lord ayun okay naman pero sobrang affected kami kumbaga
nahati kami, dati salo naming sila ngayon marami na silang pagpipilian.” (…maybe theirs is
tastier and cheaper, that is how it affects us, but thank the Lord, everything is good. However, it
also affected us because our customer base would be divided since there are other milk tea stores.)
Based on the respondent’s answer, another bad thing about competition is that there are
struggles in acquiring target consumers especially with competitors of the same product. The
tendency is that they try to poach customers from others, persuading them to buy at their milk tea
store.
4.3.2 Positive Effects
To some entrepreneurs, competition conveys thoughts of other businesses offering the

same products or services. To others, competition is when a similar business offers products or
services similar to theirs at lower rates and they’re both correct. Business competition makes for
better products or services, enhances creativity and enables businesses to carry out useful SWOT
analyses. (Richardson, 2018)
4.3.2.1 Differentiation
Once you have competition, the players try to differentiate themselves from each other.
This leads to better products being developed, faster product upgrades as well as
product innovation. Overall, it increases the market size considerably. (Bhasin, 2018)
When the researchers asked how business competitors affect their shop, the respondent
answered, “Sometimes they would be sending people who would be spies…simply because they
want to see what you are offering them and what’s your difference among them.”- R5, “…bawat

milk tea shop meron special tea, tulad kami, ang edge nalang namin, every month may nilalabas
kaming bago…” (…each milk tea shop has its own special tea, our edge is that we release
something new every month…)- R3.
Based on the participant’s response, though competition is unavoidable it can be a good

thing. It can be a way for them to prove to people that they have what it takes to be a great milk tea
shop. Also having differences can help them be distinguishable and it can lead to production of
better products.
4.3.2.2 Customer Service & Satisfaction
The customers would be happiest when they are buying from a segment where there is
competition. They are getting excellent service because if they are not served well, they will move
over to the competitor. They are getting upgraded products, they are getting differentiated products,
their social status is increasing, their requirements are getting fulfilled, and all this is happening at
an excellent price. (Bhasin, 2018)
When the researchers asked why do customers go back to them, the respondent answered,
“Pag handle ng customers, ayun at magandang service…pagiging hospitable, so yung pag we-
welcome, parang home niyo na rin dito.” (Handling customers well ang great customer
service…being hospitable and welcoming too so it feels like at home.)- R1.
Based on the respondent’s answer, owners should not only focus on their competitors but
most importantly to their customers who are factors in making a business success. It is better to
give the best customer service and accommodate to the needs of the customer.
4.4 Global competition affecting the shops of local milk tea store owners
4.4.1 Brand name
Your brand is the sum total of your customers’ perceptions, notions and experience. It is
the face, personality and the values espoused by your business – and everything in between. Beyond
that, your brand represents who you are, what you believe in and how you want to be perceived by
your audience. That is why branding is so important to an organization. (Sinha, 2018).
`When the researchers asked on how brand name affects the interest of consumers, the
respondents answered “…kahit hindi masarap, ang binibili mo yung pangalan nila…” (…even if
the product doesn’t taste good, the one you’re buying is their brand name…)- R2, “…make sure
that your brand name is catchy, its unique, if you have to stand out here in the market…”-R5.

Based on the respondents’ answers, when it comes to popularity and fame the international
brands mostly have the upper hand, making brand name matter even more. Which is why local milk
tea shops must come up with catchy and interesting brand names that will leave a mark on its
customers. However, sometimes people would only buy at international milk tea shops because it
is well known.
4.4.2 Trends
Keeping up with marketing trends can be a hard task. Almost every week there’s a new
app or tool that you absolutely must have to capture your audience’s attention. However, in order
to stay in-tune with the evolving marketplace and how your customers consume and react to the
content you’re producing, it’s essential that you keep your finger on the pulse of marketing trends.
Here’s why: It’s more cost-effective, It allows you to connect with your customers, it helps you
determine if you’re on the right track and it’s all about engagement. (Geyser, 2018)
When the researchers asked how they consider trends in global milk tea chains, the
respondents’ answered “…pinipilit naming sabayan yung itsura nila…” (… we insist on following
the designs and appearance of their product…)- R2, “…meron silang budget siguro isa yun sa mga
strategy nila na meron sila na goods na binebenta tulad ng mugs, baso. Yun okay yun, possible yun
na gawin naming yun later on…” (…they have a budget, that’s one of their strategies that they
have allocated money for selling goods like mugs, drinking glasses. That is effective and possible
that we will do later on…)- R3.
Based on the respondents’ answer, since milk tea is a global trend, international brands
have come up with new ideas to start new trends. For example, the cups they use, many local milk
tea shop try to resemble that trendy cup to attract consumers.
4.4.3 Competitive Advantage
A competitive advantage is the recognition that a company either delivers quality products
at a lower cost than the competition or offers support and services at a greater value than the
competition, according to the Quick MBA website. Establishing a competitive advantage takes
planning and coordination among your departments. The importance of a competitive advantage is
what makes it worth the investment of your organization's time and resources. (Root, 2017).
When the researchers asked about their competitive advantage against global competition,
the respondents’ answered, “Syempre yung advantage ko yung sarap ng product ko and the price,
hindi ako pumantay sa price nila which is nasa range 80php na cheapest nila, well for me, it’s only

65php for the cheapest. …” (My advantage is the taste and deliciousness of my product and the
price, which is unlike others their cheapest is at 80 php well for me it’s only 65php)- R5, “We make
sure na fresh yung gawa namin, every month may nilalabas kaming flavors hindi nagstuck lang…”
(We make sure our blend is always fresh, every month we have new flavors and we are not just
stuck to our original menu.)- R3
Based on the respondents’ answer, being a local store they have an advantage to lower their
prices but still able to give quality products similar to international milk teas. Also their menu can
be changed anytime and they can release a lot more products and they are not just stuck to what
they originally have.
5.0 Discussion
The first problem statement is about the ways on how local milk tea shops compete with
each other. The statements of the respondents further classified the answer to this question.
According to the respondents, they compete through the quality of their product since the one with
better quality and price represents a better image of the business, .They also compete in attracting
and acquiring target consumers through their promotions, which is mostly on social media and
through creative ideas and gimmicks.
The second problem statement is, what make a local milk tea shop thrive in spite of
competitors. The respondents, which according to them, discussed this, local milk tea thrives
because of their strategies such as putting up a business in a strategic location and having
consistency in the products sold.
The third problem statement is about the effects of local business competitors to local milk
tea shop owners. The positive effects are; differentiation, which helps them show and prove their
uniqueness to the consumers and with many different innovations, it can lead to the development
of better products. Another is customer service and satisfaction, with many competitors if
consumers are not satisfied and happy with other shops chances are they will be choosing their
shop. The negative effects are compromising quality for profit and customer stealing. The quality
of the product is sacrificed for the sake of earning profit since they know many people like milk
tea. They lower the price, which can affect the production cost resulting to a low quality product.
There is also customer stealing in which competitors try to acquire the customers others have
already acquired, convincing them to that theirs is better than the rest.

The fourth problem statement is, how global competition affects the shops of local milk
tea owners. It influence them by the global trends where local milk tea store owners get new ideas
for their store. In addition, brand names affect the interest of consumers since international brands
are well-known, local milk tea shop owners try to make their brand name catchy and appealing to
the consumers. However, there is a competitive advantage that local milk tea owners have over
global competitors which are quality products but have a low cost price, unlike the other global
milk tea shops the brand name that is known are selling over priced goods but has the same quality
of local milk tea shop products.
6.0 Conclusion
In conclusion, competition is to prove who has the best quality product and who has made
a better reputation in the market. Therefore, strategies that owners have come up with becomes
crucial to the success of their business. However, there are also downsides in business competition
against local milk tea shops, competitors attempt to compromise the quality for profit and some
result to stealing customers. On the other hand, global competition helped them to get new ideas
from trends initiated by international milk tea stores but unlike globally known milk tea shops who
are selling overpriced goods, some local milk tea stores have similar quality products but at a lower
price. Still, cherishing the business and especially the customers is more important to attain success
rather than focusing too much on competitors.
7.0 Recommendation
The researchers have given their time and effort in conducting this research. The involve
set of criteria given by the researchers of this study are based on the researchers own judgement.
Even though the researchers fulfilled the data collection through their criteria, there may be a more
accurate set of criteria that will provide much accurate collected data. The future researchers of this
topic should create an interesting questionnaire so that the respondents will be focused on it and
the researchers should avoid asking unnecessary questions to avoid wasting the time of the
respondents. However, follow-up questions should be asked when the respondents have not fully
answered the questions but it is up to the researchers to do so. The researchers could broaden the
aspects of this study and explore more information regarding business competition. The researchers
could also gather more respondents to acquire more concrete data. Most importantly, the

researchers should always act ethically in front of the respondents and should always consider
confidentiality especially about the personal information given by the respondents to respect their
privacy which is promised by the researchers. The researchers study should contain information
which have really occurred in real life. The future researchers and businessmen can make this
research as a future reference since this study aims to understand the concept of business
competition which is really occurring and evident especially in the world of business.

Acknowledgement
First, we would like to thank Ms. Ma. Alea Reesa De Vera, LPT our Practical Research 1
Adviser for allowing us to experience conducting a meaningful research study and guiding us
towards the success and completion of this research. We are grateful for this would not be possible
without the opportunity granted to us by the school, Our Lady of Fatima University in which it
helped us to be a critical thinker and be a responsible student researcher. Our gratitude also goes to
the respondents who are willing and kind enough to impart to us their opinions and views on our
topic. Lastly, we’d like to thank the Lord, Our God for giving us the wisdom, knowledge and
strength to persevere and make a research worthy of our sincerest effort.

References
Adrian, M. (2019) Milk Tea Mania: Your Guide to The Best Milk Teas In Metro Manila
Bhat, A. (2015) Non-Probability Sampling: Definition, Methods and Examples
Crossman, A. (2019) Understanding Purposive Sampling
Denzin, Norman and Lincoln (2005) Organizing Your Social Sciences Research Paper:
Qualitative Methods
Blackman, A. (2016) How Your Small Business Can Compete With a Larger Competitor
Francisco, J. (2017) Is Competition Policy Relevant To Small Business?
Hasnan, A. (2019) Southeast Asia’s Bubble Tea Craze
McCormick, K. (2016) Why Is It Important For Companies To Have Competitors?
Raina, K. (2019) 6 Scary Side Effects of Milk Tea You Wish You Knew Before
Shchehula, A. (2016) Bubble Tea Factory Marketing Mix Analysis Based On Primary Research
Shigang, Y. (2010) Competitive Strategy and Business Environment: The Case of Small
Enterprises in China
Schmidt, K. (2006) Managerial Incentives and Product Market Competition
Tresca, R. (2013) Global Business Networks and Competitiveness of SMEs
Yüksel, P. (2015) Theoretical Frameworks, Methods, and Procedures for Conducting

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Striving for Dominance: Business Competition between Local Milk Tea Shops in Marulas,

Ms. Ma. Alea Reesa De Vera, LPT

Mrs. Joyce Lopez-Burre, LPT Ms. Camille De Jesus, LPT

Dr. Ernesto B. Guevarra, MD, MPH, MSTM

OUR LADY OF FATIMA UNIVERSITY SENIOR HIGH SCHOOL

Yzabella Marie C. Pineda

Ms. Ma. Alea Reesa De Vera, LPT

OUR LADY OF FATIMA UNIVERSITY SENIOR HIGH SCHOOL

Table of contents iii

1.1 Statement of the Problem 3

1.2 Significance of the Study 3

1.3 Scope and Limitation 4

1.4 Definition of Terms 4

2.0 Review Related Literature 4

2.1 Theoretical Framework 6

2.2 Research Paradigm 7

3.0 Research Methodology 8

3.1 Research Design 8

3.2 Research Locale 8

3.3 Population and Sampling 8

3.4 Research Ethics 9

3.5 Research Instruments 9

3.6 Data Collection 10

3.7 Data Analysis 11

OUR LADY OF FATIMA UNIVERSITY SENIOR HIGH SCHOOL

OUR LADY OF FATIMA UNIVERSITY SENIOR HIGH SCHOOL

OUR LADY OF FATIMA UNIVERSITY SENIOR HIGH SCHOOL

OUR LADY OF FATIMA UNIVERSITY SENIOR HIGH SCHOOL

In this study, an understanding and analysis on business competition based on the

1.1 Statement of the Problem

1. How do local milk tea shops compete with each other?

2. What makes a local milk tea shop thrive in spite of competitors?

1.2 Significance of the Study

OUR LADY OF FATIMA UNIVERSITY SENIOR HIGH SCHOOL

1.3 Scope and Limitation

1.4 Definition of Terms

The following are defined for a better understanding of this research:

• Dominance- power and influence over others.

2.0 Review of Related Literature

2.0.1 Abundance of Milk Tea Shops in Metro Manila

OUR LADY OF FATIMA UNIVERSITY SENIOR HIGH SCHOOL

2.0.2 Relevance of Competition Policy to Small businesses

2.0.3 Small Businesses against Larger Competitors

2.0.4 Global Business Networks and the Competitiveness of SMEs

2.0.5 Bubble Tea Marketing Analysis

According to Shchehula (2016), nowadays-Latvian market become more and more

OUR LADY OF FATIMA UNIVERSITY SENIOR HIGH SCHOOL

2.0.6 Competitive Strategy and Business Environment

According to Shigang (2010) as an important participant in Chinese market, SMEs are

2.0.7 Managerial Incentives and Product Market Competition

2.1 Theoretical Framework

The General Theory of Competition: …Resource Advantage Theory

OUR LADY OF FATIMA UNIVERSITY SENIOR HIGH SCHOOL

2.2 Research Paradigm

Business Competition between Local Milk Tea

Phenomenon Sub Categories

Main Categories Sub Topic

OUR LADY OF FATIMA UNIVERSITY SENIOR HIGH SCHOOL

3.1 Research Design