Page 1

AIRFREIGHT 2100, INC.

MICRO HENRY J.

1


FROM SALES & MARKETING INTRODUCTION

MIDYEAR ANALYSIS Company SWOT Background 2


Company Background •1979: Mr. Alberto D. Lina , Mrs. Sylvia P. Lina, Mr. Glorioso R. Martinez, and Mr. Jose D. Lina came up with a plan of establishing a Customs Brokerage company. •1979: 21st of June Airfreight 2100, Inc. was established. •The company’s first accounts were Intel FROM SALES & MARKETING Philippines, Wilson Electronics and EPZA Bataan registered enterprise.

MIDYEAR SWOT ANALYSIS

•1985: Contract was awarded to be the authorized agent of Federal Express in the Philippines. 3


Company Background •Air21 is under the flagship of Airfreight 2100, Inc. •Exclusive licensee of Federal Express Corp. in the Philippines. •First Global Service Provider (GSP) in Asia Pacific to receive ISO 9002 certification from Lloyds Registrar’s Quality Assurance in London. FROM SALES & MARKETING •Awarded Most Outstanding Cargo Forwarder by the Consumers Union of the Philippines

MIDYEAR SWOT ANALYSIS

4


Company Background •Company is engaged in the Express Delivery Service. •1,600 employees •Delivers an average of 510,000 packages monthly. •Currently has three gateways, fourteen stations FROM SALES & MARKETING and forty nine affiliated agents around the Philippines.

MIDYEAR SWOT ANALYSIS

•Posted Php2.1 billion in revenue for 2008, 66% increase from its 2007 revenue of Php1.4 billion. 5


Domestic Presence

FROM SALES & MARKETING

MIDYEAR SWOT ANALYSIS

6


Airfreight 2100, Inc.’s Subsidiaries Serves as an additional drop off center for FedEx and Air21 packages. I.T. FROM SALES & MARKETING

MIDYEAR SWOT ANALYSIS Customer Service

7


Porter’s Five Forces •Threat of New Entrants: Medium •Capital requirement •Cost of switching •Bargaining Power of Buyers: High •Buyers are companies which compete by driving down prices and bargain for higher quality and more services. •Threat of Substitutes: Low •Courier no substitute service in other industries. FROM service SALES has & MARKETING

MIDYEAR SWOT ANALYSIS

•Bargaining Power of Suppliers: Medium •Alliances with air & shipping companies. •Rivalry among Competitors: High •Small number of competing firms

8


MIDYEAR SWOT ANALYSIS

Competitive Profile Matrix (CPM)

AIRFREIGHT 2100, INC. - COMPETITIVE PROFILE MATRIX Critical Success Factors

Air21

Weight

Rating

LBC

Score

Rating

Aboitiz 2Go Score

Rating

Score

Freight Charge

0.20

4

0.80

3

0.60

2

0.40

Transit Time

0.15

4

0.60

3

0.45

3

0.45

Network (Area Coverage)

0.10

3

0.30

3

0.30

3

0.30

Service Quality

0.20

4

0.80

3

0.60

3

0.60

Customer Loyalty

0.10

2

0.20

3

0.30

3

0.30

Financial Position

0.05

4

0.20

3

0.15

4

0.20

Global Presence

0.10

1

0.10

4

0.40

3

0.30

Market Share

0.10

4

0.40

3

0.30

2

0.20

TOTAL

1.00

FROM SALES & MARKETING

3.40

3.10

2.75 9


MIDYEAR SWOT ANALYSIS

External Factor Evaluation Matrix (EFE) AIRFREIGHT 2100, INC. - EFE MATRIX WEIGHT

RATING

WEIGHTE D SCORE

1. Increase in demand for logistics

0.15

4.00

0.60

2. Rise in online consumer services

0.05

4.00

0.20

3. Stability in world prices of crude oil

0.05

3.00

0.15

4. Increasing number of SME's

0.10

3.00

0.30

5. Continued growth of the service related sectors

0.15

4.00

0.60

6. Increasing number of OFW's

0.05

1.00

0.05

OPPORTUNITIES

THREATS

1. World Financial Meltdown

0.05

4.00

0.20

2. Rising unemployment rate

0.15

2.00

0.30

3. Cheaper freight charge of freight forwarders

0.05

3.00

0.15

4. Existing international network of competitor

0.10

1.00

0.10

5. Partnership between Negros Navigation & 2GO

0.10

2.00

0.20

TOTAL

FROM SALES & MARKETING

1.00

2.85 10


MIDYEAR SWOT ANALYSIS

Internal Factor Evaluation Matrix (IFE) AIRFREIGHT 2100, INC. - IFE MATRIX

WEIGH T 0.10

RATIN G 4.00

WEIGHTE D SCORE 0.40

2. Licensee of FedEx

0.10

4.00

0.40

3. Equipped with state of the art technology

0.15

4.00

0.60

4. Wide transportation network

0.10

3.00

0.30

5. Alliances with affiliates

0.05

4.00

0.20

6. Employee's expertise in supply chain management services enhanced by adequate technical trainings.

0.05

3.00

0.15

STRENGTHS 1. Brand Equity

WEAKNESSES

1. High sales team turnover

0.10

1.00

0.10

2. Poor Marketing in Vis-Min Area

0.05

2.00

0.10

3. No cold chain support

0.05

2.00

0.10

4. Lack of systems and control procedures in finance

0.10

1.00

0.10

5. Inconsistent service quality for agents outside NCR

0.05

2.00

0.10

2.00

0.20

6. Costly technology innovations TOTALS

FROM SALES & MARKETING

1.00

2.75 11


Strengths-Weaknesses-Opportunities-Threats Matrix  

MIDYEAR SWOT ANALYSIS

(SWOT)

Strengths

Weaknesses

1. Brand Equity

1. High sales team turnover

2. Licensee of FedEx

2. Poor marketing in Vis-Min Area

3. Equipped with state of the art technology

3. No cold chain support

4. Wide transportation network

4. Lack of systems and control procedures in finance

5. Alliances with affiliates

5. Inconsistent service quality for agents outside NCR

6. Employee's expertise in supply chain management services enhanced by adequate technical trainings.

6. Costly technology innovations

Opportunities

SO Strategies

WO Strategies

1. Demand for logistics

1. Provide service specific to a company's need. (S3,S4,01,02,04,05) PD

1. Pentrate Vis-Min thru marketing and modern technology. (W3, W4, 01,02,04,05) MP

2. Rise in online consumer services

2. Make use of vast networks and resources to support remittances from OFW's. (S1,S3,S4,S5,01,06) MD

2. Form a strategic partnership with IT companies that will lessen cost in innovating exisiting system. (W5, W6, W7, 01,02,04,05,06) BI

3. Stability in world proces of crude oil

3. Focus on the rise of online consumers with the use of the company's exisitng technology. (S1,S2,04,05) MP

3. Strict compliance in the continuity of service quality through agents. (W2,W5,W6,01,02,04,05) BI

4. Increasing number of SME's

4. Use employees expertise to saturate growing service industries. (S1,S2,S3,S4,S5,S6,03,04,05) MP

4. Revisit sales support; make use of the opportunities in emerging markets to retain sales professionals. (W1,W2,W5,O1,02,04,05) MP

5. Continued growth of the service related sectors

5. Enhance business model through niche marketing on SME's. (S1,S4,S5,S6,01,02,04,05,06) MP

5. Acquisition of cold chain support that will validate the company as total logistics provider. (W4,01,02,O4,05) RD

6. Increasing number of OFW's

Threats

ST Strategies

WT Strategies

1. World Financial Meltdown

1. Provide supply chain management expertise to companies and provide adequate recommendations to lessen logistics cost. (S6, T1, T2, T3) PD

1. Revisit paying options for companies greatly affected by the economic recession. (W2,W5,T1,T2) PD

2. Rising unemployment rate

2. Continue to build brand and maintain strong partnership with FedEx clients to achieve loyalty on both brands. (S1,S2,S5,T4,T5) MP

2. Lessen risk on top accounts with large AR by having an external support group to monitor development. (W2,W5,T1,T2) BI

3. Cheaper freight charge of freight forwarders

4. Exisitng international network of competitior

5. Partnership between Negros Navigation & 2GO

FROM SALES & MARKETING

12


Strengths-Weaknesses-Opportunities-Threats Matrix (SWOT)

Market Penetration •Penetrate Vis-Min through marketing and modern technology. Focus on the rise of online consumers with the use of the company's existing technology. •Use employee’s expertise to saturate growing service industries. •Enhance business model through niche marketing on SME's. •Revisit sales support; review compensation package and ensure that all areas are covered by a sales professional. •Continue to build brand and maintain strong partnership with FedEx clients to achieve loyalty on both brands. Product Development •Provide service specific to a company's need. FROM SALES & MARKETING •Revisit paying options for companies greatly affected by the economic recession.

MIDYEAR SWOT ANALYSIS

13


Strengths-Weaknesses-Opportunities-Threats Matrix (SWOT)

Backward Integration •Form a strategic partnership with IT companies that will lessen cost in innovating existing system. •Lessen risk on top accounts with large A/R by having an external support group to monitor development. Market Development •Make use of vast networks and resources to support remittances from OFW's. Forward Integration •Train and maintain strict compliance in the continuity of service quality of agents.

FROM SALES & MARKETING

Related Diversification •Acquisition of cold chain support that will validate the company as total logistics provider.

MIDYEAR SWOT ANALYSIS

DOMINANT STRATEGY: MARKET PENETRATION

14


FROM SALES & MARKETING

MIDYEAR SWOT ANALYSIS Strategy Formulation 15


Strategic Position and Evaluation Matrix (SPACE)

MIDYEAR SWOT ANALYSIS

Financial Strength

rating is 1 (worst) to 6 (best)

Ratings

1. Costly technology innovations

3

2. Lack of systems and control procedures in finance

5

Industry Strength

4

rating is 1 (worst) to 6 (best)

2. Continued growth of the service related sectors 3. Increasing number of SME's 4. Wide transportation network 5. Alliances with affiliates Environmental Stability

rating is 1 (best) to 6 (worst)

1. High sales team turnover 2. Stability in world prices of crude oil 3. Rising unemployment rate 4. Cheaper freight charge of freight forwarders 5. Increase in demand for logistics 6. Rise in online consumer services 7. World Financial Meltdown Competitive Advantage

6 Financial Strength rating is 1 (worst) to 6 (best) 1. Costly technology innovations 2. Lack of systems and control procedures in finance Industry Stength rating is 1 (worst) to 6 (best) 2. Continued growth of the service related sectors 3. Increasing number of SME's 4. Wide transportation network 5. Alliances with affiliates Environmental Stability rating is 1 (best) to 6 (worst) 1. High sales team turnover 2. Stability in world prices of crude oil 3. Rising unemployment rate 4. Cheaper freight charge of freight forwarders 5. Increase in demand for logistics 6. Rise in online consumer services 7. World Financial Meltdown Competitive Advantage rating is 1 (best) to 6 (worst) 1. Brand Equity 2. Licensee of FedEx 3. Equipped with state of the art technology 4. Exisitng international network of competitior 5. Employee's expertise in supply chain management services enhanced by adequate technical trainings. 6. Poor Marketing in Vis-Min Area 7. No cold chain support 8. Inconsistent service quality for agents outside NCR 9. Increasing number of OFW's 10. Partnership between Negros Navigation & 2GO

rating is 1 (best) to 6 (worst)

Ratings 3 5 4 6 5 5 6 4.4 -1 -3 -5 -3 -1 -1 -1 -2.14 -1 -1 -1 -6 -2 -4 -4 -4 -6 -4 -3.3

5 5 6 4.4 -1 -3 -5 -3 -1 -1 -1 -2.14

1. Brand Equity

-1

2. Licensee of FedEx

-1

3. Equipped with state of the art technology

-1

4. Existing international network of competitor

-6

5. Employee's expertise in supply chain management services enhanced by adequate technical trainings.

-2

6. Poor Marketing in Vis-Min Area

-4

7. No cold chain support

-4

8. Inconsistent service quality for agents outside NCR

-4

9. Increasing number of OFW's

-6

10. Partnership between Negros Navigation & 2GO

-4

Â

FROM SALES & MARKETING

-3.3

16


MIDYEAR SWOT ANALYSIS

Strategic Position and Evaluation Matrix (SPACE)

ES average

-2.14

CA average

-3.30

IS average

4.40

FS average

4.00

X Coordinate

1.10

Y Coordinate

1.86

Strategy >> Aggressive

FROM SALES & MARKETING

17


Internal-External Matrix (I-E)

FROM SALES & MARKETING

MIDYEAR SWOT ANALYSIS

18


Grand Matrix

FROM SALES & MARKETING

MIDYEAR SWOT ANALYSIS

19


MIDYEAR SWOT ANALYSIS

Matrix Summary

AIR21 - MATRIX SUMMARY Alternative Strategies

SWOT

SPACE

Forward Integration

x

Backward Integration

x

Horizontal Integration

GRAND

TOTAL

x

x

3

x

x

3

x

x

2

x

4

x

3

x

4

x

3

Market Penetration

x

x

Market Development

x

x

Product Development

x

x

Related Diversification

x

x

IE

x x

Unrelated Diversification

x

1

Conglomerate Diversification

x

1

Horizontal Diversification

x

1

Joint Venture

0

Retrenchment

0

Divestiture

0

Liquidation

FROM SALES & MARKETING

0 20


MIDYEAR SWOT ANALYSIS

Quantitative Strategic Planning Matrix (QSPM)

Market Penetration

Key Internal Factors

Weight

AS

TAS

Product Development AS

Forward Integration

TAS

AS

Strengths

TAS

1. Brand Equity

0.10

4

0.40

3

0.30

4

0.40

2. Licensee of FedEx

0.10

4

0.40

3

0.30

4

0.40

3. Equipped with state of the art technology

0.15

4

0.60

4

0.60

3

0.45

4. Wide transportation network

0.10

4

0.40

3

0.30

3

0.30

5. Alliances with affiliates

0.05

4

0.20

4

0.20

4

0.20

6. Employee's expertise in supply chain management services enhanced by adequate technical trainings.

0.05

3

0.15

4

0.20

4

0.20

1. High sales team turnover

0.10

3

0.30

4

0.40

2

0.20

2. Poor Marketing in Vis-Min Area

0.05

3

0.15

2

0.10

4

0.20

3. No cold chain support

0.05

3

0.15

3

0.15

2

0.10

4. Lack of systems and control procedures in finance

0.10

3

0.30

4

0.40

2

0.20

5. Inconsistent service quality for agents outside NCR

0.05

4

0.20

4

0.20

4

0.20

6. Costly technology innovations

0.10

3

0.30

3

0.30

3

0.30

SUBTOTAL

1.00

3.55

3.45

Weaknesses

FROM SALES & MARKETING

3.15 21


MIDYEAR SWOT ANALYSIS

Quantitative Strategic Planning Matrix (QSPM) Market Penetration

Key External Factors

Weigh t

AS

TAS

Product Developmen t AS

TAS

Forward Integration AS

Opportunities

TAS

1. Increase in demand for logistics

0.15

3

0.45

3

0.45

4

0.60

2. Rise in online consumer services

0.05

3

0.15

2

0.10

4

0.20

3. Stability in world prices of crude oil

0.05

1

0.05

1

0.05

1

0.05

4. Increasing number of SME's

0.10

4

0.40

3

0.30

4

0.40

5. Continued growth of the service related sectors

0.15

4

0.60

3

0.45

4

0.60

6. Increasing number of OFW's

0.05

4

0.20

4

0.20

1

0.05

1. World Financial Meltdown

0.05

3

0.15

3

0.15

3

0.15

2. Rising unemployment rate

0.15

4

0.60

3

0.45

3

0.45

3. Cheaper freight charge of freight forwarders

0.05

3

0.15

4

0.20

4

0.20

4. Existing international network of competitor

0.10

1

0.10

1

0.10

1

0.10

5. Partnership between Negros Navigation & 2GO

0.10

3

0.30

3

0.30

4

0.40

SUBTOTAL

1.00

3.15

2.75

3.20

SUM TOTAL ATTRACTIVENESS SCORE

2.00

6.70

6.20

6.35

Threats

FROM SALES & MARKETING

22


FROM SALES & MARKETING

MIDYEAR SWOT ANALYSIS Recommendations 23


Recommended Vision Statement

“To become the undisputed market leader in the international and domestic express transportation and FROM SALES & MARKETING logistics industry by the end of MIDYEAR SWOT 2020.” ANALYSIS

24


Recommended Mission Statement “To provide superior customer driven quality service to its customers by maintaining the most efficient equipment in the industry that will provide time-definite, totally reliable, innovative pick-up, delivery and logistics services to customers that value time in doing business. Thus, by giving our employees mutual trust and respect all of our long term strategies and short term actions will be molded by a set of core values that will deliver profits and growth to our shareholders. FROM SALES & MARKETING Lastly, we will exceed these expectations by conserving resources and observing the highest ethical standards in our pursuit to lead the markets in which we choose to compete.�

MIDYEAR SWOT ANALYSIS

25


Strategic Objective 1. Total revenues from express service is projected to increase from Php942 million in 2009 to Php1.1 billion in 2011, representing an annual growth of 10%. 2. Net income of for the parent company Airfreight 2100, Inc. is targeted to grow from Php67 million in 2009 to Php94 million inSALES 2011. & MARKETING FROM

MIDYEAR SWOT ANALYSIS

26


Recommended Strategies Forward Integration: We can look to increase control over distributors by integrating systems and processes to our agents. Market Penetration: Increase market share in the Visayas and Mindanao Area. FROM SALES & MARKETING

MIDYEAR SWOT ANALYSIS

27


FROM SALES & MARKETING RECOMMENDATION

MIDYEAR SWOT ANALYSIS Departmental Activities 28


Departmental Goals Sales •Reduce turnover rate by offering new incentive scheme and personal growth through training and education. Marketing •Improve visibility and awareness in the Visayas and Mindanao area. FROM SALES & MARKETING

Finance •Implement regulatory changes in workloads, standardization, people and procedure will be prioritized.

MIDYEAR SWOT ANALYSIS

29


Departmental Goals Operations •Assure that agents adhere to the service quality and performance indices in terms of operations. Human Resources •Train all agents with company procedures, processes and system involved in daily operations. FROM SALES & MARKETING

I.T. Enhance I.T. infrastructure in the Visayas and Mindanao area.

MIDYEAR SWOT ANALYSIS

30


FROM SALES & MARKETING EVALUATION AND SUCCESS INDICATORS

MIDYEAR SWOT ANALYSIS Balance Scorecard 31


MIDYEAR SWOT ANALYSIS

Financial Perspective Area of Objectives

Measure or Target

Time Expectation

Primary Responsibility

10% ave. per annum Revenue Growth

Improved A/R Collection

2009 – Php214,171,076.50 2010 – Php235,588,184.15 2011 – Php259,147,002.57

2009-2011

Sales, Marketing and Operations

40 days ave. collection days

2009-2011

Finance

2009-2011

Sales & Marketing

100% sales performance Achievement of Sales Quota

2009 – Php942,352,736.60 2010 – Php1,036,588,010.2 2011 – Php1,140,246,811.2

Utilization of Assets

98% utilization rate

FROM SALES & MARKETING

Annual

Operations 32


MIDYEAR SWOT ANALYSIS

Customer Perspective Area of Objectives

Measure or Target

Time Expectation

Market Share

>57% Market Share

Customer Satisfaction

>98%

Monthly

Sales, Marketing and Operations

Customer Retention

>90%

Annual

Marketing, Sales, Operations & Finance

Transit Time

1-2 days

Monthly

Operations

Price

Industry Leader

Annual

Marketing

FROM SALES & MARKETING

2009-2011

Primary Responsibility

Sales, Finance and Marketing

33


MIDYEAR SWOT ANALYSIS

Internal Business Perspective Area of Objectives

Measure or Target

Improve Operational Efficiency

100% turnaround time

Hiring of Competent SP

Internal hiring

Ensure Agent Presence

Zero agent vacancy in a territory

FROM SALES & MARKETING

Time Expectation

Monthly

Primary Responsibility IT and Operations

HR and Sales

Annual

HR and operations

34


MIDYEAR SWOT ANALYSIS

Innovation and Learning Perspective Area of Objectives

Measure or Target

Primary Responsibility

Time Expectation

Sales Coaching

100% of SP coached

Quarter

Sales

High Skills Level

95% skill set ratio

Annual

HR

Innovation of current technology

100% on time and accurate information

Annual

IT

Employee Satisfaction

100% satisfaction rating

Quarter

HR

Training Best Practice

100% employees trained

Annual

HR

FROM SALES & MARKETING

35

Airfreight 2100, Inc.  

SWOT Analysis