Case 5 (Bupol)
Case 5 (Bupol)
Case 5 (Bupol)
Executive Summary
Fil General Blower Corporation, or FilGen, was a fabricator of industrial fans and
blowers used in air-conditioning, air handling, and the pneumatic conveying of material
which was founded in 1960. They offer design of exhaust and ventilation systems,
installation, repair, and servicing of fans and blowers. Considered being one of the
pioneers in the industry, they acquired a strong local client base in industry and
commercial corporations and in the food and drugs manufacturing industry which resulted
to a steady growth. Also, all of its products were made to order, statically and dynamically
Since the changes is the only thing permanent in the world, changes in industry’s
standards affects FilGen badly because they failed to adapt or cope up with the changes.
Besides to that problem, they also suffered a serious blow when their founder and
chairman who was the main source of strategic direction and innovation to the company
passed away. The operation was paralyzed and resulted to a steady decline in sales.
With the changes in the industry’s standards, competitors overtaken the Fil
General Blower Corporation because they failed to adapt or respond to the changes
I. Framework of Analysis
SWOT Analysis – this tool is used to know what are the internal and external factors
Porter’s Five Forces Model– this tool seeks to explain competitive pressures within an
industry to ascertain how powerful, influential, and competitive a firm can be.
SWOT Analysis
Strengths
and Refrigiration(HVAC/R), FilGen acquired a strong local client base in industrial and
commercial corporations and in the food and drugs manufacturing industry. They also
offer high quality products which were made to order, statistically and dynamically
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Weaknesses
FilGen faces a downturn specifically when its founder and chairman who was the
main source of strategic direction and innovation of the company passed away. Since the
problem occurred at the top, it is considered as a pervasive problem which affects the
whole operation. Also, made to order products means high cost, so the tendency for the
customers are to switch ways and look for alternatives with lower cost but same quality.
In addition, FilGen doesn’t have a sales and marketing department which would be a
Opportunities
it is more favorable to the consumers because of the low cost but quality products.
Besides, FilGen will also benefit from it as it will lessen the cost to the production, it is a
win-win situation.
Threats
efficiencies and effective air control systems which are in line with the industry’s standard.
It is a serious threat for FilGen since they failed to cope up with the changes, and it refrains
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Porter’s Five Forces Model
Industry Rivalry
Large number of industry players. Fil General Blower Corporation, being in HVAC/R
industry, faces a huge number of competitors. Since the industry is into architecture and
engineering for enhancing and building environments, the competitors are eager to
produce methods and techniques that are new and relevant to the market. Almost all of
the customers are buying these kinds of product in this industry; hence, the competition
is extensive.
Changes in industry standards. The industry, considering the changes in the standards
through the years, has been a quite battle between the companies. In result, industry
players are very compliant with the demands and endeavored to develop new and
Just-In-Time inventory system. Fil General Blower Corporation uses this inventory
system since they produce product according to the customer specifications which
bargaining power chip over the suppliers because they can make their product on time
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Bargaining power of buyers
revenue because FilGen acquired strong and local clients. But customer have a high
bargaining power over the firm since the firm produce product if the customer wants to
order and it is based on the customer specification. And also there are many
competitors who offers a low cost but high quality product so the customer have a
Expansive List of Functions. Since the industry covers a wide range of function, the
possibility of new competitors will increase in the future. Also, the advancement of the
technology that gives an opportunity to every investors and companies to foresee that the
HAVC/R industry will expand the market share in the near future that will give positive
outcomes. Even though it is costly and the need of more investment to enter in this
industry, the possibility of gaining profit surpass the risk of high investment needed.
Customer’s Loyalty. In the past years, FilGen does not seek customers rather they are
waiting for the customers to approach them. Since they are on the steady growth, they
did not question the possibility of failure and declining sales through the increasing
number of competitors instead their technology and improvements also remain steady.
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The customers always seek for changes and innovations, which is why FilGen
Rapid change in technology. Over the years, rapidly change in technology affects not
just the FilGen Corporation but the industry. The advancement of technology creates new
development and new discoveries that produce better products. It includes a low-cost
standard products and other alternatives that satisfied the needs of the consumers. Thus,
the FilGen corporation are having a hard time in dealing to the rapid change of technology
Improving the functional department would be the best possible strategy to regain their
sales. Establishing a sales and marketing department is one of the best ideas since it has
a vital role for the company–it can help the company to increase their profitability and
sustainability. These departments will be the one who’ll be in charge in reaching out to
customers and offer their products and services. Also, investing more to research and
development is another solution that could be considered since it’s a preparation to regain
its customers and sales–on how they will use its resources efficiently and effectively.
Trade discounts and other product promotions could also be considered; it could attract
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IV. Recommendation
Additional Departments
With the current changes in industry’s standards, FilGen was being overtaken by its
competitors and struggling to find its position in the market. Establishing a sales and
marketing department would be the best solution to regain its customers and eventually
This strategy will be a big help in order to know the needs and wants of the target
customers, though it’s expensive, our group believes that it will be worth it in the end.
Since they lost some of its customers, this strategy is the best fit in order to regain its
customers. Given the quality of their products, there will be a higher chance for them to
Standardized products
Though FilGen’s products were made to order, they should also consider producing
V. External Sourcing