LAGUNA STATE POLYTECHNIC UNIVERSITY

(Los Banos Campus)

Brgy. Malinta, Los Banos, Laguna

Emilio S. Lim Appliance

Center
(Midterm Paper in Strategic Management)

Submitted By:
Brizuela, Chris Ivan
Fababeir, Angela
Garcia, Julius Cedric V.
Gaviola, Febbielyn A.
Lalap, Ejecellyn Joy S.
Ludovice, Maica V.
Milanes, Mary Joy R.
Rodriguez, Maricon

Submitted to:
Prof. Leylane D. Olan

October 25, 2019

LAGUNA STATE POLYTECHNIC UNIVERSITY
(Los Banos Campus)
Brgy. Malinta, Los Banos, Laguna

TABLE OF CONTENTS
 LAGUNA STATE POLYTECHNIC UNIVERSITY
(Los Banos Campus)
Brgy. Malinta, Los Banos, Laguna

COMPANY
PROFILE
 LAGUNA STATE POLYTECHNIC UNIVERSITY
(Los Banos Campus)
Brgy. Malinta, Los Banos, Laguna

History
The Emilio S. Lim Appliance Center was established in the year 1967. After half
a century, ESLA president Jimmy Lim admits that 2017 has been a difficult year for the
whole appliance industry in the Philippines. However, his company has recorded only a
10-percent increase in cash sales and a flat growth in installments. It is said that the
company starts in small type of business that currently became one of the growing
businesses nationwide.

Line of Business
Emilio S. Lim is a merchandising type of business who does buy and sell of
products. The company has a major and minor suppliers who distribute products in the
market. Their products was usually machines, and other electronic devices that can
help people in order to make their lives easily.

Product and Services

Emilio S. Lim Appliance Center distributing home appliances here in the

Philippines around Luzon area. Emilio Appliances has a different type of products such
as Television, Electric fan, Washing machines, Refrigerator,Air Condition and Sound
system speaker. These products also have different brand power of grew into a global
brand and product of high added values focusing in electronics.

Extent of Operations
The company has only one branch here in Los baños, and there are almost ten
branches in the whole province of Laguna. However, ESLA’s operation was operating in
different cities nationwide. It opens around 6 am and will close at 6 pm daily.
 LAGUNA STATE POLYTECHNIC UNIVERSITY
(Los Banos Campus)
Brgy. Malinta, Los Banos, Laguna

Emilio S. Lim Appliance Center has its own way of competing other stores
around the market area. They drive down the prices as much as possible less than the
competitor’s price to catch the attention of the customer. What is good to this business
is they ensure to meet the customers satisfaction, not just to be affordable in price but
also comfortable in use.

Vision
The Emilio S. Lim Appliance Center is a great provider of products and services
in order to contribute for the growing lives of the customers. The company will able to
give an outstanding customer satisfaction and become globally competitive market.

Mission
Strengthen self-financing programs to widen the reach of middle-income urban
Filipino families. Making a continuous training and development of our people to
enhance cooperation and customer service. Forge strong alliances with suppliers and
manufacturers to ensure the best quality products. Adapting to market changes through
innovation to ensure competitiveness in the appliance industry.

Ojectives
 LAGUNA STATE POLYTECHNIC UNIVERSITY
(Los Banos Campus)
Brgy. Malinta, Los Banos, Laguna

Situation Analysis

a) Socio-economic and political environment affecting business

The business

b) Business Environment composed of suppliers, customers, competitors,

government regulators.

Mostly, the supplier is the important factor in a business. If one of the supplier
was not able to deliver the products needed, they look for another supplier to be able to
fill the the supplies needed. However, it is very risky to change supplier and to depend
on just one major supplier because it can cause delay that can hold of generating
income for the business.

Loyal customers are the reason why Emilio S. Lim Appliance Center is still on the
highest appliance store nationwide. ESLA provides best quality products to satisfy the
needs and wants of customer. The manager, employees and other staff of appliance
center has a strong intrapersonal and interpersonal communication skills. They
communicate well to their customers along with their good and professionalize manner
that helps to gain more customers in each day of the operations.

They have many competitor within Los Banos such as Robinsons and Centtro.
ESLA always give their best to compete .They offer discounts and put prices less than
its competitors.

The business follow the rules and regulations of the government for them to have
a sustainable business.
 LAGUNA STATE POLYTECHNIC UNIVERSITY
(Los Banos Campus)
Brgy. Malinta, Los Banos, Laguna

c) SWOT

Ability to sell products online.

Competitors can offer same

products quickly.
 LAGUNA STATE POLYTECHNIC UNIVERSITY
(Los Banos Campus)
Brgy. Malinta, Los Banos, Laguna

d) 5 Forces Model

RIVALRY AMONG EXISTING THREAT OF NEW THREAT OF NEW ENTRANT

COMPETITORS
ENTRANT - Barriers to entry
- Number of appliance - Brand loyalty
competitors - Capital Requirements
- Diversity of competitors - Government policies
- Industry growth - Economies of scale
- Quality differences
- Brand loyalty
- Switching costs
BARGAINING BARGAINING
POWER OF POWER OF
SUPPLIERS BUYERS

BARGAINING POWER OF BARGAINING POWER OF

SUPPLIERS THREAT OF SUBSTITUTE BUYERS

- Number and size of PRODUCTS - Number of Customer

supplier - Differences between
- Uniqueness of Competitors
appliances each supplier THREAT OF SUBSTITUTE - Buyers Ability to
- Focal company’s ability PRODUCTS Substitute
to substitute - Number of substitute - Buyers information
product available availability
- Relative price - Switching costs
performance of substitute
- Perceived level of
product differentiation
- Switching cost
 LAGUNA STATE POLYTECHNIC UNIVERSITY
(Los Banos Campus)
Brgy. Malinta, Los Banos, Laguna

Figure 1: Porter’s Five Forces Model of Emilio S. Lim Appliances

Porter's Five Forces Model of Emilio S. Lim Home Appliance Industry

Emilio S. Lim Home appliance industry is mainly consisting of the following players
HITACHI, Skyworth, Electrolux Haier, TLC, Eurotek, LG, SHARP and CONDURA
refrigerator. All these players produce wide range of quality products that Emilio S. Lim
appliance sell. Vikings and Sub-Zero are niche players, each producing one exclusive
premium quality product line.

Porter's five forces model is a tool to analysis the industry framework. Two forces in this
model refer internal threats and other three forces refer to external sources of
competition. These forces determine the competitiveness of the overall industry which
represents the attractiveness of the industry. Here is the example of Emilio S. Lim
appliance industry.

Threat of new entrants

Threat of new entrants is very low because heavy investment and sophisticated R&D is
required in appliance market and industry is matured with intense competition,
profitability is not lucrative for the new entrants. Brand loyalty also plays an important
role and big distribution network is required. Due to the intense competition existing
players will retaliate the new entrance. There are many threats for new entrance to
enter the home appliance industry.

Exit barriers

Because of the heavy investments in specialized fixed assets and sophisticated

machinery, it is not easy for any existing player to quit the industry. Each product
requires the special technology and investment; it is not easy to leave the entire setup.
 LAGUNA STATE POLYTECHNIC UNIVERSITY
(Los Banos Campus)
Brgy. Malinta, Los Banos, Laguna

Power of buyers

Power of buyers is very high, not only final consumers drives the quality and innovation,
also the middle-men and builders can and do exercise pressure on the supplying firms
to provide energy efficient, environmentally safe and high quality products in low cost.
Buyers want to place only high quality and well known brands in their stores.

Power of suppliers

Power of suppliers is low; appliance companies dictate the terms. They are forcing the
supplier’s quality products and to follow JIT concepts. Manufacturers have the exclusive
contracts and alliance with Emilio S. Lim appliance.

Threat of substitute products

Threat of substitute products is very low, there are not much substitutes available. Even
if they are (e.g. Television, fan industry) they are not powerful.

According to the Porter's five forces analysis, Emilio S. Lim home appliance industry is
moderately favorable or attractive to customer in Los Banos, Laguna and enjoy profits.
 LAGUNA STATE POLYTECHNIC UNIVERSITY
(Los Banos Campus)
Brgy. Malinta, Los Banos, Laguna

e) Growth strategies using the growth matrix (Market penetration, Market

development, Diversification, Product development)