Acnielsen Philippines, Inc.

Date of Publication

1999

Document Type

Oral Comprehensive Exam

Degree Name

Master of Business Administration

Subject Categories

Business Administration, Management, and Operations

College

Ramon V. Del Rosario College of Business

Department/Unit

Decision Sciences and Innovation

Abstract/Summary

The Philippine market research industry is a fast growing industry. Since its birth in the late 1960's it has experienced tremendous growth specifically because its customers. the large and small manufacturers. the retailers. and other service organizations, have realized that information is power. and that information is needed in decision making and risk reduction.

Because of the need for market information. from a handful of in-house or backyard research outfits in the early seventies. the number of market research companies have mushroomed. all of them seeking to provide companies with marketplace intelligence and insights that allow them to make well-informed decisions and creative strategies.

A close look at the leading market research company in the Philippine unravels the current strategies of the most senior player in a young industry where there are strong competitive, forces, and proposes aggressive strategies needed to develop competitive advantages to ward off fierce competition in an industry where the following arc the key success factors: The key success factors across the industry include:

• The ability to retain seasoned staff • Timing on when to take advantage of opportunities (knowing the proper time to launch new services and technology-driven service innovations) • Ability to meet/exceed client requirements • Relationship with local and foreign clients • Relationship with trade organizations • Relationship with industry associations • Relationship with market research key persons in the manufacturing/client side • Accuracy and timeliness of data/information • Ability to adapt products and services to evolving media and media requirements • Acceptable pricing and packaging/bundling • Employee satisfaction • Competent and reliable sub-contractors ("subcons")

Using Michael Porter's Five Forces Model to analyze the competitive forces in the industry, the overall assessment of the intensity of competition in the market research industry is placed as MODERATE. This assessment is unlike t1tat for the manufacturing industry, or other service industries. This makes the industry attractive to potential players.

However. entry into the industry is not a simple matter as there are strong entry barriers. Only at a great cost or investment. and product focus and service differentiation will an entry be moderately successful. Furthermore. success in industry is also affected by the following treats:

• Globalization of current competitors • Merging of local client companies, or globalization of local companies • Presence of new substitutes - competition from new "mid-price" companies • Currency crisis: Peso devaluation - the Asian economic and currency crisis • Client dissatisfaction over accuracy of information. timing or value-added services - clients value accurate and timely information. • Emergence of leverages from service suppliers (e.g. subcontractors)

Being the market leader that ACNielsen Philippines is. the company has adopted the following five (5) key corporate directional thrusts to guide decisions mid investments:

1. Enhance and expand retail measurement services

2. Aggressively expand consumer pm1el services

3. Focus on profitable opportunities in customized research

4. Continue to develop and leverage media measurement capabilities

5. Aggressively pursue opportunities for modeling and analytical services

The economic crisis for t11e past two and a half years has caused the country to face low GDP growth. a devalued local currency. and soaring inflation. unemployment and increasing interest rates. In such perilous times the leadership has worked to protect the business through outstanding client satisfaction. intensified employee satisfaction and solid cost and financial management. To energize the whole organization in implementing the ACNielsen Corporate Direction. local leadership has set five (5) organizational stakes in the ground. The stakes. the organizational objectives. are meant to drive the organization over the next three (3) years. as guided by the ACNielsen Corporate Direction. The stakes are meant to develop and sustain competitive advantages in the face of relentless assault from big-name foreign market research groups.

1. Grow revenue faster than industry average

2. Build employee satisfaction to world class standards 3. Achieve Best-in-Class economics

4. Develop clear competitive advantage through local client services and regional total client management

5. Operate as a high performing leadership team

In order to pursue these corporate directions and organi1.ational stakes. ACNielsen Philippines has classified its strategies into three types. Referred to as the B.I.G. strategies these are:

• "Build the business" strategies • "Increase customer satisfaction" strategies • "Grow the business'' strategies

Most important to the company's overall achievement of organizational objectives and strategy is its passionate adherence to the Service Profit Chain. The real essence of the Service Profit Chain is that employee satisfaction should bring about a successful company. not the other way around. The company is positioned as a company driven by happy ,md motivated associates. Although meeting revenue targets may be the most visible and tru1gible evidence that this is true. ultimately. what matters is the happy and satisfied associate working to insure the success of the company. The Service Profit Chain is what will make ACNielsen Philippines a company it aspires to be - an employer of choice. a center of excellence. and a company that is Built to Last.

Abstract Format

html

Language

English

Format

Print

Accession Number

OCE0299

Shelf Location

Archives, The Learning Commons, 12F Henry Sy Sr. Hall

Physical Description

59 numb. leaves

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