Ayala Corporation Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Ayala Corporation Case Study Solution

Alternatives:

Alternative 1: Outsourcing

Pros:

Outsourcing is one of the best approaches to bring a reduction in the operating cost to manufacture products at a relatively low cost with high-quality generating high returns on investment.
For the manufacturers, outsourcing provides the organization with the ability to produce more products in less time with the increase in the demands of products offered by the organization.
It provides the organization with the ability to deliver products and services more easily and convenientlyensuring the success of the organization.
It significantly allows the organization to focus more on the core competencies eliminating the probability of labor dispute.

Cons:

Miscommunication in the provision of guidelines regarding the manufacturing of products might inaccurate production and implementation of the process.
The hiring of employees or an organization for the production of the products with the purpose to bring a reduction in the cost leads to increased concerns over privacy and intellectual property rights.
This might result in the increased employment rate making it difficult to keep balance with the local economy without bearing huge losses.

Alternative 2: Economy Pricing

Pros:

The economy pricing strategy to provide the customers of developing states with low price products through e-commerce platforms significantly allows the organization to increase sales growth.
Lowering the product price allows the organization to offer its products to low and middle-end markets as well.
With lower product prices, the demands of the product offered would increase by bringing a significant increase in the production of the number of units allowing the organization to be benefitted through the economies of scale.

Cons:

The initiation of sales in a new locality influences the sales of the organization i.e. low-priced products are known to influence the perception of the customers.
Low priced product is known to provide the organization with relatively low-profit margins influencing the overall profitable growth of the organization.
Economy pricing is known to encourage the oversupply but greatly leads to the inefficient organizational performance regarding the manufacturing of the product.

Alternative 3: E-commerce platform

Pros:

The shift from traditional sales to the e-commerce platform will allow the organization to a large market of consumers across the world.
The use of an e-commerce platform would significantly allow the organization to remain competitive in all segments of the services and industries it operates.
It brings improvement in the sales-generating increased revenues improving the performance of the organization.
It allows the organization to expand its business at the international level leading to expanded business networks at the global level.
It is relatively a low-cost service that is considered easy to set up and adequately maintain the business operation.

Cons:

It brings a gap in consumer interaction which is considered one of the crucial factorsto improve sales, satisfy the consumers and business expansion.
It allows the customers to compare the product prices of different brands bringing a reduction in the probability of increased sales.

Recommendation:

With the shift in the way how the consumer interacts with the retailers of buyers and implementation of advanced technological approaches, the change in the trend has significantly led to the introduction of many alternative services such as Airbnb eliminating the need for the customers to visit stores or marketplace to purchase the products they need. Thus, considering the changes in the industry, the threat to the competition, and changed the perception of the customers, the organization is recommended to create an e-commerce platform to reach a large consumer base.

The implementation of the suggested strategic approach is primarily based on the notion to bring improvement in the sales, expand and reach the target market, operate and offer services at the international level. Due to the reason that the organization has been experiencing declined sales and reduced net profit margin in comparison to last year. Furthermore, it will significantly allow the organization to manage its operations in an efficient manner, which will bring improvement in the overall organizational process i.e. cost-reduction, increased sales, and consumer loyalty.

Implementation Plan:

Market Research:

To improve the organizational services, the management of the organization is required to conduct market research to determine the perception of customers regarding the features the like to see in an e-commerce platform.

Hire a team:

After conducting market research, the management of the organization is required tohire a team of professionals with the capability to develop an official website for the organization with the easy but attractive features to be used both the users and customer service providers.

Develop Site:

Based on the market research conducted, make sure to incorporate all the features suggested or presented by the costumers but do not make them too complex i.e. making it difficult to use.

Monitor Web Traffic:

The increasing number of visits on the website and searches allows the organization to determine the fact that the web traffic has been increasing. A significant increase in web traffic allows the organization to project sales.

Evaluate Sales:

An increase in the average time spent by the customers would allow the organization to determine the changes that indicate that the customers are being attracted to the site resulting in the increased number of sales and promoting more revenue growth.

Conclusion:

The largest organizations in the real state in the Philippine engaged in services such as planning, develop, subdivide and market the large-scale communities demonstrating a mix of leisure, commercial, residential and others. The consumers have represented the increase in the purchase of products, but have brought a significant reduction in the store visits frequency.The organization is recommended to create an e-commerce platform to reach a large consumer base.Due to the reason that an increase in the competition would make it difficult for the company to manage its resources effectively and remain competitive in the market..................................

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