I.

CASE BRIEF
FilArchipelago Hostpitality Inc., with its two brands, Crimson and
Quest, seeks to capture its fair market share in both high-end and
mid-market segment.

FilArchipelago, while perceived as promising, is not yet seen as a

significant contributor to FDCs financial portfolio of corporate holdings.
Crimson and quest have many competitors in the Philippines. the vast
majority has only one property each in the Philippines and some operate
a chain of properties.
The Philippines has been at the center of global attention in 2013 with
issues ranging from natural calamities to armed conflict to governance
scandals. All these have cause some degree of skepticism in the part of
target markets and investors.
Many of its processes are not yet fully automated, and some
customers have perceived a lack of consistency in their service. VP
Francis was asked by the FDC president Josephine Gotianun-Yap, who is
also his aunt, to develop a strategic roadmap towards industry leadership
both in real estate and the hospitality industries. Taken consideration the
market position of hospitality business in the next five to ten years
following the partnership of FDC and FilArchipelago Hospilality Inc.

II.
III.
IV.

POINT OF VIEW
Top executives of FilArchipelago Hospitality Inc.
TIME CONTEXT
2008-2013
STATEMENT OF THE PROBLEM
FilArchipelago Hospitality Inc., (FAHI)s resources cannot cope up
the demands of the competition since FAHIs competitor mostly are on
the high and middle level.

V.

STATEMENT OF OBJECTIVE

To develop an efficient strategy that will enable the company to

remain in the market using the limited capital.
VI.

AREAS OF CONSIDERATION

STRENGTH

WEAKNESS

Partnered with an Indonesian

operator of hospitality
establishments Archipelago
International Pte. Ltd. (AIPL)

Lowest property owned in the

market.

Processes are not automated

Long term solid track record

in real estate property
development

Inconsistent implementation
of their services.

Wider scope of market

OPPORTUNITY

THREATS

Increase number of tourist

Financial crisis

Philippines is a great choice

for investing a business.

Fortuitous events, such as

calamities, will gradually
decrease the tourist visit.

Many tourist spot that can be

the targeted location of the
business.

Large numbers of established

competitors
Intervention of govt sector.

VII.

ALTERNATIVE COURSES OF ACTION

1. Target the low level competitors

ADVANTAGES

DISADVANTAGES

1. Easier to compete
2. Resources are sufficient
3. Not costly

1. It will not assure highest profit.

2. Longer implementation
3. No more high end customers

2. Partnership with other companies

ADVANTAGES
1.
2.
3.

DISADVANTAGES

Increase in resources
Theres a help for the
implementation of strategies
Increase competitive
advantage

1. Conflict of decisions
2. Lesser profit
3. Limitation on the
implementation.

3. Build business on less developed places

ADVANTAGES
1. Wider scope of market
2. Less competitors
3. The company will be known
to some areas

VIII.

DISADVANTAGES

Costly
Limited customers
Lesser profit

ANALYSIS OF THE ALTERNATIVE COURSES OF ACTION

After evaluating the alternative courses of action, TARGETING

THE LOW LEVEL COMPETITORS is the most suitable solution to solve
the problem. Since the FAHI is considered as the lowest property
owned among its competitors, the company cannot compete with high
end competitors with an established business.
It ensures the alignment with tha capacity of the business. The
said strategy is already evident by Samsung co. wherein it chooses to
compete with lower level of brands than Apple since they already
foresees that they wont be able to defeat Apple brand.
IX.

CONCLUSION
After considering the alternative courses of action, competing
the low level competitors is the most appropriate action to stay in
market in alignment with the capacity of the business.

UNIVERSITY OF THE EAST

CALOOCAN CAMPUS

CASE ANALYSIS:
FilArchipelago Hospitality Inc.

Submitted by:
Belarma, Ryan
Bernardo, Jomaica
Bituin, Mark Oliver
Cruz, Johanna Mari
Villinario, Karel Dominique

Submitted to:
Prof. Richmond V. Cruz, CPA