final revision onlite led 1st

CHAPTER 1

INTRODUCTION

A. COMPANY BACKGROUND

Onlite LED Lighting Technologies

International Corporation was founded in 2009 in

Hong Kong and is the exclusive distributor of

Venus LED lights. Today, Venus is becoming

one of Philippine’s leading brand of LED lights.

It has a proven track record of helping over 300

companies nationwide and realizing the business benefits of LED lighting

solutions, both indoor and outdoor lights. Venus product lines are world-class

and cost-effective, thus, bringing leverage to the company.

Aside from Venus LED lighting solutions, Onlite also offers a

comprehensive option of commercial lighting products with features of

modernization, architecture and energy conservation using CREE led chips.

CREE is the leading LED chip brand worldwide which has continually exceeded

the industry standards for brightness and efficiency.

Onlite is continuously adapting to the changes of the LED lighting

revolution through the use of innovative, modern, energy efficient and

1

environmentally friendly LED lighting solutions that will empower the lives of each

one of us.

MISSION

To provide high quality products that combine performance with value

pricing, while establishing a successful relationship with the customers and

suppliers a safe and a healthy environment.

VISION

To be recognized as the country's best LED lighting company by providing

innovative quality and services and that will enable the customers' success and

provide a healthy environment.

SERVICES OFFERED

Wholesale of LED lighting products

Retailer of LED lighting products

Ocular visit (For best recommendations)

ROI (Return of Investment) analysis

Warranty and for Replacement

After Sales Support/ Tech support

TIME KEEPING AND ACCURACY

2

The company strongly believe that the speed of accuracy have to be

balanced in track. The company's workforce is well- trained to improve their

speed day by day with 100% accuracy and flexible enough to work extra time

even in non-working days to complete the project, setting benchmark

continuously with integrated process and interaction between committed team

members to ensure that quality levels are high from the initial stage of a project

to its final outcome.

INTEGRITY AND CODE OF CONDUCT

Flexible process to meet client’s business style and to build trust based

relationship.

It is the company's policy not to disclose any information about the clients

to any other person or organizations. The information received will be used only

for which the client provided the company.

LEADERSHIP AND TEAM

Onlite is a company with diverse talents and skills. The leadership

structure offers a dynamic atmosphere in which talented, creative and motivated

people thrive. The company does not just acknowledge hard work and

achievements; it rewards and grooms it.

The company has an experienced team of vibrant, young professionals

having the ability to update with latest trends and requirement of the client.

3

The team’s passion is to take challenges and to deliver to clients

expectations.

The Products:

4

B. RESEARCH, DESIGN AND METHODOLOGY

The study was assembled through the following: the researchers were

able to interview the manager of the company; some information were browsed

through the internet; all financial statements were garnered thru the Securities

and Exchange Commission (SEC), National Statistics Office (NSO) and other

agencies that are related to the company’s industry.

C. SCOPE AND DELIMINATION

This study aims to provide suggestive strategies to resolve the problems

raised by the company representative pertaining to the LED lighting products and

9

as seen in this paper’s corporate evaluation. The study will mainly focus in Metro

Manila Area as it is mainly affecting the total performance of the company.

D. STATEMENT OF THE PROBLEM

Onlite LED Lightning Technologies International Corporation was

established here in the Philippines last 2011. Since the company is new and it is

in introductory stage in life cycle, it was hard for them to introduce their product

and company itself to the market.

Onlite should improve and enhance their marketing efforts in order to

increase sales and maintain their profitability.

CHAPTER 2

EXTERNAL ANALYSIS

A. ECONOMIC SITUATION

INFLATION RATE

The inflation rate in Philippines was recorded at 4.30% in October of 2014.

Inflation Rate in Philippines averaged 8.88 % from 1958 until 2014, reaching an

all-time high of 62.80 % in September of 1984 and a record low of -2.10 Percent

in January of 1959. Inflation Rate in Philippines is reported by the National

Statistics Office of Philippines.

10

Actual Previous Highest Lowest Dates Units Frequenc

y

4.30 4.40 62.80 -2.10 1958-

2014

Percent Monthly

In Philippines, the most important categories in the Consumer Price Index

are: food and non-alcoholic beverages (39 percent of total weight); housing,

water, electricity, gas and other fuels (22 percent) and transport (8 percent). The

index also includes health (3 percent), education (3 percent), clothing and

footwear (3 percent), communication (2 percent) and recreation and culture (2

11

percent). Alcoholic beverages, tobacco, furnishing, household equipment,

restaurants and other goods and services account for the remaining 15 percent

(http://www.tradingeconomics.com/philippines/inflation-cpi, n.d.).

EXCHANGE RATE

Exchange rate (Philippine Peso Currency Conversion) lists the mutual

conversions between the Australian Dollar and other top currencies. It also lists

the exchange rates between this currency and other currencies

(http://php.fxexcangerate.com, n.d.).

Amount USD EUR GBP JPY

1 PHP 0.02224 0.01786 0.01421 2.63831

44.97 55.98158 70.35357 0.37903

DOLLAR RATE

The US Dollar decreased to 44.77 Philippine Peso in October from 44.98 in September of

2014. The Philippine Peso averaged 47.03 from 1998 until 2014, reaching an all-time high of

56.34 in October of 2004 and a record low of 37.84 in May 0f 1999.

Actual Previous Highest Lowest Dates Unit Frequenc

12

http://php.fxexcangerate.com/

y

44.83 44.99 56.34 37.84 1998-

2014

Daily

The USDPHP spot exchange rate specifies how much one currency is

currently worth in terms of the other. While the USDPHP spot range rate is

quoted and exchanged in the same day, the USDPHP forward rate is quoted

today but for a delivery and payment on a specific future date

(http://www.tradingeconomics.com/philippines/currency, n.d.).

POPULATION RATE

The total population in Philippines was last recorded at 97.4 million people

in 2013 from 26.3 million in 1960, changing 271 percent during the last 50 years.

Population in Philippines averaged 58.72 Million from 1960 until 2013, reaching

an all-time high of 97.35 Million in 2013 and a record low of 26.27 Million in 1960.

Population in Philippines was reported by the Bangko Sentral ng Pilipinas.

13

http://www.tradingeconomics.com/philippines/currency

Actual Previous Highest Lowest Dates Unit Frequency

97.35 95.77 97.35 26.27 1960 -

2013

Million Yearly

The population of Philippines represents 1.37 percent of the world´s total

population which arguably means that one person in every 74 people on the

planet is a resident of Philippines. This page provides Philippines Population

actual values, historical data, forecast, chart, statistics, economic calendar and

news. Content for Philippines Population was last refreshed on Thursday,

December 4, 2014 (http://www.tradingeconomics.com, 2014).

14

http://www.tradingeconomics.com/

GROSS DOMESTIC PRODUCT (GDP)

The Gross Domestic Product (GDP) in Philippines expanded 5.30 percent

in the third quarter of 2014 over the same quarter of the previous year. Philippine

GDP's annual growth rate averaged 5.02 percent from 2001 until 2014, reaching

an all-time high of 8.90 percent in the second quarter of 2010 and a record low of

0.50 percent in the third quarter of 2009. The GDP annual growth rate in the

Philippines was reported by the Philippine National Statistical Coordination

Board.

Actual Previous Highest Lowest Dates Unit Frequenc

y

5.30 6.40 8.90 0.50 2001-

2014

percent Quarterly

15

Services are the biggest sector in the Filipino economy and account for 57

percent of total GDP. Within services the most important segments are: trade,

repair of motor vehicles and household goods (17 percent of total GDP); real

estate, renting and business activities (11 percent); transport, storage and

communication (8 percent); financial services (7 percent) and public

administration, defense and social security (4 percent). Industry accounts for 31

percent of GDP. Within industry, manufacturing (22 percent of total GDP) and

construction (5 percent) are the most important. Agriculture contributes the

remaining 12 percent of GDP. This page provides the Philippines GDP annual

growth rate’s actual values, historical data, forecast, chart, statistics, economic

calendar and news. The Content for Philippines GDP Annual Growth Rate was

last refreshed on Thursday, December 4, 2014

(http://www.tradingeconomics.com, 2014).

B. SOCIO-CULTURAL

Water Supply Drove Electricity, Gas and Water Supply Sector (EGWS)

Growth

16

http://www.tradingeconomics.com/

EGWS posted a minimal growth of 1.2 percent compared to its meager

growth of 0.6 percent growth in last year. Water supply, which accelerated to 9.6

percent from 2.4 percent, was the biggest contributor to the growth of the sector.

Steam, on the other hand, rebounded from a decline of 3.8 percent to a growth of

6.6 percent.

Meanwhile, electricity, which accounts for 84.0 percent of EGWS,

registered a zero growth, which was slower than its 0.7 percent growth in 2013.

The LED industry has a better environment in the Philippines because every year

the rate of population increase and this growing population is enough to engage

those construction companies to build houses, buildings, and condominiums to

provide shelters to the people leave in the Philippines. It is facilitative

environment to businesses as the population increase consumers would increase

too.

17

Retrieved from http://www.nscb.gov.ph, 2014

http://www.nscb.gov.ph/sna/2014/1st2014/2014egw1.asp

Consumers are better educated and well informed and consumers own

discriminating knowledge in choosing of goods and services. Social factors such

as reference groups, family, and social roles and status also impact consumer

behavior. A purchaser’s decisions are also influenced by personal characteristics

such as the purchaser’s age and life - cycle stage, occupation, economic

situation, lifestyle, and personality. An individual’s purchasing choices are further

influenced by four major psychological factors. Four factors consist of motivation,

perception, learning, and beliefs and attitudes.

Similar to general consumer decision-making process as mentioned in the

previous section, furniture purchasing decision process can be divided in to four

steps which are planning and research, shopping, item selection, and store

experience. By understanding key drivers of consumers’ furniture purchasing

18

decision, companies are able to build market share and enhance revenue

through marketing, advertising, and promotion (https://dspace.wul.waseda.ac.,

2012).

C. DEMOGRAPHIC

Population Percentage: Classes A, B, C, D, E

One of the many researches that attempted to determine the social

classes in the Philippines is the 2011 report published by polling firm Social

Weather Stations (SWS) entitled “Family Income Distribution in the Philippines

from 1985 to 2009.″

This report offered insights regarding income classes but was also silent

on the actual description of each class. Still the report is useful for those

interested in knowing how many in the Philippine population belongs to Classes

A, B, C, D or E.

The data from the report are summarized in the table below.

Percentage Distribution of Socioeconomic Classes

19

This SWS survey shows that the high income AB classes represent only

1% of the families in the Philippine population. As expected, they are very, very

few. If we are to translate this percentage into nominal terms, the AB classes

number only 185,000 families.

It can be assumed that each family is comprised of five (5) people, the AB

population of the Philippines is barely 1 million people. The report warns, though,

that this number may appear lower because most AB respondents refuse to

participate in the survey.

Meanwhile, Class C comprises 9%, with class D representing the largest

bulk of families in the Philippines: 60%. Therefore, six (6) out of every 10

Filipinos belong to Class D. Judging by this huge percentage, we can say that

the “masa” population in the country is Class D.

The poorest segment, Class E, also comprises a big chunk. Around 30%

of Filipino families are classified under this class, which undoubtedly confirms

that poverty in the Philippines remains prevalent.

20

Looking at income distribution, the results are also alarming. Despite

comprising only 1% of the Philippine population, income classes A and B own

9% of total incomes in the country. Worse, their income is almost equivalent to

the total income earned by 30% of the families in the Philippines. Very obvious

income disparity, indeed

(http://www.pinoymoneytalk.com/sec-abcde-percentage-population/, 2014).

Due to the economic recovery, increasing spending power of consumers

in the region has been a boon to many industries, including the major household

appliances sector which has managed to bounce back from its weakened

performance of yesteryear.

Gesellschaft für Konsumforschung (GfK) Asia findings across nine Asian

markets: Singapore, Malaysia, Thailand, Hong Kong, Taiwan, South Korea,

Philippines, Vietnam, and Indonesia revealed an exponential increase of 23 and

19 percent respectively in overall sales and volume compared to a year before,

with various markets even registering more than 50 percent growth

(http://www.marketresearchworld.net, 2014).

C. TECHNOLOGY

Three Generation of Lights

Incandescent Bulb

21

Is a lamp in which filament heated by an electric current produces

light rays. It contains chemicals e.g. carbon and has a 750- 1,000

burning hours, it produced more heat and higher wattage.

Compact Fluorescent or CFL

Contains mercury and phosphorus filament. It has a 2,000 to 6, 000

burning hours. The typical luminous efficacy of CFL is 30 to 45

lumen per watt. It has a high wattage and requires ballast and a

starter. It is not recommended for on and off switch because it has

a flicker problem on it.

The Light-Emitting Diode or (LED)

Has a lower energy consumption and longer life span. It can last up

to 6,000- 60,000 burning hours faster switching. It has a greater

durability and reliability and Environment- Friendly, Recyclable, and

Repairable.

Advantages of using LED light are:

Much less energy consumption

Longer lifetime

Durable/ Unbreakable

Lower temperature

22

Faster switching

No mercury content

No UV radiation

Recyclable

Environment-Friendly

Components of LED Bulb:

DIFFUSER - In optics, a diffuser is any device that diffuses or spreads out

or scatters light in some manner, to give soft light.

LED SILICON CHIP - light output

Silicon Chip on Board (SCOB) – the silicon chip is directly mounted

into a circuit board

SMD (Surface Mounted Diode) – one silicon chip, one housing

LED DRIVER - An LED driver is an electrical mechanism which regulates

the power to an LED or string of LEDs. The LED driver reacts to the ever-

changing requirements of the LED or circuit of LEDs by providing a

constant quantity of power to the LED as its electrical properties vary with

temperature.

HEAT SINK - heat sink is a passive heat exchanger that cools a device by

dissipating heat into the surrounding medium.

23

D. POLITICAL, LEGAL, GOVERNMENT FORCES

Philippine Government Electronic Procurements System (PHILGEPS)

Is the central portal of all public procurement activities that provides both

government agencies and suppliers a more open, transparent and competitive

environment. This government agency support the Onlite LED Lighting

Technology International Corporation to their operations in the Philippines also

they have government accounts that support by PHILGEPS.

Import Commodity Clearance (ICC)

This government agency supported the Onlite LED Lighting Technology

International Corporation by having an ICC sticker in their LED products.

Electric power consumption (kWh) in Philippines

Electric power consumption (kWh) in Philippines was last measured at

54422000000 in 2009, according to the World Bank. Electric power consumption

measures the production of power plants and combined heat and power plants

24

less transmission, distribution, and transformation losses and own use by heat

and power plants.

http://www.tradingeconomics.com, n.d.).

F. NATURAL FORCES

By 2015, there will be a power crisis due to the impending threat of El

Niño, which will cause brownouts and blackouts in selected areas here in our

country. It will affect some industry like factories and offices in our country in

consuming electricity. Cutting out unnecessary use of electricity, using more

energy-efficient lights and appliances, and shifting consumption off-peak hours

all help.

El Niño Drying-up Farms

25

Manila, Philippines. Intense heat is drying up farmlands, reservoirs and

waterways all over the country, and farmers are scrambling to find ways to cope

and survive.

The abnormal signs of El Niño, a weather phenomenon referring to the

warmer-than-normal sea-surface temperature in the Pacific Ocean that results in

drought in Asia and Australia and wet winters in the United States, are exacting

their toll in the Philippines, according to agriculture officials.

With the lack of rainfall and irrigation water, Filipino farmers are keeping a

closer watch over their fields so that whatever available water is used wisely.

Huge clumps of light-brown soil have appeared in the corn fields of

Cagayan Valley and Pangasinan, while rice paddies have turned barren in

Isabela, Bulacan, Pangasinan, Ilocos Norte, Camarines Sur, Negros, Davao del

Sur and other provinces.

The desert-like images have prompted some farmers to stop planting to

cut losses. Isabela, Cagayan and other provinces, as well as in the corn-

producing town of Sto. Tomas in Pangasinan and Cauayan City and Ilagan town

in Isabela, have been placed under states of calamity to allow local governments

to use public funds to help the distressed farmers.

http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20100218-253837/El-

Nio-drying-up-farms

26

El Niño is a periodic climate condition that occurs an average of every five

years. It is strongest in the Pacific but has global ramifications. Caused when a

dominate high pressure system over the Pacific collapses, it causes wind

directions and ocean currents in the Pacific to change direction, throwing off

prevailing winds and bringing drought to Indonesia, Southeast Asia, southern

Africa and Australia, heavy rains and floods to Peru and east Africa, typhoons to

Japan, stormy weather to the United States and disruptions to monsoons in India

(http://factsanddetails.com, n.d.).

27

http://factsanddetails.com/

CHAPTER 3

INDUSTRIAL ANALYSIS

A. DEFINITION OF THE INDUSTRY

Venus LED light is becoming one of Philippine’s leading brand of LED

lights. It has a proven track record of helping over 300 companies nationwide and

realizing the business benefits of LED lighting solutions, both indoor and outdoor

lights. VENUS products lines are world-class and cost-effective, thus, bringing

leverage to the company.

LED are high quality, long-lasting, affordable LED lights, which use the most

cutting-edge technology in LED. All LED series of Venus have international

certifications of ROHS, CE, etc.

28

International partners

ROI (Industry)

ROI= NET INCOME x 100

TOTAL ASSETS

ROI= 503,708 x= 100

20,439,402

29

= 2.46%

INDUSTRY TRENDS

According to the report of LED inside, LED street lighting packaging

market value of $12.5 billion in 2013, will reach $13.39 billion in 2014, annual

growth rate of 7%. The LED market in 2014, is still given priority to with tablet

and smart phone backlight application, lighting applications in engineering,

business, outdoor lighting market growth, the most significant. LED inside

compiled in 2014 is worth to pay close attention to the LED application market six

big change:

1. The TV backlight limited growth momentum in the future.

According to statistics, the LED used in TV backlight penetration will reach

95% in 2013. Affected by the saturated permeability and terminal TV sales

growth slowing, LED to 2014 TV backlight production will face down for the first

time.

2. The tablet is still the backlight market the main growth momentum.

Tablets in 2013 influenced by the traditional low season, plus access

inventory level is high, in the third quarter than expected delivery, shipment for

the whole year was revised down to 196 million units, annual shipment growth

fell to 31.1% from 33.6% forecast earlier this year, visible tablet shipment has a

little cool, although the future tablet growth slowing in the rate, but compared with

30

other IT products still has great room for growth. Estimates from 2013 to 2017

LED to the tablet backlight application value compound annual growth rate of

8%.

3. The iPhone 5s dual LED FLASH design adds imagination space.

Flash LED 2013 due to price too fast, the overall output forecast increase

only 3%. Additional value to increase the phone’s camera phone manufacturers,

Apple is on the iPhone 5s, import “True tone flash” technology. Also is to use

dual LED Flash as a fill light purpose, with a white light LED Flash architecture,

add a warm color LED make up the color temperature difference, the design of

the double star LED Flash is expected to push up again the Flash LED, the total

demand in 2013 using the number will grow 27.3% to 1.44 billion, 2014, 1.7

billion. The LED inside still looking at other manufacturers will follow up, the

future FLASH LED the market still has great imagination.

4. Small spacing LED display technology mature gradually.

LED display, except for the purpose of the original signal and display

advertising LED, LED display manufacturers began to small spacing. Now

launched by the makers of the LED small spacing LED display pixel pitch

minimum of 1.2 ~ 1.2 mm, it has good color saturation, high resolution, etc.

Especially in the 110 – inch monitors on the market, the cost is far less than the

31

size of the LCD screen. In the long run, is likely to replace part of TV backlight

pattern is applied into the commercial and mass consumption.

5. Business, engineering, outdoor lighting market demand rise.

If observations LED lighting market, LED applications will be encapsulated

in the lighting market, 2014 annual production would increase greatly, of which

the most engineering, commercial, outdoor market growth significantly. Coupled

with the LED bulb lamp, lamp and commercial lighting market demand rise, the

Power LED (Mid Power LED) market demand, especially for encapsulation type

such as 5630, 3030, has been the mainstream market. LED inside Power LED

production forecasts for 2013 and 2013 years will be beyond the High Power

LED, High Power LED).

6. Backlit emerging with general LED lighting specifications.

Due to the lighting market price competition is intense, since the

introduction after 5630 specifications, price is higher than the traditional high

power LEDs and widely popular with lamps and lanterns manufacturers. So

the LED street lighting manufacturers began to think of some way to launch a

more cost-effective products than in 5630. Since the Japanese packaging,

launched the 3030 757 series of specifications of packaging products,

overwhelming market response, so in the second quarter of 2013 many vendors

32

offer the product specifications, and 2835 with high current characteristics, also

packaging manufacturer in China, gradually not only can be used in backlight

market, also can be used in lighting market, also favored by customers. LED

inside poll, with 3030 (0.5 ~ 0.9 W), 2835, 5630, compared with 1 ~ 3 W LED,

3030 encapsulated ratio of the best, the most competitive price advantage, in the

third quarter of 2013 has reached usd 0.12 ~ 0.16. Expected future packaging

will replace 3030 with 2835 5630 will become the mainstream in the market.

(http://www.lighting-ledlight.com/index.php/there-will-be-six-changes-for-led-

lighting-industry-in-2014/)

B. INDUSTRY PROBLEM

Most of the LED customers react on the Heat emitted by the product.

Consumers seem to relate the warmth of the Product in its excessive usage in

term of electricity. Most of the consumer tends to defy using LED products since

they have the impression that LED is expensive compared with other brand but in

terms of consumption of electricity it is energy efficient and it large life span

compared to incandescent lamp.

First, since the presence of heat issues, it shows LED lighting does not

maximize the light energy into light energy, not even as an ordinary fluorescent

lamps; Second, since the LED’s heat production is high enough to affect the

33

angle of the heat, the temperature can be seen in general. Led light on what kind

of materials can withstand heat up to tens of thousands of hours of baking. Of

course there will still such a high quality materials, but the price would be

prohibitive;

Third, on life issues, is actually very simple, LED chip the heat will affect

the life of the LED light source itself, resulting in bad light; addition, LED lamps

will also affect the life of PCB driver board.

34

CHAPTER 4

COMPANY ANALYSIS

A. HISTORY-V-M-G

Onlite LED Lighting Technologies International Corporation was founded in

2009 in Hong Kong and is the exclusive distributor of Venus LED lights. Today,

Venus is becoming one of Philippine’s leading brand of LED lights. It has a

proven track record of helping over 300 companies nationwide and realizing the

business benefits of LED lighting solutions, both indoor and outdoor lights.

Venus products lines are world-class and cost-effective, thus, bringing leverage

to the company.

Aside from Venus LED lighting solutions, Onlite also offers a comprehensive

option of commercial lighting products with features of modernization,

architecture and energy conservation using CREE led chips. CREE is the

leading LED chip brand worldwide which has continually exceeded the industry

standards for brightness and efficiency.

Onlite is continuously adapting to the changes of the LED lighting revolution

through the use of innovative, modern, energy efficient and

35

Environmentally friendly LED lighting solutions that will empower the lives of

each one of us. The company's LED lights are made to be perfected. “Join the

Revolution.”

MISSION

To provide high quality products that combine performance with value

pricing, while establishing a successful relationship with the customers and

suppliers a safe and a healthy environment.

VISSION


innovative quality and services and that enable customers' success and provide

a healthy environment.

B. OWNERSHIP/ Management

Michael Angelo Earl Uy a Filipino- Chinese business man and franchiser of

Jollibee Fast food is the owner of Onlite. The company was established in the

spirit of joyfulness and strictly follows global standards as it operates with

principals based in Hong Kong, the exclusive distributor of Venus LED lights. The

company promotes harmony and people development that establish a well core

group.

36

C. CULTURE

The vision statement represents what the company wants to become after a

period or merely the goal that the company wants to achieve in its operation. The

vision and mission statements are the first step strategic management since it

provides direction for all planning activities.

VISION


innovative quality and services and that enable our customers' success and a

healthy environment.

MISSION

To provide high quality products that combine performance with value pricing,

while establishing a successful relationship with our customers and our suppliers

a safe and a healthy environment.

TIME KEEPING AND ACCURACY

We strongly believe that the speed of accuracy have to be balanced in track.

Our young team is trained well to improve their speed day by day with 100%

accuracy and flexible enough to work extra time even in non-working days to

complete the project in stipulated setting benchmark continuously with integrated

37

process and interaction between committed team members to ensure that quality

levels are high from the initial stage of a project to its final outcome.

INTEGRITY AND CODE OF CONDUCT

Flexible process to meet client’s business style and to build trust based

relationship.

It is our policy not to disclose any information about our clients to any other

person or organizations. The information we receive will be used only for which

our client provided to us.

LEADERSHIP AND TEAM

We are a company with diverse talents and skills. Our leadership structure

offers a dynamic atmosphere in which talented, creative and motivated people

thrive. We don’t just acknowledge hard work and achievements; we reward it

and groom it.

We have an experienced team of ambitions, vibrant young professional

having ability to update with latest trends and requirement of our client.

Our team’s passion is to take challenges and to deliver to clients

expectations is to take challenges and to deliver to clients expectations.

38

D. ORGANIZATIONAL STRUCTURE

39

President

Angel Uy

Marketing Manager

Phio Jarlego

Sales Manager

Mia Myra Celderon

Sales Agent

Diane

Sales Agent

Lek

Sales Agent

Verna

Sales Agent

Ronnie

Sales Agent

Dexter

Sales Agent

Irene

Operational Manager

Human Resource

Onlite LED Lighting Technologies International Corporation human

resources is the most important part of the company. Being valued as the most

important, the management promotes productive and harmonious environment

amongst the members of the whole company. HR department consistently

attends to several development experiences for the employees such as

meetings, trainings and promotions. With its task to hiring quality individuals, it

also reinforces positive overall system on performance evaluation and other

human resource issues to maintain satisfied internal customers, the employees.

Strategies

Onlite LED Lighting Technologies International Corporation being the sole

distributor-dealer of Onlite and Venus Lights in the Philippines strategizes to

maintain its competitiveness by adapting to its evolution and advancement

through technology by Creed chip on Venus item.

E. MARKETING MIX

1. MARKET

40

Delivery

Arvin

Cashier Admin

J.R

Technical

July & Jaynald

Inventory

Jerome, Jho & R.J

The company's target market are the corporate and government accounts.

There are instances where customers instead of buying the most expensive and

branded lights, they would opt to buy the entry level of Venus lights which is at

par with high quality of Light products with almost the same price.

2. TARGET MARKET

The target market of Onlite LED Lighting Technologies International

Corporation are those corporate and government industry and also the

Household purchaser.

3. PRODUCT/ SERVICE

VENUS BULB

MR-16

41

VENUS CORN BULB

VENUS T8

VENUS PANELLD-PL

42

VENUS FLOOD LIGHT

VENUS STREET LED CL1

VENUS STREET LED CL2

43

VENUS HIGH BAY LED LIGHT

LED MODULE/ VENUS 5050

VENUS LED STRIP LIGHT

LED POWER SUPPLY

44

(OUTDOOR, WATER PROOF)

LED POWER SUPPLY INDOOR

45

SERVICE OFFERED

Wholesale of LED lighting products

Retailer of LED lighting products

Ocular visit (For best recommendations)

ROI (Return of Investment) analysis

Warranty and for Replacement

After Sales Support/ Tech support

46

4. PRICE

47

5. PROMOTION

1st Quarter

(January- March)

Product launching New Product line for Venus and

Mage held at hotels

Tarpaulin Update new Tarpaulin for show room

and billboard

Loyalty Certificate Certificate for recognition for our past

clients

Discount Mark down price discounts for old

stocks Onlite and Venus item

Buy 1 take 1 For old stock Onlite and Venus items

(Valentines Promo)

2nd Quarter

(April-June)

Refreshers Program Appreciation for the old clients with

recognition and certificate’s

49

Summer Special

Discounts

Special discount for summer season

for Onlite and Venus items

Engineer’s Program Product Orientation

3rd Quarter

(July-September)

Umbrella Give away Worth 1,000 php single receipt

Bazaar Selling Onlite and Venus items

Rainy Day’s Special

Discount

Special discount for rainy season for

Onlite and Venus items

4th Quarter

(October-December)

Halloween Special

Discounts

Special discount for Halloween

season for Onlite and Venus items

Christmas Promotion Special discount for Christmas

season for Onlite and Venus items

Bazaar Selling Onlite and Venus items

50

6. CHANNELS OF DISTRIBUTION

Onlite LED Lighting Technologies International Corporation is an

international company producing LED Lights in the Philippines competing with

other Lighting companies. Since produces wide range of products and having

one branch in the Philippines, the company use distributor to retailer to customer

kind of distribution. It is the common and traditional channel of distribution. After

the manufacturing the products from Hong Kong, the company sells it to the

wholesalers, who turn sells it to retailers and retailers sell it to ultimate

customers.

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Manufacturer

Distributor

Retailer

Ultimate Customer

7. COMPETITION

Firefly Electric & Lighting Corporation (FELCO)

It was established in 2001 to engage in the marketing and sale of various

lighting and electrical products in the Philippines.

Fumaco

In a span of 30 years, Fumaco has passionately grow from a lighting

supplier to a lighting solution provider.

Akari

Akari Lighting and Technology Corporation is the exclusive distributor of Akari

lighting, electrical and energy products. We have a nationwide distribution

network of major department stores, depots and hardware stores nationwide.

F. OPERATIONAL/ PRODUCTION

Onlite LED Lighting Technologies International Corporation is a sole

distributor- dealer of Onlite and Venus items here in the Philippines. The product

its sells are. It is given allocation plan per quarter in a year which determines the

number of LED Lights for Onlite and Venus items to be sold in the country. The

product comes from Hong Kong, the order takes 60 days before to arrive in the

52

Philippines. From the inventory stocks it takes 7 days to process the delivery

from the clients. The number of stocks depends on the items number sold every

quarter.

CAPACITY

The productivity and profitability of LED Lights is dependent on the

production efficiency and advance technology of the Venus led lighting, as

reflected in its capability to produce high quality LED Lights at reasonable and

stabilized prices.

PROCESS

Onlite LED Lighting Technologies International Corporation received their

products from Hong Kong, China. Delivery time of the products from China to the

company takes seven days if there is still stock but if they are out of stock, it will

take sixty days.

QUALITY

Venus LED are high quality, long-lasting, affordable LED lights, which use

the most cutting-edge technology in LED. All LED series of Venus have

international certifications of ROHS, CE, etc.

53

TECHNOLOGY

Aside from Venus LED lighting solutions, Onlite also offers a

comprehensive option of commercial lighting products with features of

modernization, architecture and energy conservation using CREE led chips.

CREE is the leading LED chip brand worldwide which has continually exceeded

the industry standards for brightness and efficiency.

RESEARCH AND DEVELOPMENT

It has continuously innovated its products through intensive research and

product testing. It has carefully sourced out raw materials from different

countries. They develop their own design through rigorous product testing that

pass through strict quality control.

H. FINANCIAL PERFORMANCE

Ratio 2012 2013

Growth Ratio

Sales 0.330 0.494

Profitability Ratio

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ROA 0.008 0.024

ROE 0.111 0.182

Gross Margin 0.234 0.436

Liquidity Ratio

Current Ratio 2.600 1.723

Quick Ratio -2.265 -0.877

Leverage Ratio

Debt Ratio 0.384 0.580

Debt to Equity 5.000 4.300

Efficiency Ratio

Inventory Turnover 1.427 0.800

Total Asset Turnover 0.183 0.393

Fixed Asset Turnover 2.304 4.360

TOTAL 10.316 12.425

55

Growth Ratio

Revenue Growth = (Revenue Present Year - Revenue previous year /

Revenue previous year

a. Profitability Ratio

Return on Assets = (Net Income / Assets)

Return on Equity = (Net Income / Owner’s Equity)

Gross Margin = (Gross Profit / Sales)

b. Liquidity Ratio

Current Ratio = (Current Assets / Current Liabilities)

Quick Ratio = (Inventories – Current Assets) / Current Liabilities)

c. Leverage Ratio

Debt Ratio = Total Liabilities / Total Assets

Debt to Equity = Total Liabilities / Total Equity

d. Efficiency Ratio

Inventory Turnover = (Sales / Inventory)

Total Asset Turnover = (Sales / Total Assets)

Fixed Asset Turnover = (Sales / Non Current Assets)

56

CHAPTER 5

STRATEGY FORMULATION

A. Input Tools

1. EFE Matrix

Key External

Factors

Weight Rating Weighted

Score

Opportunities:

Increased of

population and

household

0.10 3 0.6

Potential in

construction

companies

0.5 4 0.2

Increased of

outdoor lighting

market

0.10 3 0.6

Continued 0.5 2 0.2

57

expansion of online

sales

Potential in having

a new branch

0.10 3 0.3

Threats:

Competition against

top players

0.20 3 0.6

Products are

already sold by

major competitors

0.10 3 0.3

Power Shortage 0.15 4 0.6

Change in terms of

buying behavior of

the consumer

0.05 4 0.2

Consumption of

electricity

0.10 3 0.3

Total 1 3.9

58

Legend:

Rating: 1 = Poor 2 = Average 3 = Above Average 4 = Superior

Weight: 0.0 = Low Importance 1.0 = High Importance

The total weighted score of 3.9 indicated that Onlite LED Lighting

Technologies International Corporation is in the above average response in its

effort to pursue strategies that capitalize on external opportunities and avoiding

or minimizing threats.

2. CMP Matrix

Onlite LED Lighting

Technologies International

Corporation

Fumaco Inc. Akari

Critical

Success

Factors


Score

Rating Weighted

Score

Rati

ng

Wei

ght

ed

Sco

re

Product 0.2 4 0.8 4 0.8 4 0.8

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Quality

Access to

raw materials

0.2 3 0.6 4 0.8 4 0.8

Distribution

Network

0.15 3 0.45 4 0.6 4 0.6

Price 0.12 4 0.48 3 0.36 3 0.36

Sales Force

Effectiveness

0.1 4 0.4 3 0.3 4 0.4

Company’s

Reputation

0.08 4 0.32 4 0.32 4 0.32

Advertising 0.15 3 0.45 4 0.6 4 0.6

Total 1 3.5 3.78 3.88

Legend:



The competitive profile matrix shows the weaknesses of Onlite LED

Lighting Technologies International Corporation compared to its competitors in

60

the Lighting industry. There is a list of critical success factors that are

enumerated above. The main purpose of this tool is to identify and focus on weak

factors of the company in order to formulate strategies to address these, thus

improving its competitiveness in the industry.

The company’s overall weighted score of 3.5 indicates that a relatively

competitive position in the Lighting industry is maintained but it has to improve its

distribution network and advertising, which are the company’s most prominent

weakness.

3. IFE Matrix

Key Internal

Factors


Score

Strengths:

World-class

product lines

0.10 4 0.4

Modern

Technology on

0.20 4 0.8

61

Chips

Dedicated &

Hardworking

personnel

0.10 4 0.4

Ability to sell

products online

0.10 3 0.3

Highly visible

website

0.05 4 0.2

Weaknesses:

Longer time for

products to

arrive

0.10 3 0.3

Only one (1)

showroom

0.05 3 0.15

Less

Advertisement

0.05 3 0.15

Limited Stocks 0.15 3 0.45

Competitors can

offer same

0.10 3 0.3

62

products quickly

Total 1 3.45

Legend:



An internal assessment of Onlite LED Lighting Technologies International

Corporation shown above in the Internal Factor Evaluation Matrix. The total

weighted score of 3.45 indicates that the company is above average in its overall

internal strength.

B. Matching Tools.

63

1. SWOT Matrix

Strengths Weaknesses

S1 Ability to sell products

online.

S2 World-class product lines.

S3 Modern Technology on

Chips.

S4 Dedicated & Hardworking

personnel.

S6 Highly visible website.

W1 Longer time for products to

arrive.

W2 Only one (1) showroom.

W3 Less Advertisement.

W4 Competitors can offer same

products quickly.

W5 Limited Stocks

Opportunities Threats

O1 Increased of population and

household.

O2 Potential in construction

companies.

O3 Increased of outdoor

lighting market.

O4 Continued expansion of

T1 Competition against top

players.

T2 Products are already sold

by major competitors.

T3 Power Shortage.

T4 Change in terms of buying

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outsourcing sales.

O5 Potential in having a new

branch

behavior of the consumer.

T5 Consumption of electricity

2. BCG Matrix

STAR

(High Growth, High Market Shares)

Strip Light

COW

(Low Growth, High Market

Shares)

Venus Bulb

65

DOG

(Low Growth, Low Market Share)

Venus Flood Light

QUESTION MARK

(High Growth, Low Market

Shares)

High Bay

3. IE Matrix

The IE matrix is a combination of EFE and IFE matrices used to provide

more effective and appropriate organizational strategy.

The IFE Total Weighted Score

Strong Average Weak

66

3.0 to 4.0 2.0 to 2.99 1.0 to

High

3.0 to 3.99

Medium

2.0 to 2.99

Low

1.0 to 1.99

Onlite LED Lighting Technologies International Corporation falls in a cell II

which is described as grow and build. Strategies that are most appropriate with

these division is intensive (market penetration, market development, and product

development) and integrative (backward integration, forward integration and

horizontal integration).

Because Onlite LED Lighting Technologies International Corporation is in

rapid-market-growth industry, strategies such as market development, market

penetration and product development are first option that should be considered

4. GS Matrix

The Grand Strategy matrix is a popular strategy formulation tool that uses

two evaluative decisions: Market growth and competitive position in a matrix.

67

III II

IOnlite LED

Lighting

The EFE Total Weighted Score

VIV IV

IXVIIIVII

C. Matrix Summary

Strategy BGC IE GS Total

68

Quadrant IIMarket DevelopmentMarket PenetrationProduct Development.Horizontal integrationDivestitureLiquidation

Quadrant IMarket DevelopmentMarket PenetrationProduct DevelopmentForward IntegrationBackward IntegrationHorizontal IntegrationConcentric Diversification

Quadrant IIIRetranchementConcentrique DiversificationHorizontal DiversificationConglomérat Diversification DévestitureDévestitureLiquidation

Quadrant IVConcentrique DiversificationHorizontal DiversificationConglomérat Diversification Joint-Venture

Rapid Market Growth

Weak Competitive

Position

Slow Market Growth

Strong Competitive

Position

Intensive Strategies

Market Penetration X X X 3

Market Development X X X 3

Product Development X X X 3

The Matrix Summary shows that intensive strategies of market penetration,

market development and product development are appropriate for Onlite LED

Lighting Technologies International Corporation. Onlite LED should find ways to

possibly increase its market share through improved marketing efforts, especially

that there is potential growth in the market because of existing external factors.

D. SWOT Summary

STRENGHTS

Ability to sell products online.

World-class product lines.

Modern Technology on Chips.

Dedicated & Hardworking personnel.

Highly visible website.

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On the strengths, Onlite LED Lighting Technology International

Corporation has been effective in its modern technology.

Customers can contact Onlite ED Lighting Technologies International

Corporation through their website and they can sell online using their service

guestbook, which you can find on their website (www.onlite.com) which have a

58% of their total sales of the company

WEAKNESSES

Longer time for products to arrive.

Only one (1) showroom.

Less Advertisement.

Competitors can offer same products quickly.

Limited Stocks

On the weaknesses, Onlite LED Lighting Technologies International

Corporation has been encountering problems regarding limited stocks.

THREATS

Competition against top players.

70

Products are already sold by major competitors.

Power Shortage.

Change in terms of buying behavior of the consumer.

Consumption of electricity

On the threats, Onlite LED Lighting Technologies International

Corporation focuses on its Competition against top players and Power Shortage

when it comes to its dangers that will confront the business.

OPPORTUNITIES

Increased of population and household.

Potential in construction companies.

Increased of outdoor lighting market.

Continued expansion of inline sales.

Potential in having a new branch.

On the opportunities, Onlite LED Lighting Technologies International

Corporation focuses on potential to having a new branch which has can locate on

visayas when it comes to its strategies.

CHAPTER 6

71

STRATEGY IMPLEMENTATION

A. Recommendation

Based on the research conducted by the proponents, the following

Recommendations are given:

Focus and concentrate on the fast moving product.

Maintain the loyalty of the customers through by Loyalty Privilege

Card

Enhance marketing activities for average sales products through

location development.

B. Objectives

a. Short-run

Onlite LED Lighting Technologies International Corporation aims to add

more promotion to penetrate its market to have more sales. This means they

must focus on their stronger products or their best seller and establish product

72

differentiation to have its new markets. This will eventually leads to high sales

turn out.

b. Long-run

Onlite LED Lighting Technologies International Corporation aims to be one of

the top players in the lighting industry. This could be done by adding more

branches around Philippines. By doing this program, the distribution process will

able to focus on different areas and can sell the same product and compete with

other companies.

C. Functional Strategies

73

Strategy Objectives Plans/Programs

Product Promotion To introduce and present

information to consumers

To increase demands

To penetrate new market

To focus enhancing the

product toward its consumer

that will eventually lead to

high sales.

To focus selling efforts to

retailers (Hardware) and

ensure their loyalty.

Billboard and

Advertisements.

Loyalty Privilege

Card

To promote the company

through by using privilege

card

Loyalty Card

74

To maintain the loyalty of

clients and customer

Location

Development

Expanding territorial power.

Increasing the areas

corresponding distributors

Adding

branches

75

PROGRAM TITLE: Product Promotion

OBJECTIVE: To focus enhancing the product toward its consumer that will

eventually lead to high sales also focus on selling efforts to retailers (Hardware)

and ensure their loyalty and releasing for reseller and distributor’s program

Expected Output: Increase sales by 5% (P 16, 733.96)

Details of the Program:

ACTIVITIES TARGET RESPONSIBILITY OF

Billboard and Advertisements

Radio Advertisement

Commercial,

Households

& Retailers

Marketing Department

and Sales Department

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Projected Incremental

Projected Incremental Revenue : P 176,733.96

Budget Incremental Cost : P 160, 000.00

Incremental Savings : P 16,733.96

Estimated Budget:

Manpower P 15, 000

Operational Expense:

Billboards & Advertisement P 80, 000

Radio Advertisement P 65,000

TOTAL Expense: P 145,000

Total Budget P 160,000

77

PROGRAM TITLE: Loyalty Privilege Card

OBJECTIVE: To maintain the loyalty of clients and customer

Expected Output: Increase sales by 2% (P 9, 096.79)



Loyaty Card Households,

Clients

& Retailers

Marketing Department

and Sales Department

78


Projected Incremental Revenue : P 35, 346.79

Budget Incremental Cost : P 26, 250

Incremental Savings : P 9, 096.79

Estimated Budget:

Manpower P 10, 000

Operational Expense:

Materials for the card P 16, 250

Total Budget P 26,250

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PROGRAM TITLE: Location Development

OBJECTIVE: Expanding territorial power by increasing the areas corresponding

distributors.

Expected Output: Increase sales by 25% but decrease in terms of cash flow

because of the investment amounting P 1, 959, 000.



Adding branches Household,

Contractor &

Retailers

Management


Projected Incremental Revenue : P 883, 669.82

Budget Incremental Cost : P 2, 616, 500.00

Incremental Savings : P (1, 732, 830.18)

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Estimated Budget:

Manpower P 500, 000

Facilities and Equipment:

Office Supplies P 5, 000

Office Table P 1,500

Table P 3,000

Couch P 10, 000

Front Desk P 6, 000

Guard Desk P 2, 000

Cabinet P 1, 000

Locker Room P 12, 000

Office Chair P 500

Delivery Van P 700, 000

Total Equipment P 741, 000

Appliances:

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Air con P 100, 000

Computer & Printer P 80, 000

Cashier Machine P 30, 000

Telephone P 2, 000

Fax Machine P 5,000

Water Dispenser P 1,000

Total Appliances P 218, 000

Total Facilities |& Equipment P 959, 000

Operating Expense:

Building P 1, 000, 000

Government Requirements P 7, 500

Rent Expense P 100, 000

Utilities Expense P 50, 000

Operational Expense P 1,157,500,

P 2,616,500

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