CTSI Logistics (Philippines) Inc.

This strategic management paper is for CTSI Logistics (Philippines), Inc. This paper ultimately attempts to provide CTSI with a strategic plan through the recommendation of competitive strategies that, on basis of various frameworks used, will allow the company to compete in the local market for its services. In terms of addressing market needs, the company is under the logistics services industry. The general need being addressed is the need for of having an inventory management, transport which includes freight forwarding, warehousing and, process planning and design. Through the use of Porter\u27s Five Forces Model, the paper provides an analysis of the company\u27s task environment by examining the competitive forces affecting the industry. As discussed in this paper, this industry is currently characterized by the customers, suppliers, threat to entry with high barriers to entry, threat of substitutes, and intensity of rivalry. The paper listed the following opportunities: the improvement in income as indicated in the growth of GDP and GNP the increasing number of SME that needs logistics services the lifting of the garment quota under the trade liberalization in Asia. On the other hand, the following threats were cited: the inflation in the economy the prudent spending due to economic uncertainties and political instability increasing number of businesses the same with CTSI Logistics, Inc. that are being established near the airport and seaport In attempting to determine the various strategic groups existing within the industry, we have identified geographical coverage and scope of logistics services as the two most important strategic dimensions that influence players in the formulation of strategies within the industry. The strategic map reveals that the industry players may be categorized in five (5) strategic groups in terms of the aforementioned strategic dimensions. An internal analysis of the Company was likewise performed. Using financial analysis, the company has sufficient equity and resources to finance its planned activities in 2005 onwards.. Using Value Chain Activities, the following Primary Activities need to be improved on its infrastructure