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E. Distribution Channel Types of Distribution Channel Size Importance

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0% found this document useful (0 votes)
66 views5 pages

E. Distribution Channel Types of Distribution Channel Size Importance

Uploaded by

Janine Madriaga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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E.

Distribution Channel
Types of Distribution Channel Size Importance
Direct sales There is an estimate of 500 000 This distribution channel can easily
customers to sell out our product communicate and attract customers
to buy the product we offer.
Web E-Commerce (Online There is an estimate of 450000 We can have customers throughout
Websites) customers the country and can offer the
product to a variety of people
OEM There is an estimate
Manufacturers representative
Brokers
Direct Mail

F. Macro Environment Situation


Demographic Trend
The population density of the Philippines is high, but the distribution of the population is uneven. Manila has
more number of population size compared to other provinces. The 2019 population is 108.11 million, according
to the latest UN estimates (see details at http://worldpopulationreview.com/countries/philippines-population/)
Economic Trend

The
Philippines' economy is considered one of the most dynamic economies in East Asia and the Pacific. In 2018,
GDP growth remained high at 6.5% and expected to slightly rise to 6.6% for 2019 and 2020 by the IMF.
However, Coface estimated lower rates of 6.3% in 2018 and forecasted 6.5% in 2019. Key economic drivers
include solid fundamentals, a competitive workforce, a stable job market, steady remittances, and investment in
the construction sector (World Bank).

The Philippines' public deficit was moderate at 1.1% of GDP in 2018; it is expected to rise slightly to 1.5 and
1.4% in 2019 and 2020, respectively. Public debt also remained at a reasonable 39.8% of GDP in 2018 and is
expected to decrease to 39.2% in 2019 and 38.6% in 2020. The inflation rate did increase from 2.9% to 4.9% in
2018 but is projected to decrease by the IMF to 4% in 2019 and 3.3% in 2020. Domestic consumption is
expected to remain the main driver of the economy, accounting for 70% of GDP. Institutional reforms are
needed in business freedom, investment freedom, and rule of law, according to the Heritage Foundation.
Despite the populist views of President Rodrigo Duterte and the initial risks of policy instability and decrease of
investment during his mandate, the continuity of liberal economic reforms established confidence as the
investment hit record levels for the last two decades. Duterte's administration wants to reduce the poverty rate to
17% and expects the economy to reach upper-middle income status by 2022. President Duterte has also
launched a violent campaign against drug crime and distanced The Philippines from the U.S. to strengthen
relations with China. He has also imprisoned critics of his presidency.

The unemployment rate remained at 5.5% in 2018 and identical levels are expected in 2019 and 2020 by the
IMF. However, inequality in wealth distribution keeps increasing and underemployment hovers at 18% of the
employable population. The country's Labour Force Participation Rate also decreased to 60.1% as of June 2018
(CEIC). The population living below the poverty line has increased in recent years (33% of the population and
75% in some areas of the southern Philippines).

Agglomeration and urban efficiency


The country’s major growth centers, namely, Metro Manila, Metro Cebu, and Metro Davao, are faced with the
following urban challenges:
a. Traffic congestion in major roads. Traffic volume has already exceeded road capacities in urban road sections
of Metro Manila. Influx of investments, poor traffic enforcement, illegal parking on streets, and outdated traffic
signals have also contributed to road congestion in Metro Cebu and Metro Davao.

b. Lack of mass transit system. This has contributed to road congestion in the metropolis. An unreliable mass
transit system forces people to use private vehicles to reach their destinations. The absence of a railway system
for goods and passengers also affects the metropolitan centers’ ability to sustain its economic growth.

c. Encroachment into hazard-prone areas. As of 2010, the number of informal settler families in Metro Manila is
more than half a million, about 20 percent of its total households. Most of these informal settlements are located
in hazard-prone areas (Refer to Chapter 12).

d. Exposure to natural hazards. The Valley Fault System of Metro Manila makes the region and its surrounding
provinces prone to earthquake-related hazards (e.g. faulting rupture, ground shaking, liquefaction, tsunami, fire,
and landslide). Flood is also common in metropolitan centers due to poor drainage system. Metro Cebu is
highly susceptible to flooding and storm surges while portions of Metro Davao are highly susceptible to
flooding as well as rain-induced landslides
e. Increasing demand for water and energy. Growth entails higher demand for water and energy. Efficient and
sustainable power generation and distribution as well as water resource management will thus be important.
(see details at http://www.neda.gov.ph/wp-content/uploads/2018/03/SER-Chap-03_as-of-March-21.pdf)

Technological Trend
There is a rapid technological trend that centralize human actions and communications. Most companies
and individuals are into technology -- phones, laptop, computer, machinery and other kinds of technology.
Thus, there are advance technology to help all people to ease their work or to help them with their job and task.
Most people are equipped by technology and they use it with their daily lives. Especially internet, social media
which are used by different generation.

Even children tend to have gadgets by their selves. In this case, people are expecting for more innovation of
technology that benefits them for good. Until now, our industry has spoken about innovative technologies
somewhat theoretically, without providing a clear picture of how these powerful new innovations will be used.
This has left people without a solid understanding of how they will ultimately manifest in our work and
personal lives. Think analytics, machine learning, artificial intelligence, blockchain, and containers, just to
name a few.

That’s starting to change. The application of game-changing technologies is becoming more pervasive and their
adoption is growing steadily. I believe that they’ll be firmly embedded in many of the core processes and
technologies we use, within the next 3-5 years.

One reason that adoption is increasing, is an improved understanding of how and where to use such
technologies. And of course, we’re also seeing growth in the number of skilled people who know how to
leverage them.

Political/Legal Trend

Business Contract
General Observation
The non-observance of contracts is frequently a problem. They are sometimes renegotiatied unilaterally, and
the law is ineffective for guaranteeing their application.
Language of Domestic Contract
English (or Filipino).

Intellectual Property
National Organisations
The organization responsible for the protection of intellectual property in the Philippines is the Intellectual
Property Office of the Philippines.
In June 2011, IPOPHL launched its IPR Arbitration and Mediation Center to receive and facilitate IP disputes
presented to the center for review, resolution, and settlement through mediation and arbitral proceedings.
Regional Organisations
Harmonization within the ASEAN and the APEC
International Membership
Member of the WIPO (World Intellectual Property Organization)
Signatory to the Paris Convention For the Protection of Intellectual Property
Membership to the TRIPS agreement - Trade-Related Aspects of Intellectual Property Rights (TRIPS)
 

National Regulation and International Agreements


Type of property and law Validity International Agreements Signed
Patent 20 years Patent Cooperation Treaty (PCT) 
 
Rules and Regulations on Inventions
Trademark 10 years, renewable every 10 years
 
Law on Trademarks, Service Marks
and Trade Names
Copyright During the lifetime of the author and 50 Berne convention For the Protection
  years after his death Literary and Artistic Works
Convention for the Protection of
Producers of Phonograms Against
Unauthorized Duplication of Their
Phonograms
Rome ConventionFor the Protection
Performers, Producers of Phonogram
and Broadcasting Organizations
WIPO Copyright Treaty
WIPO Performances and Phonogram
Treaty
Industrial Models 5 years, renewable twice  
 
 

Legal Framework of Business

Equity of Judgments
Equal Treatment of Nationals and Foreigners
To a large extent, foreign nationals can expect an impartial trial from the country’s judicial system.
The Language of Justice
The Philippines have two judicial languages: Filipino and English.
Legal Similarities
The main source of the law is the constitution of 1987. The country’s legal system is based on Spanish and
Anglo-American law. The Philippines accept compulsory ICJ jurisdiction though with reservations.
 
The Different Legal Codes
 
Civil Code Civil law  
Supreme Court The Supreme Court is the highest Court in theCriminal
Criminal Code Philippines.
law There is only one Supreme
Court composed of one Chief Justice and fourteen Associate Justices. It is the final arbiter
LabourofCode
any and all judicial issues. When so deciding,Labour
it may law
sit en banc or in divisions of three,
Corporation Code five or sevenCommercial
members. law
Court of Appeal BusinessALaws
special court, the Sandiganbayan, Consult
composed of a Business
Doing PresidingWebsite
Justice and eight Associate
Justices, has exclusive jurisdiction over violations of the Anti-Graft and Corrupt Practices
Act [Republic Act No. 3019], the Unexplained Wealth Act [Republic Act No. 1379] and
other crimes or felonies committed by public officials and employees in relation to their
office, including those employees in government-owned or controlled corporations.
Regional Tribunal Regional Trial Courts were established among the thirteen regions in the Philippines
consisting of Regions I to XII and the National Capital Region (NCR). There are as many
Regional Trial Courts in each region as the law mandates.
Metropolitan Tribunal Municipal Trial Courts in the towns and cities in the Metropolitan Manila area, as
distinguished from the other political subdivisions in the Philippines, are referred to as
Metropolitan Trial Courts. 

In cities outside Metropolitan Manila, the equivalent of the Municipal Trial Courts are
referred to as Municipal Trial Courts in Cities.
Municipal Tribunal Every municipality in the Philippines has its own Municipal Trial Court. It is referred to
as such if it covers only one municipality. Municipal Circuit Trial Court if it covers two or
more municipalities.
Municipal Circuit Tribunal Municipal Circuit Trial Court are so named if they covers two or more municipalities.
Special Tribunal: Court of A special court, the Court of Tax Appeals, composed of a Presiding Judge and two
Tax Appeal Associate Judges, is vested with the exclusive appellate jurisdiction over appeals from the
decisions of the Commissioner of Internal Revenue and the Commissioner of Customs on
certain specific issues.
Shari'a District Courts Equivalent to the Regional Trial Courts in rank are the Shari'a District Courts which were
established in certain specified provinces in Mindanao where the Muslim Code on
Personal Laws is being enforced. 

There are five Shari'a District Courts and fifty one Shari'a Circuit Courts in existence.

Socio-cultural Trend

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