Business Model of Metropolitan Cebu Water District (MCWD)

1. Target Market
The target market of MCWD is the citizens living in the metropolitan areas
in Cebu. Specifically, it includes: Cebu City, Talisay City, Mandaue City, Lapu-Lapu
City, Consolacion, Liloan, Compostela, and Cordova.

2. Value Proposition
MCWD is the water district in charge of metropolitan area of Cebu
Province. Being a government owned and controlled corporation (GOCC), it is
under the regulation of the government. This makes sure that the water is
affordable for its customers compared to that of the private corporations. I
addition to that, they conduct water quality tests everyday as one of the
requirements it should follow. This ensures that the water distributed by MCWD is
potable.

3. Channel
Since MCWD is a water district, it distributes its product, water, through
the pipes. Various pipes leading to different part in Cebu are connected with the
consumer’s own pipes, which enables the customers to have their own water
supply at home through the faucet.

4. Customer Bonding Strategy

To promote fairness, MCWD has a first come first serve type of customer
service. Also, in response to the technological advancement, MCWD has a portion
in their website that allows people to check one’s water bill and to pay them
online. This greatly increases convenience as the customers who are bust can
settle their bills without having to go all the water to the main office.

5. Revenue Model
Usually, MCWD collects the water bills on a monthly basis which will allow
them to have a stable profit.
6. Value Network
MCWD has hundreds of employees with their respective departments in
the company that enables them to function as a whole. For the supply, MCWD
depends heavily on the surface and the ground water in Cebu. In fact, they are the
ones in charge of taking care of these dams, reservoir, and facilities so that they
will have a continuous supply of water.

7. Resources and Processes

The most important asset of the company is the supply of water. This is an
example of hard asset. Without water, MCWD cannot exist because “water” itself
is the reason why the company exists in the first place. Other assets include the
data that the company has, employees, buildings and facilities.
MCWD purifies water from different sources every day. Also, it continues
check the water supply that they have in order to see the sustainability of the
water supply. Also, they conduct daily water quality tests from different areas in
order to assess if all the customers are getting safe and potable water.

8. Complementors
Being a GOCC, the group that helps and supports MCWD is the
government.

9. Configuration
The company should look for new ways of acquire water supply as fast as
possible. One of the problems that are associated with MCWD is the lack of water.
Many costumers complain that they do not have water for certain period of the
day, which increases their dissatisfaction. Due to the lack of rain and salt water
intrusion, MCWD do not get much from their water sources. Thus, an alternative
method of getting water supply can enable them to distribute more water and
thus, increase their profit. Also, it would be better if MCWD will advertise their
water quality with pride. MCWD goes through strict guidelines to ensure their
water quality; however, people are not aware of this and have the mindset that
MCWD water is not safe. By changing people’s opinion, it can give the company a
better image which can eventually result to increase in profit.

10. Cost
MCWD’s cost to operate includes maintaining the different water facilities
and machines, installing or replacing the pipes and water meters, and manpower.