SWOT

ANALYSIS
 WHAT IS SWOT ANALYSIS?
• THE SWOT ANALYSIS CAN BE VIEWED
AS A SPIN-OFF OF THE MARGINAL
BENEFITS AND MARGINAL COST.
•IT FOCUSES ON STRENGTHS,
OPPORTUNITIES THAN CAN ENHANCE
THE PROFITABILITY OF AN INDUSTRY AS
A MEASURE OF BENEFIT.
 STRENGTH
•STRENGTH REFERS TO THE
INTERNAL CHARACTERISTICS OF
FIRMS OR INDUSTRY THAT CAN
CONTRIBUTE DIRECTLY TO THE
PROFITABILITY OF FIRMS AND
THE INDUSTRY.
 WEAKNESSES
•IT IS ALSO THE INTERNAL
CHARACTERISTICS OF FIRMS OR
INDUSTRY BUT UNLIKE
STRENGTHS THEY MITIGATE THE
PROFITABILITY OF FIRMS AND
INDUSTRY.
 OPPORTUNITIES
• OPPORTUNITIES REFERS TO THE POSITIVE IMPACTS OF
VARIOUS EXTERNAL ENVIRONMENTS ON THE
PROFITABILITY OF AND INDUSTRY.
• IT CAN CONTRIBUTE IN ENHANCING THE
PROFITABILITY OF AN INDUSTRY BUT UNLIKE
STRENGTHS, THEIR CONTRIBUTIONS ARE ONLY
POTENTIAL, INDIRECT AND PROSPECTIVE.
 THREATS
• THESE ARE UNDESIRABLE IMPACTS OF EXTERNAL
FACTORS BECAUSE THEY CAN POTENTIALLY IMPAIR
THE PROFITABILITY OF FIRMS IN AN INDUSTRY.
• THESE FACTORS CAN ONLY HAVE POTENTIAL,
INDIRECT, PROSPECTIVE EFFECTS BECAUSE THE FIRMS
OR THE INDUSTRY DO NOT HAVE CONTROL OVER
THESE FACTORS.
SWOT ANALYSIS AND
BUSINESS CLIMATE
 BUSINESS CLIMATE
• BUSINESS CLIMATE IN TURN IS SHAPED BY THE
INTERACTIONS BETWEEN VARIOUS SETS OF
INTERNAL AND EXTERNAL FACTORS.
• THESE INTERACTIONS AMONG INTERNAL AND
EXTERNAL FACTORS ARE FURTHER FORMED BY
THE GOVERNMENT THROUGH ITS
IMPLEMENTATION OF MACROECONOMIC
POLICIES, REGULATORY FRAMEWORK AND
INSTITUTIONAL SUPPORT.
 MACROECONOMIC POLICIES
•These are the course actions of
the government meant to
stabilize and promote growth in
the economy.
 GOVERNMENT REGULATIONS
•ARE SET OF RULES MEANT
TO ADDRESS MARKET
DISTORTIONS BROUGHT BY
SEVERAL REASONS.
 INSTITUTIONAL SUPPORT
•REFERS TO A HOST OF
ASSISTANCE FROM THE
GOVERNMENT THAT CAN
MAKE A FAVORABLE BUSINESS
CLIMATE.
BUSINESS OPPORTUNITIES IN
VARIOUS ECONOMIC SECTORS
 AGRICULTURAL SECTOR AND
AGRIBUSINESS
• AGRICULTURAL HAS BEEN DEFINED AS THE SCIENCE
AND ART OF CULTIVATING PLANTS AND PRODUCING
LIVESTOCK.
• AGRICULTURAL SECTOR HAS BEEN AN IMPORTANT
COMPONENT OF THE PHILIPPINE ECONOMY.
• IN THE 1970’S ALMOST ONE-THIRD OF THE
COUNTRY’S GROSS DOMESTIC PRODUCT (GDP) HAS
BEEN CONTRIBUTED BY THE AGRICULTURAL SECTOR.
EMPLOYED PETSONS IN AGRICULTUTRE, HUNTING, FORESTRY,
FISHING
(IN THOUSANDS)
2005 2007 2010 2016

NUMBER OF 11,717 11,786 11,956 11,801

EMPLOYED PERSONS

PROPORTION TO THE 36.01% 35.12% 33.18% 28.31%

TOTAL EMPLOYED
PERSONS
 GROSS VALUE ADDED IN AGRICULTURE, FORESTRY, HUNTING AND
FISHING
(IN MILLION PESOS; AT CURRENT PRICES)

2000 2005 2010 2016

GROSS VALUE ADDED 500,111 596,727 662,665 710,510

PROPORTION TO GDP 13.97% 13.31% 11.62% 8.74%

• MANY BUSINESS VENTURES, SMALL AND LARGE, DERIVE
THEIR INCOME AND PROVIDE EMPLOYMENT FROM THE
PRODUCTION OF LEADING AGRICULTURAL CROPS.
• THESE CROPS ARE RICE,CORN,COCONUT, SUGARCANE,
BANANA, PINEAPPLE, COFFEE, MANGO, TABACCO, ABACA,
RUBBER, CASSAVA, CAMOTE, PEANUT, MONGGO, GARLIC,
ONIONS, TOMATO, EGGPLANT, CABBAGE AND CALAMANSI.
• THERE ARE ALSO BUSINESS OPPORTUNITIES IN THE
PRODUCTION OF OTHER FRUITS AND VEGETABLES AND
VARIETIES OF RICE AND CORN THAT CATER TO THE
CHANGING TASTES OF FILIPINO CONSUMERS.
• THE LONG COASTLINES OF THE PHILIPPINES ARE ENDOWED
WITH MARINE RESOURCES FOR FISHES FOLKS TO HARNESS
FOR FISH PRODUCTION.
• BUT ASIDE FROM COMMERCIAL FISHING FOR SEAFOOD
PRODUCTION, THERE ARE BUSINESS PROSPECTS IN
MUNICIPAL FISHING, AQUACULTURE, AND CAGE/PEN
OPERATIONS OPPORTUNITIES.
• FOR ANIMAL PRODUCTION, THERE ARE TWO TYPES THAT CAN
BE PURSUED: LIVESTOCK (PIGS, COWS, CARABAOS AND
GOATS) AND POULTRY PRODUCTION WHICH INCLUDES
CHICKEN, DUCKS AND GOOSE.
• FORESTRY RESOURCES THE MAIN SOURCE OF INCOME IS
LOGGING.
• IN AGRICULTURAL SUPPORT AND AGRICULTURAL PROCESSING, THE
OPPORTUNITIES ARE HUGE AND EXPANDING ALTHOUGH THE CURRENT SHARE
OF THIS TYPE OF AGRIBUSINESS IS STILL SMALL.
• HAVING IDENTIFIED A NUMBER OF BUSINESS OPPORTUNITIES IN AGRICULTURE
SPECIFICALLY AGRIBUSINESS, LET US MAKE A SIMPLE SWOT ANALYSIS OF THE
SECTOR BY OUTLINING SOME OF ITS STRENGTHS, WEAKNESSES,
OPPORTUNITIES AND THREATS.
 STRENGTHS
 VAST TRACTS OF LAND FOR AGRICULTURE
 LARGE COASTLINE AND MUNICIPAL WATER RESOURCES FOR
COMMERCIAL FISHING
COMPETITIVE EDGE IN THE PRODUCTION OF COMMERCIAL CROPS
AND TROPICAL FRUITS
USE OF MODERN TECHNOLOGY IN LARGE SCALE FARM
PRODUCTION
COMPETITIVE EDGE IN NICHE PRODUCTS FROM ORGANIC
FARMING
 WEAKNESSES
 HIGH COST OF FERTILIZERS AND FARM INPUTS
LOW PRODUCTIVITY OF FARMERS
HIGH COST IN RICE PRODUCTION
HIGH COST DUE TO POST-HARVEST WASTAGE
INADEQUATE IRRIGATION FACILITIES
LIMITED EXTENSION SERVICES
NARROW INVESTMENTS IN RESEARCH AND DEVELOPMENT
 OPPORTUNITIES
 SHIFTING DEMAND FOR ORGANIC PRODUCE
INCREASING INCOME OF CONSUMERS
INCREASING POPULATION
GOVERNMENT SUPPORT IN AGRICULTURE
CHANGING TASTES OF CONSUMERS
FURTHER PROCESSING OF FARM PRODUCE
FARM IMPLEMENTS CAN BE RENTED OR SHARED
ASEAN ECONOMIC INTEGRATION
 THREATS
 LOW COST RICE PRODUCERS IN THE REGION
AGRICULTURAL PRODUCE AS INPUTS FOR BIOFUEL
 ASEAN ECONOMIC INTEGRATION AND THE LIBERALIZATION OF RICE
IMPORTS
UTILIZATION OF LESS PRODUCTIVE MARGINAL UPLANDS
RAPID POPULATION GROWTH
CLIMATE CHANGE
OVERFISHING
CONVERSION OF AGRICULTURAL LANDS INTO RESIDENTIAL,
COMMERCIAL, AND INDUSTRIAL PURPOSES
 INDUSTRIAL SECTOR AND
MANUFACTURING BUSINESS
• THE INDUSTRIAL SECTOR IS COMPOSED OF
MANUFACTURING, CONSTRUCTION, MINING, AND
UTILITIES, WHICH INCLUDES ELECTRICITY, GAS, AND
WATER.
• BECAUSE MORE THAN 70% OF PRODUCTION OF THE
SECTOR COMES FROM MANUFACTURING INDUSTRIES,
THE INDUSTRIAL SECTOR IS OFTEN REFERRED TO AS
THE MANUFACTURING SECTOR.
•ASIDE FROM THE CATEGORIES OF
MANUFACTURED COMMODITIES, THE
CLASSIFICATION OF MANUFACTURING
SECTOR CAN BE MADE ACCORDING TO THE
TYPE OF PHYSICAL PLANT AND PROCESSING
PROCEDURE.
 STRENGTHS
 VARIETY OF COMMODITIES THAT CAN BE MANUFACTURED
VARIETY OF PROCCESSES THAT CAN BE UNDERTAKEN
INDUSTRIES CAN BE SCALED INTO MICRO, SMALL, MEDIUM, AND
LARGE ENTERPRISES
AVAILABILITY OF SKILLED LABORERS
SOME INDUSTRIES ARE PARTICIPANTS IN GLOBAL PRODUCTION
NETWORKS
SMALL ENTERPRISES ARE OPENING DOORS TO INCLUSIVE GROWTH
AVAILABILITY OF RAW MATERIALS
 WEAKNESSES
 LOW PRODUCTIVITY IN LABOR-INTENSIVE
MANUFACTURING
INSUFFICIENT INVESTMENT IN EQUIPMENT AND
PHYSICAL CAPITAL
HIGH COST OF ELECTRICITY AND POWER
POOR INFRASTRUCTURE
LIMITED RESEARCH AND DEVELOPMENT
SLOW ADOPTION OF MODERN TECHNIQUES OF
PRODUCTION
 OPPORTUNITIES
 ASEAN ECONOMIC INTEGRATION
FAVORABLE INVESTMENT CLIMATE IN THE
COUNTRY
LIBERALIZATION MEASURES
INCREASING POPULATION
CHANGING TASTES OF MANUFACTURES AND
NICHE PRODUCTS
INCREASING INFLOW OF FOREIGN INVESTMENT
THREATS
 CLIMATE CHANGE
 ASEAN ECONOMIC INTEGRATION
 INCREASING LABOR COST
 WEAK DEMAND INTERNATIONALLY
 HIGH COST OF ELECTRICITY
 WEAK INFRASTRUCTURE
 CHEAP MANUFACTURES FROM CHINA
 MIGRATION OF SKILLED WORKERS
SERVICES SECTOR AND
RETAIL SERVICES
• SERVICES ARE PRODUCTS THAT ARE CONSUMED WHEN
THEY ARE PRODUCED.
• SERVICES COVER A HOST OF INDUSTRIES INCLUDING
WHOLESALE AND RETAIL INDUSTRIES, TRANSPORTATION,
COMMUNICATION, AND STORAGE INCLUDING
WAREHOUSING, HOTELS AND RESTAURANTS, FINANCIAL
INTERMEDIATION, REAL ESTATE AND BUSINESS ACTIVITIES,
EDUCATION, AND OTHER SOCIAL SERVICES, PRIVATE
SERVICES, AND GOVERNMENT SERVICES.
• THE ROLE OF SERVICES IS TO LINK VARIOUS ECONOMIC
SECTORS AS WELL AS SUPPLIERS AND CONSUMERS.
• THE BIGGEST INDUSTRY IN THE SERVICES SECTOR IN TERMS OF
EMPLOYMENT IS WHOLESALE AND RETAIL TRADE INDUSTRY
WHICH ABSORBS ALMOST 20% OF THE LABOR FORCE.
• THIS COVERS THE MILLIONS OF SARI-SARI STORES, GROCERY
STORES, AMBULANT VENDORS ALL OVER THE COUNTRY, AND THE
MORE SOPHISTICATED SHOPPING MALLS IN SELECTED URBAN
AREAS IN THE COUNTRY.
• THE SECOND IMPORTANT INDUSTRY IN THE SERVICES SECTOR IN
TERMS OF LABOR ABSORPTION IS TRANSPORT, STORAGE AND
COMMUNICATION.
• THIS SECTOR ABSORBS ALMOST 8% OF THE LABOR FORCE.
•THIRD MAJOR EMPLOYER IS PUBLIC
ADMINISTRATION AND NATIONAL DEFENSE.
•THERE ARE LIMITED PRIVATE SECTOR
BUSINESS OPPORTUNITIES HERE EXCEPT IN
SUPPLYING THEIR SUPPLIES AND EQUIPMENT.
•THE FOURTH WHICH CONSTITUTE 3% OF THE
LABOR FORCE IS THE REAL ESTATE, RENTING,
AND BUSINESS ACTIVITIES.
 STRENGTHS
• BIGGEST SECTOR OF THE ECONOMY
• PROVIDES THE BIGEST EMPLOYMENT IN THE ECONOMY
• SERVICES ARE EMBEDDED IN AGRICULTURAL AND
INDUSTRIAL PRODUCTION
• MAJOR SOURCE OF ECONOMIC GROWTH
• INTERNATIONALLY COMPETITIVE BPO
• VARIETY MODES OF SUPPLY
 WEAKNESSES
•WEAK INFRASTRUCTURE
•LOW PRODUCTIVITY
•HUGE INFORMAL SECTOR
•VARIABILITY OF QUALITY SERVICES
 OPPORTUNITIES
• LIBERALIZATION AND EXPANSION OF TRADE IN SERVICES
• GOVERNMENT PROGRAM IN EXPANDING AND IMPROVING
INFRASTRUCTURE
• PUBLIC-PRIVATE PARTNERSHIP
• LIBERALIZATION IN TRADE IN SERVICES
• ASEAN ECONOMIC INTEGRATION
• EDUCATIONAL REFORM INCLUDING K TO 12
• ADDRESSING THE WEAKNESSES
• SERVICES AS THE LINK OF ECONOMIC SECTORS
 THREATS
• LIBERALIZATION IN TRADE IN SERVICES
• ASEAN ECONOMIC INTEGRATION
• MIGRATION OF SKILLED WORKERS
• INCREASING COMPETITIVENESS OF SERVICES IN
THE REGION.