FAR EASTERN UNIVERSITY

Institute of Accounts, Business and Finance

Business Administration Department

STRATEGIC MANAGEMENT PAPER FOR

2GO GROUP INC.

Submitted by:

ALENTAJAN, Jiselle M.
DE JESUS, Krazel Joyce F.
HILARIO, Reina Marinella A.
SIA, Jason L.
TUMANG, Vea N.
TY, Rochelle D.

Submitted to:

PROF. JOHNELYN G. TANGPUS

November 30, 2021
 Plagiarism Undertaking

We solemnly declare that the Strategic Management Paper presented and submitted as
final requirement in the course Strategic Management (BME1102) entitled
________2GO GROUP INC.______________ is solely our group work with no
significant contribution from any other person outside our assigned group. Small
contribution or help wherever taken has been duly acknowledged.
We understand that the Department of Business Administration strictly adheres to the
Far Eastern University Plagiarism Policy and is absolutely intolerant towards cases
concerning plagiarism.
Therefore, as authors of the above titled case study analysis paper declare that no
portion of our paper has been plagiarized and any material used a reference is properly
referred/cited.
We undertake that if found guilty of any formal plagiarism in the above titled paper even
after award of our Baccalaureate degree, the Far Eastern University reserves the right
to withdraw or revoke our Baccalaureate degree and the University or Department has
the right to publish our names on the University or Department's Website on which
names of students who submitted plagiarized papers are listed.

Name of Student/Author: Jiselle M. Alentajan Signature: ________________

Name of Student/Author: Krazel Joyce F. De Jesus Signature: ________________

Name of Student/Author: Reina Marinella A. Hilario Signature: ________________

Name of Student/Author: Jason L. Sia Signature: ________________

Name of Student/Author: Vea N. Tumang Signature: ________________

Name of Student/Author: Rochelle D. Ty Signature: ________________

A. ABSTRACT

2GO Group Inc. is one of the most known and biggest logistics and

transportation providers in the Philippines. It was founded in 1949 and was

named under William Lines Inc. but now controlled by SM Investments

Corporation. 2GO Group Inc. offers a wide array of services with its five

business units namely, 2GO Sea Solutions, 2GO Special Containers, 2GO

Logistics, 2GO Distribution and 2GO Express. With the challenges and

opportunities brought by the new normal setup, 2GO Group Inc. has

provided more and newer logistics solutions to meet the demand of the

market, namely 2GO Connect, 2GO Small Cargo, 2GO Cabin Cargo and

2GO Direct. To make it possible the company has built a wide network

design from warehouses, hubs, ports of call and store outlets.

It takes good governance to achieve the success and organization of the

business operations and services. 2GO Group Inc. has been topping the

corporate governance scorecard awards in the ASEAN region since 2019

and was able to bring home the ASEAN Asset Class Award this year.

Despite 2GO's good corporate governance, the company still suffers from

the challenges brought by the pandemic. 2GO's revenue in 2020 declined

to Php 17.41 billion from Php 21.41 billion in 2019, resulting in a loss of

Php 1.84 billion. Even after the decline of sales, 2GO still aspires to lessen

their loss by expanding their services

B. VISION STATEMENT

We envision to go where our clients want to go as their first choice for logistics in the

Philippines.

Does the vision portray a vivid It does portray a vivid image because it is
image of what the company clear where they want to go and what they
wants to become? want to do.

Is the vision Inspirational? It is inspirational because they want to

become as the first choice for logistics of
people in the Philippines.

Is the vision realistic? It is realistic, given that they are one of the
largest logistic companies, it is possible
that they can provide routes to the

Table 1. Vision Statement

C. MISSION STATEMENT

 Actual  Proposed

Our mission is simply to provide excellent,

 In integrating our capabilities consistent and reliable services to our
and expertise across the Group, customers while maintaining and
we make it our everyday upholding to the highest level of corporate
mission to deliver goods on governance and setting the standard for
time, consistently, in their best creating a fulfilling environment for our
condition, and to transport our employees, partners and shareholders. In
passengers reliably, addition to our successful operations, we
comfortably, safely. strive to be responsible corporate citizens,
looking after the environment and the
 In serving our clients, we are community.
here to deliver competitive
returns for our shareholders
and uphold the highest
standards of corporate
 governance.

 We also make it a practice to

look after the welfare of our
employees and create a
fulfilling environment of growth
and shared achievement.

 Moreover, our objective is to

yield mutually beneficial long-
term partnerships with our
service providers.

 At 2GO, it is our goal to be

responsible corporate citizens,
looking after the environment
and the community

Figure 1. 9 Components of Actual Mission Statement of 2GO Group Inc.

Figure 2. 9 Components of Proposed Mission Statement for 2GO Group Inc.

 Compare to the actual mission of 2GO our team has improved it in order to

assure 2GO’s continuous growth and success, so on our proposed mission statement,

we can see that there are nine components which plays an important role in making the

business operation of 2GO clear and successful, one of the very first thing that is

important to make the business of 2GO successful and to be known nationwide is its

customers, customers that can be a typical roro passengers, shippers, and even people

who use logistics services, as we know customers is one of the most important thing

why businesses are being born and being patronize by a lot of people, customers are

one of the greatest advertisers of your company if your services and products that

satisfies and exceeds their expectation. 2GO offers transportation, cargos, and logistics

as their main product or service in their field, they operate locally and is based on Metro

Manila, given that they are one of the biggest logistic companies in the country, they

operate with the assistance of cutting-edge logistics and automation technologies, in

order to satisfy the needs and wants of their customer by giving them the consistency
and satisfaction of doing their service. And to ensure its continuous growth 2GO invests

in an integrated operating system that will help increase its efficiency for a long period of

time, and with all of its success 2GO still maintains its main Philosophy, and its

competitiveness in providing a cheaper fare for the transfer of goods and commodities.

And with all of that good performance shown to deliver its top service, 2GO also helps

and maintain their positive image in helping out people in communities and giving them

opportunities, in addition the company also supports protection of the environment at

the same time, and last is its concern for employees, employees is the reason why our

business works as we intend it to be, so 2GO provides great benefits and perks to their

employees to promote positivity and employee retention throughout their long

relationship between the company.

D. EXTERNAL AUDIT

General Environment Analysis

Reduce Government Red Tape

Nicholas and De Vega Law Office the Philippines, Anti-Red Tape Act, was

enacted in order to improve efficiency in the delivery service to the public by reducing

bureaucratic red tape and preventing graft and corruption. 2GO company was able to

help perform worldwide operations because of lower number regulation while

maintaining its ability to comply with its transparency of operation and accountability of

their duties in fulfilling the country’s standard.

Corporate Governance

2GO Company operates with fair and equal rights for every member of the

company where they make sure to only give the best practices of their system, integrity

and even the transparency of all business activities. Their way of keeping a balance

was to give impact to economic growth, social development and environmental

stewardship.

Economic Development

The air transport industry, including airlines and its supply chain, is estimated to

support US $2.7 billion of GDP in the Philippines. Spending by Foreign Tourist supports

a further US$7.7 billion of the country’s GDP, Totaling to $10.4 billion.

Stable Supply and Demand

The shift of the economy to another new normal had made 2GO company launch

a supply chain solution named 2GO Connect, logistic service to cater other consumers

by offering fast, reliable and direct accommodation to mall and supermarket along the

area of Cebu, Cagayan De Oro, Bacolod, and Iloilo. This solution helps them eliminate

inefficiencies in supply chain.

Increasing number of customers

Courier of different delivery services has become one of the top running

businesses during the COVID-19 Pandemic in the Philippines when people have

engaged on online platforms to buy anything due to the restrictions done to prevent the
spread of virus. Delivery companies are the Connected way of seller and buyers.

Packages that are delivered in a day are increasing and increasing. 2GO company has

created its competitive advantage since they offer a variety of services that are

convenient to customers’ needs and wants.

Adaptation of services to social needs

During the pandemic adjustments of different establishments has been done in

order to provide quality of service to the public. They offer services like money

remittances, documentation and parcels door to door delivery, accommodation of cargo

to international shipping through air freight or sea freight and reliable partner of

businesses to deliver a product.

Shipping Solutions

2GO uses an internationally recognized shipping solution that now supports the

end-to-end process of 2GO’s shipping business. This has replaced multiple &

fragmented legacy systems. We have integrated all of shipping’s processes into one

system, delivering improved productivity and efficiencies for 2GO and enhanced

customer experience.

Warehouse Management System

To further integrate the operation the company enhances the client’s inventory

management, order fulfillment, and customer distribution, 2GO integrates technology to

automate and simplify critical processes. Take advantage of a more advanced

processes in movement, analyzation, for a more efficient and agile enterprise.

Adaptation to Data privacy Act

2GO company uses data information for delivery and record purposes only. All

data will only be accessed by limited authorized 2GO employees. Data collected on the

internet or other technological methods are put in a secure database, while other

physical records are stored in secure offices and warehouse facilities.

New Destinations

Despite the pandemic 2GO has continued to expand its market they have

expanded their coverage in certain parts like Tagbilaran city in Bohol province with its

weekly services. The company’s also added Davao and General Santos City to cater

their customers packages to boost the economy of Southern Mindanao.

Tax Policy

According to the cargo transport service providers, the new excise tax will not

have a huge effect on inflation. However, estimates imply that the increase in tariffs will

result in an increase in the costs of doing business, therefore, it will be passed on to

customers and stakeholders at some point. (PortCalls, 2018) As a result of the

implementation of new excise taxes, TRAIN imposes a tax on gasoline. Bunker fuel is

being used in the engines and diesel for the generator sets of shipping companies and

accounts for 30% of its operational costs.

Impacts of the pandemic in the transportation and logistics services industry

The Covid-19 epidemic has had a direct impact on transportation and logistics

companies that deal with the distribution, storage, and flow of goods. Transportation

and logistics organizations enable trade and commerce by assisting firms in distributing

their products to their clients, both inside and throughout international borders. As a

result, supply chain interruptions brought by the pandemic could have an influence and

effect on economic growth, job creation, and competitiveness. According to Transportify

(2021), the Philippine transportation and logistics industry was prospering before the

Covid-19 outbreak, the pandemic has slowed down the growth of Philippine logistics

and trucking.

Inflation

The headline inflation rate in the Philippines declined to 4.8% during September

2021 from 4.9%in August 2021. While the inflation rate last September 2020 was 2.3%.

(Philippine Statistics Authority, 2021). This illustrates that even if the inflation rate

decreased slightly in September 2021 compared to August 2021, it’s still high and

continued to rise during the pandemic since September 2020. As a result, if the

country’s inflation rate continues to climb, it will have an impact on the demand of

transportation and logistics services of 2GO because an increase in inflation rate

reduces consumers’ purchasing power, as rising inflation lowers customer’s purchasing

power, prompting them to spend less on high-priced goods and services.

Economic Growth

In the second quarter of 2021, the Philippines’ Gross Domestic Product

increased by 11.8%, compared to -16.9% in the second quarter of 2020. (Philippines

Statistics Authority, 2021) As a result, prices tend to increase in a healthy and

developing economy, a process known as inflation. (Warr, 2019) As the Philippine

economy rises, resulting in increased inflation, customer’s ability to spend on basic

needs will negatively affect the demand for 2GO services, despite an increase in

income due to economic growth, customers are more likely to spend it on their needs as

the prices of other products and services increases due to inflation.

Customers’ changing behavior

Outsourcing logistics operations has proven to be less expensive than in-house

logistics, and entrusting one of the most important business activities to a third party has

a significant impact on customer satisfaction. (HANHAA Supply Chain Solutions, n.d.).

However, with so much competition, clients expect their items to arrive fast and with a

free and low-cost delivery fee. Logistic companies must adapt and make every area of

their distribution network leaner in order to stay competitive.

Attitude toward e-commerce and logistic services

The Philippine e-commerce, transportation, and logistics industry are thriving.

Especially now, when many individuals prefer more convenient ways of buying such as

online shopping. However, this does not change the fact that the country continues to
face several logistical obstacles that have hampered this economic sector. According to

Airspeed (2020), many customers have been dissatisfied as a result of lost or damaged

packages or delayed shipments of items and this is just only a part of a much larger

issue that is confined to the country’s regulatory system.

Digitalization

Traditional logistics businesses continue to dominate the industry, but the change

to a new normal brought by the pandemic and Filipinos increasing acceptance of digital

technology has driven e-commerce to the forefront. To survive and succeed, the

majority of these businesses have moved their operations online. However, according to

the recent survey conducted by DTI to establish the extent of digitalization among

Philippine MSMEs (Hani, 2021), it was found that 73% are experiencing trouble

digitizing their operations. These logistics companies are in need of marketing, financial,

e-commerce basics, content management, and online business skills.

Incoherent regulatory structure

One reason contributing to the poor performance and low worldwide

competitiveness of the logistics sector in the Philippines is its restrictive and incoherent

regulatory structure that can be seen in the case of Philippine ports. Delays caused by

port inefficiencies can result in greater inventory costs and missed opportunities for the

business. (Tongzon, 2018) The efficiency of ports is important because they account for

a substantial portion of coastal shipping expenses, which are normally shouldered by

carriers and shippers in the form of higher shipping charges.

Policies to reduce greenhouse gases emissions

President Rodrigo Duterte has signed the Philippines’ first Nationally Determined

Contribution, which seeks to cut greenhouse gases emissions by 75% by the year 2030.

The NDC outlines the Philippines’ goal of modernizing and achieving low-carbon and

resilient development in the agricultural, waste, industrial, transportation, and energy

sectors. (Yang, 2021) However, this could be seen as a challenge for transportation and

logistics companies because their operations usually produce high rates of greenhouse

gas emissions. GHGs emitted by transportation is not only harmful to individuals and

can cause diseases, but they are also harmful to ecosystems and are damaging to the

environment.

Poor Infrastructure and Traffic Congestion

Another issue that needs to be addressed is traffic, which increases the

operational costs of logistic businesses and the government also has to modernize its

seaports, airports, and logistics infrastructure to reduce logistic costs. (Reyes, 2021)

Sufficient infrastructure can help the Philippines overcome its core geographic

challenge. However, the lack of it simply adds to the difficulty and can result in long lead

times. While traffic congestion is not only causing a delay in driving from point A to point

B, it also increases vehicle emissions, affects the quality of air, and can cause harm to

the health and safety of individuals. According to “Air pollution and health risks due to

vehicle traffic” (Zhang and Batterman, 2013), recent studies have found excess
morbidity and mortality among commuters, drivers, and people who live near major

roadways due to health risks brought by vehicle traffic.

 Competitive Profile Matrix (CPM)

Critical Success Factors of Logistics Industry by TOPSIS

Table 2. Expert Ranking

The critical success factors in the reverse logistics industry were ranked by

TOPSIS. The study was conducted in Kuala Lumpur, Malaysia and has invited

logistics experts to identify the factors based in the supply chain management. The

weighting of critical success factors was done by the experts in accordance with the

TOPSIS method (Fouladgaran et.al,2015).

 Table 3. Competitive Profile Matrix

Analysis

Company Competitors

2GO Group Inc. main competitors in the Philippines are Kintetsu World Express

(KWE Philippines) and Fast Logistics. 2GO, KWE Philippines and The Fast Group

provides Filipino communities and businesses with logistics and supply chain

management services. According to Owler Inc. (2021), 2GO Group Inc. has an

estimated average annual revenue of over 420 million while Kintetsu World Express

(KWE Philippines) has 15 million and Fast Group has 40 million.

Weight

The weight of critical success factors on the Competitive Profile Matrix is based

on CLi findings in the expert rating. The weight is calculated by dividing the CLi results

in the expert ranking by 10 and rounding off to the nearest number. The weight

determines how important the critical success factors are in the business.

Rating

1. Transportation

The weight of transportation is 0.08 and is based on the critical success factors

expert ranking. 2GO Group Inc. is rated 4 since they have large number of

transportation assets including roll-on/roll-off (RoRo) vessels, air and sea freighter,

metric tons of cargo capacity trucks and ships, container vans trucks, refer vans trucks,

ISO tanks trucks, truck chassis, and company-owned trucks (2GO Group Inc, 2019).

2. Process Planning

The weight of process planning is 0.08 and is based on the critical success

factors expert ranking. Process planning involves operations and processes to convert

inputs into an output to achieve the goals of the company. 2GO Group Inc. is rated 3 by

having an advanced integrated process system to fulfill the shipping and warehouse

operations (2GO Group Inc.,2021).

 3. Resource Management

The weight of resource management is 0.07 and is based on the critical success factors

expert ranking. Resource management is the company’s resources needed to reach the

maximum capacity of the business. 2GO Group Inc. rated 4, for having a wide range of

their financial resources (investors, stakeholder, partners and customers), in-depth

employee skills (training and development), advanced technology (shipping solution and

warehouse management system), advanced inventory management tool and systematic

production process (2GO Group Inc., 2020).

4. Information Management and Technology

The weight of information and technology is 0.07 and is based on the critical

success factors expert ranking. 2GO Group Inc. is rated 4, the security features system

and security infrastructure of their customers' data center of their customers has ISO

270001 certification which means that the company is seriously committed to keeping

their customers data secure. 2GO has advanced technology in their operations such as

shipping solution and warehouse management system (2GO Group Inc.,2021).

5. Top Management Commitment

The weight of top management commitment is 0.07 and is based on the critical

success factors expert ranking. 2GO Group Inc. is rated 4 as they are recognized in

ASEAN Corporate Governance Awards in 2019 for having a high level of commitment in

compliance of the corporate governance policies (2GO Group Inc, 2019). Aside from

that, their management yearly President’s report in the public, containing financial
statements, sustainability report, production process, training and development,

technology advancements, and etc. their challenges, solutions, progress for the

business. The report shows how committed the management is to improving and

making solutions in the challenges.

6. Logistics Network Design

The weight of logistics network design is 0.07 and is based on the critical

success factors expert ranking. 2GO Group Inc. is rated 4 for having a large array of

logistics network design for their various services offered such as 2GO Special

Containers and Projects, 2GO Sea Solutions, 2GO Distribution, 2GO Express and 2GO

Logistics. Their logistics network design includes their factories, inventory, means of

transport (e.g. RoRo, trucks, freights), warehouses, hubs, ports of call and distribution

centers to reach their partner and end-consumers

7. Standardization

The weight of standardization is 0.07 and is based on the critical success factors

expert ranking. 2GO Group Inc. rated 4 for having advanced technology systems for the

operations process to ensure the safety, efficiency and quality of the goods and

services they bring to the consumers. The company uses shipping solutions (features:

vessel scheduling, rates management, container management, loading sailing and

discharging, billing and collection) and warehouse management system (automating

operations) (2GO Group Inc.,2021).

 8. Control

The weight of control is 0.06 and is based on the critical success factors expert

ranking. 2GO Group Inc is rated 4 for having an efficient and effective control of the

management in the company. 2GO has existing corporate governance that will help to

achieve the company’s objectives as well as to keep the company in order including

conflict of interest policy, manual on corporate governance, code of business conduct,

employee welfare, orientations and training, insider trading policy, related party

transactions policy, alternative dispute resolution, whistleblowing policy and policy for

vendor selection and purchase of goods and services (2GO Group Inc.,2021).

9. Organizational Strategy

The weight of organizational strategy is 0.06 and is based on the critical success

factors expert ranking. 2GO Group Inc. rated 4 for having a strong organizational

strategy that makes the business one of the largest integrated transportation and

logistics companies in the country (2GO Group Inc.,2021). The company strategy

focuses on giving their customers distinct and different services, in which refers to their

services offered such as 2GO Special Containers and Projects, 2GO Sea Solutions,

2GO Distribution, 2GO Express and 2GO Logistics (BusinessWorld, 2018).

10. Quality Management

The weight of quality management is 0.06 and is based on the critical success

factors expert ranking. 2GO Group Inc. is rated 3 as they practice their core values for

having quality and excellence services. The company makes sure to provide highest
standards and premium value to the customers by using their advanced technological

systems (shipping solutions, warehouse management system) and a requirement of

having a skilled employee (training and development). Aside from that, the company

has an enterprise risk management program to avoid operational, compliance,

technological, regulatory and other risks found in the business that is led by the top

management (2GO Group Inc.,2020).

11. Human Resource Management

The weight of human resource management is 0.06 and is based on the critical

success factors expert ranking. 2GO Group Inc. rated 4 for having a strategic approach

for handling the people in the company. 2GO provides training and development to their

employees to produce talents that are conducive in the work environment, the company

focuses on the opportunities they can give to the employees to grow and learn. The

company has also developed policies for employees to manage them and evaluate their

performance inside the company (2GO Group Inc., 2019).

12. Capacity

The weight of capacity is 0.06 and is based on the critical success factors expert

ranking. 2GO Group Inc. is rated 4 for having a large capacity in business operations. In

the production process they have a large number and wide base of warehouses, hubs

and ports of call. The production processes of 2GO includes raw material warehousing,

production logistics, and implant logistics. When it comes to human resource allocation,

2GO has the right size of people to accomplish the different roles and tasks in the

organization. For the technological aspects, it is mentioned in the recent success factors
that 2GO uses advanced technology for their operations such as shipping solutions and

warehouse management system in order to provide quality and efficient services to the

customers (2GO Group Inc., 2019).

13. Collaboration

The weight of collaboration is 0.05 and is based on the critical success factors

expert ranking. 2GO Group Inc. is rated 4, for having a collaboration from different

businesses to provide their services. FedEx is one of the authorized ship partners of

2GO that helps with that international shipping and drop off. Another one is having a

joint venture with Kerry Logistics that has an extensive global service from different

countries (2GO Group Inc.,2021). These business partners of 2GO allow them to reach

different customers all over the world. Aside from that, 2GO has extended their

partnership with SM Retail Inc. in 2020 for business payment transactions to make it

more convenient and accessible for their consumers. Another one is Scan Asia, where it

also uses 2GO service to deliver their goods to its end consumer (Business Mirror,

2020).

14. Culture

The weight of culture is 0.05 and is based on the critical success factors expert

ranking. 2GO Group Inc. is rated 4 for practicing values that focus on building

relationships, and integrity that will help the company grow and to inspire workers. The

culture of the company embodies their own core values such as customer first, good

corporate citizenship, accountability, respect for people, quality and excellence, honesty

and integrity, teamwork and collaboration and innovation (2GO Group Inc., 2021). 2GO
has a diverse culture where they accept different types of employees regardless of age,

religion, race etc. in which they help grow and develop skills to support its employees

and the organization as well (2GO Group Inc., 2019).

15. Automation

The weight of automation is 0.05 and is based on the critical success factors

expert ranking. 2GO Group Inc. receives a 4 for complete warehouse automation with

data integrity. This is the benefit of a warehouse management system, which makes the

process more efficient and advanced, allowing the company's analysis to be more exact

(2GO Group Inc, 2021). Aside from that, 2GO has launched its shipping application,

which assists in the usage of terminal operations equipment as well as vessel planning

and scheduling. Another advantage is having a digitized claims management system,

which helps in the facilitation of problems and occurrences as well as the settlement of

issues.

16. Innovation

The weight of culture is 0.04 and is based on the critical success factors expert

ranking. 2GO Group Inc. is rated 4, it is one of the company’s core values to constantly

adapt to the changing needs of their customers as well as their company. In January

2021, 2GO Group Inc. brought their new supply chain innovation namely 2GO Connect,

this allows the company to deliver their services all over the country and be flexible to

meet their consumers demands and changing market conditions (The Manila Times,

2021). Also, the company pursues constant innovation to efficiently provide quality

production and services for their customers.

General Analysis

The analyzation of weight in each critical success factor and the assigned rating of the

companies has brought us into the following conclusion:

a. 2GO Group Inc. has the highest weighted score under the critical success

factor of Transportation, with a score of 0.32. Although having the greatest

weighted score, 2GO Group Inc. also has the lowest weighted score under

the critical success factor of Innovation, with a score of 0.16. Meanwhile,

The Fast Group got the lowest weighted score in the competitive profile

matrix under the critical success factor of Innovation, with a score of 0.08.

b. With the overall weight and rating in the competitive profile matrix, 2GO

Group Inc. got the highest total weighted score with 3.86, next is the KWE

Philippines with 2.58 and last is the Fast Group with 2.56. This only means

that 2GO Group Inc. has the highest competitive advantage among them.

 Opportunities

Political Economic Social

 Reduce Government  Economic  Increasing number of

Red Tape Development customers

 Corporate  Stable Supply and  Adaptation of

services to social
 Governance Demand needs

Technological Legal Environmental

 Shipping Solutions  Adaptation to Data  New Destinations

 Warehouse privacy Act

Management

System

 Threats

Political Economic Social

 Tax Policy.  Inflation rate.  Customer’s. changing

 Impacts of the  Economic growth behavior

pandemic in the  Attitude toward e-

.
transportation and commerce and

logistics services logistics services.

industry.

Technological Legal Environmental

 Digitalization.  Policy to reduce

 Incoherent greenhouse gases

regulatory emissions.

structure.  Poor Infrastructure

and Traffic

Congestion

 External Factors Evaluation (EFE) Matrix

KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED
SCORE

OPPORTUNITIES

1. Reduce Government Red Tape 0.04 2 0.08

2. Corporate Governance 0.06 4 0.24

3. Economic Development 0.05 3 0.15

4. Stable Supply and Demand 0.06 3 0.18

5. Increasing Number of Customers 0.08 4 0.32

6. Adaptation of Services to Social Needs 0.07 4 0.28

7. Shipping Solutions 0.02 2 0.04

8. Warehouse Management System 0.04 3 0.12

9. Adaptation to Data Privacy Act 0.03 4 0.12

10. New Destinations 0.06 3 0.18

THREATS

11. Tax Policy 0.04 3 0.12

12. Impacts of the Pandemic in the 0.07 4 0.28

Transportation and Logistics Services
Industry.

13. Inflation Rate 0.04 2 0.08

14. Economic Growth 0.04 3 0.12

15. Customer’s Changing Behavior 0.05 3 0.15

16. Attitude Toward E-Commerce and 0.07 4 0.28

Logistics Services

17. Digitalization 0.07 4 0.28

18. Incoherent regulatory structure 0.04 3 0.12

19. Policies to reduce greenhouse gases 0.04 3 0.12

emissions

20. Poor Infrastructure and Traffic 0.03 2 0.06

 Congestion.

TOTAL 1.00 3.32

Analyzing each factor included in the opportunities and threats in External Factor

Evaluation (EFE) Matrix and considering their importance to the overall operation and

the relative success they could bring to the firm in the industry, the following

interpretation has been made:

a. The factor that got the highest weighted score is the “Increasing Number

of Customers” with 0.32 weight out of 3.32. One reason that made it the

highest is its weight of importance, it has an average weight of 0.08 over

1.00. The sudden crescendo shift in the demand for delivery and logistics

businesses like 2GO is caused by the pandemic. COVID-19 has caused

anxiety for people to leave their homes and urged them to start resorting

to online platforms to buy anything they need or want, and this gives an

opportunity for firms like 2GO. This factor was given the highest weight of

importance because as per 2GO’s website, they are a customer-driven

firm, hence, having a greater demand for their service allows them to grow

and flourish in the industry. 2GO responded to this opportunity by

expanding its reach and services locally in strategic locations. They also

have developed E-commerce solutions that are beneficial and convenient

for both sellers and buyers, adapted a cash-on-delivery mode of payment,

offered other services like money remittances, hyperlocal services, courier

mailroom, and other services to utilize the increased number of their

possible consumers in the market. This factor received a 4 rating because

 the service portfolio of 2GO is exceptional compared to other logistic and

transportation companies.

b. When it comes to the factor that got the lowest weighted score, the

“Shipping Solutions” in opportunity has 0.04 out of 3.32. The reason why it

was the lowest among other factors is because it’s given moderate

importance with 0.02 weight out of 1.00. As a background, Shipping

Solutions is a new technology made for a logistics company like 2GO. It

was meant to record the visibility of parcels covered from their origin to

destination so that the consumers can track the current locations or traffic

of their parcels. It was given the lowest weight because as per 2GO’s

website, only three out of their five divisions can use this particular

innovative tool in their offered services in the market. The shipping

solutions are only applicable in their services connected with 2GO

Logistics, 2GO Distribution, and 2GO Express. Even so, 2GO still invested

in this tool to compete with other logistics companies in the country. They

launched a track and trace tool on their website to allow consumers to see

the real-time condition and location of their parcels. This factor was only

given 2 ratings because the actions and strategies of 2GO don't fall

different from other logistic companies that also have shipping solutions.

2GO must utilize their means to offer a lot more in their track and trace so

they could use it as one of their edges against their competitors in the

industry.
 E. INTERNAL AUDIT

 Strengths

Affordable travel/package deals

2GO Group Inc. provides its customers with cheap and reasonably priced

travel/package deals. Thus, the company established its prices as an affordable and

medium-priced brand that catered to the general public. As a result, its sales revenue

increases as more people take advantage of their package deals. In addition, it attracts

new and potential customers while keeping the existing customers loyal to the

company's brand.

Largest transportation and logistics provider in the Philippines

Besides being well-known as one of the most extensive integrated transportation

and logistics providers, 2GO Group Inc. also has many other advantageous

characteristics. Consequently, because the company has established a strong brand

image, it is simple for them to introduce products under their brand name, they have

credibility. As a result, the company has gained customers' loyalty.

Wide array of logistics services

2GO Group Inc. offers various logistics services, whereas they also provide e-

commerce logistics services. In addition to air travel, it provides a comprehensive range

of external logistics services, including transporting goods, international trading, and so

on.
Good management

There is a strong management team at 2GO Group Inc., with managers who

respect and appreciate their employees. Provide necessary resources, share their

knowledge while also listening to their concerns and suggestions, and assign tasks

effectively to their team, increasing employee morale.

First to offer luxury domestic cruises locally

Through its subsidiary 2GO Travel, the company is a pioneer in the domestic

cruising industry and was the first to offer luxury domestic cruises in the country, with a

variety of onboard entertainments and activities to keep its customers entertained.

Well-trained managers and staff

2GO Group Inc. has well-trained and experienced managers in the workplace

who are familiar with all of the company's touchpoints and qualified crew members

capable of navigating and operating the ship. Through this, well-trained managers and

staff help the companies be more efficient and competent in their business operations.

With that, the customers also benefit from the company's well-trained and skilled

management team.

Cleanliness and orderliness of ports

The company is well-known worldwide for its innovative port and ship designs.

As an additional service to its passengers, the company maintains a clean and orderly

environment in its ports to ensure its customer's comfort. There are plenty of chairs

available, and they provide a variety of activities such as massages, pedicures, and

other services to keep them entertained while they wait for boarding.

Excellent organizational structure

 The 2GO Group Inc. is a well-organized company with a robust organizational

structure within the organization. With that, the people under the organizational

structure have done their responsibilities well, resulting in a consistently well-organized

distribution of work. They have an excellent relationship within their organization;

everyone knows where to report, which helps keep their company organized and

prevents miscommunication and misunderstanding.

Advanced technology

Another strength of 2GO Group Inc. is its advanced technology, which has

contributed to its increased productivity. The company's productivity has increased due

to the use of advanced technology in areas such as transportation and shipment

tracking.

External partnership with known logistics companies

2GO has several strategic alliances with well-known and large logistics service

providers, such as Kerry Logistics Phils Inc. and FedEx Express, and so on.

 Weaknesses

Limited services

Due to a lack of resources and capacity, high operating costs, 2GO can only

provide limited services to its customers. In light of this factor, consumers' decision-

making processes may be negatively affected. Therefore, there's a possibility that the

customers will look for alternatives that will benefit them and fulfill their needs and

desires.

Poor marketing strategy

 In this case, 2GO Group Inc. performed poorly in terms of marketing activities.

Their social media accounts did not contain any information about any actions

undertaken by the company to promote its products and services, which would have

assisted the company in raising consumer awareness and providing information about

the company's products and services to consumers. The lack of a marketing strategy for

the company's products and services may harm the company's popularity, and sales

may suffer, which can negatively impact the company.

Limited Packages

2GO offers a limited number of packages because the prices of their products

vary seasonally, timeframe, and other factors that can affect the costs.

High maintenance cost for facilities

The company's facilities may be one of its strengths. Nonetheless, they may also

be a source of weakness, as the facilities and amenities onboard must be thoroughly

checked and maintained regularly to ensure that they are always in proper working

order at any given time. With that, the company spends a significant amount of money

on maintenance to keep their facilities in good condition.

High ship maintenance cost

As the ship undergoes regular maintenance, its sturdy foundation degrades over

time. It is put through its paces weekly as it travels to and from its destinations. It

becomes a source of weakness for the 2GO Group Inc. because the raw materials to

construct new ships can only be obtained from a limited number of sources. As a result,

it will be more expensive for the company because the vessels will require more regular
inspections to maintain and keep the ship in the best and most efficient condition

possible.

Slow response to customer complaints

One of the contributing factors is the management's inability to respond quickly to

customer complaints. The company has poor customer service in terms of the quality of

service received or the experience that passengers encounter. It can happen at any

time, and as a result of many passengers, the staff may find it challenging to meet their

customers' expectations.

Limited shipment routes

Shipping companies, specifically 2GO, have restricted shipment routes due to

the outbreak, which has resulted in the current situation. As a result, the companies'

operations were delayed and can affect the business operations.

Seldom to offer sale packages

Due to the company's limited packages to its target market, its product packages

vary depending on the season, duration, type of accommodation, and other factors

affecting the prices that result in the company seldom offering sales packages.

The inefficiency of employees

There are instances where, due to the massive number of employees in a

company, some employees are not efficient in their designated tasks or the company's

operation because the company's employees are not all being monitored by the

managers in their workplace.

Lean season
 Another source of weakness for the 2GO Group Inc. is during the lean season,

because in this case, the company may have a lower number of passengers, which will

result in the company generating less profit, and as a result, generating less income for

the entire workforce.

 Internal Factor Evaluation (IFE) Matrix

KEY INTERNAL FACTORS WEIGHT RATING WEIGHTED

SCORE

STRENGTHS

1. Affordable Travel/Package Deals 0.03 3 0.09

2. Largest Integrated Transportation and 0.10 4 0.40

Logistics Provider in the Philippines

3. Wide Array of Logistics Services 0.09 4 0.36

4. Good Management 0.08 4 0.32

5. First to Offer Luxury Domestic Cruise 0.02 4 0.08

Locally

6. Well-Trained Managers and Staffs 0.06 3 0.18

7. Cleanliness and Orderliness of Ports 0.03 3 0.09

8. Excellent Organizational Structure 0.06 4 0.24

9. Advanced Technology 0.08 4 0.32

10. External Partnership with Known 0.03 3 0.09

Logistics Companies

WEAKNESSES

11. Limited Services 0.06 1 0.06

12. Poor Marketing Strategy 0.04 2 0.08

13. Limited Packages 0.07 1 0.07

14. High Maintenance Cost for Facilities 0.03 2 0.06

15. High Cost of Ship Maintenance 0.03 2 0.06

 16. Slow Response to Customer 0.04 2 0.08
Complaints

17. Limited Shipment Routes 0.05 1 0.05

18. Seldom to Offer Sale Packages 0.04 2 0.08

19. Inefficiency of Employees 0.06 2 0.12

20. Lean Season 0.03 2 0.06

TOTAL 1.00 2.89

Analyzing each factor included in the strengths and weaknesses in Internal

Factor Evaluation (IFE) Matrix and considering their importance to the overall operation

and the relative success they could bring to the firm in the industry, the following

interpretation has been made:

a. The factor that got the highest weighted score is the “Largest Integrated

Transportation and Logistics Provider in the Philippines” with 0.40 weight

out of 2.89. One reason that made it the highest is its weight of

importance. Its factor got 0.10 weight of importance out of 1.00. Being the

Philippines' biggest integrated transportation and logistics company, with

five operating divisions, 2GO Group has built a name for itself by offering

the greatest travel experiences, efficient transportation of shipments and

packages, and stimulating company growth in local and global markets.

This factor was given the highest weight because given that 2GO is a

service-driven firm, the scale of their firm is significant to their success

because it makes their deliveries faster and organized without being

restricted by numbers of tanks, trucks, containers, shipments, and load

requirements. Their business scale enables them to move ahead of their

 competitors in the industry. This factor was given a 4 rating because 2GO

are using their assets efficiently to their own advantage. Currently, 2GO

Express International Service has covered 250 countries, providing their

customers international logistic services. It’s the same nationwide wherein

their operation is very extensive, allowing everyone who uses their

services to ship their cargo almost anywhere in the country, and they still

have the means to expand in the future.

b. When it comes to the factor that got the lowest weighted score, the

“Limited Shipment Routes” has 0.05 out of 2.89. 2GO Group, as said, is a

transportation and logistics company. Meaning the more extensive the

routes that they can access, the more opportunities they could get.

According to the information and data that is accessible on their website,

they consider vessels as their primary instrument to deliver cargo units

and accommodate onboard passengers. Hence, shipment routes are very

vital to their overall operation, the reason why this factor is given 0.05

weight of importance out of 1.00. This factor was also given 1 as its rating

because to be restricted or limited by location boundaries to sail their

vessels is considered as one of 2GO Group’s major weaknesses for

there’s a high probability that it will result in inefficiencies and fewer profit

opportunities.
F. SWOT STRATEGIES
G. STRATEGIC POSITION & ACTION EVALUATION (SPACE) MATRIX
 The results in the SPACE Matrix suggested strategy type for 2GO Group

Inc is competitive. This means that 2GO is competitive in the industry but not

stable with their financial strength. 2GO must develop a competitive strategy that

is efficient and can strengthen the cash flow.

Analysis of Rating

Financial Position (FP)

 Return on Investment

The pandemic has cost 2GO Group Inc a total of Php 1.8 billion in lost revenue in

2020 and Php 892 million in 2019 (2GO Group Inc., 2020). With this, 2GO Group Inc.

has a -28.74 return on invested capital (WSJ Markets, 2021). According to the PSE

Stock Report (2021), 2GO Group is currently unprofitable, and losses have escalated

over the last five years, thus the result of rating 1.

 Leverage

According to the annual financial report of 2GO (2020), the total current and non-

current liabilities of their company in 2020 is over 13 million. The current liabilities (Php

8,507,831) of 2GO does not cover their current assets (Php 7,932,406), thus the result

of rating 2.

 Liquidity

According to the annual financial report of 2GO (2020), the total non-current

asset of the company that can be sold is Php 6,827,050. Despite having a good amount

of liquidity, it is still not enough to pay with the current liabilities of the company, thus the

rating of 3.
  Working Capital

The working capital of 2GO Group Inc. is the difference of current assets and

current liabilities. According to the annual financial report of 2GO (2020), their total

current assets is Php 7,932,406 and the current liabilities of the company is Php

8,507,831 thus, the working capital of 2GO Group Inc is -575,425 for the year of 2020.

The amount of working capital of 2GO Group Inc. is not enough to cover its short-term

obligations, resulting in the rating of 2.

 Cash Flows

According to the annual financial report of 2GO (2020), the total cash and cash

equivalents of the company in 2020 is Php 890,127. It is stated in their statement of

cash flows that the company’s total cash and cash equivalents for the year end 2020

has dropped from Php 892,540 in the year 2019, this results 3 in rating.

Stability Position (SP)

 Rate of Inflation

According to the current President and CEO of 2GO, Frederick Dybuncio (2020),

the Philippines ' GDP contracted by 9.5% in the year 2020 and he called it the worst

GDP performance of the country for the last 50 years. The challenge in the country's

economy resulted in an inflation rate of 2.6% as per the data in Statista. Dybuncio also

stated that it decreases their consumers' demand and confidence to spend, and as an

effect, their revenues have declined by 46% at the end of the year. Those stated data

are the reason why this factor was given a 5 rating. It doesn’t get a maximum of 7
because 2GO was able to conduct a turnaround plan, trimming their revenue loss by

18% in the first half of the year 2021.

 Technological Changes

As the years go by, digital innovations are being designed to allow businesses

like 2GO to deliver faster and convenient transactions to their consumers. This factor

was given the highest possible rating because as stated in the 2021 2GO annual

stockholders’ meeting that can be seen on their website, they are continuously investing

in modernizing their software and automation system to improve their service and

company’s efficiencies. They have also installed a new warehouse management system

to boost their capacity to handle their clients' fulfillment requirements through improving

their operations electronically, enhancing customer interface, demand, and stock

control. Hence, their company is not overlooking modernization projects.

 Price Elasticity of Demand

2GO is a service firm that doesn’t constantly change its service price unless

demanded by its price promotional campaign. This factor was given a 4 rating because

most of 2GO’s services are considered affordable by most of their target market and

can’t be considered as a luxury service so they only have a neutral price elasticity of

demand, given that they are not that sensitive to price changes.

 Competitive Pressure

2GO Group Inc. handles the competitive pressure in their industry very well and it

shows on their Competitive Profile Matrix. This factor was given a 2 rating because

even though the tension of the competing companies in transportation and logistic firms

is active, 2GO was able to step up and beat their competitors in almost all critical
success factors. 2GO’s ratings are outstanding, however, it was not given the highest

possible rating because some factors can still be improved to reach the superiority

level.

 Barriers to Entry into Market

2GO Group Inc. was able to comply with all necessary requirements to operate in

the industry like government regulations, high entry costs, location restrictions,

economies of scale of existing firms, and so on. This factor got a 2 rating because 2GO

was already operating for 148 years and they can expand their services despite the

barriers that would have restricted them every time that they enter a new service

offering for their consumers.

Competitive Position (CP)

 Market Share

2GO Group Inc. is the country’s largest integrated transportation and logistic firm.

Compared to its competitors, 2GO has the most number of access in international

boundaries, having 250 countries to serve and it is the same with their nationwide

services wherein their operation is very extensive, allowing their consumers to ship their

cargo almost anywhere in the country. This proves that 2GO has the biggest market

share compared to other logistics and transportation companies in the Philippines,

hence their 1 rating.

 Product Quality

As said on the other factors, 2GO is constantly investing in their technologies,

software, and other related assets to improve the quality of their way of delivering

services to their consumers. Moreover, their service portfolio that is visible on their
website, is extensive enough to give necessary choices for their consumers to choose

which among the available services is more suitable for them, minimizing the possibility

of delivering disappointing and failed service. 2GO is given the best possible rating

because 2GO has never been into controversies regarding its services. Hence, they are

able to stick to their mission to give their consumers the best condition, comfortable,

and reliable service within the required time frame.

 Customer Loyalty

2GO is smart in innovating its services to establish customer loyalty. As the

needs of customers become rampant and aligned with the current market trends, the

services that they offer won't become wide and specific too. This factor was given a 2

rating because 2GO has managed to adapt its services to the current needs of the

consumer market, encouraging them to repeat transactions with their company because

they already have the services that their consumers might need. They’ve finally offered

other services aside from transportation and shipping of cargo such as money

remittances, hyperlocal services, courier mailroom, and it’s expected to still expand in

the future as per the 2021 2GO annual stockholders’ meeting uploaded on their

website.

 Technological Know-How

When it comes to Technological Know-How, 2GO is consistent in publishing their

development information, annual financial report, future plans, corporate governance

policies, annual sustainability report, operations, and other information that’s related to

technologies on their website, and it makes their data and information tracking more

efficient and effective that’s why it was given the highest possible rating.
  Control Over Suppliers and Distributors

Using their assets, connections, and capabilities, 2GO is able to get supplies or

the solutions that their consumers need directly from the main store, office, or

warehouse where it would usually come from. In terms of distribution, 2GO also has

extensive nationwide transportation and network of facilities to deliver the supplies to its

required drop-off point with ease, confidence in its quality, and respect to time, which

explains the 2 ratings.

Industry Position (IP)

 Growth Potential

2GO Group Inc.'s growth potential is rated 4 since the company intends to

enhance its service offerings to consumers and stakeholders. 2GO’s management

plans to simplify the process of operations to make it more efficient and do collaboration

across business units. 2GO Group Inc. will also invest in their warehousing and

logistics, to its information technology solutions to enhance customer service and of

course, synergies (BusinessWorld, 2021). This clearly demonstrates that the

management prioritizes the company's growth and expansion in order to deal with the

economic slowdown caused by the epidemic.

 Financial Stability
 2GO Group Inc. financial stability is rated 3 due to the inconsistencies of its

revenue growth for the year 2021. Although the company has already trimmed their net

loss of 621.6 million from P308.7 million this 2nd quarter of 2021 and 2GO Logistics

services has increased 36.4% to 1.5 million, this is surely not enough as an indicator of

financial stability (Business World, 2021). Still, the revenue in 2GO Freight has

decreased from 10.1% or P93.8 million. 2GO Group Inc. is still recovering from the

pandemic and it still hinders them to be fully operational.

 Ease of Entry into Market

2GO Group Inc. is one of the most known logistics and transportation providers

in the Philippines, they labeled themselves as “first choice” in the industry (2GO Group

Inc., 2021). 2GO is rated 4 in the ease of entry in the market if they will launch again

other business units. Since their brand is well established and has a good reputation in

the industry, customers and stakeholders will warmly welcome them. In fact, 2GO has

launched its newest business unit last year, the 2GO Connect and was widely

patronized by the consumers in Luzon, Visayas and Mindanao since the online

businesses have boomed (SunStar, 2021). Although the 2GO Connect is widely

patronized and has an ease of entry into the market, it is rated 4 since the business unit

is new and not fully established, there are still more accessible and more affordable

logistics providers in the country.

 Resource Utilization

The resource utilization of 2GO Group Inc. is rated 5. According to Mercurio

(2021), 2GO was able to utilize their automated sorting machines in its facilities,
processing more 140,000 parcels a day. The company has utilized their advanced and

innovative technologies and modernized the way of their business operations, resulting

in them improving their production outputs. The investment of 2GO Group Inc. in its

information and technology has given them an advantage, however, the company still

needs to double its production to recover its losses.

 Profit Potential

2GO Group Inc. 's profit potential is rated 2 since they are still in the process of

recovering their loss from last year. 2GO logistics and other services grew at 36.4% to

1.5 million, the company is still able to generate profit to recover their loss. 2GO Group

Inc. is still recovering from the pandemic and it still hinders them from fully operating the

business at its peak.

H. GRAND STRATEGY MATRIX (GSM)

 2GO Group Inc. falls in the quadrant 1 of Grand Strategy Matrix (GSM),

meaning that the company should pursue and focus on their strategies in market

development, market penetration, product development, forward integration,

backward integration, horizontal integration and related diversification.

The overall growth of 2GO in terms of making revenue is good, however

there are things that has been hit due to these pandemic hundreds of millions

have been lost in just a year, but 2GO is doing its best to adapt to certain

changes and challenges up ahead, according to BusinessWorld.

2GO Group, Inc. “trimmed its second-quarter net loss to P308.7 million from a

loss of P621.6 million in the same period a year earlier, as the cost of services

and goods sold fell.

The total revenues for the quarter decreased by 2.6% to P3.8 billion from

P3.9 billion in the previous year.

2GO’s second-quarter results showed. By business segment, freight

revenue for the quarter rose 49.4% to P849.7 million, while travel revenue

declined 10.1% P93.8 million.

The company trimmed its attributable net loss for the first six months of

the year to P599.8 million from a loss of P730.5 million in the same period a year

earlier.

So, as we can see in the data above there are things that have been

heavily affected, one of which is the travel revenue, but there are also services

that have been positively affected like the freight revenue which has dramatically

increased. So regardless of their big loss the company is doing its best to cope
 up with it, and we can see that hundreds of millions have been lost but as months

goes by, they are rapidly regaining to make some profit and the continuous

cutting of net loss. It is also reported in another article from Philippine daily

inquirer that 2GO invests 150m in digital push to keep up with E-commerce

group it has also been quoted by the company that this modernization program

aims “to cater to the growth of the courier and e-commerce business.” “2GO

Express invested in new technology that enhances efficiency, speeds up

processing times and allows scalability while improving reliability,”. So again, we

can see that the company is exerting real effort to secure its future by developing

and upgrading its system not only to have a strong strategy in dominating the

field of logistics but also to ensure its continuous rapid growth and if they can

maintain this strategy, they will have the possibility to compete with large logistics

companies internationally.

I. THE INTERNAL-EXTERNAL (IE) MATRIX

 The internal factor evaluation (IFE) and external factor evaluation (EFE) of

2GO Group Inc. combine to form a total weighted score that falls into the cell II or

belongs to Region 1, which can be described as growth and build. Therefore, as

a result, 2GO Group Inc. should continue to grow and build its position. The

company should pursue strategies centered on increasing backward, forward, or

horizontal integration, market penetration, market development, and product

development.

J. QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)

QSPM (Quantitative Strategic Planning Matrix) for 2GO Group Inc.

Key Alternative 1 - Alternative 2 - Focus Alternative 3 -

Factors Research and on customer Expansion and
development. satisfaction. addition of services

We Attracti Total We Attracti Total We Attracti Total

ight veness Attracti ight veness Attracti ight veness Attracti
Score veness Score veness Score veness
Score Score Score

Strengt
hs

1. 0.0 3 0.09 0.0 4 0.12 0.0 2 0.06

Affordab 3 3 3
le
Travel/P
ackage
Deals

2. 0.1 4 0.40 0.1 2 0.20 0.1 1 0.10

Largest 0 0 0
Integrat
ed
Transpo
rtation
and
Logistic
s
Provider
in the
Philippin
es

3. Wide 0.0 2 0.18 0.0 4 0.36 0.0 3 0.27

Array of 9 9 9
Logistic
s
Service
s

4. Good 0.0 0 0 0.0 0 0 0.0 0 0

Manage 8 8 8
ment

5. First 0.0 1 0.02 0.0 4 0.08 0.0 2 0.04

to Offer 2 2 2
Luxury
Domesti
c Cruise
Locally

6. Well- 0.0 0 0 0.0 0 0 0.0 0 0

Trained 6 6 6
Manage
rs and
Staffs

7. 0.0 1 0.03 0.0 4 0.12 0.0 2 0.06

Cleanlin 3 3 3
ess and
Orderlin
ess of
Ports

8. 0.0 0 0 0.0 0 0 0.0 0 0

Excellen 6 6 6
t
Organiz
ational
Structur
e

9. 0.0 4 0.24 0.0 3 0.16 0.0 2 0.16

Advanc 8 8 8
ed
Technol
ogy

10. 0.0 4 0.12 0.0 3 0.09 0.0 2 0.06

External 3 3 3
Partners
hip with
Known
Logistic
s
Compan
ies

Alternative 1 - Alternative 2 - Focus Alternative 3 -

Research and on customer Expansion and
development. satisfaction. addition of services.

Weakne We Attracti Total We Attracti Total We Atrracti Total

sses ight veness Attracti ight veness Attracti ight veness Attracti
veness veness Score veness
Score Score Score

1. 0.0 4 0.24 0.0 1 0.06 0.0 3 0.18

Limited 6 6 6
Service
s

2. Poor 0.0 1 0.04 0.0 3 0.12 0.0 2 0.08

Marketi 4 4 4
ng
Strategy

3. 0.0 4 0.28 0.0 1 0.07 0.0 3 0.21

Limited 7 7 7
Packag
es

4. High 0.0 0 0 0.0 0 0 0.0 0 0

Mainten 3 3 3
ance
Cost for
Facilitie
s

5. High 0.0 0 0 0.0 0 0 0.0 0 0

Cost of 3 3 3
Ship
Mainten
ance

6. Slow 0.0 1 0.04 0.0 4 0.16 0.0 2 0.08

Respon 4 4 4
se to
Custom
er
Complai
nts

7. 0.0 4 0.20 0.0 1 0.05 0.0 2 0.10

Limited 5 5 5
Shipme
nt
Routes

8. 0.0 4 0.16 0.0 1 0.04 0.0 3 0.12

Seldom 4 4 4
to Offer
Sale
Packag
es

9. 0.0 0 0 0.0 0 0 0.0 0 0

Inefficie 6 6 6
ncy of
Employ
ees

10. 0.0 0 0 0.0 0 0 0.0 0 0

Lean 3 3 3
Season

Sum 1.0
Weight 0
s

Alternative 1 - Alternative 2 - Focus Alternative 3 -

Research and on Customer Expansion and
Development. Satisfaction. addition of services.

Opport We Attracti Total We Attracti Total We Attracti Total

unities ight veness Attracti ight veness Attracti ight veness Attracti
veness veness Score veness
Score Score Score

1. 0.0 0 0 0.0 0 0 0.0 0 0

Reduce 4 4 4
Govern
ment
Red
Tape

2. 0.0 0 0 0.0 0 0 0.0 0 0

Corpora 6 6 6
te
Govern
ance

3. 0.0 2 0.10 0.0 1 0.05 0.0 3 0.15

Econom 5 5 5
ic
Develop
ment

4. 0.0 1 0.06 0.0 3 0.18 0.0 2 0.12

Stable 6 6 6
Supply
and
Demand

5. 0.0 2 0.16 0.0 4 0.32 0.0 3 0.24

Increasi 8 8 8
ng
Number
of
Custom
ers

6. 0.0 1 0.07 0.0 4 0.28 0.0 2 0.14

Adaptati 7 7 7
on of
Service
s to
Social
Needs

7. 0.0 2 0.04 0.0 4 0.08 0.0 3 0.06

Shippin 2 2 2
g
Solution
s

8. 0.0 0 0 0.0 0 0 0.0 0 0

Wareho 4 4 4
use
Manage
ment
System

9. 0.0 0 0 0.0 0 0 0.0 0 0

Adaptati 3 3 3
on to
Data
Privacy
Act

10. New 0.0 1 0.06 0.0 4 0.24 0.0 2 0.12

Destinat 6 6 6
ions

Alternative 1 - Alternative 2 - Focus Alternative 3 -

Research and on customer Expansion and
development. satisfaction. addition of services.

Threats We Attracti Total We Attracti Total We Attracti Total

ight veness Attracti ight veness Attracti ight veness Attracti
veness veness Score veness
Score Score Score

1. Tax 0.0 0 0 0.0 0 0 0.0 0 0

Policy 4 4 4

2. 0.0 2 0.14 0.0 1 0.07 0.0 3 0.21

Impacts 7 7 7
of the
Pandem
ic in the
Transpo
rtation
and
Logistic
s
Service
s
Industry
.

3. 0.0 4 0.16 0.0 2 0.08 0.0 3 0.12

Inflation 4 4 4
Rate
4. 0.0 2 0.08 0.0 1 0.04 0.0 3 0.12
Econom 4 4 4
ic
Growth

5. 0.0 2 0.10 0.0 4 0.20 0.0 3 0.15

Custom 5 5 5
er’s
Changin
g
Behavio
r

6. 0.0 4 0.28 0.0 3 0.21 0.0 2 0.14

Attitude 7 7 7
Toward
E-
Comme
rce and
Logistic
s
Service
s

7. 0.0 2 0.14 0.0 1 0.07 0.0 3 0.21

Digitaliz 7 7 7
ation

8. 0.0 0 0 0.0 0 0 0.0 0 0

Incoher 4 4 4
ent
regulato
r
structur
e

9. 0.0 0 0 0.0 0 0 0.0 0 0

Policies 4 4 4
to
reduce
greenho
use
gases
emissio
ns

10. Poor 0.0 0 0 0.0 0 0 0.0 0 0

 Infrastru 3 3 3
cture
and
Traffic
Congest
ion.

Sum 1.0 1.0 1.0

Weight 0 0 0
s

Sum 3.43 3.49 3.30

Total
Attracti
veness
Score

The table above indicates the best alternative strategy to imply for 2GO Group

Inc., after computing the attractiveness score and total attractiveness score, the

proponents have come up with the result that Alternative 2 – Focus on Customer

Satisfaction is the best strategy to imply with 3.49 Total Attractiveness Score, over

Alternative 1 – Research and Development with 3.43 Total Attractiveness Score and

Alternative 3 - Expansion and Addition of Services with 3.30 Total Attractiveness Score.

These three strategies were chosen and rated among others due to the information and

results gathered respectively in SPACE, Grand, and IE matrices that suggest strategies

that focus or cover continued concentration on the current market, market penetration,

market development, and product development.

K. RECOMMENDATION
Focus on Customer Satisfaction

 Improve customer services via Customer Relationship Management

 The results of the overall analysis of the strategies are focused on the customer

satisfaction. In line with this, the proponents final recommendation is to improve

customer service via investing in customer relationship management (CRM) system.

Customer relationship management improves customer experience, thus boosting their

customer satisfaction and encouraging loyalty to the services and products offered by

2GO. The CRM system stores detailed information of the client's data, including the

personal information, purchasing history, and concerns which helps the customer

service representatives to personalize their communication and learn more about the

customers. With this, it will allow 2GO to have a better and accurate understanding with

the preferences and needs of the customer. Establishing a good and effective customer

relationship program will help the company in satisfying the customers. The quality of

experience, communication and good customer service are the factors that make the

customer satisfied, thus 2GO must invest in a CRM system. Moreover, customer

service relationships not only increase customer satisfaction, retention and loyalty but

also help in boosting the company’s sales.

To extensively discuss the nature of the Customer Relationship Management

(CRM) system, it is software intended to eliminate client data barriers through

organizing them all in one place. It enables companies to have a 360 degrees

perspective of all their client’s information and makes the significant details such as

clients' personal information, purchase patterns, and interaction preference, be readily

available to assist them to reach their consumers for rational reasons and via

appropriate channels. It is also considered as a technological advancement that

replaces the time-consuming manual input of data on spreadsheets which gives the
companies more time to communicate and attend to their customer’s concerns with

ease. Considering the arising issues of customers regarding the slow response of 2GO

to their inquiries and concerns, it is recommended for 2GO Group Inc. to have this

software system be installed as soon as possible and not be later than seasonal

holidays of the country when their business is always on the peak. If 2GO Group Inc.

failed to acquire the said system software before their peak season, there’s a big

tendency that they will overlook a lot of service requests that are sent to them by their

customers, which will inevitably cause massive customer dissatisfaction.

With the various analysis made, the SPACE Matrix, the Grand Strategy Matrix,

and the Internal-External Matrix all yield the same conclusion: the company must

pursue strategies focused on increasing backward, forward, or horizontal integration,

market penetration, market development, and product development. Therefore, the

proponents come up with the three best alternative strategies based on the aggregated

results of these matrices. In accordance with all of the information gathered and the

overall results and analysis of the matrices performed by the proponents on 2GO Group

Inc. The proponents have developed a final recommendation that focuses on improving

customer service through customer relationship management. The increasing number

of customers and the slow response time of the company to customer complaints are

the driving forces behind this recommendation. In addition, it is a more personal

approach in developing new or improved services by the company in the future, and it

can easily identify the needs of the customers. Last but not least, it results in increased

customer satisfaction and retention - ensuring the company's good reputation in the

industry - among other alternative strategies provided. The implementation of this

strategy helps the company become the most prominent and premier transportation and

supply chain in the industry, both domestically and globally.

L. IMPLEMENTATION

IMPLEMENTATIO MONITORING EVALUATION

MANAGEMENT Responsible for Observe if Increased level of

improving overall goals and customer satisfaction.

business strategy objectives are

that will enable the being

company to meet achieved.

market demands

and increase

customer

satisfaction.

HUMAN RESOURCE Responsible for Make use of Strong customer

training employees CRM tools to relationship.

on building and manage

managing customer customer Customer loyalty.

relationships. relationships.

SALES & MARKETING Responsible for the Develop a Larger market share.
 distribution and marketing

marketing of the strategy and Increased customer

products and create a engagement.

services that will marketing

enable the plan to ensure

company to reach a that the

wider market. strategy is

well

implemented.

PRODUCTIONS/OPERATIONS Responsible for the Have proper Increased overall

continuous and observation of productivity.

successful different

operations inside operations

and outside the done day by

company itself. day.

FINANCE & ACCOUNTING Responsible for Observe Increased Revenue.

ensuring that financial

company statements.

operations are

supported by

efficient financial

management.
 RESEARCH & Responsible for Recognize Product Development.

DEVELOPMENT conducting market market needs

research to know and demands.

the opinions and

preferences of the

market.

MANAGEMENT Responsible for the Ensure that all Improved efficiency.

INFORMATION SYSTEM gathering and recorded and

analyzation of data stored Improved customer

that will help the information is service.

management in the correct and

decision-making relevant to the

process. business.

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