Market Penetration, Merger, Acquisition, Partnership, Market Expansion and Horizontal Integration

- BDO use One Network Bank (Rural Bank of BDO) to penetrate in rural areas of Mindanao. One Network will
spearhead the BDO Groups effort to extend its reach and impact to the underserved markets. One Network Bank
is the largest rural bank in the Philippines based in Davao City. (Network Rural Bank of Davao del Sur, Rural Bank
of Davao del Norte and Provident Rural Bank of Cotabato City.) Market penetration
- BDO launched a joint venture with Nomura Securities, enabling us to tap the investing needs of the emerging
affluent in a cost-efficient way. Nomura Securities is a financial service group and global investment bank based
on Osaka, Japan. - merger
- We consolidated our ownership in Generali Pilipinas Life Assurance Corp and rebranded it as BDO Life. By
leveraging on the solid reputation of BDO, we will be in a position to provide protection services to the emerging
Filipino middle class hand in hand with our branch expansion. market expansion
- Putting advertisement on trendy markets today such as internet and TV commercials. Although BDO is the leading
bank in the country and it is necessity to the people to save money, still BDO should improve their brand awareness
to increase their target market not only here in the Philippines but also outside the country. Having a full knowledge
of the market it can also have a big impact in the process of penetration of a foreign market. To continuously gain,
build and sustain a competitive advantage over the competitors, BDO needs to maintain or increase the market share
of their current product and services by combining with pricing strategies, advertising, sales promotion and other
resources.
Market Development
- Since BDO is a bank that operates internationally they produce BDO Nomura Securities Customer Service Hotline
was launched to provide online trading service for local stocks to individual investors. Meanwhile, ONB Customer
Service Centers role was enhanced with backroom support strategies, particularly resolution management, and
customer feedback and quality assurance. A Japan Help Desk was also established to assist Japanese clients with
their banking needs.
- One Network Bank System is being replaced by BDO Nomura Online Equity Trading System.
To attract new potent customers and to increase their sales by putting BDO branches in semi-urban areas, large
scale organizations, and by doing business operation outside the country.
Product Development
- BDO will be working towards establishing an in-branch redemption facility that will allow BDO Rewards
cardholders to use their points to pay for ancillary services and bancassurance products. More than promoting
increased member engagement, this strategy reinforces BDO Rewards as the most comprehensive enterprise-wide
loyalty program in the countrys banking industry.
- BDOs Marketing Communications Group has been steadfast in preserving the Banks brand strength, executing
relevant grassroots campaigns that resonate with its target market. Various localized marketing activities were
aimed at communicating the Banks commitment to bringing its products closer to the retail market, with a keen
focus on improving financial literacy. With the campaign message of Abot pangarap pag BDO ang kausap,
the Bank succeeded in extending its products covering deposit, loans, and investments as well as its online banking
solutions and remittance services to diverse customer segments, helping clients realize their aspirations for a better
life.
Solution in Problem of Slow Customer Service
To efficiently manage consumer concerns, the Bank implemented an effective Consumer Assistance Management
System (CAMS) involving all Business Units serving the retail customers. Overall, the Banks performance has been very
good with complaints and resolution rates well below benchmark tolerance levels.
The successful operating model of BDO Customer Contact Center was replicated for BDO Nomura Securities and
ONB.
BDO looks forward to the implementation of an upgraded Customer Relationship Management System (CRMS)
that will improve customer servicing, account management, and marketing campaign management and boost enhancement
of product offerings. Performance and leadership of the CCC Team will also be further developed through workshops and
talent development programs.
Skilled Workforce
The Bank made great strides in ensuring that the company culture is embodied by each and every employee,
believing that the key element to excellent service delivery and business sustainability is continued human resource
development. Through Values Immersion sessions, employees were coached on living out the BDO attributes of being
confident, collaborative, competitive, solid, inventive, and agile in the workplace. Culture Integration and Compensation
and Benefits Harmonization were also conducted for ONB and BDO.
Position of BDO
The Bank was recognized as the 4th Top of Mind Employer by jobstreet.com in 2016 four notches higher than its
2015 rank and is the only bank in the Top 10 category. BDO is also the first Bank awarded in 2016 by the Department of
Labor with a Certificate of Compliance for General Labor Standards and Certificate of Compliance for OccupationalSafety
and Health Standards. Going forward, the Bank will continue to prioritize strengthening its culture with training programs
geared towards improving customer service and interactive e-learning platforms designed for enhancing the technical
competencies of its millennial workforce.
I.T
BDO will continue to upgrade the capacities of its data center, core system servers and internet access
infrastructure. It will sustain efforts to expand its application program interface and software libraries to support
interoperability and make the system development more agile.
More analytic applications for big data were rolled out during the year, on which the Bank continues to leverage to
gain more client insight, support cross-selling initiatives of all businesses, and monitor feedback for marketing programs.
Marching ahead, platform upgrades will be sustained to enrich the Banks data mining and analytics capability. To
complement the Know Your Client initiatives and to be the basis for service enhancements under the Banks digital strategy,
a biometrics platform with fingerprint and photo match capability will be implemented across branches starting 2017.

SPACE MATRIX
The SPACE Matrix shows that, BDO is located in the AGGRESSIVE quadrant. This entails that BDO
has a very strong strategic position. This means the BDO has an established competitive advantage and makes
use of it as long as possible. Strategies such as market penetration, market development, product development,
market expansion and the horizontal integration strategies are relevant for such firms positioned in Aggressive
quadrant. BDO is in an excellent position to use its internal strengths to take advantage of external opportunities,
overcome internal weaknesses, and avoid external threats. Integration and Intensive strategies should be use by
the company in this kind of situation.

SO STRATEGIES
1. Horizontal Integration
2. Merger, Acquisition and Partnership

WO STRATEGIES
1. Market Penetration

ST STRATEGIES
1. Product Development
2. Market Expansion

WT STRATEGIES
1. Market Development

If BDO can properly execute these strategies, surely BDO can achieve the overall goals and it can gain, build and
sustain a competitive advantage among others.