STRATEGIC MANAGEMENT OF DMCI HOMES

Christian Andrew F. Perez

4AAC
Company Background
• In the year 1999, DMCI expanded with its housing division, which was
called DMCI Homes.

• DMCI Homes became stronger, more aggressive and even more

competitive. They constructed the East Ortigas Mansions and added
more amenities and facilities for its residents. Villa Alegre Homes and
Mayfield Park were then erected in 2004 with more improvements and
amenities such as the installation of elevators.
Contd.
As the company kept expanding its business operations, DMCI Homes
grew as a household name in the real estate industry. It began to carve
itself a niche in the real estate business.
All in a span of seven years, DMCI Homes has built the most comfortable,
resort-like residential spaces for urban dwellers. The rapid growth rate of
DMCI Homes can be attributed to its thrust to continuously delight its
customers. DMCI Homes will perpetually continue to create modern
residential spaces in the heart of the city on a budget.
The company's head office is in Bangkal, Makati, though it has several
sales and property management offices in Metro Manila. Isidro Consunji
presides as the president of DMCI Homes. He is also the president and
Chief Executive Officer (CEO) of DMCI Holdings.
Porters 5 Forces
FORCES ASSESSMENT

Rivalry among competing firms Strong force

Potential entry of new competitors Weak force

Bargaining power of consumers Weak force

Potential development of substitute Strong force

products
Bargaining power of suppliers Moderate force
Competitive Profile Matrix (CPM)
• Ayala Land is the overall main competing firm in the industry.
• It has the competitive advantage as compared to DMCI Homes

• Strengths include: Project Quality, Location, Product and Service Quality,

Advertisements, and Consumer Loyalty

• DMCI Homes lacks in Capitalization, Advertisements, and Consumer

Loyalty
External Factor Evaluation Matrix (EFE)
OPPORTUNITIES
• 1st Factor: Young investors capacity to spend
• 2nd Factor: Rising number of BPO’s

THREATS
• 1st Factor: Risk of Flooding in Mega Manila
• 2nd Factor: Tax Reform effected in 2018
Internal Factor Evaluation Matrix (IFE)
STRENGTHS
• 1st Factor : Unique capability in architectural design concepts and
facilities
• 2nd Factor : Cost Advantages over key rivals

WEAKNESSES
• 1st Factor : Small Capitalization in its Projects
• 2nd Factor : Developments are not located in central business areas
MATRICES
• SWOT MATRIX
• SPACE MATRIX
• IE MATRIX
• GRAND STRATEGY MATRIX
• BCG MATRIX
SWOT MATRIX
• 1st Strategy: Penetrate the market of young investors through dynamic,

fast-paced, and quality condominium units located within the center of

Metro Manila at an affordable price.

• 2nd Strategy: Present the company’s products as the best and the most

affordable among all other substitute products for people who are

finding a home in Metro Manila.

STRATEGIC POSITION AND ACTION
EVALUATION (SPACE) MATRIX

X = -.57

Y = 2.5
INTERNAL EXTERNAL MATRIX
TOTAL IFE RATING

IFE = 3.05 STRONG AVERAGE WEAK

EFE = 3.31 3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
HIGH I II III
3.00 to 4.00
MEDIUM IV V VI
2.00 to 2.99
LOW VII VIII IX
1.00 to 1.99
GRAND STRATEGY MATRIX
BOSTON CONSULTING GROUP MATRIX
QUANTITATIVE STRATEGIC PLANNING
MATRIX (QSPM)
• 1st Market Penetration (Present products as the best and the most

affordable for people who are finding a home in Metro Manila)

• 2nd Product Development (Develop more projects outside Metro Manila

• 3rd Market Development (Upload videos on social media sites (i.e.

Facebook, Twitter, YouTube) showing all amenities of their products)

Strategic Issues
• DMCI Homes is a private real estate developer, which undertakes in a

long term, and entrepreneurial undertaking.

• Issues: Low Capitalization: DMCI Homes must ensure that the

developed property will have sufficient value, and meet sufficient

demand in order to compensate the time, labor and other resources used

in the project.
Contd.
• Developments are scattered: DMCI Homes is often restricted by

community zoning laws. Because most city government planners often

engage in Planned Urban Development (PUD), which segregates the use

of real estate (i.e. residential, commercial etc.) into different zones.

Strategic Objectives
• FINANCIAL

• To increase Sales by 7.69% along with the net income to

increase by 7.69%
 Contd.
• STRATEGIC

To increase the Sales of DMCI Homes, by offering its products as the

best and most affordable among all other substitute products.

To increase the Market Share of DMCI Homes by uploading videos on

social media sites (i.e. Facebook, Twitter, YouTube) showing all amenities of
their products.

To widen the geographical coverage of DMCI Homes by developing projects

outside of Metro Manila.
REVISED VISION AND MISSION
STATEMENTS
• REVISED VISION STATEMENT

• To be the leading real estate holding company and elevating

the lifestyle of the common Filipino into a more comfortable
and convenient lifestyle.
Contd.
• REVISED MISSION STATEMENT
• As the country’s first Triple A developer, DMCI Homes creates premium quality,
urban – friendly, fully served communities for the moderate income earning families that
seeks to live comfortably near their place of work, of study and of leisure.
• In doing so, we are committed…
• To find new and innovative ways to satisfy our customers
• To achieve a sustainable growth on our shareholders’ investment,
• To maintain a mutually beneficial relationship with our partners in the business,
• To care for the environment we work in,
• To have an energized, capable, and customer focused workforce
• while building an organization that espouses Integrity, Excellence, and Teamwork.
STRATEGY RECOMMENDATIONS
• MARKET PENETRATION

• The company should exert its efforts in getting the attention

of potential buyers through providing advertisements that
would appeal to buyers most especially to the common
Filipino. To penetrate such wide market, the company
should establish its presence within foreign countries where
huge numbers of foreigners would like to invest in real
estate in the Philippines.
Contd.
• PRODUCT DEVELOPMENT

• The company should make use of the company’s reputation

as a Triple A developer that offers its products at a relatively
cheaper price rather than those of key competitors and offer
units with innovative architectural design concepts to attract
more potential buyers especially those local and foreign
investors who have the capacity to spend more.
HIGHLIGHTS OF THE DEPARTMENTAL
PROGRAMS
Activities Team Responsible Timeline

Plan and execute integrated Marketing Department 1-3 MONTHS

marketing communications plan

Hire additional personnel such as Human Resource Department = <1 MONTH

architects, engineers and

marketing graduates

Increase seminars regarding Marketing Department 1-2 MONTHS

advertising strategies and sales

promotions

Conduct research Research and Development Team 2-3 MONTHS

Contd. Activities Team Responsible Timeline
Determine designs based from the projections on 2-3 MONTHS
Research and Construction Department
developments to be constructed.
Production of high-rise residential buildings that 3-4 MONTHS
Production Department;
displays unique architectural design concepts,
facilities and other add-ups for leisure Research and Development Department;

Sales and Marketing Department

Identify the customer preferences of units in terms of
Research Department; 1-2 MONTHS
their lifestyle

Finance and Sales Department

Increasing security by implementing the use of Production Department; 2-3 MONTHS

electronic key access

IT Department

Creation of DMCI own mobile app 1-2 MONTHS

Marketing Department;

Production Department and

IT Department
Highlights of the Financial Projections
Contd.
Balances Scorecard
FINANCIAL PERSPECTIVE
Objective Performance Measure Target Initiatives

 Marketing, Sales
and Operation
Teams
7.69% growth in net income Boost sales efforts to Positive amounts in the
annually increase profitability income statements  General
Management

 Finance Department

CUSTOMER PERSPECTIVE

Objective Performance Measure Target Initiatives

* Customer Care Unit

To delight customers and At least 5% increase in * Sales, Marketing and

improve customer Sales Growth accuracy and customer Construction
relationship service Department

* General Management
Contd.
INTERNAL BUSINESSES PERSPECTIVE

Objective Performance Measure Target Initiatives

* Purchasing
Develop a system and
Department
training program that
To stabilize convenience Less time lag in
would increase the
in operations constructing a unit * Customer Care Unit
knowledge of the
employees
* General Management

LEARNING & GROWTH PERSPECTIVE

Objective Performance Measure Target Initiatives

* Human Resource and

To explore new avenues Empower all the employees
General Management
for growth of the Annual Net Income growth and give recognition to
employees excellent ones
* Finance Department
•UT
IN OMNIBUS
GLORIFICETUR
DEUS!