Big Boss Cement: Stirring Up Industry Competition in the Philippines

In January 2018, the Philippine cement industry changed forever with the entry of the 100-per-cent Filipino-owned cement manufacturing company Big Boss Cement Inc. (BBCI). When the company decided to set up shop with a cheaper, eco-friendly manufacturing process that promised less carbon emission, competition became fierce. BBCI planned to expand its capacity to take advantage of a growth in both infrastructure projects and local demand for cement, but it had to analyze the macro-environmental and competitive forces relevant in the context of its entry in the cement industry. It had to ascertain whether it could differentiate its product based solely on ecological appeal. BBCI also had to ensure that its environmentally-friendly brand promise would work, and anticipate potential obstacles to its success and determine how to counter these hurdles.

This case is designed for use in a graduate-level marketing course in a segment on the analysis of business opportunities and marketing strategies for developing a new market segment. It can also be used in a marketing strategy course to help students conduct a macro-environmental analysis for a new business opportunity. The case offers an opportunity for students to apply different marketing tools to support their analysis of a potential business opportunity. After completion of this case, students will be able to<ul><li>develop a framework for analyzing new business opportunities and evaluating the risks of entering a new business segment;</li><li>understand the relevance of analytical tools such as SWOT (strengths, weaknesses, opportunities, and threats) analysis and Porter’s Five Forces in entering a new business segment;</li><li>understand segmentation, targeting, and positioning, particularly when a product has buyers in different segments; and</li><li>understand the possible obstacles when entering a new business and strategies for managing these obstacles.</li></ul>

• Philippines, Porter’s 5 forces , Marketing Strategy, Segmentation, Targeting, Positioning, STP, Surrogate Buyers