Colegio de San Juan de Letran

COLLEGE OF BUSINESS ADMINISTRATION AND ACCOUNTANCY

CHAPTER IV

EXTERNAL ANALYSIS

The external analysis of the Century Corporation is covered in this chapter, which aims to

evaluate the present patterns of numerous outside elements that could have an impact on the claimed

company's entire operation. Also, the potential challenges in  this chapter describes this company's

financial capabilities, competitors, and prospective possibilities and dangers in its industry.

4.1 PESTEL Analysis

4.1.1 Political and Governmental Focus

POTATO CORNER DENIES TRAIN AFFECTED PRICES

The local French-fry company Potato Corner denied that it will be raising prices as a result of the

tax reform law signed by the Duterte administration. The founder and CEO of Potato Corner, Jose P.

Magsaysay, stated that the company has not raised its prices and pointed out that the tax reform for

acceleration and inclusion (TRAIN) bill has never had an impact on them. "There's no truth that we're

increasing our prices because of the TRAIN law, it's not true," Magsaysay told reporters. "In fact we're

very happy with the Philippine economy now, since it's growing, our net profit is also growing year-on-
year." Besides the difficulties that face the food industry, Potato Corner surpassed other companies in

the sector in terms of sales, according to Magsaysay. It is convenient to blame the tax reform package

and ask for its suspension but "we have to match the proposed solutions to issues we want to address,

and TRAIN is not the main reason for inflation," Chua said.

Source:https://www.pressreader.com/philippines/manila-bulletin/20180602/282020442977272 

RELEVANCE:  

The Tax Reform for Acceleration and Inclusion (TRAIN) Law, Republic Act No. 10963, is the

first package of the Duterte Administration's Comprehensive Tax Reform Program (CTRP) to address

deficiencies in the taxation framework. The TRAIN law resulted in a high rate of inflation of necessities.

Increasing the excise tax on oil products raises the price of almost all products on the market.

Consumers are not the only ones who are affected by inflation. Small and medium-sized businesses are

also affected. Although this affects the owners or entrepreneurs and the consumers, Potato Corner made

sure that their customers won’t be affected by this.

PHILIPPINES WAGES: MINIMUM AND AVERAGE

Minimum Wages in Philippines increased to 570 PHP/Day (11970 USD/Month) in 2022. The maximum

rate of minimum wage for employees was 537 PHP/Day and minimum was 89 PHP/Day. 

Source:https://take-profit.org/en/statistics/wages/philippines/ 

RELEVANCE:

Last 2022, the minimum wages in Philippines increased. Higher labor costs (higher wage rates

and employee benefits) benefit workers, but they reduce company profits, the number of jobs available,

and the number of hours each person works. But on the other hand, better wages frequently result in

happier employees, and happier employees are less likely to quit their jobs.

POTATO CORNER NOW AT EVERY CORNER GLOBALLY WITH 1,300 AROUND THE

WORLD

One of the biggest food kiosk businesses in the Philippines, Potato Corner (PC), which sells

freshly cooked, flavor-infused French fries as its main item, keeps growing its presence abroad. Since

March 2022, Potato Corner has been operating as a subsidiary of Shakey's Pizza Asia Ventures, Inc.

(PSE:PIZZA), the largest fast-casual restaurant chain and food service company in the Philippines. It has

more than 1,100 locations in the nation and nearly 200 locations in 12 other countries.  The company

opened three additional shops in Southeast Asia in September 2022 alone, increasing the total number of

new outlets that have opened abroad since joining PIZZA to 33. The group is firm in its commitment to

carry out its goal of raising a Potato Corner flag everywhere in the world.
Source:https://www.thefinancialdistrict.com.ph/amp/potato-corner-now-at-every-corner-globally-with-

1-300-around-the-world 

RELEVANCE:

 Potato Corner has expanded not only here in the Philippines but also globally. The company did

well in following the rules and regulations of other countries. Each country has different policies and

laws in terms of tax, labour, and foreign trade. However, large scale operations throughout the world can

be risky, not only in the brand image but also in the quality of the product, and undoubtedly prices in

different countries overseas, will become inevitably due to the fact that raw materials can possibly have

higher prices in that specific country, and one of the major factors is the cultural barrier.

MAN OF THE HOUR: JOSE MAGSAYSAY

The Chairman and CEO of Potato Corner, the affable Jose P. Magsaysay, Jr., was the keynote

speaker at the 2020 Harvard Business School Alumni Roundtable on October 14. JoMag, as everyone

fondly refers to him, spoke about his renowned French fry company, Potato Corner, its accomplishments

and problems, his health, and his long-term goals.

In 1992, the Potato Corner franchise had a Php150,000 starting budget. Back then, he wanted to take

over the market quickly. He desired for his stalls selling flavored French fries to be located everywhere,

including malls, schools, amusement parks, etc. The first two years witnessed Potato Corner expand to

70 locations. Thousands of Potato Corner franchisees currently operate both domestically and overseas.

Since there was no franchising law in place in the 1990s, they had to develop their own regulations. In

order to adjust to the shifting economic environment, they have also been trying to improve the rules.
Also, Mr. Magsaysay noted that the franchise cost was set in accordance with the economic situation in

the Philippines. Anyone can purchase a Potato Corner franchise for Php350,000.

Source:https://medium.com/the-looking-glass/man-of-the-hour-joe-magsaysay-89146f98736e 

RELEVANCE:

Former President Duterte signed and issued Executive Order (EO) 169 in May 2022, with the

goal of strengthening the franchising sector and protecting micro, small, and medium-sized enterprises

(MSMEs) by promoting an equal and fair and business-friendly environment. Franchise holders of

MSMEs are now required by EO 169 to have franchise agreements registered with the Department of

Trade and Industry (DTI), and all future agreements must adhere to the terms and conditions outlined in

EO 169. The Cinco Corporation is starting to penetrate the market even deeper, domestically and

overseas, the researchers analyzes that if the Cinco Corporation continued to obey the equally fair

business friendly environment, therefore it will widened its reach towards potential franchise holders,

and deepen the company’s relationships towards its franchisees.

FOOD SAFETY STANDARDS & REGULATIONS

These requirements impact business sectors like food processors and producers in every country

as consumers are demanding better safety and quality. Producers and 

+processors exporting food to other countries are subject to their own national regulations and also the

strict enforcements of standards and regulations of the major importing countries.

The implementation of food safety involves a complex mix of laws, standards and accepted good

practices, involving governments, international organisations (e.g. WTO), industry organisations (e.g.

GFSI, BRC), research agencies, independent standards bodies (e.g. BRC, IFS) and independent

certification bodies.

Source:https://www.rentokil.com/ph/food-safety/standards-and-regulations/ 

RELEVANCE:

The Food Safety highlights the value of ensuring that food businesses do not have or will remove any

material that is potentially harmful to public health and safety. It aims to protect consumers' desires

while maintaining the quality they expect. The Cinco Corporation must ensure more that the consumer is

receiving a highly maintained raw materials which is the potato, enact more a hygienic maintenance and

equipment maintenance.

4.1.2 Economic Focus

SUPPLY OF CHIPPING POTATO USED FOR FRIES TIGHTENS GLOBALLY: DA

The supply of chipped potatoes has been more scarce in some fast-food restaurants around the

nation. A fast food crew from Cavite, John Van Lorino, 21, said that because suppliers' supplies were

delayed, they had to limit their serving to regular sizes.

“Last few months, no fries stocks are coming to us ma'am, even those pouches for fries, there’s none.

There are only regular-sized pouches being delivered to us, that’s why [customers] can’t avail of large to

extra large [fries],” he told the PNA in Filipino.

A previous report from the Department of Agriculture (DA) indicated that there is a global shortage of

potatoes used for processing, particularly those used for fast food fries. Table potatoes are mostly grown

by Filipino farmers, and sadly, it is not yet thought to be economically feasible to produce such a type

here.

Table potatoes are mostly grown by Filipino farmers, and sadly, it is not yet thought to be economically

feasible to produce such a type here.

According to a previous report by Evangelista, fast-food companies are more likely to be impacted by

the supply shortage. “Mas nararamdaman po ‘yansamga fast food chains because ‘yungmga chipping

potatoes po ang shortage po globally at ‘yan po ay inaangkat din po nation (It’s more likely felt in our

fast-food chains because the chipping potatoes have shortage globally and we are importing that

variety),” she said by phone.

Source: https://www.pna.gov.ph/articles/1175217 

RELEVANCE: 

There is a worldwide shortage of processed potatoes, primarily those used for fast food fries.

Because of the cold climate and frost, potatoes are not growing as they should as they're producing extra

sugar. As a result, only half of farmer's potatoes are sellable, and this is likely to continue until mid-

2023. This shortage can result in a lack of key goods, price inflation, factory closures, unloaded shipping

containers and negative effects on a nation's economic well being.

POTATO CORNER RAMPS UP EXPANSION

 Potato Corner, a retailer of flavored French fries, intends to grow by building 1,000 additional

stores in the local market and 10,000 stores abroad in the next five to ten years. 

He claimed that because of the pandemic, many people have chosen to stay indoors, and Potato Corner

has had to modify how it reaches clients to sell its goods. “Before the crisis started, we were not into

deliveries. Now, 15 percent of our sales are from deliveries. And that is significant as far as Potato

Corner is concerned,” he said.

Source:https://www.philstar.com/business/2021/05/29/2101497/potato-corner-ramps-expansion/

amp/ 

RELEVANCE:

Entrepreneurs contribute significantly to our economy by establishing new firms and jobs. They

are critical to a flourishing society because they drive innovation and economic prosperity. They are

important to the economy for a variety of reasons. One of the most significant is that they generate new

business opportunities. This is vital for economic growth because it increases competition, stimulates

innovation, and ultimately leads to improved productivity and living standards. A business owner

benefits society by creating jobs and economic possibilities. They also assist in the introduction of fresh

goods and services to the economy, which can improve everyone's quality of life. Furthermore,

entrepreneurs frequently use an inventive and creative approach to trouble, which might result in new

solutions to long-standing social concerns. Finally, entrepreneurs are essential to fostering growth and

success for all.

TATER TRAGEDY: MCDONALD’S PHILIPPINES HALTS SALES OF LARGE FRIES DUE

TO POTATO SHORTAGE

The shortage of french fries isn't limited to the Philippines. The Washington Post reported in

January that the potato supply chain was experiencing problems as a result of COVID-19 as well as

other elements like harsh weather and labor difficulties. After then, huge spud shortages in nations like

Singapore and Indonesia caused restrictions on french fry orders. The issue is so severe in South Korea

that McDonald's there recently began substituting chicken nuggets or mozzarella sticks for side orders

that formerly included french fries.

Source:https://coconuts.co/manila/food-drink/mcdonalds-philippines-halts-sales-of-large-fries-due-to-

potato-shortage/ 

RELEVANCE:

A market shortage happens when there is excess demand, or when the quantity required exceeds,

the quantity provided. In this case, consumers will be unable to purchase as much of a product as they

would want.

‍HOW THIS FILIPINO ENTREPRENEUR CHANGED THE FRENCH FRY INDUSTRY IN HIS

COUNTRY

Jose Magsaysay Jr., the president of Potato Corner at the moment, started out as a small business

owner. Prior to opening his first Potato Corner stall in 1992, he worked as a dishwasher at Wendy's and

eventually worked his way up to become a district manager. The difference between Potato Corner's

french fries and those sold by other companies is that they flavor them with powders, including cheddar,

barbeque, sour cream, and onion.

Source:https://spudsmart.com/filipino-entrepreneur-changed-french-fry-industry-country/ 

RELEVANCE:

Small businesses help the economy with their innovative concepts and products. Furthermore,

because they operate locally, they offer work possibilities with a preference for local residents, resulting

in fresh job creation in a nearby town or city. Small firms are also more adaptable and may be founded

by practically anyone with tenacity and an innovative idea, making them more diverse in shape,

function, culture, and potential.

MAN OF THE HOUR: JOSE MAGSASAY

The Chairman and CEO of Potato Corner, the affable Jose P. Magsaysay, Jr., was the keynote

speaker at the 2020 Harvard Business School Alumni Roundtable on October 14. JoMag, as everyone

fondly refers to him, spoke about his renowned French fry company, Potato Corner, its accomplishments

and problems, his health, and his long-term goals.

Also, Mr. Magsaysay kindly provided the strategic plans for Potato Corner: 

Franchisees of Potato Corner are trying to keep profitability while the pandemic has an impact on the

global economy. By Christmas, Mr. Magsaysay stated, franchisees should be profitable because the

holiday season will see a rise in consumer spending. When the state of the nation's quarantine returns to

GCQ, they hope to accomplish this. The management company of Potato Corner is also considering

providing deliverable food items. As French fries are delicate, producers are making other goods to sell
instead. They also hope to collaborate with Grab and, in some little manner, contribute to the revival of

the Filipino economy.

Source:https://medium.com/the-looking-glass/man-of-the-hour-joe-magsaysay-89146f98736e 

RELEVANCE:

Potato Corner makes a huge adjustment during the pandemic. By following the protocols and

rules that the government has implemented, Potato Corner has become more cautious for the safety of

not only the company but also their consumers. For the convenience of their customers, Potato Corner

partners with different kinds of online food delivery applications. Like, Grab Delivery, and FoodPanda.

4.1.3 Social, Cultural & Demographic Focus

THE CHANGES OF FILIPINO CONSUMERS’ BUYING BEHAVIOR AMID THE PANDEMIC

The unexpected yet speedy advent of the global pandemic has turned it into a big fright for every

consumer in the Philippines, sending people in a frenzy about shopping and racing into the marketplaces

to ensure that their families' pantries would never run out of supply during the lockdown. According to a

Nielsen article, there are six threshold levels that include the early signal of spending patterns,

particularly for emergency pantry items and health supplies, such as proactive health-minded buying,

reactive health management, pantry preparation, quarantined living preparation, restricted living, and

living a new normal. These thresholds represent a shift in consumer behavior, making customers more

interested in items that will secure their health and wellness. Furthermore, because of the availability of

inventory and supply chain issues, prices may be altered during these times.  (Tayao-Juego, 2020).
Source: https://business.inquirer.net/293494/consumer-behavior-shifts-amid-covid19-pandemic

Relevance: This article analyzes how fast purchasing behavior may be impacted. the customers as a

result of the onset pandemic that has occurred up to this point. Because Cinco Corporation is a well-

known brand that provides a fast-food take-out stall for Filipino consumers, this may be a major market

potential for them. By delivering a lot lower price while still considering a healthier, enjoyable, excellent

quality, and nostalgic flavor of French Fries, the corporation may continually enhance its sales, increase

brand marketing, and grow their revenues. Furthermore, it will gain competitive advantage over its

competitors since they provide a variety of French Fries that may be possibly beneficial for the

consumers.  They must ensure the quality of their products, offering customers the comfort that all are in

conformity with safety measures controlled by the National Food Authority.

THE NEW CHARACTER PURCHASING BEHAVIOR OF FILIPINO PEOPLE TOWARDS

FOOD PRODUCTS

            According to recent literatures of (Pantano et al. 2020), It has been shown that a perceived

scarcity of food products can significantly affect consumer choices. Since the beginning of the COVID-

19 outbreak early 2020, consumers in the Philippines have displayed stockpiling behaviors that

significantly deviate from their usual shopping behavior. A further consequence of the lower

accessibility of store premises, combined with consumers' greater health concerns, has been an

immediate increase in demand for alternative distribution channels. Unexpected regulations imposing

social distancing are further having a vast impact on consumers’ favored channel for shopping. For
example, while online grocery shopping has witnessed stable though limited growth in the last decade, it

has significantly increased during the COVID-19 pandemic crisis. Additionally, older and less digitally-

savvy consumers have started discovering and enjoying online shopping, welcoming the safety offered

by technology.

In addition to the acceleration of online food deliveries, other distribution options in which no physical

human interaction is needed may gain in popularity. Anti-epidemic measures and the call to leave the

house only in the most urgent cases have brought a large number of orders for delivery to end users and

growth of this business. Argue that history has shown that times of crisis often result in major

transformations throughout society and recommend paying attention to consumer behaviors in each of

these three phases: reacting, coping, do-it-yourself behaviors and then also longer-term adapting.

Source:https://www.sciencedirect.com/science/article/pii/S0969698921001089

RELEVANCE:

Since there are numerous inevitable changes in consumer purchasing behavior, Cinco

Corporation/Potato Corner must understand the ideal approach for marketing their food items in order to

satisfy the necessities/demand of their consumers. While contemplating this threat to customers, they

must see an opportunity to establish a positive brand image that meets the wants/needs of its consumers

even in the event of a pandemic. One conceivable option is to generate a revolutionary transition in

which the Cinco Company decides to use online apps that allow consumers to purchase in the

application from the comfort of their own home or anywhere. Associated with these is the capacity to

deliver such items door-to-door, therefore igniting the possibility for the company's products to be
chosen and purchased by its consumers. Most significantly, companies must interface with various e-

payment systems in order to broaden customers' access to the company's products and encourage them

to purchase them due to the convenience provided. Furthermore, they must emphasize the production of

more sustainable products and make this a fundamental component of their offering.

FILIPINO ENTREPRENEURS WAYS OF REACHING ITS CONSUMERS

The Philippines is a young and youthful consumer market with great potential for expansion.

Shopping experiences are important to Filipino consumers, who like going to malls not just for shopping

but also for family or social gatherings. Shopping in modern retail is viewed as a representation of urban

lifestyles by aspirant Filipino middle-class clients. At the same time, the Filipino client dislikes

ostentatious spending, prioritizes his family life, and is both conformist and impulsive. Moreover,

advertising has contributed to the growth of consumer society by portraying physical attractiveness and

commercial goods as a route to pleasure and wealth. The majority of Filipino consumers prefer to visit

retail locations where they can touch and feel the goods and value the services provided during the

purchasing process, although internet shopping is becoming increasingly popular among young

Filipinos. In the same lines, Filipinos are among the world's most socially concerned customers. 86% are

prepared to pay more for products and services from firms that are devoted to beneficial social and

environmental consequences. According to a Santander article, food and non-alcoholic drinks account

for 42% of family consumption spending. Consequently, it comprises how buyers place value on the

market's key requirements.

 
Source:https://santandertrade.com/en/portal/analyse-markets/philippines/reaching-the-consumers

Relevance: This article describes how Filipino consumers behave in the market business and how

entrepreneurs reach out to their consumers; as a result, it is important for Cinco Corporation to

understand its customers and current trends, particularly when it comes to changing in the digital world.

It not only adapts to the new generation, but it also broadens the range of what the firm may provide to

its customers. Cinco Company must continue selling their products to various Potato Corner businesses

because Filipinos adore traveling to such places; however, they should also expand their possibilities by

selling their products digitally.

THE CHARACTER OF CONSUMERS IN THE PHILIPPINES

Maxwell Maltz, a well-known psychologist, believed that it takes 21 days for a given line of

action to become a habit. If you practice this behavior for 66 days, it will become a habitual response. If

this answer is repeated for 180 days, it becomes a part of one's personality. With the epidemic

continuing for several months, it is understandable that changes in our tastes and the way we consume

products and services have become profoundly ingrained in our character. According to Nielsen,

changing socioeconomic and behavioral trends have a considerable impact on fast-moving consumer

items (FMCG). In the Philippines, consumers are frequently more focused on "homebound lifestyle"

items. Food and dairy, for example, had a significant increase in the country and throughout Southeast

Asia.

During the COVID-19 pandemic, consumer priorities have shifted to the most fundamental necessities,

driving up demand for sanitary, cleaning, and staple items while decreasing demand for non-essential
categories. Many elements that impact brand selections are shifting as the "buy local" trend accelerates

in these difficult times. Additionally, internet commerce has grown, causing traditional supermarkets to

see a decrease in the amount of things sold. As a result, many people are shifting to online food

shopping, which is expected to continue post-outbreak. One of the reasons for e-popularity commerce's

is the incredible expansion of e-payment systems such as G-cash and Mobile banking, which provide

customers with a great deal of ease on their side. As a result, customers are adapting to new habits and

behaviors, which many predict will persist in the long run. There is an increase in conscious

consumerism, in which customers become more aware of what they are purchasing and attempt to

reduce food waste, shop cost-effectively, and purchase more sustainable choices. Furthermore,

customers are becoming more interested in the local; as a result, businesses should look at ways to

emphasize local origins or engage in locally relevant ways.

Source:https://www.accenture.com/us-en/insights/consumer-goods-services/coronavirus-consumer-

behavior-research?fbclid=IwAR00PS4MOdOl7LBoKQ0EarAP4xUQq6daqK-

VIC5WxGz6Va3TJYCy92PU2YQ

RELEVANCE: As we all know, since there are inevitable changes when the COVID-19 break out on

the whole world, one of the countries who suffered a lot is the Philippines. The Cinco Corporation must

necessarily understand that the company must adapt to the changes, and see this crisis as a greater

opportunity for them to gain revenue and profit from their businesses. However they must consider first

the more senseful or useful strategy that the company will utilize in order to satisfy the demands of the

consumers. They must create a better brand image that meets the needs and demands of its current and
future consumers in the midst of pandemic. One possible solution for their travails during the pandemic

is to create a transformational change, wherein the company will create a system based on pandemic

ways. Wherein the Cinco Corporation will be able to create a better digital marketing, and online

advertising, on where it will be posted to mostly used online platforms daily to remind consumers that

even in the midst of pandemic, the Cinco Corporation / Potato Corner can still possibly operate and

serve them with French Fries they enjoyed. And the company must relevantly see these opportunities to

start an online applications or websites wherein the products can be ordered and delivered to the

consumers at the comfort of their homes, and also enabling consumers to utilize varieties of e-payments

in order for the consumers to have an easy access to the Potato Corner’s products.

HOW DOES MARKETING WORKS DURING THE COVID-19 PANDEMIC?

            According to current articles of (Pauwels and Neslin 2020). During the COVID-19 crisis,

marketing is faced with a major challenge: how do we get the products to buyers? Distribution is limited

and many retail chains (IKEA, clothing chains) have even been forced to (temporarily) close their doors.

Companies with their own online channel are at an advantage compared to stores that only operate

offline. Research shows that companies that apply a multichannel strategy in which they combine offline

and online channels, perform better in terms of share of wallet and in terms of revenues. Such

companies reacted better during the pandemic because they were already prepared to offer their products

and services online where others were not and were therefore more responsive to changes in the

customer journey. At the same time, the increased demand for their products also necessitates creative

solutions. For example, a popular department store in the Netherlands (HEMA, where online sales have

trebled) is using around twenty stores as distribution centres to avoid long waiting times at the central
distribution centre. The Rituals cosmetic chain has chosen a similar strategy (300% increase in online

sales). Deliveries of products ordered by customers in the local area are also being made by bicycle.

Some stores are also offering digital sales advice, for example via WhatsApp or FaceTime. Concerts and

theatre performances are also being streamed live.

Although research has shown that communication in times of contraction favours national brands

, advertising, especially in mass media, has nevertheless declined dramatically. Globally, we observe a

decline in advertising expenditure of about 10%, Footnote3 with television advertising expenditure

decreasing by 25%. Communication is directed less at acquiring new customers; instead, most

companies are devoting greater attention to their existing customers. There are, however, also companies

that increase their investments in advertising. Examples are Proctor and Gamble and Unilever,

companies that are less impacted by COVID-19 given the wide range of products for daily use. The

same can be observed when we consider the more intense communication o f grocery retailers and

retailers of do-it-yourself products, furniture, cosmetics, etcetera. It is suggested to use combinations of

classical and social media, given that these two types of media offer opportunities for synergy when they

are used in combination. However, the COVID-19 crisis also offers opportunities for customer

acquisition. The increase in the use of the online channel allows companies to collect data about new

customers. This data can be used to profile these customers (e.g., to compare them with similar

customers based on their buying behaviour), possibly leading to the identification of new target groups.

The next step is to target these new customers with suitable or even customized offers.

SOURCE:https://link.springer.com/article/10.1007/s43039-020-00016-3

 
RELEVANCE: This articles has shown that the COVID-19 Pandemic had majorly impacted the

marketing and distribution management of multiple firms across the world and it has been a major

travails for almost all the businesses across the world and especially the Philippines. In the Philippines

Local enforcement of transportation limitations is causing bottlenecks in the supply chain, notably for

manufacturing inputs and produce delivery. Community quarantine has had a tremendous impact on the

consumer and retail components of food commodity chains. Prices for food and packaging commodities

have increased by more than 22 percent. Manufacturing wages and labor costs rose in 2020 from 5 to 20

percent of total costs. With this the Cinco Corporation must innovate and think of new approaches

during this crisis and see this crisis as a greater opportunity for the businesses in order to gain profit and

for the sake of the survival of its businesses. The Cinco Corporation may benefit from increased

consumer confidence by using marketing methods that assist in the establishment of long-term

connections with consumers. In a post-pandemic economy, businesses that develop effective methods to

engage with customers will prosper and become local pillars. It is vital for firms to be sensitive, use

smart marketing, and be sympathetic to the predicament of their customers. Companies must

acknowledge the crisis while maintaining positive characteristics that will keep customers coming back

for more. Cinco Company should also consider investing in e-commerce or digital marketing. E-

commerce increased dramatically during the lockout. E-commerce sales have reached historic heights,

accounting for 33.4% of total retail sales. Online sales are projected to stay robust as more firms have

opened their doors after restrictions were loosened.

4.1.4 Technological Focus

ONLINE RETAIL PLATFORMS (FOODPANDA,  GRAB AND FOOD PASABUY)

A researcher named Bernie CachilasMagkilat conducted research about the quarantine lockdowns were

the times when brands explored new digital frontiers that made online engagements with their

consumers more meaningful and exciting. In the case of Potato Corner, the country’s well-loved

flavored potato fries, it took advantage of digital technology. Global Filipino brand Potato Corner

produced a quarantine anthology or ‘quaranthology’ during lockdown.

By taking advantage of digital platforms, the company enhanced the usability of their goods. Potato

Corner is available on online shopping platforms via Potato Corner store in FoodPanda, Grab.

Additionally, in Metro Manila there are facebook groups launched PasaBuy, a home delivery service

that takes the goods straight to the doorstep of consumers. These allow the company to service the

consumer wherever they may be, becoming a possible catalyst for Potato Corner's future growth.

SOURCE: https://www.google.com/amp/s/mb.com.ph/2021/12/18/how-potato-corners-sparked-fun-

during-the-pandemic/%3famp

RELEVANCE: The exponential growth of online retail platforms could benefit the sales of the business

products and services as well as the whole food sector. Additionally, it benefits consumers that they

perceive convenience in terms of buying the goods from Potato Corner, which gives them the choice of

a speedy payment method via GCash, online banking, etc. Also, it is a fun way for them to market and

advertise their goods to the general public. Hence, implementing fresh, creative ways and approaches

can greatly enhance and improve the consumers comfort, safety, and pleasure.

DEVELOP eSCIENCE MOBILE POS SYSTEM

 According to the researchers in E-science website, the Potato Corner has chosen Pocket Venta,

eScience mobile POS (Point of Sale) system to automate their store transactions and operations. Before

using a mobile POS (Point of Sales) system, Potato Corner did their field sales transactions manually.

However, problems arise as reports are often delayed due to the time and effort it takes to generate.

Some stocks from the stores are not replenished immediately and there is no way to oversee the

condition of each store.

Potato Corner decided to get the best mobile POS (Point of Sale) system to improve their store

operations. They chose Pocket Venta to be their mobile POS to oversee and monitor their sales,

inventory, deliveries, and tracking in real-time. The management can easily look into each stores’

transactions including the product movement. They can easily see what products are trending or have the

highest sales for each store without waiting for a daily report because field data is synchronized in real-

time.

SOURCE: https://www.electronicscience.com/newshome/newsdetails/update/4.pc.html

RELEVANCE: The purpose of these e-Science mobile devices is to react to the symbol and automate

store transaction and operation. A better customer experience can also be achieved through creating new

systems, flexible communication channels, and modern methods. The system's goal is to make it so that

company personnel may conveniently access data.

THE BRANDING PROCESS OF THE POTATO CORNER 

As for the team's branding strategy, the current brand that the team is using as the subject is already

present. Therefore, the plan is to use blogging and social media. The way that the team is planning to use
blogging to build trust is to make and take advantage of the different varieties of doing blogs. One way

is doing video blogs which showcases the quality of how the potato corner does service with the use of

technology.

Also, regarding the social media, the team is also planning to implement the strategy of presenting

discounts, or seasonal related events which give the consumers the access which is psychologically

making the customers think that it is not left alone regarding the events or promos that potato corner is

conducting. Both ways are the strategy that can further help the branding of potato corner and build trust

among consumers.

SOURCE: https://wiki.apc.edu.ph/index.php?title=Potato_Corner

RELEVANCE: Social Media has been a huge part of marketing in today's times and has been necessary

for digital marketing. The aim of these branding strategies is to respond to  the focus on the market

segment that could make the Potato Corner generate new customers by making advertisements. The

Potato Corner can be used so that it can reach customers effectively and it is also cost-efficient.

ENGAGEMENT AND EXPOSURE OF THE COMPANY TO THE MARKET

The team is planning on exposing Potato Corner on social media by letting the customers know that

Potato Corner has its Social Media accounts that can follow to get more updates and know about its

promotions. In this way, customers can also give feedback through social media, so the company would

now have a hard time analyzing feedback.

Potato Corner will interact with the customers every after order, so the relationship between the

company is built. In this way, Potato Corner's name will be exposed to others and will lead to

improvement of branding.
SOURCE: https://wiki.apc.edu.ph/index.php?title=Potato_Corner 

 RELEVANCE: Social media has become a vital component of modern marketing and is essential for

digital marketing. The social networking platforms listed below are some that Potato Corner can use for

internet promotion. (1) Facebook - Around 50 million small businesses use Facebook to connect with

their customers, and 4 million of those businesses pay Facebook for advertisements. In 2015, Facebook

significantly influenced consumers' online and offline purchase decisions by about 52 percent. (2)

Twitter: 336 million active accounts out of 1.3 billion total accounts, according to Business Insider.

Twitter can increase stock prices and customer engagement by increasing the prominence of its

advertisements. (3) Instagram - Top companies on Instagram, according to HootSuite, have a follower

engagement rate of 4.21%, which is 58 times higher than the average. Also making this digitalization for

the potato corner, waiting time would be lessened therefore improving customer satisfaction and

increasing customer return in the future Celebrities and influencers are also used by Potato Corner to

acquire customers.

Technology and Data

 Technology – Based on the Marketing Automation plan, sales and marketing should work together to

build and understand what kind of service people need. Customer satisfaction and credibility are

essential as it relies on social networks to find ratings, reviews, and advice. Potato corner should be

active online especially when customer service is relevant to prevent different issues to occur. Lastly,

channels of the project should use content marketing, organic search or search engine organization

(SEO), and affiliate marketing.

 Data – The data that is gathered from the vending machine will merely create a forecast report to see

what the in-demand products are and flavor a specific stall should order for the next delivery of supply.
It will also identify the type of customer the booth caters the most and more often. Therefore, each stall

will know which product should be ordered more and less from the supplier thus can also satisfy a lot of

customers since the product and flavor that individuals usually order will be available.

SOURCE: https://wiki.apc.edu.ph/index.php?title=Potato_Corner 

Relevance: Potato Corner uses technology and data to better understand the needs of its customers.

When ratings, reviews, and recommendations are found on social networks, customer happiness and

reliability are crucial. In order to avoid other problems, Potato Corner should remain active online,

especially when customer service is important. Customers are able to buy from Potato Corner and spread

the word about the business. Every vendor at the potato corner primarily caters to a certain market that

shares its characteristics in terms of behavior, demography, and hobbies. 

When to order large quantities of potatoes from vendors is something Potato Corner can determine. By

providing this information beforehand, potato corner is able to better plan their orders, which has an

impact on supply management and reduces the likelihood that unwanted potatoes will be returned as a

result of excessive orders. With the right analytics, which track daily sales and identify the times of day

when they occur most frequently, the estimates are achievable.

4.1.5 Environmental Focus

A GROWING COMPANY DESPITE IN THE MIDST OF A PANDEMIC OUTBREAK

In spite of the fact that Potato Corner reopened 140 locations in malls, Magsaysay was able to pivot by

encouraging some of their employees to start their own businesses in addition to their existing
franchisees.They are referred to as "home special forces," and despite the lockout, they are still able to

offer consumers Potato Corner goods. The first store for Potato Corner will open in Vancouver, Canada,

and Winnipeg, the capital of the Canadian state of Manitoba, according to Chief Executive Officer Jose

Magsaysay Jr. in an interview with Rappler. In spite of the pandemic, Potato Corner's Edmonton,

Alberta, location reported "record sales," according to Magsaysay. Magsaysay stated that practically all

of the nation's 1,400 Potato Corner locations were shut down as soon as the coronavirus-induced

quarantine was announced. He expressed relief that some of their international locations were still

operating, saying, "That just goes to show how crucial it is to diversify internationally. We still have

stores open in Thailand and Indonesia, which is great."

Source: https://www.rappler.com/business/potato-corner-grows-areas-low-covid-19-cases/

Relevance:   In the midst of the coronavirus outbreak, Potato Corner CEO Jose Magsaysay Jr. discusses

making "considered decisions" while adjusting to the "chaotic climate." The coronavirus pandemic has

had a particularly negative impact on the food business. But despite the challenges, some businesses,

such as the well-known snack brand Potato Corner, are battling to break from the norm and expand even

further internationally. Shakey's stated Potato Corner remained profitable despite sales declining by 50

to 60 percent from pre-pandemic levels in 2020 and 2021. Potato Corner has sales of P2 billion from

1,200 outlets. 75 percent are franchised.

 THE SUPPLY OF POTATOES IN THE PHILIPPINES

 Since the beginning of the year, supply chain problems in the Philippines have raised restaurant costs

and caused a dearth of well-liked goods like French fries and crisps. The Department of Agriculture

(DA) previously acknowledged that there is a global shortage of potatoes needed for processing, notably

those used for fast food fries. The nation's Department of Agriculture Undersecretary Kristine
Evangelista has reassured the populace that the supply of local potato varieties continues to be adequate

for the nation, saying in a recent radio interview: "As far as the Department of Agriculture is concerned,

our local potatoes, which unfortunately are not the variety used for french fries, are very very much

sufficient. We actually have a surplus.

The quantities of a few fast-food restaurant companies' select items that contain imported potatoes have

been reduced, according to the agricultural undersecretary. McDonald's and Jollibee, two well-known

restaurant chains, have notably decreased the amount of imported potato-based french fry served each

order.

Source:  https://www.potatoreview.com/news/potato-supply-shortage-in-philippines/

Relevance: Entrepreneurs have been using the word "pivoting" as they attempt to deal with any food

shortage implications. Nevertheless, according to Potato Corner's founder and former chairman Jose

Magsaysay Jr., pivoting is not always the answer for failing companies. An international restaurant

chain called Potato Corner is well-known for its flavored french fries. "Depending on your resources,

you pivot. Before making a change, examine yourself. Do I now have a role in this crisis? During a

webinar hosted by the Philippine Franchise Association on Thursday, he said, "If I'm not and I don't

have the money to pivot, I will just conserve, pause what I'm doing, and observe trends.

HOW DOES THE CLIMATE AFFECT THE PRODUCTION OF POTATOES INTO FRENCH

FRIES 

The majority of the potatoes grown in the Philippines is primarily found in high altitudes, especially in

Benguet and Mountain Province at below-freezing temperatures 21oC. The conditions here are
favorable for growth and creation of high-quality potato tubers. In Benguet, the potato is a significant

high-value crop. and a few locations in Mountain Province. Yet, at this time Filipino manufacturing

cannot keep up with demand because of a growing number of fast-food restaurants, inns, and local

makers of snacks made from potatoes. potatoes are typically a cool-season plant cultivated in regions

with an elevation range of The elevation ranges from 1000 to 8000 meters. Growing potatoes is strongly

impacted by soil, humidity, day duration, and temperature conditions.

Source:https://www.potatobusiness.com/trends-news/filipino-industry-implements-sustainable-

potato-program/

Relevance: The company's franchise, which was noted as one of the crucial success elements in the

sector, is its core strength. The main advantage of franchising is the support it provides in terms of

systems, R&D, training, and advertising, among other things. The franchisor has already tried and tested

different sustainable systems and found them to be effective. Yet, limitations and restrictions set by the

franchisor are another source of weakness. They include a limited selection of products, the difficulty to

find more affordable suppliers because the franchisor supplies all of them, and standardized pricing.

FREQUENT TYPHOONS IN THE PHILIPPINES

Extreme weather conditions can have a disastrous impact on agricultural output. Climate shocks may

jeopardize food security because rural households and businesses in developing nations depend heavily

on agriculture. depends on the typhoons' frequency, strength, and track for the level of damage. Heavy

rain and wind destroy crops on the day of impact, resulting in a partial or complete loss of harvest. The

agricultural field must then wait for many days for the flood to recede, which could severely harm crops.

As a result, typhoons contribute to food insecurity by reducing the quantity and quality of food produced

for sale and home consumption. Decreased mobility and restricted access to markets may cause further

income reductions and the inability to purchase additional food items.

 Source:https://www.sciencedirect.com/science/article/pii/S2212420921003538

 Relevance: Many catastrophes have occurred, and it is clear that individuals, particularly farmers, are

suffering. occurrences beyond our control, such  because typhoons cannot be avoided. Due to the

unexpected circumstances, the Cinco Corp. should think about resilience-oriented initiatives. Also, it is

advisable to make sure that the business offers assistance and support. In particular, in terms of the

goods and assistance they provide to agricultural employees  whenever natural disasters occur, farmers

and fishers should have backup revenue streams.Thus, collaborating with the Food and Agricultural

Organization is the best course of action. Ensuring the security of their products while still offering

enough and high-quality of goods and maintaining the company's focus.

  BILL SEEKING TO BAN FARMLAND CONVERSION

In order to guarantee sufficient food supply for the nation, a politician is urging a halt to the conversion

of agricultural areas into residential, commercial, industrial, and other non-agricultural purposes. The
Agricultural Land Conversion Prohibition Act, introduced by Sen. Francis Pangilinan, aims to stop the

conversion of farmlands into other uses. farmland, according to Pangilinan. This action attempts to

safeguard agricultural areas that the government has already irrigated. The nation's food security

depends on this as well. 

 Source:https://www.philstar.com/business/2019/08/26/1946425/bill-stopping-agri-land-

conversion-filed

 Relevance:  Farmlands have been transformed for decades into neighborhoods and shopping centers.

Manufacturing factories are abundant throughout the nation. This has emerged as a crucial concern in

relation to the nation's food safety. More frequently than not, prime agricultural fields are proposed in

Senate Bill 256, often known as the Agricultural Land Conversion Ban. Cinco Corp. would benefit from

the statute for the preservation. We need to give credit to farm workers and their suppliers. Moreover, it

would also be a benefit for Filipinos as they won't have to compete for potatoes and other necessities as

products to meet their demands. Hence, land conversion needs to stop as This proposed Law must be

approved as quickly as feasible for the good and welfare of all parties.

4.1.6 Legal Forces 

THE PROPER SANITATION OF THE PRODUCTS FOR THE SAFETY OF THE

CONSUMERS

  In line with the implementation of the Food Safety Act of 2013, the Department of Agriculture

and the Department of Health issued Joint Administrative Order 2015-007 specifying the responsibilities

of food safety regulatory agencies (FSRAs) and food business operators in the development and

enforcement of food safety standards and regulations in the country. The said order mandates the Food

and Drug Administration (FDA) to ensure food safety through the development and issuance of

authorizations that cover establishments and facilities engaged in the production and distribution of food

products. All food establishments are mandated to comply with the regulatory requirements related, but

not limited, to the regulations mentioned in Table 1. In addition to these regulatory requirements, food

establishments also have to secure permits and clearances from concerned regulatory agencies

depending on their classification.

Source:

https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidspn1804.pdf

https://pdfcoffee.com/potatocorner-pdf-free.html

Relevance:   As a kiosk type of business, Potato corner ensures its safety by implementing rules and

regulations to avoid the unsanitary way of preparing its product. The franchise will have tongs for

transferring the product inside the paper bag. This promotes sanitation as the customer will see that the
person will not be using their hands. In addition to that, Potato corner use plastic gloves that promote

sanitation to assure the customers of the clean food they will provide to the customers.

THE RULES AND LAWS TOWARDS EMPLOYMENT

  According to DOLE, the lowest wage that an employer should pay his workers is fixed

by the RTWPBs. 100% of the daily rate if unworked and 200% of the daily rate if worked. Not

less than one-twelfth (1/12) of the total basic pay earned in a calendar year. Workers are entitled

to a 5-day service incentive leave after one year of service, and every year thereafter.

Relevance:

Potato Corner has an overall rating of 3.7 out of 5, based on over 53 reviews left anonymously by

employees. 53% of employees would recommend working at Potato Corner to a friend and 44% have a

positive outlook for the business. This rating has improved by 7% over the last 12 months, according to

the reviews from Glassdoor, a free digital platform that gathers information and reviews from employees

or former employees about companies, salaries, and even job openings. Moreover the researchers

believed that if the Potato Corner, improves more its customer values, product quality, and operational

management it will prosper more.

Source:

https://nwpc.dole.gov.ph/wp-content/uploads/2018/06/Accommodation-and-Food-Services.pdf
https://www.glassdoor.com/Reviews/Potato-Corner-Reviews-E880674.htm

THE RULES, REGULATION AND LAW TOWARDS THE NON DISCRIMINATION LAW

  According to the Labor code of the Philippines, discrimination is prohibited. It shall be unlawful

for any employer to discriminate against any woman employee with respect to terms and conditions of

employment solely on account of her sex. The following are acts of discrimination: a. Payment of a

lesser compensation, including wage, salary, or another form of remuneration and fringe benefits, to

female employees as against a male employee, for work of equal value; and b. Favoring a male

employee over a female employee with respect to promotion, training opportunities, study, and

scholarship grants solely on account of their sex. Criminal liability for the willful commission of any

unlawful act as provided in this Article or any violation of the rules and regulations issued pursuant to

Section 2 hereof shall be penalized as provided in Articles 288 and 289 of this Code: Provided, That the

institution of any criminal action under this provision shall not bar the aggrieved employee from filing

an entirely separate and distinct action for money claims, which may include claims for damages and

other affirmative reliefs. The actions hereby authorized shall proceed independently of each other. (As

amended by Republic Act No. 6725, May 12, 1989)

Source:

https://blr.dole.gov.ph/2014/12/11/book-iii-conditions-of-employment/

https://potatocorner.com/apply-now/service-crew-member/
Relevance: Potato Corner’s qualifications are not strictly for college graduates only. They accept at

least high school graduate as long as they have the following qualities:

·       18 years old

·       At Least a high school graduate

·       Has a pleasing personality

·       Must be friendly to all types of people

·       Experience in related field is an advantage

·       Male or Female

4.2 Industry and Competitor Analysis

Competition among French Fries companies is very high in the marketplace. Notwithstanding

the tough competition, Cinco Corporation has outstandingly created a great image in the Fast food

and/or French Fries industry due to its market strategies and products. In fact, Cinco Corporation

is one of the best competitors in the market. Its best competitors are Friends Fries Corporation and

Potato Giant. Based on the market size shown below, Cinco Corporation is currently at the top of
the market with its average market share of ₱ 438,008,740 or 53.45% as of 2021. Passing the Potato

Giant with its average mark share of ₱ 201,875,445 or 24.63%. On the other hand at the bottom of

the market is Friends Fries Corporation with its average market share of ₱ 179,653,556 or 21.92%.

The Facilities, suppliers and numbers of Franchisee of the Cinco Corporation, tops down its

competitors, and for years it has been one of the most greatest advantages of the Cinco Corporation

to its competitors.

4.2.1 Market Size and/or growth rate / growth cycle

Table 9. Market Size for the year 2020

Year 2020 Potato Corner Friends Fries Potato Giant
Revenue ₱386,975,982 ₱158,721,972.65 ₱178,354,771.12
Total ₱137,387,377 ₱143,854,949.9 ₱161,648,801.6
Expenses
Net Profit ₱249,588,605 ₱14,867,022.78 ₱16,705,969.57

Table 10. Market Size for the year 2021

Year 2021 Potato Corner Friends Fries Potato Giant
Revenue ₱438,008,740 ₱179,653,566 ₱201,875,445
Total ₱71,583,623 ₱177,864,517.2 ₱181,772,533.5
Expenses
Net Profit ₱366,425,117 ₱17,890,038.79 ₱20,102,911.52

4.2.2 Market Share Analysis

Table 12. Market Share Analysis

Year Cinco Corp. Friends Fries Potato Giant Total

 Corp.

2021 ₱ 438,008,740 ₱ 179,653,556 ₱ 201,875,445 ₱ 819,537,741

Percentage 53.45% 21.92% 24.63% 100%

Revenues are earnings that a company receives over a specific period. As manifested in the table

above, the highest revenue in the Potato or French Fries Industry is Cinco Corporation, since they have

₱438,008,740, in which they got the highest percentage for the market share, equivalent to 83.69%. Next

on the line is Potato Giant, on which they have a total of ₱201,875,445 in revenue and getting a

percentage score of 24.63%. This positions the Friends Fries Corporation at the bottom of the table, with

the revenue of ₱179,653,556 and percentage score of 21.92%. Nonetheless, this implies that the Cinco

Corporation remains as the number 1 most selling product in the market, also that the competitors are

rushing to claim that title.

4.2.3 Marketing Mix

Product (or Service)

PRODUCT
Potato Corner began as a tiny food stand in the Philippines that sold flavored fries, a straightforward but

innovative new item. The first in the world to offer superior potato fries in a variety of flavors, including

Cheese, Barbecue, Sour Cream, and Chili Barbecue, is Potato Corner. Applying these tastes to the fries

using a special shaking technique. The product has six (6) different sizes for the consumers to choose

from. From smallest to largest they have regular, large, jumbo, mega, giga, and tera. Also, the company

uses eco-friendly packaging.

In some locations, they offer specialty fries products; hashbrowns, jojos which are thin crispy potatoes,

loopys also known as curly fries, tater tots, and waffle fries.
production potato giant:

Potato snacks are unquestionably a tasty treat when it comes to food carts and food stalls. There will

never be a shortage of potato-based foods for ravenous Filipino diners, from french fries to hash browns.

Despite the introduction of fresh and creative treats, the beloved potato continues to be a perennial

favorite.

By adding a distinctive twist to our standard street food, Potato Giant lives up to its moniker as more

than simply your everyday potato snack.

More daring foodies may wish to try their exclusive Chili Barbeque and White Cheddar, in addition to

the standard Barbeque, Sour Cream, or Cheese powder options. Potpots can also be accompanied by

cheesy bacon sauce for an even more enticing twist.

Don't worry if you're missing out on some good ol' fashioned french fries! These are available from

Potato Giant with the same powder flavorings and cheesy bacon sauce choices.

The menu was once limited to potpots, but it has subsequently been expanded to keep customers happy.

More delectable fare from Potato Giant includes:

Hash brown

Twister fries

Buffalo bites

Potato balls

Chicken nuggets
production:

Friends Fries is one of the well-known food cart businesses that Fruitas Holdings, Inc. created. With
incredible flavors like simple salt, onion, cheddar, sour cream, and BBQ, Friends Fries provides fried
crispy potatoes.

Fruitas Holdings, Inc. is a customer-focused business with extensive nationwide operations. We respond

quickly to customer complaints and maintain open lines of contact with both our staff and business
partners. These procedures ensure that our stores continue to be of the highest quality in all areas,

including operations, service training, and product standardization.

The Fry: As implied by the motto for Friends Fries, deep-frying or baking are both options. So while

baking on juliennes can be challenging, frying presents no issues.

Friends Fries' flavors include cheese, sour cream, and BBQ, which are common offenders. The beautiful

thing about them is that they are available in finer powders, which results in a coating that is cleaner and

more uniform.

Place (or distribution)

POTATO CORNER

When it comes to delivering its key ingredient, potatoes, Cinco Company (Potato Corner) uses a

wide variety of distribution points and franchisees. The sweet potatoes used in the company's flavored

fries originally originated from Belgium and the United States through imported products. The

company's headquarters are located in 869 Katarungan, Mandaluyong, 1550 Kalakhang Maynila, and its

corporate holdings are located at LRT Vito Cruz Station Taft Ave, Bgy 719, Zone 078 Malate Manila;

both locations produce fries using highly automated equipment. The plant strictly follows all operational

and drug performance standards to ensure the highest quality of output. Products may be found at

supermarkets, department shops, and even certain food parks around the country. Foodpanda, GrabFood,

and Pasabuy are just a few of the online retailers where customers may find and purchase Potato Corner

items. In addition, Cinco Inc. is well recognized as a leading exporter worldwide and a trustworthy

business partner for international clients. The Global Brands division has established franchisees in tens

of thousands of locations around the nation and beyond. Filipino kiosk chain Potato Corner (PC), owned

by the Cinco Corporation (Potato corner), plans to increase its presence both domestically and

internationally. There were 71 new Potato Corner locations established during the third quarter alone,

and one of them was a drive-thru with several brands. At the same time period, Potato Corner built 35

outlets in countries other than the Philippines. With successful debuts in Thailand, Singapore, China, and

Canada, further outposts are scheduled to launch throughout the current quarter. I'm proud of how far

Potato Corner has come. I look forward to future success and prosperity for the brand and for our

franchisees, and I give much credit to its founders, notably Jose Magsaysay, who developed this firm

from the bottom up and carried it to such a high level. This year marks the 30th anniversary of the Kiosk
brand. Potato Corner, which began as a single food cart in the Philippines in October 1992, has since

expanded to become one of the largest food kiosk chains in the country, with more than 1,100 locations

in the Philippines alone and more than 200 locations in 13 other countries and territories around the

world. Potato Corner, with the help of Gokongwei's Robinsons Bank, created the first franchisee loan

program to make it easier for small and medium-sized businesses to get the funding they need, quickly.

Both current and prospective franchisees may take advantage of the unique loan program's reasonable

interest rates, clean lending feature, and adaptable conditions. Franchisees, we often say, are Potato

Corner's "lifeblood." "They were able to weather the epidemic and are now experiencing the rewards of

the reopening," Gregorio added. He emphasized Cinco Corporation's dedication to the franchisees,

micro-businesses, and small and medium-sized companies (SMEs) that drive economic growth in the

nation.

Shaking now in over 1,100 branches in the Philippines!

POTATO GIANT

Potato Giant is a food kiosk that is known for serving some of the most creative and delicious handmade

potato snacks in the whole city. They provide snacks that are already prepared and may be eaten in bite

size. Mr. John Jeric Cantillon, a graduate of De La Salle University Manila with a Bachelor of Science

degree in Accountancy, was the owner and manager of the company at the time. In 2007, he opened his

first food stall in Manila, which was called Potato Giant and was situated along Fidel Reyes Street. Mr.

Cantillon put forth a lot of effort to develop the company by putting kiosks in a variety of places, with
the goal of eventually creating the greatest food network in the world, which would unite people from all

walks of life. After operating his initial stall for a period of two years, he relocated his business to the

Agno Food Court and subsequently opened three other food stalls there. In 2013, he also established

kiosks at the University of the Philippine Women, the University of the Ateneo de Manila, and the

University of St. La Salle in Manila. After one year, Mr. Cantillon established his company as a limited

liability corporation rather than continuing to operate it as a single proprietorship. Following the

implementation of the aforementioned shift in business structure, a greater number of company-owned

shops as well as franchised outlets were established in and around the University Belt.

FRIENDS FRIES

Fruitas Holdings, Inc. is responsible for the creation of a number of successful food cart businesses,

including Friends Fries. Friends Fries provides fried crispy potatoes with a variety of great flavors,

including simple salt, onion, cheddar, sour cream, and BBQ. Fruitas Holdings, Inc. is a business that

places a strong emphasis on both the satisfaction of its clients and the quality of the services it provides.

We respond quickly to any complaints raised by our customers, and we maintain open lines of contact

with both our business partners and our workers. These are the kinds of methods that make certain that

the quality of our shops is preserved in every way, including via the uniformity of their operations, their

products, and their service training. Since it was founded, FHI has grown to encompass a number of

different store concepts, some of which are BukoniFruitas, Juice Avenue, Black Pearl, TheMangoFarm,
Fruitas Ice Candy, Tea-rex, Friends Fries, Buko Loco, House of Desserts, De Original Jamaican Pattie

and Juice Bar, 7107 Halo Halo Islands, and others. All of them provide food and drinks that are made

using natural and fresh ingredients. Because of our consistent efforts in marketing and advertising, as

well as our consistently inventive retail and company growth, we can ensure that our items are at the

forefront of the minds of our target audience: customers.

Price

Potato Corner is a food franchise that originated in the Philippines and is now operating in other

countries across the world. In October 1992, the Philippines' Potato Corner brand debuted with the

opening of its first stand at the SM Megamall, which was operated by Cinco Corporation. Potato corner

adopted the pricing approach of rounding up to the nearest nine for all of their items. Customers are led

to believe, as a result of Potato corner's use of this pricing approach, that they are paying a lower price

for the french fries than the actual price that they are paying for it. In addition, the customer's perception

that they are receiving a good bargain for a huge amount of french fries is enhanced by the fact that the

price of the large portion is just 35 or 119 peso. In the menu for the potato corner, you will discover a
wide variety of dipping sauces for yourfrench fries, ranging from the traditional cheese to the most novel

salted egg. They are able to attract customers of all ages and preferences because they provide a wide

variety of tastes, both traditional and original. Potato corner is able to set itself apart from the standard

fare and cater to customers who have grown tired of the traditional flavor of french fries due, in large

part, to the fact that the majority of the french fries sold in stores are flavored and comes with different

variety of potatoes comes into innovative products.

WORLD BEST FLAVORED FRIES

REGULAR PHP 35 50g

LARGE PHP 60 100g

JUMBO PHP 90 150g

MEGA PHP 119 200g

GIGA PHP 189 350g

TERA PHP 220 400g

SPECIALITY FRIES
 CRISCUT PHP 90 150g

TATER TOTS PHP 90 150g

LOOPTS PHP 90 150g

JOJO CHIPS PHP 60 100g

HASH BROWN PHP 35 50g

TERA MIX PHP 285 400g

OTHER FRIED SNACKS

(Super Chicken Pop)

SOLO PHP 99 150g

SNACK PHP109 160g

MEAL PHP159 300g

BEVERAGES

FLAVORED TEA PHP 30 355ml

SODA IN CAN / COKE 355ml

SODA IN CAN / SPRITE PHP 35
SODA IN CAN / ROYAL

BOTTLED WATER PHP 25 355ml

POTATO GIANT

The potato giant is using a pricing strategy based on psychology. There are a variety of additional

approaches you may take if you believe that including a price of PHP.99 in the list price of the products

sold in your shop would not be beneficial to the reputation of your company. The many approaches to

pricing based on psychological factors. A pricing approach known as psychological pricing makes use of

a product's price in order to affect a customer's spending patterns or shopping routines in order to

generate more or higher-value sales.

The objective is to fulfill the psychological demand that a consumer has for anything, whether that

desire is to spend less money, purchase an item of the greatest possible quality, or get a "good bargain."

The idea behind psychological pricing is to take advantage of the reality that customers are seldom

aware of what something ought to cost. The majority of the time, we are able to establish whether or not

something is a good bargain by purchasing it at a price that is lower than what is typically posted for it

or by comparing it to other things that fall into the same category as it does.

SOLO PHP39 20g

GRANDE PHP59 49g

GIANT PHP89 69g

SUPER GIANT PHP149 95g

SOLO (FRENCH FRIES) PHP39 20g

GRANDE (FRENCH FRIES) PHP59 49g

GIANT (FRENCH FRIES) PHP89 69g

SUPER GIANT (FRENCH FRIES) PHP149 105g

CHEESY BACON PHP79 50g

HASH BROWN PHP29 18g

FRIENDS FRIES
Fruitas Holdings Inc (Friends Fries)., an operator of food and beverage kiosks as well as community

stores, said that its net income reached P43 million in the nine months leading up to September,

reversing the P16 million loss it had during the same time period in the previous year. In the last nine

months, the company's sales was P1.3 billion, representing a growth of 62.7 percent in comparison to

the same period in the previous year. Just for the third quarter, Fruitas' sales increased to P469 million,

representing an increase of 89 percent from P248 million in the same period last year. The firm said that

the efficient use of its methods as it recovers from the pandemic is shown by the increasing momentum

it has seen in sales. To handle the price increases, we have implemented a number of strategies,

including smart price increases, growth of our supplier base, and improvements in our raw material

procurement. As the economy makes more progress in its recovery from the epidemic, we are witnessing

a considerable improvement in our outcomes. Even though we are now confronted with the obstacle of

rising inflation, we are dedicated to maintaining our tradition of providing value to our shareholders.

According to Lester Yu, President and Chief Executive Officer of Fruitas, "We also continue to seek new

product offerings and to extend our distribution channels in order to make them readily accessible to our

loyal clients." Fruitas has over 750 locations as of the end of October 2022, having added approximately

30 outlets in the most recent three months. The firm is in the process of rapidly expanding, and over the

following several months, around fifty new locations are going to be created.

SOLO PHP 25 25g

BFF PHP 45 40g

 TRIO PHP 75 50g

GROUP PHP 75 65g

TEAM PHP 115 105g

FRIENDSHIP PHP 160 125g

HASH PHP 10 6g

PROMOTION

POTATO CORNER

The company needs to increase their brand awareness with the the help of social media, by using social

media marketing as a strategy this can help the company to be visible to their target market. The

marketing team should focus on making relevant contents about their product in order for them to reach

their target audience, and give them more exposures to different social media platforms.
Since Facebook is the most popular social media platform globally and mainly used by ages ranging

from 13-60 years old which is the company’s target market.

The company chooses Facebook as their platform to promote, with the use of Facebook Pages they can

utilize this by posting advertisements and relevant content. Hashtags are also a great way to attract the

people who are interested in the company’s product.

Tiktok is famous in producing short videos containing different kinds of food, this can also help support

the company’s advertising. By making skits of the product this can help reach the target audience and

also those who are not familiar with the brand by taking advantage of the algorithm of Tiktok.

- here are sample promotions of potato giant and friends fries. as advertisements they also both

use facebook as their social media platform

POTATO GIANT
FRIENDS FRIES
Opportunities:

1. POTATO CORNER NOW AT EVERY CORNER GLOBALLY WITH 1,300 AROUND

THE WORLD

In the Philippines, the minimum wage increased. Increased labor costs (higher wages and
benefits) benefit employees, but they also have a negative impact on business earnings, the
number of open positions, and the average number of hours each employee works. On the other
hand, happier workers are less likely to quit their jobs, therefore better earnings frequently lead
to happier workers.

2. MAN OF THE HOUR: JOSE MAGSAYSAY

The Food Safety underlines the need of making sure that food enterprises do not own or will
remove any items that could be dangerous to the health and safety of the general public. It seeks
to safeguard consumer preferences while upholding the level of quality they anticipate.

The Potato Corner management organization is also thinking of offering cuisine that can be
delivered. As French fries are sensitive, manufacturers are creating other products to replace
them. Also, they want to work with Grab and, in some little way, help the Philippine economy
recover.

3. POTATO CORNER RAMPS UP EXPANSION

By creating new businesses and jobs, entrepreneurs make a huge contribution to our economy.
They are essential to a healthy society because they stimulate economic growth and innovation.
The fact that they create new business opportunities is one of the most important. Because it
enhances competition, encourages innovation, and eventually results in higher productivity and
living standards, this is essential for economic growth. A business owner contributes to society
by generating employment and financial opportunities. Also, they help the economy grow by
bringing in new products and services that can raise everyone's standard of living. Also,
businesspeople usually address problems in an original and creative way, which could lead to the
development of brand-new solutions to enduring social problems. And last, entrepreneurs are
crucial to promoting success and prosperity for everyone.

4. HOW THIS FILIPINO ENTREPRENEUR CHANGED THE FRENCH FRY INDUSTRY

IN HIS COUNTRY
Small businesses contribute to the economy by developing cutting-edge ideas and goods. Also,
because they are locally based, they provide employment opportunities with a preference for
locals, leading to the establishment of new jobs in a nearby town or city. Small businesses are
 also more flexible and may be started by almost anyone with determination and a creative
concept, which increases their diversity in terms of form, function, culture, and potential.

5. FILIPINO ENTREPRENEURS WAYS OF REACHING ITS CONSUMERS

Understanding its clients and modern trends is crucial for Cinco Company, especially as the
digital world changes. Along with adapting to the new generation, it also increases the variety of
services that the company may provide its clients. Filipinos love visiting Potato Corner
establishments, thus Cinco Company must continue selling their goods to them, but they should
also broaden their options by selling their goods online.

6. THE CHARACTER OF CONSUMERS IN THE PHILIPPINES

It is crucial for Potato Corner  to comprehend its clients and current trends, especially when it
comes to adapting in the digital age, as this article shows how Filipino consumers behave in the
market and how entrepreneurs reach out to their consumers. Along with adapting to the new
generation, it also increases the variety of services that the company may provide its clients.
Filipinos love visiting Potato Corner establishments, thus Potato Corner must continue selling
their goods to them, but they should also broaden their options by selling their goods online.

7. HOW DOES MARKETING WORKS DURING THE COVID-19 PANDEMIC?

Similar tactics were used by the Rituals cosmetics chain, which saw a 300% rise in online sales.
Also, bicycles are used to deliver goods that local customers have ordered. Some retailers are
now providing digital sales guidance, for instance via FaceTime or WhatsApp. Live streams of
theatrical productions and concerts are also available.

Despite the fact that research has proven that advertising favors national companies during times
of contraction.

8. ONLINE RETAIL PLATFORMS (FOODPANDA, GRAB AND FOOD PASABUY)

The sales of corporate goods and services as well as the broader food industry may gain from the
online retail space's explosive growth. Customers also profit from the convenience they feel
while purchasing products from Potato Corner, which offers them the option of a quick payment
method via GCash, internet banking, etc. They may promote and advertise their products to the
general public in an entertaining way using it as well. So, employing novel, inventive methods
and ideas can significantly increase the consumers' comfort, safety, and enjoyment.

Threats:
 1. POTATO CORNER DENIES TRAIN AFFECTED PRICES
-The Tax Reform for Acceleration and Inclusion (TRAIN) Law, also known as Republic Act No. 10963,
is the first package of the Comprehensive Tax Reform Program (CTRP), which is being implemented by
the Duterte administration to remedy flaws in the country's taxation structure. The implementation of the
TRAIN legislation led to an increase in the overall rate of inflation for essential goods. When the excise
duty on oil goods is raised, practically every product on the market experiences a price increase as a
result. Inflation has repercussions for a number of other groups in addition to consumers. Additionally
impacted are those classified as small and medium-sized firms. Potato Corner has taken precautions to
ensure that its clients will not be adversely impacted by this situation, despite the fact that this problem
affects both the business owners and their customers.
2. PHILIPPINES WAGES: MINIMUM AND AVERAGE

-In 2022, there was a rise in the minimum wage in the Philippines. Workers gain from increased labor
expenses, which include higher salary rates and employee perks, but greater labor costs also diminish
corporate earnings, the number of available positions, and the number of hours worked by each
individual. On the other side, higher salaries almost always lead to happier workers, and research shows
that happy workers are less likely to leave their positions.

3. FOOD SAFETY STANDARDS & REGULATIONS

-The Food Safety Act highlights the significance of checking that food-related businesses do not
maintain, and will get rid of, any item that might be harmful to the public's health and safety. Its aim is
to protect consumers' tastes while maintaining the high quality they have grown to expect.
in the other hand food and safety might be a threat to a company because franchisees are just in a stall
and it was not inside of an establishment so it will be more costly to provide so much equiptment and to
convert stall to establishment.

4. SUPPLY OF CHIPPING POTATO USED FOR FRIES TIGHTENS GLOBALLY: DA

-There is a scarcity of processed potatoes all throughout the globe, particularly the kinds that are used
for french fries at fast food restaurants. Because of the frost and the chilly temperature, potatoes are
creating more sugar than they should be, therefore their growth is slower than it should be. As a
consequence of this, only half of a farmer's potatoes are marketable, and it is expected that this situation
will last until the middle of 2023. This shortfall may lead to a lack of essential items, price inflation,
industrial closures, unloaded shipping containers, and negative repercussions on the overall economic
well-being of a country. This will be a threat to the company because it will lessen the supply of potatoes
which is the company's main product.
 5. TATER TRAGEDY: MCDONALD’S PHILIPPINES HALTS SALES OF LARGE
FRIES DUE TO POTATO SHORTAGE

-When there is an excessive demand, also known as when the amount demanded is more than the
quantity available, the market experiences a shortage. In this scenario, customers won't be able to buy as
much of a product as they would want to have available to them.The consumers will hecitate to buy
because the potatoes the company's main engredient may be in shortage and it wont be able to assure the
customers that it was still fresh.

6. THE CHANGES OF FILIPINO CONSUMERS’ BUYING BEHAVIOR AMID THE

PANDEMIC

-This article provides an analysis of how quickly consumers' buying behavior may be altered as a direct
consequence of the commencement of the pandemic that has happened up to this moment. There is a
significant possibility that Cinco Corporation, which is a well-known brand in the Philippines and
operates a fast-food take-out stall there, would be able to capitalize on this market opportunity. The
business is able to continuously improve its sales, raise the amount of brand marketing it does, and
increase the amount of money it brings in by offering French fries at significantly reduced prices while
maintaining a healthier, more enjoyable, high-quality product with a flavor that is reminiscent of days
gone by. In addition, it will be able to obtain a competitive edge over its rivals as a result of the fact that
they provide a selection of French Fries that may or may not be helpful to the customers. They are
obligated to assure the quality of their goods and provide consumers the peace of mind that everything
they sell is in compliance with the preventative health measures that are governed by the National Food
Authority.

7. FREQUENT TYPHOONS IN THE PHILIPPINES

-Numerous calamities have taken place, and it is quite obvious that people, especially farmers, are
enduring great hardship. incidents that are beyond of our control, such as the fact that typhoons can
never be averted. As a result of the unanticipated events, Cinco Corporation need to give some thought
to activities that are focused on resilience. In addition to this, it is important to make certain that the
company provides aid and support to its customers. Farmers and fishermen in particular should have
 other income streams available to them in the event that natural catastrophes strike, so that they can
continue to provide their workers with the necessary supplies and support. Working together with the
Food and Agriculture Organization is thus the most effective line of action to take. Keeping the
company's focus while also meeting customer demand for a sufficient quantity of high-quality items
while simultaneously ensuring the safety of their products.

Competitive Profile Matrix (CPM)

Cinco Friends Fries
  Potato Giant
Corporation Corporation
Scor
Critical Success Factors Weight Rating Rating Score Rating Score
e
Advertising 0.15 4 0.60 1 0.15 2 0.30
Market Penetration 0.15 3 0.45 2 0.30 2 0.30
Customer Service 0.10 2 0.20 2 0.20 1 0.10
Store Locations 0.02 4 0.08 3 0.06 3 0.06
R&D 0.05 2 0.10 2 0.10 2 0.10
Employee Dedication 0.03 2 0.06 3 0.09 2 0.06
Financial Profit 0.15 4 0.60 2 0.30 3 0.45
Customer Loyalty 0.02 4 0.08 2 0.04 2 0.04
Market Share 0.03 4 0.12 2 0.06 3 0.09
Product Quality 0.15 3 0.45 3 0.45 3 0.45
Top Management 0.10 3 0.30 2 0.20 2 0.20
Price Competitiveness 0.05 2 0.10 2 0.10 3 0.15
Totals 1.00   3.14   2.05   2.30
4.1.1 Critical Success Factors

1= “major weaknesses”

2 = “minor weaknesses”

3 = “minor strength”

4 = “major strength”

Advertising

Rating given: CINCO CORPORATION, Inc. – 4, FRIENDS FRIES– 1, POTATO GIANT –

 2

Some of these three companies has undoubtedly captured the attention of the market throughout

advertisement all across the country in these past few years. Advertising is a typical method of

disseminating information and increasing awareness about the products and services provided by these

huge brand businesses. As a result, Some from these companies have developed a variety of

commercials to ignite and keep the flame of their products in the eyes of customers.

They promote their products and/or services through conventional media such as billboards, posters,

newspapers, radio, and television, as well as more modern methods such as digital marketing through

various social media sites and acquiring celebrities to endorse for insightful marketing campaigns. As a

result, this is a significant strength of the corporations, allowing them to maintain their public image.

Market Penetration

Rating given: CINCO CORPORATION, Inc. – 3, FRIENDS FRIES– 2, POTATO GIANT – 2

These food brand French Fries companies are all highly demanded by the consumers due to

the creative product line catering target market’s broad range of demands, and tastes, as well as

considering its pricing strategy that will satisfy the majority of the Filipino people. The Cinco

Corporation well is known to be the leading provider of the highest and tastiest French Fries, not only

in the Philippines but also in some parts of the globe. In the sector of processed potatoes, these three

are the top largest brand companies in the country. Cinco Corporation is said to be the largest

company for the branded processed French Fries and/or Potatoes, with a market share of 53.45% in

2021. Correspondingly, The Potato Giant and Friends Fries Corporation as the second and third

largest players across the Philippines. These companies offer an average market penetration and

distribution, wherein there is domestic distribution network to reach franchises in local markets,
malls, train stations, And for exports overseas Cinco Corporation has also been continuously reaching

different parts of the world expanding its Potato Corner’s French fries reach.

CUSTOMER SERVICE

Rating given: Cinco Corporation – 2, Friends Fries Corporation – 2, Potato Giant – 1

These food brand companies do not only focus on offering food products to their consumers,

but they somehow also give high significance to the food service. However, according to some

customer feed backs towards their personal experiences some to these companies has a slow

production of the finished product which will be serve towards the counter to the customers.

Nonetheless these companies values consumers through customer services and addressing their

concerns right away.

Store Location

Rating given: Cinco Corporation – 4, Friends Fries Corporation – 3, Potato Giant – 3

The product line offered by these French Fries/Potato Brand Companies, focuses more on

potato or French Fries products, and is very much accessible to all Filipino people. These Companies

Store location is undoubtedly easy to find and accessible even in your local grocery stores, malls,

supermarkets, wet and dry markets, trains stations nationwide. Giving a wide scope of numerous

consumers it can reach.

Research and Development

Rating given: Cinco Corporation – 2, Friends Fries Corporation – 2, Potato Giant – 2

Cinco Corporation possesses a strong focus on product innovation, thus taking pride in the
research and development behind it. Accordingly, they have successfully built a portfolio of strong

fast food brands, all through the help of modern research and development techniques, and modern

technologies to make the the product more accessible to the market with minimum cost range, which

has produced winning French Fries in the eyes of consumers worldwide. In addition, Cinco

Corporation, has produced and released to the market and also released to the public new flavors of

French Fries, that satisfy consumers demand on French Fries. On the other hand, Friends Fries

Corporation and Potato Giant have also given importance on the research and development to obtain

continuous growth of its products, but giving the Cinco Corporation the most innovated, quality

dominant product for its consumers.

Employee Dedication

Rating given: Cinco Corporation – 2, Friends Fries Corporation – 3, Potato Giant – 2

All three of these well-known food brand French Fries companies value not only the

perspectives of their customers, but also the opinions of all of their personnel. They see their staff as

one of the most valuable assets and ingredients in their company's formula for long-term success. As

a result, they place a high value on giving back to and thanking all of their workers' hard work and

countless efforts in assisting the company to fulfill its core objective and vision. Because companies

employ thousands of people, they make certain to provide perks in order to reward and recognize the

services done by their employees.

Financial Profit
Rating given: Cinco Corporation – 4, Friends Fries Corporation – 3, Potato Giant – 2

Profit is essential in all sorts of businesses. The Cinco Company has grown to prominence

among all three (3) of the aforementioned largest food Potato or French Fries firms. Cinco

Corporation's long-term success has been both local and international. Cinco Company rose to

prominence by providing a diverse range of French Fries product line options to every generation,

including toddlers, teens, adults, and even the elderly, through which the company's services were

obtained and enjoyed at every store visit. Meanwhile, Friends Fries Corporation and Potato Giant's

operational income had increased during the course of their operations, solidifying their position as

one of the major branded food corporations that also sells branded items locally.

Customer Loyalty

Rating given: Cinco Corporation – 4, Friends Fries Corporation – 2, Potato Giant – 2

Fast food is the most basic demand and it includes an excellent quality French fries or potato

meals. As a result, according to Friends Fries Corporation, and Potato Giant are minor weaknesses in

terms of consumer loyalty in acquiring quick meals or French Fries offered products. In general, at

this time of pandemic, it does not matter to the customer what they will obtain as long as the acquired

items  whomever manufactured the commodity  can be preserved for a long length of time and feed

each member of the family. On the other hand The Cinco Corporation or Potato Corner resulted as its

major strength on the reason that potato corner can be accessible on different kinds of online

platforms or e-commerce such as food panda, lalamove, Grab Foods, toktok and etc. This innovation

allows consumers to have easy access on Potato Corner products at the comfort of their homes.
Market Share

Rating given: Cinco Corporation – 4, Friends Fries Corporation – 2, Potato Giant – 3

Market share appears to be more valuable with the profit made honestly during the business's

period ending, as far as the organization complies with the rules in passing their financial reports and

may be traced in the Securities and Exchange Commissions (SEC) and Philippine Stock Exchange

(PSE). Specifically, Cinco Corporation which are recognized as the largest branded company that

have become international franchisor and shows public transparency of annual reports that may have

a chance to attract large and small franchisee to invest in their company. However, Cinco

Corporation is the most profitable of the three companies that have been formed, and it may have a

substantial advantage in attracting potential investors. When the proponents try looking up Potato

Giant and Friends Fries annual reports in the Philippine Stock Exchange. Indeed, nothing comes up.

However Through Security Exchange Commissions (SEC) it can be found, however it will take a

long amount of time when it is requested online, however if requested onsite it can be processed

speedily, on the downside it will take whole day.

Product Quality

Rating given: Cinco Corporation – 3, Friends Fries Corporation – 3, Potato Giant – 3

As a part of the wide variety of product line provided by Friends Fries Corporation, with tasty

delectable and crunchy French Fries Products, each customer gets a high and/or good quality French

Fries. Meanwhile, Cinco Corporation offers not only a high-quality French Fries that can be stored in

the fridge and last for days, but can also be tasty when heated properly, or re-fried, It maintains
almost the same quality or even more better when it is freshly served in the counter. On which

satisfies customers demand for the Potato Corner product. It is one of the major advantages that

Cinco Corporation has over its counterparts.

Top Management

Rating given: Cinco Corporation – 3, Friends Fries Corporation – 2, Potato Giant – 2

The Cinco Corporation’s top management are given three (3) which is the minor strength due

to the reason that it might be known to other countries but demand and advertisement on every

country is quite shuffled and somehow unprecedented, or out of the direction on its flagship company

here in the Philippines. However the Cinco Corporation flexes its muscle to the global market that the

quality of their innovation, employees, executives and management is competitive. On the other

hand, the Friends Fries Corporation and Potato Giant which are given the rating of two (2) which is

minor weaknesses. These two companies are competitive only here in the Philippine market and has

not yet expanded its operation globally. Even so, these two remains as the biggest competitor of the

Cinco Corporation.

Price Competitiveness

Rating given: Cinco Corporation – 2, Friends Fries Corporation – 2, Potato Giant – 3

When it comes to convincing potential customers to buy your items, price counts a lot more

these days since it helps them to save money. Of the three companies, Potato Giant achieves price

competitiveness. Cinco Company and Friends Fries products were still reasonably priced, but Potato

Giant rates are different and   are much more appealing to consumers on a restricted budget, and it
also saves a lot more money deliberately. Likewise, the pricing of Cinco Company and Friends Fries

items is nearly identical.

4.3 PORTER'S FIVE FORCES

Threats of
New
Entrants:

Averarage

Supplier Competitive Bargaining

Power: Rivalry: Power of

Consumer:
Average Average
Average

Threats of

Substitute:

Average
 Figure 4. Porter’s Five Forces

4.4 SUMMARY AND CONCLUSION (EFE)

THREATS OF NEW ENTRANTS - Average

Cinco Corporation must adopt a risky strategy. The business enjoys a considerable competitive edge in

the industry. It must make use of its own advantages to establish a market penetration and development
strategy. This can entail developing new products, integrating with other businesses, acquiring

competitors' businesses, and other operations. And also, their well-known brand, excellent customer

service, and special seasonal promotions, Potato Corner is more profitable. The potato corner is aware of

all of their rivals sicj as the Potato Giant and Friends Fries Corporation.

SUPPLIER POWER - Average

For a variety of factors, Cinco Corporation's supplier power is rated maintains supplies throughout the

year. A diversified supply base reduces the bargaining strength of suppliers. Many manufacturers

produce Cinco Corporation goods. As a result, Cinco Corporation has an edge by minimizing the effect

of its suppliers.

BARGAINING POWER OF CONSUMER – Average

Customers in the potato corner had limited options. Because they have less negotiating power,

consumers nevertheless decide to buy a potato corner store even though the goods may be slightly more

expensive. End-user customers have less negotiating leverage because of Potato Corner's well-known

brand. Since there are no direct rivals for Potato Corner, the only competitors are from fast food chains,

specifically fries.

THREATS OF SUBSTITUTE - Average

Fast food chains could serve as a replacement for potato corner, even if there are alternatives, such as

products from lesser-known companies, people continue to choose to buy things from Potato corner
stores because the company's reputation and dedication to quality allowed it to meet customer

expectations. As a result, we might infer that Cinco Company continues to be challenging for other

competitors to replace in the wants of consumers.

COMPETITIVE RIVALRY – Average

In order to defend its market share in the food sector against recently established companies that may

soon emerge as Potato corner key rivals. The Business needs to exert more effort. And also, demand for

products has increased since the past. The business needs to exert more effort in innovating their flavors

and expanding menus.