Beruflich Dokumente
Kultur Dokumente
Metro Ferry, a river transport system established to serve as an alternative mode of transport in Metro
Manila with the objective of decongesting the city’s status of land traffic, is experiencing continuous
losses and faces the possibility of ceasing its operation if its operator, the Magsaysay Lines, Inc. (MLI),
could not avail a solution to turnaround the current situation of low passenger patronage resulting to
continuous losses. Should MLI shutdown its operation of Metro Ferry or continue looking for ways to
successfully market its service and increase passenger patronage?
II. OBJECTIVES
General Objective
Specific Objectives:
To examine the internal and external factors surrounding and affecting the management
and financial performance of Metro Ferry.
To exploit the weaknesses and threats of Metro Ferry and convert such into
opportunities using the strengths of the company.
The analysis of the political, economic, social, technological, environmental and legal considerations
affecting the operation of MLI are grouped into internal and external factors which are further classified
as either strength, weakness, opportunity or threat (SWOT) in the table below.
1
Pasig River and
remove 19
sunken barges
especially in
Buting station
which is critical
link to Taguig
due to presence
of a jeepney
terminal
To help in
securing access
to facilities by
coordinating
with the LGUs in
Metro Manila
2
customers. Large
market that can
be exploited
Some of the Metro Metro
crew members Manila has a Manilans
lacked proper high rate of believe that sea
training and population transfer is not
SOCIAL discipline. and has safe or not safe
Poor inadequate as land
information means of transportation
dissemination mass and therefore
transportatio prefer the
n adding to traditional
the transport
congestion. system.
Limited
capacity to
accommodate
students for the
educational tour
as a result of
their
retrenchment
program.
3
Social media,
which
nowadays
serves as
inexpensive
means of
marketing and
spreading
information, is
not yet
available that
time.
Garbage and
debris thrown
and submerged
in Pasig pose
as danger in
the operation
of MLI.
Lack of a
strategic
program for
river
rehabilitation
4
travel rules and
insurance are regulation
provided exacerbating
the situation
of land traffic
From the consideration presented above, we can actually figure out that in the Boston Consulting Group
(BCG) Matrix, the Metro Ferry or the PRTCI operation in Pasig River is actually a Question Mark
because they, at that time, hold a low market share that consume large amount or resources and incurs
losses but has the potential to gain bigger market share and become a star. However, this requires
intensive effort and close consideration. Thus, we present the following as the possible courses of action.
Continue operating and intensify After penetrating its current Cease the operating in the
its marketing efforts in market, it can expand into new Pasig River and focus its
communicating the value Metro markets like realizing the island- efforts in educational tour
Ferry could offer to Metro hopping tour in Cebu in and its operation in Cebu.
Manilans. Find ways to present partnership with Tambuli Resort
good publicity and and bring that same idea in Manila
by searching for hotels that can be
a business partner in offering
island hopping tour in the Manila-
Laguna route (or other possible
routes).
V. RECOMMENDATION
5
The MLI has yet to exploit all the possibilities and in its current products and market, thus, the
researchers recommend that MLI, specifically its PRTCI business unit, should exert its effort towards
identifying opportunities for growth within its current business.
6
MLI has a value to offer to its customer but failed to communicate this well to a larger number of people,
thus, we believe that if they can properly execute the above strategies, they have the potential of turning
around their financial performance while at the same time, becoming a socially responsible company. The
greatest strengths of MLI should also be highlighted in its information drive. People should know that
these ferries are operated by world renowned shipping company. In any case that they will be
experiencing increase in sales due to these programs, they must then repair their structural issues
especially those which are noticeable to become more an attractive means of transport. Also, once they
are already having bigger market share in traffic, they will surely get the attention of government and
thereby, as an important tool in their goal of alleviating traffic issues, they can please the government to
enter into written contract with them which will impose the fulfilment of its promise especially with
regards to construction of terminal stations and dredging the Pasig River leveraging its promise to
continue in its effort in alleviating traffic condition through river transport service. They can also ask the
government then for subsidy or provision of new and more efficient ferry boats.