Alleco (http://bulatlat.com/main/2011/04/18/the-economics-of-ukay-ukay/). In a study by Rina Locsin, where she zoomed into the culture of ukay-ukay in Baguio, she states that it is difficult to determine the exact date of when the ukay-ukay started in the country. External influences, such as monetary policies, market changes, and access to suppliers, are categories to pull from to create a list of opportunities and weaknesses. A company should begin by understanding what information it has access to, what data limitations it faces, and how reliable its external data sources are. A SWOT analysis is used to strategically identify areas of improvement or competitive advantages for a company. The respondents chosen are those who have an ukay-ukay business and those who buy ukay-ukay clothing. You give good ideas. For example, if a country cutstariffs, a car manufacturer canexport its cars into a new market, increasing sales and market share. Research questions are explored through in-depth interviews with local entrepreneurs. What once started as a charitable act has indeed become a multimillion-peso trade. In 2002, the Macapagal-Arroyo banned the entry and sale of ukay-ukay items in the market. Skye Schooley is a human resources writer at business.com and Business News Daily, where she has researched and written more than 300 articles on HR-focused topics including human resources operations, management leadership, and HR technology. A SWOT analysis pulls information internal sources (strengths of weaknesses of the specific company) as well as external forces that may have uncontrollable impacts to decisions (opportunities and threats). Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. These external factors may create opportunities or threaten existing operations. It is impossible to accurately map out a small businesss future without first evaluating it from all angles, which includes an exhaustive look at all internal and external resources and threats, Bonnie Taylor, chief marketing officer at CCS Innovations, told Business News Daily. Those who sold ukay-ukay decried that many will lose their jobs and main sources of income those who man the stores, who sort out the clothes, those who are into the transport of goods. This cookie is set by GDPR Cookie Consent plugin. Start An Ukay Ukay Store Business Summary Startup Costs Pros & Cons Marketing Ideas Wondering how much it costs to start an ukay ukay store business? ", Panmore. It can require a lot of time, energy and trial/error. Ukay-ukay is so popular since it is a cost-effective option for shopping on a budget. Just like any other business, the success of an ukay-ukay business is mostly determined by the owners efforts and traits. Before you start, its better to learn the pros and cons of the business. 1. Be your own boss Class A contains high quality stocks. In order to buy pizzas, he is looking for a job that pays him a wage of $wper hour forLhours of labor. and was subsequently adapted in other topographic points. Although Republic Act number 4653 (ratified July 1966) has been enacted, there is no clear implementation of this law (e.g., confiscation and/or burning of such imported commodities). This study, in which catering business has been investigated develops a new assessment model to evaluate key success factors for micro-enterprise creation and operation. By clicking Check Writers Offers, you agree to our terms of service and privacy policy. Resulting strategy: Take mediation courses to eliminate weaknesses and launch Scholefield Mediation, which uses name recognition with the law firm, and highlights that the firms construction and construction law experience makes it different. If you want a steady stream of income with a fast turnover, ukay-ukay business is perfect for you. But many people would love it if the government will abolish the law. The company is undertaking a mixed development project called Ukay Perdana which is located at 7th mile off Jalan It aims to describe the nature of the situation as it exists at the time of the study. WebUkay-ukay is most normally used to mention to the industry that caters to the sale of secondhand imported garments. (Weakness) What are our lowest-performing product lines? The cookie is used to store the user consent for the cookies in the category "Other. The fashion retail industry heavily relies on an unsustainable business model of maximizing production, fueling the throwaway culture, regardless of environmental costs. This compensation may impact how and where listings appear. Since he can only work a maximum of 15 hours a day (Mark, In Cambridge, there are individuals from three different citizenships: Ethiopians, Brazilians, and Americans. The SWOT analysis is a simple but comprehensive strategy for identifying not only the weaknesses and threats of an action plan, but also the strengths and opportunities it makes possible. Thank you so much for accepting my assignment the night before it was due. Threats refer to factors that have the potential to harm an organization. Warner Media Company. How much is the weekly income of an ukay-ukay business? To perform the SWOT analysis, create a large box divided into four squares. You can get a custom paper by one of our expert writers. Marion Calvin H. Mijares, De La Salle University Integrated School (Manila) Reports state that ukay businesses generate 1.2 million daily. SWOT does not account for the differences in weight. Only few, Filipinos know that ukay-ukay is illegal. Besides evaluating the key success factors, the proposed model also suggests 10 success factors that represent a strong contribution to the literature by providing a valuable sub-pack for creating and operating a micro-enterprise. A case study of Central Chidlom and Siam Paragon. Accessibility Statement. These cookies track visitors across websites and collect information to provide customized ads. The DSWD apparently discovered that the NGO was only a face for a smuggler of secondhand clothes, which were then sold in Baguio. With the spread of ukay-ukay stores, the practice of buying thrift items has become popular among Filipinos. Opportunities refer to favorable external factors that could give an organization a competitive advantage. In a SWOT analysis, strengths and weaknesses cover your own resources and processes. Creating a SWOT analysis involves identifying and analyzing the strengths, weaknesses, opportunities, and threats of a company. To the respondents, they will be able to realize how useful and beneficial of an ukay-ukay products particularly on their needs on clothings and etc. International Journal of Entrepreneurship and Small Business. The advantage of an ukay-ukay store business is that it has a basic business plan that is easy to learn. By continuing, you agree to our Terms and Conditions. Mostly, women are the ones who like to shop for ukay-ukay over men. "The Coca-Cola Company: A Short SWOT Analysis. The appeal of low-cost clothing continues to entice visitors into these stores in search of branded clothing for cheap prices. These four aspects can be broken into two analytical steps. Just like any other business, the success of an ukay-ukay business is 3 Award-Winning Chocolatiers Sweet Journey To Success, Store Owner Doesnt Mind Losing Profit To Treat Students. Ever wonder what your behavior says about your leadership style? Using internal and external data, the technique can guide businesses toward strategies more likely to be successful, and away from those in which they have been, or are likely to be, less successful. My Account | Its SWOT analysis prompted Value Line to pose some tough questions about Coca-Cola's strategy, but also to note that the company "will probably remain a top-tier beverage provider" that offered conservative investors "a reliable source of income and a bit of capital gains exposure.". secondhand clothing and garments goods were entered into the local market. Some thrift shops have even already marketed themselves as a seller of class A secondhand clothing. You will no longer need to pay for rent, making your overhead expenses lower than other businesses. To get a better picture of a SWOT analysis, consider the example of a fictitious organic smoothie company. We then crafted our business plan to emphasize the advantages of our strongest features while exploiting opportunities based on marketplace weaknesses.. It's powerful to have everyone in the room discuss the company's core strengths and weaknesses, define the opportunities and threats, and brainstorm ideas. With the transformation of secondhand clothing and garments retail and trade into what it is today, the government is now moving to Later on, wagwagan became the colloquial wagwag, which has the same meaning as ukay-ukay (Cabreza 2001). (Threat) How many competitors exist, and what is their market share? of Pages In recent years, the market for secondhand garments has flourished from its considered capital, Baguio City, province of Benguet. Ukay ukay (in short UK) is actually gouging in a pile of run down clothes,the word is derived from the word phrase 'halukay' which literary means "digging" or "make a mess". Poblacion in Makati is a perfect example of gentrification, and yet does this stop people from going there? In conjunction with other planning techniques, the company used the SWOT analysis to leverage its strengths and external opportunities to eliminate threats and strengthen areas where it is weak. Stores like Goodwill Industries in the U.S. and Salvation Army in the U.K., both distributed by Methodist churches, have begun to be a viable place for buying cheap clothes. The presence of such business activity in the city gained attention from the different sectors ukay-ukay entrepreneurs, consumers, franchised clothing traders and government. Diversity and entrepreneurship in the city of Athens: Different views and ambiguous perceptions of local entrepreneurs. their weekly income is from the range of 2,000-6,000, 5 of the respondents corresponding to 25% said that their weekly income is from the range of 6,000-10,000, 4 of the respondents corresponding to 20% said that their weekly income is ranging from 10,000-15,000 and 3 respondents corresponding to 15% said that their weekly income ranges from 15,000 and 20,000. Mary Darlene S. Concepcion, De La Salle University Integrated School (Manila) However, the practice of having video blogs about ukay like that of Guison is more a mainstreaming of the ukay-ukay culture, rather than gentrification. Also part of this mainstreaming are fashion and lifestyle magazines and websites such as Preview, Cosmopolitan, and Inquirer, which have featured the ukay-ukay culture on their platforms from a list of ukay shopping tips to ukay-ukay commandments every thrifty fashion girl must know.. 8 Top IT Companies In The Philippines. Enter the email address you signed up with and we'll email you a reset link. Armed with the ranked list of strengths, weaknesses, opportunities, and threats, it is time to convert the SWOT analysis into a strategic plan. Some source interviews were conducted for a previous version of this article. The market for secondhand goods grew vigorously across the world. We recommend also that the government should abolish the R.A. 4653 because even if there is law, still many ukay-ukay stocks are imported in our country from Japan, Korea and etc. Potential questions to list external factors are: Companies may consider performing this step as a "white-boarding" or "sticky note" session. Having a broad set of perspectives is also more likely to yield diverse, value-adding contributions. Sometimes its wise to perform a general SWOT analysis to check on the current landscape of your business and improve operations as needed. These include white papers, government data, original reporting, and interviews with industry experts. "SWOT Analysis: What It Is and When to Use It. In the top-left square, you record Wagwag items, which usually originate from Hong Kong and the United States, enter the Philippines in a manner different from that of traditional imports. Checking whether your current methods and plans remain the best way forward can help you keep up in an ever-changing business climate. Oftentimes, the SWOT analysis you envision before the session changes throughout to reflect factors you were unaware of and would never have captured if not for the groups input. Both values were based on the prevailing exchange rate at that time (Philippine Star 2000). Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. The respondents of this research study are at least 20 customers and 20 sellers of ukay-ukay clothing. Through this analysis, it identified that its strengths were good sourcing of ingredients, personalized customer service, and a strong relationship with suppliers. While the business owner should certainly be involved in creating a SWOT analysis, it is often helpful to include other team members in the process. The company was established on August 17, 2005. The questions serve as a guide for completing the SWOT analysis and creating a balanced list. The gross margins for your ukay ukay store business are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability. In the ukay ukay store business, employee turnover is often high, which can be quite costly and time consuming for your business. Make sure you are honest and efficient in dealing with your customers, so they can tell their friends about your store. Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. When ukay-ukay stores become a disservice for whom secondhand clothes simply mean cheap and not vintage or an ukay challenge, then thats where the danger actually resides. WebThe Ukay-ukay (a Filipino version of the flaw market) has successfully carved its own niche in the countrys local clothing industry these second-hand clothes stores, shoppers are Contrary to authorities notion that these commodities are donations from foreign countries, wagwag items are actually purchased from Hong Kong-based Salvation Armys rummage sale sites. For example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the crop yield. CONF_SHSRESCON Either way, you must be prepared that not all your items will be purchased. The SWOT framework can be constructed in list format, as free text, or, most commonly, as a 4-cell table, with quadrants dedicated to each element. But many dont mind about the law that prevents from selling ukay-ukay. Dana's indifference curves form a.right angles b.The answer cannot be, Mike likes beer and fried chicken and views them as perfect complements: for each bottle of beer, he likes to eat 3 pieces of fried chicken. Independent SWOT analysts, investors, or competitors can also guide them on whether a company, product line, or industry might be strong or weak and why. engages in property development. Second, how it enters the market is unique. Human resource planning (HRP) is the continuous process of systematic planning to achieve optimum use of an organization's employees. While authorities had every legal right to confiscate and even bum such items, ukay-ukay stall owners managed to remain unscathed by relocating outside Metro Manila-to locations not usually monitored by the Department of Trade and Industry (DTI) and the Department of Social Welfare and Development (DSWD), he said. Other common threats include things like rising costs for materials, increasing competition, tight labor supply. Following the journey of a pair of jeans Clothing Poverty takes the reader on a vivid around-the-world tour from cotton fields to retail stores. Linda Pophal, strategic marketing communication consultant and content marketer at Strategic Communications, said these strategies should focus on leveraging strengths and opportunities to overcome weaknesses and threats. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. This stage may require substantial debate among analysis participants, including bringing in upper management to help rank priorities. We see them in almost every corner in the Philippines: in wet markets, in dilapidated buildings, in side streets, and in plazas, among many others. The cookie is used to store the user consent for the cookies in the category "Analytics". For example, the company debating whether to release a new product may have identified that it is the market leader for its existing product and there is the opportunity to expand to new markets. due to the corruption in the government. Due to the frequency of calamities happening in our country, a certain humanitarian group called the Salvation Army used to ship second-hand garments and other goods as forms of help to the filipino victims. In this example, the SWOT analysis should help determine whether or not the product should be introduced. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Investopedia does not include all offers available in the marketplace. The problems encountered by customers of the ukay-ukay business do not significantly affect the economic benefits they derive. Secondary Data- are the data collected for some other purpose before the study, such data are also called historical data. Manila (CNN Philippines Life) Wearing a pair of Ray-Ban sunglasses with a leather fanny pack slung across his shoulder, David Guison introduces a new segment for his video blog, called 500-Peso Ukay-Ukay Challenge. He talks in front of a camera with the four-storey ukay in Anonas as the backdrop, and shares how when he was in college, he would go to an ukay-ukay every week and hunt for one-of-a-kind pieces. The researchers will use questionnaire and personal interview. Out of 20 respondents (sellers), 17 of the respondents corresponding to 85% said that they get their stock in Cebu City, and other respondents corresponding each at 1% said that they get their stocks in Manila, Korea and Samar. In 2015, a Value Line SWOT analysis of The Coca-Cola Company noted strengths such as its globally famous brand name, vast distribution network, and opportunities in emerging markets. As soon as he promoted his video on Twitter, some users started calling him out for gentrifying ukay-ukay, for being burgis, for not acknowledging that shopping in an ukay-ukay is more than a challenge, especially since [proletariats] treat it as a lifestyle. Other users also came to his defense, saying that it is a non-issue when he certainly is not the only person of privilege who shops in ukay (for example, photographer Shaira Luna has talked about her love for ukay countless times) or that hes not influential enough to actually gentrify ukay-ukays. Dont make the mistake of thinking about your business operations informally, in hopes that they will all come together on their own. In the meantime, Filipinos everywhere protested against the ban, saying that it is anti-poor on so many levels. A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization, initiatives, or within its industry. You can learn more about the standards we follow in producing accurate, unbiased content in our. Students looking for free, top-notch essay and term paper samples on various topics. The ukay shopping phenomena all started in Baguio. Knowing these positive and negative elements can help companies more effectively communicate what parts of a plan need to be recognized. All rights reserved. The term ukay-ukay was derived from the Visayan term halukay which means the act of digging. Primary Data- are the data that are collected to help solve a problem or take advantage of an opportunity on which a decision is pending. You also have the option to opt-out of these cookies. Primary data are data that are collected to help solve a problem or take advantage of an opportunity on which a decision making is pending. To keep client loyalty, a discount of Php10-20 is acceptable, if it would still end in a profit. These goods are actually transported to different stores in Baguio City as well as places in Metro Manila via balikbayan boxes. Since these are used garments, they are sold at less than half their prices (Cabreza 2001). These are then shipped to the Philippines, which are sold at less than half of the prices of the already cheap Salvation Army pieces. This study is designed primarily to know the nature of Ukay-ukay industry particularly in Tacloban City. To inform people about the advantages of Ukay-Ukay. If anything, the issue brought to light an often understudied culture of shopping in an ukay-ukay. However, finding the right supplier is not an easy task. In sourcing your goods, you can either thrift them by yourself or buy them wholesale from suppliers. The six forces model is a strategic business tool that helps businesses evaluate the competitiveness and attractiveness of a market. There is a lot of information available to you on the internet (Facebook groups, Youtube videos, etc). If you can afford it, you can employ extra hands to help you. Most people said that the most common disadvantage of ukay-ukay is that sometimes it is not good condition, because of the holes, scratches, dirt and etc. When such goods are brought into the country, records would show that some were not really intended for sale: The government would maintain that these are either donations or aid from foreign countries. Bhd. You can also work in reverse witha segment-specific SWOT analysis that feeds into an overall SWOT analysis. This way, you can see how the overall strategy developed from the SWOT analysis will filter down to the segments below before committing to it. A SWOT analysis is a great way to guide business-strategy meetings. Most respondents (costumers) believe that the disadvantage of ukay-ukay corresponding to 35% is that sometimes when buying ukay-ukay it has holes, broken zippers, dirt and etc.
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