Midterm Question # 1

Research 1 company that makes use of E-commerce. Describe the nature of this company in 1-2 paragraphs.Identify then, how does this company use e-commerce to achieve strategic advantage. Describe the benefits derived from this strategy.

PGS CRAFTS INC.

Was established in 1989 as a manufacturer of handicrafts and shell crafts. We know that raw materials and labor account to 40 to 60 percent of the product cost, so we source our raw materials especially shells directly from the fishermen. Also, we maintain a 500,000 sq. Meter property planted with lots of bamboos, trees, palm trees, coconut trees, vines and bananas to supply our indigenous raw material requirement.

As long as our shells are combined with these indigenous materials, nobody can beat our price. Our R&D staff are constantly making new products to make sure that our customers will have new and interesting products to sell. From a single entity in 1989, we have diversified our business to different fields such as financing, agro industrial operations, consumer products manufacturing, specialty beverage retail and real estate.

Business Type:
Manufacturer

Product/Service:
Raw seashells, shell packs, shell lamp vases and wind chimes, fashion accessories

Trade & Market
Main Markets:
North AmericaSouth AmericaWestern EuropeEastern EuropeEastern AsiaSoutheast AsiaMid EastAfricaOceania

Exporters Benefits
1. COST-EFFECTIVE ONLINE PROMOTION
As an exporter who has joined CITEM’s trade fairs, trade missions and other promotional activities, you get free web exposure for a period of two years. You are entitled to four web pages: your basic company data, and three photos with description of your product choices for export. Surfers can click on the thumbnail versions of the pictures to enlarge them.

2. INTERNET ACCESS BY FOREIGN BUYERS 24 / 7
The 750 million Net global audience can access your virtual business card non-stop during the day, seven days a week, 365 days a year.

3. FREE LINK TO THE COMPANY'S WEBSITE
With the linkage to your own website, you are able to provide more information on your firm. Your website serves as an online brochure of your products and services, your competitive edge, and your management team.

4. REGULAR CHANGE OF PRODUCT PHOTOS
If you need to introduce a new product to the market, all you have to do is send us the new product shot in jpeg format via e-mail to mailto:col@citem.com.ph with the standard product description. You are entitled to a maximum of three product photo changes per year.

5. REGULAR ACCESS TO BUYER INQUIRIES
The CITEM Trade Opportunities Program (CTOP) is the twin e-Business Match Program of Catalog Online (COL).This is a year-round buyer inquiry service. Catalog Online exporters will regularly receive a listing of CTOP buyers by e-mail.

6. EXCERPTS OF SELECTED ARTICLES FROM CITEM’s LIBRARY
AND RESOURCE CENTER
CITEM’s Library and Resource Center has a wealth of trade information materials. A Library Acquisitions Report is available at http://www.citem.com.ph/, and choice articles can be read or downloaded via the password to be issued exclusively to Catalog Online exporters.


Buyers Benefits

1. REFERRAL to CITEM’s DATABASE of EXPORTERS
You will be referred to manufacturers who can supply your required products or services

2. ASSISTANCE in the SEARCH for ADDITIONAL EXPORTERS
Should you need products or services other than those carried by Catalog Online (COL) exporters, you will be provided with selected suppliers through the CITEM Trade Opportunities Program (CTOP), the twin e-Business Match Program of the COL.

3. CITEM PROMOTIONAL MATERIALS
You will recieve promotional materials on CITEM-organized events.

4. PRE-ARRANGED BUSINESS MEETINGS and FACTORY VISITS
When visiting the Philippines, you may request us to arrange your business meetings and factory visits with Catalog Online exporters, free of charge.

5. REFERRAL to PROPER AGENCIES and SERVICE PROVIDERS
We can link you to other authorities and organizations involved in practical trade operations and trade promotion.

6. ASSISTANCE in TRANSACTIONS and CONCERNS
We can follow up your transactions, or we can serve as a mediator on issues to be settled with Catalog Online exporters.