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| Image Courtesy: http://fofoa.blogspot.com |
Because of the recession, the major retailers are stretching the credit amount that the Philippines food consolidator needs. The bad thing is that this business transaction forces the small enterprises into financial pressure. Since the banks are not in favor with extending their credit, the suppliers who are having a hard time will most likely be acquired by another company.
The private equity is regularly considered as stripping assets and losses of jobs, but the case here is really the opposite. If the firm is able to apply professional concentration and classifying the items that are compatible with an enterprise, it will help expand the business within a time frame of 3 to 4 years. A declining industry that is in need of a turnover and refocus can grow up to 4 times its size in the care of a private equity company. The firm just has to make sure that they know what they are getting into if they choose to invest.
The smaller corporations have a tendency to be creative and revolutionize, but it will be a difficult task to form a brand or another type of competitive advantage. In general, private branding is a threat in the making since the original brands of the retailers are going to lock horns with the goods that are branded.
To make the already complex matters worse, the private label is rapidly becoming a common thing in the Philippine food consolidator business world of today. As an example, the typical grocery store now has the opportunity to sell parallel items in an economy range, a luxury range, and even the fair trade range.
