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Strategic Management Final Output

RUSI, founded in 1954, has evolved from a small hardware shop to a leading motorcycle brand in the Philippines, focusing on affordability and local manufacturing. The company employs a strong distribution network, after-sales services, and flexible financing options to cater to middle- and lower-income consumers. To maintain its competitive edge, RUSI should enhance digital transformation, expand product offerings, and strengthen customer loyalty while embracing its brand heritage.
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0% found this document useful (0 votes)
16 views18 pages

Strategic Management Final Output

RUSI, founded in 1954, has evolved from a small hardware shop to a leading motorcycle brand in the Philippines, focusing on affordability and local manufacturing. The company employs a strong distribution network, after-sales services, and flexible financing options to cater to middle- and lower-income consumers. To maintain its competitive edge, RUSI should enhance digital transformation, expand product offerings, and strengthen customer loyalty while embracing its brand heritage.
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Strategic Management Final Output

Group 7
Leader:
Gilezon, Andrei Lanz C.
Members:
Montefalcon, John Paul
Gliane, Isiah Russel E.
Patawaran II, Alvin D.
Magpayo, Eljon B.
Bacud, Jerome P.
Salik, Harold B.
Introduction

Information about the Company


Founded in 1954 as a hardware and automotive shop in Dumaguete City, RUSI's
origins could be traced back to the post-World War II days when it operated as a shoe
repair and junk shop that gathered used metals and scrap cars. That entrepreneurial
legacy from Nicanor Ramas Uypitching, the company’s patriarch and founder is also a
testament to overcoming poverty and hardship through hard work, perseverance and
strong determination.

Nicanor’s three older sons Jose, Segundo and Antonio took over the operation after
their father died in 1967.

Vowing to “never forget where we came from in order to remind us of who we are and
where we want to be,” the brothers have made sure that family members are constantly
reminded of their modest origins so that they remain motivated by the same spirit of
industry and resolve in continuously improving their lives.

In 1987, Nicolas, the youngest son, reorganized and paved the way for its growth
nationwide as Ramas-Uypitching Sons, Inc. (RUSI) led by grandson, Ernesto. With its
focus on Filipino-branded RAM cycles, RUSI has since maintained its position as
market leader in the region.

The tagline "Sabut-sabut lang" for RUSI Motorcycles is memorable because it


resonates with the casual and laid-back attitude often associated with Filipino culture.
The phrase, which roughly translates to "just go with it" or "take it easy," aligns with the
brand's approachable and affordable image, making it relatable and catchy for local
consumers. Additionally, its use in social media and advertising campaigns has helped
to reinforce its memorability and brand identity.
Internal Operations

Manufacturing and Assembly

RUSI takes pride in its localized manufacturing and assembly process, ensuring that
motorcycles remain affordable and accessible to Filipino consumers. Instead of
importing fully assembled units—which would mean higher tariffs and transportation
costs—the company sources parts both locally and internationally and assembles them
in the Philippines. This approach keeps production costs low while maintaining control
over quality.

More than just cutting costs, local assembly also creates jobs, supporting Filipino
workers and contributing to the economy. By keeping motorcycles affordable, RUSI
helps middle- and lower-income families access reliable transportation, making daily
commutes and business operations easier.

 Key Benefit: RUSI's cost-efficient production strategy allows it to offer competitive


prices without compromising on quality.

Distribution Network

To make its motorcycles easily accessible, RUSI has built a nationwide network of
dealerships, branches, and service centers across urban and rural areas. This ensures
that customers, no matter where they are, can find a RUSI dealership nearby.

The company also operates regional warehouses that keep dealerships stocked,
preventing shortages and ensuring that customers can get their motorcycles quickly.

Additionally, partnerships with independent dealerships help RUSI expand its reach
without needing massive capital investments.
A well-planned supply chain and logistics system ensures that motorcycles move
smoothly from assembly plants to dealerships, reducing delays and making the buying
process more convenient for customers.

 Key Benefit: RUSI’s strong distribution network makes motorcycles, spare parts,
and services readily available, giving the company a solid foothold in the market.

After-Sales Services

RUSI understands that buying a motorcycle is just the beginning of the journey. To build
trust and long-term customer relationships, the company provides after-sales services
through authorized service centers and partner repair shops nationwide.

Whether it's routine maintenance, repairs, warranty services, or parts replacement,


RUSI ensures that customers get the support they need to keep their motorcycles
running smoothly. The company also trains mechanics in specialized repair techniques,
guaranteeing that service centers maintain a high level of expertise.

To encourage regular maintenance, affordable service packages are offered, making it


more convenient for customers to return to authorized centers rather than relying on
unverified repair shops.

 Key Benefit: Reliable after-sales service builds customer confidence, strengthens


brand loyalty, and ensures that RUSI motorcycles remain in great condition for
years to come.
Financial Services

Owning a motorcycle shouldn’t be out of reach, and RUSI makes sure of that by offering
flexible financing options. Through in-house financing and partnerships with banks and
lending institutions, the company helps customers purchase motorcycles without the
burden of high upfront costs.

Many financing plans include low down payments and extended installment terms,
making it easier for individuals—especially small business owners and tricycle operators
—to invest in their own transportation. Additionally, RUSI’s financing services cater to
informal-sector workers who may not qualify for traditional bank loans, further widening
access to affordable mobility solutions.

 Key Benefit: By providing financial flexibility, RUSI makes motorcycle ownership


more accessible, boosts customer reach, and drives sustainable business
growth.

Marketing Approach

RUSI’s marketing strategy successfully combines traditional, digital, and customer-


focused approaches to maintain a strong presence in the Philippine market. By
emphasizing affordability, leveraging digital channels, and offering financing flexibility,
RUSI continues to attract and retain customers while growing its brand.

Additionally RUSI and Foodpanda have partnered to help delivery riders gain access to
affordable and reliable motorcycles, making it easier for them to earn a stable income.
Through this collaboration, Foodpanda riders can take advantage of exclusive financing
options and flexible payment plans offered by RUSI, allowing them to own a motorcycle
with low down payments and manageable monthly installments. This initiative not only
provides riders with a dependable mode of transportation but also enhances their
efficiency in delivering food and services to customers. By supporting riders with
accessible mobility solutions, RUSI and Foodpanda contribute to the growth of the gig
economy, empowering individuals to achieve financial independence while ensuring
faster and more reliable deliveries.

Human Resource Approach

Recruitment Approach:
RUSI is active in posting their available position on different online hiring websites and
to their social media. They focus on local talent acquisition that has a strong presence in
motorcycle and automotive industry sectors emphasizing on their direct hiring rather
than third-party recruitment.

Employment Structure:
Mix of regular and contractual workers: RUSI employs both permanent staff for core
operations and contract workers for seasonal or project-based needs, balancing
workforce flexibility with stability.
Cross-divisional positions:
The company structure spans manufacturing plants, retail stores, and administrative
offices, each requiring specialized skill sets and expertise.
Regional staffing: With operations across the Philippines, RUSI maintains location-
specific teams tailored to local market needs and operational requirements.
Career Development:
Entry to management progression: Employees can advance from basic positions to
leadership roles through experience and performance, fostering internal growth and
loyalty.

Industry-specific opportunities:
Staff can develop expertise in motorcycle production, sales techniques, or technical
support, allowing for specialized career paths within the organization.

Current Strategies

Market Expansion:

Strengthening their presence in Philippine regions and expanding their dealership


network across the Philippines focusing on rural market penetration and now expanding
to urban markets.

Product Strategy:

They offer various motorcycle models emphasizing affordable price points and
enhancing after-sales service.

Digital Transformation:

They integrate digital payment and modernized inventory tracking systems. They also
add online customer service to enhance overall customer service experience.
Partnership:

RUSI and Foodpanda have partnered to help delivery riders gain access to affordable
and reliable motorcycles, making it easier for them to earn a stable income and have a
flexible job.

Strategies to Develop

RUSI has already laid a strong foundation with its current strategies in market
expansion, product offerings, digital transformation, and partnerships. However, to
remain competitive in an evolving industry, the company must build upon these efforts
by exploring new opportunities, refining existing services, and embracing emerging
trends.

1. Strengthening Market Expansion Efforts

RUSI has been successful in penetrating rural markets and is now focusing on urban
expansion. To further develop this strategy, the company should intensify its presence

in Metro Manila and other key cities, where demand for affordable motorcycles remains
high. Increasing dealership density, offering location-specific promotions, and ensuring
convenient access to service centers will help attract urban commuters.

Beyond the Philippines, international expansion presents a promising opportunity.


Southeast Asian countries like Indonesia, Vietnam, and Thailand have a thriving
demand for budget-friendly motorcycles, making them ideal markets for RUSI’s cost-
effective models. The company can explore franchising, distribution partnerships, or
direct exports to establish its presence abroad. Additionally, with growing environmental
concerns, introducing electric motorcycles designed for urban commutes could position
RUSI as a future-ready brand that caters to sustainability-conscious riders.

2. Expanding and Diversifying Product Offerings

While RUSI has built its reputation around affordability, it can further enhance its
product strategy by offering specialized motorcycle models tailored for different
consumer needs. For example, lightweight and fuel-efficient scooters can attract
students and female riders, while cargo-friendly models could cater to business owners
and delivery services. Introducing dual-sport or off-road motorcycles can also help RUSI
tap into the adventure and recreational riding market.

Customization is another area of opportunity. By offering personalized accessories and


modification packages, RUSI can enhance customer engagement and provide added
value beyond the initial purchase. Additionally, enhancing after-sales services—such as
extending warranty coverage, introducing a loyalty-based servicing program, and
offering exclusive discounts for repeat customers—will ensure long-term customer
satisfaction and retention.

3. Advancing Digital Transformation

While RUSI has taken steps toward digitalization through online customer service and
digital payment integration, the next step is to develop a fully integrated e-commerce
platform. This platform should allow customers to browse motorcycles, apply for
financing, and schedule servicing appointments online, providing a seamless buying
experience.

Furthermore, leveraging artificial intelligence and data analytics can help RUSI better
understand consumer preferences, enabling more targeted marketing campaigns. By
analyzing customer purchase behavior, the company can provide personalized
promotions, service reminders, and financing recommendations that cater to individual
needs.

Another key improvement would be the development of a dedicated RUSI mobile app.
This app can serve as a hub for customers to track service updates, receive financing
reminders, access exclusive promotions, and even engage with a rider community.
Strengthening social media engagement—through influencer partnerships, interactive
campaigns, and customer-generated content—can also enhance brand awareness and
loyalty, particularly among younger riders.
4. Expanding Partnerships for Greater Market Reach

RUSI’s collaboration with Foodpanda to provide delivery riders with affordable


motorcycles has been a successful initiative. To build on this momentum, the company
should expand its fleet sales and corporate partnerships to include logistics and ride-
hailing companies such as Grab, Lalamove, and Angkas. By providing exclusive
financing options and bulk purchase discounts to these businesses, RUSI can increase
its sales volume while supporting the gig economy.

Another area for partnership development is maintenance and after-sales service. While
RUSI has its own service centers, collaborating with third-party auto repair shops can
expand after-sales support, making it easier for customers to access repairs and
maintenance, especially in areas where RUSI does not have a physical presence.

Finally, co-branding and sponsorship opportunities can further enhance RUSI’s brand
visibility. Partnering with Filipino motorcycle influencers, sponsoring local riding events,
or collaborating with racing communities will help reinforce RUSI’s position as a trusted,
homegrown motorcycle brand.

5. Branding and Heritage Strategy

RUSI isn’t just another motorcycle brand—it’s a part of Filipino culture. It has been
trusted by generations of riders, and that legacy is worth celebrating. A well-crafted
storytelling campaign, showcasing RUSI’s history and its impact on communities, would
strengthen its emotional connection with customers. Engaging in grassroots events—
such as sponsoring local riding groups and organizing road safety programs—would
reinforce its commitment to everyday riders. And to truly bring its heritage to life, RUSI
could establish experience centers where customers can see the brand’s journey,
innovations, and vision for the future.
Business Level Strategies (Competitive Advantage)

Brand Heritage:
RUSI has already been in the market since the 1960s, they established high brand
recognition in Visayas-Mindanao and now expanding even in urban areas and Luzon.

Price Leadership:
RUSI is 20-40% cheaper when it comes to spare parts, maintenance and unit itself
compared to Japanese or leading brands.

Market Understanding:
RUSI already has over 60 plus years experience in the Philippine market establishing
community relations. They know the FIlipino preference that is why their models are
built and designed for local road conditions.

Strategies to Strengthen the Competitive Advantage

Leverage Brand Heritage:

RUSI can create a heritage-focused storytelling campaign highlighting 60+ years of


Filipino trust and then develop limited edition models commemorating significant
milestones. They can also document and showcase success stories from long-term
customers that can be seen at the RUSI museum or heritage center in key locations
that they will also establish.

Enhance Price Leadership:

RUSI must strengthen its cost leadership role with strategic initiatives. RUSI may
maintain its cost leadership by optimizing its local supply chain system to maintain
consistent cost efficiency in operations. By launching carefully filtered value-added
service packages with minimal impact on price, RUSI may foster customer value while
preserving cost leadership. It would explicitly show huge cost savings when compared
to competitors, create trust, and reinstate RUSI's value proposition. Additionally, the
establishment of a loyalty reward program would allow customers unparalleled cost
benefits, generating long-term bonding without compromising on the price leadership
position of the brand in the market.

RUSI can strengthen its market presence by establishing regional research facilities to
develop locally-optimized models. Through its dealer network, the company can gather
customer insights while launching targeted community programs in expansion areas.
Combined with region-specific marketing efforts, these initiatives would reinforce RUSI's
understanding of diverse market need

Strategy to Identify Customer

Geographic:

 Primary market: Visayas-Mindanao regions


 Expanding market: Urban areas and Luzon
 Strong presence in Dumaguete City and Mandaue City, Cebu

Demographic:

 Middle to lower-income segments


 Price-sensitive consumers
 Working professionals and small business owners
 Rural and semi-urban residents
 Aspiring Food Panda rider

Psychographic:

 Value-conscious buyers
 Practical motorcycle users
 Customers who prioritize affordability over brand prestige
 Users seeking reliable daily transportation
Behavioral:

 First-time motorcycle buyers


 Cost-conscious maintenance seekers
 Daily commuters
 Small business delivery services
 Utility-focused riders

Strategies to Retain and Attract New Customers

To Retain Customer:

RUSI can enhance its customer engagement and retain customers through a
comprehensive rewards system. They should establish a trade-in program that makes
upgrading to newer models more accessible for existing customers. A structured points
system for parts and service transactions would encourage regular maintenance.
Priority servicing arrangements for dedicated customers would demonstrate the
company's commitment to those who consistently choose RUSI. Additionally,
implementing a referral rewards program would leverage satisfied customers as brand
advocates, creating a natural network of trust-based marketing.

To Attract New Customer:

RUSI should modernize its market approach through integrated digital initiatives. The
motorcycle company needs to strengthen its online presence through strategic social
media engagement, connecting with potential customers where they spend significant
time. By implementing data-driven online advertising, RUSI can reach specific audience
segments with tailored messages that resonate with their needs. The development of
interactive virtual showrooms would allow potential buyers to explore motorcycle
features remotely, adapting to changing consumer preferences. Supporting these digital
efforts, RUSI should introduce specialized financing options designed specifically for
first-time buyers, making motorcycle ownership more attainable for new market
segments.
Conclusion and Recommendations

RUSI has come a long way from its humble beginnings as a small hardware and

automotive shop in Dumaguete City. Over the decades, it has built a solid reputation as
an affordable and accessible motorcycle brand, earning the trust of Filipino riders
across the country. By focusing on localized manufacturing, a strong distribution
network, after-sales services, and flexible financing, RUSI has successfully positioned
itself as a cost-effective alternative to leading global brands.

However, despite its strong market presence, RUSI faces challenges that come with
increasing competition, changing consumer preferences, and the ongoing shift towards
digital and sustainable transportation solutions. The company’s strength lies in its deep
understanding of the Filipino market, but to stay ahead, it must continue evolving—
adopting innovative strategies while reinforcing the very values that have built its legacy.

Moving forward, RUSI must leverage its cost leadership, embrace digital transformation,
and strengthen customer loyalty to ensure that it remains a dominant player in the
industry. By doing so, it can secure long-term growth and continue providing quality,
affordable mobility solutions to Filipinos.

To sustain its competitive edge and address the challenges ahead, RUSI should focus
on the following key strategic areas:

1. Strengthen Digital Transformation

 Develop an e-commerce platform where customers can browse motorcycles,


apply for financing, and schedule service appointments online.
 Use data analytics and AI-driven marketing to better understand customer
preferences and create personalized promotions.
 Expand social media engagement through influencer partnerships and interactive
digital campaigns to attract younger consumers.
2. Expand Market Reach

 Increase presence in urban areas, particularly in Metro Manila and Luzon, to tap
into a broader customer base.
 Explore international expansion opportunities in Southeast Asian countries where
affordable motorcycles are in high demand.
 Develop electric motorcycle models to align with sustainability trends and appeal
to environmentally conscious consumers.

3. Enhance Cost Leadership Strategy

 Optimize local sourcing and manufacturing processes to keep prices competitive


while maintaining quality.
 Invest in automation and lean production methods to improve efficiency and
reduce operational costs.
 Highlight cost advantages in marketing campaigns, emphasizing RUSI’s
affordability compared to global brands.

4. Improve Customer Retention and After-Sales Service

 Introduce a loyalty rewards program that offers discounts, free services, or


exclusive benefits to repeat customers.
 Launch a trade-in program to encourage existing customers to upgrade to newer
models while keeping them loyal to the brand.
 Expand authorized service centers and financing options to ensure customers
continue choosing RUSI for their transportation needs.

5. Reinforce Brand Heritage and Community Engagement

 Create a storytelling campaign showcasing RUSI’s long-standing trust among


Filipino riders.
 Organize community riding events, road safety programs, and local sponsorships
to strengthen brand loyalty.
 Establish interactive showrooms or experience centers to highlight RUSI’s
legacy, technological advancements, and commitment to Filipino riders.
6. "Sidecar to Success" CSR Initiative

A sustainable initiative to help tricycle drivers own their sidecars through a combination of
financial assistance and skills development.

 Free sidecar for community


 Active tricycle operator's permit assistance with partnership with local government units
or cooperatives (co-ops)
 Basic welding and maintenance training
 Sidecar repair workshops

Reflection

As we reflect on RUSI's remarkable journey from a modest junk shop to a well-known


motorcycle company, we find deep similarities to our own student life. Their story
teaches us that humble beginnings, like starting from scratch, don't define our future.
Just as RUSI began by collecting scrap metals and repairing shoes, we too start our
academic journey with basic knowledge, gradually building our skills and understanding.

The company's emphasis on remembering their roots particularly resonates with us.
Their tagline "Sabut-sabut lang" (just go with it) reminds me that while we should work
hard, we shouldn't let anxiety overwhelm us. Sometimes, taking things one step at a
time, whether it's breaking down a complex project or tackling a challenging course, is
the best approach to achieving our goals.

What's truly inspiring is how RUSI adapted and evolved over time, transforming from a
small hardware store to a motorcycle manufacturer. This teaches us that success rarely
follows a straight path. As students, we often face unexpected challenges or discover
new interests that might alter our academic or career plans. RUSI's story shows us that
such changes, when approached with determination and flexibility, can lead to
unexpected opportunities.

The company's growth mindset, demonstrated through their continuous expansion and
adaptation to market needs, mirrors what we need in our academic journey. Just as
RUSI didn't remain content with local success but pushed for nationwide growth, we too
should never stop challenging ourselves to learn more, do better, and reach higher.
Their story reminds us that success comes not just from hard work, but from
maintaining an open mind to learning, taking calculated risks, and staying persistent
despite setbacks.

Most importantly, RUSI's journey from collecting scraps to becoming an industry leader
shows that transformation is possible with dedication and the right mindset. As students,
we're all on our own transformative journey, turning small opportunities - whether they're
class projects, internships, or extra-curricular activities - into stepping stones for future
success. Their story reassures us that with persistence, adaptability, and a balanced
approach to challenges, we too can turn our educational journey into a foundation for
significant achievement.

REFERENCES:
https://www.coursehero.com/file/138264146/rusi-and-productsdocx/
https://www.studocu.com/ph/document/university-of-st-la-salle/accountancy/final-a-case-study-
of-rusi-company-reponte-rellon-solatorio/46710553
https://rusimcgroup.com/
https://www.facebook.com/rusiphilippines/
https://www.dti.gov.ph/archives/news-archives/manufacturing-remains-crucial-for-recovery/
[https://metropost-online.com/the-uypitching-legacy-p9885-732]
[https://www.studocu.com/ph/document/university-of-st-la-salle/accountancy/final-a-case-study-
of-rusi-company-reponte-rellon-solatorio/46710553]
[https://www.youtube.com/watch?v=qLHuMTmVI2I](https://www.youtube.com/watch?
v=qLHuMTmVI2I)
https://motorcycle.kf5.co/history-of-rusi-motorcycle/
https://beta.blueberrypharmacy.com/newsbuzzreporters6/rusi-philippines-a-complete-guide-to-
the-motorcycle-giant.html
https://enterprisersproject.com/what-is-digital-transformation
https://www.zendesk.com/blog/loyalty-rewards/
https://hallandpartners.com/perspectives/does-brand-heritage-power-or-hinder-growth-
2#:~:text=Their%20distinctiveness%20gets%20them%20noticed,them%20and%20continue
%20buying%20them.

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