Q: Is it advisable for local entrepreneurs to team up with big players from Manila, to strengthen their hold of the local market?
[related|post]A: That would be a sensible approach, because competing head-on with the big guys is suicide. You either try to team up with them or get into a business that they will not want to do. So that means concentrating on specific market niches, or coming up with smaller projects the big guys will not want to do because it’s too small; the scale’s too small, and the profit’s too little for the big guys to even notice—but it’s comfortable enough for the local business guys. So they will have to accept the role of not (being) the major anchor (of business), but more like a satellite.
In fact, local entrepreneurs should reverse their thinking and welcome the big guys coming in with big investments in their area because it signals the modernization of the area. It also signals the creation of new wants and lifestyles. Something that also goes with that is more jobs. You have to look at the big guys coming in, not to steal all the business away, but to create new business opportunities. Local businesses can create support industries that really emanate from the opportunities created by the presence of the big player.
Prof. Danilo A. Antonio is the “dealmaker” and president of the ACE Center for Entrepreneurship and Management Education Inc. (ACE-ME). He has extensive experience in real estate development starting as an executive in Ayala Land. He continued with his real estate ventures by helping form Landco Pacific, now considered one of the leading real estate companies in the country. He is also the CEO of Land Excel Consulting and the chairman of Canyon Cove Beach Club in Nasugbu, Batangas.