Mighty Corp and their business strategy

In the controversies that the Bulacan-based tobacco manufacturer Mighty Corp strucked the company for the past several months, they explained about their business strategy. According to Vice President and spokesman Oscar Barrientos said that they keep their products low-priced, while their competition has very high costs. Mighty has been dedicated to their principles of serving Filipinos by its quality and affordable products in the country. But the rival companies keep on mudslinging Mighty with malicious lies over the issues on tax evasion and alleged technical smuggling.

With the low profits that Mighty is earning, while the other brands targeting a very high profit that makes the Bulacan-based company emerged in the market. As the company doesn’t have foreign brands and equity, and also they don’t remit royalty to any foreign headquarters. They didn’t retain a professional consultant which paying a high salary in the company. PMFTC does have this for the sake of making it more than 90% of the cigarette market are from them.

The diverse experience of Mighty Corp in the tobacco industry since the 1940s as they produced truly Filipino products. In my observation, there are smokers that around in their 30s to 40s of age bought the company's products per stick. With the heavy competition in this kind of industry, Barrientos added that they solidify its base, and enhance its core competencies. Smokers nowadays have three choices: quit smoking, smoke less frequently or look for low-priced alternatives.

Meanwhile, the retired judge said that fraud is a serious offense. And it must be proven by complete evidence, and conducted by a trusted authority. The allegation against the company is indeed unfair. Thus, the competitors doing damaging claims that the company did it illegally. They must prove to the authorities that they have substantial evidences against Mighty.

“We’re not selling at a loss; we’re gaining. Why should we continue our business at a loss? Assuming we’re losing, why should the competition be worried? Actually, we’re making reasonable profit. Our concept of gain is not only measured in peso signs; having been patronized by our loyal customers in the low-priced market, we feel duty-bound to keep our price low owing to our company’s nationalistic anchor,” Barrientos explained.

The margin profit of Wongchuking-owned company are totally different from the others in the said industry. The thing is that the competitor didn't explain publicly their side on how they merged.