Porter’s Five Forces Model

Bargaining Power of Supplier - Low

The level of bargaining power of suppliers is low. Our business which is the Ricetaurant, offers
rice as the main product. As we all know, rice is the staple food of Filipinos. So there are many supplier
of rice in the Philippines. Also, we will get the ingredients that we will use from the Bayambang Market.
We also have an alternative supplier which is the Geraldine’s Agricultural Supply just in case there’s no
supply from our direct supplier.

Bargaining Power of Customer - High

The level of bargaining power of customers is high. Ricetaurant’s location is inside the campus of
Bayambang National High School and since there were a lot of students who are our possible customers
the pricing will be controlled by them. Also, the pricing of our products will depend on the capacity of the
students to purchase our products.

Threat of New Entrants - Moderate

The level of the threat of new entrants is moderate. Food carts are in-demand and mostly
patronize by locals, nowadays. There is a possibility that other businessmen can locate their food cart
businesses inside the school as well.

Threat of New Substitute - High

The increase in new substitutes for the product that we are offering is high. Our business which is
Ricetaurant mainly offers rice meals to its consumers. There are a lot of food carts in our location that
caters students and even faculty members.

Industry and Competitor Analysis

The Porter’s Five Forces Model which are the Bargaining Power of Supplier, Bargaining Power of
Buyer, Competitive Rivalry, Threat of Substitution, and Threat of New Entry are all evaluated in this part
to see how they could influence the firm in the future.

A. Bargaining Power of Supplier

Acquisition, purchase, lease, keep, sell, or otherwise trade in land and real estate are
included in the Real Estate industry where Pryce Corporation is managing their original business
which is Pryce Gardens memorial parks. In Mindanao, Philippines, Pryce Gardens is the premier
 memorial park developer. The well-kept grass and well-paved paths of the gardens allow guests
to take a stroll around the fountains and breathtaking locations. Clients may meditate, connect in
spirit with their deceased loved ones, and recollect wonderful memories here if
by allowing themselves the quiet and time. The memorial parks at Pryce Gardens are well-
equipped with contemporary amenities and are completely enclosed for protection. Each one has
a deep well, a water sprinkling system, and sophisticated burial equipment for mournful and
dignified funeral services. The company's operations are involved in the establishment of
memorial parks as well as the selling of memorial lots. The level of bargaining power of
suppliers is low as there are many locations and areas that the company can acquire, purchase,
lease, keep, sell in the Philippines. As such, Cagayan de Oro City, Iligan City, Ozamiz,
Zamboanga City, Davao City, Malaybalay City in Bukidnon, Malita in Davao del Sur, Bislig in
Surigao del Sur, Alabel in Saranggani, and Pagadian City are among the cities in Mindanao
where it owns and maintains over ten memorial parks.

B. Bargaining Power of Buyer

The Company is confident in and proud of the higher quality of its goods and services
compared to its competitors, and it is committed to its customers to preserve that quality. Such
dedication to greater quality and consistency comes at a cost, which is one of the main reasons
why the Company's goods are more expensive than those of rivals.
The level of bargaining power of buyers is low as prospective or target consumers are
educated on why the Company's products are priced more than the rivals by the company's park
business managers and salespeople. The advantages of purchasing such goods from a company
that is committed to consistent excellent product quality and has extensive expertise in the
creation and maintenance of memorial parks are also emphasized to these clients. Regardless of a
higher-priced product, the Company's potential buyers can acquire it on 'soft and easy terms,' as
the majority of its customers have done, in which they pay in installments with no down-payment
or interest charge for periods ranging from three to five years.

C. Competitive Rivalry
In the Philippines, the real estate market is fiercely competitive. The scope and character
of competition differ depending on the geographic location and price category. Real estate
activity used to be centered in the NCR and other large metropolitan regions, but it has recently
spread to Mindanao and Visayas' different population centers and cities. Therefore, the level of
competitive rivalry is moderate with its primary real estate business that focuses on memorial
 parks. There some various memorial parks that offer various characteristics and personalities with
respect to the natural landscape, land and setting development, and quality maintenance of the
whole area and its environment. Stated in the 2020 Annual Report submitted by the Pryce
Corporation to the Securities and Exchange Commission (SEC) are the following major rivals in
each Company’s Pryce Gardens memorial parks:

A. Cagayan de Oro Gardens (Cagayan de Oro City)

 Greenhills Memorial Park
 Divine Shephed Memorial Park
 Golden Haven Memorial Park 8

B. Ma. Cristina Gardens (Iligan City)

 St. Michael Park
 there exist public and several Chinese cemeteries but these are not considered significant
competitors

C. Zamboanga Memorial Gardens (Zamboanga City)

 Forest Lake Memorial Park
 Ayala Public Cemetery
 Chinese Cemetery
 Lund Memorial Park
 Golden Haven Memorial Park

D. North Zamboanga Gardens (Dipolog City)

 Century Memorial Park
 Millenium Cemetery (this was foreclosed by a government bank and appears as not being
effectively marketed)
 Gulayon Public Cemetery

E. Ozamiz Memorial Gardens (Ozamiz City)

 Malindang Memorial Gardens
 Ozamiz Chinese Cemetery
F. Mt. Apo Memorial Gardens (Davao City)
 Davao Memorial Park
 Buhangin Memorial Park
 Toril Memorial Park
 Forest Lake Memorial Park
 Manila Memorial Park
 Calinan Memorial Gardens

G. Pryce Gardens, CDO-Manolo Fortich (at junction of CDO and Bukidnon)

 three small public cemeteries located in Bugo, Agusan & Tablon
 the private cemeteries in the city of Cagayan de Oro City, Golden Haven and Divine
Shepherd, although remote, may also be considered competitors
 Damilag Cemetery in Bukidnon

H. Pryce Gardens – Malaybalay (Bukidnon)

 Shepherd Meadows Memorial Park
 Valencia Memorial Gardens

I. Pryce Gardens – Malita (Davao Occidental)

 Backyard interment
 Inaburan Public Cemetery

J. Pryce Gardens – Bislig (Surigao del Sur)

 Bislig Public Cemetery
 Abaya Memorial Park
 Salazar Memorial Park

K. Pryce Gardens – Alabel (Sarangani)

(most ‘competitors’ are some distance away in General Santos City)
 Forest Lake Memorial Park (Apopong, General Santos City) 9
 Monte Cielo Memorial (Conel, General Santos City)
 Holy Trinity Memorial (Polomolok, South Cotabato)
 Spring Public Cemetery
L. Pryce Gardens – Pagadian
 Chrysanthemum Memorial Garden (Barangay Tiguma)
 Pagadian Memorial Park (Barangay Paglaom)
 Pielago Memorial Park (Barangay Paglaom)
 Pagadian Public Cemetery (Barangay Paglaom)

M. Pryce Gardens – Butuan

 Uraya Memorial Gardens

C. The Threat of Substitutes

The company's operations are focused in Mindanao, where it is involved in the building
of memorial parks as well as the selling of memorial lots. The Funeral Services Industry is
frequently portrayed in a negative light, although the products and services it provides are vital.
Individuals might benefit from investing here despite the morbid nature of the company. This is a
well-established industry. The mortality rate, incremental price hikes, product mix, and broader
economic conditions all influence revenue. Sales of interment rights, burial and memorial items,
as well as grounds upkeep, are all part of cemetery business. An interment right provides a
consumer with a burial plot and ongoing maintenance.
The level of the threat of substitutes is moderate because just as the living require a place
to live, so do the dead, who would need to be given their own space. Cemeteries and memorial
parks originated from a government endeavor to provide a place for the deceased to be interred.
Memorial lots are the only traditional option to bury the deceased in an area for underground
interment as Pryce Gardens offers various types of lots which are lawn lot, garden lot, family
estate, and bone transfer lots. However, there is a burial alternative aside from the traditional
underground burial which became known during the pandemic which is cremation. The
Philippine government mandated the families of the deceased to burn the remains of their loved
ones who acquired and tested positive for having the Covid-19 Virus within 12 hours after death.
Using disease transmission as a justification for quick and compulsory cremation is based on
misunderstanding, fear, and conjecture rather than science. The Philippines' opposition to
cremation must be understood in the context of colonialism's past policies, which linked the dead
with sanitary problems rather than veneration and remembrance, and associated fire with war,
oppression, and misery (Go and Docot, 2020).
 D. The Threat of New Entry

There are laws against such memorials due to public health concerns (e.g., Code on
Sanitation, P.D. No. 856), for that reason the Company continues to press the municipal office of
the affected region to enact a specific ordinance prohibiting such practice. These projects, like
any other real estate endeavor, are largely supervised and administered by the Housing and Land
Use Regulatory Board (HLURB) and adhere to the laws, regulations, and standards set out in the
current Subdivision Law by Presidential Decree No. 957. Other laws that govern the operation of
Memorial Parks and Cemeteries include Presidential Decree (P.D.) No. 856, the Sanitation Code;
Presidential Decree (P.D.) No. 1096, the National Building Code; Batas Pambansa Blg. 344, the
Accessibility Law; Republic Act (R.A.) No. 7277, the Magna Carta for Disabled Persons; Water
Code, and Electric Code, among others.

There would be an insignificant amount of possibility that other developers may build
their own memorial park, hence, the level of the threat of new entry is moderate because of the
limited market with many laws, regulations, and standards to be followed compared to other
prevalent industries in the Philippines. With the evolution of its growth into recreational grounds
where people can rest and children may play, the memorial park business has received a highly
encouraging, favorable patronage from all sectors. Today, memorial parks can be found in large
numbers in many cities and other metropolitan areas, and the need for such real estate
development has prompted many real estate developers to pursue such projects.

Pryce Corporation is engaged in acquiring, purchasing, leasing, holding, selling or otherwise dealing in
land and or real estate or any interest or right therein, as well as real or personal property of every kind
and description, including shares of stock in industrial, commercial, manufacturing and any other similar
companies. The Company operates through segments, which include real estate; liquefied petroleum
gases (LPG), industrial gases and fuels, and pharmaceutical products. The Company concentrates its
operations in Mindanao and is involved in the development of memorial parks and sale of memorial lots.
It owns and operates over 10 memorial parks in Mindanao's cities, including Cagayan de Oro City, Iligan
City, Ozamiz, Zamboanga City, Davao City, Malaybalay Ctiy in Bukidnon, Malita in Davao del Sur,
Bislig in Surigao del Sur, Alabel in Saranggani and Pagadian City.