There are many factors that we need to consider when starting up a business. If one would like to be proficient in this field, it would take more than experience, knowledge, and strategies. Even exceling in business courses cannot guarantee you of success as a businessman. We have seen how big business rise and fall. And I guess we can agree that this is true: there is no guaranteed formula in business. We need to understand that every business if different from one another and they would need unique set of rules, regulations, and business plans to set everything rolling. Even the careful study of data, figures, and economic trends can only be used guides in plunging in to this complex world of business.
Business opportunities, target market, and business location are just some of the important factors that a person venturing in business needs to know. But for today we are drawing your attention to one of the easily ignored factor in business: topography.
We might have all heard about topography in our science and geography classes and yes, it is what you think it is: the arrangement of the natural and artificial physical features of an area. More than being a term we’ve heard in academic classes, topography plays a big role in strategizing for business. But before we go down into the details, let us break down the physical features of our country, the Philippines.
The Philippines is the largest archipelago in the world that is found in the southeastern coast of the Asia mainland. Philippines is surrounded by water in which in the east by the Pacific Ocean, on the south by the Celebes Sea, and on the west and north by the South China Sea. The country consists of 7,107 island and islets. Only 2000 of these islands are inhibited. The populated and mountainous islands are grouped into three: Luzon, the biggest island group, covers 141,395 square kilometers; Visayas, 56,606 square kilometers; and Mindanao, 102,000 square kilometers. Other main islands are Samar, Negros, Palawan, Panay, Mindoro, Leyte, Cebu, Bohol and Masbate.
Ever wondered what the oil price hike has got to do with the prices of other products? It is because consumers also pay for the expenses companies allot for distributing/moving their goods. And seeing how this works, we can say that any mountains, plains, desserts, and bodies of water can aid or hinder a business. The Philippines, being an archipelago, is surrounded by bodies of water. There are a handful of businesses that can really take advantage of this like sea freights, sea cargo services, etc. But for businesses that depend on the distribution of their products and service for profit, this could be a problem. Distributing to all the corners of the country would be costly since it will be necessary to partner with an air freight or sea freight company to be able to cross regions and distribute to other parts of the country. This could limit the potential of small scale businesses, farmers, and fishermen especially those who cannot afford freight services.
Realizing how topography can make or break a company, a smart businessman can come up with a sound business plan or solution that can take advantage of hurdles of Philippines’ topography. Running a business is all about strategy, and the more you understand about the things around you, the further you can go.
This article is brought to you by Metro Combined, a top of line logistics provider and freight forwarder in the Philippines.
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