Ateneo Professional School
Makati City
June 18, 2016
Last June 14 2016, a senior manager of a smartphone remanufacturing plant in Laguna presented his company (he was one of the prime movers of the company) for his strama defense. It was a passionate moment for him, because he was one of the fathers of the company. Their company is just one of the cellphone remanufacturing plant in the world. What is remarkable, is that this an entirely new thing and the founders and most of them finished their MBA all ready were orchestrated by a man to put together such a facility. They encouraged the CP repairers in Cubao, Greenhills, Quiapo, to get together move to Laguna and do this is a group in big, organized and corporate way. They make big money by making as much as $20 to $30 per cell phone. and they do hundreds of thousands of that yearly.
This is very entrepreneurial. In the process they created 2,400 jobs (from mere 500 5 years ago
For the plant, their big opportunity is how to turn the damaged CP in 7 days or less, save costs on the parts and labor, being more efficient and lean.
But the big opportunity is on the mother company which is the phone reinsurer. They have 120 milli9on subscribers paying $9.99 monthly or for a whopping total revenue of $14.4 billion. These are included in their phone bill. The claims amount to only 0.5% of the total. And these means gravy of about 99.5% for the insurer. Wow
The mother company needs the remanufacturing plant to save costs, and so that there more value added for the margin, price differential
