A friend recently forwarded an article from a local analyst analogizing the supposed “tale of the tape” in the coming boxing match between world champion and local politician Manny Pacquiao and challenger Antonio Margarito with that of Henry Sy companies vis-a-vis the Ayala Group.
Here is my edited/revised comment to my friend:
I'd say that Sy and Ayala is an apples to oranges comparison whether seen from property, banking or as holding company.
The Sy Group for instance owns the distinction of having 3 out 10 largest malls in the world (Forbes magazine) [11th is also from SM], that's because his malls cater to mostly mid-class markets, whereas Ayala's malls cater to higher end markets.
Besides Ayala doesn't compete in the mass production of malls.
This applies with banking too. BDO seems to be anchored on mall based clients, whereas BPI has been more traditional way of banking.
Even in management they differ too. Mr. Sy’s companies appear to be more family managed/oriented, in spite of the recently acquired financial heft, while the Ayala group seems to be more professionally or reliant on ex-family based managers.
As an analyst I don't see Sy and Ayala as worthy comparisons.
In our lingo, we call them specialization. Each of these companies specializes on what serves them best.
Of course another important misleading analogy is the comparison of business and sports.
Sports has a specific outcomes (win or loss at a given time frame or period) while businesses signify as a continuing process.
Besides businesses provide good or services that adds value to the company’s respective customers, which alternatively means businesses are NOT zero sum games, where one wins at the expense of the other.
Whereas only one protagonist will emerge as winner in the coming Pacquiao-Margarito match.
No comments:
Post a Comment