Transcript Document
HISTORY 1989 Advance Agro Co,Ltd. Incorporated 1994 Becoming Advance Agro Public Co,Ltd 1996 Export and Further 2nd Factory 1998 Joined with Enso Group Co,Ltd and Oji Paper Co,Ltd. DEVELOPMENT AND GROWTH 1989 20- million- baht capitalization 1994 Increasing to 3.55-billion-baht capitalization Present 6.3-billion-baht capitalization Operation • Quantity Sales growth every year • Continuously developed products • Expanding capacity • Creating relationship with other suppliers Threat from New Entrants Suppliers’ Power Rivalry of Firms Threat from Substitutes Buyers’ Power SUPPLIERS’ POWER - Eucalyptus plantations on a commercial scale - Contract farming - Single chemistry supplier RIVALRY OF FIRMS -In Local ; Price competitiveness - Less domestic competitors -Using world market price for foreign competitors -In foreign market,there are their own producers THREAT FROM NEW ENTRANTS -High capital to invest -China,Vietnam slowly go into pulp&paper industry THREAT FROM SUBSTITUES -Synthetic pulp and other pulp -Digital , Electronic devices BUYERS’ POWER Domestic : B2B & B2C International STRENGTH -Resource owner (Eucalyptus, Power Plant) - Product differentiation and Brand loyalty - Strategic Alliances WEAKNESS - No bargaining powers in some raw materials - Loans from foreign bank - Higher price compared with other competitors - For export, technology effecting to high costs OPPORTUNITY - High growth rate from expanding education and publication industry - Supporting to use more papers in some activities - Advantage of Cash flow THREAT - Limitation of Production technology - Excess supply in Thailand - Importing some raw materials - pulp and papers’ world market price - Fluctuation of exchange rate PULP PCKG KRAFT PAPER COATED SHORT IN OUT LONG Laminated None laminated UNCOATED H.Q Market Segmentation REUSE INDUSTRY STRUCTURE DOMESTIC Major competitors,Finex taken over by SPPC which sells : Papers Kraft Packaging etc. Minor competitors : Producing pulp and papers FOREIGN MARKET Major Competitors : Hong Kong ,China, Malaysia,Taiwan, Singapore,Australia such as Svensaka Cellulosa Aktiebolaget Company Minor Competitors : USA, Europe such as UPM-Kymmene Company 90 80 70 60 50 40 30 20 10 0 * Intro Growth Checkout Maturity Decline VARIABLE FACTORS : DEMAND INTERNAL FACTORS : Technology Value EXTERNAL FACTORS : Economics SUPPLY INTERNAL FACTORS : Competitors Law & Regulations EXTERNAL FACTORS : Free Trade Area INTERESTING : YES DOMESTIC : Higher in Demand Barrier to entry INTERNATIONAL : Excess supply in Thailand GOOD STABLE ECONOMICS TECHNOLOGY TRADE POLOCIES COMPETITORS BAD Results from cases 1. Best Case : Expand capacity and Product line, Set up the factory in foreign countries 2. Moderate Case : Increasing the distribution channel, Build brand image 3. Worst Case : Decreasing capacity, Promotion, Emphasizes on finding new channel Corporate Strategy Core business : Producing pulp&papers to sell in domestic and to export Business Boundary Expansion Strategy : After opening the Copy Center, continuously expanding product line focusing on new target improving skills training how to plant eucalyptus International Strategy Business Strategy Mission : Producing the best quality of papers in Thailand Differentiation : Better quality of products Better image,resulting from advertisements and PR New Channel from Copy Center Functional Strategy Marketing : Various brands Increasing numbers of copy center Positioning products “Premium” Promotion – Retailers and consumers R&D Production : Computerized production TQM R&D Financing : Low interests effecting to low costs HRM: Recruitment Training & Orientation Evaluation by MBO Good compensation Strategy Analysis 1.International Strategy: suitable for the business environment with the following condition •More Exporting because of the over supply • Hard to establish the production base in other countries (less ROI,entry barriers,supplier and technology competitive) • Unnecessary to establish foreign base (the channel of distribution through the joint company) 2.Business Boundary Expansion Strategy Suitable for the Environment in Local Market • More product development to meet the vary demand of consumers 3.Differentiation Suitable for the Environment • The attitude about paper of consumers lead to price competitiveness • With price competitiveness ,the competition will not be sustainable Conclusion As all the strategies of Double A are suitable for the current environment. M A R POWER PLANT RESEARCH & DEVELOPMENT EUCALYPTUS TRANSPORTATION SERVICE, WHOLESALE, AND RETAIL HUMAN RESOURCE MANAGEMENT COMPUTER FOR PRODUCTION PLANT EUCALYPTUS PAPER PULP PRODUCTION KINDS OF PAPER LONG PULP CHEMICALS G I N MARKETING - COPY CENTRE - ADVERTISING - BOOT - SALE PROMOTION - RESEARCH N I G R A M Recommendation •In case of the long distance of exporting can cause more expensive price than the local firms,so AA should increase the channel by making contracts with new agents in foreign countries. • Build brands in foreign countries through agents,if it works and worth,AA should joint with suppliers there and further the factory or being as their pulp supplier. • In local, Should expand copy center in other provinces. • The company has business risk by the foreign loan which resulted in money fluctuation,so AA should make a forward contract. • Expand the office, but most of jobs are in BKK office Mr. Srimontri Mr. Klanarong Mr. Chanatip Miss Patcharawan Miss Bhasinee Miss Pisinee Miss Mali Miss Thanissara Deevicha ID.4202612588 Petra ID.4202612711 Pisutthisup ID.4202620011 Muangkrung ID.4202680023 Jirasavetakul ID.4202680072 Mungkornkarn ID.4202680114 Vithayasritada ID.4202680437 Udomsuk ID.4202680734 Ajarn Wai Chamornmarn