presentation history 1989 advance agro co,ltd. incorporated

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 Substitutes

Suppliers’ Power

Threat from New Entrants

Buyers’ Power

Rivalryof

Firms

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

IN

OUT

COATED UNCOATED

Laminated None laminated

Market Segmentation

SHORT LONG H.Q REUSE

PULP PCKG KRAFT PAPER

INDUSTRY STRUCTUREINDUSTRY STRUCTURE

DOMESTICMajor competitors,Finex taken over by SPPC whichsells : Papers

KraftPackagingetc.

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

010

2030

4050

6070

8090

Intro Growth Checkout Maturity Decline

*

VARIABLE FACTORS :

DEMAND

INTERNAL FACTORS : TechnologyValue

EXTERNAL FACTORS : Economics

SUPPLY

EXTERNAL FACTORS :

INTERNAL FACTORS : CompetitorsLaw & Regulations

Free Trade Area

INTERESTING : YES

DOMESTIC : Higher in DemandBarrier to entry

INTERNATIONAL : Excess supply in Thailand

GOOD STABLE BAD

TECHNOLOGY

TRADE POLOCIES

COMPETITORS

ECONOMICS

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

After opening the Copy Center,continuously expanding product line focusing on new targetimproving skills training how to plant eucalyptus

International Strategy

Business Boundary Expansion 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 productionTQMR&D

Financing : Low interests effecting to low costs

HRM: Recruitment Training & Orientation

Evaluation by MBO Good compensation

• Hard to establish the production base in other countries (less ROI,entry barriers,supplier and technology competitive)

1.International Strategy: suitable for the businessenvironment with the following condition

•More Exporting because of the over supply

• Unnecessary to establish foreign base (the channel of distribution through the joint company)

Strategy AnalysisStrategy Analysis

2.Business Boundary Expansion Strategy

Suitable for the Environment in Local Market• More product development to meet the vary dema

nd of consumers

3.Differentiation

Suitable for the Environment• The attitude about paper of consumers lead to pric

e competitiveness• With price competitiveness ,the competition will n

ot be sustainable

Conclusion

As all the strategies of Double A are suitable for the current environment.

POWER PLANT

TRANSPORTATION SERVICE, WHOLESALE, AND RETAIL

HUMAN RESOURCE MANAGEMENTCOMPUTE R FOR PRODUCTION PLANT

RESEARCH & DEVELOPMENT EUCALYPTUS

EUCALYPTUS

PAPER PULP

LONG PULP

CHEMICALS

PRODUCTION KINDS OF PAPER

MARKETING- COPY CENTRE- ADVERTISING

- BOOT- SALE PROMOTION- RESE

ARCH

M

A

R

G

I

N

N

I

G

R

A

M

RecommendationRecommendation

•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 Deevicha ID.4202612588Mr. Klanarong Petra ID.4202612711Mr. Chanatip Pisutthisup ID.4202620011Miss Patcharawan Muangkrung ID.4202680023Miss Bhasinee Jirasavetakul ID.4202680072Miss Pisinee Mungkornkarn ID.4202680114Miss Mali Vithayasritada ID.4202680437Miss Thanissara Udomsuk ID.4202680734

Mr. Srimontri Deevicha ID.4202612588Mr. Klanarong Petra ID.4202612711Mr. Chanatip Pisutthisup ID.4202620011Miss Patcharawan Muangkrung ID.4202680023Miss Bhasinee Jirasavetakul ID.4202680072Miss Pisinee Mungkornkarn ID.4202680114Miss Mali Vithayasritada ID.4202680437Miss Thanissara Udomsuk ID.4202680734

Ajarn Wai ChamornmarnAjarn Wai Chamornmarn