A CASE STUDY OF DCON PRODUCT PUBLIC Co., LTD

HOW TO GROW PROFITABLY IN A DECLINING INDUSTRY?

DCON PRODUCT A leading manufacturer of a PRE-STRESSED CONCRETE PLANK with international quality management system (ISO 9001 version 2008)

CONSTRUCTION MATERIAL INDUSTRY is a SUNSET INDUSTRY

New Entrants

Bargaining Power of supplier

Bargaining Power of Buyers

Existing Competitors

Threaten of substitute

Top 3 in Thailand by 200 ranking in Asia Company, Forbs

OUTSTANDING COMPANY PERFORMANCE AWARDS rewarded by Stock Exchange of Thailand

Milli

on B

aht

0350700

1,0501,400

1997 1999 2001 2003 2005 2007 2009 2011 2013

1,3111,030

821739574

790682678664618369255172122796998

Sales income

DCON SALES INCOME

Profit, Stock price, Dividend yield

The founder of DCON has been in this business since 19841984

DCON built the factory to be the largest pre-stressed concrete plank in Thailand. DCON factory was located in Lopburi province, 120km. north of Bangkok, with the capacity of 160,000 square meter per month

1996

Near Bangkok Low cost of raw material Low price of landed Close to Cement Factory ( )

+ (, ,) 120 . .

( .) BOI 3

SET UP FOR ADVANTAGE

Asian financial crisis hit Thailand. Apply concrete technology by Separate mixing and fly ash replacement Design the innovative truck which reduced 20% of logistic cost. Keep the people

1997

COST CUTTING THROUGH OUT VALUE CHAIN USING

TECHNOLOGY AND INNOVATION

2000

2002

Adapt manufacturing capability to produce new product for difference target customers ()

DCON built the factory to be the largest pre-stressed concrete piles in Thailand for small building, with the capacity of 11,000 meters per day

DIFFERENTIATE DO PRODUCT THAT OTHERS DO NOT DO

2004DCON has raised the capital to 200 Million Baht and became a listes company in the Stock Exchange of Thailand (SET)

Expand to property business under the brand name of Orada as demonstration site

Expand plank business to Chiang Mai Expand to block business using CELLULAR LIGHTWEIGHT CONCRETE (CLC)

area

THINK BIG and EXPAND with synergy

2007-2009 The First PRE-STRESSED CONCRETE PLANK manufacturer in Thailand to be certified by ISO ERP system implemented

2005-2006 Subprime mortgage crisis hit Thailand.

Navision microsoft certificate iso

ENHANCE COMPETITIVENESS in the bad time

2010-2014 Expand the factory to nation wide Expand Orada to high rise condominium

200

THE ROAD AHEADlocation

move

EnergyE-commerce

AEC

CONSISTENT STRATEGIC THINKING

is THE KEY TO SUCCESS in any situation