HISTORY

1
PRESENTATION
2
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.
3
DEVELOPMENT AND GROWTH
1989 20- million- baht capitalization
1994 Increasing to 3.55-billion-baht
capitalization
Present 6.3-billion-baht capitalization
4
Operation

• Quantity Sales growth every year

• Continuously developed products

• Expanding capacity

• Creating relationship with other suppliers

5
FIVE FORCES ANALYSIS
6
(No Transcript)
7
SUPPLIERS POWER
- Eucalyptus plantations on a commercial scale
- Contract farming
- Single chemistry supplier
8
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

9
THREAT FROM NEW ENTRANTS

• High capital to invest
• China,Vietnam slowly go into pulppaper industry

THREAT FROM SUBSTITUES

• Synthetic pulp and other pulp
• Digital , Electronic devices

10
BUYERS POWER
Domestic B2B B2C
International
11
SWOT ANALYSIS
STRENGTH

• Resource owner (Eucalyptus, Power Plant)

- Product differentiation and Brand loyalty
- Strategic Alliances
12
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
13
OPPORTUNITY
- High growth rate from expanding education and
publication industry
- Supporting to use more papers in some activities
- Advantage of Cash flow
14
THREAT
- Limitation of Production technology
- Excess supply in Thailand
- Importing some raw materials
- pulp and papers world market price
- Fluctuation of exchange rate
15
PULP PCKG KRAFT
PAPER
COATED UNCOATED
SHORT LONG
H.Q REUSE
Laminated
None laminated
? ? ?
? ? ?
IN OUT
Market Segmentation
16
INDUSTRY STRUCTURE
DOMESTIC Major competitors,Finex taken over by
SPPC which sells
Papers Kraft Packaging etc.
Minor competitors
Producing pulp and papers
17
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
18
INDUSTRY EVOLUTION

Intro
Growth
Checkout
Maturity
Decline
19
SCENARIO ANALYSIS
VARIABLE FACTORS
DEMAND
Technology Value
INTERNAL FACTORS
EXTERNAL FACTORS
Economics
20
SUPPLY
INTERNAL FACTORS
Competitors Law Regulations
EXTERNAL FACTORS
Free Trade Area
21
INTERESTING
YES
DOMESTIC
Higher in Demand Barrier to entry
INTERNATIONAL
Excess supply in Thailand
22
GOOD
STABLE
BAD
? ? ?
? ?
? ?
?
ECONOMICS
TECHNOLOGY
TRADE POLOCIES
COMPETITORS
23

• Results from cases
• 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

24
Corporate Strategy
Core business
Producing pulppapers 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
25
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
26
Functional Strategy
Marketing
Various brands
Increasing numbers of copy center
Positioning products Premium
Promotion Retailers and consumers
RD
27
Production
Computerized production TQM RD
Financing
Low interests effecting to low costs
HRM
Recruitment Training
Orientation Evaluation by MBO
Good compensation
28
Strategy Analysis
1.International Strategy suitable for the
business environment with the following condition

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

• More Exporting because of the over supply

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

29
2.Business Boundary Expansion Strategy

• Suitable for the Environment in Local Market
• More product development to meet the vary demand
  of consumers

30
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.
31

M
A
VALUE CHAIN
R
POWER PLANT
G

RESEARCH DEVELOPMENT EUCALYPTUS
I
TRANSPORTATION SERVICE, WHOLESALE, AND RETAIL
HUMAN RESOURCE MANAGEMENT
N
COMPUTER FOR PRODUCTION PLANT
EUCALYPTUS
MARKETING
N
- COPY CENTRE
PAPER PULP
I
- ADVERTISING
PRODUCTION
KINDS OF PAPER
LONG PULP
- BOOT
G
- SALE PROMOTION
CHEMICALS
- RESEARCH
R
A
M
32
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.

33

• 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

34
THE END
35
PRESENTED BY
Mr. Srimontri Deevicha
ID.4202612588 Mr. Klanarong Petra
ID.4202612711 Mr. Chanatip
Pisutthisup ID.4202620011 Miss
Patcharawan Muangkrung
ID.4202680023 Miss Bhasinee
Jirasavetakul ID.4202680072 Miss Pisinee
Mungkornkarn ID.4202680114 Miss
Mali Vithayasritada
ID.4202680437 Miss Thanissara Udomsuk
ID.4202680734
Instructor's name
Ajarn Wai Chamornmarn