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