The steel industry continuously evolves and improves to stay competitive in the market by creating new and enhanced steel grades and production procedures. These advancements result in superior products that are more economically viable. Steel is essential for promoting economic growth as it is used in infrastructure, construction, transportation, machinery, and consumer goods.
The Thai steel industry is a vital component of the country’s economy and is highly agile. However, it faced significant challenges during the economic downturn in 2005. Following this decline, Thailand became a member of the ASEAN group in 2007, leading to an increase in exports from 2.3 million tonnes to 2.79 million tonnes. Furthermore, Thailand emerged as Japan’s primary importer of iron and steel products, with a total import volume of 4 million tonnes in 2007. From 2005 to 2008, the Thai steel market witnessed an average annual growth rate of 16% in terms of steel consumption.
During the past three years, the economic crisis has had a significant impact on the industry. Overall growth has declined, limiting companies’ expansion and investment efforts. Consequently, there has been a decrease in building assets, hindering the industry’s ability to attract more investment and expand further. Furthermore, the steel roof for ordinary factory segment is confronted with challenges including intense price competition from similar products in the market. Moreover, low entry barriers facilitate easy entrance into this industry for individuals interested in joining.
The challenge faced by the high-end used segment of the industry was the scarcity of customers compared to the ordinary factory segment. This is because customers in this segment prioritize product quality over price. However, the number of customers in this segment is limited when compared to the ordinary factory segment. {draw:rect} (All graphs are shown in appendix) SV Metal World Company, established in March 2009 by Mr. Sukrit N. and Mrs. Vimolmas N., has a history of managing director roles at Napoom Engineer Company, SV Electronic Company, Siam Color Sheet Company, and Permsin Steel World Company Limited.
Now, SV Metal World Company and PJM Supply Company are the owners and operate in the NGV Gas installation business for cars. They have strengths in engineering techniques for building construction and possess extensive knowledge in this field to effectively communicate with and respond to customers. Their prices are lower than competitors because SV regularly compares rates and slightly decreases their prices to attract customers. The companies have a large customer base that places trust in their services.
Service – The company provides complimentary transportation for customers who purchase their exclusive product, which is not available from any other competitors. Moreover, they have a streamlined management system by leasing inventory and cutting costs. Nonetheless, the company’s limited product lines in comparison to larger competitors present a vulnerability. This could potentially jeopardize the company as they primarily focus on color metal sheet and engineering field. As a new player in this industry, it is challenging for them to compete with bigger rivals who have a larger budget for expansion and self-promotion. Additionally, establishing trust with new customers to sell their products proves to be difficult.
Both the government and public or private sectors could assist numerous firms by establishing training institutions focused on areas relevant to the desired qualifications of those firms. This training would be crucial for effectively pre-screening and preparing workers before they start working for the organization. Implementing such measures would greatly benefit companies by reducing the risk and costs associated with hiring employees, resulting in a win-win situation. Furthermore, this approach would generate significant revenue for the government, public, or private sectors involved.
Regarding the company in question, it is important to identify its greatest strength and determine how weaknesses can be transformed into strengths. This process should involve a thorough assessment of the weaknesses and devising strategies to convert them into advantageous attributes.
The company’s main strength lies in continuously improving its product quality and design to create uniqueness that differentiates them and satisfies customers. Our group identifies a weakness that the company can turn into a strength, which is the high cost of overhead expenses, including labor and machine costs. To address this, the company should strictly recruit employees based on qualifications, adhering to rules, regulations, and ethical practices while emphasizing creative thinking and excellent working skills to ensure an effective workforce. Additionally, the company should consider laying off unnecessary employees who do not contribute benefits, potentially based on their sales performance each year, in order to reduce costs.
In addition, the company can reduce the cost of the expensive machine by negotiating with suppliers and reaching mutually beneficial agreements. This will result in TSS getting a better price for purchasing the machine and materials. The company should also analyze the product lines that are not effective or generate low revenue compared to others. By cutting off these product lines, the cost of the machine can be reduced. The company needs to consider that user preferences for certain products can change over time, rendering some product lines ineffective. To save costs, it would be a better choice to sell off these machines rather than keeping them running without any benefits.
The company’s lack of reputation and absence of a website limit its ability to provide information to customers. To address this, the company should focus on expanding its distribution channels. This can include utilizing the internet to interact and inform customers, as well as increasing advertising in factory, house, and building magazines. It is important to note that the company specializes in metal sheet roofs.
Upgrading the product to a premium level with high quality and uniqueness can contribute to increased customer satisfaction and brand loyalty. This, in turn, can benefit the company by improving its positioning in the industry ranking and generating more revenue and market share. It is believed that implementing this strategy plan will lead to the success of the organization.
The obstacles our group may encounter in successfully utilizing Nano technology relate to the current lack of successful companies that can effectively apply this technology to coating metal sheets to enhance durability. This is primarily due to a deficiency in worker expertise and entrepreneurial knowledge. To achieve success in this area, a company would need to incur substantial costs in research and development (R&D) to develop and innovate this Nano technology. The cost associated with this endeavor could be quite significant, making it feasible only for well-established, renowned companies that specialize in research and are willing to take on the considerable risk of potential failure.
Furthermore, an additional issue is that the research project proposed by the company necessitates obtaining cooperation from the government or other sectors. However, acquiring this cooperation proves challenging in reality. These sectors may want significant benefits in terms of substantial financial incentives if the research is successful. Alternatively, they may be hesitant to collaborate with the company due to the high risks associated with investing, as they must evaluate the project’s chance of success. Consequently, they may decline cooperation, fearing significant losses from their investment. It is crucial to analyze an unsuccessful company’s weaknesses and determine why they failed. Comparisons can then be made with successful companies in the same industry to identify similarities and differences. SV Metal World Company is an example of a company that has been unsuccessful in its business endeavors.
The weaknesses of SV Metal World Company are that it is a new comer in the industry, having started its business less than 1 year ago. As a result, its performance may be relatively low. Another weakness is that the company does not have a production factory for processing its metal sheet products. However, SV Metal World is similar to successful companies in the industry in that it outsources materials from the same locations. The main difference is that SV Metal World does not have its own production factory, unlike the successful companies who all have their own factories for producing and processing their products. Consequently, SV Metal World has to hire another company to process its products for sale, which is inconvenient and more expensive.
By studying both successful and unsuccessful companies, important insights can be gained. Our group has identified that achieving success in business is challenging and requires the accumulation of real-life experiences and knowledge. This process promotes the growth of innovative thinking, which is crucial for overcoming any obstacles a company may face. Making informed decisions based on past experiences plays a key role in a manager’s journey to success. Through extensive experience in handling various situations, a company develops the capability to create an impactful marketing strategy that increases the likelihood of achieving success.
Having experiences and developing effective marketing strategies are crucial for companies to succeed in their business. Time plays a significant role as it is necessary to build a good image, create brand loyalty with customers, and establish trust. Gaining the trust of a large customer base can lead to success. However, neglecting experience collection or hastily specifying marketing strategies and expanding aggressively without sufficient time can be extremely risky and may result in bankruptcy.
Imagine you are a consulting company that has chosen an unsuccessful company in the same industry. Your objective is to develop a marketing plan that can help this company become the market leader.
Our group proposes that SV Metal World Company enhance its brand recognition by enlarging its customer base and reaching a wider audience. To accomplish this, the company can advertise through multiple media channels, including its website, newspapers, and construction magazines featuring metal sheet information. Such advertising efforts will educate customers about our company and generate interest. If this marketing strategy proves successful, it will greatly contribute to the company’s future success and operational efficiency.
Our group recommends ways to improve the performance of SV Metal World Company, a struggling business. These include expanding the customer base, adding more product lines, providing additional after-sales services, and reducing unnecessary costs. This may involve enhancing logistics efficiency for faster transportation or increased carrying capacity to save money. The company should also prioritize developing attractive packaging to attract more customers and boost sales. These recommendations have implications for the next three years.
The implications of these recommendations over the next three years for our group could include the company experiencing business growth and expanding its distribution channels. Additionally, the sales revenue could see a significant increase, as well as the profit from selling products per unit. Furthermore, there could be an increase in market share.
Furthermore, by enhancing the brand image, SV Metal World can establish itself as a reputable brand. This will ultimately foster loyalty among customers, thereby strengthening the company’s position in the business. With the proposed plan for development, SV Metal World can undoubtedly improve and excel beyond its current standing.
