Steel Industry in Thailand

The steel industry is a dynamic, innovative sector, which is constantly adapting and refining itself to become more competitive in the market. The industry does this by developing new, improved steel grades and production procedures that produce better and more cost-effective product lines for changing marketplace. Steel is a key material in promoting economic growth as it is critical in the creation of infrastructure, construction material, building, transport, machinery and consumer goods.

Thai steel industry is very sensitive and plays an important role in the Thai economy, but in the year 2005, the decline of Thai economic has an effect to the steel industry as the following: After the declination of Thai economic, at the year 2007, Thailand’s had decided to join the ASEAN member. After being one of the ASEAN members, it makes the export to 2. 79 million tonnes, up from 2. 3 million tonnes. And Thailand was the largest importer of iron and steel products from japan with total volume of 4 million tonnes in 2007. Thai steel market 2005-8, with an average steel consumption growth of 16% a year.

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The overall in past 3 years, the industry quite be affect by the economic crisis. The economic growth has decreased all industry to limit their expansion and investment which lead to less building in the asset. This made the overall industry stayed still not growth which made the industry could not expand and more in investment. For the steel roof for ordinary factory segment, the problems that the industry faced are the high price competitive due to the similar in the product. Also, another problem is the low entry barriers which can make other people who interested in the industry come in so easily.

For the high –end used segment, the problem that industry has faced was fewer than ordinary factory segment because customer would focus more on the quality of the product than the price. However, this segment has limited in the number of customers due to the smaller number when compare with ordinary factory segment. {draw:rect} (All graphs are shown in appendix) SV Metal World SV Metal World Company was established in March 2009. The establishers are Mr. Sukrit N. and Mrs. VimolmasN. They both had been Managing director of Napoom Engineer Company, SV Electronic Company, Siam Color Sheet Company and Permsin Steel World Company Limited.

Now, they are owners of SV Metal World Company and PJM Supply Company which do business in field of install NGV Gas for cars. SWOT Analysis Strengths Service of engineering technique in building construction and have deeper knowledge in this field to talk or answer to customers. Lower price than competitors because SV always check the price rate with other competitors and set price lower a little bit to make customers interested in their product and service. They have a lot of existing customers that trust with their company.

Service – Free transportation for customers who order the company product that no other competitors do like this. Less complex management because they rent inventory and reduce cost for company. Weaknesses Fewer product lines when compares with big competitors so it may cause risk to company because they concentrate only color metal sheet and in engineering field. It is a new company in this industry so, it hard to fight with big competitors that have a lot of budget to expand or promote itself also hard to gain trust from new customers to buy their product.

The government, public or private sectors could play a role as helper to help many firms by build the institution of training people in specific areas that related to the needed qualification of many firms to be the basic screening and scanning of the workers to preparing before work in the organization that could be effective to the company to take lower risk to hiring the employees in ways of waste time and money and it is win-win situation that the government public or private sectors could gain benefits of high revenue from that. What is the company’s greatest strength? Which weaknesses would you recommend that company attempt to convert into strength? How might these weaknesses be converted?

The company’s greatest strength is continually in improving in its product quality and design to be uniqueness that different to each other to satisfy the customers. The weakness that our group recommend that the company can attempt this point to convert into strength is about the high cost in overhead for both labor cost and machine cost, the company should recruit the employees with strictly due to qualifications, rules and regulations and ethical ways that could come with creative thinking and excellent in skills of working to get the most effective employees. Furthermore, the company should layoff some unnecessary labors that are not create any benefits by determine from the sales performance of that employees maybe each year to cut cost.

In addition, in the machine cost which is high, the company can find the way to reduce cost by negotiate with the suppliers to make more appreciated agreements that take benefits to both sides to make TSS get better price of purchasing the machine and also the materials and the company should determine the product lines that ineffectively or boost low volume of revenue when compare to the others by cutting off to reduce the cost of machine because some product trend of the users could change all the time and that it affects some product lines to be ineffective anymore, so to be save the spending, cut off some machine and sold to the others might be better choice than keep or remaining run it that take cost without take any benefits.

The company has less information to serve its customer as the company has less reputation and no website to inform customers. Therefore, the company should have more distribution channels contributing to customers such as using internet to interact and inform with the customers, more advertising on factory, house, and building magazine. As the company is an expertise in metal sheet roof.

All of these things could increase the customer’s satisfaction and could build the brand loyalty to the customers that it affects to be the benefits to the company to make the product be upgrading to be premium with contain high quality and uniqueness that result to be better to the company to get better positioning in the industry ranking and the company can get more revenue and market share from the uniqueness of product that we confident that this strategy plan could make the organization to become more successful.

The stumbling blocks that our group could faced to use the Nano technology to be successful is about at currently, there are none companies that can be successful in using this Nano technology in the way of coating metal sheet to make more durable because the knowledge of the workers or the entrepreneurship are not expert so that to be successful, the company has to take very high cost in R&D development to invent this Nano technology which could be very huge amount that maybe this cost could be affordable only the large companies which are famous to invest in research which also take high risk to be failed.

In addition, another problem is that the company that would like to take this project research has to get the cooperation from the government or other sectors that for the real situation, it is hard to get the cooperation from these sectors because they could want the benefit about the huge amount of incentive in the formula with huge amount of money if this project research is successful or another reason is that to be cooperate with the company, these sectors have to take risk on investment, so they could determine from the realistic that it could be successful or not? If not, they could reject of the cooperation which can take high risk for them to get huge loss from investing. Select an unsuccessful company and find out what its weakness and why do they fail. In what respects are they similar to or different from successful company in the same industry. SV Metal World Company is the company that unsuccessful in the business.

Its weaknesses are that the company just in the first period of operation which positioning in the new comer that it just begin to start the business only less than 1 year that the performance could be relatively low and other one is that the SV Metal World Company does not have the production factory to produce its product to be processed as the processed metal sheet. The things that SV Metal World is similar to the successful company in the same industry is its company has outsourcing the materials in the same locates like other companies but the point that SV Metal World different to the others that are successful companies is that SV Metal World Company does not have any production factory to produce its processed metal sheet, so that it has to hire other company to processed its products to sell that is inconvenience and take higher cost that different to the other companies that all of them have their own factory to producing its product lines and processed.

What lessons can you learn from your analysis of these successful and unsuccessful company and their strategies? Our group can learn that to make the companies to be successful in the business is not easy. It could to collect the experience that have knowledge to applied for using in the real situation that after that it could create creative thinking to handle to any situations of the company by decide from experience to make the decision. After the manager of the company have many experiences to handle in all situation then to be successful, the company could have the abilities to specify the marketing strategy which it could be effectively to be successful.

Furthermore, we learn that when the companies have experiences and can specify effective marketing strategy, the thing that could make the company success in its business is about the time that is very important factor because to get good image, brand loyalty from the customers have to take time to be growing up to create the credit from the customers that they could be trust which if we reach trust in large group of customers, it means that the company could become successful while if the company ignore to collect the experience, specify carelessly marketing strategy or be take only less time to try to expand its business with aggressively, it could be very risky to the company to be unsuccessful in the business that maybe it could take risk to bankruptcy afterward. Imagining you are consulting company, choose a unsuccessful company in the same industry and set the marketing plan that can associated to be the market leader.

Our group could suggest SV Metal World Company that the company could create high in brand awareness by expand customer’s base to access many customers that be opportunity to make company gain higher revenue and market share. The way to expand customer’s base may be use advertising through the effective media such as through website, through newspaper media or through the magazine about the construction that include the metal sheet to distribute the information and details of the customers to make them aware and understand more in our company which if the company success in this marketing plan, it could take the company to be successful in the next time with effectively in operating.

How can you improve the performance of unsuccessful company, and what are the implications of these recommendations over the next three years. Our group suggests the way to improve the performance of SV Metal World Company that is unsuccessful in business by Expand its customer’s base Expand more product lines Provide more after-sales services Cut some unnecessary cost that is not related to the selling such as improve the effective of logistic to be faster transportation or can carry more things in each time of transporting the products to save some cost The company should develop its packaging to attract the customers to buy.

For the implications of these recommendations over the next three years from expected of our group could be that the company could be growing up in its business with it could has more distribution channel. Furthermore, the sales revenue could be increasing dramatically, the profit from selling the products by calculating in each unit could be increase and the market share could be increase too.

In addition, the brand image could be improving to be good brand which in the next time afterward, it could create brand loyalty from the customers to the company that SV Metal World could be stronger in the business more than today for sure by the suggesting plan to develop the company to be better.

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Steel Industry in Thailand. (2018, Feb 27). Retrieved from https://graduateway.com/steel-industry-in-thailand/