An expansion strategy for Tan Mai Group Joint - Stock Company | |
| Author | Tran, Thi Ngoc Huong |
| Subject(s) | Tan Mai Group Joint - Stock Company--Management Strategic planning |
| Note | A project submitted in partial fulfillment of the requirements for the Degree of Master of Business Administration (Executive) in International Business – Management of Technology, School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | The rapid development of Viet Nam economic in the last decade leads to the growth of all industries, in which paper industry is a typical case. While the paper demand increases quickly, the domestic paper production companies develop slowly with the major products of low quality paper. Therefore, paper market becomes shortage of high quality paper and this is opportunity for foreign suppliers. Domestic paper companies need to have strategies to keep market share and control the nation paper industry. In this study, the PEST analysis was performed to understand current situations of government policy, economic state, social-cultural and technological factors. The analysis result showed that the improvement of market-economic policy resulted in great development of economy, leading the growth of cultural and social. Top class technologies on the world are not difficult to buy if the budged allows. Thus, present time is good for paper producers to invest in new products. Internal and external environments were analyzed to discover the strength and weakness of Tan Mai Group and recognize the opportunities and threats in the paper market. SWOT analysis was performed to find advantage and disadvantage of present situation for paper production expansion. SWOT matrix was built up and used to formulate the expansion strategies. Four strategies for developing Tan Mai Group in next ten years were created. The most strategic is S-O strategy which involves a big investment in construction new factory system to provide pulp for all Tan Mai paper factories and to produce high quality coated paper. The S-T strategy is to increase the competitiveness for Tan Mai product by purchasing new tech machineries and equipments to produce the top quality products. Thoroughly consideration in choosing the best financial solution for the big investment to limit risk and reduce bank interest is important in this strategy. Taking the advantage of favorable position to determine competitively lower price for new product is a strategic direction. Growth up the workforce and investing for human resource are the content of the W-O strategy. Tan Mai Group needs to prepare the labor strength for new factories, the brainpower for technical-scientific development, and human for a modern management mode to improve the company organization. Another important strategy must be done is the W-T strategy involved with setting up a marketing and advertisement system and establishing a distribution network. It is the weakness of Tan Mai Group in the past and present so it needs to be developed from now on. The marketing strategy is necessary for new product to go in to market successfully. It put a high quality product to the right level. It will print Tan Mai name to consumer’s mind. The distribution network broaden from the North to the South will help Tan Mai to capture immediately the variation of market, quickly supply product to local consumer, control the price of paper in Viet Nam market, and bring Tan Mai product to foreign market. All the four strategies have interactive relation and should be initiated at appropriately scheduled time and run synchronously to guarantee the success of the whole expansion strategy. |
| Year | 2010 |
| Type | Project |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Winai Wongsurawat; |
| Examination Committee(s) | Juthathip Jongwanich;Tritos Laosirihongthong; |