Market reengineering strategy of traditional products in Thailand : case study of Thai silk industry | |
| Author | Preeya Patichol |
| Call Number | AIT Diss. no.DBA-SOM-13-03 |
| Subject(s) | Industrial marketing--Thailand--Management Strategic planning--Thailand Silk industry--Thailand |
| Note | A dissertation submitted in partial fulfilment of the requirements for the Degree of Doctor of Business Administration |
| Publisher | Asian Institute of Technology |
| Series Statement | Dissertation;no.DBA-SOM-13-03 |
| Abstract | This research indicated the implementation of market reengineering strategies by the silk producers in Thailand along value chain—from upstream, midstream to downstream silk industry. Silk is a traditional product that represents a heritage of Thailand’s cultural products for many decades. Although the silk industry has a long history and legend for many centuries, the world silk industry was shown by the international trade structure had changed obviously. At the same time Thai silk producers, especially sericulture farmers in Thailand deteriorated consecutively for many years. Nowadays Thailand’s silk business was pressured by the rapidly market changing. The consumer behavior and technology changing are driving forces of the challenges for Thailand’s traditional silk industry to cope with new competitors and overcome various obstacles in the dynamic global market. The grounded theory was drawn from the specific market reengineering strategies of Thai silk companies that show how they implemented those strategies to survive and sustain their businesses among new challenges. According to literature review, the research framework was developed to answer the main research questions, what are the important determinants affected on Thailand’s silk industry, what and how market reengineering strategies were implemented to bring Thailand’s silk industry can remain its market position and competitive advantage. This study was conducted by using international trade data, in-depth interviewing of the six leading Thai silk companies’ executives and relevant policy makers in both government and private sector, and then applied Porter’s Diamond Model to analyze and identify the key forces that required market reengineering strategies. The fact findings are indicated that the negative impacts on Thailand’s silk industry mainly are the factor conditions particularly the shortage of raw silk and traditional knowledge of silk producing by new generations and the rivalries from China, India, imitation of silk products and other modern textile products as well. However, the potential of silk’s supporting industry was also presented as the indication of positive forces, especially the consumer demand for trendy natural products which Thailand’s silk industry has the strength of natural dyeing material and continuously keep on identity of product designs. Moreover many measures were supported by Thailand’s government policy to create cultural value of the silk products over time. The implication of case companies’ strategies was illustrated that the market reengineering strategies led to satisfy consumer demand in four main areas—1) it is not only creating new products but also keeping traditional designs of products, and combining the traditional style with new fashion style; 2) accepting new technology to upgrade quality of products meanwhile preserving traditional knowledge, especially Thai pattern weaving technique to dominate unique products in niche market; 3) focusing on new potential consumers and also expanding new modern distribution channel for easier accessing; 4) developing the cluster of silk suppliers along value chain and enhancing silk producers for complementing each other instead of competing. However these strategies still need adapting for keeping market position to cope with the new changing environment over time by policy makers supporting. The analysis of the practical market reengineering strategies of Thai silk companies as mentioned above, can be pulled all the concepts of market reengineering strategies of Thai silk industry in all value chains (from upstream to downstream) in order to offer an explanation of the phenomenon (Goulding, 2004) as grounded theory. The findings of this study express core four categories of the market reengineering strategies along all value chains—1) upstream industry (cluster development) 2) midstream industry (technology development) 3) semi-mid and downstream industry (product development) and 4) downstream industry (distribution channel development). These strategies integrated with the existing market theories and extension of new concepts of specific market reengineering that found in this study are not only totally change to new market but also preserve the cultural value of industry as balanced old and new feature of silk industry. In addition, based on case companies’ analysis in this study can be categorized the market strategies into 2 groups. Firstly the aggressive strategies, this was found in a leading large company that has own upstream and midstream factories with high brand loyalty in global market, various strategies were improved to strengthen already reputable brand by launching the new innovative products continuously. Secondary the responsive strategies were found in another large company that has conservative Thai brand, some midstream companies, and the trading companies or retail shops which have no own factories as well as the cottage silk industry. These companies’ strategies respond the slow market growth by only sustaining their earnings with their traditional customers’ loyalty and the reputation of pure Thai silk as well. In-depth research of the six case companies integrated with the opinion survey in the relevant organizations of Thai silk industry can be illustrated four core categories of the interesting implications of market reengineering strategies. This can contribute to various stakeholders, such as the silk companies, the policy makers and the marketers to implement these strategies for developing the Thai silk market. Furthermore, this study may be guidance for other similar traditional industries, particular cultural and artifact industries in both Thailand and other Asian countries to extent this research in the future. |
| Year | 2013 |
| Corresponding Series Added Entry | Asian Institute of Technology.Dissertation;no.DBA-SOM-13-03 |
| Type | Dissertation |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Doctor of Philosophy in Business Administration (Publication code = DBA-SM, SM) |
| Chairperson(s) | Johri, Lalit M. (Co-Chairperson);Winai Wongsurawat (Co-Chairperson); |
| Examination Committee(s) | Donyaprueth Krairit;Routray, Jayant Kumar; |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2013 |