A CASE STUDY OF DCON PRODUCT PUBLIC Co., LTD
HOW TO GROW PROFITABLY IN A DECLINING INDUSTRY?
DCON PRODUCT A leading manufacturer of a PRE-STRESSED CONCRETE PLANK with international quality management system (ISO 9001 version 2008)
CONSTRUCTION MATERIAL INDUSTRY is a SUNSET INDUSTRY
New Entrants
Bargaining Power of supplier
Bargaining Power of Buyers
Existing Competitors
Threaten of substitute
Top 3 in Thailand by 200 ranking in Asia Company, Forbs
OUTSTANDING COMPANY PERFORMANCE AWARDS rewarded by Stock Exchange of Thailand
Milli
on B
aht
0350700
1,0501,400
1997 1999 2001 2003 2005 2007 2009 2011 2013
1,3111,030
821739574
790682678664618369255172122796998
Sales income
DCON SALES INCOME
Profit, Stock price, Dividend yield
The founder of DCON has been in this business since 19841984
DCON built the factory to be the largest pre-stressed concrete plank in Thailand. DCON factory was located in Lopburi province, 120km. north of Bangkok, with the capacity of 160,000 square meter per month
1996
Near Bangkok Low cost of raw material Low price of landed Close to Cement Factory ( )
+ (, ,) 120 . .
( .) BOI 3
SET UP FOR ADVANTAGE
Asian financial crisis hit Thailand. Apply concrete technology by Separate mixing and fly ash replacement Design the innovative truck which reduced 20% of logistic cost. Keep the people
1997
COST CUTTING THROUGH OUT VALUE CHAIN USING
TECHNOLOGY AND INNOVATION
2000
2002
Adapt manufacturing capability to produce new product for difference target customers ()
DCON built the factory to be the largest pre-stressed concrete piles in Thailand for small building, with the capacity of 11,000 meters per day
DIFFERENTIATE DO PRODUCT THAT OTHERS DO NOT DO
2004DCON has raised the capital to 200 Million Baht and became a listes company in the Stock Exchange of Thailand (SET)
Expand to property business under the brand name of Orada as demonstration site
Expand plank business to Chiang Mai Expand to block business using CELLULAR LIGHTWEIGHT CONCRETE (CLC)
area
THINK BIG and EXPAND with synergy
2007-2009 The First PRE-STRESSED CONCRETE PLANK manufacturer in Thailand to be certified by ISO ERP system implemented
2005-2006 Subprime mortgage crisis hit Thailand.
Navision microsoft certificate iso
ENHANCE COMPETITIVENESS in the bad time
2010-2014 Expand the factory to nation wide Expand Orada to high rise condominium
200
THE ROAD AHEADlocation
move
EnergyE-commerce
AEC
CONSISTENT STRATEGIC THINKING
is THE KEY TO SUCCESS in any situation