Global Strategic Management, International Strategic Management, Thai Sugar Industry with Processes, Value-chain, Five-forces and SWOT Analysis

1. Problem/Key IssueHow to maintain the competitiveness of the Thai incision exertion in a dynamic and volatile world(prenominal) commercialise?Porters Five Forces Analysis on Global ice lolly Industry terror of new entrants - LOWThe attention requires sugar manufacturing firms to have necessary uppercase investments much(prenominal) as land and building, w arhouses, factories, labor, etc. Moreover, these facilities can be utilized for sugar production including its by-products (i.e. molasses and bagasses) only. This represents the high exit barriers.

Threat of substitute products - LOWSubstitutes to sugar do exist in the market place. These substitutes such as artificial sweeteners, starch syrup are obtainable but are not widely used any over the world.

Threat of buyers? growing bargaining top executive - LOWUp to widen consumers (end users), they do not exert much control on the prices since the demand for sugar is inelastic which represents no significant power of buyers.

Threat of suppliers? growing bargaining power ? RELATIVELY LOWSugarcane growers are considered as suppliers for sugar industry. Since the world?s plantation of sugar cane has been constantly increasing, especially from brazil, this signifies low bargaining power from suppliers (i.e. sugarcane growers).

Threat of intense segment rivalry ? VERY HIGHSugar industry can be classified as a consolidated industry. The rivalry among the nations to be prevailing in the global market is exceedingly intense.

SWOT Analysis for Thai Sugar Industry (2006-2007)StrengthsWeaknesses?Geographic location - proximity to global sugar market?Inelastic domestic demand?High technology and progression?Increase in the area planted to cane? clinical depression productivity?Delivery processesOpportunitiesThreats?By-products of sugar cane?FTAs?Significant line in world petroleum prices leading to lower point cost?Trade barriers?Exchange rate fluctuation.

?Considerable tariffs on sugar exported to Russia?Significant decline in world oil prices resulting less interest in the use of alternative cipher (gasohol)?Oversupply of sugar in global market placing downwards pressure on prices?Increase in exports of sugar from Brazil and IndiaSWOT Analysis for Thai Ethanol Industry...

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