Khao Yai Winery

An Economic Perspective
Khao Yai Winery
An Economic Perspective

2
ABOUT US
Khao Yai Winery

03
 PROBLEM
• Khao Yai Winery

04
 OPPORTUNITIES THREATS
Global Technology Advancement (Machinery & US-China trade relations, can raising both labor
O1 T1
Artificial Inteligent) - reduce people cost cost & cost of doing business

International geo political factors; such as

O2 E-Commerce & Social Media Business Models T2 Brexit, Crisis in Venezuela, Russia Sanctions, and
Oil prices rising

SWOT O3
Growing market size & Evolving of consumers
preferences
T3
Threats of New Entrants because of social
media advancement
Lower demand from middle customer in
O4 Going to International Market (Go Global) T4
Developed & Developing Countries
Some change in Government Regulations,
Increasing company standards by focus on
O5 T5 pressure from protest groups & NGO regarding
successful products
environmental & labor issue
Opportunities to capture potential customer
O6 T6 Easy credit can be over at any time
(growing corporate market)
STRENGTH S - O Strategy S - T Strategy
Searching for domestic supplier special both
S1 Strong domestic market S1-O2 Penetrate trough Social Media and E-Commerce S2-T1
labor & resources
S2 Strong relationship with existing suppliers S2-O1 Reduce operation cost S3-T3 License all the products
Khao Yai Winery have some intellectual Need to strengthen relationship with social
S3 S3-O3 Going global with licensed products S5-T3
property rights media influencer and e-commerce corp.
Domestic market already accept when enter Marketing mix Strategy to penetrate middle
S4 Success go to market track record S4-O6 S6-T4
new market customer in developing & developed countries
Persuade Government to support local
S5 Strong brand equity and awareness S5-O4 International market already accept S1-T6
company
Portfolio strategy to strengthen bank trust (can
S6 Diverse product portfolio S6-O5 Market not looking for competitors S5-T7
lower interest rate)
First Mover Advantage (made swift movement
S7 S7-O6 Easy to penetrate new market segment
when enter market)
WEAKNESS W - O Strategy W - T Strategy
Need to strengthen relationship with social
W1 Low implementation of technology W1-O1 Invest in technology and artificial inteligent W1-T3
media influencer and e-commerce corp.
Business model can be replicated with Need to strengthen relationship with social Need to invest in social media marketing to
W2 W2-O2 W2-T3
competitors media influencer and e-commerce corp. increase brand awareness
Cooperation with other countries company with
Lack of critical talent in tech. & digital Cooperation with third parties especially on
W3 W3-O2 W3-T4 strong technology to penetrate middle
transformation technology advancement
customers on their respective countries
Not focusing on external shareholders (poor Hire Social Media influencer as a company Invest in Public Relation strategy to make a
W4 W4-O2 W4-T4
Public Relation) public relation bond with global market
Engagement Strategy to resolve environmental
Cooperation with third parties specialist on HR. 5
W5 Poor inventory & cash management W6-T5 issue and to surpress potential unfavoured
& Finance technology
regulations to company
Hire Social Media influencer as a company
W6 Poor environmental issue management W6-O2
ambassador specialist on environmental issue
 PESTEL Analysis
ENVIRONMENTAL
ECONOMIC FACTORS SOCIAL FACTORS TECHNOLOGY FACTORS LEGAL FACTORS
POLITICAL FACTORS FACTORS
Demographic shifts in the
Little dangers of armed Khao should closely Mobile phones has Property rights are also an
economy, Khao should
conflict (very little monitor consumer created a generation area of concern for Khao
predict not only overall Environmental regulations
probability of country disposable income level, whose primary tool of as it needs to make
trend in market but also can impact the cost
entering into an armed household debt level, and entertainment and significant infrastructure
Demand for Khao product structure of Khao
conflict with another level of efficiency of local information consumption investment just to enter
among its core customer
state) financial markets is mobile phone new market
segments
Political consensus among Khao should closely
various parties regarding consider the forex inflow Consumer activism is
Health and safety norms
taxation rate and and outflow. A number of Artificial intelligence and significantly impacting
Leisure activities, social in number of markets that
investment policies (he Khao competitors have machine learning will give Khao branding, marketing
attitudes & power Khao operates in are lax
country has progressively lost money in countries rise to importance of and corporate social
structures in society thus impact the
worked to lower the entry such as Brazil, Argentina, speed over planning responsibility (CSR)
competition playing field
of barrier and streamline and Venezuela due to initiatives
the tax structure) volatile forex market

06
 Value Chain Analysis
Funds Collection
Firm Infrastructure
Administrative Tasks
Managing Employees
Training Employess
HR Management Appraisal & Rewards

Support Process
Knowledge Transfers
Conducting Meetings
Feedback from customers
Research work
Improvising their products
Technology Development
wine distillery efficiency
Use of IT, databases

MARGIN
Temperature control storage room
Acquiring Resources
Procurement of Resources Ingredients from local suppliers
Special ingredients from self vineyard
Inbound Logistics Operations Outbound Logistics Marketing and Sales Service and Supports
Purchasing Have wine
Materials : Oak distillery and Transporting wine
Barrels, Bottle, distribution bottles to restaurant Segmentation Customer Satisfaction
Primary Activities

Label, Closure, plants in and hotel

and Capsule Thailand

Target Market

Developing Branding
Selling products at
relationships with Packaging Redefining wine products Online Orders
hotel
suppliers Pricing
Distribution
Advertising
07
Promotional Offers
 VRIO Analysis
The analysis done on the 4 dimensions; Value, Competitive
Rareness, Imitability, and Organization. Resources Value Rare Imitation Organization Advantage
Alignment of Yes, company has
If a resource is high on all of these 4, then it
Activities with Each of the firm organizational skills Still lots of
brings long-term competitive advantage. If a
Khao Corporate has its own to extract the potential to build
resource is high on Value, Rareness, and
Strategy Yes No strategy maximum out of it. on it
Imitability, then it brings an unused competitive
Track Record of Can't be Providing Strong
advantage.
Leadership Team imitated by Competitive
If a resource is high on Value and Rareness, then at company name Yes Yes competitors Yes Advantage
it only brings temporary competitive advantage. Yes, Khao has Khao has utilized its
one of the leading brand Sustainable
If a resource is only valuable, then it’s a
leading brand position in various Competitive
competitive parity. If it’s none, then it can be
regarded as a competitive disadvantage. Brand awareness Yes in the industry No segments Advantage

08
 Marketing Mix Analysis
Promotion Product
• Use of the mass media to promote alcoholic • Red wine : Sawasdee Khao Yai Shiraz,
beverages is not permitted, but in-shop advertising
or on-premise promotions are allowed. Pirom Khao Yai Reserve Tempranillo, PB
Khao Yai Reserve Shiraz, and Pirom
• Organizing Khao Yai Winery fest Supremacy Shiraz – Cabernet Sauvignon.
• Organizing a launch of a new brand • White wine : PB Khao Yai Reserve Chenin
• Complementary glass of wine in restaurants and Blanc, Sawasdee Khao Yai Chenin Blanc,
bars and Pirom Khao Yai Reserve Chenin Blanc.
• Khao Yai Winery Harvest • Others : PB Khao Yai Shiraz Rosé, Licci, and
• Internet marketing Pirom Brandy.
Place Price
Kao Yai wines available in : • Best Grade : 0.7 litre for 999 Thb.
• Five Star Hotels • Decent Grade : 0.7 litre for 500 B.
• Wine shops • At restaurant the prices varies - to find a glass
of wine less then 150 B will be hard.
• High end Restaurants

09
BCG MATRIX
• Identify the relative market share of each
strategic business unit.
• Identify the market growth of each strategic
business unit.
• Place these strategic business units in one of
four categories. Question Marks are those
strategic business units with high market
share and low market growth rate. Stars are
those strategic business units with high
market share and high market growth rate.
Cash Cows are those strategic business units
with high market share and low market
growth rate. Dogs are those strategic
business units with low market share and
low growth rate.
• Relevant strategies should be implemented
for each strategic business unit depending
on its position in the matrix.

010
 SOLUTION
• Khao Yai Winery An Economic Perspective should focus on
making use of its strengths identified from the VRIO analysis
to make the most of the opportunities identified from the
PESTEL.
• Khao Yai Winery An Economic Perspective should enhance the
value creating activities within its value chain.
• Khao Yai Winery An Economic Perspective should invest in its
stars and cash cows, while getting rid of the dogs identified
from the BCG Matrix analysis.
• To achieve its overall corporate and business level objectives,
it should make use of the marketing mix tools to obtain
desired results from its target market.

01
1
THANK YOU!