Global recession especially China and environmental awareness in many countries have driven down global demand of coals. Meanwhile, global coal production is still increasing and has created over supply situation which pressured the global coal price. However, the demand of coals in Asia including Thailand is raising about 4.74 % with imported value of 45 Billion Baht approximately, as a result of raising demand of coal for power plant and industry. ABC Coal trading has engaged the main business of importing coals from Indonesia for distributing to Thai customers. The company has also been affected by the global external industrial factors. ABC was in a leading group of coal trading businesses.
However, it loses competitive advantages to new comers and major player who changed their strategies to play in the same market segment. ABC did not well response in necessary changes of internal factors due to changes of competitive field. It is essential for the ABC to implement turnaround strategies by improving internal processes, control cost drivers and use effective product sourcing strategies. They have to control all transportation cost and bring differentiation strategy to attract target market to keep the company away from competitors. They would use marketing strategies to create the demand and sales.
It is part of the company risk management to diversify into the port, river transportation and logistics services under the Related Diversification Strategy, in order to manage potential fluctuation of sales from one major revenue stream of coal trading business. The company plans for cost savings and aims to achieve better than peer. They plan to increase efficiency of employees and improve internal processes along the line of turnaround strategy to increase profitability in sustainable way.