The development of distribution channels from traditional to modern trade: A case study of the Thai Olympic Fibre Cement Co., LTD.

Abstract

This research aims to describe the aspects of distribution network (Piercy & Cravens, 1994; Todeva; Uzzi & Dunlap, 2005) of the construction material merchandisers in Thailand, to gain the better understanding in differences and similarities of modern trades and traditional trades (Rosenbloom, 2010; Weill, Malone, D’Urso, Herman & Woerner, 2005). Eventually the identifications of factors influence the business model transformation were the results of the data analysis (Amit & Zott, 2012). B2B stratrgic suggestions in relationship marketing perspective (Foed, Gadde, Hkansson & Snehota, 2011; Hkansson & Snehota; 1995;Wheelen & Hunger, 2010) were the consequences of the study conclusion. The distribution networks of construction materials in Thailand describe by sales type such as retails, wholesales, project sales and modern trade sales or by product brand from manufacturer and Portland cement factory which own each other brand, The different network have their own regulation but mostly network in the country have no more strong regulation to enforce the customers therefore the brand, product substitution, channel overlapped and conflict were plenty in the market. The differences and similarities of two trading model were have their strong point such as the close relationship with long term coordination in local area of traditional trade or the system back and front office of modern trade which make each model survived in the heavily competition environment. In the changing world of business, the proliferation of customers’ needs was the main factor that affects the firm to transform itself to increase the competition capabilities, changing in customer expectation, the buyers with more knowledgeable and many branches diversification to the major cities were the factors of business model transformation. The distribution market of Lao’s construction materials should develop the business model in briefly year depending on the socialism government to open for the capitalism in future. Some firms in Lao were developed themselves with extent resources. The two strategic types of transformed and transforming modern trade concentrated on the relationship marketing which was the way to maintain the customer loyalty and to modify the suitable business relationship between the company and the customer. The evaluation and the contingency plan were contained in this thesis.