Sabina: Adapting Proactively to Change

This case is about Sabina, one of the leaders in the Thai lingerie market, and her proactive adaptation to changes in her business environment over two decades. The company first took advantage of the devaluation of the Thai baht in the late 1990s to expand its export business and become a reliable OEM supplier for major European and American brands. The OEM business accounted for 60% of the company’s sales in 2006. Bunchai Punturaumporn was appointed managing director of the company in 2007. This required innovations in marketing, expanding sales, achieving manufacturing excellence, and adapting the organizational structure of the company over time. In 2012, the OEM business accounted for only 9% of sales. Sabina has also successfully overcome other challenges, including rising labor costs in Thailand and cheap imports from China. In 2013, Bunchai prepared the company to go regional and take advantage of the opportunities presented by the establishment of the ASEAN Economic Community in 2015. Learning objectives: show how SMEs can successfully adapt to drastic changes in their business environment and organization through proactive strategy changes.

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