Diversification of Real Estate Companies in Thailand from 2019 to 2023: A Case Study of Sena Development Public Company Limited

Abstract

Between 2019 and 2023, global uncertainties impacted all sectors, including real estate, which faced multifaceted challenges. Many operators thus had to adapt their business by diversifying to mitigate risks and achieve sustainable growth. This study reveals Sena Development Public Company Limited diversified across eleven categories. This research specifically examines Sena's diversification efforts during 2019–2023. The methodology involved a literature review, data collection from annual reports and interview published online, and interviews with personnel responsible for the Company's diversification. Analysis revealed that Sena's diversification began early, expanding into recurring income businesses in 2008 due to real estate market saturation and external/internal challenges, necessitating continuous investment expansion. During 2019–2023, the company employed various diversification strategies, including related businesses with vertical growth, related businesses with horizontal growth exhibiting operational and market alignment, and unrelated businesses. The primary methods used were self-investment, equity acquisition, and joint ventures. This approach created strong growth opportunities through value chain linkages and leveraging organizational core competencies. However, such diverse business expansion also brought internal operational challenges. This study thus illustrates a Thai real estate developer's adaptation to build long-term stability and growth through strategic adjustments, providing lessons learned from its diversification methods and outcomes.