Cultural Thailand Market Recommendations -Myassignmenthelp.Com

Question: Discuss About The Cultural Thailand Market Recommendations? Answer: Introduction: International expansion has to be the most important and most effective business strategy to keep the business afloat in this dynamic economy and along with that, the aspect of global popularity helps in keeping the customers attentive and interested. It has to be understand that in the present age of extreme competition and consumerism, there are too many options available to the target market for any product and service (Verbeke 2013). Hence, in order to keep the customers optimally satisfied and interested, it is crucial for the corporate services to entertain a global popularity or position. On a more elaborative note, the international expansion has a varied number of benefits; the first and foremost benefit can be the new market openings. It has to be und4erstood in this context that after a considerable amount of time the domestic target market becomes fairly saturated and for revenue enhancement there is a need for approaching new target markets, which the international expan sion can provide (Rugman, Verbeke and Nguyen 2011). Another very important benefit of the international expansion can be considered the risk diversification; operating in multi-continent setting can effectively serve as the insulation for the multiple economic breakdowns. The benefits of international expansion for any of the local business company is the competitive parity, the most of the current corporate focus in the present age is on the curbing the competition for almost every target market. And hence, entering the foreign market has also become one of the necessary sets for the different corporate entities to gain competitive edge or advantage (Forsgren and Johanson 2014). Although, apart from all the mentioned advantages of international expansion, the most important benefit that the companies can get from any overseas expansion is the geographic advantage that the business companies can get. It has to be understood in the context that many of the business corporations are tending to expand into the Asian markets for the sole purpose of leveraging the local technological expertise and addressing the steadily growing economy of the Asian markets (Falkner 2017). Similarly the Australian popularity, the Tim Tam biscuits have entertained a successful business in the Australian and American market, this report is attempting to focus on the issues and challenges that this product can face if introduced in the market of Thailand. Along with that, this report will also provide a set of market entry recommendations, which can be followed to smoothen the issues that can rise in the Asian expansion for this product. Market culture analysis of Australia and Thailand: Tim tam is a very popular biscuit brand that has been a cult favourite among all generations and age groups, and it can be mentioned in this context that the product has enjoyed a successful business in the western market (Arnott's Australia 2018). Although, it has to be mentioned that the western living and market culture differs significantly from the Asian market and a through comparative cultural analysis is required before introducing the product. Hofstede analysis: It has to be mentioned that the hofstede analysis depends on 5 core dimensions of the market culture, the very first variable under discretion is the power distance on which Australia ranks fairly lower than Thailand based on the fact that societal inequalities are accepted. In addition, a strict chain of command and protocol is frequently observed in the cultural settings of Thailand. The individualism is the second factor where the Thailand scores very low at 20 when compared to 90 of Australia, indicating that the collectivist nature of their society. The uncertainty avoidance is the sector where both the countries rank closer to each other, although Thailand ranks slightly higher indicating the fact that the country has higher tendency to avoid uncertainty. In case of long- term orientation, both of the countries rant fairly low which indicates that both countries have a more normative approach than pragmatic. Lastly, in terms of indulgence, Thailand scores much lower than Austra lia, which indicates that Australia is an indulgent country much more acquainted with impulsive changes. Hence, it can be deduced from the analysis that the Australian culture is much more westernized, impulsive and risk taking rather than the Thailand culture which is more reserved conventional and orthodox with an innate resistance to uncertainty, change and impulse (Hofstede Insights 2018). Market entry analysis for Tim tam in Thailand: From the hofstede analysis, it can be clearly stated that the business culture of Thailand is much more conservative than the open- minded broader market culture of Australia and hence any product marketed with Australian market on mind will not prosper well in the Thai market. From the scores that the country has received on the variables like uncertainty avoidance and indulgence, it can be mentioned that the introduction of any new product will receive a significant resistance from the Thai market in the initial stages. Now thinking from the business perspective it can be mentioned that the importance of the international expansions are to make use of the local talent and hence the vast cultural differences and language difference will work as significant challenges for this western based product to be launched in Thailand (Chittithaworn et al., 2011). Market entry recommendations and conclusion: It can be stated that the Thai culture is not very inclined towards the bakery goods, and the modern interest is limited to the breads and cakes mostly. According to the recent statistics, only 5% of the bakery business in Thailand can be contributed to the cookies and biscuits sector (Chongsermsirisakul and Iamurai 2017). Hence, the market demands for biscuits are already low and in order to establish a secure business in the Thai market the Tim tam will have to persuasive and innovative marketing principles and strategies. As market entry recommendation, a few market entry modes can be suggested like licensing and franchising. In case of licensing, the biscuit company will have the opportunity to wither exclusively or non-exclusively manufacture and market the product in the foreign firm. It will give the company a chance to incorporate the local taste into the manufacturing and attract the local customers more efficiently. In case of franchising, the company will have a direct benefit to partner with a home brand and launch their product in the market to test out the response before they can branch out on their own (Grnig and Morschett 2012). This market entry suggestion has minimal financial risk and can be the best option to test out the market before investing a large among onto this resistant and conservative market. Although, on a concluding note, it has to be mentioned that a thorough market cultural and consumer demand analysis is required as an essential step. References: Arnott's Australia. (2018).Tim Tam | Arnott's Australia. [online] auditingat: https://www.arnotts.com.au/products/tim-tam/ [Accessed 21 Jan. 2018]. Chittithaworn, C., Islam, M.A., Keawchana, T. and Yusuf, D.H.M., 2011. Factors affecting business success of small medium enterprises (SMEs) in Thailand.Asian Social Science,7(5), p.180. Chongsermsirisakul, P. and Iamurai, S., 2017. Reconstructing retail management in wholesale business in order to survive in online Era-Case study of Bakery business in Thailand.(Bk@ Eco).The Business Management Review,9(1), p.75. Falkner, R., 2017.Business power and conflict in international environmental politics. Springer. Forsgren, M. and Johanson, J., 2014.Managing networks in international business. Routledge. Grnig, R. and Morschett, D., 2012. Evaluating marketing entry modes. InDeveloping International Strategies(pp. 123-148). Springer, Berlin, Heidelberg. Hofstede Insights. (2018).Country Comparison - Hofstede Insights. [online] Available at: https://www.hofstede-insights.com/country-comparison/australia,thailand/ [Accessed 21 Jan. 2018]. Rugman, A.M., Verbeke, A. and Nguyen, Q.T., 2011. Fifty years of international business theory and beyond.Management International Review,51(6), pp.755-786. Verbeke, A., 2013.International business strategy. Cambridge University Press.