Overview of an Emerging Market in Thailand

Overview of an Emerging Market in Thailand

 Thailand is a country located on the central continent of Asia.  The Country’s geographical structure comprises hilly lands in the Northern part, the fertile central plains which support immense scale growth of rice, the broad plateau on the Northern and rugged coast, which acts as a tourist attraction site. Thailand was known for the agricultural Country back till the end of the half 20^th century, and this view changed gradually since the start of 1961 due to the immigration of the countries citizens to Bangkok, which is the headquarters of Thailand. Although Bangkok is the administrative headquarter of Thailand, other sizable capitals are coming up, such as Chiang Mai, Nakhon Ratchasima, Pattaya, and the Hat Yai. Burma surrounds Thailand’s main body on the western side, and it also occupies the entire peninsula reaching its southern border with Malaysia. The Thailand landscape is divided into different climates zone, from the mountainous landscape to the alluvial plains and the sandy beaches at the coastal part of the Country (Kingnetr & Sriboonchitta, 2017).  The Country has two large rivers that are responsible for the drainage system of the land. Thailand is covered by forest, shrub, and the stunted grass, and the swampy wetland comprises of water lilies. In recent days, the forest part of the Country has reduced due to deforestation to create more land for the steadily growing population and also to provide land for Agriculture. Although a large number of residences in Thailand are members originally born in the Country but also Thailand offers residents for a large number of an immigrant from China, some from South Asia. Thailand has several manufacturing industries dealing with textile, plastics, footwear, electronics, automobile parts, and also cement.

There are different characteristics and also the challenging factors affecting the growth of the Thailand market; these factors include:  The market and the culture of Thailand are challenging. Due to factors such as dust and heat, insufficient power supply, poor infrastructure, and inadequate capital allocated in the marketing sector in the Country. These factors might lead to Companies in Thailand to produce relatively low-quality products. Consumers in the Country are expecting high-quality products out of their insufficient capital; they are ready to produce for the Companies products. The companies’ products and services provided should also adjust to the consumer’s cultural beliefs and traditions, which are sometimes challenging to these companies (Laothamatas, 2019). Some challenges faced by the Industries are selling jewelry and clothes to the dominant Islamic countries, which does not allow women to expose their body part; hence there is no need to buy these products.  Another example of the challenges faced by the companies in Thailand is who to sell food and beauty products in the market concerned with the purchase of sustainable products such as food, clothes and other basic needs, consumers in the Country also has not developed a culture of consumption. There is hence a need for a strategic plan to mobilize customers to change their cultural life and beliefs to increase their purchasing power. The Company can also adapt to the rugged environment and to come up with various designs of products and services to cater to the Muslims in the Country.

There are high rates of Emigration to the Developed world. The first-class countries are exporting their superior products to the Country, lowering the sales of local industrial products in Thailand. There movement of people to the United States, which has reduced the human resource and also the sales. For example, we have an approximate of 29 million people who are not born in the country; these individuals invest in the foreign lands leaving Thailand in poverty (Pan & Zhan, 2019). This problem can be solved by improving the countries structure and an encouraging political environment to attract more investors in the country to create more employment opportunities. Another factor is the insufficient capital and space in the Country. The incomes and cash flow of Thailand are meager compared to countries like the United States, China, and Japan; these factors lower the purchasing power of citizens. More cash in the Country is kept liquid and not given to the households to invest in. The saving rate of Thailand and other rapidly growing countries have risen to about 40 percent within the last two decades, the savings. In Thailand, consumers like purchasing small quantities products, and hence the companies should focus on breaking bulk to produce suitable products to the customers. Thailand has a poor infrastructure; most of the population of the country’s market is non-accessible by means of transport like vehicles, moto bikes and also lack power supply. The cities in Thailand also face rapid growth and hence have created a strain in the available resources. Power failure is common, which alters the country’s industrial development, and there is also a problem of clean water and proper sanitation. Infrastructure problems can be solved by industries coming up with strategies of providing clean water and improving hygiene, using generators in production.

Some of the Environmental factors affecting the country include factors such as the Ideological factors, Economic factors, and Political factors which needs to be addressed for the better performance of companies in Thailand, Companies such as Siam City Cement (PCL) are affected by these factors. The political factor which involves cases like political unrest is one of the major bottlenecks which influences the development of the Siam Cement Company. These challenges hinder the organization’s activities, such as the number of cement sold. The following named factors are some of the external political set factors of the Company’s policies: Improved support from the Government for better infrastructure, free trade extension policies, and stable or fixed political climate in countries.  In most major markets, steady political positions have allowed the Company to expand its business in these zones. Besides, the spread of free trade policies has helped the Company to enter the foreign market more effectively and quickly. Moreover, government support for infrastructure development continues to improve, especially in developing countries, which provides the Company with further opportunities to expand its business in these markets.

Economic ElementAs stated by the 12^th Siam City Cement Annual Report (2018), various external profitable elements are stated in the Companies development strategies, and these factors include; Thailand’s economic melancholy and capital problems. The economic environment consists of factors affecting consumers purchasing and spending power (Stoyanova & Harizanova, 2017). The management of Sium City Company needs to take a keen analysis of the economic situation in the county. The total buying power of an individual will depend on the credit available, current income, level of savings, and prices. Sium City Company should be aware of the significant trend in income and of the changing consumer’s pattern. Social ElementsSocial factors are what may hinder the interaction and connection relationship between the industry and its customers. Individuals belong to social acquisition that influences their consumption pattern, and consumers are therefore affected by the following social elements. Socia groups, which can be further classified as membership and reference groups, reference groups act as an inspiration point and hence affects individual behavior and attitude (Pisitsankkhakarn & Vassanadumrongdee, 2020). Membership group includes primary groups which comprise of members of the family and also the co-workers, secondary groups such as Religio and the Professional association of an individual. The family has a strong influence a buying behavior. Hence, the sum of City Cement should come up whith a high-quality product to strengthen the excellent relationship with its customers. Social roles are also one of the factors affecting the purchasing power of an individual in the following ways, people of a higher work position are expected to buy a high-quality product to enhance the supremacy. Technological ElementsAre forces that affect the production process, technological advancements such as the introduction of telecommunication services, for example computers, internet, and the application of cell phones have revolutionalized the way business is conducted from banking to communication to the transport of goods and services to the market. Each new Technology replaces an older one when the existing industry fight or ignores these innovations, and the business is more likely to fail. Many of the Industries that do not keep up with the technological changes will soon find their products and services declining due to their outdated nature and tend to miss out on the new marketing opportunities provided by the innovations. (Stoyanova & Harizanova, 2017. Sium City Cement company should adapt to the latest technological innovation, for example, to use Technology in production to increase the outputs. When Technology is used in production, there is an increase in the quality and quantity of goods produced, and these will hence increase the quantity of the product presented in the market for sale. Technology will also help in the prevention of embezzlement of funds as payments will be done online.The Siam City Company should also consider cultural elements for its triumphant performance in the competitive market of Construction. Some of the Cultural elements which the industry needs to address are as follows; cultural groups. Human being’s behavior toward a product is greatly influenced by their cultural lives and may also have an impact on their consumption and purchasing power. Culture is made up of a complex system of norms, symbols, and values which develops over time in the society and in which all its members share. These systems are passed through children from their parents and guardians and from generation to generation to ensure cultural survival. Siam City Company needs to convince society to purchase their products by concentrating more on the advertisement.Ecological FactorsInvolves the limited natural resources needed by Sium City Cement as the production imputes. The resources come in the form of raw materials, and they are affected by marketing activities. The company should also be able to adhere the body of laws and legislation created by the Government of Thailand so as to safeguard the environment it operates in to prevent a collision, which may lead to the alteration of the Companies operation in the country. Environmental Elements: They consist of factors affecting consumer purchasing power and spending pattern. The total buying power of an individual depends on the following factors,  credit availability, current income, the level of savings, and the prices of products. Sium City Company should be aware of the significant trend in income and the changing consumer purchasing pattern. Factures such as the consumer’s income, economic growth rate, level of employment, the rate of inflation, and taxation, positively or negatively, will determine the amount of money that one has to spend. Besides, Sium City Company should be more concerned by the nature of income distribution within a market because it affects product affordability and spending patterns.Legal problems.

Legal problems which are faced by an Organisation or Company due to Government rules and restrictions of the Country they perform their activities in. Some of the Examples of the rules and regulations affecting Siam City Cement that needs to be addressed are: The Government should improve some of the laws regulating the employment sector in the second world countries, there should also be up-grading of consumers regulations to cope up with the rising economy and modification of more safer regulations concerning health. The high cost creates restrictions that hinder the enforcement of labor laws in second world countries, and this will lead to a rise in labor costs in many companies within the business sector (Nurmi & Niemelä, 2018, November). These external factors allow companies to enforce higher levels in terms of employment and work in general. Siam City Cement has the opportunity to showcase its vision and brand image by looking upon the cement product users gratification through the marketing of Construction Products such as cement and also to mention their side effects and the applications clearly.

In conclusion, The Government should tighten the security in the Country to solve the insecurity issue, and it should also develop the infrastructure. Companies should also adapt to the rugged terrain and to come up with various designs of products and services to cater to the Muslim. Industries should come up with strategies of providing clean water and improving sanitation; the Government should also lower-taxed imposed on goods and services to encourage small scale investors. (Pisitsankkhakarn & Vassanadumrongdee, 2020).  Thailand should also participate in the science congress to nature the upcoming scientific ideologies, and good governance should also be encouraged to create a conducive environment for the Improvement of Trade and development of Industries in the Country. They should also promote the use of Technology in production to produce competitive products in the world market

Reference

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