- March 19, 2013
- Posted by: essay
- Category: Term paper writing
The entering of the Thai market opens larger opportunities for the company to develop its business in the Asia-Pacific region. In this regard, the company should elaborate criteria for selecting the market. The major criteria for selecting the adjacent market are as follows: stability, reliability, possible to forecast the further development of the market; low entering barriers; low involvement of the government in economy and business affairs; low competition and favorable natural resources to supply cocoa and other ingredients to the company from local farmers. In fact, these criteria will allow the company to enter the market easily and take the leading position in the market. At this point, it is worth mentioning the fact that the company the adjacent market should provide the company with ample opportunities to take advantage of its position and develop its business steadily. In this regard, the company can develop its business in Vietnam because this country has a stable regime, which, though, is far from democratic but the country still develops its economy and attempts to attract foreign investments. In actuality, Vietnam has a stable political situation and the company can use local farmers as suppliers for the production of chocolate.
However, Vietnam raises barriers on the way of foreign companies entering Vietnamese market. To put it more precisely Vietnam uses the countertrade to control the development of the national economy and business in the country. In this regard, the country applies different forms of countertrade. In such a situation, the company has to develop a proactive strategy that enables my company to trade profitably with the selected market. In actuality, it is possible to distinguish different forms of countertrade: barter, switch trading, counter purchase, buyback, offset.
In such a context, the company should use buyback. The buyback occurs when the company builds a plant or supplies technology, equipment, training, or other services to the country and agrees to take a certain percentage of the plant’s output as partial payment for the contract. In such a way, the company can benefit from the development of its business in Vietnam because Vietnam will be dependent on technologies supplied by the company and the company, in its turn, can benefit from building the plant and production facilities in Vietnam because the company will obtain a considerable output from the production facilities built in Vietnam. The company can count for the beneficial relationships with local authorities and taking the leading position in the local market because Vietnamese market and economy is closed.
Thus, taking into account all above mentioned, it is important to place emphasis on the fact that the Swiss company can enter the Thai market. However, the company should take into consideration existing socioeconomic, political and technological challenges, which it may face in the course of entering the Thai market along with cultural differences between the traditional organizational culture of the company and the local culture. The company should be able to develop its marketing strategy facing the challenges in Thailand. To put it more precisely, the company should develop the aggressive market expansion strategy to build up the networks and relationships in Thailand. In addition, the company should adapt to the local cultural requirements. In such a way, the company should pay a lot of attention to local cultural specificities. In addition, the company should develop positive relationships with local communities and participate in the life of local communities. Finally, the company should develop the healthy organizational culture that meets cultural norms and traditions of Thailand.
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