- March 19, 2013
- Posted by: essay
- Category: Term paper writing
On analyzing cultural specificities of Thailand, it is important to place emphasis on the significance of relationships and networks for the chosen entry strategy. In fact, the company will implement the aggressive expansion strategy, which is based on the development of the production facilities and networks in Thailand. In such a situation, the company will need to develop new relationships and build up networks in Thailand. At this point, the company may face substantial difficulties because it has no relationships and networks in Thailand at the moment. The difference of the local culture may raise additional barriers on the entry of the company in the local market.
Therefore, the company will need to elaborate effective strategies of the negotiations and develop its own network in Thailand. The latter implies that the company should employ local professionals. Obviously, the employment of local professionals can help the company to implement successfully its strategy. In fact, the company will need to gain the support of local community and authorities to develop relationships and build up networks successfully. Local professionals are familiar with cultural specificities and specificities of the local market. Consequently, they will be able to develop business through the formation of networks and relationships in Thailand more effectively than professionals transferred from other units of the company, from Europe, for instance.
As soon as the company creates strong, positive relationships and networks, it can start expanding its market share successfully. In fact, relationships and networks are crucial for the successful business development in Thailand. The local culture implies the existence of close relationships and mutual trust for the effective cooperation and interaction between the company and its suppliers, for instance.
At this point, it is important to dwell upon the network map for the selected strategy and focal and subsidiary relationships. Basically, the network map may be briefly presented as follows: the headquarter in Switzerland ”“ the subsidiary in Thailand ”“ local production facilities and employees ”“ local suppliers ”“ local authorities. Such network map is effective because it maintains the close relationships between the headquarter and subsidiary. At the same time, the suggested network map implies the autonomy of the subsidiary that allows the subsidiary to adapt to the requirements of the local culture and specificities of the Thai market.
In this regard, focal subsidiary relationships are particularly significant for the successful marketing and entry of the Thai market (Laothamatas, 1992). The relationships with local suppliers and authorities should be one of the primary concerns of the company. The authorities have a significant impact on the business development in Thailand, whereas local suppliers are essential for making the costs of production lower and to maintain high standards of products and to meet needs, tastes and preferences of local customers.
At the same time, the relationships within the organization affect consistently the development of the subsidiary. In fact, the company should focus on the development of the healthy organizational culture and positive relationships between all professionals working in the subsidiary. Therefore, the formation of the healthy organizational culture is an essential condition of developing positive relationships within the subsidiary and successful implementation of the marketing strategy of the company.