Organization main aim is to earn profits and make its presence in all over the world. It is believed that in order to survive the competition organizations need to expand and entered it in different countries so that the sales increases which will lead to rise in the popularity. Expansion through entry of an organization in different places is not an easy task and requires high level planning and decisions. In order to establish an organization in a new place the organization requires through analysis of the place and its marketing environment. It is very important to make the analysis so that proper decisions can be taken regarding the establishment of an organization. A lot of factors are needed to be looked into so that once the establishment is done the organization does not face any kind of issues. This is essential because if at a particular place the brand faces any kind of issues then it will affect the entire popularity of the brand. The global market is changing at a high speed and also everyday a large number of new investors and entrepreneurs are entering the market. As a result the competition has increased a lot. So it is also essential to understand this competitive market before launching a product. Launching a product in a new market also requires innovative planning so that the ideas can be unique to survive the competition. Every organization need to hire a management team which can analyze the present and future situation of the new market and thus decides the manner in which the product should be launched so that not only the market segment accept the product but also likes its features and use it for a longer period of time. It is also very much essential to have an exit plan so that if by chance the product fails in the new market then proper exit can be done so as the failure does not affect the brand name and its sale in the other part of the worlds.
In this paper we are going to discuss the introduction of Samsung Smartphone in the market of Thailand. Being a marketing executive it is my responsibility to study the Thailand market and the use of Smartphone by the people. The paper will consist of analysis tools like SWOT and Porter’s Five Forces based on which recommendation for introduction of Smartphone is based. The entire analysis and the research carried on in the Thailand Market would be presented in a report format to the higher authorities. The higher authorities can study the report properly and analyze the situations of the Thailand market and then based on their analysis the final decision of whether entering the Samsung Smartphone into the Thailand market or not would be taken.
Samsung is one of the well known electronic brands which has manufactured and marketed various electronic products and gadgets. Some of the famous products of Samsung are Televisions, Air conditioners, Music Systems, Laptops, Washing Machines etc. Along with electronics Samsung Company is also part of heavy industries, construction companies and life insurance. Samsung Company is a South Korean multinational company and its head quarter is located at South Korea. Currently Samsung operates all over the world and its products and services are used by large segments of market. In Korea it has been estimated that Samsung contributes around fifth parts of the total exports. It has also been estimated that the total revenue of Samsung is the 35th largest revenue in the entire world. Samsung after sensing the rise in the use of the mobile phones introduced a range of Smartphone. The initial Smartphone were basic models but once it saw the changes in the choice of the market segment and also due to the rise in the competition Samsung Smartphone was equipped with large number of features and facilities that made the products more attractive as well as user friendly. Recently Samsung Smartphone introduced Android software in its Smartphone and this has also added more popularity to the product. Because of these factors the Samsung Smartphone have established itself at different parts of the world. With its increasing popularity and profits the management has now decided to introduce the Samsung Smart Phone in Thailand market. But before its entry into the Thailand market it’s essential to understand the situation of the Thailand Market.
In order to carry out analysis of the Thailand market SWOT analysis has to be used. This is a model which is based on four factors which are Strength, Weakness, Opportunities and Threats. In this the Strength and Weakness basically determines the internal factors that will affect the product where as the Opportunities and Weakness determines the external factor that affects the organization. The Strength defines the positive factors of the organizations like its intellectual staffs, strong market position, efficient teams and past success. The Weakness refers to the negative points of the organizations like lack of resources, improper human resource, area of company etc (Panagiotou, 2003). The opportunities defines the points that will benefit the organization with the launch of a project like future success, strong market position etc. At the same time threats defines the external factors that can affect the organization like competition, market crash, higher interest rates and so on. Based on all these factors SWOT analysis is carried out so that the product that is to be marketed can be analyzed from every aspect and then launched to avoid any kind of losses (Mc Donald, 1992).
The SWOT analysis carried on the Thailand Market in relation to the entry of Samsung Smartphone gave the following results:
· The organization Samsung is already popular for its various electronic goods and other services in Thailand.
· There is a big market segment for the Smartphone (Dibbs & Frhangmer, 2001).
· The people of Thailand are gadget lovers and love to experience the new gadgets even of high price ranges.
· Samsung has enough resources to start the operation in Thailand and carry out the various marketing procedures (Doyle, 1998).
· The product being new there are chances that the organization may face some difficulties.
· Resources would be spent on either training the existing marketing executives or the company has to hire new people for marketing this product (Menon, 1999).
· The organization will gain more popularity with this product and can have power on wider markets.
· In the future the company will also gain lot of popularity in the entire world with its different range of products (Brassington & Pettitt, 2000).
· The organization if gets successful can plan for more such products and can target more market segments.
· The biggest threat is competition as there are other organizations which have already established their market in Smartphone in Thailand.
· The market of Thailand being filled with gadget lovers has to be tactfully managed (Kotter & Schlesinger, 1991).
· The fluctuation of country’s economic policies.
The next analysis method that is required to be followed is the Porters Five Forces. The framework was designed by Michael E. Porter in 1979 and he was a faculty at Harvard Business School. The five points which Porter believed to be force in driving the marketing are like “The threat of the entry of new competitors, the threat of substitute products or services, the bargaining power of customers, the bargaining power of suppliers and the intensity of competitive rivalry.” (Porter, 2008)
The threat of the entry of new competitors: The market is changing fast and this is because every day many investors and entrepreneurs are coming up with innovative business plans. Thailand as discussed earlier has great opportunities of business especially in Smartphone as people are gadget lovers and so large number of Smartphone organizations enters on a regular basis into the Thailand market and this could pose a threat on the Samsung Smartphone (Porter, 2006).
The threat of a Substitute Service: According to Porter as new competitors pose threats similarly any organization adopting any new service also pose similar threats for the other organizations. When new organizations will enter it is quite obvious the already established Smartphone organization will change their services and provide some better services and this can pose a threat on Samsung Smartphone (Leeflang & Mortanges, 1996). Market segments as have better compatibility with the existing brands will prefer their new modified versions rather than the Samsung Smartphone that have introduced recently. Also the new organization entering into the market must have studied about the existing market including Samsung Smartphone and so they will create better services and then enter into the Thailand market.
The bargaining Power of the Suppliers: In order to enter into the new market it is essential to maintain a cordial relation with the local suppliers as it will reduce the transportation and other import costs. Thailand market has lot of suppliers and so a bargain power is needed in order to control the investments and gain more profits. The suppliers are needed to be handled efficiently so that the product reach maximum people and the suppliers should always be given the best quotes (Menon, 1999).
The bargaining power of customers: When it comes to any kind of electronic or other such gadgets the customers hardly bargain and so the Samsung Smartphone will not be affected by this. Still in order to gain advantage a low price must be set initially. The customers would thus get attracted.
The intensity of the Competitive Rivalry: The intensity of Rivalry in Smartphone is very high and in Thailand there are large numbers of Smartphone manufacturers. Many times some of the rivalry changes their services frequently and also introduces different kind of schemes just in order to compete with the existing market. Initially the already established Smartphone organizations of Thailand will impose a great rivalry to the Samsung Smartphone but only with proper planning and decisions this can be overcome and the Smartphone of Samsung will also gain popularity (Porter, 2008).
Both the analysis helped in a proper manner to understand the Thailand market and now based on these analysis tools evaluations and recommendation would be made for the introduction of Samsung Smartphone into the Thailand market.
Evaluation and Conclusion:
After thorough analysis of the external environment and the marketing segment of Thailand it can be clearly said that the plan to enter the Samsung Smartphone into the Thailand market is an effective idea and would bring lot of profits to the organization. Even though the economy of Thailand is quite fluctuating but still the other factors are quite appealing and would ensure the organization gets the desire success.
The Samsung Smartphone need to work mainly on the threats and the weakness. But in comparison to threats and weakness the strengths and opportunities are more and so the risk is worth taking. The Samsung Smartphone should enter into the market with as lowest competitive price as possible so that introductory offer can attract the market segments and make them to use the phones. Once the demand rises the prices can be made to go to the regular costs. A lot of marketing would be require and for this new team are required to be formed for various marketing work (Brassington & Pettit, 2000). Only through proper promotion of the Samsung Smartphone the organization can establish itself properly in the new market. It should be prepared for the customers and supplier bargaining issues and should also deal with it. It is quite necessary that the team understands the mentality of the people and the type of Smartphone they generally use and operate and based on that the different models can be introduced.
By following the above mentioned things in a proper manner the Samsung Smartphone can run successfully in Thailand and thus make itself more popular. Only through proper strategic planning and managements the organizations can grow and obtained the desired success (Doyle, 1998).
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