Global Competitiveness: Ten Things Thai Businesspeople Should Know

103 Pages·2022·1.811 MB·English

by  William Philip Wall

William Philip Wall
Global
Competitiveness
Ten Things Thai Businesspeople Should Know
Global Competitiveness
William Philip Wall
Global Competitiveness
Ten Things Thai Businesspeople Should Know
Strategies to improve competitive position and consolidate
gains at rivals’ expense
WilliamPhilipWall
FacultyofBusinessandTechnology
StamfordInternationalUniversity
Bangkok,Thailand
ISBN978-981-16-7754-0 ISBN978-981-16-7755-7 (eBook)
https://doi.org/10.1007/978-981-16-7755-7
©TheEditor(s)(ifapplicable)andTheAuthor(s),underexclusivelicensetoSpringerNature
SingaporePteLtd.2022
Thisworkissubjecttocopyright.AllrightsaresolelyandexclusivelylicensedbythePublisher,whether
thewholeorpartofthematerialisconcerned,specificallytherightsoftranslation,reprinting,reuse
ofillustrations,recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,and
transmissionorinformationstorageandretrieval,electronicadaptation,computersoftware,orbysimilar
ordissimilarmethodologynowknownorhereafterdeveloped.
Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthispublication
doesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevant
protectivelawsandregulationsandthereforefreeforgeneraluse.
Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthisbook
arebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublishernortheauthorsor
theeditorsgiveawarranty,expressedorimplied,withrespecttothematerialcontainedhereinorforany
errorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwithregardtojurisdictional
claimsinpublishedmapsandinstitutionalaffiliations.
ThisSpringerimprintispublishedbytheregisteredcompanySpringerNatureSingaporePteLtd.
The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721,
Singapore
Inthebusinessworld,therearviewmirroris
alwaysclearerthanthewindshield.
—WarrenBuffet
Introduction
Howdoesabusinessdistinguishitselffromthecompetition?Howdoesitdevelop
competitiveness strategies? How can success be defined? What is the secret to
success?
Competitiveedgeissoughtbymanycountriestodaythroughhighergrowthrate
andlowercostofproduction.Thesecountriesalsorealizethattheymustbeinnovative
andinvesttoraisethatcompetitivenessandproductivity.
Through an open economy, Thailand derives approximately 60% of its GDP
from exports. While cheap labor used to provide a competitive edge in Thailand,
its surrounding neighbors and global economics have made that factor negligible.
Becauseoftherelativelylowrateofinvestmentandminimalincreaseinproductivity,
Thailandisindangerofbeingpassedbyintheglobaleconomicmarket.
Thailand is changing in many aspects. A military coup, which took power in
September 2006, has been replaced by a rudimentary coalition of democratically
electedofficials.InvestmentinThailandbyforeigncompanieshassloweddowndue
to the political uncertainty that surrounds the laws of investment and potential for
growth and profit, while the baht has increased in strength by almost 25% against
theUSdollaroverthepastfiveyearsandchallengedtheprofitsofexportindustries.
ThebookiswrittenasaguideandamanualforThaibusinesspeoplewholook
toachieveandmaintainaviablebusinessenvironmentintheglobalcommunity.Itis
notmeantasacriticism,butmeanttodevelopabetterawarenessofdoingbusiness
intheglobaleconomyanddiscusssomeofthestrategiesThaibusinesspeoplecan
usetodevelopamorecompetitiveedgewhendoingbusinesswithglobalpartners.
If you currently have a business and are successful, then you may not feel the
need to read this book. Global competition, however, is not static and what works
todaymaynotworktomorrow.Forascompetitiveasyouaretoday,thereisalways
someonelookingoveryourshouldertoenteryourmarketandtakeyourcustomers.
Withthe onset of the WTO and liberalization of trade, global competition is not a
goal.Globalcompetitionisanever-endingjourneythatwemustkeeppacewithor
facepotentialfailure.
Theideasandcontentsofthisbookarenotmeanttoguaranteecompetitivesuccess.
Theyaremeanttohaveyoustopandthinkaboutwhatyouaredoing.
vii
Contents
1 GlobalCompetition—TheBattlefield ............................. 1
1.1 ScopeofBusinessCompetition .............................. 1
1.2 TypesofCompetition ...................................... 2
1.3 FormsofCompetition ...................................... 2
1.3.1 PerfectCompetition ................................ 2
1.3.2 MonopolyCompetition ............................. 3
1.3.3 MonopolisticCompetition .......................... 4
1.3.4 OligopolyCompetition ............................. 4
1.4 DynamicCompetitionintheNewEra ........................ 5
2 Marketing—PositionYourself ................................... 7
2.1 DefinitionsofMarketing ................................... 7
2.2 PracticingMarketing ...................................... 8
2.3 MarketingandThaiCulture ................................. 9
2.4 Applyingthe4P’sofMarketing ............................. 10
2.4.1 Product ........................................... 10
2.4.2 Price ............................................. 11
2.4.3 Place ............................................. 12
2.4.4 Promotion ........................................ 12
2.4.5 PositioningStrategies .............................. 14
2.4.6 DevelopingaPositionStatement ..................... 15
2.4.7 IdentifyingCurrentMarketPosition .................. 15
2.4.8 AnalyzingCompetitorPositioning ................... 16
2.4.9 DevelopingaUniquePosition ....................... 16
3 Innovate—GenerateandEvaluate ............................... 17
3.1 BusinessInnovation ....................................... 17
3.2 ApplyingtheFourTypesofInnovation ....................... 18
3.2.1 IncrementalInnovation ............................. 18
3.2.2 DisruptiveInnovation .............................. 19
3.2.3 ArchitecturalInnovation ............................ 19
3.2.4 RadicalInnovation ................................. 19
ix
x Contents
3.3 TheBusinessInnovationProcess ............................ 20
3.3.1 Step1:IdeaGenerationandMobilization ............. 20
3.3.2 Step2:AdvocacyandScreening ..................... 21
3.3.3 Step3:Experimentation ............................ 21
3.3.4 Step4:Commercialization .......................... 22
3.3.5 Step5:DiffusionandImplementation ................. 22
3.4 ChallengestoInnovationandSupportServicesinThailand ...... 23
4 UsingInformation—LeverageResource .......................... 27
4.1 InformationasaResource .................................. 27
4.2 ExistingFormsofInformation .............................. 28
4.3 BasicSourcesofInformation ............................... 29
4.4 LeverageBusinessInformation/KnowledgetoCreateValue ..... 30
4.4.1 LeveragingBusinessInformation .................... 30
4.4.2 InformationinDrivingRevenue ..................... 30
4.4.3 ImprovingOperationalEfficiency .................... 31
4.4.4 ImprovingCustomerFocus .......................... 32
4.4.5 GainingCompetitiveAdvantage ..................... 32
4.4.6 SettingRealisticGoals ............................. 33
5 Technology—Upgrade .......................................... 35
5.1 TechnologyinBusiness .................................... 35
5.2 StepstoFollowWhenUpgradingYourBusinessTechnology .... 36
5.2.1 Step1:IdentifyTechnologicalLoopholes ............. 36
5.2.2 Step2:PilotOperation ............................. 37
5.2.3 Step3:CommunicationPlan ........................ 37
5.2.4 Step4:Training ................................... 38
5.2.5 Step5:PreparingInfrastructure ...................... 38
5.2.6 Step6:ImplementationandSupport .................. 39
5.2.7 Step7:PerformingUpgradeReview .................. 39
5.3 BenefitsofUpgradingTechnologyinBusiness ................ 39
5.3.1 IncreasedProductivity .............................. 40
5.3.2 SecurityofData ................................... 40
5.3.3 AttractingMoreCustomers ......................... 41
5.3.4 CostMinimization ................................. 41
5.3.5 SolvingProblems .................................. 41
5.4 TechnologyTransfer/AccesstoTechnology ................... 42
5.4.1 BarrierstoTechnologicalTransfer .................... 42
6 Human Resources/Cross-cultural Communication—Breed
Success ........................................................ 45
6.1 HumanResourceDevelopment .............................. 45
6.2 Cross-culturalCommunicationAwareness .................... 46
6.3 FocusingHRMCommunicationTowardsBusinessMissions .... 47
6.3.1 StrategicCommunication ........................... 48
Contents xi
6.3.2 Communicating Human Resources Benefits
andRisks ......................................... 48
6.3.3 FunctionalImplementation .......................... 48
6.4 CreatingEffectiveCommunicationWithintheOrganization ..... 49
6.5 HumanResourceasaBusinessAsset ........................ 49
6.5.1 HumanCapital .................................... 50
6.5.2 PossessSkillsandKnowledge ....................... 50
6.5.3 ContributiontoProfits .............................. 50
6.6 CreatingCompanyCulturethatBreedsSuccess ................ 51
6.7 DevelopingCross-culturalCommunication ................... 51
6.8 DevelopingofCulturalIntelligence .......................... 52
7 StrategicAlliance—StrengthinNumbers ......................... 55
7.1 TheSpiritofStrategicAlliance .............................. 55
7.2 EstablishingaStrategicAlliance ............................. 56
7.3 AdvantagesofStrategicAlliance ............................ 56
7.4 DisadvantagesofStrategicAlliance .......................... 57
7.5 ThePowerofPartnerships .................................. 57
7.5.1 AccesstoNewCustomers ........................... 58
7.5.2 BuildingBrandTrust ............................... 58
7.5.3 DevelopingNewPerspectives ....................... 58
7.5.4 IncreasedMoralSupport ............................ 59
7.6 TypesofStrategicAlliances ................................ 59
7.6.1 Pro-competitiveAlliance ............................ 59
7.6.2 CompetitiveStrategicAlliance ....................... 59
7.6.3 Non-competitiveStrategicAlliance ................... 60
7.7 MakingItWork ........................................... 60
7.7.1 PickingaPartner .................................. 60
7.7.2 StructuringtheAgreement .......................... 61
7.7.3 ManagingtheDeal ................................. 62
7.8 NegotiationStylesandStrategiesinThailand .................. 62
7.8.1 CulturalConsiderationsDuringNegotiations .......... 63
7.8.2 NegotiationStyles ................................. 65
8 CustomerService—ListentoWhatTheySay ..................... 67
8.1 ActiveListeningtoCustomers .............................. 67
8.2 HowtoListentoCustomers ................................ 68
8.3 ImportanceofListeningtoCustomers ........................ 69
8.3.1 ImprovedRelationshipwiththeCustomers ............ 69
8.3.2 CreatingNewCustomers ........................... 69
8.3.3 AvoidingCrisis .................................... 70
8.4 KeepingtheConversationGoing ............................ 70
xii Contents
9 Implementation,MonitoringandEvaluation—NowWhatDo
WeDo? ....................................................... 73
9.1 NowWhatDoWeDo? ..................................... 73
9.2 Implementation ........................................... 74
9.2.1 HowtoCarryOutaSuccessfulImplementation ........ 74
9.2.2 CommunicationoftheStrategicBusinessPlan ......... 74
9.2.3 DevelopingtheImplementationStructure ............. 75
9.2.4 Developing Implementation Support Policies
andPrograms ..................................... 75
9.2.5 BudgetandResourceAllocation ..................... 75
9.2.6 DischargingImplementationActivities ................ 76
9.2.7 AvoidingBusinessImplementationPitfalls ............ 76
9.2.8 WeakStrategy ..................................... 76
9.2.9 IneffectiveStaffTraining ........................... 77
9.2.10 PoorCommunication ............................... 77
9.2.11 PoorFollowThrough ............................... 77
9.3 MonitoringandEvaluation ................................. 78
9.3.1 DevelopingMonitoringandEvaluationStrategy ........ 78
9.3.2 DefiningMeasurableBenchmarks .................... 78
9.3.3 CommunicatingBenchmarks ........................ 78
9.3.4 DevelopingMonitoringPlans ........................ 79
9.3.5 EstablishmentoftheReviewPlans ................... 79
9.4 BenefitsofMonitoringandEvaluationinBusinessStrategies .... 79
9.5 ChallengesofMonitoringandEvaluationProcess .............. 80
10 SocialResponsibility—GivingSomethingBack ................... 81
10.1 GivingSomethingBack .................................... 81
10.2 GivingBacktoBusiness ................................... 82
10.3 WaystoGiveBacktoSociety ............................... 82
10.3.1 GettingYourEmployeesInvolved .................... 83
10.3.2 SettingAsidePartoftheProfits ...................... 83
10.3.3 BeingPartoftheCommunity ........................ 84
10.3.4 BuildingCommunities ............................. 84
10.4 MoralObligationandCorruption ............................ 84
10.5 BenefitsofGivingBacktotheSociety ....................... 85
10.5.1 ImprovedBusinessReputation ....................... 85
10.5.2 AttractingTalent ................................... 86
10.5.3 Building Connections and Widening Business
Networks ......................................... 86
10.6 TheCostofIgnoringSocialResponsibility .................... 86
10.7 UsingSocialResponsibilitytoBuildaSustainableBusiness ..... 87
10.7.1 Building Your Social Responsibility Strategy
AroundYourCoreCompetencies .................... 87