Free Essay

Student

In: Business and Management

Submitted By cillemus
Words 796
Pages 4
Demand
1. On 21 November 2009, the Thai Government approved £3.5 billion for railway infrastructure development (2010-2015).
2. In addition to the main railway network development, projects are on-going to expand existing mass rapid transit lines and to build new lines for Bangkok.
3. Over the next 20 years, Thailand also plans to invest £14.5 billion in high speed trains.

New projects
• Red Line (Bangsue-Rangsit) - The project is an overhead-electrified commuter train with a total length of 26.3 km of which 7.1 km are at grade and 19.2 km are elevated and 8 stations.

• Airport Rail Link Expansion – The project is to extend the route from Phyathai Station to Don Mueng Airport to link with Suvarnabhumi Airport and to expand from Suvarnabhumi Airport to Pattaya City.

• Purple Line (Tao Poon-Ratburana) - This project is an extension of the Purple Line between Bangsue and Bangyai (under construction). It comprises approximately 20 km of 13.2 km underground and 6.8 km elevated metro rail, 11 underground stations and 5 elevated stations.

• Green Line Extensions (Baring-Samutprakarn, Mo Chit-Sapan Mai) - This extension to the existing Green Line (Sukhumvit Line) comprising approximately 25 km of elevated structure, 21 stations, depot and park & ride.
• Blue Line Extension - This extension to the existing underground system comprise 22 km elevated and 5 km underground metro system with 17 stations, including 4 underground stations.

• Orange Line -This is a new line comprising 11 km elevated and 26.5 km underground metro system with 29 stations, including 21 underground stations.

• Pink Line – This is a new line comprising 34.5 km all elevated structure with 24 stations. High Speed Trains - The Thai Government plans to invest in 4 high speed train lines at an approximate cost of £7.3 billion between 2013-2019.

Needs
• While millions utilize the State Railway system within Thailand every year, poor track maintenance, outdated equipment and rails, and unmarked train crossings have caused accidents, train derailments, and delays. In 2013 there were a series of train derailments, especially on the Bangkok – Chiang Mai line, some of which resulted in serious injuries to passengers. This situation prompted officials to close down sections of the northern line to Chiang Mai for maintenance. The line reopened on December 1, 2013.
• Earthquake Resistance
• The railway sector in Thailand is currently enjoying a new lease of life following decades of under investment. Higher energy costs and growing traffic congestion are leading to the re- emergence of railways as a vital transportation mode. The Thai railway market features both traditional heavy rail network, highspeed train and a thriving metro sector in Bangkok.


CON’S

• Initial research is crucial to assessing your prospects. Thais like to build relationships with potential business partners → A different culture can cost difficulties
• A local presence in Thailand is necessary → (either through local representatives, a representative office, or joint venture companies. Such a presence shows that British companies are serious about the market and are willing to provide local technical support to their partners and customers)
• The Thai market is still price-oriented. Technical support is the second most important issue after pricing.

PRO’S

• Thailand plans to invest around £15 billion over the next 5-10 years in improving and developing the country’s rail transportation network.

Product line selection
• Production of railway tracks

Next steps – how to enter the marked
• Provision of market information
• Validated lists of agents/distributors
• Key market players or potential customers in the Thai market
• Establishment of interest of such contacts in working with you
• The producers of the trains → reasons for outsourcing
• Arranging appointments
• Organise seminars or other events for you to meet contacts and promote your company in the Thai market

Sector/product line selection
• Compare industries to select one product line with high potential (market attractiveness, market accessibility)
• Discuss the pros and cons of each sector
• Provide detailed arguments for your choice and select one product line.

Market selection - Criteria
Market Accessibility
• Market Risk
• Customs regulations
• Regulatory Issues

• Legal Issues
Market Attractiveness
Consumers behaviour
• Initial research is crucial to assessing your prospects. Thais like to build relationships with potential business partners → A different culture can cost difficulties
• A local presence in Thailand is necessary → (either through local representatives, a representative office, or joint venture companies. Such a presence shows that British companies are serious about the market and are willing to provide local technical support to their partners and customers)
• The Thai market is still price-oriented. Technical support is the second most important issue after pricing.

Sources of demand

Demand Dynamics

Competition

Selection of entry mode
• List criteria used to choose between WOS and IJV
• Collect information about criteria
• Analyse data, listing pros and cons
• JUSTIFY CAREFULLY YOUR RECOMMENDATION and select entry mode.

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