Thailand is a country in Southeast Asia located in the Indochinese peninsula. It is bordered by Myanmar, Laos, Cambodia and Malaysia, with a total area of 510,900 square kilometers and a population of over 68 million people. The capital and largest city is Bangkok. Thailand has six main geographical regions - North, Northeast, Central, East, West and South. The regions differ in their population densities, natural resources and economic activities. Thailand has a constitutional monarchy form of government and has experienced political instability and military coups. Its culture is influenced by neighboring countries and over 90% of the population practices Theravada Buddhism. Agriculture, industry and services are the main sectors of Thailand's economy, with

1. International Marketing
Country Analysis of

2. Thailand: A South East Asian Country
located at the Centre of
Indochinese peninsula
Bordered by: Myanmar, Laos,
Cambodia, Malaysia
Area: 510,900 KM2 (51st largest)
Population: 68 M (20th most populous)
Capital: Bangkok
• Largest city in Thailand
• Most populous city in Thailand
• One of the world’s top tourist
destination
Geographical Regions
The North Region
The Northeast Region
The Central Region
The East Region
The West Region
The South Region
Geography
The North Region
The Northeast Region
The Central Region
The East Region
The West Region
The South Region

3. Six Geographical Regions
The North Region
 Mountainous area
 Incised by river valleys
 Agricultural lands
 Shift cultivation in uplands
The Northeast Region
 Poor soils, not suitable for
agriculture
 Cash crops are cultivated
 Silk production contributes to
economy
The Central Region
 Rice bowl of Asia
 Fertile Area
 Dense Population
 Bangkok- focal point of trade,
industrial activity
The West Region
 Natural Resources- Water and
Minerals
 Home to major dams
 Mining is an important industry
The South Region
 Cultivates Rice
 Rubber production and Tin mining
industries
 Tourism contributes to the
economy
The East Region
 Fruit forms major part of
agriculture in the area
 Tourism adds economic value
 Coastal region promotes industrial
development
Diversified regions in terms of population, resources, natural features
and socio economic classes

4. Endured military rule for
decades
1945-91
Only country in the region
not to get colonized.
Neutral territory between
French and British colonies
1875
Thai People migrated
from South West China
to South East Asia over
many centuries
12th Century
Monarchy came to an
end with establishment
of constituency
1932
Ruled by several
kingdoms over the
next few centuries
Until 1932
History
Restored democracy in
1992
1992

5. Politics
Constitutional Monarchy
 With the democratic revolution in 1932, first constitution was written and absolute monarchy was ruled out
 Prime Minister is head of the Government
 Hereditary monarch is head of the state
Constitution
 Seventeen constitutions were drafted so far
 Basic structure of Government remained same through out. Executive, Legislative, Judiciary are three main
branches
Corruption
 Corruption is deep rooted in the Thailand Government
 Political turmoil/crisis has been a norm for a long time
 Several coups launched since 1932
2014 Thai coup d'état (12th in the history of Thailand)
 Political violence started after 2011 elections
 Royal Thai Army (RTA) launched coup d'état in 2014. Launched a junta named National council for peace and
order
Military Junta
Yingluck Shinawatra
(Pheu Thai Party)
Elected as PM in 2011
Elections

6. Culture
HOSTEDE Model
 Unequal distribution of
Power
 Shows deference for the
superiors
 Attitude towards manager
is formal
 Information flow is
hierarchical and controlled
Power Distance
 Highly collectivist
 Loyalty to the in-group
is paramount
 Promotes strong
relationships
Individualism
 Feminine society
 Less competitive
 Care for others
 Concerned about
of quality of life
Masculinity
 Avoids uncertainty
 Follows rules, laws,
policies
 Very risk adverse
 Change to be seen as
greater good
Uncertainty
Avoidance
 More normative
rather than
pragmatic
 Intermediate
score of 45 =>
indulgence
cannot be
determined
LT
Orientation
Indulgence
Culture: Primarily incorporated from India, China,
Cambodia and other South East Asian Countries
Religion: 95% follow Theraveda Buddhism and remaining
population belong to Muslims, Christians, and Mahayana
Buddhism
Beliefs & Values of Buddhism play an enormous role in
day-to-day life
Respect towards hierarchy and elders is a cornerstone
value
Sanuk: Life should be fun is the central tenet. Exhibiting
positive emotions in social interactions is important

7. Economy
Key Indicator Value
Ease of Doing Business
Rank (out of 189)
49
Starting a Business
Time (days) 27.5
Procedures (number) 6
Dealing with
Construction Permits
Time (days) 103
Procedures (number) 17
Getting Electricity
Time (days) 37
Cost (% of income per
capita)
45.9
Registering Property
Time (days) 3
Cost (% of property
value)
6.3
Total tax rate (% profit) 27.5
VAT (%) 7
Business Environment
Agriculture
 The sector employs 36.3% of workforce
 Major exports include palm oil, rice, sugar, fish products and natural rubber
 World’s largest producer of Rice and largest exporter of canned tuna and
Prawn
 World’s largest producer and exporter of Rubber with 30% of global production
Industrial Sector
 Manufacturing accounts for 27.3% of GDP and employs 13.1% of workforce
 Auto and Electronics are the key industries
 It is dominated by many large and export-oriented foreign companies
Service Sector
 Accounts for 53.8% of GDP
 The real value of tourist receipts rose by 18.9% in 2015 and growth of 7.5% is
expected in 2016.
 Chinese account for one third of visitors but the number of arrivals is diminishing
 Real GDP growth  3.4% in 2015 | Forecast of 3.3% growth rate in 2016
 Growth slower than most other ASEAN economies
 Private consumption is feeble | Government spending was the main driver
 Unemployment  0.9% | Biz faces difficulty in recruiting both skilled/unskilled
 Political uncertainty due to frequent changes in the Gov.
 Demand for Exports

8. Trade Patterns
Source: Euromonitor International
 Export markets are relatively well
diversified
 China, EU, Japan, USA are key
markets among others
 Major exports consisted of
machinery, electrical equipment,
and transport equipment
 Current Account Surplus was 8.1%
of GDP in 2015
 Forecast of 10.1% in 2016
 Highlights the weakness in
domestic demand
 Exports represent major part of
the GDP at 53.7%
 Export % of GDP down from
60.2% in 2008
 Economic slowdown in China and
Japan constrained Thai’s exports

9. Resources
Key Mineral Deposits
Coal
Rich in Natural Resources
Gold
Lead
Tin
Tungsten
Zinc
Precious
Stones
Manganese
 Natural Gas deposits reduced the burden
on energy imports
 The country also has 0.2 trillion cubic
metres of proven natural gas reserves.
 In 2015, Thailand produced 38.2 million
tonnes of oil equivalent. Much of the
natural gas is used for generating
electricity.

10. Failure: IKEA’s Launch
IKEA
Jättebra
Redalen
sex
getting to
third base
 IKEA launched its fifth largest store in the world in late 2011
 Already has business in 40 countries
 Uses same brand names (Scandinavian terms) across the stores in
different countries
 Redalen- a bed and Jättebra- a plant pot has got its meaning
wrong in Thai
 Jättebra means ‘sex’ in Thai slang and Redalen resembles a Thai
word for getting to ‘third base’
 Thai people who are conservative took offensive of the usage of
words in IKEA’s brands

11. Thank you