Introduction
Company profile
The headquarters for Speedpac is at Northampton. The company has a policy of providing better-quality services in the management and distribution of products in both the local and intercontinental market. Speedpac has successfully come up with innovative approaches which have increased international market penetration.
The priority of the company is to satisfy clients by increasing flexibility and value by providing well-timed deliveries leading and increased productivity. Our employees are competent; furthermore, the required technical expertise is resourceful at work. This ensures that our clients receive superior and pleasing service (Speedpac, 2010).
Speedpac’s chief responsibility is to aid in the storage and sharing of products from small and large entrepreneurship firms. The company stores goods for various companies in large warehouses dotting several cities in the world. It handles the distribution of products of hundreds of clients who sign annual contracts. The management has employed reliable members of staff who have the ability to spot new location opportunities through which it can expand (Speedpac, 2010).
The company meets the individual needs of its customers by maintaining and recruiting fresh graduates from different qualification fields. The employees employ their skills to ascertain that the products being distributed are genuine, spot new location opportunities and advise clients on where best their products can be distributed (Speedpac, 2010).
Extensive knowledge in the distribution industry coupled with experience ensures work requirements and objectives are met. This ultimately makes Speedpac the ideal business partner when it comes to storage and distribution.
Future prospects of the company
The company is presently concerned with opening a branch in Thailand. An analysis of the area shows that a distribution company being set up in the region will improve our service delivery and create a network with Thai- based organizations. Extensive PEST analysis has been done in Thailand to determine the feasibility of expanding our international markets in the region (Thamvorapol, 2004).
Thailand has been identified as an ideal location to continue with the internationalization of the company’s business. The public domain resources provided the necessary information to determine whether Thailand is the ideal spot for expansion of our dominantly American-African based company.
Economic analysis of Thailand
Thailand, formally known as the kingdom of Thailand, has a population of around six million people with a 0.5% growth rate (Thamvorapol, 2004).
The country is endowed with natural resources such as fish, natural gas and timber. The economy experienced a rapid growth since the eighties before facing a recession in the late nineties. Policy reforms that opened the Thai market to international trade raised the economy growth in the eighties.
Domestic investment and savings were boosted, therefore encouraging outside investment. The industry slowly expanded motivating the populace to shift from agriculture to the manufacturing industry. Despite the decline of agricultural growth, the manufacturing sector increased the growth of service sector activities.
The new millennium saw the economy grow tremendously, making the country one of the fastest growing developing economies. Confidence in the market has gradually increased, extending beyond the exchange rate to declining rates of interests. The urban middle class has been a dominant influence in promoting the economy even though the country still holds a larger number of poor people (Thamvorapol 2004).
Social analysis of Thailand
Thailand provides an exceptionally conducive social environment for business (Thamvorapol 2004). The religious freedom of citizens is respected as long as the faith is registered. The police are responsible for the well being of citizens even though there are some powerful individuals who cannot be controlled.
Educational opportunities provided in the country are rated as the best in the Asian continent, and most job opportunities are available for the educated. The Thais respect both their culture and that of foreigners (Thamvorapol 2004).
They are truly welcoming to visitors and foreign investors in the country and tend to maintain excellent social relations. Almost 100% of the citizens speak their national language, Thai and share a common culture. It is the language which is used for teaching in schools. Most of the citizens who can afford housing live in the urban area while the poor look for alternative housing mainly out of town.
Technological analysis of Thailand
The government has promoted the use of internet technology in finalizing commerce transactions. This is aimed at supporting electronic transactions, which will eventually spur economic growth in the country. Airport, waterway and road transport are well developed in Thailand, even though remote areas do not enjoy such luxuries. Manufacture of fake products is also rampant in the region with the government doing little to stem the vice (Thamvorapol, 2004).
Political analysis of Thailand
Thailand was never colonized hence making it free to make its own political decisions without influence from other countries (Thamvorapol, 2004). The administrators have managed to solve political problems affecting the country. Unfortunately, like any other country, corruption is rampant in many organizations. The rich therefore get richer while the poor continue to languish in poverty.
The Thai and U.S government have maintained close relations, and have signed a number of business treaties which have promoted trade between the two countries.
Objectives in market expansion
The main objective of the company is to fill the void exposed in the Asian countries related to distribution and storage of products. Clear, practicable and quantifiable objectives have been set to ensure that the company achieves its goals and objectives. The 4 Ps have been examined and efficient means of implementation set out. Our strategy focuses on the 4 Ps (product, price, promotion and place) (Cheverton 2004). A value has been placed on each of the 4 Ps ensuring that objectives are met.
The 4 P’s of marketing
The 4 Ps, which are commonly recognized as the marketing mix is a central constituent in modern marketing which is interlinked. The most suitable marketing strategy can be achieved by providing a perfect mix of the four levels (Cheverton 2004). The company is considering dealing with the distribution of other products apart from food. Distribution of finished clothes and raw cloth materials are the other two possibilities that the management of the company has put to thought.
Price
Charging appropriately for the services offered should be considered in marketing. Pricing can be carefully examined using 4 Cs: competitor’s prices, customer value, cost to the company, strategic and pricing objectives of the company. Pricing objectives gives direction for the company during the process of pricing (Finley, Galloway & Rogers, 2001).
There are several pricing objectives the company is focused on including increasing volumes of sales, maximizing short-run and long-run profit and gaining a cutthroat edge in the market.
Pricing is the most important concern that concerns prospective customers. Clients compare prices between the available options, and while they may not necessarily go for the cheapest, it influences their decision on which storage and allotment company they will choose (Arduser & Brown, 2006).
How the organization prices its services is aligned to the costs to the organization and the willingness to pay of its customers (Finley, Galloway & Rogers, 2001). The recommended price for storage will be adjusted to 100$ per day while the distribution prices will depend on the distance that will be covered in exportation of the services.
Product
Speedpac stores products in warehouses and offers effective distribution channels for its clients. The company assures the proper packaging and guarantees secure transportation of products. Making our services look more attractive attracts more customers to the business (Ryans and Palidowa, 2008).
The historical method of thought that a quality product will sell itself has been phased out due to the stiff competition that modern companies face presently. Secure storage and reliable distribution will ensure that the company maintains its regular clients while attracting newer clients.
Place
The means of distribution are well laid out to ensure that our services satisfy a bulk of the population. Decisions on where to sell the company’s services when in Thailand target a variety of markets. The desire to provide our services at the right place and time has necessitated us to expand our market to Thailand.
Promotion
Effective means of communicating and informing our prospective clients about our services are in place. The costs may be large in proportion than the price of the product and a break- even investigation was performed before making any decision in promotion. Promotional decisions include advertisement of the services offered, public relations and marketing through the media. Middlemen will effectively aid the company in sales promotions.
Challenges in market expansion
Business expansion is one of those stages where a company faces a bulk of the challenges owing to the risks involved. Market expansion causes many changes which affect both the legal, managerial and financial aspects in a company (Ryans and Palidowa, 2008). There are several minute problems which will affect the company’s market expansion in Thailand. The main challenge will undoubtedly be the recruitment of new members of staff.
New members who will be hired will look at the top management for guidance. The management therefore starts becoming less centralized which raises the chances of internal politics and disagreement over which objectives the company should pursue. Market expansion will also result in growth which leads to the expansion of the market share, calling for the formulation of fresh strategies to deal with larger competitors.
Combating the challenges
Strategies structured to combat the two challenges that the company is likely to experience have been formulated. New members will have to undergo extensive training before getting into office. Alternatively, some of the established managers can start running the company in Thailand while guiding the new recruits. The company must invest in effective management and planning policies which will ensure the monitoring of the stock-market and how the market is changing.
Conclusion
Expanding the company’s market to Thailand will create more business opportunities. There are some useful ways through which market expansion can be easily done. Two efficient means the management can consider are through licensing its intellectual property to a third party or through public stock offerings (Ryans and Palidowa, 2008).
References
Arduser, L. & brown, D. (2006). The professional caterer’s handbook: how to open and operate a successful catering business with CD-ROM. Florida: Atlantic publishing company.
Bureau of East Asian and pacific affairs (2010). Background mote: Thailand. Web.
Cheverton, P. (2004). Key marketing skills: strategies, tools and techniques for marketing successes. London: Kogan page publishers.
Chrisholm-burns, M., Vaillancourt, A., shepherd, M. (2010). Pharmacy management, leadership, marketing and finance (revised). London: Jones & Bartlett learning, 2010.
Finley, D., Galloway, G. & Rogers. (2001). Strategic planning in social service organizations: A practical guide. Ontario: Canadian scholars’ press.
Ryans, J. & Paliwoda, S. (2008). International marketing: volume six of international library of critical writings in economics series. Massachusetts: Edward Elgar publishing.
Speedpac (2010). Speedpac. Web.
Thamvorapol, S. (2004). Thailand: economic policy analysis. Mkeever. Web.